New Jersey Gov. Mikie Sherrill has signed legislation allowing certain medical cannabis dispensaries to expand into the recreational marijuana market without obtaining approval from local governments, a move that critics say weakens municipal control over cannabis sales.
The measure, A5051, was signed into law on May 29 as part of a broader package regulating intoxicating hemp-derived products and cannabis sales in the state.
Under the law, existing medical marijuana dispensaries that received municipal approval to operate before New Jersey legalized recreational cannabis can now obtain a Class 5 cannabis retailer license without securing additional approval from the municipality where they are located.
The change affects a small number of medical-only dispensaries operating in municipalities that prohibit adult-use cannabis sales. Among them are the RISE Paramus dispensary in Paramus and Breakwater Treatment & Wellness in Cranbury.
Supporters of the measure argue that municipalities already approved those facilities as cannabis businesses and that requiring another round of local authorization creates unnecessary barriers for operators seeking to participate in the state’s growing adult-use market.
The legislation effectively removes the need for the state Cannabis Regulatory Commission to obtain proof of municipal approval when reviewing applications from qualifying medical dispensaries seeking to add recreational sales.
The change has drawn criticism from some local officials and advocates of municipal “home rule,” a longstanding principle in New Jersey that grants municipalities significant authority over local land-use and business decisions. Opponents argue that the law overrides decisions made by towns that chose to prohibit recreational cannabis sales after voters approved marijuana legalization statewide in 2020.
Paramus Mayor Chris DiPiazza said on May 19 that the bill makes him “nervous” since it’s “another example of Trenton coming into towns and determining how local governments govern.”
The bill was primarily focused on regulating intoxicating hemp-derived products, including those containing delta-8 THC and similar cannabinoids that have proliferated in convenience stores and smoke shops.
In addition to the cannabis licensing changes, the law delays enforcement of New Jersey’s restrictions on intoxicating hemp products until Nov. 13, 2026. Lawmakers said the extension was intended to provide time for state regulations to be aligned with anticipated federal guidance governing hemp-derived cannabinoids.
New Jersey launched recreational cannabis sales in 2022 and has since seen rapid growth in the industry. More than 560 cannabis businesses have been approved or licensed by the state, according to Cannabis Regulatory Commission data.
The new law takes effect immediately, clearing the way for affected medical dispensaries to pursue adult-use retail licenses regardless of local bans on recreational cannabis sales.