A new legislative proposal in New Jersey may significantly impact local control over recreational cannabis sales, potentially reshaping the state’s marijuana market.

The bill, S4074, introduced by State Senate President Nicholas Scutari, would allow medical cannabis dispensaries to sell recreational marijuana without needing approval from local municipalities — even in areas where recreational sales are currently banned. If passed, this could lead to a surge in cannabis retail across the state.

According to the New Jersey Monitor, around two-thirds of municipalities in the state have opted out of permitting recreational cannabis sales, creating a challenging landscape for the growing industry. The bill is seen as a response to these restrictions, which have been blamed for slowing the industry’s expansion.

Despite these hurdles, New Jersey’s cannabis market has seen steady growth. In 2024, combined medical and recreational cannabis sales reached a record $1 billion — a nearly 25% increase from the previous year, based on data from the New Jersey Cannabis Regulatory Commission.

Currently, the state has 338 licensed cannabis businesses, with approximately 200 operating as retailers. However, with 1,524 conditional recreational licenses approved, critics argue that local bottlenecks are preventing many businesses from opening.

If passed, S4074 would introduce key changes to the approval process:

New medical cannabis businesses would receive approvals within 30 days.

Dual-licensed retailers could designate medical marijuana products for recreational use.

Medical dispensaries that have operated without complaints for six months would automatically be allowed to sell recreational products.

Municipalities would no longer be able to cap the number of medical dispensaries but could still limit recreational retailers.

The proposal aims to address regulatory delays and accelerate the growth of New Jersey’s cannabis market, creating more opportunities for businesses and consumers alike.