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Customers at dispensaries in New Jersey will soon have the option to consume cannabis onsite.

During the New Jersey Cannabis Regulatory Commission‘s (CRC) Jan. 17 meeting, the regulatory board unanimously approved a framework allowing medical dispensaries and recreational-use retailers to operate consumption lounges.

Initially proposed in December 2022, the rules establish qualifications, an application process and operation instructions for businesses that wish to set up spaces on premises for customers to use cannabis.

The coming regulations include:

• A cannabis business can operate only one cannabis consumption area, regardless of the number of Class 5 Retailer licenses or Alternative Treatment Center (ATC) dispensary permits the business holds;
• Dispensaries may not sell food, but patrons may bring their own food into the cannabis consumption area or have food delivered there;
• Medicinal cannabis patients must be allowed to bring cannabis items from other retailers into consumption areas for their own use;
• There may be no sale of tobacco products and alcohol in consumption areas;
• Patrons must be 21 years or older and photo identification must be required for entry into cannabis consumption areas.

The licensing fee for microbusiness retailers wanting to add consumption areas will be $1,000; for standard retailers it will be $5,000, according to the CRC.

Operation of consumption areas will be allowed only after an applicant applies for and receives an endorsement from the CRC. Additionally, the approvals are valid for one year and must be renewed annually.

According to CRC Executive Director Jeff Brown, details on how to apply for a license will be released soon.

Businesses have flexibility in their operational decisions, such as hours of operation, fees to enter a consumption area, priority access to medicinal patients and authorizing paid events. All businesses must, however, adhere to any restrictions imposed by the municipality, including but not limited to restricting the number of consumption areas allowed in their town, business signage, and communication with municipal emergency services, according to the CRC.

“Having space to consume cannabis is not just about recreation. It is also about providing equitable access and offering people a safe place to consume legal cannabis products,” CRC Chairwoman Dianna Houenou said in a statement. “This move holds particular significance for communities that are limited in where they can enjoy cannabis – most notably, renters who cannot consume cannabis at home, unlike homeowners who enjoy greater freedom within their own homes.”

After approving the preliminary framework last winter, the CRC launched a 60-day public comment period that ran through March 2023. By next month, the finalized rules will publish in the New Jersey Register, where state regulations are added once they take effect.

Across the U.S., only 11 other states have regulations providing for an on-site use option at dispensaries: Alaska, California, Colorado, Illinois, Maryland, Michigan, Missouri, Minnesota, Nevada, New Mexico and New York.

Editor’s note: This story was updated at 11:55 a.m. ET Jan. 19, 2024, to include more details about businesses’ operational decisions as well as a statement from Dianna Houenou.