Municipal Powers Under New Jersey’s Psilocybin Bill
New Jersey’s pending state-regulated psychedelics legislation, the “Psilocybin Behavioral Health Access and Services Act” (the “Psilocybin Bill”), would authorize the licensure and operation of private psilocybin businesses by the New Jersey Department of Health. These businesses would include psilocybin product manufacturers (i.e., mushroom growers / farmers), psilocybin testing laboratories (where mushrooms are tested), and psilocybin service centers (where mushrooms are administered) by licensed facilitators (collectively, “Psilocybin Businesses”).
Under the Psilocybin Bill, New Jersey counties and municipalities have broad power to regulate the operation of Psilocybin Businesses within their borders. Psilocybin Businesses cannot obtain a license to operate from the State unless they comply with relevant regulations set by counties and municipalities, and unless they obtain zoning approvals from the municipalities.
The Department of Health cannot approve a psilocybin business’ license application without a description of the business’ proposed location, the surrounding area, and that location’s suitability or advantages. A business must also submit floor plans and, optionally, renderings, architectural plans, or engineering plans to the Department of Health. Most importantly, the psilocybin business must submit zoning approvals from the municipality confirming that the proposed location conforms to municipal zoning requirements allowing for the operation of psilocybin businesses.
So, while a county or municipality may adopt an ordinance containing reasonable regulations on the operation of Psilocybin Businesses located within their jurisdiction, and while no county or municipality can establish any taxes or fees on Psilocybin Businesses, there is very limited restrictions in the Psilocybin Bill on how a municipality may zone for Psilocybin Businesses.
The only zoning-specific limitations in the Psilocybin Bill address Psilocybin Business’ proximity to residential neighborhoods and schools. A psilocybin service center cannot be approved for any location that is entirely zoned for residential use. Moreover, a psilocybin service center cannot be zoned in a location that is within 500 feet of an elementary or secondary school and that center does not use any signage that is attractive to minors (this restriction is extended to 1,000 feet if the center’s signage is attractive to minors). An existing psilocybin service center would not need to relocate, and cannot have its license revoked by the Department of Health, if an elementary or secondary school is newly constructed within 1,000 feet of the psilocybin service center. Finally, all psilocybin service centers must prevent noisy, lewd, disorderly, and disruptive conduct on their premises, and shall ensure the premises are maintained in a safe and sanitary condition.
Under the Psilocybin Bill, Psilocybin Business, and in particular psilocybin service centers, can expect heavy time, place, and manner restrictions to impact their operations. Prospective Psilocybin Businesses should take this into consideration and decide, in advance, how to navigate these issues.