New Jersey Cannabis Business Licenses: Update

New Jersey Cannabis Business Licenses: Update

Shelby Knight
JULY 24TH, 2022

New Jersey cannabis regulators are proposing three new classes of licenses for the marijuana industry — including one for delivery drivers.

“Wholesalers are entities, businesses that will buy from cultivators and manufacturers and sell products to retailers,” explained Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “Distributors are essentially trucking services that transport between different licensees. And then delivery services are companies that can partner with retailers to deliver recreational cannabis to consumers at their homes.

In November 2021, the Cannabis Regulatory Commission announced the beginning of accepting applications for new recreational cannabis businesses. They began with growers, manufacturers, and testing laboratories on December 15, 2021.   On March 15, 2022, they began accepting applications for retailers. To date, they have received just over 900 applications. CRC staff have reviewed 500 of these applications, and applicants have either been moved forward for approval or returned to cure application deficiencies and resubmit.   

The CRC has approved 102 conditional licenses, issued 327 cure letters, and continues to process and review additional applications.

New Jersey anticipates beginning to award retail licenses on July 5.

Recreational sales began on 4/21/22.

New Jersey continues to accept applications for cultivation, manufacturer, and retail licenses.

The types of adult-use cannabis business licenses available in New Jersey include:

Class 1 – Cannabis Cultivator:

Any licensed person or entity that grows cultivates, or produces cannabis in this State, sells, and may transport this cannabis to other cannabis cultivators or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license.

There will be no more than 37 Cultivation Licenses awarded for the initial 24 months (Feb 2023)

  • ▪ Tier I = Mature cannabis plant grow canopy area greater than 2,500 sq ft but no more than 10,000 sq ft
  • ▪ Tier II = Mature cannabis plant grow canopy area greater than 10,000 sq ft but no more than 25,000 sq ft
  • ▪ Tier III = Mature cannabis plant grow canopy area greater than 25,000 sq ft but no more than 50,000 sq ft
  • ▪ Tier IV = Mature cannabis plant grow canopy area greater than 50,000 sq ft but no more than 75,000 sq ft
  • ▪ Tier V = Mature cannabis plant grow canopy area greater than 75,000 sq ft but no more than 100,000 sq ft
  • ▪ Tier VI = Mature cannabis plant grow canopy area greater than 100,000 sq ft but no more than 150,000 sq ft

 

Class 2 – Cannabis Manufacturer:
Any licensed person or entity that processes cannabis items in this State by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing, and packaging cannabis items, and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license.

 

Class 3 – Cannabis Wholesaler:
Any licensed person or entity that purchases or otherwise obtains, stores, sells, or otherwise transfers, and may transport, cannabis items for resale or other transfer to another cannabis wholesaler or a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.

 

Class 4 – Cannabis Distributor:
Any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.

 

Class 5 – Cannabis Retailer:
Any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers and sells these to consumers from a retail store and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store presented by a cannabis delivery service delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.

Class 6 – Cannabis Delivery Service:

Any licensed person or entity that provides courier services for consumer purchases of cannabis items and related supplies fulfilled by a cannabis retailer to make deliveries of the cannabis associated items and supplies to that consumer, and which services include the ability of a consumer to purchase the cannabis items directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for the fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.

 

PLEASE NOTE:

  • Local municipalities have the authority to establish ordinances to regulate cannabis businesses within their jurisdiction, including limitations on types and number of licenses allowed and permitting/approval/support process.
  • For a 24-month period following February 22, 2021 (until Feb 2023):
    •  A license holder and its owners and principals that hold a Cultivation and/or Manufacturing license may not also hold a Retail license and vice versa; AND
    • A license holder and its owners and principals may hold one cannabis retailer license.

 

 

Interested in starting a New Jersey cannabis business? Check out our site, How To Open a Dispensary, for templates to help start your application process!

For more information on New Jersey cannabis programs, including details on licenses- visit our State Page!

The Cannabis Business Advisors has successfully secured licenses for clients in over 20 markets across the United States. Call our office at (602)-290-9424 or email (info@thecannabisbusinessadvisors.com) to get started.

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