Would you like help with your conditional or annual cannabis license application in New Jersey? Take the stress out of becoming a cannabis business owner and use our New Jersey Cannabis Consulting services to win a license. Below, our New Jersey cannabis consultants summarize the application process, including a step-by-step guide for how to apply for and win a cannabis business license in New Jersey.
But if you’d to speak with our New Jersey Marijuana Consultants directly, click the button below to schedule a free consultation. Let our New Jersey cannabis consulting team manage your conditional and annual license application from start to finish!
Cannabis Consulting in New Jersey
Laws and Regulations for New Jersey Adult-use Cannabis
As an applicant, you should be aware that the New Jersey’s Cannabis Regulatory Commission will oversee the adult-use cannabis program, including the scoring and issuing of cannabis business licenses
You should also familiarize yourself with the set of legal documents that outline the New Jersey Cannabis Industry, including:
- The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act outlines the rules and regulations for adult-use cannabis businesses and consumers;
- More recently, the state has published the final rules of the adult-use cannabis industry in New Jersey; and
- The Notice of Application outlines eligibility requirements, prioritization processes, application requirements, scoring methodology, and how approval or denial is determined.
To save time, contact one of our cannabis application writers in New Jersey for a breakdown of the act and licensing process.
Types of Adult-Use Cannabis Licenses in New Jersey
First, you must choose which type of license you would like to apply for. Each license is unique in that every license type permits you to conduct different activities.
For instance, if you want to grow cannabis then you’ll want to apply for a cultivator or microbusiness license. However, if you want to sell cannabis directly to consumers, then the cananbis retail license makes more sense for you.
Below is a video of one of our New Jersey Cannabis License Consultants discussing the various types of adult-use marijuana licenses in New Jersey:
Six classes of marijuana business licenses will be available for the adult-use cannabis market in New Jersey. These include:
Please note, the commission will ensure at least 25% of the total licenses issued are issued to microbusinesses (limited to 10 employees). Follow this link for a full definition of a New Jersey Cannabis Microbusiness.
Timeline for New Jersey Cannabis Business License Applications
The Cannabis Regulatory Commission will begin accepting the following applications for personal use (recreational) cannabis on Wednesday, December 15, 2021:
- Class 1 Cultivator Licenses
- Class 2 Manufacturer Licenses
- Testing Laboratories
On the other hand, application acceptance for Class 5 Retailers will begin on March 15, 2022.
Before discussing the application process, be aware that to be eligible to submit a cannabis business application in New Jersey, applicants shall:
- be registered to do business in the State of New Jersey by the Division of Revenue and Enterprise Services in the Department of the Treasury;
- have both federal and state taxpayer-identification numbers; and
- be in compliance with all provisions of N.J.S.A. 24:6I-31 through 56 and N.J.A.C. 17:30 for license applicants.
Also, you must have at least one owner listed in the application who has resided in New Jersey for at least two years prior to the date of application.
An additional requirement for all conditional license applicants includes:
- Proof that each owner of the conditional license applicant who has decision-making authority has, for the immediately preceding taxable year, an adjusted gross income of no more than $200,000, or no more than $400,000 if filing jointly with another individual.
Application Process for New Jersey Cannabis Licenses
Applications are reviewed as they are received on a continuous rolling basis, with Social Equity, Impact Zone, and Diversely Owned Businesses always getting priority over others (detailed below).
Importantly, the rules establish and prioritize small businesses, referred to as “microbusinesses,” and the conditional licensure process, which creates a pathway for entrepreneurs into the industry.
Conditional applicants will only need to submit background disclosure information to the CRC, along with a New Jersey cannabis business plan and a regulatory compliance plan. If approved, they will then be given 120 days to find an appropriate site, secure municipal approval, and apply for conversion to an annual license.
On the other hand, you can apply directly for an annual license. However, the Commission will prioritize conditional applicants over annual applicants.
Microbusinesses, which are limited to 10 employees and premises no larger than 2,500 square feet, will also be prioritized and, if successful, allowed to apply to expand their business in accordance with consumer demand (more information on Microbusinesses found here).
We understand that the information listed above can be a bit daunting. For this reason, we encourage you to reach out to speak with our cannabis consulting firm in New Jersey. We can simplify the process for you and help you win a New Jersey Cannabis Conditional License.
Scoring Process for Cannabis Applications in New Jersey
Applications will be accepted on a continuous rolling basis and will be prioritized by:
- Priority assignment; and
- First in-time submission.
Once received, license applications will be reviewed for completeness.
Applications deemed incomplete will be returned to license applicants to be cured and resubmitted. If an application is found complete, then the application will be scored by the Commission based on the criteria outlined below.
Lastly, if two or more applicants have the same number of points, those applicants shall be grouped together. If there are more eligible participants in this group than the remaining number of licenses available, the commission will utilize a public lottery to determine which applicants win a license.
If your application is deemed complete, the commission will score your application in accordance with the following measures:
Conditional License Application Scored Measures
- Business Plan and Management Profile
- Regulatory Compliance Plan
- Plan to Obtain liability Insurance
Conditional Conversion Application and Annual License Application Scored Measures
- An environmental impact plan
- A safety and security plan
- A community impact, social responsibility, and research statement
- A workforce development and job creation plan, which include an optional diversity plan;
- Standard operating procedures for:
- Adverse Event Reporting;
- Quality assurance and quality control;
- Packaging and Labeling;
- Inventory Control, Storage, Diversion Prevention;
- Waste Disposal, Sanitation;
- Cultivation, manufacturing, retail sale, delivery, secure transport, as applicable, based on the class of license sought;
- Accounting and tax compliance; and
- The reporting of test results, as applicable, based on the class of license sought.
Municipal Control of Adult-use Cannabis Business Licenses in New Jersey
Municipalities have a significant influence on who wins a New Jersey Cannabis Business License. In fact, they will report to the state their preference of who to award a license to.
Therefore, it is extremely important to gain local support and make sure you’re in compliance with all municipal ordinances.
Below is an interactive map showing the municipalities in New Jersey that have opted in or out of allowing adult-use cannabis businesses to locate in their jurisdiction (provided by USA Today):
For marijuana business consulting services in New Jersey, click the button below. We can assist you with your municipal and state cannabis license submissions. Let us win you a New Jersey cannabis license.
Fees (Application and License Fees)
New Jersey recently published the application and license fees for adult-use cannabis businesses. Our cannabis consultants provide the infographic below summarizing the cannabis application and license fees in New Jersey.
In short, micro-businesses will pay half of the fees issued for non-microbusiness licenses. Also, if you transfer more than 50% of the ownership of your license, you must pay a $20,000 fee.
For New Jersey Cannabis Consulting, reach out and speak with one of our license experts today.
Priority Applicants for a New Jersey Cannabis License
You can significantly increase your odds of winning a New Jersey Marijuana Business License if you apply as a Priority Applicant.
The rules establish three types of cannabis businesses that will receive priority review and approval in the application process:
- Social Equity Businesses, which are owned by people who have lived in Economically Disadvantaged Areas of the state or who have past convictions for cannabis offenses;
- Diversely Owned Businesses, which are minority-owned, woman-owned, or disabled veteran-owned and certified as such by the New Jersey Department of the Treasury in one or more of the listed categories; and
- Impact Zone Businesses, which are located in an Impact Zone, owned by people from Impact Zones, or employ residents of Impact Zones. Note: Under the statute, Impact Zones are municipalities with a large population, high unemployment rate, or high numbers of crime or arrests for marijuana.
Social Equity Businesses, Diversely Owned Businesses, and Impact Zone businesses will be prioritized in the licensure process so that their applications are reviewed before other applicants – regardless of when they apply (click links above for a definition of each type of business).
The Commission shall review, score, and approve conditional and annual cannabis business license applications, such that:
- Social Equity Businesses, Diversely Owned Businesses, and Impact Zone Businesses always have priority over other license applicants;
- Conditional license applicants always have priority over annual license applicants;
- Microbusinesses (defined above) license applicants always have priority over standard cannabis business license applicants; and
- License applicants given bonus points (see below) have priority over license applicants with no bonus points.
For a detailed breakdown of the Application Priority process in New Jersey, refer to this section.
Guide on How to apply for and win a New Jersey Cannabis Business License
Our cannabis consulting team in New Jersey put together the following step-by-step guide on how to apply for and win a cannabis license in New Jersey.
Step 1: Read the New Jersey Cannabis Laws and Regulations
The first step you should take when applying for a New Jersey Cannabis Business license is to learn the Laws and Regulations. You’ll want to, for instance, focus on both the State laws and local city ordinances.
New Jersey will place a heavy emphasis on whether you are able to comply with the State’s regulation. Put differently, your Application should reflect your knowledge of and plans for complying with New Jersey Cannabis Laws.
Step 2: Choose the New Jersey Cannabis License you want to Apply for
Secondly, you are going to want to choose which cannabis license in New Jersey you would like to apply for. Each marijuana business license will give you permission to conduct a different set of activities. You can learn about the types of New Jersey Cannabis Business licenses here.
Step 3: Engage a New Jersey Cannabis License Consultant
At this point, we recommend engaging a New Jersey Cannabis Consultant. You will want to work with a marijuana business consultant that is familiar with New Jersey rules and regulations, and has experience in application writing and winning licenses.
Luckily, our New Jersey Cannabis Consulting Firm consists of some of the best cannabis application writers in the world. We helped our clients win New Jersey medical marijuana business licenses, and we’re prepared to do the same for adult-use licenses.
Our cannabis business consultants will manage your license application from start to finish. We’ll also provide executive coaching and guidance on all aspects involved in winning a cannabis license.
Reach out today to learn more about cannabis consulting in New Jersey and how we can help you become a cannabis business owner in New Jersey.
Step 4: Build your Team of Cannabis Experts in New Jersey
After you have chosen the type of license you intend to apply for and engaged consultant, the next step is to build a team. Your team should reflect your ability to operate a New Jersey Cannabis Business that is compliant, responsible, and safe.
Equally important to your team’s experience, is their ability to qualify as a social equity applicant or a diverse owner business (follow the link for the definition of Social Equity and Diversely-Owned businesses in New Jersey). The State of New Jersey places a priority on Applicants that qualify for Social Equity or Diversely Owned Business Status.
Would you like assistance building a team for your cannabis application in New Jersey? Our marijuana consulting firm in New Jersey offers talent acquisition and executive recruiting services.
Step 5: Identify a Location
You must identify a location where you intend to operate your New Jersey cannabis business.
However, we do not recommend purchasing property or signing leases until you have been awarded a license. For conditional license applicants, you only have to identify a location. You have the flexibility to change your location once awarded a conditional license.
Start by identifying a municipality you’d like to operate in. Then determine if that municipality allows for your cannabis business type and how many licenses are allowed. You can follow this link for a map of New Jersey Municipalities that have opted-in or -out of adult-use cannabis. Once confirmed, then you can identify locations that are appropriately zoned and compliant.
After you’ve chosen a location, reach out to the property owner and get a signed letter from them indicating that they are okay with you locating a cannabis business on their property.
Step 6: Write Cannabis Business Plan
Your next step is to write your cannabis business plan. You can use your business plan to begin garnering local support and build awareness around your company. If you’re still raising capital, the marijuana business plan will help communicate your project to investors.
Most importantly, you can also use your business plan in your New Jersey Cannabis License Application. Learn more about buying a business plan from our New Jersey Cannabis Consulting firm. Save time and allow the experts to write your New Jersey Cannabis Business Plan.
Step 7: Start Garnering Local Support
Additionally, it helps to have proof of local support for the proposed business. Can you identify someone in the governing body that you can get to write a letter of recommendation?
You’ll also want to check with organizations in the community where you intend to operate in. For instance, getting the approval of the neighbors of your proposed facility can lend strength to your application.
Municipal preference will play a huge role when it comes to who wins a license. Learn more about municipal control in New Jersey here.
Step 8: Write your cannabis license application in New Jersey
Finally, you will want to write a competitive cannabis license application. Whether you are applying for a conditional or annual license, hundreds of applicants will apply, so competition is fierce.
We briefly outlined above the various types of narratives that you will have to write during the cannabis license application process. Have you written a cannabis license application before? The narratives require technical expertise and can easily run into the hundreds, or even thousands, in page count.
Save time and money by allowing our New Jersey Cannabis Application Writers to write your conditional or annual license application for you. We will make sure you receive the highest scores on all sections so that you can win a license and start your NJ cannabis business.
Conclusions from our Cannabis Consulting in New Jersey
From writing the business plan to recruiting an experienced team, navigating the process of starting a New Jersey Cannabis Business can be daunting.
Nevertheless, you can start applying for a New Jersey Cannabis License today. The more time you give yourself, the higher the chances you have of putting together a competitive application.
Work with our industry-leading New Jersey cannabis consultants to save time and win a cannabis license in New Jersey. We’ll completely manage your conditional or annual license application, including all of the technical writing, garnering local support, facility design, and more.
What is a Microbusiness License in New Jersey?
Are you wondering “what is a cannabis microbusiness license in New Jersey?”
Well, a New Jersey microbusiness must meet the following requirements:
- 100% owned by current New Jersey residents that have resided in New Jersey for at least the past two consecutive years;
- at least 51% of total persons, including owners, directors, officers, and employees, shall be residents of the municipality, or the bordering municipality, in which the microbusiness is located;
- Employ no more than 10 employees
- Operate a cannabis establishment occupying an area no more than 2,500 square feet
- Possess no more than 1,000 cannabis plants each month
- In the case of a cannabis processor, acquire and process no more than 1,000 pounds of cannabis in dried form each month;
- In the case of a cannabis wholesaler, acquire for resale no more than 1,000 pounds of cannabis in dried form, or the equivalent amount in any other form, or any combination thereof, each month; and
- In the case of a cannabis retailer, acquire for retail sale no more than 1,000 pounds of cannabis in dried form, or the equivalent amount in any other form, or any combination thereof, each month.
- No owner, director, officer, or other person with a financial interest who also has decision making authority for the microbusiness shall hold any financial interest in any other licensed cannabis establishment, distributor, or delivery service, whether or not a microbusiness;
- No owner, director, officer, or other person with a financial interest who also has decision making authority for a licensed cannabis establishment, distributor, or delivery service, whether or not a microbusiness, shall hold any financial interest in a microbusiness; and
- The microbusiness shall not sell or transfer the license issued to it.
Important to note, a microbusiness holding an annual license may submit an application to convert from a microbusiness to a standard cannabis business and expand beyond the requirements listed above.
Contact our New Jersey cannabis consultants to find what marijuana business license works best for your goals.
Social Equity Business in New Jersey
A “Social Equity Business” means a license applicant or license-holder that meets one of the following criteria:
More than 50% of the ownership interest of the license applicant or license-holder is held by one or more persons that demonstrate one of the following criteria:
- At the time the initial application is submitted, have lived in an Economically Disadvantaged Area for 5 of the 10 preceding years; and
- Are, at the time the initial application is submitted and based on the preceding year’s income, a member of a household that has a household income that is 80% or less of the average median household income in the State (i.e. less than ~$72,355.20), as determined annually by the U.S. Census Bureau.
More than 50% of the ownership interest of the license applicant or license-holder is held by one or more persons who are eligible to be pronounced rehabilitated in accordance with N.J.A.C. 17:30-7.12(e), if necessary, and have been adjudicated delinquent for or convicted of, whether expunged or not, in this State, another state, or federally:
- at least two marijuana- or hashish-related disorderly persons offenses, or
- at least one marijuana- or hashish-related indictable offense.
For more information on and a map of Economically Disadvantaged areas in New Jersey, follow this link.
Diversly Owned Businesses in New Jersey
A “Diversely Owned Business” means a license applicant or a license-holder that has been certified as a minority business, as a woman’s business, as a disabled-veterans’ business, or as any combination thereof, by the Division of Revenue and Enterprise Services in the Department of the Treasury.
More specifically, at least 51% ownership must be held by diverse individuals, and the daily operations are controlled by one or more of the diverse individuals with ownership.
If you’re applying as a Diversely Owned business, you should begin the certification process now, as it may take a few weeks.
At this point, you are likely asking “what is an impact zone?”. The State, luckily, has published the criteria for an area to qualify as an Impact Zone in New Jersey.
Impact Zones include zones for which past criminal enterprises contributed to higher concentrations of law enforcement activity, unemployment, and poverty within parts of or throughout these zones.
In ranking New Jersey cannabis license applications in respect to impact zones, the commission will prioritize:
- Applicants that intend to locate their business in an impact zone, and the impact zone has less than 2 licenses so that there will be prioritized distribution so that there are at least 2 licensees in each impact zone.
- Applicants who 50% ownership is held by current residents of impact zones and have resided there for 3 or more consecutive years (the commission will award 25% of the total licenses to these individuals).
- Applicants who present a plan to employ 25% of employees who reside in impact zones (at least 25% of the impact zone employees must live in the impact zone nearest to the cannabis business).
For more information on and map of Impact Zones in New Jersey, follow this link.
For Cannabis consulting in New Jersey, please feel free to reach out. We can break down the best strategy for diverse, social equity, and Impact Zone businesses.
Order of Priority
The Commission will review, score, and approve your New Jersey Cannabis License application in the following order:
Importantly, Applications from entities that meet criteria for more than one priority status will be reviewed, scored, and approved in accordance with the status of the highest priority.
For example, an application from an entity that meets the criteria to be a Diversely-Owned Business and an Impact Zone Business will be considered a Diversely-Owned Business for purposes of application priority since Diversely-Owned Businesses are of higher priority than Impact Zone Businesses.
Additionally, Diversely-Owned Business applications with more than one certification will be given priority over applications that have one certification.
Priority shall be given in the following manner:
Bonus points for Annual Applicant
Additionally, in ranking the applications for priority, the commission will give bonus points to Annual applicants that:
- Include a significantly involved person who has resided in New Jersey for at least 5 years.
- Are party to a collective bargaining agreement with a labor organization that currently represents or is actively seeking to represent cannabis workers in New Jersey or another state
- Affirm they will use their best efforts to utilize building trades labor organizations in the construction of facilities associated with the licensed cannabis business in New Jersey
- Submit an attestation affirming they have a project labor agreement, which is a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project. This includes labor issues and worker grievances associated with any construction or retrofit of facilities.
- The commission gives special consideration to applicants that enter into agreements with an institution of higher education to create an integrated curriculum involving growing, processing, wholesaling, distributing, and retail sales of personal use cannabis and cannabis items.
- The commission prioritizes applications on the basis of Impact Zones (explained below).
Make sure to utilize our cannabis consulting services in New Jersey for assistance in scoring high on a New Jersey marijuana business license application.
First, a person or entity shall be an owner of only one license applicant or license-holder. Similarly, a person or entity shall be a principal of only one license applicant or license-holder.
However, a person or entity may hold ownership interest as a passive investor in more than one cannabis business or testing laboratory license applicant or license-holder.
Additionally, a license applicant or license-holder shall only have, at most, one open and pending cannabis business license application for each class of license at one time.
In contrast, an employee or volunteer may work with more than one license applicant or license-holder, at any or all of its cannabis business premises.
If you own or have a financial interest in a microbusiness, you cannot have an ownership or financial interest in any other license type. You are limited to one microbusiness license.
Also, a license-holder holding a testing laboratory license may hold up to three testing laboratory licenses but may not hold any cannabis business licenses.
The ownership limitations for the remaining recreational cannabis licenses in New Jersey are based on the timing of the market, as described below.
Limitations during the 24-month period following February 22, 2021:
For a period of 24 months after the passing of the act, a license-holder and its owners and principals:
- May hold one cannabis retailer license and may not hold any other license concurrent with a cannabis retailer license;
- May concurrently hold one cannabis cultivator and one cannabis manufacturer license;
- May hold one cannabis distributor license and may not hold any other license concurrent with a cannabis distributor license; or
- May hold one cannabis delivery service license and may not hold any other license concurrent with a cannabis delivery service license; and
- An expanded ATC license may concurrently hold a cannabis cultivator, cannabis manufacturer, a cannabis retailer license, and additional cannabis retail licenses for each satellite dispensary.
Limitations after the end of the 24-month period following February 22, 2021:
Following the first 24 month period of the program, a license-holder and its owners and principals:
- May concurrently hold one cannabis cultivator, one cannabis manufacturer, one cannabis retailer, and one cannabis delivery service license; or
- May hold one cannabis distributor license and may not hold any other license concurrent with a cannabis distributor license; and
- an expanded ATC license may concurrently hold a cannabis cultivator license, a cannabis manufacturer license, a cannabis retailer license, and additional cannabis retail licenses for each satellite dispensary.
Yes, the limitations on ownership can be unclear. For this reason, we encourage you to reach out for Cannabis Consulting in New Jersey so that we can answer any questions you may have.
Selling and Buying Licenses (Transferring Ownership)
You are allowed to sell your New Jersey Adult-Use Cannabis Business License. However, there is a fee you must pay and certain time restrictions.
If you transfer more than 50% of the ownership of your license, you must pay a $20,000 fee.
For at least two years after commencing operations, an annual license-holder cannot make any changes to more than 50% of its ownership interest.
Important to note, the majority share of diversely owned business, social equity business, impact zone business, or microbusiness shall remain the same until two years after the commencement of cannabis business operations.
For a microbusiness, you are not allowed to sell or transfer the license (however, you can apply to convert to a standard cannabis business license, which would then allow you to sell).
Reach out today for cannabis consulting in New Jersey!
Number of Licenses Available
During the 24 month period after February 22, 2021, New Jersey will limit the number of cannabis cultivation licenses to 37 (including expanded Alternative Treatment Centers).
Following the 24-month period after February 22, 2021, the Commission shall review the limit of 37 cannabis cultivator licenses and issue new licenses to meet the market demands of the State
For the other license types, New Jersey will determine the cap on the number of licenses based on market demand. Put differently, the Commission shall annually evaluate whether the number of each class of cannabis business is sufficient to meet the market demands of the State.
Important to note, Microbusinesses shall not count towards any limitations on the number of cannabis business licenses issued by the Commission.
Resources from our Cannabis License Consultants in New Jersey
Here are some additional resources to help with applying for and winning a New Jersey Adult-use Cannabis License:
- Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act
- Notice of Application acceptance
- Summary of the Act
- Link to the Rules For New Jersey’s Recreational Cannabis Market (N.J.A.C. 17:30)
- Summary of the Recreational Cannabis Market Rules
- The Cannabis Regulatory Commission website (oversees the development, regulation, and enforcement of activities associated adult-use cannabis)
- The cannabis application and license fees in New Jersey
- Link to previous application material from the medical marijuana market licensing rounds in New Jersey