Finally, the New Jersey CRC rules and regulations, as well as the Final Notice of Application Acceptance, have been released. We now know a lot more about how the cannabis license application and licensing processes in New Jersey will operate.
Here is a quick overview of how the New Jersey cannabis license application will pan out.
Types of New Jersey cannabis licenses
There are essentially 6 license types and one conditional license, which is one of the particularities of the state.
Below you will find a chart with all the types of licenses available in the New Jersey recreational cannabis program, as well as an explanation of the activity license-holders would be authorized to do with them:
| Type of license | Authorized activity |
| Class 1 Cannabis Cultivator | Grow recreational use cannabis |
| Class 2 Cannabis Manufacturer | Produce recreational use cannabis |
| Class 3 Cannabis Wholesaler | Store, sell or otherwise transfer, recreational use cannabis items between cannabis cultivators, wholesalers, or retailers |
| Class 4 Cannabis Distributor | Transport cannabis items in bulk between cannabis cultivators, manufacturers, or retailers within the state of New Jersey |
| Class 5 Cannabis Retailer | Purchase recreational use cannabis from licensed cultivators, manufacturers, or wholesalers and sell those items to consumers in a retail store |
| Class 6 Cannabis Delivery | Transport a consumer’s purchases of recreational use cannabis and related supplies from the retailer to that consumer |
| Conditional license | Begin building out operations for the cultivation, manufacture, dispensing, wholesale, distribution, or delivery of recreational use cannabis while working towards meeting the requirements for a cannabis cultivator, manufacturer, dispensary, wholesaler, distributor, or delivery license |
*The Cannabis Regulatory Commission began accepting the following applications for recreational cannabis on December 15, 2021:
- Class 1 Cultivator License
- Class 2 Manufacturer License
- Testing Laboratory
New Jersey recreational cannabis program overview
- Adults over the age of 21 can buy and possess up to one ounce of marijuana. It is not legal to cultivate marijuana at home.
- Regulators will prioritize three license categories with the aim of promoting social equity by assisting enterprises owned by minorities and women, as well as those situated in economically distressed areas.
- Adult-use cannabis sales are supposed to begin by mid-February.
- Cultivators, manufacturers, wholesalers, retailers, distributors, and delivery services are the six basic license categories.
- While local municipalities can choose to prevent marijuana companies from operating in their jurisdictions—and hundreds have already done so in anticipation of these regulations becoming law—they cannot do so for delivery services.
- Market demand will drive licensing choices, with regulators preferring microbusiness and conditional licenses, as well as social equity applications.
- Except for cultivators, there will be no license cap. The cultivator cap is now set at 37, but it will expire on February 22, 2023.
- Prior marijuana convictions will not disqualify people from obtaining a cannabis business license.
- Existing medical marijuana dispensaries will be allowed to apply to the city for permission to sell recreational marijuana. Their approval should be conditional on the availability of sufficient supplies to continue providing care to patients.
- The application price for the license is kept deliberately low, with applicants paying just 20% of the amount when submitting the application and the remaining 80% only if it is granted. The overall cost will be between $500 and $2,000.
- Cannabis products must be in child-proof packaging with warning labels about potential health risks. Advertising is permitted, but with significant restrictions.
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New Jersey cannabis license application priority
According to the Final Notice of Application Acceptance published recently, applications will be accepted on a continuous rolling basis and must be reviewed, scored, and approved in order following the following priority:
- Social equity Businesses, ordered by first in time, that:
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Diversely Owned Businesses, ordered by first in time, that:
- Have a submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Impact Zone Businesses, ordered by first in time, that:
- Have a submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- License applicants receiving bonus points pursuant to N.J.S.A. 24:6I-36.d(2) and this Notice, ordered by first in time, that:
- Have a submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- All other applicants for conditional licenses, ordered by first in time, that:
- Have a submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Social Equity Businesses, ordered by first in time, that:
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business;
- Diversely-Owned Businesses, ordered by first in time, that:
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business;
- Impact Zone Businesses, ordered by first in time, that:
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business;
- License applicants receiving bonus points pursuant to N.J.S.A. 24:6I-36.d(2) and this Notice, ordered by first in time, that:
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business;
- All other applicants for annual licenses, ordered by first in time, that:
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
In this case, the principle is that the CRC will review conditional license application first, then it will review annual license applications following the priority mentioned above.
Applications from entities that meet criteria for more than one priority status will be reviewed, scored, and approved in accordance with the status of highest priority.
After an application is received, it will be assigned for a completeness review and then, if deemed complete, it will be assigned for scoring. With this method, there are 25 priority groups with 1A being the highest and 10B being the lowest. The application with a higher priority group will be assigned for completeness review and scoring before applications in lower priority groups.
Once an application is scored, if it is deemed eligible for consideration of approval by the CRC, it will also be considered in accordance with their priority group.
Testing laboratories will be included in priority 1A.
How do I apply for a cannabis license in New Jersey?
Applications for recreational cannabis licenses have been available on the Cannabis Regulatory Commission’s website from December 15, 2021. License applicants must register at least one account on the Commission’s application submission portal and submit all needed information and attachments electronically using the application submission portal.
To be considered complete and responsive, an application must include a full and complete answer to each of the criteria listed in the Final Notice of Application Acceptance, as well as the completion and submission of all required information, including but not limited to:
- Responses to all required questions in the online application;
- All attachments, forms, and documents required by this Notice, submitted electronically in the online application; and
- All required fees.
Applications will be accepted on a continuous rolling basis, and will be prioritized in accordance with the Final Notice mentioned above by:
- Priority assignment; and
- First in time submission.
License applications will be assessed for completeness after they have been received. Incomplete applications will be returned to licensing applicants to be corrected and resubmitted. If an application is judged to be complete, the Commission will assess it using the criteria outlined in the above-mentioned Final Notice.
Once scored, applications that score sufficiently high pursuant to this Notice shall be presented to the Commission for consideration of approval.
How many New Jersey cannabis licenses will be granted in 2022?
The commission can only issue 37 licenses for cannabis cultivators before February 2023, but there is no cap on the number of licenses the commission can award to manufacturers, testing laboratories or dispensaries.
New Jersey cannabis license application costs
Total cost for a cannabis license in New Jersey has many components. The first is the amount that the state will charge to apply for the license. Based on the size of your business, this will range from a few hundred dollars to a few thousand.
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