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New Jersey Dispensary License | How to Open a Dispensary in NJ

What license do I need to sell cannabis in NJ?

A New Jersey cannabis dispensary requires a Class 5 Retailer License is a legal document that allows its owner to purchase or otherwise obtain usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sell 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 is different than medical marijuana and shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer.

Just like all other NJ cannabis business licenses in the state, a cannabis Retailer License shall be issued by the Cannabis Regulatory Commission (CRC) for the premises at which the cannabis is retailed.

How to open a New Jersey Cannabis Dispensary (Retailer) License 

New Jersey Cannabis Dispensary License

In order to apply for a dispensary for a Class 5 recreational cannabis Retailer License, the applicant must:

Apply for a license in the manner described in the latest legislation and the new jersey cannabis regulatory commission.

Have at least one significantly involved person who has resided in this State for at least two years as of the date of the application, and provide proof that this person and any other person with financial interest who also has decision making authority for the cannabis retailer listed on an application submitted under the legislation is 21 years of age or older;

Meet the requirements of any rule or regulation adopted by the cannabis regulatory commission;

Provide for each of the following persons to undergo a criminal history record background check: any owner, other than an owner who holds less than a five percent investment interest in the cannabis retailer or who is a member of a group that holds less than a 20 percent investment interest in the cannabis retailer and no member of that group holds more than a five percent interest in the total group investment, and who lacks the authority to make controlling decisions regarding the cannabis retailer’s operations; any director; any officer; and any employee.

NJ cannabis business license application process prioritizes conditional license applicants

A conditional license applicants wants to get their retail marijuana business going in phases.  First, you apply as a conditional applicant that his a high priority, like social equity businesses, or diversely owned businesses, then you put together the business plan and management profile and the compliance plan, plus proof of insurance and submit the application to the new jersey cannabis regulatory commission.

Recreational marijuana dispensaries require an initial application for licensure shall be evaluated according to criteria to be developed by the CRC. There shall be included bonus points for applicants who are residents of New Jersey. The criteria to be developed by the CRC for regulating a cannabis business license include  an analysis of the applicant’s operating plan, excluding safety and security criteria.

The cannabis regulatory commission requires an applicant’s operating plan has to include a description concerning the applicant’s qualifications for, experience in, and knowledge of each of the following topics:

  • Sales of cannabis items to consumers;
  • Cannabis product evaluation procedures;
  • Recall plans;
  • Packaging and labeling;
  • Inventory control and point-of-sale software or systems for the sale of cannabis items;
  • The routes of administration, strains, varieties, and cannabinoid profiles of cannabis and Cannabis items;
  • Odor mitigation practices;
  • Onsite and offsite recordkeeping;
  • Waste disposal plans; and
  • Compliance with applicable laws and regulations.

RELATED POST: NEW JERSEY CONDITIONAL CANNABIS LICENSE

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How to Open a New Jersey Cannabis dispensaryImportant factors for the application of a New Jersey Cannabis Dispensary license application

The criteria to be developed by the commission pursuant to the legislation shall include, in addition to any other criteria developed by the commission, an analysis of the following factors, if applicable:

The applicant’s environmental impact plan.

A summary of the applicant’s safety and security plans and procedures, which shall include descriptions of the following:

What does a New Jersey Cannabis Dispensary Security Plan Include?

The experience or qualifications of security personnel and proposed contractors;

Security and surveillance features, including descriptions of any alarm systems, video surveillance systems, and access and visitor management systems, along with drawings identifying the proposed locations for surveillance cameras and other security features;-plans for the storage of cannabis and cannabis items, including any safes, vaults, and climate control systems that will be utilized for this purpose;

A diversion prevention plan for your NJ cannabis business:

An emergency management plan;

Procedures for screening, monitoring, and performing criminal history record background checks of employees;

Cybersecurity procedures;

Workplace safety plans and the applicant’s familiarity with federal Occupational Safety and Health Administration regulations;

The applicant’s history of workers’ compensation claims and safety assessments;

Procedures for reporting adverse events; and

A sanitation practices plan.

A summary of the applicant’s business experience, including the following, if applicable:

The applicant’s experience operating businesses in highly Regulated industries;

The applicant’s experience in operating cannabis establishments or alternative treatment centers and related cannabis production, manufacturing, warehousing, or retail entities, or experience in operating cannabis distributors or delivery services, under the laws of New Jersey or any other state or jurisdiction within The United States; and

New Jersey Cannabis License ApplicationThe applicant’s plan to comply with and mitigate the effects of 26 U.S.C. s.280E on cannabis businesses, and for evidence that the applicant is not in arrears with respect to any tax obligation to the State.

A description of the proposed location for the applicant’s site, including the following, if applicable: 

The proposed location, the surrounding area, and the suitability or advantages of the proposed location, along with a floor plan and optional renderings or architectural or engineering plans;

The submission of zoning approvals for the proposed location, which shall consist of a letter or affidavit from appropriate officials of the municipality that the location will conform to local zoning requirements allowing for activities related to the operations of the proposed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service as will be conducted at the proposed facility.

Our Pages about the state’s medical marijuana program

NEW JERSEY MARIJUANA LAWS
NEW JERSEY CANNABIS LICENSES

Recreational marijuana requires local support in New Jersey.

The submission of proof of local support for the suitability of the location, which may be demonstrated by a resolution adopted by the municipality’s governing body indicating that the intended location is appropriately located or otherwise suitable for activities related to the operations of the proposed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service. 

An application for a New Jersey cannabis retailer license shall not include in that application a proposed site that would place the retailer’s premises in or upon any premises in which operates a grocery store, delicatessen, indoor food market, or other store engaging in retail sales of food, or in or upon any premises in which operates a store that engages in licensed retail sales of alcoholic beverages, as defined by subsection b. of R.S.33:1-1; any application presented to the commission shall be denied if it includes that form of proposed site.

Disqualification of an application for a New Jersey Cannabis Retailer license

A New Jersey cannabis retailer license application shall be disqualified from consideration unless it includes documentation demonstrating that the applicant will have final control of the premises upon approval of the application, including, but not limited to, a lease agreement, contract for sale, title, deed, or similar documentation. In addition, if the applicant will lease the premises, the application will be disqualified from consideration unless it includes certification from the landlord that the landlord is aware that the tenant’s use of the premises will involve activities associated with operations as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service.

A community impact, social responsibility, and research statement, which may include, but shall not be limited to, the following:

A community impact plan summarizing how the applicant intends to have a positive impact on the community in which the proposed cannabis establishment,distributor, or delivery service is to be located, which shall include an economic impact plan and a description of outreach activities;

A written description of the applicant’s record of social responsibility, philanthropy, and ties to the proposed host community;

a written description of any research the applicant has conducted on the adverse effects of the use of cannabis items, substance abuse or addiction, and the applicant’s participation in or support of cannabis-related research and educational activities; and

A written plan describing any research and development regarding the adverse effects of cannabis,12and any cannabis-related educational and outreach activities, which the applicant intends to conduct if issued a license by the commission.

A workforce development and job creation plan, which may include information on the applicant’s history of job creation and planned job creation at the proposed cannabis establishment, distributor, or delivery service; education, training, and resources to be made available for employees; any relevant certifications; and an optional diversity plan.

A cannabis business plan is required for a NJ cannabis business license:

An executive summary of the applicant’s business plan;

A demonstration of the applicant’s financial ability to implement its business plan, which may include, but shall not be limited to, bank statements, business and individual financial statements, net worth statements, and debt and equity financing statements; and

A description of the applicant’s plan to comply with guidance pertaining to cannabis issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal “Bank Secrecy Act,” which may be demonstrated by submitting letters regarding the applicant’s banking history from banks or credit unions that certify they are aware of the business activities of the applicant, or entities with common ownership or control  with the applicant, in any state where the applicant has operated a business related to personal use or medical cannabis. For the purposes of this subsubparagraph, the commission shall consider only bank references involving accounts in the name of the applicant or of an entity with common ownership or control with the applicant. An applicant who does not submit the information about a plan of compliance with the federal “Bank Secrecy Act” shall not be disqualified from consideration.

Whether any of the applicant’s majority or controlling owners were previously approved by the commission to serve as an officer, director, principal, or key employee of an alternative treatment center or personal use cannabis establishment, distributor, or delivery service, provided any such individual served in that capacity for six or more months.

Any other information the commission deems relevant in determining whether to grant a license to the applicant.

The cannabis regulatory commission has to include an analysis of the following factors:

The applicant’s environmental impact plan.

A summary of the applicant’s safety and security plans and procedures, which shall include descriptions of the following:

    • Plans for the use of security personnel, including contractors;
    • The experience or qualifications of security personnel and proposed contractors;
    • Security and surveillance features, including descriptions of any alarm systems, video surveillance systems, and access and visitor management systems, along with drawings identifying the proposed locations for surveillance cameras and other security features;
    • Plans for the storage of cannabis and cannabis items, including any safes, vaults, and climate control systems that will be utilized for this purpose;
    • A diversion prevention plan;
    • An emergency management plan;
    • Procedures for screening, monitoring, and performing criminal history record background checks of employees;
    • Cybersecurity procedures;
    • Workplace safety plans and the applicant’s familiarity with federal Occupational Safety and Health Administration regulations;
    • The applicant’s history of workers’ compensation claims and safety assessments;
    • Procedures for reporting adverse events; and
    • A sanitation practices plan.

retail marijuana business in NJ requires experience to sell cannabis

A summary of the applicant’s business experience must include details about all the applicant’s experience operating businesses in highly regulated industries;

The applicant’s experience in operating cannabis establishments or alternative treatment centers and related cannabis production, manufacturing, warehousing, or retail entities, or experience in operating cannabis distributors or delivery services, under the laws of New Jersey or any other state or jurisdiction within the United States; and

The applicant’s plan to comply with and mitigate the effects of 26 U.S.C. s.280E on cannabis businesses, and for evidence that the applicant is not in arrears with respect to any tax obligation to the State.

A description of the proposed location for the applicant’s site, including the following, if applicable:

The proposed location, the surrounding area, and the suitability or advantages of the proposed location, along with a floor plan and optional renderings or architectural or engineering plans;

The submission of zoning approvals for the proposed location, which shall consist of a letter or affidavit from appropriate officials of the municipality that the location will conform to local zoning requirements allowing for activities related to the operations of the proposed cannabis cultivator, as will be conducted at the proposed facility; and

Local Support  is Required to Get a Cannabis License in New Jersey

The submission of proof of local support for the suitability of the location, which may be demonstrated by a resolution adopted by the municipality’s governing body indicating that the intended location is appropriately located or otherwise suitable for activities related to the operations of the proposed cannabis cultivator.

A community impact, social responsibility, and research statement, which may include, but shall not be limited to, the following:

A community impact plan summarizing how the applicant intends to have a positive impact on the community in which the proposed cannabis establishment, distributor, or delivery service is to be located, which shall include an economic impact plan and a description of outreach activities;

A written description of the applicant’s record of social responsibility, philanthropy, and ties to the proposed host community;

A written description of any research the applicant has conducted on the adverse effects of the use of cannabis items, substance abuse or addiction, and the applicant’s participation in or support of cannabis-related research and educational activities; and

A written plan describing any research and development regarding the adverse effects of cannabis, and any cannabis-related educational and outreach activities, which the applicant intends to conduct if issued a license by the commission.

A workforce development and job creation plan, which may include information on the applicant’s history of job creation and planned job creation at the proposed cannabis establishment, distributor, or delivery service; education, training, and resources to be made available for employees; any relevant certifications; and an optional diversity plan.

A business and financial plan, which may include, but shall not be limited to, the following:

An executive summary of the recreational marijuana business plan;

A demonstration of the applicant’s financial ability to implement its business plan, which may include, but shall not be limited to, bank statements, business and individual financial statements, net worth statements, and debt and equity financing statements.

Banking Compliance is required to operate a Dispensary in New Jersey

A description of the applicant’s plan to comply with guidance pertaining to cannabis issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal “Bank Secrecy Act,” which may be demonstrated by submitting letters regarding the applicant’s banking history from banks or credit unions that certify they are aware of the business activities of the applicant, or entities with common ownership or control with the applicant, in any state where the applicant has operated a business related to personal use or medical cannabis. 

Whether any of the applicant’s majority or controlling owners were previously approved by the commission to serve as an officer, director, principal, or key employee of an alternative treatment center or personal use cannabis establishment, distributor, or delivery service, provided any such individual served in that capacity for six or more months

Any other information the commission deems relevant in determining whether to grant a license to the applicant.

If you need more information about the licensing process, it is recommended that you contact an expert on the field so that you can get the necessary guidance in your endeavor.

Medical marijuana in New Jersey is a different cannabis industry

New Jersey’s Medicinal Cannabis Program (previously the Medicinal Marijuana Program) helps registered patients under the care of licensed medicinal practitioners safely access cannabis-based medicine from regulated and monitored facilities.  Granted, the medical marijuana program violates federal law.

As part of medicinal treatment, patients receive cannabis orders from their doctor or other health care practitioner of up to 3 oz for every 30-day period. Cannabis orders are filled at one of the state-licensed Alternative Treatment Centers (ATC) across New Jersey. Patients unable to travel to an ATC can have a designated caregiver pick up their medication on their behalf. In NJ Medical Marijuana vertically integrated permits were all that were available.

There are currently 12,764 registered patients in the New Jersey Medicinal marijuana Program.

In order to qualify for the medical marijuana program, patients must have one of the following conditions: ALS, Alzheimer’s disease, anorexia, anxiety, arthritis, cancer, chronic pain, Crohn’s disease, diabetes mellitus, epilepsy, glaucoma, HIV/AIDS, Huntington’s disease, inflammatory bowel disease, Multiple Sclerosis (MS), muscular dystrophy, neuroblastoma and sarcoma.

There has been some controversy over the years about New Jersey’s Medicinal Marijuana Program. In 2011, Governor Chris Christie tried to repeal the program but was vetoed by then-Governor Jon Corzine. The same thing happened in 2012 when Christie tried to veto the bill again but it was overruled by the state legislature.

In August 2013, the state’s Medicinal Marijuana Program was expanded to include children with severe illnesses such as cancer and seizure disorders.

In January 2018, the Jake Honig Compassionate Use Medical Cannabis Act was signed into law, which allows registered patients to possess up to 2 oz of cannabis per month.

Despite some opposition, the New Jersey Medicinal Cannabis Program has helped thousands of patients receive the treatment they need. The program is constantly evolving and expanding.

Differences between recreational marijuana and medical marijuana businesses.

Recreational marijuana businesses and medical marijuana cannabis businesses are very different. But some states, like New Jersey, treat many of their regulations very similarly. Recreational marijuana is used for pleasure, while medical marijuana is used to help treat various illnesses. recreational marijuana businesses are subject to more regulations than medical marijuana cannabis businesses. Recreational marijuana must be grown in a secure facility, while medical marijuana can be grown at home. Recreational marijuana businesses must pay state and local taxes, while medical marijuana cannabis businesses often do not have to pay additional state sales taxes. Recreational marijuana products must be tested for potency and contaminants, while homegrown medical marijuana products do not need to be tested.

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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Picture of Thomas Howard

Thomas Howard

A seasoned commercial lawyer and the Managing Director of Collateral Base. With over 15 years of experience, Tom specializes in the cannabis industry, helping businesses navigate complex regulations, secure licenses, and obtain capital. He has successfully assisted clients in multiple states and is a Certified Ganjier. Tom also runs the popular YouTube channel "Cannabis Legalization News," providing insights and updates on cannabis laws and industry trends.
Picture of Thomas Howard

Thomas Howard

A seasoned commercial lawyer and the Managing Director of Collateral Base. With over 15 years of experience, Tom specializes in the cannabis industry, helping businesses navigate complex regulations, secure licenses, and obtain capital. He has successfully assisted clients in multiple states and is a Certified Ganjier. Tom also runs the popular YouTube channel "Cannabis Legalization News," providing insights and updates on cannabis laws and industry trends.

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