New Jersey Cannabis Microbusiness License
New Jersey cannabis microbusiness license is an intriguing possibility for small business entrepreneurs in the State. New jersey cannabis license regulations aim to benefit its residents with an exclusive opportunity to get in the market without the millions of dollars of funding as a cannabis microbusiness.
The truth is, without an in-state restriction in the requirements to get a cannabis license, New Jerseyans are to compete with out-of-state operators with the experience and millions of dollars of funding, which potentially could take them out of the industry.
How Much Does A New Jersey Microbusiness Cost?
The license fees are lower, but you have very strange constraints and costs of opening a grow or a dispensary may still run into the low millions. We have examples of budgets for both grows and retail operations in our New Jersey Conditional Application Accelerator!
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NJ cannabis microbusiness license may help level the field, giving New Jerseyans exclusivity to a small version of the industry and assuring participation of small business owners who reside in the state in the cannabis market.
If you are interested in getting started in opening a dispensary in New Jersey or start a growing operation in the Garden State, here is all you need to know about New Jersey cannabis microbusiness license and how to apply for it.
About New Jersey Cannabis Microbusiness License
New Jersey Microbusiness license is a reduced version of one of the available cannabis licenses in NJ, that in addition to the regular provisions, it includes additional protection to New Jerseyans, giving them some leverage to enter the cannabis industry. Four classes of the cannabis licenses are open for a micro-versions of dispensaries, growers, processors or wholesalers.
New Jersey cannabis regulations state that the characteristics of the microbusiness license are:
- 10% of cannabis licenses to be issued to microbusinesses.
- Microbusiness owners must be New Jersey residents who have resided in New Jersey for the past 2 years;
- 51% of the owners of the microbusiness must be residents of the town or the neighboring town where the microbusiness will operate.
- 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, can hold any financial interest in a microbusiness
10 Percent of New Jersey Cannabis Licenses shall be microbusinesses
“f. (1) The commission shall ensure that at least 10 percent of the total licenses issued for each class of cannabis establishment, or for cannabis distributors and cannabis delivery services, are designated for and only issued to microbusinesses, and that at least 25 percent of the total licenses issued be issued to microbusinesses.”
RELATED POST: HOW TO OPEN A CANNABIS DISPENSARY IN NEW JERSEY
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Types of New Jersey Cannabis Microbusiness Licenses
- Class 1 – Cannabis growers, a microbusiness can grow cannabis with a canopy grow area of no greater than 2,500 square feet; 24 feet high – or 1,000 plants.
- Class 2 – Cannabis processors/Manufacturers, a microbusiness can process no more than 1,000 pounds of dried cannabis per month;
- Class 3 – Cannabis wholesalers, a microbusiness can wholesale no more than 1,000 pounds of dried cannabis (or equivalent amount in other forms) per month;
- Class 4 – Cannabis Distributor – all.
- Class 5 – Cannabis retailers, a microbusiness can acquire for retail sale no more than 1,000 pounds of dried cannabis or equivalent amount in other forms per month.
- Class 6 – Delivery – all.
- NOT TESTING
“Microbusiness” Defined under New Jersey Cannabis Law:
“Microbusiness” means a person or entity licensed by the Cannabis Regulatory Commission as a cannabis 1[grower] cultivator1, cannabis 1[processor] manufacturer1, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service that may only, with respect to its business operations, and capacity and quantity of product:
- (1) employ no more than 10 employees;
- (2) operate a cannabis establishment occupying an area of no more than 2,500 square feet, and in the case of a cannabis 1[grower] cultivator1, grow cannabis on an area no more than 2,500 square feet measured on a horizontal plane and grow above that plane not higher than 24 feet;
- (3) possess no more than 1,000 cannabis plants each month, except that a cannabis distributor’s possession of cannabis plants for transportation shall not be subject to this limit;
- (4) acquire and process each month, in the case of a cannabis 1[processor] manufacturer1, no more than 1,000 pounds of 1usable1 cannabis 1[in dried form]1;
- (5) acquire for resale each month, in the case of a cannabis wholesaler, no more than 1,00 pounds of 1usable1 cannabis 1[in dried form]1, or the equivalent amount in any 1[other]1 form 1of manufactured cannabis product or cannabis resin1, or any combination thereof; and
- (6) acquire for retail sale each month, in the case of a cannabis retailer, no more than 1,000 pounds of 1usable1 cannabis 1[in dried form]1, or the equivalent amount in any 1[other]1 form 1of manufactured cannabis product or cannabis resin1 , or any combination thereof.”
Can You Sell Your New Jersey Cannabis Microbusiness License
New Jersey cannabis microbusiness license holder are not permitted to sell or transfer their licenses. Which seems to be another measure legislators took to prevent large out-of-state Cannabis businesses operators from trying to influence the microbusiness market.
How Much are the License Fees of the New Jersey Cannabis Microbusiness License
The maximum fee for issuance or renewal of a cannabis license designated and issued to a microbusiness shall be no more than half the fee applicable to a license of the same class issued to a person or entity that is not a microbusiness. A cannabis license designated and issued to a microbusiness shall be valid for one year and may be renewed annually.
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