Despite marijuana’s federal legality status, ganjapreneurs have been given the green light on recreational dispensaries in New Jersey. But what rules and regulations do dispensary operators need to understand to operate compliantly?
In this post, we cover the rules and regulations surrounding recreational dispensaries in New Jersey. Then, we’ll answer some of the most frequently asked questions consumers and business owners ask.
Keep reading for the insight you need into operating recreational dispensaries in New Jersey.
Looking to scale your New Jersey recreational dispensary? Northstar is ready to help!
Contact us now to speak with one of our experts about how we’ll grow your operation with proper financial reporting and data.
New Jersey Dispensary Regulations
Through New Jersey’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act, the state’s ganjapreneurs will now have a legal adult-use cannabis marketplace. The Act permits legal sales and use of cannabis and cannabis products for adults 21 years of age and older.
Here’s some insight into New Jersey dispensary regulations to keep in mind:
New Jersey Recreational Cannabis Business License Application Insight
The Cannabis Regulatory Commission has been granted the responsibility of issuing licenses for medicinal and recreational cannabis businesses in New Jersey. This, of course, includes recreational dispensaries in New Jersey.
Every cannabis business operating in the Garden State must have a license. The licensure must be active and in good standing in the state if you plan to conduct commercial cannabis activity, including:
- Marijuana plant cultivation
- Marijuana and marijuana product storage
- Cannabis product manufacturing
- Delivering or transporting marijuana and marijuana products
- Distributing or selling marijuana and marijuana products
- Cannabis and cannabis product testing
At this point, the New Jersey CRC is accepting applications for recreational cannabis business licenses in these categories:
- Class 1 Cultivator Licenses
- Class 2 Manufacturer Licenses
- Testing Laboratories
The state will not begin accepting Class 5 Retailers until March 15, 2022.
Review of license applications will take place as they’re received until said otherwise. Priority review, scoring, and approval will be given to Diversely-Owned Businesses, Social Equity businesses, Impact Zone Businesses, and applications that obtain bonus points.
The state has yet to put limits on how many cannabis business licenses will be granted throughout the state. However, the statute allows for 37 Class 1 Cultivator licenses up until February 22, 2023.
Considerations for New Jersey Recreational Dispensary License Application
Before you begin applying for a New Jersey recreational dispensary license, consider what activities your operation will perform.
Here are the various business types to consider in conjunction with your dispensary application:
- Cultivation – This activity involves growing marijuana.
- Manufacturing – You plan to produce marijuana products.
- Wholesaler – You’d like to be able to store, purchase, and/or distribute bulk marijuana and marijuana products.
- Distribution – Your plan is to transport bulk marijuana and marijuana products.
- Retailer – You’d like to buy marijuana and marijuana products from licensed cultivators, wholesalers, and/or manufacturers before selling to consumers in a retail operation.
- Delivery – You plan to transport retail-bought marijuana and marijuana products to consumers.
- Diversely-Owned Business – Your operation is certified minority-owned, disabled veteran-owned, or woman-owned.
- Social Equity Business – Your business is owned by individuals who have resided in an Economically Disadvantaged Area.
- Impact Zone Business – Your operation is located in an Impact Zone, employing residents of Impact Zones, or is owned by people who come from an Impact Zone.
- Conditional License – This is an interim status that provides applicants with 120 days to search for a property, secure municipal approval, and apply to convert this license to an annual license.
- Microbusiness – These operations have up to 10 employees and up to 2500 square feet of operation space.
Also, keep in mind, you should check your municipal regulations wherever you plan to establish your operation. Then, you’ll need to figure out whether you’re a priority applicant.
FAQ About Recreational Dispensaries in New Jersey
When will recreational dispensaries open in NJ, Reddit?
Reddit recently had a post discussing that legal cannabis sales might start in New Jersey within weeks, according to Governor Phil Murphy. The plan here is to have existing medical marijuana dispensaries sell recreational marijuana to adult consumers.
However, the New Jersey Cannabis Regulatory Commission is still conducting its license applications. The panel has already missed its self-imposed February 22 deadline to give the green light for adult-use cannabis sales.
Are there any recreational dispensaries open in New Jersey?
Not yet. But this is soon to change! At this point, the state hopes to have some of its 23 medicinal cannabis dispensaries begin distributing to adult-use consumers. These operations currently serve beyond 120,000 registered patients in the state.
However, several medical marijuana providers have openly stated that New Jersey is taking too much time for request approval. They want to begin serving the legal adult-use market, and they’re threatening to cut their staff and destroy marijuana products if this emerging legal market takes much longer to open.
Do you need a medical card in NJ?
While this is soon going to change, you need a medical card in NJ if you want access to medical marijuana products. Equally important to keep in mind is that the state is on the cusp of beginning adult-use cannabis distribution!
How do I become a grower in NJ?
Becoming a grower in the state of New Jersey means applying to the New Jersey Cannabis Regulatory Commission (NJCRC). You’d apply for the Cultivation License. Currently, the new statute will permit up to 37 Class 1 Cultivator licenses until February 22, 2023.
Can I start a dispensary in NJ?
You can start a dispensary in NJ. However, currently, you’ll need to buy an existing medical marijuana dispensary to operate legally. This soon should change. But for the time being, you’d have to spend a minimum of several million dollars.
Progress is being made. New Jersey’s recreational cannabis law focuses on helping smaller businesses join the legal marketplace. Stay up to date on this progress and you’ll know when it’s time to start a dispensary in NJ!
What is a Micro Business NJ?
A Micro Business in NJ is an operation that’s quite small. These can include cannabis cultivation operations, manufacturers, delivery services, retailers, or distributors.
Closing on Recreational Dispensaries in New Jersey
All in all, it’s important to stay up to date on the progress of recreational dispensaries in New Jersey. This way, you’ll know when it’s time to start your own operation!
If you already operate a dispensary, you already know how important it is to stay on top of your financials. The regulations governing this space are challenging to navigate on your own, but Northstar is ready to help!
Contact us now to speak with one of our experts about how we’ll grow your operation with proper structuring, financial reporting, accounting, and more.