How to Apply for New Jersey Adult-Use Licenses

Let’s review the key points in the New Jersey adult-use cannabis timeline:

Late 2019: SCR183 Passed

Proposal for a constitutional amendment to legalize cannabis

November 2020: Public Question 1 Vote

The public approved the constitutional amendment that was previously approved by the state legislature. With 67% of “yes” votes, the amendment passed with the largest margin of victory of any statewide cannabis legalization ballot measure in US history.

February 2021: Bill Signed

Governor Murphy, who campaigned heavily on cannabis legalization, signed the adult-use bill into law. 

March 2021: Regulatory Commission in Place

The state appointed a diverse Cannabis Regulatory Commission (CRC) who are tasked with leading the program.

August 2021: Partial Regulations & Municipal Opt-Outs

Partial regulations went into effect on August 19, 2021, and local municipalities had until August 21, 2021, to opt out of the adult-use program. 

November 9, 2021: Application Released

Final Notice of Application Acceptance was released on November 9 for Class 1 Cultivation, Class 2 Manufacturing, and Class 3 Testing Laboratories. The notice specifies that applications will be accepted on a rolling basis with no deadline. 

December 15, 2021: Application Opened for Cultivation & Manufacturing

The window for cultivation and manufacturing opened and remains open for an indefinite period. Local-level license applications are also going on concurrently with state-level applications. For example, Newark’s was due on December 31, 2021. 

March 15, 2021: Applications Open for Retail

The window for retail (dispensary) applications opens. This license type, too, will be accepted and reviewed on a rolling basis with no deadline.

A conditional license has lighter initial requirements but must be converted to an annual license after a specified period of time.

• Lighter content burden
• Personal income cannot exceed $200k for an individual or $400k for a couple
• Financials must do not have to be locked down, but should be well articulated
• Property does not need to be locked down, but should be narrowed down to a short list of potential properties

At conversion:

• Property must be secured
• Must show proof of local support
• Must have a labor peace agreement in place

Conditional License Timeline:

30 days: CRC has 30 days for application review, though they have already indicated that this window will likely be 60 days because of the volume of applications

120 days: The applicant must convert their conditional license to an annual license within 120 days of awarding the license

365 days: The applicant has a full year to have a final inspection for operation

An annual license application includes heavier requirements:

• Site/property control
• Financing plan
• Lots of written plans, mostly standard operating procedures (SOPs)
• Detailed cannabis cultivation and manufacturing experience
• Business experience

Annual License Timeline:

90 days: State has 90 days to review submitted applications

365 days: The applicant has a full year to have a final inspection for operation

A license applicant or license holder with more than 50% ownership interest held by one or more persons that demonstrate one of the following criteria:

• Lived in an economically disadvantaged area for 5 of the last 10 years and household income is 80% or less of the state median

OR

• Eligible to be pronounced rehabilitated

OR

• Specified indictable offenses

What are the diversity elements required for priority review?

The applicant or License Holder has been certified as:

• Minority-owned

OR

• Women-owned

OR

• Disabled Veteran-owned

Must be certified by the Division of Revenue and Enterprise Services pursuant to the criteria at N.J.A.C. 17:30-6.4

• There may not be a cap on the number of manufacturers or retailers at the state level, but there could be at the local level 
• Make sure your target location accepts cannabis businesses 
• Get connected to the local government 
• Secure approval ASAP