New Jersey defines a marijuana microbusiness as an entity or individual that the New Jersey Cannabis Regulatory Commission licenses to conduct any cannabis activity, including cultivating, manufacturing, wholesaling, distributing, selling, or running a delivery service. Before you apply for your license, you must understand what type of business license you require and whether or not you meet specific requirements.
About the New Jersey Marijuana Microbusiness License
Besides the regular provisions of other cannabis licenses in NJ , the New Jersey microbusiness license offers extra security to New Jerseyans. It offers them some leverage to enter the marijuana industry. The cannabis business must satisfy the following criteria to qualify as a microbusiness:
All of the business owners must be current NJ residents. Also, they must have resided in the state for the past two consecutive years.
The business can only have up to 10 employees.
At least 51% of the owners, officers, directors, and employees need to be residents of the municipality where the actual business will be.
The business operating space should be at most 2,500 square feet. As for cultivators, this should be at most a height of 24 ft.
There are several limitations on the monthly volume of marijuana that your business can be involved in. These limitations vary based on the type of license being sought (in some situations, limits of 1,000 cannabis plants monthly, limits of 1,000 pounds of usable cannabis monthly, or other similar restrictions).
No owner, officer, director, or employee with a financial interest and supervision in any other cannabis business is allowed to hold any financial interest in a microbusiness.
Categories of New Jersey Marijuana Licenses and Micro-Licenses
Since Governor Murphy signed and established the CREAMM Act in 2021 , there are six classes of cannabis businesses eligible for NJ licenses. The Cannabis Regulatory Commission usually issues licenses for recreational and medicinal cannabis operations in NJ. Each business must have a license to conduct any commercial cannabis activity.
A new marijuana business may apply for a conditional license. It allows them to operate legally for only a temporary period as they acquire one of the six official licenses.
Although there are several differences in the application process, e.g., the cost of fees, the overall process is the same. The following are types of cannabis microbusiness licenses in NJ:
The license allows a microbusiness to grow adult-use marijuana with a canopy grow space of up to 2,500 sq. ft., or 1,000 plants.
A cannabis manufacturer license authorizes a microbusiness to process up to 1,000 pounds of dried cannabis monthly.
The license permits a microbusiness to wholesale (or sell to other wholesalers and retailers) up to 1,000 pounds of dried marijuana monthly.
With a cannabis distributor license, a microbusiness can sell between cultivators or establishments.
A cannabis retailer license allows a microbusiness to obtain for retail sale up to 1,000 pounds of dried cannabis monthly.
The license allows the delivery of cannabis from retailers to retail customers.
An applicant must pay the relevant fees and submit a complete application to the New Jersey Cannabis Regulatory Commission to apply for an NJ marijuana microbusiness license. The application should include the following information about the microbusiness:
The applicant\’s name, address, contact information, and any related entities
The description and proposed location of the microbusiness premises
Its ownership structure and financial interest
Its security plan and overall inventory control system
Its environmental impact and energy efficiency plan
The community engagement and education plan of the microbusiness
The background checks and proof of residency of the owners, directors, employees, and officers
Its tax clearance certificate and proof of insurance
The commission usually reviews these applications on a rolling basis and uses a point system to score them. They\’ll consider several factors, such as:
Compliance with the local and state laws and regulations
The qualifications and suitability of the applicant and the microbusiness
The promotion of social equity and diversity within the cannabis industry
The contribution to the community\’s economic development and well-being
The microbusiness\’ environmental sustainability and overall energy efficiency
The demonstration of ethical conduct and social responsibility
The participation/ contribution to the research and development of the marijuana industry
The responsiveness to the consumers\’ needs and preferences