The New Jersey marijuana microbusiness license is a great opportunity for small business entrepreneurs within the state. Unlike traditional marijuana ventures requiring millions of dollars in capital, New Jersey\’s marijuana license regulations offer a pathway for its residents to thrive. From cultivation to delivery, the New Jersey Cannabis Regulatory Commission has established clear guidelines for aspiring microbusinesses.
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:
Class 1 – Cannabis Cultivator
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.
Class 2 – Cannabis Manufacturer
A cannabis manufacturer license authorizes a microbusiness to process up to 1,000 pounds of dried cannabis monthly.
Class 3 – Cannabis Wholesaler
The license permits a microbusiness to wholesale (or sell to other wholesalers and retailers) up to 1,000 pounds of dried marijuana monthly.
Class 4 – Cannabis Distributor
With a cannabis distributor license, a microbusiness can sell between cultivators or establishments.
Class 5 – Cannabis Retailer
A cannabis retailer license allows a microbusiness to obtain for retail sale up to 1,000 pounds of dried cannabis monthly.
Class 6 – Cannabis Delivery
The license allows the delivery of cannabis from retailers to retail customers.
Licensing Requirements
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 type and class of the required license
- The description and proposed location of the microbusiness premises
- Its ownership structure and financial interest
- Its security plan and overall inventory control system
- Its standard operating procedures
- Its labor practices and policies
- Its environmental impact and energy efficiency plan
- The community engagement and education plan of the microbusiness
- The social equity and diversity strategy
- The zoning approval and municipal endorsement
- The background checks and proof of residency of the owners, directors, employees, and officers
- Its tax clearance certificate and proof of insurance
- Any other required information
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 protection of public health
- The contribution to the community\’s economic development and well-being
- The microbusiness\’ environmental sustainability and overall energy efficiency
- The microbusiness\’ innovation and creativity
- 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
The commission typically takes 180 days to approve or deny the applications unless they extend this period for a good cause. Once the commission approves an applicant who has met all the requirements, they\’ll issue them a conditional license. Then, they\’ll inspect the microbusiness premises before issuing a final license.
When Does the License Expire?
A New Jersey marijuana microbusiness license expires in one year from its date of issuance. You have at least 60 days before the expiration date to apply for a renewal. The renewal application includes any updates or changes to the documents or information submitted in the original application, and the payment of the renewal fee.
Next, the commission will review your application and determine whether you have adhered to all the necessary specifications and regulations. The commission usually considers your performance and conduct during the license period, i.e., any complaints, violations, or disciplinary actions. They\’ll then grant or deny your application within 90 days of submission.
Suppose you fail to renew your license before its expiration date. In that case, the commission will suspend your license until the completion of the renewal. Suppose you fail to renew your license within 30 days after its expiration date. In that case, the commission will revoke your license, and you\’ll have to reapply for a new one.
How do I get a License to Grow Hemp in New Jersey?
The New Jersey Cannabis Trade Commission offers an online platform where you can apply for all NJ cannabis licenses. The application begins with account registration, then email confirmation, and lastly, logging in to your account. After accessing the portal, you\’ll need to:
- Create a new application
- Navigate to the General Information tab and add all relevant information
- Complete the license information
- Answer the required questions and provide all information about applicants
- Include all info about your primary contact
- Add location information
- Provide the necessary documentation
- Pay the necessary fee
- Review all information for completeness and accuracy
You can review and monitor your application status within the dashboard after submitting your application. The dashboard also displays information about your payments and invoices, which you can review and make updates.
Moduulize’s Modular Grow Rooms
New Jersey cannabis regulations create an exciting opportunity for small-scale businesses to venture into the marijuana industry. Moduulize stands at the forefront of this movement. We’re professionals in indoor grow rooms in New Jersey and cannabis cultivation solutions designed to meet the needs of microbusinesses.
Each modular grow room offers the capacity to accommodate 280 sq. ft. of canopy, and you\’re allowed 2,500 sq. ft.; so this is 8 of our boxes. As such, it allows aspiring entrepreneurs to maximize their designated space within the confines of state regulations. Our versatile systems empower all entrepreneurs (whether cultivators, manufacturers, or distributors) to scale their operations as required.
Don\’t miss out on the opportunity to revolutionize your marijuana cultivation experience. Call us at (646) 612-7734 to discuss how we can elevate your cannabis microbusiness.
Contact Us Today To Learn More
Sources:
- https://www.nj.gov/cannabis/businesses/
- https://newjerseystatecannabis.org/licensing/microbusiness
- https://www.cannabisindustrylawyer.com/new-jersey-cannabis-microbusiness-license/
- https://box4grow.com/
- https://bridgewestconsulting.com/new-jersey-cannabis-microbusiness/
- https://www.cannabisindustrylawyer.com/how-to-get-a-cannabis-business-license-in-new-jersey/
- https://www.leaflegalpc.com/faqs
- https://www.jdsupra.com/legalnews/new-jersey-s-adult-use-cannabis-program-2067986/
- https://www.cannabisbusinesstimes.com/news/new-jersey-microbusiness-license-review/
- https://business.nj.gov/starter-kits/recreational-cannabis
