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In New Jersey, the Cannabis Regulatory Commission (CRC) is responsible for issuing licenses for both medicinal and recreational cannabis business operations. To engage in any commercial cannabis activity, businesses must possess an active and valid license. This includes activities such as:
- Growing cannabis plants
- Storing cannabis and cannabis products
- Making cannabis products
- Transporting or delivering cannabis and cannabis products
- Selling cannabis and cannabis products
- Testing cannabis and cannabis products
Cannabis Testing Lab Licensing and Set-up
Our team of PhD organic chemists can assist you with your licensing application, lab setup, equipment selection, and provide you with best practices and Standard Operating Procedures for your Cannabis Analytical Testing Lab.
New Jersey License Application Types
The CRC is currently accepting applications for personal-use (recreational) cannabis businesses in the following categories:
Class 1 Cultivator License
What They Can Do:
- Grow, cultivate, and produce cannabis.
- Sell and transport cannabis to other Class 1 Cannabis Cultivators, Class 2 Cannabis Manufacturers, Class 3 Cannabis Wholesalers, and Class 5 Cannabis Retailers.
- Operate as a Microbusiness without a capacity limit.
Limitations:
- Cannot sell directly to consumers.
- Restrictions on holding other license types: Cannot hold a Class 3 Wholesaler or Class 5 Retailer license.
Class 2 Cannabis Manufacturer License
What They Can Do:
- Buy, store, process, and package cannabis into products.
- Sell cannabis products to licensed distributors.
Limitations:
- Cannot operate as a Class 3 Wholesaler or Class 5 Cannabis Retailer at the same establishment.
- Restricted to selling only to licensed distributors, not directly to consumers or retailers.
Class 3 Cannabis Wholesaler License
What They Can Do:
- Purchase and sell cannabis products, similar to white labeling.
- Operate like a major brand, purchasing from cultivators and manufacturers, then selling to retailers.
Limitations:
- Cannot deliver cannabis directly to consumers.
- Does not produce cannabis products.
Class 4 Cannabis Distributor License
What They Can Do:
- Operate similarly to UPS, transferring products from cultivators and manufacturers to licensed cannabis operators.
- Provide wholesale-level transportation services.
Limitations:
- Cannot take title/ownership of the products they distribute.
- Cannot sell or deliver directly to consumers.
Class 5 Cannabis Retailer License
What They Can Do:
- Buy and sell cannabis products directly to consumers at a cannabis retail dispensary.
- Operate a cannabis consumption area on their retail premises, with state and municipal endorsement.
Limitations:
- Sales are restricted to the licensed store.
- Cannot produce or distribute cannabis products.
Class 6 Delivery Service License
What They Can Do:
- Provide delivery services to New Jersey Adult-use Cannabis Retailers, similar to services like Grubhub.
- Operate with lower investment needs, focusing on secure transport vehicles.
Limitations:
- Cannot sell or handle cannabis directly.
- Must create a compelling business reason for retailers to use their service, as retailers can deliver their own products.
Eligibility
Residency: At least one key person involved in the application must have lived in New Jersey for a minimum of two years at the time of applying.
Age: Anyone with financial stakes or decision-making roles in the application needs to be at least 21 years old.
Regulatory Compliance: Applicants must fulfill all CRC criteria and consent to fingerprinting as per state and federal laws.
Criminal Background Checks & Conviction Review: Owners with more than a 5% control interest or groups with over 20% investment must agree to criminal background checks. The CRC will perform these checks and evaluate any convictions, then notify the applicants of their eligibility status.
Navigating Municipal Approval: Gaining local approval is crucial in New Jersey’s licensing process. Post-CREAMM act, municipalities can choose to permit or prohibit recreational cannabis.
Navigating local regulations or selecting the right location for your cannabis business is complex. CannDelta provides specialized support to help you obtain a New Jersey cannabis license in the optimal location.
New Jersey Cannabis Business Licensing Fees
Cannabis License Application Fees in New Jersey
Standard Cannabis Business Licensing Fees:
- Cannabis Application Submission Fee: $200
- Cannabis Application Approval Fee: $800
- Cannabis Conditional Conversion Submission Fee: $200
- Cannabis Conditional Conversion Approval Fee: $800
Microbusiness Cannabis Licensing Fees:
- Cannabis Application Submission Fee: $100
- Cannabis Application Approval Fee: $400
- Cannabis Conditional Conversion Submission Fee: $100
- Cannabis Conditional Conversion Approval Fee: $400
Annual Cannabis License Costs
For Standard Cannabis Operations:
- Cannabis Application Submission Fee: $400
- Cannabis Application Approval Fee: $1,600
For Microbusiness Cannabis Ventures:
- Cannabis Application Submission Fee: $200
- Cannabis Application Approval Fee: $800
Cannabis Testing Laboratory Application and Approval Fees
- Cannabis Testing Laboratory Submission Fee: $400
- Cannabis Testing Laboratory Approval Fee: $1,600
Expanded Alternative Treatment Centers (ATC) Certification Fees
- Medical Cannabis Cultivator Expansion Fee: $400,000
- Medical Cannabis Manufacturer Expansion Fee: $300,000
- Medical Cannabis Dispensary Expansion Fee: $100,000
- Vertically Integrated Cannabis ATC Fees: Ranging from $800,000 to $1,000,000 based on the number of dispensaries
Tiered Cannabis Cultivation License Fees
Class 1 Cannabis Cultivator License Fees for Standard Business:
- Tier I Cannabis License Fee: $5,000
- Tier II Cannabis License Fee: $10,000
- Tier III Cannabis License Fee: $20,000
- Tier IV Cannabis License Fee: $30,000
- Tier V Cannabis License Fee: $40,000
- Tier VI Cannabis License Fee: $50,000
Class 1 Cannabis Cultivator License Fee for Microbusiness:
- Microbusiness Cannabis Cultivator Fee: $1,000
Cannabis Manufacturing License Fees
Class 2 Cannabis Manufacturer License Fees for Standard Business:
- Cannabis Manufacturing License Fee Up to 10,000 sq ft: $20,000
- Cannabis Manufacturing License Fee for more than 10,000 sq ft: $30,000
Class 2 Cannabis Manufacturer License Fee for Microbusiness:
- Microbusiness Cannabis Manufacturing Fee: $1,000
Cannabis Wholesale and Distribution Licensing Fees
- Class 3 Cannabis Wholesaler License Fee: $10,000 for a standard license and $1,000 for a microbusiness license
- Class 4 Cannabis Distributor License Fee: $3,000 for a standard license and $1,000 for a microbusiness license
Retail Cannabis Dispensary and Delivery Service Fees
- Class 5 Cannabis Retailer License Fee: $10,000 for a standard license and $1,000 for a microbusiness license
- Class 6 Cannabis Delivery Service License Fee: $3,000 for a standard license and $1,000 for a microbusiness license
Cannabis Laboratory Testing License Fee
- Cannabis Testing Lab Licensing Fee: $4,000
Key Features of Recreational Licenses
- Vertical Integration: Operators can hold multiple types of licenses simultaneously, except for wholesale and distributor licenses, which are exclusive.
- No Statewide Limit: There’s no cap on the number of cannabis business licenses available.
- Eligibility and Application Requirements: Detailed in the Notice of Application, including forms and supporting documents.
Standard and Microbusiness License Categories
- Conditional License: A temporary permit allowing businesses to operate while fulfilling full licensure requirements.
- Microbusiness License: For small-scale operations with a maximum of 10 employees and limited operational space.
Consulting Services
Location Determination
CannDelta can help you determine the best cannabis site for you in NJ and provide resources to assist with leases, zoning, municipal, and state approvals. Site eligibility checks allow our clients to build-out and move-in with confidence.
CannDelta will work with architects to design floor plans, site layouts, flow, physical security plans and have those reflected in your standard operating procedures.
Cannabis Licensing & Permitting Applications
Get help with Turnkey licensing cannabis applications. CannDelta will assist you with obtaining permits and provide consulting support for all NJ marijuana license types.
Cannabis Business Plans
We can create customized business plans to help forecast your company’s success and predict when you will receive a return on your investment. Our plans contain pitch decks & customized logos, branding, and a marketing plan.
Application steps, costs, and compliance guidelines for New Jersey cannabis cultivation license.
Application steps, costs, and compliance guidelines for New Jersey cannabis manufacturing license.
Application steps, costs, and compliance guidelines for New Jersey cannabis manufacturing license.
Application steps, costs, and compliance guidelines for New Jersey cannabis distribution license.
Application steps, costs, and compliance guidelines for New Jersey cannabis retail license.
Application steps, costs, and compliance guidelines for New Jersey cannabis delivery service license.
Frequently Asked Questions About New Jersey State's Cannabis Market - SOLVED!
Can I Get New Jersey Dispensary Cannabis License Right Now?
Yes!
Currently, applications are being accepted for
- Class 1 Cultivator
- Class 2 Manufacturer
- Class 3 Wholesaler
- Class 4 Distributor
- Class 5 Retailer
- Class 6 Delivery Service
- Testing Laboratory
New Jersey Cannabis License applications for adult-use (non-medical or recreational) are being accepted today and are reviewed on a rolling basis. Social Equity Businesses, Diversely Owned Businesses, Impact Zone Businesses and applications that received bonus points receive priority review, scoring and approval. Once a conditional license is approved, there is a 120-day period to submit a conditional license conversion application. Once your conversion application is submitted, the applications are then prioritized again for approval. It is recommended by CannDelta that, if possible, once a conditional license is approved, that a conditional conversion application is submitted as soon as the next business day to maintain the highest priority level. All conditional New Jersey cannabis license applications are being reviewed before non-conditional license applications.
What is a "Conditional Adult-Use Dispensary" License for Cannabis?
Temporary Conditional Permits will be available to allow businesses to fulfill the requirements before they can lawfully act as a cannabis cultivator, manufacturer, wholesaler, distributor, retailer, or delivery service. The state is prioritizing the scoring of conditional New Jersey Cannabis License applications over standard annual applications
Do I Need to Lease or Own My Cannabis Retail Store Location Before I Apply?
New Jersey is issuing conditional approval licenses. Conditional licenses allow business operators 120 days to fulfill the requirements of an annual cannabis business license while they are finalizing their application components, such as finding and securing a location for their business and completing construction.
Who Are The Regulators and Key Players for Cannabis In New Jersey?
Cannabis Regulatory Commission (the “CRC”)
The CRC is the governing body responsible for regulating the existing Medicinal Cannabis Program, as well as the new recreational cannabis program in New Jersey for adults 21 years and older. The CRC is responsible for establishing and regulating a safe and equitable medical and adult-use cannabis industry in NJ. The CRC is charged with issuing licenses for medicinal and recreational cannabis business operations in New Jersey.
The Office of Minority, Disabled Veterans, and Women Business Development
OMDVWBD was established by the CREAMM Act to promote and facilitate a diverse cannabis market in New Jersey. The Office provides outreach to underserved populations with information about the Cannabis Regulatory Commission and its programs.
The New Jersey Division of Taxation
The Division of Taxation is responsible for administering New Jersey Sales and Use Tax and the Social Equity Excise Fee (SEEF) for cannabis. The Division of Taxation does not have oversight of locally imposed transfer taxes. A municipality may establish a Local Transfer Tax on the sale of cannabis for licensed establishments located within the community.
What Is The CREAMM Act And What Does It Allow?
New Jersey’s “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization” Act legalizes personal use of cannabis for recreational use, decriminalizes possession of small amounts of cannabis and cannabis products (i.e. dried flower, hashish, shatter, edibles, etc.), and removes “marijuana” as a Schedule I drug.
The CREAMM Act are regulations that authorize the NJ Cannabis Regulatory Commission (CRC) to expand and further develop the current Medicinal Cannabis Program, as well as develop, regulate, and enforce the rules and activities associated with recreational cannabis for adults 21 years and over.
- The Act requires that State courts and law enforcement expunge people’s records for certain prior marijuana-related offenses;
- The Act directs the State Legislature to reinvest revenue from cannabis sales to initiatives such as financial support for individuals in Impact Zones; and
- The Act requires the Cannabis Regulatory Commission to adopt minimum standards to protect the health of medicinal patients and recreational consumers.
How Many Lawful Cannabis Retail Stores Are Currently Operational in New Jersey?
Eleven cannabis dispensaries across New Jersey opened for adult-use sales for the first time on April 21, 2022.
Additional applications are currently being accepted and will be awarded on a rolling basis.
How Much Does a Cannabis License Cost in New Jersey in 2023?
To apply for a cannabis license in New Jersey, licensing fees range from $200 to $50,000. For specific information on licensing fees, refer to the CRC Fee Schedule.
How Much Does it Cost to Open a Dispensary in NJ?
The cost of opening a New Jersey dispensary starts at around $200,000. This includes expenses for leasing, site development, and other setup costs. Licensing fees are $10,000 for a standard dispensary and $1,000 for a microbusiness dispensary, with lower application and certification fees for standard dispensaries.
Can Anyone Open a Dispensary in NJ?
In New Jersey, opening a dispensary requires meeting certain residency criteria. For any cannabis business license, at least one owner must have resided in New Jersey for a minimum of two years before applying. Microbusinesses have stricter rules, needing all owners to be New Jersey residents for at least two years. Also, over half of the microbusiness’s owners and employees must be from the local area. Additionally, a valid business registration with the NJ Department of the Treasury is necessary.
Are Edibles Legal in New Jersey?
Yes, edibles are legal in New Jersey, but only when purchased from a licensed retailer. To produce edibles, a business must obtain a Class 2 Manufacturer license. This license permits the manufacturing, preparing, and packaging of cannabis items, including edibles, and allows for selling these products to other cannabis manufacturers, wholesalers, or retailers, but not directly to consumers.
