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The New Jersey Cannabis Regulatory Commission (CRC) is the entity that receives applications, issues licenses and is responsible for compliance and enforcement action in the state of New Jersey. 

What Does New Jersey’s Class 4 Cannabis Distributor License Allow?

The Class 4 Distributor License allows the holder to transport bulk cannabis and/or cannabis products between cultivators, manufacturers, and retailers in New Jersey. It is important to note that distributors transport cannabis products between other licensed facilities, and not directly to customers. As a result, Class 4 License holders cannot obtain a Class 6 Delivery License. Because of this, Class 4 licenses are issued specifically for the premises from which the operation is conducted.  

Parties with previous experience in logistics, distribution, storage, and supply chain management might be more inclined to submit a Class 4 Distributor Application because of similarities between operation requirements. Interested parties could include, alcohol and tobacco distributors, medical supply distributors, logistics and freight companies, agriculture supply distributors, food and beverage distributors, specialty couriers and secure transport services. However, applications will still be open to anyone meeting the eligibility criteria regardless of previous experience.  

More Info

  • A Class 4 Distributor License holder can obtain a Class 2 Wholesaler License but cannot obtain a Class 6 Delivery License. 

 

  • The license allows the storage of cannabis products on a temporary basis provided they are solely intended for distribution and not retail sale or delivery. 

 

  • Social Equity and Diversely-Owned Businesses were given an exclusive 90-day period to apply for Classes 3, 4 and 6 which lasted from September 27, 2023 to December 26, 2023. The CRC is continuing to receive applications from Social-Equity Businesses for another 90-day period lasting from December 27, 2023 to March 26, 2024.  Applications from Diversely-Owned Businesses are being accepted during the same 90-day period from December 2023 to March 2024.

 

  • Starting March 27, 2024, the application process for a Class 4 Distributor License will be available to all applicants.  

Requirements for Operating a Cannabis Distribution Business with a Class 4 License

Premises Requirements

• Unusable cannabis and cannabis items must be stored solely at the licensed cannabis business premises in an enclosed indoor, locked area or facility.

• Access to the locked area or facility is restricted to individuals holding Cannabis Business Identification Cards who are acting on behalf of the cannabis distributor within their authorized roles.

• Storage areas must be well-lit, ventilated, and maintained in a clean and sanitary condition.

• Heating and air conditioning systems must be regulated to ensure products are stored within the appropriate temperature range.

• If a cannabis distributor does not store unusable cannabis and cannabis items, it must maintain an administrative office at the licensed location for conducting bulk transportation operations, and it is not required to maintain a cannabis business premises.

Authorized Activities

• Transport unusable cannabis between cannabis cultivators and cannabis manufacturers within the state of New Jersey.

• Transport cannabis items between cannabis establishments in the state of New Jersey.

• Possess and engage in temporary storage of cannabis or cannabis items as necessary to facilitate transportation activities.

• Dispose of or destroy cannabis items.

Limitations for Class 4 Cannabis Distributors

• Prohibited from cultivating or packaging cannabis.

• Cannot produce, manufacture, or package cannabis products.

• Cannot transport, transfer, distribute, supply, or sell cannabis, cannabis items, paraphernalia, or related supplies to consumers.

• Not allowed to purchase or resell cannabis or cannabis items.

• Cannot transport or possess cannabis or cannabis items outside the State of New Jersey.

Additional Regulations

• Cannabis distributors are only allowed to transport usable cannabis and cannabis products that comply with packaging and labeling regulations.

• Microbusiness cannabis distributors have no limit on the amount of cannabis plants or cannabis items they can possess for transportation purposes each month.

Record Keeping

• Maintain complete and accurate records of all cannabis and cannabis items transported securely.

• Records should include details such as the date of the transport trip, the cannabis or cannabis items transported, the sending and receiving cannabis businesses, and any additional information required by regulations.

• Records must be preserved for four years and can be stored at the cannabis business premises, administrative office, or an off-site facility. They can be kept in either written or electronic format.

Reporting Requirements

• Collect and report certain statistical data to the Commission on an annual basis.

• Reported data should include the number of ounces of usable cannabis transported, the number of ounces of cannabis products transported, the total number of cannabis item transport trips, and any other information requested by the Commission for the effective administration and enforcement of regulations.

Storage of Cannabis Items

• If a cannabis distributor stores cannabis items, all items must be kept in an enclosed indoor area that is securely locked.

• Access to this area is restricted to authorized personnel.

• If a cannabis distributor does not store cannabis items, these items must only be possessed by the distributor at the sending and receiving cannabis businesses and in the delivery vehicle.

Distributor Inventory

A cannabis distributor’s inventory, whether in transport or storage, should match the transactions between the sending and receiving cannabis businesses. The distributor cannot acquire cannabis items except during secure transport trips.

What is the Application Process for the Class 4 Distributor License?

General Eligibility Criteria:

Residency Requirement: At least one individual heavily involved in the license application needs to be living or previously have lived in New Jersey for a minimum of two years at the time of application. 

Age Requirement: Anyone with financial interest and/or who has the authority to make decisions listed on the application must be 21 years of age or older. 

Regulatory Compliance: Applicants must meet all the requirements established by the CRC and agree to being fingerprinted in accordance to state and federal laws, rules, and regulations.   

Criminal Background Checks & Conviction Consideration: Written consent for criminal history record background checks must be provided by any owner that has the authority to make controlling decisions who is holding more than a five percent investment interest or is a member of a group that holds more than a 20 percent investment interest.  

The CRC may approve an applicant after conducting the background check and reviewing any previous convictions. Following background checks, the commission will provide written notice of qualification or disqualification.  

What is the Cost of a Class 4 Cannabis Distributor License?

Application and Certification Fees

Obtaining a Class 4 Distributor License requires applicants pay the following fees as determined by the business structure and license type. 

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 
  • Licensing Fee: $3000 

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 
  • Licensing Fee: $1000 

Consultation and Professional Services

At CannDelta, our primary goal is assisting entrepreneurs as they maneuver through the intricate process of establishing a cannabis venture. We achieve this by maintaining a strong familiarity with the New Jersey Licensing Process, the municipalities, and the regulatory commission.   

CannDelta has successfully launched numerous cannabis businesses across The United States including, retail dispensaries, cultivation facilities testing and research facilities, and many others. Here’s why our expertise is crucial to your business’ success: 

Proven Track Record: The CannDelta team showcases a history of driving success for cannabis ventures. We offer a distinctive blend of industry-specific knowledge and practical experience that stands unrivaled. 

Cost and Time Efficiency: Our services help clients save significant amounts of money and time. We specialize in guiding you around common pitfalls that could create unnecessary expenses and cause delays in your establishment. 

Expertise in Regulatory Navigation: Navigating and adhering to regulations can be daunting. Our team excels in steering businesses through these complexities, ensuring compliance and operational smoothness. 

Customized Business Strategies: At CannDelta, we strongly provide tailored solutions. We adapt our guidance and strategies to align with the unique needs and circumstances of each client, thereby ensuring the best possible outcomes. 

Risk Management: We offer ongoing support to identify and mitigate potential risks, thereby securing the long-term prosperity of your cannabis cultivation enterprise. 

Why Partner with CannDelta?

By choosing CannDelta you’re establishing a partnership with a team that is deeply committed to your success. Our extensive experience across New Jersey equips us with a distinctive perspective on the changing dynamics of the cannabis industry. 

We transcend the role of consultants; we serve as your strategic partners, committed to assisting you at every phase of your business journey. 

 

Connect with CannDelta Experts


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