New Jersey has released their cannabis laws for the license application process. You may be wondering how to decipher these complex requirements. For instance, which license should you apply for? Conditional, Annual, or Conversion?
What is an Annual Application?
The annual license is the primary which demands all information required by §17:30-7.10 and the desired municipality. In addition, annual licenses require applicants to submit a descriptive application. The details of the application includes the proposed site for the business (owned or leased), municipal and zoning approval. Applicants must also submit an operating summary plan detailing their experience, history, and knowledge of operating a cannabis business.
What is a Conditional License Application?
The conditional license in the cannabis laws is New Jersey getting social equity/low income applicants through the door. As a result, the conditional is a preliminary application for groups who may not have cannabis industry experience or real estate. The law will require conditional applicants to submit organizational and personal information ensuring they are compliant. Applicants must also get a criminal background check, provide a business plan, as well as a regulatory compliance plan. It is a provisional award that gives the applicant 120 days to become fully licensed. They must satisfying the remaining requirements for full (annual) licensure within this time.
All owners with decision-making authority will need to provide proof of income from the previous year. Their income may not exceed $200,000 in the preceding tax year, or $400,000 if filing jointly.
Conditional licenses are given priority review, after social equity, diversely owned, and impact zone-businesses.
What is a Conditional License Conversion Application?
After an applicant has received their conditional license, a conditional license conversion application is next to be complete. Above all, an approved conditional license begins the conditional license phase (120 days) where applicants are required to:
- Firstly, gain control of their real estate;
- Secondly, get approval from their local municipality;
- Thirdly, develop and submit a conditional license conversion application.
Requirements yet to be submitted during the annual license application process will be expected in the conversion application.
How Can Point7 Help?
In conclusion, as experts in the industry we share the details of the newly regulated adult-use market in New Jersey for the cannabis laws. Are you ready to expand your cannabis business into new markets? Reach out to see how Point7 can help your business.
About the Author
Ashley entered the regulated cannabis market in the spring of 2014. She joined one of the largest vertically integrated cannabis businesses in Colorado as the head of marketing, operations and sales. Ashley oversaw day-to-day operations of five dispensaries, a high volume extraction facility. In addition, she managed a 23,000 square foot cultivation facility and 70+ employees. Ashley developed, documented, and implemented the vast majority of the company’s standard operating procedures (SOPs). She also created detailed forecasting models, and calculated the facility’s overall production capacity.