New Jersey Marijuana Cultivation License

Does New Jersey Require Marijuana Growers to Obtain Cultivation License?

Yes, marijuana growers in New Jersey are required to obtain cultivation licenses, known as grower licenses in New Jersey. Grower licenses may be obtained from the New Jersey Cannabis Regulatory Commission (CRC). New Jersey Senate Bill 21, New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act requires growers to register with the CRC before cultivating marijuana in the state. The registration involves obtaining a Class 1 Cannabis Grower license. The Cannabis Regulatory Commission regulates the number of grower licenses available to each class of prospective licensees based on market demands. The CRC is authorized to request new license applications when it deems it necessary. It is also responsible for reviewing applications for full, annual, or conditional licenses. A conditional license is issued and then subsequently replaced with a full license. An applicant may either apply as a standard business or a microbusiness. The CRC issues at least 35% of the total number of licenses as conditional licenses and at least 10% of the total number of licenses and conditional licenses to microbusinesses.

The CRC reviews and scores Class 1 Cannabis Grower license applications based upon a point scale. The CRC determines the number of points, the point categories, and the point distribution system by regulation. The application review process is subject to some required criteria for consideration in the point scale, such as an analysis of an applicant's financing plan, cultivation plan, environmental plan, operating plan, and safety and security plans. The CRC’s point system could be modified, or a different point system used for any conditional license application. The CRC may consider whether the applicant is from an impact zone or municipality adversely impacted by unemployment, poverty, or past marijuana enforcement activity. Whether the applicant participated in a collective bargaining agreement with a bona fide labor organization that represents or actively seeks to represent cannabis workers in New Jersey or other states may also be considered.

In addition, the CRC reviews and favors the application of an applicant who is a state resident of not less than 5 years and a significantly involved person. A significantly involved person is someone who holds a minimum of 5% investment interest or is a member of a group that holds a minimum of 20% investment interest and has the authority to make controlling decisions. Note that an applicant who employs at least 25% of their employees from impact zones may stand a better chance of getting a license than those who do not.

What Are the Different Types of Cultivation Licenses in New Jersey?

Cultivators of marijuana in New Jersey are required to obtain the Class 1 Cannabis Grower license. This license authorizes the holder to possess a cannabis cultivation facility in a specific location. However, they are first required to obtain local approval from the municipality where they will operate. New Jersey issues eight different types of cultivation licenses, depending on canopy size. The 8 types of cultivator licenses include:

• Microbusiness Cultivator: mature cannabis plant canopy area up to 2,500 square feet
• Tier I Cultivator: mature cannabis plant canopy area up to 10,000 square feet
• Tier II Cultivator: mature cannabis plant canopy area ranging from 10,000 square feet to 25,000 square feet
• Tier III Cultivator: mature cannabis plant canopy area ranging from 25,000 square feet to 50,000 square feet
• Tier IV Cultivator: mature cannabis plant canopy area ranging from 50,000 square feet to 75,000 square feet
• Tier V Cultivator: mature cannabis plant canopy area ranging from 75,000 square feet to 100,000 square feet
• Tier VI Cultivator: mature cannabis plant canopy area ranging from 100,000 square feet to 150,000 square feet
• Alternative Treatment Center (ATC) Cultivator: mature cannabis plant canopy area up to 150,000 square feet

Cultivators will be required to cultivate in a secure facility or property. They can grow indoors or outdoors, but a municipality will only allow outdoor cultivation when explicitly approved.

Who Can Grow Marijuana in New Jersey?

New Jersey mandates that persons interested in growing marijuana be at least 21 years old and registered with the Cannabis Regulatory Commission. The registration will entail them getting a Class 1 Cannabis Grower license. However, persons previously convicted of drug-related crimes will not be allowed to obtain marijuana grower licenses. They will also not be allowed to own, operate, or work in a marijuana farm. Home cultivation of marijuana or cultivation of marijuana without a grower’s license is considered a crime in the state, and it is punishable by the following:

• A sentence of 3 to 5 years in prison and a maximum fine of $25,000 for the cultivation of 1 ounce to less than 6 pounds
• A 2nd-degree crime that results in a sentence of 5 to 10 years in prison and a maximum fine of $150,000 for the cultivation of 6 pounds to less than 25 pounds (between 10 and 49 plants)
• A sentence of between 10 and 20 years imprisonment and a maximum fine of $300,000 for the cultivation of 25 pounds or more than 50 plants is a 1st-degree crime.

Senator Vin Gopal, D-Monmouth, proposed Senate Bill 3582 on March 22, 2021. This bill will allow adults aged 21 years or over to cultivate up to six plants of cannabis for recreational use and up to 10 for medical use in their homes, with a maximum of 12 plants per household. However, this bill is yet to be approved as of August 2021.

How to Get a Marijuana Cultivation License in New Jersey

The New Jersey Cannabis Regulatory Commission regulates marijuana cultivation, manufacture, and sale in the state. According to the New Jersey Administrative Code 1730 Personal Use Cannabis, Alternative Treatment Centers (ATC) applying for grower’s licenses from the CRC will be required to provide the following:

• A letter of intent informing the CRC of the licenses sought by the ATC
• Municipal approval for a grower’s license, which shall include:
  • Zoning approval from the municipality’s governing body, or a letter from the highest-ranking municipal official, as applicable, that authorizes the ATC to cultivate cannabis items at the ATC’s current premises;
  • The ordinance(s) adopted by the municipality authorizing the operation of a Class 1 Cannabis Grower license being sought by the ATC. In the absence of any, a statement declaring that there are no municipal ordinances prohibiting the Class 1 Cannabis Grower license and showing that all classes of licenses are allowed pursuant to N.J.S.A. 24:6I-45 may also be provided; and
  • An attestation by the ATC that, as a condition of licensure, it shall conform to all restrictions on the location, mode, and time of operation of cannabis cultivation businesses established by the municipality.
• A certification to the CRC that the ATC has adequate quantities of medical cannabis available to meet the reasonably expected needs of registered qualifying patients
• An attestation a bona fide labor organization signed indicating that the ATC has joined a labor peace agreement with such bona fide labor organization.
• A certification to the CRC that the ATC shall not make operational changes that will limit access to medical cannabis for existing and prospective qualifying patients to run a cannabis business. The certification is required to include a detailed plan for prioritizing and meeting the needs of registered qualifying patients.
• A list of owners, principals, financial sources, management services contractors, and vendor-contractors associated with the proposed cultivation of cannabis items. Note that new owners, principals, financial sources, management services contractors, and vendor-contractors may be required to comply with the provisions of N.J.A.C. 17:30-7.11, 7.12, and 7.13.
• A criminal history background check of each owner, principal, employee, or volunteer associated with the proposed cannabis business. These individuals shall also bear the costs for this procedure as determined by the Division of State Police. Applicants shall be disqualified if the background check reveals that they have been previously convicted of drug related crimes, fraud, etc.

The CRC will require the applicant’s information and some documents created in the planning phase. These include:

• Articles of incorporation/by-laws - background of principals, board members, and owners
• Research contributions
• Financing plan
• Cultivation plan
• Community engagement plan
• Environmental impact plan
• Quality control and quality assurance plan
• Labor compliance plan
• Minority-owned, women-owned, or veteran-owned business certification
• Workforce and job-creation plan
• Labor Peace Agreement

The CRC is allowed to request any other information deemed relevant in determining whether to accept the ATC’s certifications may also be required.

Note that there is no Class 1 Cannabis Grower license application form available at the moment because cultivation licenses are currently not being issued. However, the Cannabis Regulatory Commission will post a notification on its website when applications begin. For more information and inquiries, send an email to crc.info@crc.nj.gov.

The CRC assesses the following when determining whether to accept the Alternative Treatment Center’s certifications:

• Qualifying patient enrollment at the ATC;
• Total qualifying patient enrollment in the statewide medical cannabis program;
• Statewide sales of medical cannabis and medical cannabis products, and sales at the ATC;
• Statewide inventory and inventory of the ATC;
• The total medical cannabis canopy required to serve the total number of qualifying patients in the medical cannabis program on an ongoing basis;
• The current medical cannabis canopy of the ATC;
• The total medical cannabis canopy needed to serve the ATC’s qualifying patients on an ongoing basis; and
• The operational plans and capacity of the ATC to maintain or expand medical cannabis access for qualifying patients.

After examining an ATC’s application, the CRC may issue a written notice of its approval to an expanded ATC if:

• The ATC has submitted complete and accurate and verifiable information, as determined by the CRC;
• The CRC accepts the ATC’s certifications; and
• The ATC pays the conversion fee

Following the completion of any necessary construction or preparation of expanded ATC, the ATC shall request an onsite assessment. This will be done to determine whether its premises, operations, and procedures are consistent with its application and compliant with the Act. However, if an expanded ATC application is denied, the CRC shall provide the denial to the ATC in writing, which shall include:

• Notice of the denial of the expanded ATC wherein a specific reason for the denial will be provided
• The opportunity to request an administrative hearing within 45 days after the date of the denial.

The CRC’s final decision on an expanded ATC is considered a final agency decision, although it may be subject to judicial review by the Appellate Division of the Superior Court.

How Much Do Marijuana Cultivation Licenses Cost in New Jersey?

The fee schedule for all cannabis grower licenses in New Jersey is as follows:

• Tier I – $5,000
• Tier II – $10,000
• Tier III – $20,000
• Tier IV – $30,000
• Tier V – $40,000
• Tier VI – $50,000
• Microbusinesses: - $1,000
• Medical Cannabis Cultivator Expansion – $400,000
• Expanded ATC Certification Fee for Medical Cannabis Cultivator Expansion – $400,000

Licensing fees are due upon application approval and for each year an application is renewed. The licensing fee for the first year of operation is reduced by the amount paid in application submission and approval fees.

• The application submission fee an annual license applicant pays for a standard business is $400, while the approval fee is $1,600.
• The application submission fee an annual license applicant pays for a microbusiness is $200, while the approval fee is $800.
• The application submission fee a conditional license applicant pays for a standard business is $200, while the approval fee is $800.
• The application submission fee a conditional license applicant pays for a microbusiness is $100, while the approval fee is $400.
• The conditional conversion submission fee a conditional license applicant pays for a standard business is $200, while the approval fee is $800.
• The conditional conversion application fee a conditional license applicant pays for a microbusiness is $100, while the approval fee is $400.

Submission fees are required to be paid at the time an application is submitted. An applicant will be required to pay approval fees when the CRC approves the application. If an applicant is denied approval for licensure, they will not be required to pay approval fees. Expanded ATC Certification Fees are to be paid at the time the ATC submits its required certifications to the CRC.

Can Licensed Marijuana Cultivators Hold Other Cannabis Licenses in New Jersey?

Yes, although this depends on the application phase when the licensee gained their business license. Phase 1 is the 24-month period following February 22, 2021, and phase 2 is the 24-month period after the first phase. During the 24-month period following February 22, 2021, a license-holder and its owners and principals may hold one cannabis cultivator and one cannabis manufacturer license at the same time. Also, a license-holder and its owners and principals that have an expanded ATC license may hold a cannabis cultivator for each satellite dispensary.

After the end of the 24-month period following February 22, 2021, a license-holder and its owners and principals may hold one cannabis cultivator, one cannabis manufacturer, one cannabis retailer, and one cannabis delivery service license. A license-holder and its owners and principals with an expanded ATC license may also concurrently hold a cannabis cultivator license, a cannabis manufacturer license, a cannabis retailer license, and other cannabis retail licenses for each satellite dispensary.