In New Jersey, business entities or individuals looking to distribute marijuana must have a Class 4 Cannabis Distributor license according to Senate Bill 21, known as New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act. Applicants may apply to the New Jersey Cannabis Regulatory Commission (CRC) to get this license. The CRC is responsible for regulating the licensure of marijuana business entities, including business entities involved in distributing marijuana in New Jersey. The CRC is authorized to determine the number of distributor licenses available to distributors. Hence, the CRC can call for new license applications at its own discretion. An applicant seeking a Class 4 Cannabis Distributor license may request a full, annual, or conditional license. A conditional license is a short-term license that is first issued to an applicant, then replaced with a full license. An applicant may also either register as a microbusiness or a standard business. A microbusiness is a business with a smaller footprint than a standard cannabis business regarding its business operations, capacity, and quantity of product.
The CRC decides and regulates the procedure for licensure. It has established a point scale for scoring Class 4 Cannabis Distributor license applications; hence, simplifying the application process. The CRC decides the point classification, the number of points, and the point distribution system. When assessing applications, the CRC also reviews applicants’ financing plans, environmental plans, operating plans, safety and security plans, and others. The CRC is authorized to adopt a modified or completely new point system for any conditional license application. The CRC prioritizes applications from impact zones or municipalities adversely impacted by past marijuana enforcement activity, unemployment, or poverty during application. Similarly, an applicant who employs at least 25% of their employees from impact zones may also have a high chance of getting a license. The CRC may also consider as an added advantage whether the applicant took part in a collective bargaining agreement with a bona fide labor organization representing or actively seeks to represent cannabis workers in New Jersey or other states.
The CRC requires that a Class 4 Cannabis Distributor license applicant is a state resident of at least five years. An applicant must also be a significantly involved person. This means that they must hold a minimum of 5% investment interest or must be a member of a group that holds a minimum of 20% investment interest and is authorized to make controlling decisions. Generally, the CRC issues licenses covering distribution, cultivation, manufacturing, retail sale, delivery, wholesale, and testing.
In New Jersey, the Class 4 Cannabis Distributor license enables distributors to transport marijuana items in bulk intrastate from one licensed marijuana establishment to another. These marijuana items may include marijuana products that have been properly processed, tested, packaged, sealed, and labeled. Holders of the Class 4 Cannabis Distributor License may also store the marijuana or marijuana products briefly if necessary to fulfill their duties in transporting the goods. Licensed distributors are allowed to transport marijuana between establishments licensed for cannabis cultivation, manufacturing, distribution, and retail. The law does not specify whether distributors can move marijuana products to testing facilities.
No. New Jersey only has an all-encompassing distribution license that authorizes the holder to distribute marijuana between marijuana establishments.
The New Jersey Cannabis Regulatory Commission (CRC) is in charge of issuing distribution licenses in the state. Business entities involved in the distribution of marijuana may apply to the Cannabis Regulatory Commission. The CRC also issues licenses for marijuana cultivation, manufacture, and sale in the state. New Jersey Administrative Code 1730 Personal Use Cannabis lays out the necessary documents to be submitted when an Alternative Treatment Center (ATC) is applying for a Class 4 Cannabis Distributor license. They include:
The Cannabis Regulatory Commission will also require the applicant’s information and some documents created in the planning phase; including:
When the documents have been submitted, the application will be processed. However, the Cannabis Regulatory Commission may request any additional information required to determine whether to accept the ATC’s certifications after the initial submission process. The CRC has not released a Class 4 Cannabis Distributor license application form, but it will be uploaded on the Cannabis Regulatory Commission website when available. Queries may be directed to the CRC via email at firstname.lastname@example.org.
An Alternative Treatment Center may apply to the CRC for expansion. However, in addition to the requirements mentioned above, the CRC will evaluate the following:
When an ATC’s application has been reviewed, the CRC may issue a written notice of its approval to an expanded ATC if:
The Cannabis Regulatory Commission mandates that an Alternative Treatment Center seeking expansion requests an onsite assessment after completing any necessary construction or preparation of the expanded ATC. The assessment is to verify that the premises, operations, and procedures align with the ATC’s application and comply with the Act. The CRC shall communicate the denial to the ATC in writing if the application is denied after the assessment. It shall include:
If an application for an expanded ATC is denied, the CRC the applicant may seek a judicial review by the Appellate Division of the Superior Court.
The fee schedule does not specify how much distributor licenses cost in New Jersey. However, the general application fees are as follows:
The payment of an approval fee will be required after the CRC approves an application, but this fee will not be required if the application is denied. The submission fee is to be paid when the application is being submitted, and it will be refunded if an individual’s application is denied. After the first year of licensure, an applicant can renew their license by paying the actual amount of the application fee, excluding the approval and submission fee.
No, the law does not make provision for marijuana distributors to get other marijuana licenses in the state.