The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act came into force in February of this year. It made recreational cannabis use legal for those over 21 years of age, with some restrictions.
Hence, the market is ripe for investment, and, as is evident in other states that legalized it earlier, there is considerable money to be made from the sale of recreational cannabis.
Who regulates cannabis licensing in the state?
The Cannabis Regulatory Committee (CRC) will issue licenses, although it is the municipalities themselves that control how many cannabis businesses can operate in their jurisdiction and where they can locate. The CRC will not give you a license that runs contrary to a municipality’s wishes.
What license do I need to open a cannabis dispensary?
Opening a recreational cannabis dispensary requires a Class 5 retailer license. Note, this only permits you to “purchase cannabis and cannabis products from licensed cultivators, manufacturers, and/or wholesalers for sale to consumers in a retail store.”
If you wish to do anything more than that, such as cultivate your own product, or distribute to other retailers, you would need the appropriate additional licenses.
The CRC is currently receiving and reviewing applications. It has not yet set a final date for applications nor a limit to the total number of retailer licenses it will issue but it pays to be safe and act soon.
All major law changes come with teething problems, and the CRC will likely revise the licensing rules and regulation with time. Getting legal help to file your application and ensure you stay abreast of current regulations will give your cannabis business the best chance of success.
The information contained in this publication should not be construed as legal advice. Should further analysis or explanation of the subject matter be required, please contact the lawyer with whom you normally consult. No attorney-client relationship is created by this post.
For more information or advice concerning your corporate and regulatory compliance efforts, please contact Daniel TeJumson or any member of the firm’s corporate and securities regulatory practice.