US (NJ): Cannabis Commission gives update on regulatory issues

Executives from the state's Cannabis Regulatory Commission (CRC) at the NJ League of Municipalities provided an overview of the newly adopted regulations to implement the legalization of adult-use cannabis. The CRC has the power to establish the requirements for applying for a license, set fees, enforce restrictions to protect public health and safety, and impost sanctions for businesses that violate the rules, including fines, suspension, or revocation of a license.  

Among the topics covered at the presentation were application timetables and fees, how to ensure equity in establishing legal cannabis businesses, the legality of delivery services, and other topics. 

The application process will be continuous rolling application acceptance and no deadlines, nor will there be a limit on the number of licenses (except a limit of 37 cultivation licenses prior to Feb.22, 2023, and municipal limitations). There are several types of cannabis businesses: cultivators (annual licensing fee: $5,000 – $50,000), manufacturers (annual fee: $20,000 – $30,000), wholesalers, distributors, retailers (fee: $10,000), delivery businesses, and testing laboratories (fee: $4,000). Class 1 cultivator, class 2 manufacturer, and testing lab applications open December 15, 2021, while class 5 retailer applications open on March 15, 2022.

All legal cannabis operators must receive a license from the NJCRC to conduct cannabis business in New Jersey. Fees are based on the commission’s cost to process and review applications and enforce compliance, with consideration given to the proposed cannabis business’s class, the size of proposed operations, and the business’s anticipated market share of the industry.

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