License Applications
The Cannabis Regulatory Commission issues licenses for medicinal and recreational cannabis business operations in New Jersey. Each business requires a license, which must be active and in good standing, to perform any commercial cannabis activity, including:
- Growing cannabis plants
- Storing cannabis and cannabis products
- Making cannabis products
- Transporting or delivering cannabis and cannabis products
- Selling cannabis and cannabis products
- Testing cannabis and cannabis products
We are currently accepting applications for testing laboratories and all categories of adult-use (recreational) cannabis businesses.
CONSUMPTION AREA ENDORSEMENTS: The Licensing portal will begin accepting applications for consumption area endorsements on January 2, 2025.
Application Timeline:
January 2, 2025: Applications open for Social Equity designated retail businesses (owners with cannabis-related convictions or residents of Economically Disadvantaged Areas).
April 2, 2025: Applications open for all other microbusinesses and Diversely-Owned dispensaries (minority-owned, woman-owned, disabled veteran-owned).
July 2, 2025: Applications open for all other Class 5 retail operators.
Fees:
Endorsement application fee: $1,000 total ($200 submission fee + $800 upon approval). Annual licensing fees: $1,000 for microbusinesses and $5,000 for standard businesses.
Application Process:
Applications must be submitted through the designated application portal. Municipal approval is required as part of the approval process.
Review the Notice of Application Acceptance for all requirements and rules.
License applications will be accepted and reviewed on a rolling basis until indicated otherwise. Social Equity Businesses, Diversely-Owned Businesses, Impact Zone Businesses, and applications that receive bonus points will be afforded priority review, scoring, and approval.
Recreational cannabis businesses may integrate vertically. Vertical integration allows operators to hold any combination of a cultivator license, a manufacturer license, a retailer license, and a delivery service license simultaneously or hold a wholesale and a distributor license simultaneously. All recreational license holders can have only one business in each class.
There is no established limit on the number of cannabis business licenses available statewide.
The Notice of Application outlines:
- Eligibility requirements
- Prioritization processes
- Application requirements, including a list of necessary forms and supporting documents
- Scoring methodology
- How approval or denial is determined
Avoiding Cure Letters
No person or entity that completes a cannabis business application, submits all the required document, and meets all requirements is denied a license. Incomplete applications receive a Cure Letter - an opportunity to fix errors with your information or documentation. The time it takes to receive and respond to a cure extends the application review process. It is best to avoid receiving one at all.
- Review the Notice of Application Acceptance
- Utilize all the application support material available on our website.
- Make a list of all the documents your application requires and then check it off to ensure they have all been submitted.
- Ensure that all the documents you upload are clear and legible.
- If you are applying as a Social Equity applicant, be sure to sign and submit a Social Equity Attestation.
The Most Common Reasons for Cure Letters (Things to check before submitting an application)
- Entity Disclosure Form (EDF) Issues: It is essential to provide disclosure forms for license applicants and any related entities providing financial or management support.
- Persons of Interest (POI) issues: Signing the necessary documents, including the statement of truth and waiver of liability, and having them notarized is an essential step to ensure the accuracy of the process. Additionally, you must correctly identify the people involved and provide their Personal History Disclosure (PHD). Finally, ensure you provide all the requested data and complete the PHDs.
- Tax Return issues: To complete your submission, you must provide us with your latest state and federal tax return. If submitting returns from a previous year, you must also provide proof of any extensions obtained.
- Government Identification Issues: Ensure you use valid government IDs that is current at the time of submission.
- Business Certification Issues: Diversely-owned businesses' certification must be up-to-date on New Jersey Selective Assistance Vendor Information (NJSAVI) and in the name of the correct applicant.
- Priority Designation Issues: The documentation must accurately reflect your priority status. Any errors or inconsistencies in the information or documentation will delay the processing of your application.
- Business Registration Documentation Issues: Your formation and business registration certificates must be in the applicant’s name.
- Financial and Management Service Agreement Issues: If you have agreements for financial or management services, it is essential to submit them for review once they are finalized. Failure to submit these agreements will result in processing delays. Include an EDF for financial entities and a PHD for financial individuals.
- Standard Operating Procedure (SOP) Issues: Before submitting your plans or Standard Operating Procedures, it's crucial to refer to the regulations and verify that they are compliant to ensure completeness.
- Site Control Issues: To obtain NJ-CRC approval, you must have local support in the form of a resolution signed by the municipality’s governing body, zoning approval in the form of a letter of approval from a zoning official, and a signed lease agreement. Ensure that the applicant's name and business location is mentioned in the documents.
Applicants who receive a cure letter should, as quickly as they can, make the necessary corrections on the licensing platform, submit any requested paperwork, and resubmit their application. Your application will still be reviewed based on its priority. If, for example, you're a social equity applicant for a microbusiness license and your application is rejected, your resubmitted application will be placed at the end of the highest-priority list, not at the end of the overall queue.
Remember, the NJ-CRC accepts applications on a rolling basis. There is no deadline to beat. Getting your application done right the first time is the fastest way to your cannabis business license.
The CREAMM Act established six (6) classes of licenses for recreational use licensed businesses, described below. Applicants will also be able to can apply for a temporary conditional permit, which allows a business to lawfully act as a cannabis cultivator, manufacturer, wholesaler, distributor, retailer, or delivery service while the business works towards meeting the requirements for a full license. The CRC may also develop an option for a testing service license.
Recreational Use Licenses |
Authorized Activity |
Class 1 Cannabis Cultivator |
Grow recreational use cannabis |
Class 2 Cannabis Manufacturer |
Produce recreational use cannabis |
Class 3 Cannabis Wholesaler |
Store, sell or otherwise transfer, recreational use cannabis items between cannabis cultivators, wholesalers, or retailers |
Class 4 Cannabis Distributor |
Transport cannabis items in bulk between cannabis cultivators, manufacturers, or retailers within the state of New Jersey |
Class 5 Cannabis Retailer |
Purchase recreational use cannabis from licensed cultivators, manufacturers, or wholesalers and sell those items to consumers in a retail store |
Class 6 Cannabis Delivery |
Transport a consumer’s purchases of recreational use cannabis and related supplies from the retailer to that consumer |
Conditional license |
Begin building out operations for the cultivation, manufacture, dispensing, wholesale, distribution, or delivery of recreational use cannabis while working towards meeting the requirements for a cannabis cultivator, manufacturer, dispensary, wholesaler, distributor, or delivery license |
Fee Schedule as PDF - Effective November 20, 2024
APPLICATION & CERTIFICATION FEES | ||||
Conditional License Applicant | Annual License Applicant | |||
Standard Business | Microbusiness | Standard Business | Microbusiness | |
Application Submission Fee | $200 | $100 | $400 | $200 |
Application Approval Fee | $800 | $400 | $1,600 | $800 |
Conditional Conversion Submission Fee | $200 | $100 | n/a | n/a |
Conditional Conversion Approval Fee | $800 | $400 | n/a | n/a |
Cannabis Consumption Area Endorsement Application Submission Fee | $200 | |||
Cannabis Consumption Area Endorsement Application Approval Fee | $800 | |||
Testing Laboratory Application Submission Fee | $400 | |||
Testing Laboratory Approval Fee | $1,600 | |||
Expanded ATC Certification Fee | Medical Cannabis Cultivator Expansion – $400,000 Medical Cannabis Manufacturer Expansion – $300,000 Medical Cannabis Dispensary Expansion – $100,000 Vertically Integrated ATC with 1 dispensary – $800,000 Vertically Integrated ATC with 2 dispensaries – $900,000 Vertically Integrated ATC with 3 dispensaries – $1,000,000 |
NOTE: Submission fees are due at the time an application is submitted. Approval fees are due upon Commission approval for licensure to operate. Applicants who are denied approval for licensure are not required to pay approval fees. Expanded ATC Certification Fees are due upon Commission approval of the ATC's expansion.
LICENSING FEESΔ | ||
Standard Business | Microbusiness | |
Class 1 Cannabis Cultivator† | Tier I – $5,000 Tier II – $10,000 Tier III – $20,000 Tier IV – $30,000 Tier V – $40,000 Tier VI – $50,000 |
$1,000 |
Class 2 Cannabis Manufacturer‡ | Up to 10,000 sq ft – $20,000 More than 10,000 sq ft – $30,000 |
$1,000 |
Class 3 Cannabis Wholesaler | $10,000 | $1,000 |
Class 4 Cannabis Distributor | $3,000 | $1,000 |
Class 5 Cannabis Retailer | $10,000 | $1,000 |
Class 6 Cannabis Delivery Services | $3,000 | $1,000 |
Cannabis Consumption Area Endorsement Initial or Renewal Licensing Fee | $5,000 | $1,000 |
Testing Laboratory Licensing Fee | $4,000 |
Δ Licensing Fees are due upon application approval and each year thereafter when submitting a renewal application. The licensing fee for the first year of operation is reduced by the amount paid in application submission and approval fees.
Example: The licensing fee for a Testing Laboratory in the first year would be $2,000 ($4,000, less $400 for application submission fee and $1,600 for application approval fee). In the second year and every year thereafter, the Testing Laboratory would pay $4,000 for the licensing fee.
† Cultivator Licensing Fees apply to all cannabis businesses with a Class 1 Cannabis Cultivator License, including microbusinesses and Expanded ATCs:
Tier I = Mature cannabis plant grow canopy area greater than 2,500 sq ft but no more than 10,000 sq ft
Tier II = Mature cannabis plant grow canopy area greater than 10,000 sq ft but no more than 25,000 sq ft
Tier III = Mature cannabis plant grow canopy area greater than 25,000 sq ft but no more than 50,000 sq ft
Tier IV = Mature cannabis plant grow canopy area greater than 50,000 sq ft but no more than 75,000 sq ft
Tier V = Mature cannabis plant grow canopy area greater than 75,000 sq ft but no more than 100,000 sq ft
Tier VI = Mature cannabis plant grow canopy area greater than 100,000 sq ft but no more than 150,000 sq ft
‡ Refers to the square footage of the entire cannabis business premises, not solely the area in which manufacturing or processing is taking place.
CHANGE FEES (due at the time the change application is submitted) | ||
Standard Business | Microbusiness | |
Location Change* | $10,000 | $1,000 |
Facility Capacity or Physical PlantChange** | $2,000 | n/a |
Majority Ownership Change*** | $20,000 | $20,000 |
Microbusiness Conversion ApplicationSubmission Fee | n/a | $200 |
Microbusiness Conversion ApprovalFee | n/a | $800 |
* Location Change fees apply any time a cannabis business seeks to move the location any of its licensed premises. If a cannabis business has more than one facility or licensed premises, the license-holder must pay the change fee for each facility or premises that will be relocated.
** Facility Capacity or Physical Plant Change fees apply any time a license-holder seeks to change or modify the cannabis business’ cultivation capacity and move to a different cultivation production management tier. Microbusiness that are converting to a Standard Business do not incur a Facility Capacity or Physical Plant Change fee; after conversion, such businesses will be subject to the licensing fee for a Standard Business of their class.
*** Majority Ownership Change fees apply any time a license-holder seeks to transfer more than 50% of ownership interest in the license-holder to another person or entity.
OTHER FEES | |
Cannabis Business Identification Card Issuance Fee (including replacement cards) | $25 |
Background Investigation Fee | Financial Source – $1,000 Management Services Contractor – $1,000 For each owner or principal of a cannabis business or testing laboratory – $250 per person Conditional license applicants, conditional license-holders, andSocial Equity Businesses are exempt from these fees. |
Before you Apply
- Decide what kind of business you want to establish.
- Cultivator – grow cannabis
- *Manufacturer – produce cannabis goods
- *Wholesaler – store, buy and/or sell bulk cannabis and cannabis products
- *Distributors – transport bulk cannabis and cannabis products
- Retailer – purchase cannabis and cannabis products from licensed cultivators, manufacturers, and/or wholesalers for sale to consumers in a retail store
- *Delivery – transport retail purchased cannabis and cannabis products to consumers
- Diversely-owned business – certified minority-owned, woman-owned, disabled veteran-owned
- Social Equity business – owned by people who have lived in an Economically Disadvantaged Area
- Impact Zone business – located in an Impact Zone, owned by people from an Impact Zone, or employing residents of Impact Zones
- Conditional License – interim status that gives applicants 120 days to find site, secure municipal approval, and apply for conversion to annual license
- Microbusiness – 10 employees or less and 2500 square feet or less of operation space
- Look into the municipal regulations regarding cannabis business where you intend to establish your business
- Determine whether you qualify as a priority applicant
- Check off all the items on the pre-application check list
- Read through the Application Guide and review the Application Platform demo video.
*Recreational cannabis businesses
Applying for a License & Opening a Cannabis Business FAQs
- Personal History Disclosure for all persons of interest
- Entity Disclosure Forms for the license applicant entity and any entities of interest on the application
- Signed affidavits, releases, and waivers completed by an individual authorized to sign on behalf of the license applicant
- Social Equity Business attestation, if seeking to apply as a Social Equity Business
All application support documents must be submitted electronically via the New Jersey Adult Use Licensing Application System. Always retain document originals in case they are requested by the CRC.
It is an Entity Disclosure Form filled out on behalf of the license applicant entity.
Please download and fill out the most recent forms from our website when possible. However, if you have already filled out a version that was previously made available on the CRC website it will be accepted. The CRC will continually update and improve our forms and application system. If there are minor technical errors they will be corrected and new forms released regularly.
All application support documents must be submitted electronically via the New Jersey Adult Use Licensing Application System. Always retain document originals in case they are requested by the CRC.
A Project Labor Agreement (PLA) is only required if an applicant wishes to qualify for bonus points. If you do not wish to submit a PLA as part of your application upload a blank document to meet the application platform's requirement for submission.
On the license application platform, an applicant is required to enter all “Persons of Interest,” which is defined as any person substantially involved in the financing, operations, or management of a license applicant or license-holder and includes owners, principals, management services contractors, and financial sources but does not include passive investors, employees, or volunteers. The platform requires that the “Persons of Interest” ownership percentage reach a total of 100% prior to submission. Although passive investors (defined as financial sources with less than a 5% ownership interest) are not considered “Persons of Interest,” the applicant is required to account for any percentage of passive investor ownership by attributing it to an entity listed on the licensing application platform. All passive investors must be disclosed under Item 8 on the Entity Disclosure Form.
Pursuant to N.J.A.C. 17:30-7.10, applicants for annual cannabis licenses must submit a business and financial plan as part of the license application process.
Pursuant to N.J.A.C. 17:30-7.3, applicants for conditional cannabis licenses are required to submit a list of any proposed financial sources but are not required to provide a financial plan at the time of application.
Yes. If you have not filed for the last year the most recent available tax return filed within the previous two years may be submitted to satisfy the application requirement.
If none of the CRC documents listed here Cannabis Businesses (nj.gov) under "Documents & Forms" will work for the required information, you should create a document to submit the information in a clearly outlined manner.
If you cannot determine where to upload a required document as you are completing an application upload it throught the application platform's "Other Documents" option.
All application support documents must be submitted electronically via the New Jersey Adult Use Licensing Application. They cannot be mailed in. Always retain document originals in case they are requested by the CRC.
Not necessarily. A conditional license applicant does not need to have site control over the proposed cannabis business location before submitting an application. See N.J.A.C. 17:30-7.1 – 7.8 for details.
Under existing medical cannabis rules, if and when the Commission wants to solicit new applications of medical cannabis permits, the CRC would need to issue a Request for Applications (RFA) if and when the Commission wants to solicit new applications detailing the requirements for applying for a medical cannabis permit.
The CRC is not soliciting new medical cannabis permit applications at this time.
Applications are accepted in the NJ-CRC Licensing portal. You must already have a Class 5 Retail license or medicinal permit to dispense cannabis.
Your application for a consumption area must include:
- Municipal approval
- Detailed floor plans
- Business and operating plan, which include plans for ventilation
- Standard Operating Procedures covering 1) safe consumption, 2) transfer of cannabis items, 3) good faith efforts to ensure consumers and patients bring only regulated cannabis into the cannabis consumption area, 4) age verification, 5) emergency protocols, and 6) destruction of unused cannabis
- A notarized attestation form affirming the accuracy of the application
Only a licensed Class 5 Retailer or permitted medicinal cannabis dispensary are allowed to operate consumption areas. Applications from anyone who does not already have a Class 5 Retailer license, or a medicinal permit to dispense will automatically be rejected.
No. Only operators with a licensed Class 5 Retailer or a permitted medicinal cannabis dispensary may operate a cannabis consumption area pursuant to N.J.S.A. 24:6I-21. Applications from anyone who does not already have a Class 5 personal-use recreational license or a medicinal permit to dispense will automatically be rejected.
No. Applications will be accepted on a rolling basis.
Diversely-Owned dispensaries (minority owned, woman owned, disabled veteran owned) and all other microbusinesses can apply beginning April 2, 2025. As of January 2, 2025, only Social Equity designated retail businesses can apply. All other Class 5 Retail operators may apply starting July 2, 2025.
You will be notified that your application was rejected, and you will need to resubmit your application during the designated time for acceptance. A letter will be sent to the primary contact email provided on your application notifying you of this information.
Yes. The application fee is $1,000 ($200 submission fee + $800 approval fee).
Yes. The initial or renewal licensing fee is $1,000 for a microbusiness and $5,000 for standard businesses.
Yes. The municipality can deny the application for municipal endorsement if the application does not comply with its local ordinances on cannabis consumption areas.
Reasons an endorsement application does not move forward in the licensing process include:
- Municipal issues - If the applicant fails to submit evidence of municipal approval
- Unpaid fees - Required application or licensing fees are not submitted
- Noncompliant premises -The proposed site does not meet legal and/or regulatory requirements for ventilation and capacity
- Incomplete submission - The application does not include all the required information and documents
The NJ-CRC will give the applicant the opportunity to cure its endorsement application. The NJ-CRC may deny the endorsement application if it is found the applicant violates the Commission’s regulations, which include, but is not limited to, submitting excess applications, misrepresenting information on an application, failing to pay the required fees after the deadline, and failing to respond to a cure letter after multiple attempts. Additionally, if the municipality denies the application or revokes the municipal endorsement, the NJ-CRC is required by law to deny or revoke the State endorsement.
Yes. Municipalities have the authority to establish limitations on the number of cannabis consumption areas allowed in their jurisdiction.
Yes. The regulations require all personnel of a cannabis retailer or medicinal cannabis dispensary that operates a cannabis consumption area to complete any additional trainings required by the Commission. Municipalities may also require training.
You can contact the NJ-CRC by sending an email to crc.licensing@crc.nj.gov or you can check your status by logging into your portal. In the license application dashboard portion of the page, select the ‘Applications’ option, and in the status column of your application select the information icon to see your current status.
For Diversely-Owned and Social Equity designated retail businesses, questions may be forwarded to ODI@crc.nj.gov. For all other Class 5 Retailers, all questions may be submitted to crc.licensing@crc.nj.gov.
Can Class 4 Distributors and Class 6 Delivery services store cannabis and/or cannabis products?
Delivery services cannot store cannabis or cannabis products. They can only deliver items customers have already ordered from a retailer. Distributors may temporarily store cannabis and cannabis products intended for distribution.
For safety reasons, will delivery vehicles require signage, or can they be unlabeled/unmarked vehicles?
Delivery vehicles should have no markings that would identify them as cannabis delivery vehicles or indicate in any way that they are delivering cannabis and/or cannabis products.
Can a business apply for a wholesale and distributor license simultaneously?
Yes.
How will Class 3 Wholesalers and Class 4 Distributors be required to use METRC?
As with cultivators, manufacturers, and retailers, wholesalers and distributors will be required to track all products that come into their possession. METRC training is offered for new licensees when licenses are issued.
Are there any restrictions on which items delivery services can deliver to consumers?
Delivery services can deliver any items sold in licensed retail stores to consumers.
Can you apply for both a Class 4 Distributor license and a Class 6 Delivery license?
No. Distributor license holders can also hold a Class 2 Wholesaler license. A retail license holder may also have any combination of one each of the following: Class 1 Cultivator, Class 2 Manufacturer, and Cannabis 6 Delivery. Retailers do not need a delivery services license and can already provide delivery services to their customers.
Can management services agreements (MSA) be used to handle transportation services?
Yes. MSAs can cover any arrangement the cannabis business needs. MSAs must be submitted to the Commission for review and approval.
How do I know if I qualify as a minority for a priority application?
Priority applications are certified Diversely-Owned businesses. This certification is issued by the New Jersey Treasury Division of Revenue and Enterprise Services. Learn about the priority application process here, including the criteria for a Social Equity designation.
Can a business have more than one license per address?
Yes. A business can have more than one license at the same address.
Does a Class 6 Delivery Service require municipal approval?
Yes. All cannabis businesses, including delivery, require municipal approval to receive an annual license.
When can I apply for a Class 3 Wholesaler, Class 4 Distributor, or Class 6 Delivery Service license?
Social Equity and Diversely-Owned Businesses can submit applications on September 27, 2023. Diversely-Owned Businesses can begin applying on December 27, 2023. Everyone else may start submitting applications on March 27, 2024.
If you are not using a bank – and using a private investor, for example - do you still need to submit a financial disclosure form with your application?
Yes. "Financial source" means a person or entity that lends any amount of capital to a cannabis business license applicant or license holder pursuant to a secured or unsecured financing agreement and who is not an owner, passive investor, or principal of such cannabis business license applicant or license holder. N.J.A.C. 17:30-1.2
Will delivery services be required to service a specific town, or region?
No. There is no restriction on where delivery services may deliver. They are, however, required to let the NJ-CRC know where they intend to provide service, and to make that information available to customers.
Will Class 6 Delivery Service businesses need to hold a license for each driver?
No. While each driver must have a New Jersey driver's license in good standing and a cannabis business ID, the business entity only needs to hold a single license.
What are the application costs for the Class 3 Wholesaler, Class 4 Distributor, and Class 6 Delivery licenses?
See fee schedule.
When can existing cannabis license holders apply for a Class 3 Wholesaler, Class 4 Distributor, or Class 6 Delivery license?
An existing license holder may apply for additional license types in accordance with the application acceptance schedule in the Notice of Application Acceptance.
Will customized autonomous vehicles be allowed to carry out delivery services?
Autonomous vehicles cannot be used for delivery.
Can a cannabis license owner in another state enter into a MSA with a cannabis business operator in New Jersey?
Yes.
A conditional license is a provisional award that gives the conditional license-holder a limited time to convert into an annual cannabis business license by satisfying all of the remaining requirements for full licensure.
Conditional licensees have 120 days before they need to apply to convert to an annual license.
(a) The conditional license phase: 1. Begins on the day that the conditional license is issued to the license applicant; and 2. Expires 120 days after the day that the conditional license was issued or at the end of an extension.i. A conditional license shall not be renewed, but may be extended pursuant to this section or for good cause, as deemed necessary by the Commission.ii. A conditional license shall expire if replaced with an annual license or can be revoked at the discretion of the Commission.(b) A conditional license holder may apply for an extension of the conditional license, and the Commission may grant the extension on a case-by-case basis.
N.J. Admin. Code § 17:30-7.6
No. If an applicant has all the required criteria for an annual license, then they can apply for an annual license.
Site control (demonstrated by having a lease agreement, property ownership, or similar document) is not required for a conditional license applicant. However, applicants must provide a proposed business address. By the nature of the license, conditional license applicants are not required to have control of the site at the time of the application, but must establish control of a proposed site during the conditional license period.
Conditional license-holders can provide the Commission with proof of site control for a new proposed location when applying for a conditional conversion to an annual license. However, an Impact Zone or microbusiness conditional license holder may not provide a new proposed location that would cause it to no longer comply with the Impact Zone or microbusiness criteria, respectively. In such a situation, the conversion application would be denied and the license applicant would be required to restart the licensing process from the initial stage with the amended location and the appropriate level of priority.
Fees for changing the location of a business apply only to annual license-holders. Once a business has an annual license it must apply for a change of location. ($1,000 for microbusinesses, $10,000 for standard businesses)
For conditional license applicants, the CRC will accept a Letter of Intent in lieu of a final, executed agreement. Pursuant to N.J.A.C. 17:30-7.3(c)(4), as part of the conditional license application, the applicant shall disclose and submit a list of any proposed management services contractors, financial sources, or vendor-contractors. Final, executed agreements will be required prior to conversion to an annual license.
Conditional license applicants may add new owners during the conditional license phase, so long as the new owners are disclosed immediately and majority ownership remains the same. The ownership as a whole remains subject to the income thresholds established by N.J.A.C. 17:30-7.3(c)(7).
Majority owners who hold a conditional license can transfer their ownership interest to another qualified party. Conditional license holders can add new qualified owners to the license. However, the majority ownership in the conditional license must remain with the same individuals awarded the license initially. N.J.A.C. 17:30-7.6(g). EXAMPLE: Let's say A and B own 80% of a conditional license when it's issued. During the conditional license phase, they can transfer their ownership interest to another qualified party as long as they still jointly hold a minimum of 50.1% ownership interest in the license. A party must satisfy the requirements of N.J.A.C. 17:30-7.4 to be deemed qualified.
A microbusiness is a licensed business with a relatively small operation. Microbusinesses can be a cannabis cultivator, manufacturer, distributor, retailer, or delivery service. The business must meet all of the following requirements:
- have no more than 10 employees at one time;
- have a physical plant of no more than 2,500 square feet; and in the case of a cannabis cultivator, the canopy height cannot be more than 24 feet;
- possess no more than 1,000 mature cannabis plants each month (cannabis distributors are exempt); and
- acquire no more than 1,000 pounds of usable cannabis (or the equivalent amount in other forms) each month.
Yes. A microbusiness must stick to the 2,500 square feet restrictions established by the CREAMM Act and CRC regulations. Microbusinesses must have their entire physical plant (the spaces, equipment, and infrastructure directly utilized by a cannabis business, within the premises, for cultivation, manufacturing, wholesaling, distributing, retail sale, and delivery) occupy no more than 2,500 square feet, including any grow areas, regardless of whether the business has only one plant tier or multiple plant tiers. The facility may have other non-cannabis-related spaces that exceed the 2,500 square feet that could be used for possible expansion in the future, as long as the physical plant of the microbusiness does not exceed the 2,500 square feet while it remains a microbusiness.
Yes, if approved by the municipality and the Commission.
Microbusinesses shall employ no more than 10 employees at one time. This includes any seasonal, part-time, and remote employees, but does not include owners and principals. Management services contractors may count as employees, while vendor-contractors will not, but still have their own restriction and requirements. Please refer to N.J.A.C. 17:30-1.2 for the definitions of "employee," "management services contractor," and "vendor-contractor" and N.J.A.C. 17:30-6.8 and 6.9 for details on management services contractors and vendor contractors.
Pursuant to N.J.S.A. 24:6I-46, the limitation to 37 cannabis cultivators for the 24-month period following the effective date of the CREAMM Act, includes all Alternative Treatment Centers (ATCs) issued permits to cultivate pursuant to the prior Requests for Application if also licensed for personal use cannabis; but shall NOT include any cultivator licenses issued to microbusinesses.
No. Municipalities may prohibit the operation of any one or more classes of cannabis establishment, distributor, or delivery services within its jurisdiction through enactment of an ordinance. This includes microbusinesses.
Please see N.J.A.C. 17:30-6.6 for a complete list of criteria to qualify as a Social Equity Business. To claim SEB status, a business must have more than 50% of its ownership meet one of two criteria: (a) have lived in an Economically Disadvantaged Area for five of the last 10 years and have a household income 80% or less of the average median household income in New Jersey, or; (b) have been convicted of at least two disorderly persons offenses or at least one indictable offense related to marijuana or hashish.
Possession with intent to distribute less than 1 ounce of marijuana under N.J.S.A. 2C:35-5(b)(12) was an indictable offense related to marijuana or hashish, and a person would be eligible to participate in the ownership of a Social Equity Business based on that conviction.
Applicants are not required to detail their experience operating in the legacy or unregulated market. Applicants are merely required to provide plans that demonstrate how the applicant intends to operate the business and comply with the relevant laws and regulations. Under law, applications submitted are not considered public records.
The CRC does not limit or prescribe what qualifies as evidence of rehabilitation. Factors the CRC will consider when determining whether there is clear and convincing evidence that an individual has been rehabilitated include but are not limited to: (i) time since the offense, (ii) time between offenses, (iii) recommendation letters, (iv) certificates of achievement, (v) community service, (vi) employment, (vii) evidence of family support, (viii) volunteer efforts, and (ix) civic engagement. Please refer to N.J.A.C. 17:30-7.12 and N.J.S.A. 2A:168A-1 et seq. for more details.
Yes, the NJ-CRC allows individuals with disqualifying convictions to be considered for employment if they demonstrate clear and convincing evidence of rehabilitation.
The following convictions are considered disqualifying for receiving an Employee ID card:
- Convictions of a first, second, or third degree under New Jersey law.
- Convictions of a crime involving any controlled dangerous substance.
- Convictions related to distributing marijuana to minors.
- Involvement in organized crime.
- Diverting marijuana from personal use or medical cannabis states to other states.
- Engaging in the trafficking of controlled substances.
- Engaging in violence or the use of firearms as part of cannabis business operations.
To prove rehabilitation, individuals must provide substantial evidence addressing certain factors, such as the nature of the position, the seriousness of the crime, circumstances of the offense, date of the crime, age at the time of the offense, whether it was an isolated incident, any contributing social conditions, and evidence of the rehabilitation efforts.
ATC (Medicinal) or Adult-Use (Recreational) Employee ID card information can be found on the Business Resources page under the "Hiring & Getting Hired" section. There you will find information and steps regarding ATC Badging Guidance and, separately, steps for the adult-use hiring operator and prospective employee.
No. A legal cannabis business operator must receive a license from the CRC to conduct cannabis business in New Jersey.
Local support must be demonstrated by a resolution from the governing body. For a municipality that does not operate with a governing body, a letter of support from the municipal executive will suffice. See N.J.A.C. 17:30-7.8.
No. Municipalities may prohibit the operation of any one or more classes of cannabis establishment, distributor, or delivery services within its jurisdiction through enactment of an ordinance. This includes microbusinesses.
The CREAMM Act authorizes municipalities to enact ordinances or regulations governing the number of cannabis establishments within their borders. Each city, town, township, village, or borough is responsible for establishing its own rules for getting local approval to operate a cannabis business in the jurisdiction. Contact your municipal government for more information about what kinds of cannabis businesses are allowed and what information is required to operate such a business.
The CREAMM Act authorizes municipalities to enact ordinances or regulations governing the number of cannabis establishments within their borders. Each city, town, township, village, or borough is responsible for establishing its own rules for getting local approval to operate a cannabis business in the jurisdiction. Contact your municipal government for more information about what kinds of cannabis businesses are allowed and what information is required to operate such a business.
The CREAMM Act established five (5) classes of licenses for recreational licensed businesses, described below. Applicants can apply for a temporary license, which allows a business to lawfully act as a cannabis cultivator, manufacturer, distributor, retailer, or delivery service while the business works towards meeting the requirements for a full license. The CRC also developed license requirements for testing laboratories that provide testing services on cannabis or cannabis products.
Recreational Cannabis Business Licenses |
Authorized Activity |
Class 1 Cannabis Cultivator |
Grow personal-use cannabis |
Class 2 Cannabis Manufacturer |
Manufacture personal-use cannabis products |
Class 3 Cannabis Wholesaler |
Store, sell or otherwise transfer, recreational use cannabis items between cannabis cultivators, wholesalers, or retailers |
Class 4 Cannabis Distributor |
Transport cannabis items in bulk between cannabis cultivators, manufacturers, or retailers within the state of New Jersey |
Class 5 Cannabis Retailer |
Purchase personal-use cannabis and cannabis products from licensed cultivators or manufacturers and sell those items to consumers in a retail store |
Class 6 Cannabis Delivery |
Transport a consumer’s purchases of personal-use cannabis and related supplies from the retailer to that consumer |
Conditional cannabis business license |
A provisional award that gives the conditional license-holder a limited time to convert it into an annual cannabis business license by satisfying all of the remaining requirements for full licensure. |
Testing Laboratory license |
Perform testing services on medical cannabis and usable cannabis and cannabis products |
Yes. The following recreational cannabis business restrictions are in place until February 2023:
- Only 37 Class 1 Cannabis Cultivators will be allowed, including existing alternative treatment centers (microbusinesses do not count towards this number).
- There will be a temporary ban on vertical integration (a single business being able to grow, produce, and sell cannabis), except for expanded alternative treatment centers, which may concurrently hold a cannabis cultivator license, cannabis manufacturer license, and cannabis retailer licenses.
- A license-holder and its owners and operators may concurrently hold one cannabis cultivator and one cannabis manufacturer license, and no other licenses.
- A license-holder and its owners and operators may hold one cannabis retailer license, and no other licenses. However, retailers and delivery services can enter into agreements to provide for the delivery of cannabis items to consumers.
- A license-holder and its owners and operators may hold one cannabis distributor license, and no other licenses. A license-holder and its owners and operators may hold one cannabis delivery service license, and no other licenses.
After February 2023, the CRC can choose to allow cannabis business license applicants to hold multiple licenses across different classes.
Additionally:
- A license-holder may hold up to three testing laboratory licenses but may not hold any cannabis business licenses; and
- A person or entity can serve as an owner of only one license applicant or license-holder.
No, however, pursuant to the CREAMM Act, there are some partial restrictions.
Cannabis business license applicant entities must include at least one owner who has resided in this state for at least two years – as of the date of the application. Cannabis business license applicants that include at least one owner lawfully residing in New Jersey for at least five years as of the date of the application will receive bonus points.
For microbusinesses, 100% of the ownership interest in the microbusiness license applicant must be held by current New Jersey resident(s) who have resided in the state for at least the past two consecutive years at the time of application; and at least 51% of the total number of persons included in the microbusiness license applicant or license-holder, including all owners, principals, and employees, shall be residents of either the municipality in which the microbusiness is or will be located, or of a municipality directly bordering such municipality, at the time of the application.
Cannabis business license applicant entities also must have a valid Business Registration Certificate on file with the Division of Revenue and Enterprise Services in the NJ Department of the Treasury.
Additional details on residency documentation will be included in the CRC’s Notice of Applications. Once details are established, the information will be posted on the CRC website.
The CREAMM Act does not limit ownership of recreational cannabis businesses to citizens of the United States. Under federal law, all employers are required to verify the employment authorization of their workers.
Individuals should consult with an immigration law attorney for more information about how their immigration status may affect their participation in the cannabis industry.
Whether certain non-cannabis criminal offenses would disqualify an applicant is determined on a case-by-case basis. The statute (N.J.S.A. 24:6I-36b.(2)(c)(iv)) provides that certain convictions will disqualify an individual from having a license application approved unless the Commission determines that the conviction should not disqualify the application. This review of previous convictions by the Commission will focus on whether any previous conviction is substantially related to the qualifications, functions, or duties for which the applied for license is required. Review will also examine the nature of the offense, the circumstances at the time of committing the offense, and any evidence of rehabilitation since conviction.
This is dependent on how much ownership, supervision, and control the franchisor has over the franchisee. Refer to N.J.A.C 17:30-1.2 for the definitions of "owner," "management services contractor," and "principal." Also see N.J.A.C. 17:30-6.7, 6.9, and 6.10, as well as the CRC's October 13, 2021 webinar, for details on the requirements for management services agreements and financial source agreements, and how prospective cannabis business owners can protect themselves from unfair business agreements.
No. Cannabis retailers may choose to deliver to end consumers or use a Class 6 Cannabis Delivery Service license-holder to deliver items to consumers. Cannabis retailers engaging in delivery operations must comply with N.J.A.C. 17:30-12.8.
No. While a “cannabis retail and delivery business” may offer online order and purchase options, they must maintain a retail storefront from which orders may be placed in person and sales can take place. The ability to offer online services is an option but cannot encompass the sole business plan of a cannabis retailer.
Pursuant to the CREAMM Act, a second license would be needed to make extracts and concentrates or otherwise manufacture cannabis products. The applicant would need to apply for a Class 2 Manufacturer license to be involved in the manufacturing of cannabis products.
Yes. The New Jersey State Agriculture Development Committee (SADC) has determined that it considers cannabis an agricultural crop and that growing cannabis on a preserved farm is permitted, regardless of what the implications are on that portion of the farm qualifying for farmland assessment. See SADC's FAQ here. Please be advised, however, that the growing of cannabis on a preserved farm, whether grown outdoors and/or indoors, must still comply with all applicable State laws.
As noted in the Economically Disadvantaged Areas report, $90,444 is the median household income - as established in the 2019 American Community Survey. Eighty percent of that - and the standard currently used by the CRC - is $72,355.20.
A cannabis business shall only operate under its New Jersey registered entity name. Businesses with an alternate name or trade name that existed before August 19, 2021 can apply for a cannabis license. If the business is awarded a license it can only operate under its registered name. Alternate names, trade names, DBAs can be noted in an application to help the CRC verify the applicant's identity, but the alternate name cannot be used while conducting cannabis business activities (including advertisements). Previously existing businesses are NOT required to officially change their name with the State nor with the IRS.
There is no prohibition on the word "cannabis" in the business name. However, businesses should note that advertisements and location signage must adhere to the limitations provided for at N.J.A.C. 17:30-14.1 and 14.2, as well as municipal ordinances and restrictions.
N.J.S.A. 24:6I-35 prohibits cannabis retailers from being located "in or upon any premises which operates a grocery store, delicatessen, indoor food market, or other store engaging in retail sales of food [or] licensed retail sales of alcoholic beverages." The CRC does not prohibit cannabis businesses from being located in strip malls, as long as the cannabis business premises is self-contained without any access between the cannabis business and other businesses. The cannabis business should have its own entrance and/or access point that is not accessible by other businesses in the strip mall. The cannabis business premises must also satisfy all the security requirements of N.J.A.C. 17:30-9 and 10.
Additionally, applicants must adhere to any municipal restrictions on being located in these areas. Applicants should also note that it will need to be able to comply with other laws and regulations, including requirements to verify patrons' age and restrictions on displays, signage, and advertisements.
The CRC does prohibit cannabis businesses from being located in shopping malls where there is an open corridor or service corridor that allows access between the cannabis business and other stores, and/or retail sales of food and/or alcoholic beverages.
Transactions between cannabis cultivators and other license classes are subject to the Social Equity Excise Fee (currently $1.10 per ounce, $1.52 starting January 1, 2023). Retail sales of cannabis items are subject to New Jersey state tax of 6.625%. Additionally, municipalities may also levy a transfer tax of up to 2% on all cannabis business transactions within their jurisdiction.
Medical Cannabis Business Permit |
Authorized Activity |
Vertically Integrated Alternative Treatment Center |
Grow, wholesale, manufacture, sell/dispense, and deliver medical cannabis and medical cannabis products |
Medical cannabis cultivator |
Grow and wholesale medical cannabis |
Medical cannabis manufacturer |
Manufacture medical cannabis products |
Medical cannabis dispensary |
Sell/dispense and deliver medical cannabis, medical cannabis products, and cannabis paraphernalia |
Clinical Registrant |
Grow, wholesale, manufacture, sell/dispense, and deliver medical cannabis, medical cannabis products, and cannabis paraphernalia pursuant to a contract with a qualifying academic medical center in the region for the purpose of clinical research involving medical cannabis |
Integrated curriculum permit |
Partner with an approved academic, clinical, or research program at an institution of higher education |
Conditional Permit |
Begin building out operations for the cultivation, manufacture, or dispensing of medical cannabis while working towards meeting the requirements for a medical cannabis cultivator, manufacturer, or dispensary permit |