New Jersey Cannabis Attorneys

New Jersey has regularly been one of the top three states in the country for cannabis arrests. Residents made their feelings known in November 2020, when they voted for the state constitution to be amended to allow recreational cannabis for adults aged 21 and older.

After some delays, New Jersey became one of the states to permit both medical and non-medical cannabis usage (sometimes called a “fully legal” state) in March 2021.

New Jersey Cannabis Attorneys

Unlike in some other states, legalization in New Jersey has not come with an allowance for growing cannabis at home or automatic expungement for past cannabis-related convictions.

However, it has led to the potential for lucrative business opportunities in the emerging cannabis market here. While these are exciting times for entrepreneurs and existing medical cannabis license holders, the market is heavily regulated and to operate within it, you will need to follow a wide raft of regulations governing the industry.

State regulators do not make it easy to start a cannabis business here. You must be prepared to follow the evolving regulations and abide by the maze of local and state laws.

Violations can result in administrative penalties or even criminal investigations that may lead to life-changing criminal charges (and mandatory prison sentences).

The cannabis attorneys at Cannabis Law Solutions have followed the changing cannabis laws in New Jersey closely. We have a comprehensive understanding of the regulations and can help you navigate the complex legal landscape and capitalize on the business opportunities provided here.

Laws for cannabis possession (personal use) in New Jersey

The New Jersey laws for possession of cannabis for personal use are as follows:

Up to six ounces 

  • No incarceration or fine

Over six ounces (second offense)

  • Criminal offense with up to 18 months in prison and a $25,000 fine

If the crime is committed within 1000 feet of a school, 100 hours of community service and an additional fine will apply.

Laws for distribution of cannabis or possession with the intent to distribute in New Jersey

The New Jersey laws for distribution of cannabis or possession with the intent to distribute are as follows:

Up to one ounce (first offense)

  • No incarceration or fine

Up to one ounce (subsequent offense)

  • Criminal offense with up to 18 months in prison and a $25,000 fine

More than one ounce but less than five pounds

  • Criminal offense with 3-5 years in prison and a $25,000 fine

More than five pounds but less than 25 pounds

  • Criminal offense with 5-10 years in prison and a $150,000 fine

More than 25 pounds but less than 25 pounds

  • Criminal offense with 10-20 years in prison and a $300,000 fine
  • Mandatory minimum sentence of 10 years

Within 1000 feet of a school or school bus

  • Criminal offense with 3-5 years in prison and a $150,000 fine

Possession with the intent to distribute to minors or pregnant women can lead to a double term of imprisonment and fine.

Laws for the cultivation of cannabis in New Jersey

The New Jersey laws do not allow for any home-grown cannabis. The cultivation laws are as follows:

One ounce to less than five pounds (less than 10 plants):

  • Criminal offense with 3-5 years in prison and a $25,000 fine

Between five and 25 pounds (10-50 plants):

  • Criminal offense with 5-10 years in prison and a $150,000 fine

More than 25 pounds (50 plants or more):

  • Criminal offense with 10-20 years in prison and a $300,000 fine
  • Mandatory minimum sentence of 10 years

How can you obtain a cannabis business license in New Jersey?

The cannabis industry here is overseen by the New Jersey Cannabis Regulatory Committee (CRC).

CRC regulations were outlined in August 2021 and these have shown the way forward for the industry in the state.

Notably, when reviewing license applications, three categories of cannabis companies are given priority assessment and approval:

  • Social equity businesses: owned by people previously convicted of cannabis crimes or living in economically disadvantaged areas.
  • Diversely owned businesses: minority-owned, woman-owned, or handicapped veteran-owned businesses.
  • Impact zone businesses: located in municipalities with a large population, high unemployment rate, or high numbers of crime or arrests for cannabis.

Opportunities also exist for both large- and small-scale entrepreneurs to enter the industry.  Licenses are available for microbusinesses or “micro growers” with less than 10 employees and premises no more than 2,500 square feet.

To obtain a license, you will need to provide the CRC with the necessary documentation and business plan. Part of the application process may be to establish prior experience in a regulated cannabis sector.

Once your application for a conditional license is accepted, you have 120 days to identify a suitable location, obtain municipal approval, and apply for a full annual license.

There is no set cap for the statewide number of licenses that can be issued but local municipalities in New Jersey have the freedom to regulate the number of cannabis businesses within their jurisdictions.

What types of cannabis licenses are available in New Jersey?

The New Jersey Cannabis Regulatory Committee has made the following types of licenses available:

  • Cannabis retailer license
  • Cannabis testing facility license
  • Cannabis wholesaler license
  • Cannabis processor license
  • Cannabis grower license
  • Cannabis delivery license

Micro grower licenses are available for entrepreneurs who meet the following criteria:

  • No more than 10 employees
  • Occupies an area of no more than 2,500 square feet (retailers, etc.)
  • No more than 2,500 square feet for cannabis growers (measured on a horizontal plane) with plants growing no higher than 24 feet
  • Possesses no more than 1,000 cannabis plants each month
  • Acquires and processes no more than 1,000 pounds of cannabis per month (for processors)
  • Acquires for resale no more than 1,000 pounds of cannabis each month (for wholesalers)

License application fees in New Jersey vary depending on the size of the proposed business. Fees are payable for the initial application for a provisional license, application approval, and conversion application when you convert a provisional license into a full annual license:

Microbusiness license

Conditional license fees:

  • Submission fee: $100
  • Application approval fee: $400
  • Conversion application submission fee: $100
  • Conversion application approval fee: $400

Annual license fees:

  • Application submission fee: $200
  • Application approval fee: $800
  • Cultivator initial or renewal licensing fee: $1,000
  • Cannabis manufacturer initial or renewal licensing fee: $1,000
  • Retailer initial or renewal licensing fee: $1,000
  • License conversion application submission fee: $200
  • License conversion application approval fee: $800

Standard cannabis business license

Conditional license fees:

  • Submission fee: $200
  • Application approval fee: $800
  • Conversion application submission fee: $200
  • Conversion application approval fee: $800

Annual license fees:

  • Application submission fee: $400
  • Application approval fee: $1,600
  • Cultivator initial or renewal licensing fee: from $5,000 to $50,000
  • Cannabis manufacturer initial or renewal licensing fee: from $20,000 to $30,000
  • Retailer initial or renewal licensing fee: $10,000

With high recurring fees and stringent requirements for obtaining a license, most aspiring business owners in New Jersey seek help during the license application process.

What is needed to apply for a cannabis business license in New Jersey?

To apply for a cannabis business license in New Jersey you will need to submit at least the following to the CRC:

  • A completed business plan
  • A regulatory compliance plan
  • A completed form with the names, dates of birth, and street addresses for all owners
  • The street address of the location at which you will cultivate cannabis or manufacture cannabis products
  • Background disclosure information for all owners
  • Payment of the applicable license fees

How to prepare your cannabis business license application

Before you apply for a cannabis business license in New Jersey, you will need to incorporate your business.

Entering the cannabis industry in New Jersey is a considerable commitment for most entrepreneurs. Be clear on the type of business you want to operate, its structure, your short and longer-term goals, how you intend to comply with the regulations, and so on.

Business owners often find it best to consult with an attorney about the regulations in New Jersey before getting too far down the road with setting up the business.

Our cannabis attorneys can help you ready your business for the initial license application. Once you have secured your license, we can advise you how to comply with local, state and federal regulations to maintain your license so that you can start to grow your business.

Cannabis business legal planning, advice and support in New Jersey

Whether you want to grow, manufacture, retail or otherwise be part of the burgeoning cannabis industry in New Jersey, the legal hurdles are likely to be substantial.

Our cannabis business attorneys can provide the knowledge and support you need to plan, incorporate, protect, and grow a successful cannabis business.

For informed legal advice, call 866-329-0729 for a consultation with a knowledgeable cannabis attorney at Cannabis Law Solutions.

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How will our cannabis and psychedelic business services help you

Cannabis & psychedelics business entity formation

Whether you are looking to form a limited liability company (LLC) or a corporation, our experienced business lawyers can discuss the pros and cons of both and help you incorporate your business with the optimal structure to achieve your goals.

Cannabis & psychedelics business licenses

If you want to run a cannabis or psychedelics business, you will need a valid business license issued by your state authority as well as local permits. Eligibility criteria are likely to be stringent and we can help you navigate the often-complex license application process.

Cannabis & psychedelics corporate documentation

Whether you need to prepare for a license application, transfer of business ownership, change of corporate structure, transfer business location or another business process, we can help you identify and draft the documentation you need to operate legally in your state.

Cannabis & psychedelics administrative law

State authorities watch licensed and unlicensed cannabis and psychedelics businesses closely. If you violate regulations, you could face an administrative penalty. Our attorneys can provide representation or help you prepare for an administrative hearing, settlement conference or appeal.

Cannabis & psychedelics disputes and litigation

Whether you have a dispute with another business, a legal issue with one of your partners or a licensing or administrative issue, you may need legal assistance to help resolve it. We are adept at alternative dispute resolution methods as well as civil litigation.

Cannabis & psychedelics regulatory compliance

As the cannabis and psychedelics industries emerge in states around the U.S., they are more heavily regulated than most other industries. We can help your business navigate the red tape and plan to stay on the right side of the regulatory authorities in whichever state you are based.