Licensing Provisions for New Jersey cannabis manufacturing license

There are some of the licensing provisions for the New Jersey cannabis manufacturing application. The act expands the number of eligible clinical registration permits from four to five and allows alternative treatment facilities to cultivate at up to two physical locations with a total bloom space of no more than 150,000 square feet.

There are restrictions on the number and types of licenses that a single licensee can hold for the first 24 months after implementation. A licensed cultivator, manufacturer, wholesaler, distributor, or delivery service, for example, cannot simultaneously be a licensed retailer. A cultivator or manufacturer can only have two licenses at a time, however, this restriction does not apply to a vertically integrated medical alternative treatment center. Furthermore, there would be a restriction of 37 cannabis cultivators during these 24 months. After the initial 24-month period, the statute allows for the holding of various classes of licenses.

Each municipality can authorize and restrict the number of licensed enterprises, as well as their location, method, and hours of operation, before too and throughout the transition period leading up to ultimate retail sales. A municipality has 180 days after the law’s enactment to pass an ordinance barring any businesses within its borders, but it cannot prevent cannabis products from being delivered to residents.

Certain sorts of license holders can also apply for an endorsement to run a cannabis consumption area where on-premises consumption is permitted. The statute also specifies certain conditions for these drinking spaces, which can be inside or outside.

Charges, sanctions, and taxes

The “Cannabis Regulatory Assistance, Enforcement Aid and Marketplace Modernization fund” shall include all license fees and penalty and tax revenues collected from medical cannabis transactions and any tax revenue collected from retail sales transactions. These funds are distributed annually by the Legislature with the guidelines laid down in the text of the act. For many, an optional Social Equity Excise Fee may be imposed on the cultivation of personal uses. The fee, when charged, would apply to sales or transfers to cultivators and was originally fixed at 1/3 out of 1% of the state average retail price of an ounce of used cannabis.

Finally, the law provides for certain consumer protection and employee safety policies and employer employment policies, as laid out in the language of the law.