New Jersey is a state to focus on in 2021. The new legal marijuana market is about to be huge and profitable. Now is the time for business entrepreneurs to consider working with a cannabis consultant for a New Jersey cannabis application. With that, you may be wondering how to even start a cannabis business in New Jersey. Well, our cannabis consultants at Quantum 9 are here to explain how you can open up a cannabis business and earn some big bucks. We have the highest success rate in the industry. Let our expert cannabis consultants help you with your business plan.
To begin with, the bill for New Jersey cannabis applications is pretty hefty. With that, our cannabis consultants in New Jersey break down the bill into sections so that you have a better understanding of what is required. Let’s start with the basics and go through how and what you can apply for a cannabis business license in New Jersey.
New Jersey Cannabis Application Process
Although it may be obvious, you do need a specific license to operate a cannabis business in New Jersey. With that, you need to fill out an application for approval of a cannabis business. These applications are lengthy and require intense detail. So, make sure you work with a cannabis consultant in New Jersey before starting this application on your own.
What Cannabis Licenses are Available in New Jersey?
According to section 19 of the bill, annual and conditional licenses will be available.
A conditional license is a temporary license that allows the holder to lawfully act as a cannabis grower, processor, wholesaler, distributor, retailer, or delivery service. Additionally, this license is issued pursuant to an abbreviated application process. A conditional license holder then has time to become fully licensed if they complete the remaining qualifications for an annual license.
With that, a conditional license typically lasts around 120 days, and at any time within those 120 days, you can apply for an annual license. In order to upgrade into an annual license, the commission requires that you are in compliance with any necessary plans, procedures protocols, actions, or other measures in the application.
So, a conditional license can not be renewed and only replaced by an annual license. Also, you need a separate license for each location of a cannabis operation. Make sure to keep this in mind as you work with your cannabis consultant on your New Jersey cannabis application.
When Can You Apply for a Cannabis License in New Jersey?
The commission accepts and processes applications within 30 days after rules and regulations are made. During this process, the commission will verify any necessary information and review the qualifications. These things make or break an application. It takes around 90 days for the commission to review your application. Talk to your cannabis consultant in New Jersey as they know what information is necessary for you to qualify for a cannabis business. The commission is able to deny an application if any information is missing.
Approval on a Cannabis Application
If your application is approved, the commission issues you a license within 30 days. Keep in mind that local towns put a limit on how many cannabis businesses they want within their town. The commission considers input from these local towns to make the ultimate decision on who’s cannabis application in New Jersey gets a spot in that town.
What if my Application is Denied?
The commission lets you know specifically why your application did not go through. The applicant then has an opportunity for a hearing with the Administrative Procedure Act. So, if you think that you deserve a cannabis license in New Jersey you have the opportunity to voice it with this act.
Requirements for Conditional Licenses in New Jersey
Within this application, you specify which municipality you want your cannabis business in. Then, the commission provides a copy of your application to this municipality. Again, make sure you are talking to your government officials in the meantime. It is important for you to have good relations for you to have success in the cannabis application process.
During this process, the commission will verify certain required information, such as:
- Making sure the application contains one significant person who has lived in New Jersey for at least 2 years.
- A list of all persons with a financial interest who also has decision-making authority for the cannabis business.
- Proof that everyone within the application is 21 years of age or older.
- Other necessary forms of identification and background check information.
- Proof that each person with a financial interest who has decision-making powers for the cannabis business, for the immediately preceding taxable year, and adjusted income of no more than 200,000. The income shall be no more than $400,000 if filing jointly together.
- A certification that each person with a financial interest who has decision-making powers for the cannabis business does not have any financial interest in an application for an annual license.
- Federal and State tax identification numbers for the cannabis business.
- Information about the legal name of the cannabis business.
- The business plan and management operation profile. Make sure to work with a cannabis consultant in New Jersey for this one.
- A plan for liability insurance coverage.
The commission denies any cannabis application in New Jersey that fails to provide the information listed above.
Annual Cannabis License in New Jersey
A conditional license usually transitions into an annual license. For example, if the commission determines during that 120-day period that the conditional license is in compliance, the commission will replace the conditional license with an annual license. If not, the conditional license expires at the end of the 120-day period.
If you are denied, the commission provides specific detail on why your cannabis application in New Jersey did not go through. Luckily, they also provide written notice and a refund of 80 percent of the application fee.
New Jersey Applications Scored Upon a Point Scale
Each application is scored and reviewed with a point system. Applicants receive points based on what is provided within their application. Then, the commission ranks applicants from the most to least points. If two or more applicants receive the same amount of points, the applicants will be grouped together. The commission will conduct a public lottery if multiple ties exist.
All in all, cannabis applications in general need detail. Our cannabis consultants at Quantum 9 are excited to help you win a cannabis license in New Jersey. Talk to us about how you can open your dream cannabis business.