Need assistance getting a cannabis business license? Schedule a Free Consultation
Listen to this articleCiting delays with construction and local approvals, the New Jersey Cannabis Regulatory Commission is giving aspiring cannabis business owners more time.
At the recommendation of its permitting & licensing committee, the regulatory board voted unanimously April 11 to eliminate time frame requirements for applicants to be ready for final on-site inspections.
CRC Chief Counsel Christopher Riggs said, “We understand the external challenges applicants are facing in the market. The board’s action … waives the requirement that cannabis businesses become operational within 365 days of receiving an annual award for recreational applicants and 18 months for 2019 RFA [Request For Applications] medicinal applicants.”
“Cannabis business entrepreneurs face obstacles far and above what other entrepreneurs face: access to capital is limited due to cannabis still being federally illegal, municipal opt-outs limit the jurisdictions where cannabis businesses can be located and social stigma further limits the locations where these businesses are welcomed,” he explained to NJBIZ.
Riggs went on to say, “We recognize that many applicants facing these impediments may need more time to bring their dreams to fruition and they should not have to worry about having to reapply or lose application fees. As long as they stay in touch with their field monitors, they will no longer have to worry about that.”
Power shift
Of 548 annual awardees, 394 have yet to open after more than 365 days, the CRC reported last week. The RFA medicinal applicant pool of 44 awardees still has 21 ventures waiting to become operational, the CRC said.
The board’s permitting & licensing committee plans to seek feedback on the process during a public hearing this spring. That event aims to understand what’s working and what can be improved, the CRC said.
Jessica Gonzalez is a cannabis advocate and attorney. She’s also helping develop and launch the New Jersey Business Action Center’s new cannabis workforce development program. Gonzalez told NJBIZ, “It’s no secret that annual awardees are facing municipal obstacles that are preventing them from becoming operational. I commend the NJ-CRC for really listening to applicants, taking action and waiving the 365-day deadline for annual license awardees.”
“This incredibly important waiver will relieve the pressure to rush an opening, allow annual awardees time to build-out their facilities with intentionality, provide them with time to make good and compliant business decisions and most importantly, it will allow annual awardees to maintain their negotiating power. By issuing this waiver, the NJ-CRC shifted the power back to annual awardees, and such a decision will have great impacts on the future of this industry,” she said.
Seeing green
New Jersey is now home to 120 dispensaries and counting. The cannabis market anticipates hitting $1 billion in sales this year, according to the CRC.
Ancillary services provided in support of the industry – like accounting, marketing, architecture, security, real estate and legal – could generate $1.5 billion to $2 billion in taxable revenue for municipalities that have opted to allow cannabis businesses, the CRC said.
The recent granting of edible waivers has also led to an expansion in product diversity. The move provides consumers with a new range of infused products, like caramels and brownies. According to the CRC, the category now accounts for 14% of market share. The regulatory board projects that figure will grow in 2024 as more cultivators and manufacturers come online.
According to the CRC, since December 2021:
- 1,856 of the 2,481 applications submitted have been approved;
- 1,380 conditional licenses have been granted and 312 of those have successfully converted into annual licenses.
Of the 236 operating licenses in New Jersey, 164 represent annuals and 72 expanded adult treatment centers.
Editor’s note: This story was updated at 5:14 p.m. ET April 16, 2024, to correct that fact that the vote was to eliminate time frame requirements for applicants to be ready for final on-site inspections, not for converting conditional licenses to full.
