New Jersey Real Estate & Cannabis Regulations

The New Jersey Cannabis Regulatory Commission (NJ-CRC) is set to usher in a new era for the cannabis industry with groundbreaking updates that promise to significantly enhance the market landscape. On March 27, 2024, the Garden State will open applications for three innovative cannabis license types: Wholesaler, Distribution, and Delivery licenses. This strategic expansion is accompanied by the highly anticipated introduction of marijuana consumption lounges, following the NJ-CRC’s finalization of regulations for social use spaces. These developments collectively mark a transformative phase in New Jersey’s cannabis sector, aimed at broadening access, ensuring consumer convenience, and fostering a safe and regulated cannabis environment.

Overview of New License Types in NJ

Wholesaler License: This license type introduces a pivotal role within the supply chain, allowing holders to purchase cannabis products in bulk directly from cultivators and manufacturers. Wholesalers are essential for the efficient distribution of cannabis products, serving as a bridge to dispensaries while ensuring product quality and regulatory compliance.

Distribution License: Tailored to address the logistical demands of the cannabis industry, the Distribution License permits the transport of cannabis products among licensed entities. This includes the movement of products from cultivators to processors, from processors to dispensaries, or directly from cultivators to dispensaries. Distribution licensees play a crucial role in maintaining the integrity and security of cannabis products throughout the supply chain.

Delivery License: In response to growing consumer demand for convenience, the Delivery License empowers businesses to deliver cannabis products directly from dispensaries to consumers. This service is pivotal for enhancing access, especially for patients and consumers who face challenges in physically accessing dispensaries. Delivery services will adhere to stringent safety and privacy standards to ensure a secure and discreet service.

Note: All cannabis businesses, including delivery, require municipal approval to receive an annual license.

Marijuana Consumption Lounges in New Jersey

In a landmark decision on January 17, 2024, the NJ-CRC voted 4-0 to finalize regulations for the establishment of marijuana consumption lounges in New Jersey. This innovative concept allows for the creation of designated areas where individuals can purchase and consume cannabis products on-site, attached to dispensaries. However, to maintain a focus on cannabis consumption, the sale of food, alcohol, tobacco, or nicotine products within these lounges is prohibited. Patrons may bring or order food and non-alcoholic beverages, fostering a social and communal consumption experience.

“New Jersey’s cannabis industry is well on its way to being a billion-dollar industry, and consumption areas will likely bolster that – fostering a communal experience for those 21 and older around cannabis in a regulated and secure space,” said NJ-CRC executive director Jeff Brown.

Consumption lounge operators will face a fee structure based on business size, with microbusinesses required to pay a $1,000 fee for a consumption area endorsement, and standard businesses a $5,000 fee. This tiered approach ensures equitable access for businesses of all scales to participate in this new venture.

The application portal for consumption lounge licenses is poised to open in the upcoming months, following a few procedural steps. These lounges must comply with municipal regulations, including restrictions on the number of consumption areas, signage, and coordination with local emergency services, highlighting the importance of community integration and safety.

The introduction of new cannabis license types and the establishment of consumption lounges represent a significant milestone in New Jersey’s cannabis industry. These initiatives are designed to cater to the evolving needs of consumers and businesses alike, setting a new standard for innovation, convenience, and safety in the cannabis market. As New Jersey continues to lead with progressive cannabis policies, the state solidifies its position as a model for others to follow in the dynamic landscape of cannabis regulation and business development.

Jersey City

The Cannabis Control Board is now accepting applications (“CCB App”) for Class 1 to 6 Licenses. The Division of City Planning is currently accepting applications (“GDA”) for conditional use applications related to cannabis establishments and distributors.

There is no cap to the maximum number of cannabis licenses permitted in Jersey City. Instead, Jersey City is regulating the location and proximity of Cannabis Establishments and Distributors through zoning. Class 1 to 4 licenses are limited to certain zones. Class 5 licenses are limited to certain zones and in addition are typically 600 feet from one another.

Elizabeth City

Applications accepted on an ongoing basis, no cap.

https://www.elizabethnj.org/541/Cannabis-Local-License

Atlantic City

Open on an ongoing basis.

The Official Website of City of Atlantic City, NJ – Cannabis for the City

Trenton City

Cap of 10 retail licenses, no existing retailers showed on state’s database of licensed businesses.  Apps open on city’s website.

Mount Laurel Township

No cap on licenses in the township according to municipal code.

Teaneck Township

No cap on licenses in the city.

Evesham Township

Cap of five retail licenses in the city.  At least three have been proposed, but according to the state’s list of licenses locations none has full approval yet.

Rockaway Township

No cap on licenses in the town code.  License applications available online.

Lower Township

Cap of two retail licenses.  Emailed the city clerk to inquire if licenses are still available, no locations showed on the state’s list of approved licenses.

Cliffside Park Borough

No cap on licenses in the ordinance.  Cliffside Park Borough Cannabis Control Board meets regularly to consider licenses, most recently in late March.

West Milford

Cap of ten retail licenses available in the city.   Application available online. May be limited by proximity, there is a 2,500 foot setback distance between retailers.

West New York

No formal cap on licenses.  Township needs to a pass a resolution of support each time a company wishes to apply.

Hackensack

No cap on licenses in the city in their ordinance.  Reached out to the town to see if they are still accepting apps.

Plainfield

City allows up to five retail licenses.  Applications available on the city’s website. Have asked the planning department if there are any licenses still available, at least 1 retail location has been approved and another is being currently considered.

Franklin Township

No cap on licenses in ordinance.  City has dozens of applications being currently processed.

Union Township

City allows 2 retail licenses, no currently licensed location in the city.  Have reached out to the city, and it appears there are two retail apps being considered.

Vineland City

City allows 1 retail license, no currently licensed location in the city.  Have reached out to the city to see if there any apps being processed

Moorestown Township

Township has a cap of 6 total licenses across all license types, with two being reserved for microbusinesses.  Reached out to the town to inquire if they are still accepting applications.

Pennsauken Township

City has a cap of two retail licenses.  Emailed the city to inquire if there are licenses left.

Secaucus Township

Township has no cap on licenses in their ordinance.  Reached out to the city to see if they are still taking applications.  Local cannabis control board has approved one license and another is currently being considered.

Hamilton Township

No cap on licenses in townships ordinance.  Emailed the city’s CFO in charge of applications to ask if they are still accepting retail applications.

Roselle Borough

Cap of three retail licenses.  Applications available online,

Scotch Plains Township

Township has no cap on licenses in ordinance.  Township has recommended three dispensaries to the state so far. Contacted city to inquire if they are still taking applications.

Lawrence Township

Cap of two retail licenses.  One license confirmed to have been issued, reached out to the township to ask if the other license is still available.

Galloway Township

Township has no cap on licenses in ordinance, applications accepted on a rolling basis according to city code.

Edison Township

Cap of three retail licenses.  (emailed city to ask if any licenses remaining)

License Types: Class 1 Cannabis Cultivator, Class 2 Cannabis Manufacturer, Class 3 Cannabis Wholesaler, Class 4 Cannabis Distributor, Class 5 Cannabis Retailer, and Class 6 Cannabis Delivery.

Distance Requirement: Under state review

Caps: Cultivator licenses are capped at 37 statewide until 2/22/23, there are no other statewide caps.

Note: Cities may lessen the distance under their own ordinances

Tax Rate:

• Medical marijuana: New Jersey is in the process of slowly lowering taxes on medical cannabis purchases:
  • 4% on sales made until June 30, 2021
  • 2% on sales made between July 1, 2021, and June 30, 2022
  • 0% on sales made on and after July 1, 2022
• Adult use retail: New Jersey’s recreational program is expected to come online later this year. Sales will be subject to the 6.625% statewide sales tax, but no specific marijuana excise tax. Local municipalities will be permitted to tack on an additional 2% sales tax.