Although we don’t know the exact date, New Jersey is expected to release its recreational cannabis license applications in the not-too-distant future. In anticipation of that release, the New Jersey Cannabis Regulatory Commission recently held a webinar to assist prospective applicants with the application and licensing processes that included a discussion of things you can be doing now to set yourself up for success. A summary of those steps, which includes our thoughts, is below.
1. Familiarize yourself with the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act and the related rules and regulations. It’s important to know what’s expected of applicants and the rules for operating a cannabis business in New Jersey.
2. Determine the license(s) you intend to seek. You should decide not only the type of license(s), such as a cultivator, manufacturer, or retailer but also the size of your license (standard or micro) and whether you will pursue a conditional license or an annual license.
3. Develop a business plan. This step is crucial for the application itself and essential to attract investors and share your vision with potential employees.
4. If you are not utilizing an existing entity, form the legal entity that will be applying. That means you need to decide the structure of your applicant entity (limited liability company, partnership, corporation, etc.), register your business with the state, and obtain federal and state tax IDs.
5. Set up a bank account. While banking options are limited, there are banks in New Jersey that will open banking relationships with cannabis businesses.
6. Obtain appropriate insurance. Depending on the license type and your desired location, you may need to have insurance in place.
7. Research potential locations for your cannabis business. Depending on the type of license you are seeking, you may need to have control of your proposed location before you apply, but you will need to identify the desired location.
8. Begin working with the local government to make sure your desired location is zoned properly and will be approved. The applications require you to obtain necessary approvals and documents from the local governing body.
9. If applicable to your business, apply to the State of New Jersey to be certified as a minority-owned, woman-owned, and/or disabled-veteran-owned business. Businesses that obtain any of these certifications receive preferential treatment in the application process.
10. Think about the documents you’ll need to submit and begin gathering them. That may include documents that demonstrate you are a social equity business, live in an impact zone, have the necessary liquid assets, and things of that nature.
While this may seem overwhelming, starting now will make your application process easier. Legal assistance can be a tremendous help, so please contact Doug Sargent (doug.sargent@gmlaw.com) if you would like more information on how Greenspoon Marder LLP may be able to assist you in applying for cannabis licenses in New Jersey.
