Ten Things You Can Do to Prepare for the Upcoming Release of New Jersey Recreational Cannabis License Applications

Cannabis Oct 21, 2021 Newark, NJ

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 ([email protected]) 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.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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Ten Things You Can Do to Prepare for the Upcoming Release of New Jersey Recreational Cannabis License Applications

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