New Jersey Cannabis Regulatory Commission is gearing up to accept applications for recreational cannabis business licenses, including Class 3 (wholesale), Class 4 (distribution), and Class 6 (delivery), starting on September 27, 2023.
If you’re considering getting into the cannabis business or want to obtain New Jersey delivery license, then you’re reading the right content. In this post, we’ll cover everything you need to know to become better acquainted with NJ’s cannabis market.
What’s Class 6 Delivery License Applications?
A Class 6 Cannabis Delivery license permits the holder to transport purchased cannabis and cannabis products from retail outlets to consumers.
When is the Start Date for Class 6 Cannabis Delivery License Applications?
Social Equity applicants will be prioritized for review and approval within a full 90-day period, which means the application window starts on September 27, 2023, and ends on December 26, 2023.
Diversly-Owned Businesses applicants will also be given priority for another 90-day period from December 27, 2023, to March 26, 2024. Wherein, starting on March 27, 2024, the application process for Class 6 Delivery licenses will be open to all other applicants.
How to Obtain a New Jersey Delivery License?
Comply with all the rules and regulations established by the CRC.
Get qualified as a Social Equity applicant, which includes Diversely Owned Businesses and Impact Zone Businesses. (Following this, generally conditional license applicants are typically prioritized over annual license applicants among Social Equity, Diversely Owned Businesses, and Impact Zone Businesses. Wherein, Microbusiness license applicants get priority compared to standard cannabis business license applicants).
To prevent delays, denials, or disqualifications, make sure your license application adheres to the current legislation and guidelines provided by the CRC.
To obtain a New Jersey delivery license, every cannabis business license applicant must include at least one owner listed in the application who has been a resident of New Jersey for a minimum of two years before the application date. In the case of microbusinesses, the license applicant or holder must be exclusively owned by individuals who are residents of New Jersey and have maintained their residency in the state for the two consecutive years immediately preceding the application.
License applicants are awarded score points under N.J.S.A. 24:6I-36. D (2) will be given priority over those without bonus points. In cases where an entity qualifies for multiple priority statuses, their application will be assessed, scored, and approved based on the highest-priority status they meet.
In accordance with N.J.A.C. 17:30-6.1(d), the Commission is responsible for evaluating, rating, and granting conditional and annual cannabis business license applications. Licenses will be awarded to applicants who score equal to or higher than a full score. Moreover, the Commission holds complete authority to determine the order in which conditional and annual cannabis business license applications are assessed, rated, approved, and granted.
What are the Mandatory Submission Requirements for All License Applicants?
Evidence of a current Business Registration Certificate filed with the DORES.
Submit Entity Disclosure Forms for the license applicant and all relevant entities, along with personal history disclosure forms for all involved individuals.
The entity applying for a license must use its official legal name, the same name it registered with in New Jersey through the Division of Revenue and Enterprise Services in the Department of the Treasury. While filling out the application, applicants can mention any other names they use in business (like trade names or “doing business as” names). But if the license is approved, they can only operate under their official legal name and not any other names.
Applicants are obligated to provide their federal and state tax identification numbers. In cases where applicants function as independent individuals without a Federal or State Tax ID, they must give their social security number. Other than this, it is essential to provide primary contact information, including both contact details and permanent address.
Applicants must provide detailed information about all Persons of Interest including their personal history disclosure forms. A complete disclosure of all relevant information about Entities of Interest is also required. The preferred location for the cannabis business must be clearly specified in the application. Lastly, an affidavit, attesting to the accuracy and truthfulness of the information within the application, and sworn by the license holder’s representative.
How Much Does It Cost?
As pe the NJCRC guidelines all fees paid by the applicants are nonrefundable, unless the Commission specifies otherwise. In case of delay or not paying the required fee on time will lead to license denial or revocation. Payments should be made using a certified check or money order, payable to the ‘Treasurer, State of New Jersey.
For those who are applying for a Conditional License, the application submission will cost $200 for Standard businesses and $100 for Microbusinesses. Wherein, for an Annual License, it is $400 for Standard businesses and $200 for Microbusiness.
For those who are applying for a Conditional License, the application approval fee will be $800 for Standard businesses and $400 for Microbusinesses. Wherein, for an Annual License, it is $1600 for Standard businesses and $800 for Microbusiness.
Image Source: www.nj.gov
Note: Microbusinesses refer to any cannabis business with fewer than 10 employees.
For those who are applying for Cannabis Delivery Services, it will cost $3000 for Standard businesses and $1000 for Microbusinesses.
Image Source: www.nj.gov
How to Win a Delivery License on the First Attempt?
Applicants’ scores will be determined by their adherence to submission instructions and compliance with Act provisions, N.J.A.C. 17:30. Gaining bonus points can improve their chances of obtaining a delivery license on the first attempt. To gain approval, applicants must receive scores on all mandatory measures. Now, let’s discuss these measures:
Applicant must have a solid business plan, regulatory compliance plan and management profile. And a proper plan to obtain liability insurance.
To secure a higher position on the priority list, applicants must craft a well-written Environmental Impact plan. This plan should include measures to mitigate any adverse impacts on the environment, minimizing employee exposure to volatile organic compounds, incorporating renewable energy initiatives (particularly for indoor cultivation), reducing emissions, and implementing water conservation and purification measures.
The Safety and security plan should cover adherence to the regular security regulations outlined in N.J.A.C. 17:30-9.10 such as alarm systems, surveillance systems, access and visitor management systems. It also includes safe vaults and cannabis storage vaults.
Standard Operating Procedures for adverse event reporting, recordkeeping, dispensing, delivering and secure transporting.
What are the Statutory Requirements for Annual License Applications?
1. Quality control and quality assurance
2. Recall plans
3. Inventory control and tracking software or systems for the warehousing, transportation, or delivery of cannabis and cannabis items
4. Odor mitigation practices
5. Onsite and offsite recordkeeping
6. Waste disposal plans
7. Compliance with applicable laws and regulations.
How Can Forte help?
Forte can assist in creating, reviewing, or improving your organization’s SOPs, which can significantly boost your chances of securing a delivery license on your initial application.