New Jersey’s Cannabis Regulatory Commission (“CRC”) has announced that it will soon begin accepting applications for licensure of cannabis businesses. Recently issued regulations provide a general outline stressing what the CRC will look for in potential licensees, as well as those receiving priority in the process.
Who Gets Priority?
Specifically, Social Equity Businesses (owned by those who reside in economically disadvantaged areas or have past cannabis offense convictions), Diversely Owned Businesses (minority, woman, or disabled veteran-owned), and Impact Zone Businesses (owned by individuals who are from or who employ residents of areas with a large population, high unemployment, or a high number of crime arrests for marijuana) will receive such priority.
Both initial application and annual license fees for “microbusinesses” are one-half of the standard business fees (starting at $100). Once approved, microbusiness applicants will have 120 days to find an appropriate site, secure municipal approval, and apply for conversion to an annual license.
To remain compliant as a microbusiness, owners can have no more than 10 employees on the premises and occupy space no larger than 2,500 square feet. Annual license fees are otherwise structured on a tiered scale for larger applicants, from Tier I to Tier VI, which range up to 150,000 square foot cultivation capacity facilities.
If you are considering investing in the cannabis industry, please contact MSPC for more information on these new CRC rules and for general business and accounting advice.