Want to Open A Recreational Cannabis Business in New Jersey?
New Jersey legalized medical marijuana in 2010, and although the state is no longer accepting applications for medical dispensaries, the state is on the cusp of legalizing “possession and personal use of small amounts of marijuana for persons age 21 and over.”
If it passes, Senate Bill 830 will make the Garden State a new front for recreational cannabis use. With estimated first-year revenues ranging from $60-300 million, New Jersey is a prime hub for establishing a new marijuana business, or expanding an existing business that operates in another state.
Although the bill is still being considered, recreational cannabis in New Jersey is inevitable and individuals and organizations that take action now will be best positioned carve out a slice of the new market.
The first step for anyone interested in retail marijuana is to become familiar with the various cannabis business licenses that will be available. According to the proposed legislation, four separate licenses will be offered.
Types of Cannabis Business Licenses that may be Offered in New Jersey
Class 1 Marijuana Cultivation Facility / Marijuana Producer License; Marijuana Product Manufacturing Facility / Marijuana Processor License: This license is for an entity that cultivates marijuana and sells marijuana to marijuana producers, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. Similarly, it is also for an entity that purchases marijuana; manufactures, prepares, and packages marijuana items; and sells items to other marijuana product manufacturing facilities and to marijuana retailers, but not to consumers.
Class 2 Marijuana Wholesaler License: a person or entity who sells marijuana items or marijuana paraphernalia for the purpose of resale either to a licensed marijuana wholesaler or to a licensed marijuana retailer.
Class 3 Marijuana Retailer License: an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana items from marijuana product manufacturing facilities or marijuana wholesalers and to sell marijuana and marijuana products to consumers.
Class 4 Marijuana Transportation License: an entity licensed to transport marijuana through and within the State of New Jersey and to maintain a warehouse.
Preparing For New Jersey Cannabis Licensing Possibilities
Although New Jersey is not currently accepting applications for marijuana licensing, there are steps you can take right now to be the most prepared for when the new law goes into affect.
Some of these next steps are to create a corporate structure, develop a business plan, and create an economic development plan, which includes working with local municipalities and determining the right location for your business.
The cannabis industry is complex, always evolving, and sometimes very difficult or time-consuming to navigate. At Higher Yields Consulting, we are experienced marijuana consultants providing innovative business solutions to meet all of your needs.
Whether you’re brand-new to the industry, or looking to expand, working with us will give you a competitive edge and maximize your success.