Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

What is the Process for Obtaining New Jersey Marijuana Dispensary Licenses?

Author: Daniel T. McKillop

Date: May 7, 2018

Key Contacts

Back

Opportunities to Apply for Recreational Marijuana Retailer Licenses and Medical Marijuana Dispensary Licenses are on the Horizon

New Jersey is working toward legalization of recreational marijuana and the State is actively expanding its medical marijuana program. Licensing of marijuana retailers and additional medical dispensaries will be critical components of these efforts. Two bills currently in committee give indications of how New Jersey plans to proceed with such licensing.

What is the Process for Obtaining Marijuana Dispensary Licenses in NJ?
Photo courtesy of Robert Nelson (Unsplash.com)
  • Senate Bill 830: The proposed bill, introduced by Sen. Nicholas Scutari, would allow New Jersey residents over 21 to possess up to 1 ounce of cannabis, 16 ounces of infused solid products, or 72 ounces in liquid form. It would levy a seven percent tax upon cannabis and cannabis products and establish the Division of Marijuana to oversee the legal cannabis industry. S830 also creates a licensing scheme for cannabis producers, processors, wholesalers, retailers, and transporters. All prospective licensees must complete application requirements, meet residency requirements, and undergo a criminal history record background check. The bill would require at least one dispensary in each county, but does not cap the number of dispensaries. SB 830 is pending before the Senate Judiciary Committee. 
  • Assembly Bill 3581: Sponsored by Assemblyman Reed Gusciora, A3581 is similar to Sen. Scutari’s bill in several respects. A3581 would legalize possession, personal use, cultivation, manufacture and distribution of small amounts of marijuana for persons age 21 and over, would create the Division of Marijuana Enforcement, and would establish a similar licensing structure for growers, transporters, and dispensaries. However, A3581 would also allow New Jersey residents to grow up to six cannabis plants in an enclosed space at their home, and would also impose lower taxes than S830. In addition, A3581 contains provisions that would allow for licensing of 15 marijuana cultivators for the first two years the law is effective, divided evenly among northern, central and southern New Jersey, and an additional 10 cultivators after the first two years.A3581 would also authorize as many as 400 retail marijuana dispensaries, 10 in each of New Jersey’s 40 legislative districts, with a minimum of two dispensaries in each. The bill is currently pending before the Assembly Oversight, Reform and Federal Relations Committee.

Expansion of Medical Marijuana in NJ

As discussed in greater detail in a prior article, Gov. Murphy issued an executive order shortly after his inauguration directing the New Jersey Department of Health (DOH) to conduct a comprehensive review of the Medical Marijuana Program (MMP). The DOH recently issued a report setting forth more than 20 recommendations. Of these, several have been implemented with immediate effect, including the addition of five new categories of medical conditions (anxiety, migraines, Tourette’s syndrome, chronic pain related to musculoskeletal disorders, and chronic visceral pain) to the list of qualifying conditions eligible for marijuana prescription, reduction of fees for patients, and allowing existing medical Alternative Treatment Centers (ATCs) to apply to open satellite locations. Other recommendations by the DOH pertain to regulatory changes that will go through the rulemaking process and proposals that require legislative approval.

If you are interested in learning more about Assembly Bill No. 3740 and No. 3437, which are relevant to the expansion of medical marijuana in New Jersey, a PDF containing specific details regarding both bills can be found by clicking (Information on proposed Medical Marijuana bills in New Jersey). An additional PDF which includes a summary of the bills can be found by clicking (Summary of the proposed Medical Marijuana bills in New Jersey).

Opportunities to apply for recreational marijuana retailer licenses and medical marijuana dispensary licenses are on the horizon. The Scarinci Hollenbeck Cannabis Law Practice group will be continuously tracking developments and all relevant. We encourage current and prospective members of the New Jersey cannabis industry to check back regularly for updates.

If you have any questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.

This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:

Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
When a Child Turns 18: The Gap in Your Family’s Estate Plan post image

When a Child Turns 18: The Gap in Your Family’s Estate Plan

Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]

Author: George McGowan

Link to post with title - "When a Child Turns 18: The Gap in Your Family’s Estate Plan"
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"
10 Common Issues in Franchise Disputes post image

10 Common Issues in Franchise Disputes

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]

Author: Paul Grossman

Link to post with title - "10 Common Issues in Franchise Disputes"
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together post image

Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]

Author: Sean M. Pena

Link to post with title - "Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!