
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: August 28, 2024
Partner
201-896-7115 dmckillop@sh-law.comCannabis microbusinesses have a smaller footprint than a regular cannabis business, concerning its business operations, capacity, and quantity of product. To help foster their development, New Jersey’s cannabis regulations establish certain incentives for a micro license NJ, including significantly lower licensing costs.
Getting any startup off the ground is no easy feat. To take advantage of the cannabis licensing opportunities available for microbusinesses, it is essential to work with an experienced New Jersey cannabis attorney who can walk you through the licensing process and position your business for success.
As the name suggests, a cannabis microbusiness is a licensed business with a relatively small operation. In New Jersey, microbusinesses can operate as a cannabis cultivator, manufacturer, distributor, retailer, or delivery service. Below is a brief summary of each license category:
To be licensed as a microbusiness in any of the above categories, a New Jersey cannabis business must have no more than 10 employees at one time and a facility of no more than 2,500 square feet. Each license category also had additional restrictions, which are discussed below.
Microbusinesses may also consider applying for a conditional cannabis license. A conditional license allows you to establish your cannabis business but not legally operate it. The advantages are that a conditional license applicant does not need to own or lease a site or obtain municipal approval to receive approval. The licensing fees are also substantially reduced. This can be a good option if your business is starting to develop but isn’t quite ready to open its doors. Once you are ready to operate, you must apply for a conversion license. With a conversion license, you can legally open for business.
Microbusinesses must satisfy additional mandatory application requirements, pursuant to N.J.A.C.17:30-6.7. Specifically, you must include documentation that you and your proposed cannabis business are compliant, and will continue to comply, with the requirements for microbusinesses, which include requirements that:
There are several advantages to seeking a micro license. Microbusiness applications are prioritized over standard cannabis business applications in every category. They are also exempt from the requirement to have an attestation signed by a bona fide labor organization stating that the license applicant has entered into a labor peace agreement with the bona fide labor organization in any license application or as an ongoing material condition of maintaining a license.
Microbusinesses are also allowed to expand and grow. A microbusiness holding an annual license may submit an application to convert from a microbusiness to a standard cannabis business. There is, however, one notable restriction for microbusinesses — a licensed business may not sell or transfer its license.
Micro cannabis businesses are only required to pay 50 percent of the amount of a standard license application, renewal, or other fee. Under the CRC’s current fee schedule, the NJ micro grow license cost are as follows:
Application Fees for Micro License NJ
Licensing Fees for Micro License NJ
The full Fee Schedule is available here.
Consult With an Experienced New Jersey Cannabis Attorney
At Scarinci Hollenbeck, the attorneys of our dedicated Cannabis Law Group advise prospective cannabis businesses of all sizes. We understand the unique challenges that microbusinesses and other cannabis startups face and work diligently to tailor our services to their needs. To find out more, we encourage you to contact a member of our team today.
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