The New Jersey Economic Development Authority (NJEDA) recently announced the Cannabis Business Development Grant Program, a pilot initiative providing reimbursements of up to $75,000 for qualifying expenses incurred by licensed cannabis businesses. Eligible applicants include holders of annual licenses for Class 1 Retailer, Class 2 Manufacturer, Class 5 Cultivator, and Class 7 Testing Laboratory, provided they are in good standing with state agencies and can demonstrate at least $75,000 in eligible expenses within the past 36 months. Covered expenses include payroll, training, professional services, rent, and marketing, while construction, large equipment purchases, and inventory are excluded.

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The New Jersey Appellate Division recently affirmed a trial court’s decision to allow a New Jersey town to deny a prospective retail cannabis business to operate, determining that the municipality has the discretion to decide the necessary requirements for any cannabis retail businesses, and which cannabis retail businesses it chooses to support.

In December of 2022, a lawsuit was filed by Big Smoke LLC (“Big Smoke”), a prospective cannabis retail business, after the Township of West Milford declined to adopt a resolution in support of Blue Smoke’s cannabis retail operation in favor of another cannabis retail business in the same commercial complex. The lawsuit alleges that despite being granted a zoning permit for a retail store in December of 2021, Township officials did not adopt a resolution allowing Blue Smoke to move forward with operations in October 2022, required by the New Jersey Cannabis Regulatory Commission.

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The New Jersey Cannabis Regulatory Commission (NJ-CRC) approved regulations for cannabis consumption lounges during its January 17th meeting. These rules establish a framework for medical and adult-use operators seeking to integrate consumption spaces within their dispensaries. Upon approval by the New Jersey Office of Administrative Law, the rules will go into effect, with dispensary operators required to secure municipal approval for a consumption area to receive final clearance from the NJ-CRC.

The regulations mandate that consumption areas must be attached to a dispensary, limiting retailers to one consumption area regardless of the number of dispensaries they own. In addition, adequate ventilation through an HVAC system is mandatory to prevent smoke or vapors from affecting neighboring areas. Notably, the sale of food, alcohol, tobacco, or nicotine products within the consumption lounge is prohibited.

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Applications for wholesale, distribution, and delivery of recreational cannabis licenses are now being accepted for Social Equity and Diversity Owned Businesses by the New Jersey Cannabis Regulatory Commission (NJ-CRC.) Beginning September 27, 2023, Social Equity Businesses will be given priority review and approval as the application opens for an exclusive 90-day period. Beginning on December 27, 2023, while still accepting applications from Social Equity Businesses, the application process for Diversely Owned Businesses will also be made available. Finally, the application process will be opened to all other applicants beginning on March 27, 2024.

Applicants will be able to apply for business licenses in the three below classes.

• A Class 3 Cannabis Wholesale license allows the holder to store, buy, and sell bulk cannabis and cannabis products.
• A Class 4 Cannabis Distribution license allows the holder to transport bulk cannabis and cannabis products between cannabis cultivators, manufacturers, or retailers within New Jersey.
• A Class 6 Cannabis Delivery license allows the holder to transport retail-purchased cannabis and cannabis products to consumers.

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Source: The New Jersey Law Journal

I. Introduction

New Jersey’s recreational cannabis market is finally here and in full swing.  As the market continues to grow, cannabis license applicants must consider how zoning will impact their contemplated business operations in any given New Jersey municipality.  In short, although a license may permit you to operate a cannabis business, zoning will dictate where, when, and “how” – – that is, what conditions are attached to your operation.

To aid applicants in the real estate and zoning component of their businesses and cannabis license applications, this article broadly details the relevant zoning provisions of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA or the Act) and New Jersey’s Municipal Land Use Law, the primary zoning legislation in New Jersey, together with issues that both applicant and lawyer alike should consider when applying to a land use board to obtain approval.

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