Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
In New Jersey, cannabis is regulated by the Cannabis Regulatory Commission (CRC). Medical and adult-use cannabis are allowed. New Jersey also allows visiting out-of-state medical patients to purchase medical cannabis through a nonrenewable, six-month medical card. In order to obtain an out-of-state patient medical card, patients must consult with a registered New Jersey health care practitioner who will enroll them in NJ’s patient registry allowing them to register for a card with a current copy of their registration in the home state’s program.
New Jersey uses Metrc as their seed-to-sale state traceability system for adult-use cannabis. However, medical-only licensees are not required to use Metrc. Medical sales continue to be reported to NJ’s patient portal.
Currently in New Jersey, medical and adult-use cannabis inventory are separated and must be tracked separately. Transfers between medical and adult-use inventory are allowed. Retailers who sell both adult use and medical cannabis must certify that it has “sufficient quantities of medical cannabis or medical cannabis products available to meet the reasonably anticipated needs of registered qualifying patients...” N.J.S.A. 24:6I-46a(3)(a)(iv)
Prior to migrating to Metrc, NJ employed unique identifiers (NJ UIDs) to track cannabis. The CRC has confirmed that in lieu of using the NJ UID, operators may use Metrc package tag numbers in order to satisfy the “unique stamp or tag” requirement as set forth in N.J.A.C 17:30-16.4
The CRC requires inventory audits at least monthly and a comprehensive annual inventory. Operators must document the record of an inventory conducted and record must include:
The following is equivalent to 1 ounce of usable cannabis:
NOTE: Equivalency is based on total weight of the product sold. For products containing both THC and CBD, equivalency is based on the total weight of the concentrate. For example, a product containing 400 mg of CBD and 100 mg of THC has a total weight of 500 mg or 0.5 grams.
Local Cannabis Transfer Tax
Each municipality will set its own rate or rates, but cannot exceed 2% of the receipts from each sale by a cannabis cultivator, cannabis manufacturer, or cannabis retailer, or 1% of the receipts from each sale by a cannabis wholesaler.
No sales tax on medical cannabis
Retailers and cannabis delivery ervices may transport cannabis to patients and consumers.
Privacy/Data Retention and Log Requirement
Per N.J.A.C. 17:30-14.3(b) and (c), retailers are required to keep a log that the examination of ID and confirmation of legal age occurred. Additionally, while retailers may not keep an actual copy of any customer’s photographic ID, they may collect information typically acquired in an alcohol transaction, including the customer’s date of birth.
The CRC compiles their proposed and final statutes and regulations here
All applications (except for ROD and ROND licensees) must be accompanied by a non-refundable application fee of $1,000. Additional license fees are imposed prior to the issuance of a final license. If the applicant qualifies as a social and economic equity applicant, then a 50% reduction, waiver, or deferred fee will apply. Other reductions, waivers, or fee deferrals may be approved by the Board for those demonstrating sufficient need.
Application review for the AUCC, AUCP, and CAURD applications takes approximately 4 to 8 weeks, per the Office. After the Office reviews and processes your application, if it meets the requirements, it will then be presented to the Board for final approval. Applicants may only begin adult-use cannabis activities upon final license approval from the Board.
For the non-conditional adult-use application round opening on October 4, OCM has indicated that it would begin reviewing those retail and microbusiness applications with site control as early as November 3, with no set timeline for ultimate license issuance.
The short answer is that there are no caps on total number of licenses in the Cannabis Law. We’ve seen hundreds of AUCP and AUCC licenses issued to date. For CAURD licenses, whereas the Board initially only planned to issue 150 total licenses, they then agreed to double that number to 300, and then exceeded that number thereafter.
That being said, the Board and the Office may limit the total number of applications in a few different material ways. For instance, they may limit licenses by location or authorized regions (as they have done in the CAURD application round), size of operation or output, or other operating conditions, dependent on issues related to sustainability, public health and safety, and social and economic factors.
For the application round opening on OCtober 3, OCM has indicated that it intends on issuing more than 1,000 total licenses, estimated to be broken down as follows:
Given that New York has now held three (3) distinct adult-use application rounds (AUCC, AUCP, and CAURD), it should be noted that those three (3) applications were notably consistent. The applications are hosted on the New York Business Express website, which is largely user friendly, though subject to crashes on high volume days (such as the final date for submission of the CAURD applications).
The proposed adult-use regulations identify similar areas of information for the forthcoming license opportunities, including:
For the application period opening on October 3, the Office will initially review:
As it relates to final licensure, the Office will assess, among other things: