New Jersey Retail Cannabis Laws Explained

(3) In the case of an applicant for a medical cannabis dispensary permit, the operating plan summary shall include a written description concerning the applicant’s qualifications for, experience in, and knowledge of each of the following topics: (a) State-authorized dispensation of medical cannabis to qualifying patients; (b) healthcare, medicine, and treatment of patients with qualifying medical conditions; (c) medical cannabis product evaluation procedures; (d) recall plans; (e) packaging and labeling; (f) inventory control and point-of-sale software or systems for the sale of medical cannabis; (g) patient counseling procedures; (h) the routes of administration, strains, varieties, and cannabinoid profiles of medical cannabis and medical cannabis products; (i) odor mitigation practices; (j) onsite and offsite recordkeeping; (k) compliance with State and federal patient privacy rules; (l) waste disposal plans; and (m) compliance with applicable laws and regulations. d. The criteria to be developed by the commission pursuant to subsection b. of this section shall include, in addition to the criteria set forth in subsections c. and e. of this section and any other criteria developed by the commission, an analysis of the following factors, if applicable: (1) The applicant’s environmental impact plan. (2) A summary of the applicant’s safety and security plans and procedures, which shall include descriptions of the following: (a) plans for the use of security personnel, including contractors; (b) the experience or qualifications of security personnel and proposed contractors; (c) security and surveillance features, including descriptions of any alarm systems, video surveillance systems, and access and visitor management systems, along with drawings identifying the proposed locations for surveillance cameras and other security features; (d) plans for the storage of medical cannabis and medical cannabis products, including any safes, vaults, and climate control systems that will be utilized for this purpose; (e) a diversion prevention plan; (f) an emergency management plan; (g) procedures for screening, monitoring, and performing criminal history record background checks of employees; P.L. 2021, CHAPTER 16 38 (h) cybersecurity procedures, including, in the case of an applicant for a medical cannabis dispensary permit, procedures for collecting, processing, and storing patient data, and the applicant’s familiarity with State and federal privacy laws; (i) workplace safety plans and the applicant’s familiarity with federal Occupational Safety and Health Administration regulations; (j) the applicant’s history of workers’ compensation claims and safety assessments; (k) procedures for reporting adverse events; and (l) a sanitation practices plan. (3) A summary of the applicant’s business experience, including the following, if applicable: (a) the applicant’s experience operating businesses in highly-regulated industries; (b) the applicant’s experience in operating alternative treatment centers and related medical cannabis production and dispensation entities under the laws of New Jersey or any other state or jurisdiction within the United States; and (c) the applicant’s plan to comply with and mitigate the effects of 26 U.S.C. s.280E on cannabis businesses, and for evidence that the applicant is not in arrears with respect to any tax obligation to the State. In evaluating the experience described under subparagraphs (a), (b), and (c) of this paragraph, the commission shall afford the greatest weight to the experience of the applicant itself, controlling owners, and entities with common ownership or control with the applicant; followed by the experience of those with a 15 percent or greater ownership interest in the applicant’s organization; followed by significantly involved persons in the applicant’s organization; followed by other officers, directors, and current and prospective employees of the applicant who have a bona fide relationship with the applicant’s organization as of the date of the application. (4) A description of the proposed location for the applicant’s site, including the following, if applicable: (a) the proposed location, the surrounding area, and the suitability or advantages of the proposed location, along with a floor plan and optional renderings or architectural or engineering plans; (b) the submission of zoning approvals for the proposed location, which shall consist of a letter or affidavit from appropriate municipal officials that the location will conform to municipal zoning requirements allowing for such activities related to the cultivation, manufacturing, or dispensing of medical cannabis, cannabis products, and related supplies as will be conducted at the proposed facility; and (c) the submission of proof of local support for the suitability of the location, which may be demonstrated by a resolution adopted by the municipality’s governing body indicating that the intended location is appropriately located or otherwise suitable for such activities related to the cultivation, manufacturing, or dispensing of medical cannabis, cannabis products, and related supplies as will be conducted at the proposed facility. Notwithstanding any other provision of this subsection, an application shall be disqualified from consideration unless it includes documentation demonstrating that the applicant will have final control of the premises upon approval of the application, including, but not limited to, a lease agreement, contract for sale, title, deed, or similar documentation. In addition, if the applicant will lease the premises, the application will be disqualified from consideration unless it includes certification from the landlord that the landlord is aware that P.L. 2021, CHAPTER 16 39 the tenant’s use of the premises will involve activities related to the cultivation, manufacturing, or dispensing of medical cannabis and medical cannabis products. An application shall not be disqualified from consideration if the application does not include the materials described in subparagraph (b) or (c) of this paragraph. (5) A community impact, social responsibility, and research statement, which shall include, but shall not be limited to, the following: (a) a community impact plan summarizing how the applicant intends to have a positive impact on the community in which the proposed entity is to be located, which shall include an economic impact plan, a description of outreach activities, and any financial assistance or discount plans the applicant will provide to qualifying patients and designated caregivers; (b) a written description of the applicant’s record of social responsibility, philanthropy, and ties to the proposed host community; (c) a written description of any research the applicant has conducted on the medical efficacy or adverse effects of cannabis use and the applicant’s participation in or support of cannabis-related research and educational activities; and (d) a written plan describing any research and development regarding the medical efficacy or adverse effects of cannabis, and any cannabis-related educational and outreach activities, which the applicant intends to conduct if issued a permit by the commission. In evaluating the information submitted pursuant to subparagraphs (b) and (c) of this paragraph, the commission shall afford the greatest weight to responses pertaining to the applicant itself, controlling owners, and entities with common ownership or control with the applicant; followed by responses pertaining to those with a 15 percent or greater ownership interest in the applicant’s organization; followed by significantly involved persons in the applicant’s organization; followed by other officers, directors, and current and prospective employees of the applicant who have a bona fide relationship with the applicant’s organization as of the date of the application. (6) A workforce development and job creation plan, which may include information on the applicant’s history of job creation and planned job creation at the proposed facility; education, training, and resources to be made available for employees; any relevant certifications; and a diversity plan. (7) A business and financial plan, which may include, but shall not be limited to, the following: (a) an executive summary of the applicant’s business plan; (b) a demonstration of the applicant’s financial ability to implement its business plan, which may include, but shall not be limited to, bank statements, business and individual financial statements, net worth statements, and debt and equity financing statements; and (c) a description of the applicant’s plan to comply with guidance pertaining to cannabis issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal “Bank Secrecy Act”, which may be demonstrated by submitting letters regarding the applicant’s banking history from banks or credit unions that certify they are aware of the business activities of the applicant, or entities with common ownership or control with the applicant, in any state where the applicant has operated a business related to medical cannabis. For the purposes of this subparagraph, the commission shall consider only bank references involving accounts in the name of the applicant or of an entity with common ownership or control with the applicant. An applicant who does not submit the information described in this subparagraph shall not be disqualified from consideration. P.L. 2021, CHAPTER 16 40 (8) Whether any of the applicant’s majority or controlling owners were previously approved by the commission to serve as an officer, director, principal, or key employee of an alternative treatment center, or personal use cannabis establishment, distributor, or delivery service, provided any such individual served in that capacity at the alternative treatment center for six or more months. (9) Whether the applicant can demonstrate that its governance structure includes the involvement of a school of medicine or osteopathic medicine licensed and accredited in the United States, or a general acute care hospital, ambulatory care facility, adult day care services program, or pharmacy licensed in New Jersey, provided that: (a) the school, hospital, facility, or pharmacy has conducted or participated in research approved by an institutional review board related to cannabis involving the use of human subjects, except in the case of an accredited school of medicine or osteopathic medicine that is located and licensed in New Jersey; (b) the school, hospital, facility, or pharmacy holds a profit share or ownership interest in the applicant’s organization of 10 percent or more, except in the case of an accredited school of medicine or osteopathic medicine that is located and licensed in New Jersey; and (c) the school, hospital, facility, or pharmacy participates in major decision-making activities within the applicant’s organization, which may be demonstrated by representation on the board of directors of the applicant’s organization. (10) The proposed composition of the applicant’s medical advisory board established pursuant to section 15 of P.L.2019, c.153 (C.24:6I-7.5), if any. (11) Whether the applicant intends to or has entered into a partnership with a prisoner reentry program for the purpose of identifying and promoting employment opportunities at the applicant’s organization for former inmates and current inmates leaving the corrections system. If so, the applicant shall provide details concerning the name of the re-entry program, the employment opportunities at the applicant’s organization that will be made available to the re-entry population, and any other initiatives the applicant’s organization will undertake to provide support and assistance to the re-entry population. (12) Any other information the commission deems relevant in determining whether to grant a permit to the applicant. e. In addition to the information to be submitted pursuant to subsections c. and d. of this section, the commission shall require all permit applicants, other than applicants for a conditional permit, or for an entity that is a microbusiness pursuant to subsection e. of section 11 of P.L.2019, c.153 (C.24:6I-7.1), to submit an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement with such bona fide labor organization. Except in the case of an entity holding an unconverted conditional permit, the maintenance of a labor peace agreement with a bona fide labor organization shall be an ongoing material condition of maintaining a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary permit. The submission of an attestation and maintenance of a labor peace agreement with a bona fide labor organization by an applicant issued a conditional permit pursuant to subsection d. of section 11 of P.L.2019, c.153 (C.24:6I-7.1) shall be a requirement for conversion of a conditional permit into a full permit. The failure to enter into a collective bargaining agreement within 200 days after the date that a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary first opens shall result in the suspension or revocation of such permit or conditional permit.

ATC Expansion:
17:30-7.1 Expanded alternative treatment centers (a) Pursuant to N.J.S.A. 24:6I-46(a)(e)(a)(ii), the Commission shall not require a full application pursuant to N.J.A.C. 17:30-7.10 from an alternative treatment center in order for the ATC to begin engaging in the cultivation, manufacturing, retailing, wholesaling, distributing, or delivery of cannabis items, as applicable. (b) Notwithstanding (a) above, an ATC that wishes to engage in the cultivation, manufacturing, retailing, wholesaling, distributing, or delivery of cannabis items, as applicable, shall submit to the Commission: 1. A letter of intent notifying the Commission of the licenses sought by the ATC; 2. Municipal approval for each class of license sought by the ATC, which shall include: i. The ordinance(s) adopted by the municipality authorizing the operation of each class of cannabis business license being sought by the ATC, or a statement explaining that there exists no municipal ordinance prohibiting the class of cannabis business license and, thus, all classes are allowed pursuant to N.J.S.A. 24:6I-45; ii. An attestation by the ATC that, as a condition of licensure, it shall comply with all restrictions on the location, manner, and times of operation of cannabis businesses established by the municipality; and iii. Zoning approval, a resolution from the municipality’s governing body, or a letter from the highest-ranking municipal official, as applicable, that authorizes the ATC to engage in the cultivation, manufacturing, retailing, wholesaling, distributing, or delivery of cannabis items at the ATC’s current premises; 3. A certification to the Commission that the alternative treatment center has sufficient quantities of medical cannabis and medical cannabis products available to meet the reasonably anticipated needs of registered qualifying patients; 4. A certification to the Commission that the alternative treatment center shall not make operational changes that reduce access to medical cannabis for current and newly registered qualifying patients in order to operate a cannabis establishment or delivery service. Such certification shall include a detailed plan for prioritizing and meeting the needs of registered qualifying patients; 5. A list of owners, principals, management services contractors, financial sources, and vendor-contractors associated with the proposed cultivation, manufacturing, retailing, wholesaling, distributing, or delivery of cannabis items, as applicable. i. Any new owners, principals, management services contractors, financial sources, or vendor-contractors may be required to comply with the provisions at N.J.A.C. 17:30-7.11, 7.12, and 7.13; 6. An attestation signed by a bona fide labor organization stating that the ATC has entered into a labor peace agreement with such bona fide labor organization; and 7. Any other information the Commission deems relevant in determining whether to accept the ATC’s certifications. (c) In determining whether to accept the ATC’s certifications pursuant to (b) above, the Commission shall assess: 1. Total qualifying patient enrollment in the Statewide medical cannabis program; 2. Qualifying patient enrollment at the ATC; 3. Statewide inventory and inventory of the ATC; 4. Statewide sales of medical cannabis and medical cannabis products, and sales at the ATC; 5. The current medical cannabis canopy of the ATC; 6. The total medical cannabis canopy needed to serve the ATC’s qualifying patients on an ongoing basis; 7. The total medical cannabis canopy needed to serve the total number of qualifying patients in the medical cannabis program on an ongoing basis; and 8. The operational plans and capacity of the ATC to maintain or expand medical cannabis access for qualifying patients. (d) The Commission shall only accept a certification from an ATC pursuant to (c) above, when an ATC has proven, by clear and convincing evidence that engaging in the cultivation, manufacturing, retailing, wholesaling, distributing, or delivery of cannabis items, as applicable, shall not impact access for registered qualifying medical cannabis patients and shall not impact the availability of medical cannabis or medical cannabis products. (e) The Commission shall approve an expanded ATC in accordance with this subchapter where: 1. An ATC has submitted complete and accurate and verifiable information, as determined by the Commission, pursuant to (b) above; 2. The Commission accepts the ATC’s certifications, pursuant to (b), (c), and (d) above; and 3. The ATC pays the conversion fee pursuant to N.J.A.C. 17:30-7.17. (f) The Commission shall issue a written notice of its approval to an expanded ATC. (g) After the expanded ATC has completed any necessary construction or preparation of an expanded ATC, the expanded ATC shall request an onsite assessment. (h) The Commission shall conduct an onsite assessment of the expanded ATC and determine whether its premises, operations, and procedures are consistent with its application, and compliant with the Act and this chapter. (i) If the Commission determines compliance, it shall issue the cannabis license(s) to the expanded ATC. (j) The Commission may deny an expanded ATC where: 1. The Commission does not accept the ATC’s certifications pursuant to (c) and (d) above; 2. The ATC does not meet the requirements of (b) above; 3. The ATC fails to provide information, documentation, and assurances as required pursuant to P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.), or this subchapter, or as requested by the Commission; 4. The ATC fails to reveal any material fact pertaining to the ATC’s certifications; or 5. The ATC supplies information that is untrue or misleading as to a material fact pertaining to the qualification criteria for an expanded ATC. (k) If an expanded ATC is denied pursuant to this subchapter, the Commission shall provide the denial to the ATC in writing, which shall include: 1. Notice of the denial of the expanded ATC and the specific reason for the denial; and 2. The opportunity to request an administrative hearing within 45 days after the date of the denial. (l) The final decision on an expanded ATC shall be considered a final agency decision, subject to judicial review by, and of which jurisdiction and venue for such review are vested in, the Appellate Division of the Superior Court pursuant to N.J.A.C. 17:30-17.9. (m) An expanded ATC is a cannabis business and subject to all provisions of this chapter that are applicable to cannabis businesses.

Microbusiness

17:30-6.7 Microbusiness (a) “Microbusiness” means a license applicant’s or license holder’s cannabis business that: 1. Has a smaller footprint than a standard cannabis business, with respect to its business operations, capacity, and quantity of product, pursuant to N.J.S.A. 24:6I36.f and this section. (b) There shall not be any cap, limit, or other numerical restriction on the number of microbusinesses authorized to operate a cannabis business. This prohibition on a cap, limit, or other numerical restriction shall apply to every class of license issued. (c) A microbusiness applicant for a conditional or annual license or a microbusiness license holder: 1. Shall pay 50 percent of the amount of a standard license application, renewal, or other fee; 2. Shall not be required to have an attestation signed by a bona fide labor organization stating that the license applicant has entered into a labor peace agreement with such bona fide labor organization in any license application or as an ongoing material condition of maintaining a license; 3. Shall meet all the following requirements regarding owners, passive investors, principals, and employees: i. One hundred percent of the ownership interest in the microbusiness license applicant or license holder shall be held by current New Jersey resident(s) who have resided in the State for at least the past two consecutive years, at the time of application; 59 ii. At least 51 percent of the total number of persons included in the microbusiness license applicant or license holder, including all owners, principals, and employees, shall be residents of either the municipality in which the microbusiness is or will be located, or of a municipality directly bordering such municipality, at the time of the application; and iii. The microbusiness license applicant or license holder shall employ no more than 10 employees at one time; 4. Shall have its entire microbusiness facility occupy an area of no more than 2,500 square feet. i. The microbusiness facility shall include all areas within the premises that are a part of the microbusiness physical plant; and 5. That is a microbusiness cannabis cultivator shall: i. Have a total cannabis grow area that does not exceed 2,500 square feet, measured on a horizontal plane, and 24 feet, measured vertically above that plane; and ii. Possess a total of no more than 1,000 cannabis plants each month; 6. That is a microbusiness cannabis manufacturer, shall acquire no more than 1,000 pounds of usable cannabis each month; and 7. That is a microbusiness cannabis retailer, shall acquire for retail sale no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of cannabis product, or any combination thereof, each month. (d) A microbusiness holding an annual license shall not sell or transfer its license. 60 (e) A microbusiness holding an annual license may submit an application to convert from a microbusiness to a standard cannabis business and expand beyond the requirements of this section, pursuant to N.J.A.C. 17:30-7.15.

Conditional

A conditional license applicant shall submit a complete, separate application for each cannabis business license requested and for each physical address and cannabis business premises at which a license applicant seeks to operate. (b) A license applicant shall disclose and submit, as part of the conditional license application, the following submissions for the Commission’s evaluation: 1. The mailing and physical address of the license applicant’s proposed cannabis business premises; 2. The Federal and State tax identification numbers for the license applicant; 3. Documentation of a valid Business Registration Certificate on file with the Division of Revenue and Enterprise Services in the Department of the Treasury; 4. Information about the license applicant entity, including its legal name, any registered alternate name under which it may conduct business, and a copy of its articles of organization and bylaws; 5. The business plan and management operation profile for the proposed cannabis business; 6. The plan by which the license applicant intends to obtain appropriate liability insurance coverage for the proposed cannabis business; 7. A regulatory compliance plan, which shall detail the plan by which the license applicant shall comply with the remaining regulatory requirements to convert to an annual license; 8. An affidavit that the statements included in the application are true and correct, sworn by the license holder representative; 9. An authorization to release all information pertaining to the license holder as requested by the Commission, signed by the license holder representative; 10.A waiver of liability for any damages results to the license holder from any disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, of any information acquired during the licensing process, signed by the license holder representative; 11.Any applicable fees required pursuant to N.J.A.C. 17:30-7.17; and 12.Any other application requirement established by the Commission in a notice of acceptance of application published in the New Jersey Register issued pursuant to N.J.A.C. 17:30-6.1. (c) A license applicant shall disclose and submit, as part of the conditional license application, the following submissions relating to qualification, pursuant to N.J.A.C. 17:30- 7.4: 83 1. A list of all owners, principals, and employees of the license applicant, including their names, addresses, dates of birth, resumes, and a photocopy of their driver’s licenses or other state or Federal government-issued form of identification that may be used to prove each person is at least 21 years of age; 2. A list of the owners of the license applicant who have resided in this State for at least two years as of the date of the application, and documentation of such residency; 3. A list of the owners of the license applicant and the percentage of each owner’s ownership interest; 4. A list of any proposed management services contractors, financial sources, or vendor-contractors; 5. Personal history disclosure forms for any owners, principals, financial sources, or management services contractors of the license applicant, as applicable; 6. Entity disclosure forms for any owners, principals, financial sources, or management services contractors of the license applicant, including entity formation documents, any proposed or signed management services or financial source agreements, and tax returns, as applicable; 7. Proof that each owner of the conditional license applicant who has decision making authority has, for the immediately preceding taxable year, an adjusted gross income of no more than $200,000, or no more than $400,000 if filing jointly with another individual; 8. A certification that each owner of a license applicant applying for a conditional cannabis business license who has decision-making authority does not have any ownership interest in a license applicant applying for or a license holder holding an annual cannabis business license; 9. For each owner, principal, or employee of a license applicant or license holder, as well as each staff member of a license applicant’s or license holder’s management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items, written consent to be fingerprinted and to undergo a criminal history record background check and any evidence of rehabilitation pursuant to N.J.A.C. 17:30- 7.12; 10. For each owner, principal, and employee of the license applicant, certification confirming the person’s submission to the jurisdiction of the courts of the State and pledging to comply with all of the requirements of the laws of the State pertaining to the Commission; 11. For a license applicant that is a diversely owned business, the certification that the license applicant is one or more of a minority-owned business, women-owned business, or disabled veteran-owned business, as applicable; 12. For a license applicant that is an impact zone business, evidence from any qualifying owner, passive investor, or employee proving the qualification of the person under the impact zone business criteria pursuant to N.J.A.C. 17:30-6.5; 13.For a license applicant that is a social equity business, evidence from any qualifying owner or passive investor attesting to the qualification of the person under the social equity business criteria pursuant to N.J.A.C. 17:30-6.6; and 85 14. For a microbusiness license applicant, proof that at least 51 percent of the total number of persons included in the microbusiness license applicant or license holder, including all owners, principals, and employees, are residents of either of the municipality in which the microbusiness is or will be located, or of a municipality bordering such a municipality, at the time of the application. (d) A conditional license applicant shall provide the Commission with a complete disclosure that includes all true parties of interest. 1. The license applicant or license holder shall not attempt to conceal or disguise ownership or other control over its operations in its submissions, and such an attempt shall be grounds for denial of an application. (e) Application materials submitted to the Commission pursuant to N.J.S.A. 24:6I-36 and this section shall not be considered public records pursuant to N.J.S.A. 47:1A-1 et seq., or the common law concerning access to government records.

17:30-7.4 Conditional license holder qualification (a) A license applicant or license holder is qualified to hold a conditional license where: 1. Each owner, principal, employee, management services contractor, and financial source of the license applicant or license holder has complied with N.J.A.C. 17:30- 7.12; 2. No owner, principal, employee, or volunteer of the license applicant or license holder has a disqualifying conviction pursuant to N.J.A.C. 17:30-7.12(d) without evidence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(e); 86 3. No staff member of a license applicant’s or license holder’s management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items of the license applicant or license holder has a disqualifying conviction pursuant to N.J.A.C. 17:30-7.12(d) without evidence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(e); 4. At least one owner of the license applicant shall have resided in this State for at least two years as of the date of the application; 5. Each owner in the conditional license applicant who also has decision-making authority has, for the immediately preceding taxable year, an adjusted gross income of no more than $200,000 or no more than $400,000 if filing jointly with another individual; and 6. Each owner and principal of the license applicant or license holder is eligible to be an owner or principal, respectively, of the license applicant or license holder in accordance with N.J.A.C. 17:30-6.8

The conditional license phase: 1. Begins on the day that the conditional license is issued to the license applicant; and 2. Expires 120 days after the day that the conditional license was issued or at the end of an extension. 88 i. A conditional license shall not be renewed, but may be extended pursuant to this section or for good cause, as deemed necessary by the Commission. ii. A conditional license shall expire if replaced with an annual license or can be revoked at the discretion of the Commission. (b) A conditional license holder may apply for a 45-day extension of the conditional license, and the Commission may grant the extension on a case-by-case basis. (c) The Commission shall grant an extension of the conditional license where the conditional license holder has submitted a complete conditional license conversion application, during the time the complete conditional license conversion application is under consideration by the Commission. (d) During the conditional licenses phase, a conditional license holder shall: 1. Establish control of the proposed site, through lease, purchase, or other means, for the cannabis business; 2. Gain municipal approval; and 3. Develop and submit a conditional license conversion application. (e) During the conditional license phase, a conditional license holder shall not engage in purchasing, possessing, selling, cultivating, manufacturing, or selling cannabis or cannabis products. (f) During the conditional license phase, the conditional license holder may obtain additional resources by adding new loans or gifts from new or existing financial sources not listed in the conditional license application. (g) During the conditional license phase, the majority share of the ownership interest in the license holder shall remain the same as at the time of license issuance, however: 89 1. An owner or passive investor of the conditional license holder may transfer ownership interest to another qualified party; and 2. The conditional license holder may add new qualified owners and principals. (h) Notwithstanding (g) above: 1. A diversely owned business conditional license holder shall not make any ownership interest transfer that causes the license applicant to no longer comply with the diversely owned business criteria, pursuant to N.J.A.C. 17:30-6.4; 2. An impact zone business conditional license holder shall not make any ownership interest transfer that causes the license applicant to no longer comply with the impact zone business criteria, pursuant to N.J.A.C. 17:30-6.5; 3. A social equity business conditional license holder shall not make any ownership interest transfer that causes the license applicant to no longer comply with the social equity business criteria, pursuant to N.J.A.C. 17:30-6.6; 4. A microbusiness conditional license holder shall not make any ownership interest transfer that causes the license applicant to no longer comply with the microbusiness license criteria, pursuant to N.J.A.C. 17:30-6.7; and 5. A conditional license holder shall not violate the limitations on owners and principals, pursuant to N.J.A.C. 17:30-6.8. (i) A conditional license holder may apply for, and the Commission may authorize, a change in the location in which the license applicant was awarded conditional license approval to a different location, and such new location shall be reflected in the conditional license conversion application. 90 (j) During the conditional license phase, a conditional license holder may also notify the Commission of its intention to abandon the license and such license will be returned to the Commission.

The conversion application shall include the following substantive requirements: 1. All information required pursuant to N.J.A.C. 17:30-7.3, including any updates; 2. For each proposed location of a license applicant’s cannabis business premises, a description of the proposed location and its surrounding area, including the following: i. The mailing and physical address of the license applicant’s proposed location; ii. A description of the suitability or advantages of the proposed location; and 94 iii. A site plan of the proposed location, including a floor plan, which may optionally include renderings, architectural plans, or engineering plans; 3. For each proposed location of a license applicant’s cannabis business premises, evidence of compliance with local codes and ordinances including, but not limited to: i. The distance from the closest church, synagogue, temple, or other place used exclusively for religious worship; or ii. The distance to the closest school, playground, park, or child daycare facility; 4. Zoning approval, which shall consist of a letter or affidavit from appropriate officials of the municipality that the location will conform to municipal zoning requirements allowing for activities related to the operations of the proposed cannabis cultivator, cannabis manufacturer, or cannabis retailer, as will be conducted at the proposed cannabis business premises, and any variances granted concerning the operation of a cannabis business; 5. Proof of local support, which shall be demonstrated by a resolution adopted by the municipality’s governing body, or where the municipality has no governing body, a written letter of support from the municipality’s executive; 6. For each proposed location of a license applicant’s cannabis business premises, documentation demonstrating that the license applicant will have final control of the premises upon approval of the application, including, but not limited to, a lease agreement, contract for sale, title, deed, or similar documentation;7. An environmental impact plan, which includes consideration of sustainable alternatives to single-use plastic packaging; 8. A safety and security plan that conforms with N.J.A.C. 17:30-9.10; 9. A community impact, social responsibility, and research statement; 10.A workforce development and job creation plan, which includes an optional diversity plan; 11. Standard operating procedures for: i. Adverse event reporting; ii. Quality assurance and quality control; iii. Recall; iv. Packaging and labeling; v. Inventory control, storage, diversion prevention; vi. Recordkeeping; vii. Waste disposal/sanitation; viii. Cultivation, manufacturing, retail sale, delivery, secure transport, as applicable, based on the class of license sought; ix. Accounting and tax compliance; and x. The reporting of test results, as applicable, based on the class of license sought; 12.An attestation signed by a bona fide labor organization stating that the license applicant has entered into a labor peace agreement with such bona fide labor organization. i. A conditional license holder operating as a microbusiness is exempted from this requirement; 13.For a social equity business, diversely owned business, and impact zone business, evidence the license applicant is still in compliance with the requirements of the designations; and 14.Any other application requirement established by the Commission pursuant to the notice of acceptance of application published in the New Jersey Register pursuant to N.J.A.C. 17:30-6.1. (b) The conversion application shall include the annual license qualification submissions required pursuant to N.J.A.C. 17:30-7.10(d). (c) A conditional cannabis business conversion applicant shall provide the Commission with a complete disclosure that includes all true parties of interest. 1. The license applicant or license holder shall not attempt to conceal or disguise ownership or other control over its operations in its submissions, and such an attempt shall be grounds for denial of an application. (d) Application materials submitted to the Commission pursuant to N.J.S.A. 24:6I-36 and this section shall not be considered public records pursuant to N.J.S.A. 47:1A-1 et seq., or the common law concerning access to government records.

Annual license:

An applicant for an annual license shall submit a complete, separate application, on forms prescribed by the Commission, for each cannabis business license requested and for each physical address and cannabis business premises at which a license applicant seeks to operate. (b) A license applicant shall disclose and submit, as part of the annual license applications process, the following materials for the Commission’s evaluation: 1. The Federal and State tax identification numbers for the license applicant; 2. Documentation of a valid Business Registration Certificate on file with the Division of Revenue and Enterprise Services in the Department of the Treasury; 3. Information about the license applicant, including its legal name, and any registered alternate name under which it may conduct business; 4. A copy of the documents reflecting the formation of the license applicant entity, including, but not limited to, articles of incorporation or organization, charter, bylaws, stock issuance records, operating agreements, partnership agreements, other formation documents filed with the Secretary of State, and any other documents that govern the legal and ownership structure of the entity; 5. If applicable, documents from the Federal or State government recognizing the license applicant entity’s nonprofit status; 101 6. A description of the proposed location and its surrounding area, including the following: i. The mailing and physical address of the license applicant’s proposed location; ii. A description of the suitability or advantages of the proposed location; iii. A site plan of the proposed location, including a floor plan, which may optionally include renderings, architectural plans, or engineering plans; 7. Evidence of compliance with local codes and ordinances including, but not limited to: i. The distance from the closest church, synagogue, temple, or other place used exclusively for religious worship; or ii. The distance to the closest school, playground, park, or child daycare facility; 8. Zoning approval, which shall consist of a letter or affidavit from appropriate officials of the municipality stating that the location will conform to municipal zoning requirements allowing for activities related to the operations of the proposed cannabis cultivator, cannabis manufacturer, or cannabis retailer to be conducted at the proposed cannabis business premises, and any variances granted concerning the operation of a cannabis business; 9. Proof of local support, which shall be demonstrated by a resolution adopted by the municipality’s governing body, or where the municipality has no governing body, a written letter of support from the municipality’s executive; 10. Documentation demonstrating that the license applicant will have final control of the premises upon approval of the application. Documentation includes, but is not 102 limited to, a lease agreement, contract for sale, title, deed, or similar documentation; 11. Where a license applicant will lease the premises, certification from the landlord that the landlord is aware that the tenant’s use of the premises will involve activities associated with operations as a cannabis cultivator, cannabis manufacturer, or cannabis retailer. i. An application for an annual license that does not include such certification shall be disqualified from consideration; 12. The plan by which the license applicant intends to obtain appropriate liability insurance coverage for the proposed cannabis business; 13. Evidence supporting any of the following bonus point categories, as applicable: i. License applicants that are party to a collective bargaining agreement with a bona fide labor organization that currently represents, or is actively seeking to represent, cannabis workers in New Jersey; ii. License applicants that are party to a collective bargaining agreement with a bona fide labor organization that currently represents cannabis workers in another state; iii. License applicants that submit a signed project labor agreement with a bona fide building trades labor organization for the construction or retrofit of the facilities associated with the license applicant; iv. License applicants that submit a signed project labor agreement with a bona fide labor organization for any other applicable project associated with the license applicant; and 103 v. License applicants that include at least one owner lawfully residing in New Jersey for at least five years as of the date of the application; 14. An operating plan, including, as applicable, a cultivation, manufacturing, or retail sale operating plan pursuant to N.J.S.A. 24:6I-36.c(1)(b)(i), (ii), and (iii); 15. A business and financial plan; 16. An environmental impact plan, which shall, at a minimum, include consideration of sustainable alternatives to single-use plastic packaging, efforts to minimize water usage, and any other factor required by the Commission in a notice of application acceptance published in the New Jersey Register issued pursuant to N.J.A.C. 17:30-6.1; 17. A safety and security plan that conforms with N.J.A.C. 17:30-9.10; 18. A community impact, social responsibility, and research statement; 19. A workforce development and job creation plan, which may include an optional diversity plan; 20. Standard operating procedures for: i. Adverse event reporting; ii. Quality assurance and quality control; iii. Recall; iv. Packaging and labeling; v. Inventory control, storage, diversion prevention; vi. Recordkeeping; vii. Waste disposal/sanitation; 104 viii.Cultivation, manufacturing, retail sale, delivery, and/or secure transport, as applicable, based on the class of license sought; ix. Accounting and tax compliance; and x. The reporting of test results, as applicable, based on the class of license sought. 21. An attestation signed by a bona fide labor organization stating that the license applicant has entered into a labor peace agreement with a bona fide labor organization. i. This requirement does not apply to a microbusiness applying for an annual license; 22. If a license applicant intends to enter into, or has entered into, a partnership with a re-entry program for the purpose of identifying and promoting employment opportunities for currently or formerly incarcerated people at the cannabis business, the details of such partnership including: i. The name of the re-entry program; ii. The employment or training opportunities at the license applicant’s cannabis business that will be made available to the re-entry population; iii. Any other initiatives the license applicant will undertake to provide support and assistance to the re-entry population; and iv. The training and support offered or provided for the advancement of the reentry population; 23. An affidavit that the statements included in the application are true and correct, sworn by the license holder representative; 105 24. An authorization to release all information pertaining to the license holder as requested by the Commission, signed by the license holder representative; 25. A waiver of liability for any damages results to the license holder from any disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, of any information acquired during the licensing process, signed by the license holder representative; and 26.Any other information the Commission deems relevant in determining whether to grant a license to the applicant. (c) The cannabis retailer annual license application shall include a certification that the proposed cannabis retailer location is not in or upon any premises which operates a grocery store, delicatessen, indoor food market, or other store engaging in retail sales of food; or any premises in which operates a store that engages in licensed retail sales of alcoholic beverages, as defined at N.J.S.A. 33:1-1.b. (d) A license applicant shall disclose and submit, as part of the annual license application, the following submissions relating to its qualification for an annual license, pursuant to N.J.A.C. 17:30-7.11: 1. License applicant and cannabis business organizational charts identifying ownership, control, and operational structure, including owners, principals, management services contractors, managers, as well as all parent companies, subsidiaries, affiliates, predecessors, and successors of the license applicant; 2. A list of all persons that are owners, passive investors, principals, and managers of the license applicant, including their names, addresses, dates of birth, and each owner’s and passive investor’s percentage of ownership interest; 106 3. For all persons that are owners or principals of the license applicant, a copy of their driver’s license or other photo identification issued by the State, another state, or the Federal government, which shall be proof that the person is at least 21 years of age; 4. For all persons that are owners and principals of the license applicant, a completed Personal History Disclosure Form, including a resume; 5. A list of the persons that are owners of the license applicant who have resided in this State for at least two years as of the date of the application and documentation of such residency; 6. For each owner, principal, or employee of a license applicant or license holder, as well as for each staff member of a license applicant’s or license holder’s management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items, proof that the person has been fingerprinted and written consent to undergo a criminal history record background check pursuant to N.J.A.C. 17:30- 7.12; 7. For any person seeking to become an owner, principal, or employee of a license applicant or license holder who has a disqualifying conviction pursuant to N.J.A.C. 17:30-7.12(d), evidence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(e), if any; 8. For any person seeking to become a staff member of a license applicant’s or license holder’s management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items who has a disqualifying conviction pursuant to 107 N.J.A.C. 17:30-7.12(d), evidence of rehabilitation pursuant to N.J.A.C. 17:30- 7.12(e), if any; 9. For the license applicant and each of its owners, principals, or managers, a list of any criminal charges or convictions; 10. A list of entities that are owners, passive investors, principals, and management services contractors of the license applicant, including their names, addresses, and each owner’s and passive investor’s percentage of ownership interest; 11. For all entities that are an owner, principal, or management services contractor of a license applicant, a completed Entity Disclosure Form; 12. For all persons or entities that hold at least 10 percent aggregate ownership interest in or are a member of the executive team of a management services contractor of a license applicant, their names, addresses, dates of birth, positions held, percentage of ownership interest in the management services contractor entity, and a completed Personal History Disclosure Form for each person. i. Except that for a person or entity holding ownership interest in or control over a management services contractor that is a qualified institutional investor, a completed Personal History Disclosure Form for each person is not required; 13. Any management services agreement, pursuant to N.J.A.C. 17:30-6.9; 14. A list of all parent companies, subsidiaries, affiliates, predecessors, and successors of the license applicant; 15. A list that describes, beginning with the formation of the license applicant entity, any and all events such as sales, mergers, business combinations, or consolidations involving the entity, including all former names of the entity; 108 16. A list of all financial sources, including qualified institutional investors, holding debt of the license applicant. i. The nature, type, terms, covenants, and priorities of all outstanding debts of the license applicant, including, but not limited to, bonds, loans, mortgages, trust deeds, debentures, lines of credit, notes issued or executed, or to be issued or executed, or other forms of indebtedness of the license applicant or on its behalf; ii. A completed Entity Disclosure Form for each financial source, except a qualified institutional investor; and iii. A completed Personal History Disclosure Form for each financial source that is a person; 17. Any proposed or executed contract, term sheet, agreement, or side letter between an owner, principal, or financial source and another party that relates to the ownership and control structure, assets, liabilities, real or intellectual property, revenue, funding or capitalization, royalties, or profit, or future profit, of the license applicant or comparable documents that change the legal structure of the license applicant, including any financial source agreement, pursuant to N.J.A.C. 17:30- 6.10; 18. A list of all vendor-contractors with whom the license applicant has contracts or agreements; 19. For the license applicant and each of its owners, principals, managers, management services companies, parent companies, subsidiaries, affiliates, predecessors, or successors: 109 i. A list of any organizations that hold or previously held permits, licenses, or other authorizations to participate in the cultivation, manufacturing, sale, or distribution of medical cannabis or cannabis in any jurisdiction, including a foreign jurisdiction, where the person or entity serves or served as an owner, principal, or employee for six or more months; 20.For the license applicant and each of its parent companies, subsidiaries, affiliates, predecessors, or successors: i. A list of any previous violation of, or judgment, order, consent decree, consent order, sanction, or penalty pertaining to any state or Federal statute, regulation, or code; and ii. A list of all pending litigation or past litigation that concluded in the last five years, whether in the State or in another jurisdiction, in which the entity was involved; 21. A list of every financial institution at which the license applicant has had an account in the last five years; 22. A list of bankruptcy or insolvency proceedings by the license applicant, and each of its parent companies, subsidiaries, affiliates, predecessors, or successors, and a copy of any bankruptcy decree as a result of the same; 23. A list of any charitable contributions by the license applicant in the last five years; 24. A list of stocks held by the license applicant; 25. For each owner, principal, management services contractor, and employee of the license applicant, certification confirming the person’s or entity’s submission to the 110 jurisdiction of the courts of the State and agreeing to comply with all of the requirements of the laws of the State pertaining to the Commission; 26. For a license applicant that is a diversely owned business, the certification that the license applicant is a minority-owned business, woman-owned business, or disabled veteran-owned business, in accordance with N.J.A.C. 17:30-6.4; 27. For a license applicant that is an impact zone business, an attestation from any qualifying owner, passive investor, or employee attesting to their qualification under the impact zone business criteria, pursuant to N.J.A.C. 17:30-6.5; 28. For all license applicants, including a social equity business, an attestation from any qualifying owner or passive investor attesting to the qualification of the person under the social equity business criteria, pursuant to N.J.A.C. 17:30-6.6; 29. For a microbusiness license applicant, proof that at least 51 percent of the total number of persons included in the microbusiness, including all owners, principals, and employees, are residents of either of the municipality in which the microbusiness is or will be located, or of a municipality directly bordering such a municipality, at the time of the application; 30. An affirmation that the license applicant exercised reasonable care to confirm its submission information and the ability of each person or entity in its submission to serve as an owner or principal without violating N.J.A.C. 17:30-6.8; and 31. Any other application requirement established by the Commission in a notice of acceptance of application published in the New Jersey Register issued pursuant to N.J.A.C. 17:30-6.1. 111 (e) A license applicant shall provide the Commission a complete disclosure pursuant to (d) above that includes all true parties of interest. 1. The license applicant or license holder shall not attempt to conceal or disguise ownership or other control over its operations in its submissions. (f) Application materials submitted to the Commission pursuant to N.J.S.A. 24:6I-36 or this section shall not be considered public records pursuant to N.J.S.A. 47:1A-1 et seq., or the common law concerning access to government records.

Renewals:

A license holder holding an annual license, including an annual license converted from a conditional license, shall renew such annual license annually. (b) The Commission may renew a license subject to conditions set forth in this chapter. (c) A license holder shall submit a renewal application and the annual licensing fee pursuant to N.J.A.C. 17:30-7.17 no later than 90 days prior to the expiration of the current cannabis business license. (d) Pursuant to (c) above, the following may be grounds for denial of a license renewal application: 1. Failure to provide truthful, correct, and current information; 2. Failure to maintain compliance with the Act or this chapter; 129 3. Failure to maintain its diversely owned business, impact zone business, social equity business, or microbusiness status; or 4. The inclusion of a person or entity not deemed qualified to hold a license. (e) Renewal materials submitted to the Commission pursuant to N.J.S.A. 24:6I-7.2 or this section shall not be considered a public record pursuant to N.J.S.A. 47:1A-1 et seq., or the common law concerning access to government records.

No person or entity shall operate a cannabis business without a Commission-issued license. (b) A cannabis business shall only be operated under the name on the license, which shall be the legal entity name as found on the New Jersey business registration of the license holder . (c) A license holder and its owners, principals, employees, management services contractors, financial sources, and vendor-contractors shall: 140 1. Maintain qualification to hold a license pursuant to N.J.A.C. 17:30-7.4, as applicable; 2. Comply with the Act and this chapter; and 3. Cooperate with the Commission and its staff. (d) Upon request of the Commission, a license applicant or license holder shall provide, for any submission to the Commission, a redacted copy that may be released to the public. 1. Redactions shall be limited to information that is likely to be found to be exempted pursuant to N.J.S.A. 47:1A-1 et seq., or the common law on public records. (e) A license holder shall make a good faith effort to recruit and employ persons who would otherwise qualify for the provisions at N.J.A.C. 17:30-6.6(a)1 or 2. (f) A microbusiness license holder shall employ no more than 10 employees. (g) The maintenance of a labor peace agreement with a bona fide labor organization by a licensed cannabis business, including an expanded ATC, shall be an ongoing material condition of the cannabis business’s license. 1. A microbusiness is exempted from this requirement. (h) Where a majority of the employees of a cannabis business, including an expanded ATC, have voted to join a bona fide labor organization, failure to enter, or to make a good faith effort to enter, into a collective bargaining agreement within 200 days of the opening of such licensed cannabis business, may result in the suspension or revocation of the cannabis business’s license. 1. A microbusiness is exempted from this requirement. 141 (i) A license holder shall maintain sanitary conditions throughout the cannabis business premises. (j) A cannabis business shall seek to prevent the escape of odors associated with cannabis over the boundary of the property. Failure to engage in such an effort may result in sanctions, including civil monetary penalties. (k) A license holder shall implement a plan to increase sustainability in its operations, which may include, but is not limited to: 1. A waste reduction plan; 2. A water usage reduction plan; 3. Biodynamic farming; 4. A sustainable packaging plan that reduces or eliminates the use of single-use plastics and promotes the use of recyclable or green packaging; or 5. A plan to use some amount of renewable energy to power its operations. (l) A visitor entering a cannabis business premises must be accompanied by an escort with a Cannabis Business Identification Card at all times, except in the consumer area of a cannabis retailer. 1. A vendor-contractor’s staff shall be considered to be a visitor during any time present at a cannabis business premises, except if the person possesses a Cannabis Business Identification Card. (m) An expanded ATC issued cannabis business licenses pursuant to N.J.A.C. 17:30-7.1 shall be authorized to use the premises for all activities under the Act and the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.), without being required to establish or maintain any physical barriers or separations 142 between operations related to the medical use of cannabis and operations related to personal use of cannabis items. 1. As a condition of licensure, an expanded ATC shall meet the anticipated treatment needs of registered qualifying patients before meeting the retail requests of consumers, and the expanded ATC shall not make operational changes that reduce access to medical cannabis for registered qualifying patients in order to operate a cannabis business. 2. If the Commission finds an expanded ATC does not have sufficient quantities of medical cannabis or medical cannabis products available to meet the reasonably anticipated needs of qualifying patients, the Commission may issue fines, limit retail sales, temporarily suspend the expanded ATC’s cannabis business licenses, or issue any other penalties included at N.J.A.C. 17:30-17. 3. Prior to the date on which the expanded ATC’s cannabis business license is set to expire after its first year of operations, in order to renew its cannabis business license pursuant to N.J.A.C. 17:30-7.16, an expanded ATC shall: i. Certify to the Commission as to the continued material accuracy of the expanded ATC’s previously approved ATC license application and its compliance with the provisions of the Act regarding its operations concerning cannabis or cannabis items; and ii. Submit a new written approval from the municipality in which the expanded ATC is located, approving the continued operations as a cannabis business. 4. After the end of the second year of expanded ATC’s licensure, the license renewal process pursuant to N.J.A.C. 17:30-16 shall be followed. 143 5. Nothing shall authorize an alternative treatment center that has not been licensed as an expanded ATC pursuant to N.J.A.C. 17:30-7.1 to: i. Provide cannabis items to a person who is not a registered qualifying patient; ii. Purchase or acquire cannabis items in a manner or from a source not permitted under the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.); or iii. Operate on the same premises as a cannabis license applicant or license holder.

17:30-9.5 Prohibitions applicable to cannabis business (a) A license holder shall not allow any cannabis item or alcohol to be consumed on the premises of the cannabis business, or in public areas in the vicinity of such premises. (b) Sales of food, beverages, alcohol, or tobacco on the premises of a cannabis business are prohibited. (c) Entry onto the premises of a cannabis business by a person who is under the age of 21 is prohibited, unless the individual is accompanied by and supervised by a parent or legal guardian or is otherwise permitted by law. (d) A license holder and its personnel and agents shall not sell or give for consumption any cannabis items to a person under 21 years of age. (e) Pursuant to N.J.A.C. 17:30-9.4(b), a cannabis business shall not use, display, advertise, or operate under any alternate name, including, but not limited to, any doing business as name, nor shall it hold itself out to be an entity operating under an alternate name. 1. This prohibition shall not apply to any alternative treatment center that was issued a permit prior to the effective date of P.L. 2019, c. 153 (N.J.S.A. 24:6I-5.1 et seq.) and any alternative treatment center that was issued a permit subsequent to July 2, 2019, pursuant to an application submitted prior to that effective date, provided that the ATC’s alternate name was authorized by the Commission prior to August 19, 2021, the effective date of this section, and that the ATC does not change its name or alternate name subsequent to August 19, 2021, the effective date of this section.

17:30-9.6 Cannabis business operations manual (a) Each cannabis business shall develop, implement, and maintain, on the premises, an operation manual that addresses, at a minimum, the following: 1. Procedures for the oversight of the cannabis business, which shall include: i. Adverse event reporting; ii. Quality assurance and quality control; iii. Recall of cannabis items as needed or directed; iv. Packaging and labeling of cannabis items; v. Inventory control, storage, diversion prevention; vi. Waste disposal/sanitation; vii. Accounting and tax compliance; and viii.Reporting of test results, as applicable, based on the class of license sought; 2. Procedures for safely cultivating, manufacturing, or selling cannabis, as applicable; 145 3. Procedures to ensure accurate recordkeeping, including inventory procedures to ensure that quantities cultivated do not suggest redistribution; 4. Employee, visitor, and facility security policies; 5. Safety procedures, including a disaster plan with procedures to be followed in case of fire or other emergencies, and personal safety and crime prevention techniques; and 6. A description of the cannabis business’s: i. Hours of operation and after-hour contact information; ii. Fee schedule; iii. Confidentiality and privacy standards regarding cannabis business operations and consumers, as applicable; iv. For a cannabis retailer, criteria for refusing service to a consumer pursuant to unacceptable behavior; and v. Procedures for ensuring consumers comply with cannabis business age verification policies. (b) The license holder shall ensure that the operations manual of the cannabis business is available for inspection by the Commission, upon request

17:30-9.10 Security (a) Each cannabis business shall provide effective controls and procedures to guard against unauthorized access to the premises or the business’s electronic systems, theft, and diversion of cannabis. Such controls may include, but are not limited to, systems to protect against electronic records tampering. 151 (b) At a minimum, each cannabis business shall: 1. Install, maintain in good working order, and operate a safety and security alarm system at its premises that will provide suitable protection against theft and diversion and that provides, at a minimum: i. Immediate automatic or electronic notification to alert cannabis business personnel and State or local police agencies to an unauthorized breach of security or an alarm or system failure at the cannabis business; and ii. A backup system that activates immediately and automatically upon a loss of electrical support and that immediately issues either automatic or electronic notification to State or local police agencies of the loss of electrical support; 2. Implement appropriate security and safety measures to deter and prevent the unauthorized entrance into areas containing cannabis and the theft of cannabis; 3. Implement security measures that protect the premises, consumers, and cannabis business personnel; 4. Establish a protocol for testing and maintenance of the security alarm system; 5. Conduct maintenance inspections and tests of the security alarm system at the cannabis business's authorized location at intervals not to exceed 30 days from the previous inspection and test and promptly implement all necessary repairs to ensure the proper operation of the alarm system; 6. In the event of a failure of the security alarm system due to a loss of electrical support or mechanical malfunction that is expected to last longer than eight hours: i. Notify the Commission pursuant to N.J.A.C. 17:30-9.11; and 152 ii. Provide alternative security measures approved by the Commission or close the authorized physical addresses impacted by the failure or malfunction until the security alarm system is restored to full operation; 7. Keep access from outside the premises to a minimum and ensure that access is well controlled; 8. Limit entry into areas where cannabis is held to authorized personnel; and 9. Equip interior and exterior premises with electronic monitoring, video cameras, and panic buttons. i. A video surveillance system shall be installed and operated to clearly monitor all critical control activities of the cannabis business and shall be in working order and operating at all times. The cannabis business shall provide access for remote viewing by the Commission. This system shall be approved by the Commission prior to license issuance. ii. The original tapes or digital pictures produced by this system shall be stored in a safe place with a 30-day archive; 10.Keep the outside areas of the premises and its perimeter well-lighted. i. Exterior lighting must be sufficient to deter nuisance and criminal activity and facilitate surveillance and must make reasonable efforts to not disturb surrounding businesses or neighbors; and ii. The video surveillance system shall be supported by adequate security lighting, which shall illuminate all entrances and exits, and which may be modified, as necessary, to include motion control sensors to protect cultivation light-dark cycles, as applicable; and 153 11.Provide law enforcement and neighbors within 100 feet of the cannabis business with the name and phone number of a staff member to notify during and after operating hours to whom they can report problems with the establishment. (c) The security alarm system and video surveillance system pursuant to (b) above shall be continuously monitored, 24 hours a day, seven days a week. 1. Monitoring of the security alarm system and video surveillance system may be conducted off-site.

Registered medical cannabis patients can purchase up to 3 ounces of cannabis or 3 ounces of marijuana products every 30 days.

Recreational cannabis consumers are allowed to possess up to 1 ounce of usable cannabis or its equivalent.

That means up to:

• 1 ounce of dried flower, or

• 5 grams of concentrates (or concentrates in a solution), resins, or oils and other liquid forms, or

• 1000mg of ingestible products (10 100mg packages) like gummies.

A purchase of a combination of products may be 1/2 ounce of dried flower plus 2 1/2 grams of concentrate, or 5 packages of gummies and 1/2 ounce of dried flower.

It is illegal for any person to grow even a single cannabis plant in the state of New Jersey, except for those with an approved cultivator license.

Growing a marijuana plant is a third-degree crime. If caught, the grower can be punished by up to five years in prison and a $25,000 fine.

The legalization of recreational cannabis in New Jersey happened in 2020, but the sale of legal cannabis products to persons 21 years or older did not begin until April 21, 2022. Cannabis is now legal in the state of New Jersey both medically and recreationally.

Businesses with the proper licensing and approval are legally allowed to sell cannabis either medically or recreationally (depending on their license). The following 6 classes of license types are available for personal use licensed businesses under the CREAMM Act:

• Class 1- Cultivator (grow)

• Class 2- manufacturer (produce)

• Class 3-Wholesaler (buy, store, sell, or otherwise transfer personal use cannabis items between cultivators, manufacturers, wholesalers and retailers)

• Class 4-Distributor (transport cannabis in bulk between cultivators, manufacturers wholesalers, and retailers)

• Class 5-Retailer (purchase personal use cannabis and sell to consumers)

• Class 6-Delivery (transport consumers’ purchases from retailer to consumer)

You are allowed to consume legal marijuana, cannabis flower, concentrates, edibles, etc. on private property. Note that property owners have the right to restrict cannabis use if it occurs on their property. You may also use, smoke, eat, or vape in dispensaries that are licensed and zoned for onsite consumption.

As of July 1, 2022, medical cannabis in the state of New Jersey is no longer subject to sales tax.

Recreational cannabis in New Jersey is taxed at the state’s 6.625% sales tax plus a social equity excise fee of 1/3 of 1%.

Yes! Flowhub was the first integrator with Metrc (New Jersey’s track and trace program), so we have a deep understanding of how to keep New Jersey dispensaries compliant. We also are compliant with the state’s unique cannabis regulations.