In a recent JD Supra article titled “New Jersey CRC to Open Applications for Cannabis Consumption Areas: Key Details You Need to Know,” Natalie Diaz of Mandelbaum Barrett PC’s Cannabis Hemp and Psychedelics group provides an insightful overview of the upcoming application process for cannabis consumption area endorsements in New Jersey. The New Jersey Cannabis Regulatory Commission (CRC) has announced that starting January 2, 2025, applications will be accepted to establish regulated spaces where adults aged 21 and older can consume cannabis products purchased from licensed dispensaries.
Application Timeline and Eligibility:
- January 2, 2025: Applications open exclusively for Social Equity designated applicants.
- April 2, 2025: Applications expand to include Diversely Owned Businesses and microbusinesses, in addition to Social Equity Businesses.
- July 2, 2025: All other Class 5 retailers become eligible to apply, regardless of designation status.
It’s important to note that only holders of Class 5 retail licenses are eligible to apply for these endorsements; standalone consumption area endorsements are not permitted.
Regulatory Details:
The CRC has not imposed a statewide cap on the number of cannabis consumption areas. However, each entity is limited to operating only one consumption area, irrespective of the number of Class 5 cannabis retailer licenses or medicinal cannabis dispensary permits they hold. The endorsement is valid for one year and can be renewed annually. The application fee totals $1,000, comprising a $200 submission fee and an $800 payment upon approval. Annual licensing fees are set at $1,000 for microbusinesses and $5,000 for standard businesses.
Municipal Considerations:
Both the CRC and the municipality where the consumption area is proposed must approve the endorsement application. Municipalities have the authority to authorize or prohibit cannabis consumption areas through local ordinances or regulations. These local laws may dictate aspects such as location, operating hours, and minimum distance requirements from schools, daycare facilities, playgrounds, and places of worship. Applicants are responsible for ensuring compliance with all local regulations, including time, place, and manner restrictions.
Design and Compliance:
Cannabis consumption areas can be either indoor or outdoor. Indoor areas must comply with laws applicable to cigar lounges and adhere to the Smoke-Free Air Act. Outdoor areas are required to be partially enclosed by barriers, walls, or fences to prevent public visibility and access.
As the application windows approach, it’s crucial for prospective applicants to thoroughly understand both state and local regulations to ensure compliance and increase the likelihood of approval. Engaging with legal experts and staying informed about updates from the CRC will be essential steps in navigating this evolving landscape.
You can contact Natalie Diaz at 973-852-4235 or at ndiaz@mblawfirm.com.