N.J. Admin. Code § 17:30-6.7

Current through Register Vol. 56, No. 8, April 15, 2024

Section 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. 24:6I-36.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, including microbusinesses that have converted into standard cannabis businesses in accordance with N.J.A.C. 17:30-7.15. 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;

ii. At least 51 percent of the owners; 51 percent of the principals; 51 percent of the employees; or 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, regardless of the number of hours worked by the employees;

4. That is a microbusiness cannabis establishment shall have its entire microbusiness physical plant occupy an area of no more than 2,500 square feet;

5. That is a microbusiness cannabis cultivator shall:

i. Have a total mature cannabis plant grow canopy 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 mature cannabis plants each month;

6. That is a microbusiness cannabis manufacturer, shall acquire no more than 1,000 pounds of usable cannabis each month;

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; and

8. That is a microbusiness cannabis wholesaler, shall acquire for resale 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.

(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.

N.J. Admin. Code § 17:30-6.7

Adopted by 53 N.J.R. 1583(a), effective 8/19/2021

Amended by 55 N.J.R. 402(a), effective 3/6/2023