N.J. Admin. Code § 17:30-7.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:30-7.6 - Conditional cannabis license phase

(a) 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.

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 license 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. 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:

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. 17:306.4;

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 for 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.

1. An impact zone business or microbusiness conditional license holder shall not make any change in the location for which the license applicant was awarded conditional license approval 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, or the microbusiness criteria, pursuant to N.J.A.C. 17:30-6.7.

i. Any such change in location during the conditional license phase for an impact zone business or microbusiness license applicant that would result in noncompliance with the impact zone business or microbusiness criteria shall result in a denial of the conversion application.

(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.

N.J. Admin. Code § 17:30-7.6

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

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