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The basics:

• All NJ dispensaries can apply for consumption lounge licenses July 2
• $1,000 fee split between application and final approval
• CRC received four applications so far; review set for July 10
• Local municipal approval required; no statewide cap imposed

The New Jersey Cannabis Regulatory Commission will soon begin accepting applications for on-site consumption lounges from all licensed cannabis dispensaries across the state.

The CRC opened the process first to social equity applicants in January and then diversely owned business and microbusinesses in April. Now, the regulatory board will allow all Class 5 retailers to apply starting July 2.

The $1,000 fee consists of $200 to submit an application and $800 once approved, the CRC said.

There’s also an annual licensing fee of $1,000 for microbusinesses and $5,000 for standard businesses, according to the CRC.

In addition to being “a good business opportunity for some cannabis retailers,” the commission has said it believes the designated spaces “are considered a crucial tool for providing equitable access for consuming adults since some – such as renters – cannot consumer cannabis in their homes.”

A CRC spokesperson said the state has received four applications for consumption area endorsements so far. It will consider them at its July 10 meeting.

Local limits

Since it’s up to municipalities in New Jersey to determine limits on the number of cannabis businesses within their borders, the state does not have a cap on the total number of consumption areas statewide. Currently, New Jersey is home to more than 200 legal cannabis dispensaries.

Under the framework developed by the CRC, dispensaries that wish to set up spaces on premises for customers to use cannabis must secure local approval.

Businesses have flexibility in their operational decisions, such as hours of operation, fees to enter a consumption area, priority access to medicinal patients and authorizing paid events.

All dispensaries must, however, adhere to any restrictions imposed by the municipality. Those include, but are not limited to, restricting the number of consumption areas allowed in a town, business signage and communication with municipal emergency services, according to the CRC.

Other cannabis consumption area rules include:

• Dispensaries may not sell food, but patrons may bring their own food or have food delivered there
• Businesses must allow medicinal cannabis patients to bring cannabis items from other retailers for their own use
• The sale of tobacco products and alcohol is prohibited
• Patrons must be 21 years or older
• Photo identification is required for entry

Across the U.S., only 12 other states have regulations providing for an on-site use option at dispensaries: Alaska, California, Colorado, Nevada, Illinois, Massachusetts, Michigan, Minnesota, Missouri, New Mexico, New York and Nevada.