N.J. Admin. Code § 17:30-7.15 - Annual microbusiness license conversion process; approval; denial; issuance

(a) After at least one year of operation, a microbusiness holding an annual license may apply to the Commission to convert to a standard cannabis business.

(b) The Commission shall review such application and verify the information contained in such application is truthful.

1. The license applicant shall cooperate with the Commission investigation and verification process and provide all information requested by Commission staff.

(c) The Commission shall approve a microbusiness for conversion to a standard cannabis business license if its application:

1. Is complete;

2. Includes:

i. Where applicable, a renovation or relocation plan that specifically addresses quality control procedures for the protection of cannabis and cannabis products from any contamination during the construction process and any other criteria the Commission requires;

ii. A recitation of the microbusiness's cultivation, manufacturing, or sales, as applicable, of the 180 days preceding the application, and an explanation for the request to convert to a standard cannabis business;

iii. An amended version of the most recent annual microbusiness license application or renewal that provides an overview of the license holder's proposed changes, including:

(1) A proposed site plan demonstrating the license holder's ability to operate as a standard cannabis business; and

(2) A proposed business plan demonstrating the license holder's ability to operate as a standard cannabis business;

iv. 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;

v. Submission of a microbusiness conversion application submission fee pursuant to N.J.A.C. 17:30-7.17; and

vi. Any other information the Commission deems relevant in determining whether to grant a conversion to the applicant; and

2. Complies with all provisions of the Act and this chapter.

(d) If the Commission determines that the criteria at (c) above have not been met, the Commission shall deny the conversion application and the license holder shall continue to operate as a microbusiness in compliance with the provisions at N.J.A.C. 17:30-6.7.

(e) If an application is denied, the Commission shall provide notice of the denial to the applicant in writing, which shall include the specific reason for the denial.

(f) The final decision on an application 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. 17:30-20.10.

(g) The Commission shall provide written notice of approval to the microbusiness, authorizing the license holder to convert to a standard cannabis business.

(h) After approving an application, the Commission may conduct an onsite assessment of the cannabis business to determine whether the cannabis business premises or administrative office, operations, plans, procedures, protocols, and actions are compliant with the Act, this chapter, and any requirements or conditions provided by the Commission, and whether they are being implemented.

(i) If the Commission has determined compliance pursuant to (h) above, the Commission shall issue an amended license to the license applicant reflecting that the licensee is a standard cannabis business.

1. The requirements specific to a microbusiness, pursuant to N.J.A.C. 17:30-6.7 shall no longer apply to such license holder.

(j) If the Commission determines that the license holder is not compliant pursuant to (h) above, the license holder shall continue to operate as a microbusiness in compliance with N.J.A.C. 17:30-6.7.

(k) Notwithstanding a microbusiness's converted operations, any microbusiness authorized to become a standard business in accordance with this subchapter shall be counted towards the percentages of licenses that are designated for and only issued to microbusinesses pursuant to N.J.S.A. 24:6I-36.f.(1).

Notes

N.J. Admin. Code § 17:30-7.15

Adopted by 53 N.J.R. 1583(a), effective 8/19/2021 Amended by 55 N.J.R. 402(a), effective 3/6/2023