The New Jersey Cannabis Regulatory Commission (Commission or CRC) will begin accepting cannabis consumption area applications beginning January, 2025. The CRC officially approved this motion back in January 2024 with the Notion of Adoption of the Cannabis Consumption Area Rules, but the application process for the license had yet to be created. The public now has a clearer understanding following the release of the Notice of Application Acceptance (NOAA) through a CRC newsletter that was distributed December, 2024.

What is a cannabis consumption area?

A consumption area, or “consumption lounge”, allows adults 21 years of age and older to ingest, smoke, and/or vape cannabis products in a communal space. Most consumption areas are connected to a dispensary where guests can purchase and use cannabis products before visiting the lounge area. Social interaction with other cannabis users is a key benefit for consumption areas, encouraging unique events and a plethora of tourists to the hosting city. According to the Marijuana Policy Project, 12 states across the US currently allow cannabis areas.

However just like bars, there are also liabilities associated with cannabis consumption areas. Those liabilities include guests who may leave the lounge while under the influence, the dangers of smoke inhalation, and possible cannabis use by minors. Strict regulations for consumption lounges should be followed to limit these liabilities and keep the public safe.

Application Schedule

Unfortunately, not everyone is qualified to submit their applications early. Submissions for a cannabis consumption area license in New Jersey will be accepted on a staggered basis, according to the NOAA. The first round, beginning January 2, 2025 at 9:00 a.m. ET, will only accept social equity business applicants. Diversely owned businesses and microbusinesses will be able to apply during the second round, beginning April 2, 2025 at 9:00 a.m. ET, while the general public will be able to submit their applications beginning July 2, 2025, at approximately 9:00 a.m. ET.

An entity may only operate one cannabis consumption area, regardless of how many cannabis licenses or permits they may have.

There is an application fee of $200 upon submission, and an additional $800 upon license approval. The annual licensing fee thereafter is set at $1,000 for microbusinesses and $5,000 for standard businesses.

Application Requirements

There are a total of eight documents that must be submitted for a cannabis consumption area license, six of which must be written as a standard operating procedure (SOP). The deliverables are listed below:

Business and Operating Plan
Consumption Area Floor Plan
SOP: Transfer of Cannabis Items from Retail to Consumption Area
SOP: Good Faith Efforts
SOP: Safe Consumption
SOP: Age Verification and Access to Cannabis Consumption Area
SOP: Destruction of Cannabis Items
SOP: Emergency Services

Each deliverable has its own rubric that aligns with the CRC’s Rules, totaling an overall score of 80 points. Licenses will be awarded via a merit-based process by the CRC, rather than winners being drawn through a lottery.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 37 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!