NJAC 1730 Personal Use Cannabis.pdf

PERSONAL USE CANNABIS RULES

30-1 Supp. 3-6-23

CHAPTER 30

PERSONAL USE CANNABIS RULES

Authority

N.J.S.A. 24:6I-31 et seq.

Source and Effective Date

R.2023 d.034, effective February 8, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Chapter Expiration Date

Chapter 30, Personal Use Cannabis Rules, expires on February 8,

2030.

Chapter Historical Note

Chapter 30, Urban Enterprise Zone Authority, was adopted as R.1987

d.203, effective May 4, 1987. See: 18 N.J.R. 2191(b), 19 N.J.R. 773(a).

Pursuant to Executive Order No. 66(1978), Chapter 30 was readopted as

R.1992 d.161, effective March 11, 1992. See: 24 N.J.R. 343(a), 24

N.J.R. 1375(a).

Pursuant to Executive Order No. 66(1978), Chapter 30, Urban Enter-

prise Zone Authority, expired on March 11, 1997.

Chapter 30, Personal Use Cannabis Rules, was adopted as special new

rules effective August 19, 2021 (to expire August 19, 2022). See: 53

N.J.R. 1583(a).

Public Notice: Application Acceptance for Adult-Use Cannabis Busi-

nesses. See: 53 N.J.R. 2095(b).

Chapter 30, Personal Use Cannabis Rules, was readopted as R.2023

d.034, effective February 8, 2023. As a part of R.2023 d.034, Subchapter

12, Cannabis Wholesaler Authorized Conduct, Subchapter 13, Cannabis

Distributor Authorized Conduct, and Subchapter 15, Cannabis Delivery

Service Authorized Conduct, were adopted as new rules, and former

Subchapter 12, Cannabis Retailer Authorized Conduct, was recodified to

Subchapter 14, former Subchapter 13, Release for Distribution; Packag-

ing and Labeling of Cannabis Items, was recodified to Subchapter 16,

former Subchapter 14, Advertising, was recodified to Subchapter 17,

former Subchapter 15, Licensing of Testing Laboratories, was recodified

to Subchapter 18, former Subchapter 16, Personal Use Usable Cannabis

and Cannabis Product Testing Procedures, was recodified to Subchapter

19, and former Subchapter 17, Monitoring, Enforcement Actions, and

Appeal Rights, was recodified to Subchapter 20, effective March 6,

2023. See: Source and Effective Date. See, also, section annotations.

Public Notice: Application Acceptance for Adult-Use Cannabis Busi-

nesses. See: 55 N.J.R. 499(d).

CHAPTER TABLE OF CONTENTS

SUBCHAPTER 1. GENERAL PROVISIONS

17:30-1.1 Purpose and scope

17:30-1.2 Definitions

17:30-1.3 Construction and amendments

17:30-1.4 Severability and preemption

SUBCHAPTER 2. CONSUMER AND LICENSE HOLDER

PROTECTIONS; CONSUMER PROHIBITIONS

17:30-2.1 Consumer and license holder criminal protections

17:30-2.2 Consumer and under-age person prohibitions

17:30-2.3 Consumer and license holder civil protections

SUBCHAPTER 3. ORGANIZATION AND OPERATION OF

THE COMMISSION

17:30-3.1 Powers, duties, and responsibilities

17:30-3.2 Expenses, grants, contributions, use of fees

17:30-3.3 Commission activities associated with the personal use

of cannabis

17:30-3.4 Social equity excise fee

17:30-3.5 Cannabis Regulatory, Enforcement Assistance, and

Marketplace Modernization Fund

17:30-3.6 Designated inventory tracking system

17:30-3.7 Waiver

17:30-3.8 Petitions for rulemaking; purpose and scope

17:30-3.9 Petitions for rulemaking; procedure

17:30-3.10 Extension of public comment period on a proposed rule

SUBCHAPTER 4. INDEPENDENT STUDY; COMMISSION

REPORTING

17:30-4.1 Independent study

17:30-4.2 Commission reporting

SUBCHAPTER 5. MUNICIPAL AUTHORITY

17:30-5.1 Municipal authority

SUBCHAPTER 6. CANNABIS BUSINESS LICENSING

GENERAL TERMS

17:30-6.1 Cannabis business licensing process; application priori-

ty review and approval

17:30-6.2 Cannabis business licensing lottery

17:30-6.3 Municipal preference

17:30-6.4 Diversely owned businesses

17:30-6.5 Impact zone business

17:30-6.6 Social equity business

17:30-6.7 Microbusiness

17:30-6.8 Limitations on license applicants, license holders, own-

ers, principals, passive investors, financial sources,

management services contractors, and vendor-

contractors

17:30-6.9 Management services agreements

17:30-6.10 Financial source agreements

SUBCHAPTER 7. CANNABIS BUSINESS CONDITIONAL

AND ANNUAL LICENSING PROCESS

17:30-7.1 Expanded alternative treatment centers

17:30-7.2 Conditional cannabis business license application sub-

mission and approval or denial

17:30-7.3 Conditional cannabis business license application

17:30-7.4 Conditional license holder qualification

17:30-7.5 Conditional cannabis business license acceptance and

issuance

17:30-7.6 Conditional cannabis license phase

17:30-7.7 Conditional cannabis business conversion application

submission; approval; denial; acceptance; inspection;

issuance; and commencement of cannabis business

operations

17:30-7.8 Conditional cannabis business conversion application

17:30-7.9 Annual cannabis business license application submis-

sion, approval, denial

17:30-7.10 Annual cannabis business license application

17:30-7.11 Qualification for an annual cannabis business license

17:30-7.12 Criminal history background check

17:30-7.13 Probity review

17:30-7.14 Annual cannabis business license acceptance; inspec-

tion; issuance; commencement of operations

17:30-7.15 Annual microbusiness license conversion process;

approval; denial; issuance

17:30-7.16 Renewals

17:30-7.17 Cannabis business and testing laboratory fees

TREASURY—GENERAL

Supp. 3-6-23 30-2

SUBCHAPTER 8. CANNABIS BUSINESS IDENTIFICA-

TION CARDS

17:30-8.1 Commission issuance of Cannabis Business Identifica-

tion Cards; expiration

17:30-8.2 Notice to Commission when employment or affiliation

ceases

17:30-8.3 Surrender of a Cannabis Business Identification Card

SUBCHAPTER 9. CANNABIS BUSINESS LICENSE HOLD-

ER MATERIAL CONDITIONS AND REQUIREMENTS

17:30-9.1 Cannabis business premises

17:30-9.2 Changes to license applicant or license holder; approv-

al and notice; provisional approval

17:30-9.3 Transfers of ownership interest

17:30-9.4 Ongoing material conditions and general requirements

applicable to cannabis business license holders

17:30-9.5 Prohibitions applicable to a cannabis business

17:30-9.6 Cannabis business operations manual

17:30-9.7 Cannabis business recordkeeping

17:30-9.8 Cannabis business training

17:30-9.9 Cannabis business workplace alcohol and drug policy

and smoke-free workplace policies; employee assis-

tance program

17:30-9.10 Security

17:30-9.11 Reportable events involving risk of inventory loss

17:30-9.12 Accessibility of cannabis item storage areas

17:30-9.13 Inventory

17:30-9.14 Destruction or disposal of cannabis waste and hazard-

ous waste; expiration of license procedures

17:30-9.15 Secure transport

17:30-9.16 Cannabis business complaint process

17:30-9.17 Cannabis business recall process

SUBCHAPTER 10. CANNABIS CULTIVATOR AUTHOR-

IZED CONDUCT

17:30-10.1 Cannabis cultivator premises

17:30-10.2 Cannabis cultivator authorized conduct; prohibitions

17:30-10.3 Additional outdoor cultivation requirements

17:30-10.4 Cannabis cultivator production management tiers

17:30-10.5 Packaging, labeling, release for distribution

17:30-10.6 Cannabis cultivator recordkeeping

17:30-10.7 Cannabis cultivator storage of cannabis; quarantine

17:30-10.8 Cannabis cultivator inventory

17:30-10.9 Cannabis cultivator quality control; pesticide use lim-

ited

SUBCHAPTER 11. CANNABIS MANUFACTURER AU-

THORIZED CONDUCT

17:30-11.1 Cannabis manufacturer premises

17:30-11.2 Cannabis manufacturer authorized conduct; prohibi-

tions

17:30-11.3 Cannabis manufacturer equipment

17:30-11.4 Quality control

17:30-11.5 Prohibited manufacturing; authorized forms; authorized

amounts

17:30-11.6 Ingredients in cannabis products

17:30-11.7 Cannabis electronic smoking devices

17:30-11.8 Expiration dates

17:30-11.9 Packaging; labeling; release for distribution

17:30-11.10 Cannabis manufacturer storage of cannabis; cannabis

products; quarantine

17:30-11.11 Health and safety standards

17:30-11.12 Manufacturing personnel: manufacturing supervisor

17:30-11.13 Cannabis manufacturer recordkeeping; audit trail;

manufacturing record

SUBCHAPTER 12. CANNABIS WHOLESALER AUTHOR-

IZED CONDUCT

17:30-12.1 Cannabis wholesaler premises

17:30-12.2 Cannabis wholesaler authorized conduct

17:30-12.3 Cannabis wholesaler recordkeeping

SUBCHAPTER 13. CANNABIS DISTRIBUTOR AUTHOR-

IZED CONDUCT

17:30-13.1 Cannabis distributor premises

17:30-13.2 Cannabis distributor authorized conduct

17:30-13.3 Cannabis distributor recordkeeping

17:30-13.4 Cannabis distributor storage of cannabis items

17:30-13.5 Cannabis distributor inventory

SUBCHAPTER 14. CANNABIS RETAILER AUTHORIZED

CONDUCT

17:30-14.1 Cannabis retailer premises

17:30-14.2 Cannabis retailer authorized conduct; prohibitions

17:30-14.3 Cannabis retailer sale to a consumer

17:30-14.4 Curbside retail sales

17:30-14.5 Cannabis retailer recordkeeping; reporting

17:30-14.6 Cannabis retailer consumer education

17:30-14.7 Cannabis retailer storage

17:30-14.8 Home delivery

SUBCHAPTER 15. CANNABIS DELIVERY SERVICE AU-

THORIZED CONDUCT

17:30-15.1 Cannabis delivery service authorized conduct

17:30-15.2 Cannabis delivery to a consumer

17:30-15.3 Cannabis delivery service recordkeeping

17:30-15.4 Cannabis delivery service consumer education

17:30-15.5 Cannabis delivery service inventory

SUBCHAPTER 16. RELEASE FOR DISTRIBUTION;

PACKAGING AND LABELING OF CANNABIS

ITEMS

17:30-16.1 Processing of cannabis items; release for distribution

17:30-16.2 Cannabis item packaging requirements

17:30-16.3 Cannabis item labeling requirements

17:30-16.4 Tax stamp and tracking

17:30-16.5 Cannabis item packaging and labeling; prohibitions

17:30-16.6 Cannabis item packaging and labeling; universal sym-

bol

SUBCHAPTER 17. ADVERTISING

17:30-17.1 Purpose

17:30-17.2 General advertising requirements and prohibitions

SUBCHAPTER 18. LICENSING OF TESTING LABORATO-

RIES

17:30-18.1 Notice of testing laboratory application licensing

17:30-18.2 Testing laboratory application; approval; denial; issu-

ance of license

17:30-18.3 Testing laboratory license qualification

17:30-18.4 License term; license renewal

17:30-18.5 Testing laboratory inspection; authorized conduct;

ongoing material conditions

SUBCHAPTER 19. PERSONAL USE USABLE CANNABIS

AND CANNABIS PRODUCT TESTING PROCE-

DURES

17:30-19.1 Commission quality control testing; sample collection;

chain of custody

17:30-19.2 Testing of every batch and lot

17:30-19.3 Testing laboratory sample collection; chain of custody

17:30-19.4 Testing laboratory procedures and specifications for

testing usable cannabis and cannabis products

17:30-19.5 Retention samples and stability testing

17:30-19.6 Written reports

17:30-19.7 Testing laboratory recordkeeping

17:30-19.8 Testing laboratory testing requirements transition peri-

PERSONAL USE CANNABIS RULES 17:30-1.2

30-3 Supp. 3-6-23

SUBCHAPTER 20. MONITORING, ENFORCEMENT AC-

TIONS, AND APPEAL RIGHTS

17:30-20.1 Purpose

17:30-20.2 Definitions

17:30-20.3 Onsite assessment

17:30-20.4 Notice of violation; corrective action

17:30-20.5 Enforcement action and sanctions for noncompliance

17:30-20.6 Civil monetary penalties; summary proceedings

17:30-20.7 Classification of violations

17:30-20.8 Summary suspension of a license

17:30-20.9 Revocation of a license

17:30-20.10 Appeal rights

——————

SUBCHAPTER 1. GENERAL PROVISIONS

17:30-1.1 Purpose and scope

(a) This chapter implements the Cannabis Regulatory, En-

forcement Assistance, and Marketplace Modernization Act,

P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq).

(b) This chapter is applicable to the development, expan-

sion, regulation, and enforcement of all activities associated

with the personal use of cannabis pursuant to the Act.

or business possessing, buying, selling, cultivating, produc-

ing, manufacturing, transporting, or delivering any cannabis

or cannabis items within this State, or engages in any other

activity associated with the personal use of cannabis pursuant

to the Act.

17:30-1.2 Definitions

(a) All definitions contained in the Cannabis Regulatory,

Enforcement Assistance, and Marketplace Modernization

Act, P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.), are incorpo-

rated herein by reference.

(b) The following words and terms, as used in this chapter,

shall have the following meanings, unless the context clearly

indicates otherwise:

“Accreditation body” means an impartial, non-profit organ-

ization that:

1. Is a signatory to the International Laboratory Ac-

creditation Cooperation (ILAC) Mutual Recognition Ar-

rangement for Testing and is recognized by ILAC;

2. Determines a laboratory’s compliance with and con-

formance to the International Organization for Standardiza-

tion (ISO) 17025 standards and provides accreditation for

compliant laboratories; and

3. Is not affiliated with any laboratory seeking accredi-

tation.

“Act” means the Cannabis Regulatory, Enforcement Assis-

tance, and Marketplace Modernization Act, P.L. 2021, c. 16

(N.J.S.A. 24:6I-31 et seq.).

“Adverse event” means any health-related event in a per-

son, which is associated with the use of a cannabis item, that

is undesirable and is unexpected or unusual.

“Advertisement” means any calculated attempt to directly

or indirectly induce sales of cannabis items, including, but not

limited to, any commercial written or verbal statement or

communication of any other means. The term shall not in-

clude:

1. Noncommercial speech;

2. A label on a cannabis item pursuant to N.J.A.C.

17:30-16.3 and its accompanying supplemental infor-

mation, pursuant to N.J.A.C. 17:30-14.3(h) and (i);

3. Information provided by a cannabis business to an-

other cannabis business listing its products for sale; and

4. “Adopt-a-Highway” signs erected under a current

valid sponsorship with the New Jersey Department of

Transportation.

“Aggregate ownership interest” means the total ownership

interest held by an owner that is a person and by the spouse,

domestic partner, civil union partner, child, sibling, or parent

of the person.

“Alternative treatment center” or “ATC” means a medical

cannabis cultivator, a medical cannabis manufacturer, and/or

a medical cannabis dispensary that has been issued a permit

to cultivate, manufacture, dispense, or engage in other activi-

ties related to medical cannabis and related paraphernalia

pursuant to P.L. 2019, c. 153 and N.J.A.C. 17:30A.

“Batch” means a specific quantity of usable cannabis prop-

agated from the same seed or plant stock at the same time,

cultivated in the same cultivation area under similar condi-

tions, and harvested together during a specific time interval.

“Billboard” means a large outdoor sign, with a minimum

size of five feet in height by 11 feet in width, used for the

display of a commercial message.

“Board member” means, where a cannabis business or test-

ing laboratory license applicant or license holder is governed

by a governing body, such as a board of directors, a member

of that governing body.

“Bona fide labor organization” has the same meaning as at

N.J.S.A. 24:6I-36.c.

“Business day” means any day, other than a Saturday,

Sunday, or a State-recognized holiday.

“Cannabidiol” or “CBD” means a non-psychoactive con-

stituent of cannabis, C21H30O2.

“Cannabis” means all parts of the plant Cannabis sativa L.

within the plant family Cannabaceae, whether growing or

not, the seeds thereof, and every compound, manufacture,

salt, derivative, mixture, or preparation of the plant or its

17:30-1.2 TREASURY—GENERAL

Supp. 3-6-23 30-4

seeds, except those containing resin extracted from the plant;

which are cultivated and, where applicable, manufactured for

use in cannabis products, in accordance with the Act and this

chapter.

“Cannabis business” means a cannabis cultivator, a canna-

bis manufacturer, a cannabis retailer, cannabis wholesaler,

cannabis distributor, or cannabis delivery service. “Cannabis

business” includes an “expanded ATC.”

“Cannabis business delivery personnel” means cannabis

business personnel possessing a Cannabis Business Identifi-

cation Card who deliver cannabis items or cannabis parapher-

nalia on behalf of a cannabis business to a consumer.

“Cannabis Business Identification Card” means a docu-

ment issued by the Commission pursuant to N.J.A.C. 17:30-

8.1(c) that identifies a person as an owner, principal, man-

agement services contractor, employee, or volunteer acting on

behalf of a cannabis business or testing laboratory or other

cannabis handler pursuant to N.J.S.A. 24:6I-44.a, required to

8.1(a).

“Cannabis concentrate” or “cannabis resin” means a prod-

uct manufactured by a cannabis manufacturer, either in solid

form or in liquid form as oil, including cannabis extracts and

resin extracted using non-chemical processes, that contains

only the resin, cannabinoids, terpenes, and other substances

extracted from any part of the cannabis plant.

“Cannabis cultivator” means a business or organization

owned and controlled by a license holder that holds a Class 1

Cannabis Cultivator license issued by the Commission.

“Cannabis delivery service” means a business or organiza-

tion owned and controlled by a license holder that holds a

Class 6 Cannabis Delivery license issued by the Commission.

“Cannabis distributor” means a business or organization

owned and controlled by a license holder that holds a Class 4

Cannabis Distributor license issued by the Commission.

“Cannabis establishment” means a cannabis cultivator, a

cannabis manufacturer, a cannabis wholesaler, or a cannabis

retailer.

“Cannabis extract” means a substance obtained by separat-

ing resins from cannabis by:

1. A chemical extraction process using a hydrocarbon-

based solvent, such as butane, hexane, or propane;

2. A chemical extraction process using the hydrocar-

bon-based solvent carbon dioxide, if the process uses high

heat or pressure; or

3. Any other process identified by the Cannabis Regu-

latory Commission by rule.

“Cannabis flower” means the flower of the cannabis plant.

“Cannabis item” means any usable cannabis or cannabis

product that is cultivated, produced, manufactured, or con-

sumed in accordance with the Act.

“Cannabis leaf” means the leaf of the cannabis plant.

“Cannabis manufacturer” means a business or organization

owned and controlled by a license holder that holds a Class 2

Cannabis Manufacturer license issued by the Commission.

“Cannabis paraphernalia” means any equipment, products,

or materials of any kind that are used, intended for use, or

designed for use in planting, propagating, cultivating, grow-

ing, harvesting, composting, manufacturing, compounding,

converting, producing, processing, preparing, testing, analyz-

ing, packaging, repackaging, storing, vaporizing, or contain-

ing cannabis, or for ingesting, inhaling, or otherwise introduc-

ing a cannabis item into the human body.

“Cannabis plant” means the plant Cannabis sativa L. with-

in the plant family Cannabaceae in the seedling, vegetative,

or flowering stages, with readily observable roots and leaves

with serrated edges; but does not include a germinated seed,

cutting, or clone without readily observable roots and leaves

with serrated edges.

“Cannabis product” means a cannabis concentrate or a

cannabis-infused product, that a cannabis manufacturer man-

ufactures, produces, or creates from usable cannabis or can-

nabis concentrate.

“Cannabis retailer” means a business or organization

owned and controlled by a license holder who holds a Class 5

Cannabis Retailer license issued by the Commission.

“Cannabis wholesaler” means a business or organization

owned and controlled by a license holder who holds a Class 3

Cannabis Wholesaler license issued by the Commission.

“Cannabis-infused product” means a product manufactured

by a cannabis manufacturer in an authorized form that con-

tains usable cannabis or cannabis concentrate, in solid or liq-

uid form, and one or more ingredients intended for human

consumption or use, including an ingestible product, inhala-

ble product, or dermal product.

“Commission” means the New Jersey Cannabis Regulatory

Commission established pursuant to section 31 at P.L. 2019,

c. 153 (N.J.S.A. 24:6I-24).

“Common ownership or control” has the same meaning as

at N.J.S.A. 24:6I-3.

“Compassionate and Personal Use Acts” means the Jake

Honig Compassionate Use Medical Cannabis Act, P.L. 2009,

c. 307 (N.J.S.A. 24:6I-1 et seq.), and the Cannabis Regulato-

ry, Enforcement Assistance, and Marketplace Modernization

Act, P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.).

“Conditional license” means a temporary cannabis business

license that is issued pursuant to N.J.S.A. 24:6I-36.a.

PERSONAL USE CANNABIS RULES 17:30-1.2

30-5 Supp. 3-6-23

“Consumer” means a person 21 years of age or older who

purchases, directly or through a cannabis delivery service,

acquires, owns, holds, or uses cannabis items for personal use

by a person 21 years of age or older. “Consumer” does not

include a person who acquires, owns, holds, uses, or has any

other involvement in cannabis items for resale to others.

“Consumption” means the act of ingesting, inhaling, or

otherwise introducing cannabis items into the human body.

“Cultivate” means the propagation, germination, planting,

growing, harvesting, drying, curing, and processing of canna-

bis.

“Curbside retail sale” means when a cannabis retailer sells

a cannabis item to a consumer who is on the exterior of the

facility on the cannabis retailer premises, which includes any

parking lot and adjacent sidewalk that are located at the phys-

ical address listed on the cannabis business license, pursuant

to N.J.A.C. 17:30-14.4.

“Delivery vehicle” means the vehicle used for the transport

of cannabis items or related supplies between cannabis busi-

nesses or for the delivery of cannabis items to consumers.

“Dermal products” means oil, topical formulation, or prod-

ucts in a transdermal form intended for dermal application.

“Diversely owned business” means a license applicant or

license holder where the entity has been certified, pursuant to

the criteria at N.J.A.C. 17:30-6.4, as:

1. A minority-owned business pursuant to N.J.S.A.

52:27H-21.18 et seq.;

2. A women-owned business pursuant to N.J.S.A.

52:27H-21.18 et seq.;

3. A disabled-veterans-owned business, as defined at

N.J.S.A. 52:32-31.2; or

4. Any combination of paragraphs 1, 2, or 3 above.

“Economically disadvantaged area” means a zip code that

meets all of the following socioeconomic criteria:

1. Has a median income that is 80 percent or less of the

average median household income in the State, as deter-

mined annually by the U.S. Census Bureau; and

2. Has a health uninsured rate that is at least 150 per-

cent of the health uninsured rate in the State, as determined

annually by the U.S. Census Bureau.

“Electronic smoking device” means a pre-filled, tamper-

resistant, non-refillable, disposable “all-in-one” e-cigarette or

pre-filled, tamper-resistant, non-refillable cartridge and sepa-

rate battery used to heat and aerosolize or vaporize a cannabis

product for inhalation.

“Employee” means a person who is not an owner, princi-

pal, or vendor-contractor that works for a cannabis business

or testing laboratory and who receives remuneration or other

tangible benefit from the cannabis business or testing labora-

tory for services performed for the benefit of the cannabis

business or testing laboratory regarding the possession, culti-

vation, manufacture, transport, delivery, selling, or testing of,

or other conduct associated with, cannabis pursuant to the Act

and this chapter.

1. “Employee” includes managerial and non-

managerial employees, as well as paid or unpaid interns.

“Entity” means an organization formed by one or more

persons to conduct business, engage in a trade, or partake in

similar activities.

“Executive Director” means the Executive Director of the

Cannabis Regulatory Commission.

“Expanded alternative treatment center” or “expanded

ATC” means a permitted ATC pursuant to P.L. 2019, c. 153

and N.J.A.C. 17:30A that is authorized to operate a cannabis

business or businesses pursuant to the Act and this chapter, in

addition to its medicinal cannabis operations.

“Financial consideration” means any thing of value that is

given or received either directly or indirectly through sales,

barter, trade, fees, charges, dues, contributions, or donations.

“Financial source” means a person or entity that lends any

amount of capital to a cannabis business license applicant or

license holder pursuant to a secured or unsecured financing

agreement and who is not an owner, passive investor, or prin-

cipal of such cannabis business license applicant or license

holder.

“Financial source agreement” means any agreement, con-

tract, arrangement, or other type of formal understanding be-

tween a financial source and a cannabis business license ap-

plicant or license holder where the financial source lends cap-

ital to the cannabis business license applicant or license hold-

er pursuant to a secured or unsecured financing agreement

and does not receive ownership interest, in accordance with

N.J.A.C. 17:30-6.10.

“Finished cannabis product” means a cannabis product,

packaged in its finished state, including any accompanying

device and ready for sale to a consumer.

“Finished usable cannabis” means usable cannabis, pack-

aged in its finished state including any accompanying wrap-

ping, such as a pre-roll, and ready for sale to a consumer.

“Immature cannabis plant” means a cannabis plant that is

not flowering.

“Immediate family” means the spouse, domestic partner,

civil union partner, child, sibling, or parent of a person,

whether biological or adopted, and shall include the siblings,

parents, and children of the person’s spouse, domestic part-

ner, or civil union partner, and the parents, spouses, domestic

partners, or civil union partners of the person’s parents, sib-

lings, and children.

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Supp. 3-6-23 30-6

“Impact zone” has the same meaning as defined at N.J.S.A.

24:6I-33.

“Impact zone business” means a license applicant or li-

cense holder that meets the criteria at N.J.A.C. 17:30-6.5 and

N.J.S.A. 24:6I-36.e.

“Ingestible products” means cannabis product forms in-

tended for oral administration and ingestion, including oil and

sublabial, sublingual, buccal, and enteral forms.

“Inhalable products” means usable cannabis, solid cannabis

concentrate, and vaporized formulation intended for inhala-

tion.

“License” means an authorization or approval issued by the

Commission pursuant to this chapter and the Act that author-

izes a license holder to possess, transport, cultivate, manufac-

ture, sell, test, deliver, or engage in other conduct in accord-

ance with the Act and this chapter.

“License applicant” means a person or entity that is apply-

ing for, or has a pending application for, a conditional or an-

nual cannabis business license or a testing laboratory license.

“License holder” or “licensee” means a person or entity

registered to do business in New Jersey that holds a condi-

tional or annual cannabis business license or a testing labora-

tory license.

“License holder representative” or “licensee representa-

tive” means an owner, principal, employee, agent, or repre-

sentative of a cannabis business or testing facility license ap-

plicant or license holder, to the extent that the person acts in a

representative capacity.

“Lot” means a specific quantity of cannabis product manu-

factured from the same usable cannabis during a specific time

interval under similar conditions, using the same methods,

equipment, and ingredients.

“Management services agreement” means any agreement,

contract, arrangement, or other type of formal understanding

between a management services contractor and a cannabis

business license applicant or license holder where the man-

agement services contractor provides professional staffing,

administrative, operational, advisory, or management services

to a cannabis business license applicant or license holder in

exchange for remuneration, but not an ownership interest, in

accordance with N.J.A.C. 17:30-6.9.

“Management services contractor” means a third-party

vendor-contractor person or entity supervised by the princi-

pals and owners of the cannabis business license applicant or

license holder, that provides professional staffing, administra-

tive, operational, advisory, or management services to a can-

nabis business license applicant or license holder in exchange

for remuneration pursuant to a management services agree-

ment, pursuant to N.J.A.C. 17:30-6.9.

“Manager” means a person who is an employee or volun-

teer that participates in control or decision-making authority

over the direction, management, operations, or policies of a

cannabis business or testing laboratory that is supervised by

the principals and owners of the cannabis business or testing

laboratory license applicant or license holder.

“Manufacture” means preparing, compounding, mixing, or

converting usable cannabis to produce, make, or otherwise

create a cannabis product.

“Manufacturing record” means documentation of each

unique manufacturing event used to manufacture a cannabis

product.

“Manufacturing supervisor” means a qualified individual

who, by possession of a relevant and recognized degree, cer-

tificate, or professional standing, or by extensive knowledge,

training, and experience, will be responsible for ensuring

compliance with manufacturing requirements.

“Master formulation record” means the unique formulation

record of individually manufactured cannabis products.

”Mature cannabis plant” means a harvestable female can-

nabis plant that is flowering.

“Medical cannabis” means cannabis in various forms dis-

pensed to registered qualifying patients and designated care-

givers pursuant to the Jake Honig Compassionate Use Medi-

cal Cannabis Act, P.L. 2019, c. 153.

“Microbusiness” has the same meaning as defined at

N.J.S.A. 24:6I-33 and operated in accordance with N.J.A.C.

17:30-6.7.

“Military veteran” means a person who served in any

branch of the active or reserve component of the United State

military and/or the National Guard of any state military ser-

vice and who was discharged or released under conditions

other than dishonorable.

“Minor” means a person who is under 18 years of age and

who has not been married or previously declared by a court or

an administrative agency to be emancipated.

“Noncommercial” means not dependent or conditioned up-

on the provision or receipt of financial consideration.

“Nonprofit entity” means a corporation, association, or or-

ganization that is:

1. Not conducted for pecuniary profit of any private

shareholder or individual;

2. Established, organized, or chartered without capital

stock pursuant to:

i. The provisions at Titles 15, 15A, 16, or 17 of the

New Jersey Revised Statutes;

ii. A special charter; or

PERSONAL USE CANNABIS RULES 17:30-1.2

30-7 Supp. 3-6-23

iii. Any similar general or special law of this or any

other state;

3. Certified as exempt from the tax imposed by the Cor-

poration Business Tax Act, as set forth at N.J.S.A. 54:10A-

3.e; and

4. Certified as an entity that is not required to be a tax-

exempt organization pursuant to 26 U.S.C. § 501(c)(3).

“Officer” means a person who is an officer of a cannabis

business or testing laboratory license applicant or license

holder pursuant to the entity’s formation documents or by-

laws, or who participates in managing the cannabis business

or testing laboratory license applicant, license holder, and

license applicant’s or license holder’s cannabis business or

testing laboratory. “Officer” includes, but is not limited to:

1. President, vice-president, secretary, treasurer, chief

executive officer, chief financial officer, chief operating of-

ficer, or general counsel;

2. If the license applicant or license holder is a corpora-

tion, the officers of the corporation, in accordance with the

articles of incorporation or the bylaws;

3. If the license applicant or license holder is a non-

profit entity, the chief executive officer, members of the

governing board, and the officers, in accordance with the

articles of incorporation or the bylaws;

4. If the license applicant or license holder is a partner-

ship, the general partners, managing partners, and control-

ling partners of the partnership;

5. If the license applicant or license holder is a limited

liability company, the manager-members of the limited lia-

bility company;

6. If the license applicant or license holder is a private

capital fund, the members of the executive team of the pri-

vate capital fund, and any other persons that control its in-

vestment or management; or

7. If the license applicant or license holder is a business

organization other than the types listed at paragraphs 1

through 6 above, any person whose position with respect to

the business organization, as determined under its for-

mation documents or bylaws, without regard to the per-

son’s title, are the functional equivalents of any of the posi-

tions described in this definition.

“Oil” means a cannabis concentrate, in viscous liquid form

containing only cannabinoids, such as THC and cannabidiol,

terpenes, and other substances that are extracted from the

cannabis plant.

“Onsite assessment” means an inspection of any site con-

ducted by an employee of the Commission to ensure compli-

ance with the Act.

“Oral lozenge” means a solid oral cannabis-infused product

that is designed to dissolve or disintegrate slowly in the

mouth.

“Organic” means satisfying or meeting the organic pro-

gram standards as defined at N.J.A.C. 2:78.

“Owner” means:

1. Any person or entity that holds at least a five percent

aggregate ownership interest in a cannabis business or test-

ing laboratory license applicant or license holder;

2. Where an entity, including a parent company, holds

at least a five percent ownership interest in a cannabis

business or testing laboratory license applicant or license

holder, any person or entity that holds at least 10 percent

aggregate ownership interest in or is a member of the exec-

utive team of such entity except that, where such entity

holding at least a five percent ownership interest in a can-

nabis business or the testing laboratory license applicant or

license holder:

i. Is a nonprofit entity, any person or entity that is

an officer in accordance with the articles of incorpora-

tion, or the bylaws or is a member of the governing

board of such entity;

ii. Is a qualified institutional investor, any person or

entity that holds at least 30 percent aggregate ownership

interest in or is a member of the executive team of such

entity; or

iii. Is a trust, any trustee of such entity; or

3. A significantly involved person of a cannabis busi-

ness license applicant or license holder.

“Ownership interest” means a right to ownership or equity

interest in an entity.

“Parties of interest” means any person or entity holding an

interest, whether financial or otherwise, in a cannabis busi-

ness license applicant or license holder.

“Passive investor” means a person or entity that:

1. Holds an aggregate ownership interest that is greater

than zero percent but less than five percent in a cannabis

business or testing laboratory license applicant or license

holder; and

2. Does not have control or decision-making authority

over the management, operations, or policies of such li-

cense applicant’s or license holder’s cannabis business or

testing laboratory.

“Person” means a natural person.

“Personal use” or “personal use of cannabis” means:

17:30-1.2 TREASURY—GENERAL

Supp. 3-6-23 30-8

1. The purchase, acquisition, holding, possession, or

use of cannabis or cannabis items by a person 21 years of

age or older; and

2. Does not include resale to other persons or entities.

“Physical plant” means the spaces, equipment, and infra-

structure directly utilized by a cannabis business, within the

premises, for cultivation, manufacturing, wholesaling, dis-

tributing, retail sale, or delivery.

“Premises” includes the following areas of a location con-

trolled or operated by a cannabis business or testing laborato-

ry:

1. All public and private enclosed areas at the location

that are used in the business operated at the location, in-

cluding, but not limited to, offices, kitchens, rest rooms,

and storerooms;

2. Any areas outside a building that is used, or is to be

used, for the cultivation, manufacturing, wholesaling, dis-

tributing, retail sale, or delivery of cannabis items;

3. For a location that is used, or is to be used, for the

cultivation of cannabis outside a building, the entire lot or

parcel that the license holder owns, leases, or has a right to

occupy; and

4. A purely administrative office operated by a canna-

bis distributor or cannabis delivery service that is not used

for the possession or handling of cannabis or cannabis

items shall not be considered to be a cannabis business

premises.

“Pressurized metered dose inhaler” means a device with

pressurized propellant that administers a dose of aerosolized

oil for inhalation.

“Principal” means a person or entity, including an officer

or a board member, that participates in control or decision-

making authority over the direction, management, operations,

or policies of a cannabis business or testing laboratory license

applicant, license holder, or license applicant’s or license

holder’s cannabis business or testing laboratory.

1. A principal of a cannabis business or testing labora-

tory license applicant or license holder does not include a

manager or a management services contractor.

2. Where a principal of a license applicant or license

holder is an entity, any person or entity that holds at least

10 percent aggregate ownership interest in, or is a member

of the executive team of, such entity is also a principal of

such license applicant or license holder.

“Private capital fund” means:

1. A United States investment company that includes,

but is not limited to, a venture capital fund, a hedge fund,

or a private equity fund;

2. That is advised or managed by an investment adviser

registered under 15 U.S.C. §§ 80b-1 et seq.; and

3. Does not include a qualified institutional investor.

“Project labor agreement” means a form of pre-hire collec-

tive bargaining agreement covering terms and conditions of a

specific project, including labor issues and worker grievances

associated with that project.

“Proof of New Jersey residency” means one or more of the

following current, unexpired documents:

1. A New Jersey driver’s license that is in effect and is

a valid State-issued identification card;

2. A Federal, State, or local government-issued identi-

fication card that shows the applicant’s name and New Jer-

sey address;

3. A utility bill issued within the 90 days preceding the

application date that shows the applicant’s name and New

Jersey address;

4. Correspondence from the Internal Revenue Service

or the New Jersey Division of Taxation issued within the

year preceding the application date that shows the appli-

cant’s name and New Jersey address;

5. A non-driver identification card issued by the New

Jersey Motor Vehicle Commission that is in effect and

good standing;

6. Federal, State, or local government correspondence

issued to the applicant within the 90 days preceding the ap-

plication date that shows the applicant’s name and New

Jersey address;

7. Bank statements or credit card bills issued within

each of the three months preceding the application date that

show the applicant’s name and New Jersey address;

8. Residential lease or rental agreements with the name

of applicant as lessee or renter;

9. A deed or title to real residential property that is

owner-occupied; or

10. Pay stubs from the prior three months that show the

applicant’s name and New Jersey address.

“Public place” means a place as defined at N.J.S.A. 24:6I-

33.

“Qualified institutional investor” means a United States

purchaser of securities that has special status under financial

regulation laws, specifically:

1. A bank as defined in Section 3(a)(6) of the Federal

Securities Exchange Act of 1934, as amended;

2. A bank holding company as defined in the Federal

Bank Holding Company Act of 1956, as amended;

PERSONAL USE CANNABIS RULES 17:30-1.2

30-9 Supp. 3-6-23

3. An insurance company as defined in Section

2(a)(17) of the Investment Company Act of 1940, as

amended;

4. An investment company registered under Section 8

of the Investment Company Act of 1940, as amended;

5. An employee benefit plan or pension fund subject to

the Federal Employee Retirement Income Security Act of

1974, excluding an employee benefit plan or pension fund

sponsored by a license applicant or license holder or any of

its owners;

6. A state or Federal government pension plan; or

7. A group comprised entirely of entities specified at

paragraphs 1 through 6 above.

“Quality control” means a planned and systematic opera-

tion or procedure for ensuring the strength, quality, and purity

of a cannabis product.

“Radio” means a system for transmitting sound without

visual images, and includes broadcast, cable, on-demand,

satellite, or Internet programming; and includes any audio

programming downloaded or streamed through the Internet.

“Residual solvent” means a volatile organic chemical used

in some methods of manufacturing cannabis concentrates that

is not completely removed by a cannabis business’s quality

control standard operating procedures.

“Security alarm system” means any device or series of de-

vices, including, but not limited to, a signal system intercon-

nected with a radio frequency method, such as cellular, pri-

vate radio signals or other mechanical or electronic device,

used to detect an unauthorized intrusion.

“Serving” or “dose” means the measured quantity of a usa-

ble cannabis or cannabis product to be taken at one time.

“Signature” or “electronic signature” means either the

name of one written by oneself or an electronic code, sound,

symbol, or process attached to or logically associated with a

record and executed or adopted by a person with the intent to

sign the record.

“Significantly involved person” has the same meaning as at

N.J.S.A. 24:6I-33.

“Social equity business” means a license applicant or li-

cense holder that meets the requirements at N.J.A.C. 17:30-

6.6.

“Television” means a system for transmitting visual images

and sound that are reproduced on screens, and includes

broadcast, cable, on-demand, satellite, or Internet program-

ming. “Television” includes any video programming down-

loaded or streamed through the Internet.

“Testing laboratory” means an independent, third-party la-

boratory that is:

1. A “cannabis testing facility” that is licensed by the

Commission pursuant to N.J.A.C. 17:30-18 to perform test-

ing services, including analysis and certification of compli-

ance with applicable health, safety, and potency standards,

on usable cannabis for personal use and cannabis products

pursuant to N.J.A.C. 17:30-19; or

2. A “medical cannabis testing laboratory” that is li-

censed by the Commission pursuant to N.J.S.A. 24:6I-18 to

perform testing services, including analysis and certifica-

tion of compliance with applicable health, safety, and po-

tency standards, on usable cannabis for medical use and

medical cannabis products pursuant to N.J.S.A. 24:6I-17.

“THC” means delta-9-tetrahydrocannabinol and its precur-

sor, tetrahydrocannabinolic acid, the main psychoactive

chemicals contained in the cannabis plant.

“Topical formulation” means a transcutaneous therapeutic

cannabis-infused product in liquid form intended to be ap-

plied to the skin or hair, including an ointment, gel, cream, or

lotion, comprised of oil, water, short carbon chains, alcohol,

dimethylsulfoxide, polyethylene glycol, polypropylene gly-

col, glycerin, mineral, or mixtures thereof.

“Unusable cannabis” means cannabis seeds, stems, stalks,

roots, or any part of the immature cannabis plant.

“Usable cannabis” means the dried leaves and flowers of

the mature cannabis plant; but does not include the cannabis

seeds, seedlings, stems, stalks, roots, or any part of the imma-

ture cannabis plant.

“Vaporized formulation” means oil or oil and one or more

inactive ingredients in an electronic smoking device that is

meant to be heated, aerosolized, and inhaled.

“Vendor-contractor” means a third-party person or entity

that is separate from the cannabis business license applicant

or license holder that provides goods, services, or intellectual

property to a cannabis business license applicant or license

holder in exchange for remuneration, but not ownership inter-

est, pursuant to a contract or agreement. A vendor-contractor

may include, but is not limited to:

1. A landlord that is leasing the land and/or building of

a cannabis business premises or administrative office to a

license applicant or license holder;

2. A contract counterparty that is leasing equipment

used in the cultivation, manufacturing, retail sale, storage,

transportation, or destruction of cannabis to a cannabis

business license applicant or license holder;

3. A vendor providing materials;

4. An architect;

5. A construction; heating, ventilating, air conditioning,

and refrigeration; plumbing; or lighting company;

6. A security company;

17:30-1.2 TREASURY—GENERAL

Supp. 3-6-23 30-10

7. A lawyer or lobbyist;

8. An accountant; or

9. A consultant providing services, including license

application preparation, and operation recommendations

regarding cultivation, manufacturing, retail sale, storage,

transportation, or destruction of cannabis.

“Visitor” means a person on the cannabis business or test-

ing laboratory premises who does not possess a Cannabis

Business Identification Card.

“Volunteer” means a person who is not an owner, princi-

pal, or vendor-contractor that works for a cannabis business

who does not receive remuneration from the cannabis busi-

ness for services performed for the benefit of the cannabis

business regarding the possession, cultivation, manufacture,

transport, delivery, selling of, or other conduct associated

with cannabis pursuant to the Act and this chapter.

“Written report” means the report prepared by the testing

laboratory about the analytical testing it performed and the

results it obtained.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), inserted a comma following “(N.J.S.A. 24:6I-31 et seq.)”; in

(b), added definition “Cannabis wholesaler”; rewrote definitions “Adver-

tisement”, “Billboard”, “Cannabis business delivery personnel”, “Can-

nabis Business Identification Card”, “Commission”, “Conditional li-

cense”, “Curbside retail sale”, “Delivery vehicle”, “Dermal products”,

“Employee,” “Financial source”, “Immediate family”, “License appli-

cant”, “Management services agreement”, “Management services con-

tractor”, “Manufacturing record”, “Manufacturing supervisor”, “Non-

profit entity”, “Officer”, “Onsite assessment”, “Organic”, “Owner”,

“Physical plant”, “Premises”, “Principal”, “Proof of New Jersey residen-

cy”, “Testing laboratory”, “Topical formulation”, “Vendor-contractor”,

“Visitor”, “Volunteer”, substituted definitions “Compassionate and Per-

sonal Use Acts” for “Compassionate and Medical Personal Use Acts”,

“Expanded alternative treatment center” or “expanded ATC” for “Ex-

panded ATC”, “Impact zone business” for “Impact zone business license

applicant” or “impact zone business license holder”, “License holder” or

“licensee” for “License holder”, and deleted definition “State or local

economic incentive”.

17:30-1.2

17:30-1.3 Construction and amendments

(a) This chapter shall be construed in accordance with

generally accepted principles of statutory construction, in-

cluding those set forth at N.J.S.A. 1:1-1.1 et seq.

(b) This chapter shall be liberally construed to permit the

Commission to effectively carry out its statutory functions

and to secure a just and expeditious determination of issues

properly presented to the Commission.

to conflict with any provision of the Jake Honig Compassion-

ate Use Medical Cannabis Act or the Cannabis Regulatory,

Enforcement Assistance, and Marketplace Modernization

Act, or any other applicable statute.

(d) Whenever any provision of this chapter requires that an

act or event occur on a specified day or date, and such day or

date falls on a Saturday, Sunday, or legal holiday, or on a day

in which the State is closed as the result of a declared state of

emergency, such provision shall be construed to refer to the

next business day immediately following such day or date.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c), substituted “or” for “and” following “Cannabis Act”.

17:30-1.4 Severability and preemption

If any part, section, clause, paragraph, sentence, or provi-

sion of P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.), P.L. 2015,

c. 158 (N.J.S.A. 18A:40-12.22 et seq.), P.L. 2019, c. 153

(N.J.S.A. 24:6I-5.1 et seq.), or P.L. 2021, c. 16 (N.J.S.A.

24:6I-31 et seq.), or its application to any person or circum-

stance shall be adjudged by any court of competent jurisdic-

tion to be unconstitutional or otherwise invalid, that judgment

shall not affect, impair, or invalidate the remainder thereof,

but shall be confined in its operation to the section, clause,

paragraph, sentence, or provision thereof directly involved in

the controversy in which the judgment shall have been ren-

dered.

——————

SUBCHAPTER 2. CONSUMER AND LICENSE HOLDER

PROTECTIONS; CONSUMER PROHIBITIONS

17:30-2.1 Consumer and license holder criminal protec-

tions

(a) Pursuant to N.J.S.A. 24:6I-51.a, persons and licensed

cannabis businesses and testing laboratories shall not be sub-

ject to arrest, prosecution, or penalty in any manner, or denied

any right or privilege, solely for conduct permitted pursuant

to P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.).

1. Nothing in this subchapter shall be construed to limit

the authority of an agency or subdivision of any agency of

this State to cooperate with or assist the government of the

United States, or any agency thereof, or the government of

another state, or agency thereof, in matters pertaining to il-

legal interstate trafficking of marijuana, hashish, cannabis,

or cannabis items; and

2. Licensed cannabis businesses and testing laborato-

ries and personnel remain subject to criminal prosecution

for activities not authorized by the Act, this chapter, or the

cannabis business or testing laboratory license.

(b) It is not unlawful, pursuant to N.J.S.A. 2C:35-10.a for:

1. A consumer to possess, display, purchase, transport,

or transfer without remuneration for non-promotional, non-

business purposes, where the cannabis item is obtained di-

rectly from a licensed cannabis retailer:

i. Up to one ounce of usable cannabis; or

PERSONAL USE CANNABIS RULES 17:30-2.3

30-11 Supp. 3-6-23

ii. Up to the equivalent of one ounce of usable can-

nabis as a cannabis product in solid, liquid, or concen-

trate form;

2. A consumer to take delivery of, or consume, a law-

fully possessed cannabis item in a place where it is not

prohibited to do so; or

3. Another person to assist a consumer in engaging in

any of the acts described at (b)1 and 2 above, provided that

the assistance being provided is with the consumer’s con-

sent and without remuneration.

in accordance with N.J.S.A. 2C:35-10.b, for cannabis busi-

ness or testing laboratory personnel, as applicable, to act

within the scope of authority provided by a license issued

pursuant to the Act and this chapter.

(d) It is not unlawful, in accordance with N.J.S.A. 2C:35-

10.b, for a property owner that is at least 21 years of age act-

ing within the scope of authority provided by a license, to

lease, or otherwise allow the use of, property for the operation

of a cannabis business.

(e) Notwithstanding the provisions of N.J.S.A. 24:6I-52,

until such time that the Commission, in consultation with the

Police Training Commission established pursuant to N.J.S.A.

52:17B-70, develops standards for a Workplace Impairment

Recognition Expert certification, no physical evaluation of an

employee being drug tested in accordance with N.J.S.A.

24:6I-52 shall be required.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)2, deleted the period following “N.J.S.A. 2C:35-10.a”; and in

(b)3, inserted “with the consumer’s consent and” following “being pro-

vided is”.

17:30-2.1

17:30-2.2 Consumer and under-age person prohibitions

(a) Nothing in this chapter is intended to allow driving un-

der the influence of cannabis items or driving while impaired

by cannabis items or to supersede laws related to driving un-

der the influence of marijuana or cannabis items or driving

while impaired by marijuana or cannabis items.

(b) Nothing in this chapter is intended to permit the transfer

of cannabis items, with or without remuneration, to a person

under 21 years of age or to allow a person under 21 years of

age to purchase, possess, use, transport, grow, or consume

cannabis items.

prohibiting, or otherwise regulating the consumption, use,

display, transfer, distribution, sale, or transportation of can-

nabis items on or in that property, or portion thereof.

(d) Nothing in this chapter is intended to permit any person

to possess, consume, use, display, transfer, distribute, sell,

transport, grow, or manufacture cannabis or cannabis items in

a school, hospital, detention facility, adult correctional facili-

ty, or youth correctional facility.

(e) Nothing in this chapter is intended to permit the smok-

ing, vaping, or aerosolizing of cannabis items in any place in

which a Federal, State, or local law prohibits the smoking of

tobacco.

(f) Pursuant to N.J.S.A. 2C:35-10.d, a person under 21

years of age shall not purchase, acquire, accept, or consume a

cannabis item, or attempt to do so.

1. A person under 21 years of age shall not enter, or at-

tempt to enter, a cannabis business premises, unless ac-

companied by and supervised by a parent or legal guardian

or otherwise permitted by law.

Recodified from N.J.A.C. 17:30-2.3 and amended by R.2023 d.034,

effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Section was “Consumer and license holder civil protections”. Rewrote

the section.

17:30-2.3 Consumer and license holder civil protections

(a) Pursuant to N.J.S.A. 24:6I-51.a, persons and licensed

cannabis businesses and testing laboratories shall not be sub-

ject to penalty in any manner, or denied any right or privilege,

including, but not limited to, civil liability or disciplinary

action by a business, occupational, or professional licensing

board or bureau, solely for conduct permitted pursuant to the

Act.

1. Licensed cannabis businesses and testing laborato-

ries and personnel remain subject to civil or criminal penal-

ties for their activities not authorized pursuant to the Act,

this chapter, the Commission, or by the cannabis business

or testing laboratory license.

(b) Nothing in this chapter shall be construed to limit any

privileges or rights of a registered qualifying patient, desig-

nated caregiver, institutional caregiver, or alternative treat-

ment center, as provided in the Jake Honig Compassionate

Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-

1 et seq.), or P.L. 2015, c. 158 (N.J.S.A. 18A:40-12.22 et

seq.), concerning the use of medical cannabis and medical

cannabis products.

shall not engage in discriminatory activities with respect to

the banking activities of a cannabis business or a person asso-

ciated with a cannabis business.

(d) Pursuant to N.J.S.A. 24:6I-53, no contract shall be un-

enforceable on the basis that manufacturing, distributing, sell-

ing, dispensing, possessing, or using any cannabis item is

prohibited by Federal law.

(e) Notwithstanding the provisions at N.J.S.A. 24:6I-52,

until such time that the Commission, in consultation with the

Police Training Commission established pursuant to N.J.S.A.

52:17B-70, develops standards for a Workplace Impairment

17:30-2.3 TREASURY—GENERAL

Supp. 3-6-23 30-12

Recognition Expert certification, no physical evaluation of an

employee being drug tested in accordance with N.J.S.A.

24:6I-52 shall be required.

New Rule, R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Former N.J.A.C. 17:30-2.3, Consumer and under-age person prohibi-

tions, recodified to N.J.A.C. 17:30-2.2.

——————

SUBCHAPTER 3. ORGANIZATION AND OPERATION

OF THE COMMISSION

17:30-2.3

17:30-3.1 Powers, duties, and responsibilities

(a) The Commission shall assume all powers, duties, and

functions with regard to the regulation and oversight of ac-

tivities authorized pursuant to the Act.

(b) The Commission shall exercise all powers incidental,

convenient, or necessary to enable the Commission to admin-

ister or carry out the provisions of the Act, or any other law of

this State that charges the Commission with a duty, function,

or power related to personal use cannabis. Powers include,

but are not limited to:

1. Issuing subpoenas;

2. Compelling attendance of witnesses;

3. Administering oaths;

4. Certifying official acts;

5. Taking depositions as provided by law;

6. Compelling the production of books, payrolls, ac-

counts, papers, records, documents, testimony, products,

equipment, devices, supplies, and waste;

7. Requesting information from cannabis businesses

and testing laboratories in order to assess the impact and

effectiveness of the Act; and

8. Establishing fees in addition to the application, li-

censing, and renewal fees, provided that any fee estab-

lished by the Commission is reasonably calculated not to

exceed the cost of the activity for which the fee is charged.

seize, possess, and dispose of cannabis and cannabis items as

is necessary to ensure compliance with and enforcement of

the provisions of the Act, and any rule adopted pursuant

thereto.

(d) The Commission may sue, and be sued, in any court

and employ legal counsel to represent the Commission in any

proceeding to which it is a party and render legal advice to

the Commission upon its request.

(e) The Commission may contract for the services of pro-

fessional, technical, and operational personnel and consult-

ants as may be necessary to the performance of its responsi-

bilities.

17:30-3.2 Expenses, grants, contributions, use of fees

(a) The Commission may incur additional expenses within

the limits of funds available to it in order to carry out its du-

ties, functions, and powers under the Act.

(b) The Commission may accept, from any governmental

department or agency, public or private body or any other

source, grants or contributions to be used in carrying out the

purposes of P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.).

(N.J.S.A. 24:6I-1 et seq.), including those from qualifying

patients, designated and institutional caregivers, and initial,

modification, and renewal applications for ATCs shall be

used to offset the cost of the Commission’s administration of

the provisions of P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.).

17:30-3.3 Commission activities associated with the per-

sonal use of cannabis

(a) The Commission shall:

1. Regulate the purchase, sale, cultivation, production,

manufacturing, transportation, and delivery of cannabis or

cannabis items;

2. Grant, refuse, suspend, revoke, cancel, or take ac-

tions otherwise limiting licenses or conditional licenses for

the sale, cultivation, production, or manufacturing of can-

nabis items, or other licenses in regard to cannabis items,

and to permit, in accordance with this chapter, the transfer

of a license between persons or entities;

3. Adopt, amend, or repeal rules as necessary to carry

out the intent and provisions of the Act;

4. Adopt rules regulating and prohibiting the advertis-

ing of cannabis items in a manner that is appealing to mi-

nors, that promotes excessive use, that promotes illegal ac-

tivity, or that otherwise presents a significant risk to public

health and safety; and

5. Regulate the use of cannabis and cannabis items for

scientific, pharmaceutical, manufacturing, mechanical, in-

dustrial, and other purposes.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-3.4 Social equity excise fee

(a) In accordance with N.J.S.A. 54:47F-1, the Commission

shall impose a Social Equity Excise Fee on the sale or trans-

fer of usable cannabis or unusable cannabis by a cannabis

cultivator to any other cannabis establishment other than an-

other cannabis cultivator, including a cannabis manufacturer,

PERSONAL USE CANNABIS RULES 17:30-3.7

30-13 Supp. 3-6-23

cannabis wholesaler, or a cannabis retailer owned by the same

license holder as the cannabis cultivator.

1. Such fee shall be implemented in consultation with,

and collected by, the Division of Taxation, in the Depart-

ment of the Treasury.

(b) Effective August 19, 2021, until the fee is adjusted pur-

suant to (c) below, the Social Equity Excise Fee shall be 1/3

of one percent of the Statewide average retail price of an

ounce of usable cannabis for consumer purchase, during the

current calendar year, as determined by the Commission.

fer of usable cannabis subject to a Social Equity Excise Fee

by a cannabis cultivator that is not part of an expanded ATC

and continuing annually, the excise fee shall be as follows:

1. If the average retail price of an ounce of usable can-

nabis in the current calendar year is $350.00 or more, the

excise fee shall be:

i. $10.00 per ounce of usable cannabis; and

ii. $3.00 per ounce of unusable cannabis sold for the

purpose of manufacturing;

2. If the average retail price of an ounce of usable can-

nabis in the current calendar year is at least $250.00, but

less than $350.00, the excise fee shall be:

i. $30.00 per ounce of usable cannabis; and

ii. $8.00 per ounce of unusable cannabis sold for the

purpose of manufacturing;

3. If the average retail price of an ounce of usable can-

nabis in the current calendar year is at least $200.00, but

less than $250.00, the excise fee shall be:

i. $40.00 per ounce of usable cannabis; and

ii. $12.00 per ounce of unusable cannabis sold for

the purpose of manufacturing; and

4. If the average retail price of an ounce of usable can-

nabis in the current calendar year is less than $200.00, the

excise fee shall be:

i. $60.00 per ounce of usable cannabis; and

ii. $18.00 per ounce of unusable cannabis sold for

the purpose of manufacturing.

(d) Beginning when the Commission adjusts the Social

Equity Excise Fee in accordance with (c) above, the Commis-

sion shall provide notice of the fee in the New Jersey Register

by November 1 of the current year, to be effective on January

1 of the next calendar year.

(e) An excise fee pursuant to this section shall be per ounce

of usable cannabis sold or transferred by a cannabis cultiva-

tor. Any fractional portion of an ounce sold or transferred

shall be subject to the fee on a proportional basis.

(f) An excise fee pursuant to this section shall not apply to

sales to transfers of usable cannabis for use in medicinal can-

nabis dispensing pursuant to the Jake Honig Compassionate

Use Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et

seq.), or P.L. 2015, c. 158 (N.J.S.A. 18A:40-12.22 et seq.).

Public Notice: Social Equity Excise Fee Imposition on Class 1 Cannabis

Cultivators for the 2023 Calendar Year.

See: 54 N.J.R. 2159(a).

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-3.5 Cannabis Regulatory, Enforcement Assistance,

and Marketplace Modernization Fund

(a) Pursuant to the Act, all fees and penalties collected by

the Commission, all tax revenues of retail sales of cannabis

items, all tax revenues collected pursuant to the provisions of

the Jake Honig Compassionate Use Medical Cannabis Act,

P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.), and all revenues

collected for the Social Equity Excise Fee shall be deposited

in a special non-lapsing fund, which shall be known as the

Cannabis Regulatory, Enforcement Assistance, and Market-

place Modernization Fund (the Fund), with 15 percent of the

monies deposited placed into an account within the Fund to

be known as the Underage Deterrence and Prevention Ac-

count.

(b) Monies in the Fund shall be appropriated in accordance

with N.J.S.A. 24:6I-50.

17:30-3.6 Designated inventory tracking system

(a) The Commission has the authority to require all ATCs

and cannabis businesses to use the inventory tracking system

designated by the Commission to track the cultivation, manu-

facturing, distribution, storage, transportation, and retail sale

of medical cannabis and cannabis items pursuant to N.J.S.A.

24:6I-22.c.

(b) An ATC or a cannabis business shall:

1. Use plant tags and labels compatible with the Com-

mission-designated system; and

2. Be responsible for any costs associated with the ac-

quisition of such compatible plant tags and for any costs

associated with additional software or hardware that en-

sures compatibility with the Commission-designated sys-

tem.

17:30-3.7 Waiver

(a) The Commission, in accordance with the general pur-

poses and intent of the Act and this chapter, may waive a reg-

ulatory requirement regarding the operations of a cannabis

business, to the extent such waiver does not conflict with any

other State law, if in the Commission’s determination, such a

waiver:

1. Is necessary to achieve the purpose of the Act;

17:30-3.7 TREASURY—GENERAL

Supp. 3-6-23 30-14

2. Is necessary to provide access to cannabis items to

consumers; and

3. Does not create a danger to the public health, safety,

or welfare.

17:30-3.7

17:30-3.8 Petitions for rulemaking; purpose and scope

Unless otherwise provided in this chapter, this subchapter

shall constitute the Cannabis Regulatory Commission’s rules

regarding the disposition of all requests for rulemaking pur-

suant to N.J.S.A. 52:14B-4(f).

17:30-3.9 Petitions for rulemaking; procedure

(a) As used in this section, “initiate a rulemaking proceed-

ing” means the submission of a notice of proposal to the Of-

fice of Administrative Law for publication in the next availa-

ble issue of the New Jersey Register.

(b) Any interested person may petition the Commission to

promulgate, amend, or repeal any rule of the Commission.

Such petition must be in writing, signed by the petitioner, and

must state clearly and concisely:

1. The full name and address of the petitioner;

2. The reasons for the request;

3. A description of the substance or nature of the rule-

making that is requested and the draft text of the proposed

rule or rules;

4. A complete disclosure of the petitioner’s interest in

the request, including, without limitation, any relevant or-

ganizational affiliation or economic interest and the finan-

cial effect upon petitioner if the request were brought into

effect;

5. The statutory authority under which the Commission

may take the requested action; and

6. Any existing Federal or State statutes and rules that

the petitioner believes may be pertinent to the request.

a rule by the Commission shall be captioned “Petition for

Rulemaking Action” and shall be sent by email to crc.rules@

crc.nj.gov or in hard copy addressed to:

Cannabis Regulatory Commission

Office of the Executive Director

PO Box 216

Trenton, New Jersey 08625-0216

(d) Any document submitted to the Commission that is not

in substantial compliance with this section shall not be

deemed to be a petition for rulemaking requiring further

agency action.

(e) Within 15 days of receipt of a petition in compliance

with this section, the Commission will file a notice of petition

with the Office of Administrative Law for publication in the

New Jersey Register in accordance with N.J.A.C. 1:30-4.1(c).

The notice will include the following:

1. The name of the petitioner;

2. The substance or nature of the rulemaking action

that is requested;

3. The problem or purpose that is the subject of the re-

quest; and

4. The date the petition was received.

(f) Within 60 days following receipt of any such petition,

the Commission shall:

1. Deny the petition, giving a written statement of its

reasons;

2. Grant the petition and initiate a rulemaking proceed-

ing within 90 days of granting the petition; or

3. Refer the matter for further deliberations which shall

be concluded within 90 days of referring the matter for fur-

ther deliberations. Upon conclusion of such further deliber-

ations, the Commission shall either deny the petition and

provide a written statement of its reasons or grant the peti-

tion and initiate a rulemaking proceeding within 90 days.

The results of these further deliberations will be mailed to

the petitioner and submitted to the Office of Administrative

Law for publication in the New Jersey Register.

(g) Within 60 calendar days of receiving the petition, the

Commission shall mail to the petitioner, and file with the Of-

fice of Administrative Law for publication in the New Jersey

clude:

1. The name of the petitioner;

2. The New Jersey Register citation for the notice of

petition, if that notice appeared in a previous New Jersey

3. Certification by the Executive Director and Chair of

the Commission that the petition was duly considered pur-

suant to law;

4. The nature or substance of the Commission’s action

upon the petition; and

5. A brief statement of reasons for the Commission’s

action.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c), substituted “crc.rules@crc.nj.gov” for “CRC.Info@crc.nj.gov”.

17:30-3.10 Extension of public comment period on a

proposed rule

(a) The Commission may extend the public comment peri-

od on a proposed rule whenever it determines an extension is

appropriate.

PERSONAL USE CANNABIS RULES 17:30-5.1

30-15 Supp. 3-6-23

(b) If, within 30 days of the publication of a notice of pro-

posal, sufficient public interest is demonstrated in an exten-

sion of the time for submissions, the Commission shall pro-

vide an additional 30-day period for the receipt of submis-

sions by interested parties. No notice of proposal shall be

adopted until after the end of this 30-day extension, if provid-

ed.

for granting an extension of the public comment period exists

when:

1. One hundred or more individuals have communicat-

ed the need for the extension of the public comment period

in writing, legible and intelligible, to the Commission.

i. At least 50 of the individuals shall have specified

in their written communications, an objection to at least

one provision of the proposed rule.

ii. All written communications have been directed

to the individual who has been designated, on behalf of

the Commission, to receive comments in the notice of

proposal.

(d) For the purposes of this section, a professional organi-

zation, law firm, corporation, partnership, association, or any

other organization or groups of persons that submit(s) a re-

quest for an extension of the public comment period on behalf

of a group of interested parties shall be considered one per-

son.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (c).

——————

SUBCHAPTER 4. INDEPENDENT STUDY; COMMIS-

SION REPORTING

17:30-4.1 Independent study

(a) The Commission shall, no later than three years after

the date it first organizes, contract with a public research uni-

versity, as defined at section 3 at P.L. 1994, c. 48 (N.J.S.A.

18A:3B-3), to conduct an independent study to review:

1. The Commission’s organization;

2. The Commission’s regulation and enforcement ac-

tivities;

3. The overall effectiveness of the Commission as a

full-time entity; and

4. Whether the regulation and oversight of medical

cannabis or personal use cannabis could be more effective-

ly and efficiently managed through a reorganization of the

Commission, consolidation of the Commission within the

Department of Health or another Executive Branch de-

partment, conversion to a part-time Commission, or the

transfer of some or all the Commission’s operations else-

where within the Executive Branch.

(b) The Commission shall submit the findings of the inde-

pendent study, along with the Commission’s recommenda-

tions for appropriate executive, administrative, or legislative

action, to the Governor and, pursuant to section 2 at P.L.

1991, c. 164 (N.J.S.A. 52:14-19.1), to the Legislature.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a) and (b), substituted “at” for “of”.

17:30-4.2 Commission reporting

The Commission shall report, to the Governor and the Leg-

islature, information in accordance with N.J.S.A. 24:6I-12

and Commission bylaws.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Inserted “and Commission bylaws” at the end.

——————

SUBCHAPTER 5. MUNICIPAL AUTHORITY

17:30-5.1 Municipal authority

(a) A municipality may enact an ordinance or regulation

that is not in conflict with the Act or this chapter, and may

amend such ordinance or regulation:

1. That establishes a numerical limit on the number of

cannabis businesses, provided that any such ordinance or

regulation shall specify the maximum number of each class

of license that is allowed within the municipality and for

which the municipality has established a numerical limit;

2. That governs the location, manner, and times of op-

eration of cannabis businesses, except for the times of op-

eration of a cannabis delivery service or distributor, includ-

ing an ordinance or regulation that requires a cannabis

business premises to be a certain distance from the closest

church, synagogue, temple, or other place used exclusively

for religious worship; or from the closest school, play-

ground, park, or child daycare facility;

3. That establishes civil penalties for a violation of

such ordinance or regulation; or

4. That imposes a separate local licensing requirement.

(b) A municipality may enact and amend an ordinance or

regulation to prohibit the operation of any one or more classes

of cannabis business within the jurisdiction of the municipali-

ty pursuant to N.J.S.A. 24:6I-45.b, and such prohibiting ordi-

nance shall apply throughout the municipality.

1. Such ordinance or regulation may include the au-

thorization or prohibition of outdoor cultivation.

pursuant to N.J.S.A. 24:6I-45.b, for any class of cannabis

17:30-5.1 TREASURY—GENERAL

Supp. 3-6-23 30-16

business that is not otherwise prohibited from operating with-

in the municipality:

1. The cultivation, manufacturing, selling, and reselling

of usable cannabis and cannabis products and the opera-

tions to transport in bulk cannabis items by a cannabis cul-

tivator, cannabis manufacturer, cannabis wholesaler, can-

nabis distributor, or cannabis delivery service shall be per-

mitted uses in all industrial zones of the municipality; and

2. The selling of cannabis items to consumers from a

retail store by a cannabis retailer shall be a conditional use

in all commercial zones or retail zones, subject to meeting

the conditions set forth in any applicable zoning ordinance

or receiving a variance from one or more of those condi-

tions in accordance with the Municipal Land Use Law, P.L.

1975, c. 291 (N.J.S.A. 40:55D-1 et seq.).

(d) Within 28 days of receipt of a license application from

the Commission, a municipality shall inform the Commission

whether such license application complies with its ordinance

or regulation, as may be applicable. Failure of a municipality

to respond to the Commission within the designated time pe-

riod may result in the Commission deeming the license appli-

cation in compliance with any pertinent ordinance or regula-

tion.

(e) A municipality may provide input to the Commission

as to the municipality’s preferences for licensure pursuant to

N.J.A.C. 17:30-6.3.

(f) A municipality and its governing body entrusted with

zoning or the regulation of land use may provide zoning ap-

proval of a proposed location of a license applicant’s canna-

bis business premises, which shall consist of a letter or affi-

davit from appropriate officials of the municipality stating

that the location will conform to municipal zoning require-

ments allowing for activities related to the operations of the

proposed cannabis business to be conducted at the location,

and any variances granted concerning the operation of an

cannabis business.

1. Such municipality and its governing body and ap-

propriate officials entrusted with zoning or the regulation

of land use shall consider whether a cannabis business’s

premises conforms to municipal zoning requirements based

on the nature of the cannabis business’s primary business

operations.

(g) A municipality may demonstrate proof of local support

for the suitability of a cannabis business’s proposed location

by indicating that the intended location is appropriately locat-

ed or otherwise suitable for activities related to the operations

of the proposed cannabis business:

1. Where the municipality has a governing body, with

the adoption of a resolution by the governing body; or

2. Where the municipality has no governing body, with

a written letter of support from the municipality’s execu-

tive.

(h) A municipality may provide written approval for a

proposed expanded ATC pursuant to N.J.S.A. 24:6I-

46.a(3)(a)(ii).

(i) A county, municipality, or county or municipal gov-

ernment official shall neither solicit nor receive from a can-

nabis business, and a cannabis business shall not offer, any-

thing of value, including a contribution to a political cam-

paign, political party, or political organization as part of a

host community agreement, or demand that any payment be

made to a designated official, group, or organization in ex-

change for zoning approval, proof of local support, or written

approval for such cannabis business, or take any other action

that would violate N.J.S.A. 40A:9-22.5 of the Local Govern-

ment Ethics Law.

(j) A municipality may adopt an ordinance imposing a

transfer tax or user tax on the sale of any usable cannabis or

cannabis products by a cannabis establishment located within

the municipality pursuant to N.J.S.A. 40:48I-1, which may

include: sales between cannabis establishments, sales of can-

nabis items to consumers, or any combination thereof.

1. The rate of a transfer tax established shall be at the

discretion of the municipality, but in no case shall a rate

exceed two percent of the receipts from each sale by a can-

nabis cultivator; two percent of the receipts from each sale

by a cannabis manufacturer; one percent of the receipts

from each sale by a cannabis wholesaler; or two percent of

the receipts from each sale by a cannabis retailer.

2. The chief financial officer of the municipality shall

collect and administer any transfer tax or user tax imposed

by ordinance pursuant to N.J.S.A. 40:48I-1, including en-

forcing the payment of delinquent taxes.

(k) Any State or local law enforcement or regulatory au-

thority or agency may request that cannabis business person-

nel performing a transport or delivery present a Cannabis

Business Identification Card or a copy of a transport order or

delivery request.

(l) In no case may a municipality restrict the transporta-

tion of cannabis items through, or delivery of cannabis items

within, the municipality by adopting an ordinance or any oth-

er measure. Any such restriction shall be deemed void and

unenforceable.

(m) In accordance with N.J.S.A. 40:55D-18, fees estab-

lished by a municipality for issuing zoning permits, certifica-

tions, or authorizations to cannabis business applicants must

be reasonably based on the administrative costs for the issu-

ance of such municipal permit, certificate, or authorization.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

PERSONAL USE CANNABIS RULES 17:30-6.1

30-17 Supp. 3-6-23

SUBCHAPTER 6. CANNABIS BUSINESS LICENSING

GENERAL TERMS

17:30-6.1 Cannabis business licensing process; applica-

tion priority review and approval

(a) The Commission shall, annually, evaluate whether the

number of each class of cannabis business is sufficient to

meet the market demands of the State and whether the price

and availability of cannabis items are discouraging purchases

from the illegal market.

(b) The Commission shall accept new license applications

and issue additional licenses, as it deems necessary to meet

the demands identified at (a) above, except as otherwise pro-

vided in this section and section 33 of P.L. 2021, c. 16

(N.J.S.A. 24:6I-46).

1. During the 24-month period after February 22, 2021,

the Commission shall not allow more than 37 licensed can-

nabis cultivators. This number shall include any expanded

ATCs.

i. Microbusinesses with cannabis cultivator licens-

es, including microbusinesses that have converted into

standard cannabis businesses in accordance with

N.J.A.C. 17:30-7.15, shall not count towards this canna-

bis cultivator license limit of 37; and

ii. The Commission may accept, review, score, and

process additional applications for cannabis cultivators

during the 24-month period, provided that there are only

37 cannabis cultivators with licenses.

2. Following the 24-month period after February 22,

2021, the Commission shall review the limit of 37 cannabis

cultivator licenses and issue new cannabis cultivator li-

censes to meet the market demands of the State and may

accept new applications as it deems necessary to meet

those demands.

3. The Commission shall issue a sufficient number of

cannabis manufacturer, cannabis retailer, cannabis whole-

saler, cannabis distributor, and cannabis delivery service li-

censes to meet the market demands of the State and may

accept new applications for such additional licenses as it

deems necessary to meet those demands.

4. The Commission shall seek to ensure that cannabis

retailers have adequate access to licensed sources of can-

nabis items to discourage purchases from the illegal mar-

ket.

ditional or annual cannabis business license applications or

testing laboratory license applications it shall accept at any

given time and when it shall accept them. The Commission

may set any geographic limitations on the acceptance of li-

cense applications, provided such limitations are consistent

with meeting the market demands of the State.

1. During the period of time that the Commission is ac-

cepting a specific class of conditional or annual cannabis

business license applications, the Commission shall accept

license applications on a continuous rolling basis, which

shall be scored, reviewed, and approved in accordance with

this chapter.

2. The Commission shall provide notice of the initial

acceptance of license applications in the New Jersey Regis-

ter, on the Commission website, to the Commission email

list, and at a Commission public meeting. Any subsequent

changes to the type or class of license applications accept-

ed shall be noticed in the New Jersey Register, on the

Commission website, to the Commission email list, and at

a Commission public meeting.

3. The notice identified at (c)2 above regarding the ac-

ceptance of license applications shall include:

i. The types or classes of license applications being

accepted;

ii. The criteria for eligibility for such license appli-

cations;

iii. Any geographic limitations on the acceptance of

licenses; and

iv. If the number of available licenses of a certain

class is capped or limited, the number of available li-

censes of such class.

4. Microbusinesses, including microbusinesses that

have converted into standard cannabis businesses in ac-

cordance with N.J.A.C. 17:30-7.15, shall not count towards

any limitation on the number of cannabis business licenses

issued by the Commission.

(d) The Commission shall review, score, and approve con-

ditional and annual cannabis business license applications and

issue licenses to applicants that receive a full score or greater,

and shall have the full authority to establish the priority by

which conditional and annual cannabis business license ap-

plications and applicants are reviewed, scored, approved, and

issued, such that:

1. Social equity businesses, diversely owned business-

es, and impact zone businesses always have priority over

other license applicants;

2. Except where it conflicts with (d)1 above, condition-

al license applicants have priority over annual license ap-

plicants;

3. Except where it conflicts with (d)1 above, micro-

business license applicants have priority over standard

cannabis business license applicants;

4. Except where it conflicts with (d)1 above, license

applicants given bonus points pursuant to N.J.S.A. 24:6I-

36.d(2) have priority over license applicants with no bonus

points; and

17:30-6.1 TREASURY—GENERAL

Supp. 3-6-23 30-18

5. The priority of the review, scoring, and approval of

license applications and issuance of licenses is consistent

with meeting the market demands of the State, the Act, and

this chapter.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-6.1

17:30-6.2 Cannabis business licensing lottery

Where the number of applicants with the same number of

points in a cannabis business license class or group is greater

than the remaining number of licenses available from the

Commission, the Commission may conduct a public lottery

among the eligible license applicants in such class or group

that is impartial, random, and in a format selected by the

Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-6.3 Municipal preference

(a) A municipality may submit its preference(s) for the is-

suance of licenses to cannabis businesses by writing to the

Commission pursuant to the notice required at N.J.A.C.

17:30-6.1(c).

1. Such notice shall be received by the Commission

within 28 days of receipt of an application and shall not

conflict with any letter of support issued to a license appli-

cant pursuant to N.J.A.C. 17:30-7.10(b)9.

17:30-6.4 Diversely owned businesses

(a) Until such time that the Commission determines that it

will develop its own certification process, a “diversely owned

business” means a license applicant or a license holder that

has been certified as a minority-owned business, as a woman-

owned business, as a disabled-veteran-owned business, or as

any combination thereof, by the Division of Revenue and

Enterprise Services in the Department of the Treasury.

1. A minority-owned business or minority-owned busi-

ness enterprise is a business that meets the requirements at

N.J.S.A. 52:27H-21.18 et seq., including, but not limited

to, that:

i. At least 51 percent of the ownership interest is

held by persons who are minorities; and

ii. The management and daily business operations

are controlled by one or more of the minorities who own

it.

2. A woman-owned business or women-owned busi-

ness enterprise is a business that meets the requirements at

N.J.S.A. 52:27H-21.18 et seq., including, but not limited

to, that:

i. At least 51 percent of the ownership interest is

held by persons who are women; and

ii. The management and daily business operations

are controlled by one or more of the women who own it.

3. A disabled-veterans-owned business or disabled vet-

eran-owned business enterprise is a business that meets the

requirements at N.J.S.A. 52:32-31.2, including, but not

limited to, that:

i. At least 51 percent of the ownership interest and

control is held by persons who are disabled veterans; or

ii. The business has been officially verified by the

U.S. Department of Veterans Affairs as a service-

disabled veteran-owned small business.

(b) A diversely owned business shall submit, in its canna-

bis business license application, the certification from the

Division of Revenue and Enterprise Services, Department of

Treasury, pursuant to N.J.S.A. 52:27H-21.20 and 52:32-31.8.

Services to issue a certification in accordance with the rules

of the New Jersey Department of the Treasury shall not be

substituted by the Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Inserted (c).

17:30-6.5 Impact zone business

(a) An impact zone business means a license applicant or

license holder:

1. That operates a cannabis business that is located, or

intended to be located, within an impact zone;

2. Where more than 50 percent of the ownership inter-

est is held by a current resident or residents of an impact

zone who have resided there for three or more consecutive

years at the time of application; or

3. That presents a plan, along with an attestation, to en-

sure that:

i. At least 25 percent of its employees reside in any

of the State’s impact zones; and

ii. Among the employees who reside in impact

zones, at least 25 percent reside in the impact zone near-

est to, or within a 25-mile radius of, the cannabis busi-

ness’s location or intended location.

(b) For a license issued based upon an application with an

impact zone employment plan pursuant to (a)3 above, failure

of an impact zone business to meet the requisite percentages

of employees from an impact zone within 90 days of the

commencement of operations of a cannabis business may

result in the suspension or revocation of a license issued.

PERSONAL USE CANNABIS RULES 17:30-6.7

30-19 Supp. 3-6-23

business license application or renewal application, documen-

tation verifying its impact zone business status, including

evidence and attestations from any qualifying owner, passive

investor, or employee proving the qualification of the person

pursuant to the criteria at (a) above.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)3ii, inserted “or within a 25-mile radius of”; in (c), inserted “ap-

plication” preceding “, documentation”, and substituted “pursuant to” for

“under”.

17:30-6.6 Social equity business

(a) “Social equity business” means a license applicant or

license holder that meets one of the following criteria:

1. More than 50 percent of the ownership interest of the

license applicant or license holder is held by one or more

persons that demonstrate all of the following criteria:

i. At the time the initial application is submitted,

have lived in an economically disadvantaged area for

five of the 10 preceding years; and

ii. Are, at the time the initial application is submit-

ted and based on the preceding year’s income, a member

of a household that has a household income that is 80

percent or less of the average median household income

in the State, as determined annually by the U.S. Census

Bureau; or

2. More than 50 percent of the ownership interest of the

license applicant or license holder is held by one or more

persons who are eligible to be pronounced rehabilitated in

accordance with N.J.A.C. 17:30-7.12(e), if necessary, and

have been adjudicated delinquent for, or convicted of,

whether expunged or not, in this State, another state, or the

Federal government:

i. At least two marijuana- or hashish-related disor-

derly persons offenses; or

ii. At least one marijuana- or hashish-related indict-

able offense.

(b) A social equity business shall submit, in its cannabis

business license application or renewal application, documen-

tation verifying its social equity business status, including an

attestation from any qualifying owner or passive investor

attesting to the qualification of the person pursuant to the

criteria at (a) above.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, substituted “all” for “one”; in (b), inserted “application” pre-

ceding “, documentation”, and substituted “pursuant to” for “under”.

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 re-

striction on the number of microbusinesses authorized to op-

erate a cannabis business, including microbusinesses that

have converted into standard cannabis businesses in accord-

ance 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.

license or a microbusiness license holder:

1. Shall pay 50 percent of the amount of a standard li-

cense 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 appli-

cant 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 per-

cent of the total number of persons included in the mi-

crobusiness 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;

17:30-6.7 TREASURY—GENERAL

Supp. 3-6-23 30-20

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 ac-

quire 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 canna-

bis 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.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-6.7

17:30-6.8 Limitations on license applicants, license hold-

ers, owners, principals, passive investors, fi-

nancial sources, management services contrac-

tors, and vendor-contractors

(a) The license holder is the party that has responsibility

and liability for the conduct of the cannabis business(es).

(b) A license applicant or license holder shall not be estab-

lished as a trust.

most, one open and pending cannabis business license appli-

cation for each class of license at any one time and may only

hold cannabis business licenses in accordance with the limita-

tions in this section.

1. A license applicant or license holder may abandon a

license application, by providing written notice to the

Commission, in order to accept another license or submit a

new license application.

(d) During the 24-month period following February 22,

2021:

1. A license holder and its owners and principals may

concurrently hold one cannabis cultivator and one cannabis

manufacturer license;

2. A license holder and its owners and principals may

concurrently hold one cannabis retailer license and one

cannabis delivery service license;

3. A license holder and its owners and principals may

concurrently hold one cannabis wholesaler license and one

cannabis distributor license; and

4. A license holder and its owners and principals that

have an expanded ATC license may concurrently hold a can-

nabis cultivator, cannabis manufacturer, a cannabis retailer

license, additional cannabis retail licenses for each satellite

dispensary, and a cannabis delivery service license; or a can-

nabis wholesaler license and a cannabis distributor license.

(e) After the end of the 24-month period following Febru-

ary 22, 2021:

1. A license holder and its owners and principals may

concurrently hold one cannabis cultivator, one cannabis

manufacturer, one cannabis retailer, and one cannabis de-

livery service license;

2. A license holder and its owners and principals may

concurrently hold one cannabis wholesaler license and one

cannabis distributor license; and

3. A license holder and its owners and principals that

have an expanded ATC license may concurrently hold a

cannabis cultivator license, a cannabis manufacturer li-

cense, a cannabis retailer license, additional cannabis retail

licenses for each satellite dispensary, and a cannabis deliv-

ery service license; or a cannabis wholesaler license and a

cannabis distributor license.

(f) A license holder holding a testing laboratory license

may hold up to three testing laboratory licenses, but may not

hold any cannabis business licenses.

(g) A person or entity shall be an owner of only one li-

cense applicant or license holder.

1. Where a person is an owner of a license applicant or

license holder, that person’s spouse, domestic partner, civil

union partner, child, sibling, or parent may only be an

owner of such license applicant or license holder and shall

not be an owner of another license applicant or license

holder.

(h) A person or entity may hold an ownership interest as a

passive investor in more than one cannabis business or testing

laboratory license applicant or license holder.

(i) An owner, notwithstanding the amount of capital or as-

sets that such owner contributes to a cannabis business or

testing laboratory license applicant or license holder, shall

enjoy the customary incidents of ownership and shall share in

the profits and losses of such cannabis business or testing

laboratory license applicant or license holder proportionate to

the owner’s percentage of ownership interest in such license

applicant or license holder.

(j) An ownership interest may be held directly or indirect-

ly through an intermediary controlled by the holder, such as a

shell company or holding company; the presence of such an

intermediary shall not change the determination of the actual

holder of the ownership interest.

PERSONAL USE CANNABIS RULES 17:30-6.9

30-21 Supp. 3-6-23

1. An ownership interest may be in stock or securities

or other forms;

2. An ownership interest may not include a security in-

terest on a property, a lien, or an encumbrance; and

3. Mere receipt of a percent of revenue or profits in ac-

cordance with the terms of an agreement without a right to

ownership or equity interest is not an ownership interest.

(k) The majority share of the license applicant’s ownership

interest, including the ownership interest that qualifies it as a

diversely owned business, social equity business, impact zone

business, or microbusiness, shall remain the same from the

date of submission of a conditional license conversion appli-

cation or submission of an annual license application until

two years after the commencement of cannabis business op-

erations.

1. A transfer of ownership interest, in a license appli-

cant from a deceased owner to their heir shall not be pro-

hibited; and

2. A transfer of ownership interest in a license appli-

cant from a deceased owner to their surviving spouse, do-

mestic partner, or civil union partner, if the license was is-

sued jointly to both the parties, shall not be prohibited.

(l) A person or entity shall be a principal of only one li-

cense applicant or license holder.

(m) A principal may have control or decision-making au-

thority over a cannabis business or testing laboratory license

applicant, license holder, cannabis business, or testing labora-

tory directly or indirectly through an intermediary controlled

by the principal, such as a shell company or holding compa-

ny; the presence of such an intermediary shall not change the

determination of the actual person or entity exercising control

or decision-making authority.

(n) Nothing in this chapter shall be construed to prohibit

an employee or volunteer from working with more than one

license applicant or license holder, at any or all of its cannabis

business premises.

(o) An owner, passive investor, principal, employee, or

volunteer of a cannabis business or testing laboratory license

applicant or license holder shall be at least 21 years of age,

except that a person less than 21 years of age who receives

the transfer of ownership interest from a deceased owner or

passive investor of a cannabis business or testing laboratory

license applicant or license holder as an heir may be an owner

or passive investor of a cannabis business or testing laborato-

ry license applicant or license holder.

1. Such ownership interest shall be put into a trust with

the heir as the beneficiary until the heir is at least 21 years

of age.

(p) A management services contractor may contract with

and provide management services to up to five license appli-

cants or license holders.

(q) A license applicant or license holder or its owners or

principals may not serve as a management services contrac-

tor.

(r) A financial source may provide funding to up to seven

license applicants or license holders.

(s) A vendor-contractor may contract with and provide

services to more than one license applicant or license holder

during the licensing process and after the issuance of li-

cense(s).

(t) Remuneration provided by a cannabis business license

holder to a management services contractor, financial source,

or vendor-contractor may include either a flat fee or a percent

of revenue or profits, but in no case shall remuneration in-

clude an ownership interest in the cannabis business license

holder.

(u) No owner who also has decision-making authority or

principal of a license holder operating a licensed microbusi-

ness shall hold any financial interest in another licensed can-

nabis business, whether or not a microbusiness.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-6.9 Management services agreements

(a) A license applicant or license holder and a manage-

ment services contractor may, pursuant to this section, con-

tract to implement a management services agreement, which

may include, but is not limited to, management or supervi-

sion, operations, technical assistance, consulting, hiring em-

ployees, accounting, recordkeeping, leasing of equipment or

real or intellectual property, or provision of goods or materi-

als.

(b) The terms of a management services agreement, in-

cluding terms related to interest rates, returns, and fees, shall

be commercially reasonable and consistent with the fair mar-

ket value for the terms generally applicable to agreements of

a comparable nature.

1. The Commission may determine whether a term is

commercially reasonable or consistent with the fair market

value generally applicable to the services to be provided

and may consider:

i. The current valuation of a similar interest, ser-

vice, or product in the medical or personal use cannabis

market in this State and in other states with legal canna-

bis markets; and

ii. The current valuation of a similar interest, ser-

vice, or product in an industry with operations similar to

the cannabis industry, including, but not limited to, hor-

ticulture or agriculture, pharmaceutical drug manufactur-

ing, or sale of pharmaceutical drugs and alcohol in this

State and in other states with such industries.

17:30-6.9 TREASURY—GENERAL

Supp. 3-6-23 30-22

for between the parties in an arms-length transaction and shall

include the ability for either party to terminate the agreement

with due notice.

(d) A management services agreement shall provide that

the management services contractor and its owners, princi-

pals, and staff who are engaged, directly or indirectly, in op-

erating the cannabis business, are supervised in such opera-

tions by the license applicant or license holder and its owners

and principals.

(e) A management services agreement shall not grant:

1. A security interest in a cannabis business being op-

erated or in any of the assets of the license applicant or li-

cense holder; or

2. An ownership interest or any right, including a fu-

ture or contingent right, to obtain an ownership interest in

the cannabis business being operated.

(f) A management services contractor may be granted a

future right of first refusal to acquire an ownership interest in

a license applicant or license holder that would cause the

management services contractor to be an owner, where a

management services contractor is qualified pursuant to

N.J.A.C. 17:30-6.8 and 7.11 and will cease operations as a

management services contractor to become a passive investor

or an owner.

(g) The term of a management services agreement shall

not exceed five years without an opportunity for the parties to

renegotiate the agreement at arms-length.

(h) A management services agreement shall not include

any provision that provides the management services contrac-

tor with an unfair advantage over the license applicant or li-

cense holder or that violates any provisions of this subchap-

ter.

1. Provisions that provide an unfair advantage over the

license applicant or license holder and are prohibited pur-

suant to this subsection include, but are not limited to:

i. Any term of the agreement that is not commer-

cially reasonable or consistent with the fair market value

generally applicable to the services to be provided;

ii. Where a management services contractor re-

ceives a percentage of the net profits of the cannabis

business being operated, such percentage of the profits is

not commercially reasonable or exceeds the percentage

of the net profits received by the license applicant or li-

cense holder;

iii. Where the amount of a fee or price charged by

the management services contractor for a service, prod-

uct, intellectual property, lease, or brand provided is not

commercially reasonable;

iv. Where the percentage of the cannabis business’s

“shelf space” guaranteed for the products of the man-

agement services contractor or another entity designated

by the management services contractor is not commer-

cially reasonable or is excessive, including, but not lim-

ited to, a “shelf space” guarantee exceeding 50 percent

of the cannabis business’s total “shelf space”;

v. A promise by the license applicant or license

holder to buy a percentage of its products or materials

from the management services contractor or an entity

designated by the management services contractor where

the percentage is not commercially reasonable and is ex-

cessive, including, but not limited to, a promise exceed-

ing 50 percent;

vi. A promise by the license applicant or license

holder not to purchase cannabis, cannabis products, or

other products or materials from or sell cannabis, canna-

bis products, or other products or materials to specifical-

ly identified license applicants or license holders or other

businesses;

vii. A promise by the license applicant or license

holder of non-competition with other license applicants

or license holders;

viii. Where a penalty upon a license applicant or li-

cense holder for noncompliance with the agreement is

not commercially reasonable or is excessive relative to

the degree of and harm caused by the noncompliance,

including the surrender of personal assets of the license

applicant or license holder owners or principals; or

ix. Where the management services contractor is

granted control over the license applicant or license

holder such that it may overrule the license applicant’s

or license holder’s owners and principals over the most

fundamental decisions of the license applicant or license

holder, including its strategic plan, or any decision re-

garding a transfer of ownership interest of an owner.

(i) Prior to the execution of any management services

agreement, a license applicant or license holder shall submit

to the Commission:

1. A copy of the management services agreement and

any related agreements between the parties;

2. Information detailing any remuneration paid or to be

paid to the management services contractor by the license

applicant or license holder in exchange for the provision of

management services; and

3. All submissions required from a management ser-

vices contractor pursuant to N.J.A.C. 17:30-7.10 and 7.13.

(j) Prior to any material change to a management services

agreement, a license applicant or license holder shall:

1. Submit to the Commission, a copy of any proposed

material changes to the management services agreement

PERSONAL USE CANNABIS RULES 17:30-6.10

30-23 Supp. 3-6-23

and any related agreements between the parties, any pro-

posed material changes to information detailing any re-

numeration paid, or to be paid, to the management services

contractor by the license applicant or license holder; and

any proposed material changes to any previously required

submissions.

(k) The Commission shall determine whether the man-

agement services agreement and any material change comply

with the Act and this chapter; and shall notify the license ap-

plicant or license holder of the Commission’s decision.

(l) The license holder shall retain authority to audit, or use

an accounting firm to audit, the management services con-

tractor’s records relating to its performance under the man-

agement services agreement.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-6.10 Financial source agreements

(a) A license applicant or license holder and a financial

source may, pursuant to this section, contract to implement a

financial source agreement to provide financial assistance.

1. A financial source includes any creditor holding:

i. A security interest in the license holder, the can-

nabis business, or the premises; or

ii. An outstanding bond, loan, mortgage, trust deed,

note, debenture, or other form of indebtedness of the li-

cense holder or the cannabis business.

(b) The terms of the financial source agreement, including

terms related to interest rates, returns, and fees, shall be

commercially reasonable and consistent with the fair market

value for the terms generally applicable to agreements of a

comparable nature.

1. The Commission may determine whether a term is

commercially reasonable or consistent with the fair market

value generally applicable to the services to be provided

and may consider:

i. The current valuation of a similar interest, loan,

or product in the medical or personal use cannabis mar-

ket in this State and in other states with legal cannabis

markets; and

ii. The current valuation of a similar loan, service,

or product in an industry with operations similar to the

cannabis industry, including, but not limited to, horticul-

ture or agriculture, pharmaceutical drug manufacturing,

or sale of pharmaceutical drugs and alcohol in this State

and in other states with such industries.

tween the parties in an arms-length transaction and shall in-

clude the ability for the borrower to pay off the complete debt

at any time with due notice and no penalties for pre-payment.

(d) A financial source agreement shall not grant to a finan-

cial source an ownership interest in the license applicant or

license holder.

(e) A financial source agreement may grant a future or

contingent right to obtain an ownership interest in the canna-

bis business being operated, where a financial source is quali-

fied pursuant to N.J.A.C. 17:30-7.11 and 6.8.

(f) A financial source agreement shall not include a provi-

sion that provides the financial source with an unfair ad-

vantage over the license applicant or license holder or that

violates any provisions of this subchapter.

1. Provisions that provide an unfair advantage over the

license applicant or license holder and are prohibited pur-

suant to this subsection include, but are not limited to:

i. Any term of the agreement that is not commer-

cially reasonable or consistent with the fair market value

generally applicable to the services to be provided;

ii. Where a financial source receives a percentage of

the net profits of the cannabis business being operated,

such percentage of the profits is not commercially rea-

sonable or exceeds the percentage of the net profits re-

ceived by the license applicant or license holder;

iii. A loan from the financial source to the license

applicant or license holder that is not commercially rea-

sonable and is excessive, including, but not limited to, an

interest rate exceeding 20 percent;

iv. Where the percentage of a cannabis business’s

“shelf space” guaranteed for the products of the financial

source or an entity designated by the financial source is

not commercially reasonable or is excessive, including,

but not limited to, a “shelf space” guarantee exceeding

50 percent of the cannabis business’s total “shelf space”;

v. A promise by the license applicant or license

holder to buy a percentage of its products or materials

from the financial source or an entity designated by the

financial source where the percentage is not commercial-

ly reasonable or is excessive, including, but not limited

to, a promise exceeding 50 percent of the cannabis busi-

ness’s products or materials from such entity;

vi. A promise by the license applicant or license

holder not to purchase cannabis, cannabis products, or

other products or materials from or sell cannabis, canna-

bis products, or other products or materials to specifical-

ly identified license applicants or license holders or other

businesses;

vii. A promise by the license applicant or license

holder of non-competition with other license applicants

or license holders;

viii. Where a penalty upon a license applicant or li-

cense holder for noncompliance with the agreement is

not commercially reasonable or is excessive relative to

17:30-6.10 TREASURY—GENERAL

Supp. 3-6-23 30-24

the degree of and harm caused by the noncompliance;

and

ix. Where the financial source is granted control

over the license applicant or license holder, such that it

may overrule the license applicant’s or license holder’s

owners and principals over the most fundamental deci-

sions of the license applicant or license holder, including

its strategic plan, or any decision regarding a transfer of

ownership interest of an owner.

(g) Prior to any financial source agreement taking effect, a

license applicant or license holder shall submit to the Com-

mission:

1. A copy of the financial source agreement and any re-

lated agreements between the parties;

2. Information detailing any remuneration and interest

rate paid or to be paid to the financial source by the license

applicant or license holder in exchange for the bond, loan,

mortgage, trust deed, note, debenture, or other form of in-

debtedness; and

3. All submissions required from a financial source

pursuant to N.J.A.C. 17:30-7.10 and 7.13.

(h) Prior to any material change to a financial source

agreement, including a change of ownership interest or con-

trol of the financial source, a license applicant or license

holder shall:

1. Submit to the Commission a copy of any proposed

material changes to the financial source agreement and any

related agreements between the parties, any proposed mate-

rial changes to information detailing any renumeration and

interest rate paid or to be paid to the financial source by the

license applicant or license holder; and any proposed mate-

rial changes to any previously required submissions; and

2. The Commission shall determine whether the finan-

cial source agreement and any material change complies

with the Act and this chapter; and shall notify the license

applicant or license holder of the Commission’s decision.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

——————

SUBCHAPTER 7. CANNABIS BUSINESS CONDITION-

AL AND ANNUAL LICENSING PROCESS

17:30-6.10

17:30-7.1 Expanded alternative treatment centers

(a) Pursuant to N.J.S.A. 24:6I-46.a(3)(a)(ii), the Commis-

sion shall not require a full application pursuant to N.J.A.C.

17:30-7.10 from an alternative treatment center in order for

the ATC to begin engaging in the cultivation, manufacturing,

retailing, wholesaling, distributing, or delivery of cannabis

items, as applicable.

(b) Notwithstanding (a) above, an ATC that wishes to en-

gage in the cultivation, manufacturing, retailing, wholesaling,

distributing, or delivery of cannabis items, as applicable, shall

submit to the Commission:

1. A letter of intent notifying the Commission of the li-

censes sought by the ATC;

2. Municipal approval for each class of license sought

by the ATC, which shall include:

i. The ordinance(s) adopted by the municipality au-

thorizing the operation of each class of cannabis busi-

ness license being sought by the ATC, or a statement

explaining that there exists no municipal ordinance pro-

hibiting the class of cannabis business license and, thus,

all classes are allowed pursuant to N.J.S.A. 24:6I-45;

ii. An attestation by the ATC that, as a condition of

licensure, it shall comply with all restrictions on the lo-

cation, manner, and times of operation of cannabis busi-

nesses established by the municipality; and

iii. Zoning approval, a resolution from the munici-

pality’s governing body, or a letter from the highest-

ranking municipal official, as applicable, that authorizes

the ATC to engage in the cultivation, manufacturing, re-

tailing, wholesaling, distributing, or delivery of cannabis

items at the ATC’s current premises;

3. A certification to the Commission that the alternative

treatment center has sufficient quantities of medical canna-

bis and medical cannabis products available to meet the

reasonably anticipated needs of registered qualifying pa-

tients;

4. A certification to the Commission that the alternative

treatment center shall not make operational changes that

reduce access to medical cannabis for current and newly

registered qualifying patients in order to operate a cannabis

establishment, as a distributor, or delivery service. Such

certification shall include a detailed plan for prioritizing

and meeting the needs of registered qualifying patients;

5. A list of owners, principals, management services

contractors, financial sources, and vendor-contractors asso-

ciated with the proposed cultivation, manufacturing, retail-

ing, wholesaling, distributing, or delivery of cannabis

items, as applicable.

i. Any new owners, principals, management ser-

vices contractors, financial sources, or vendor-

contractors may be required to comply with the provi-

sions at N.J.A.C. 17:30-7.11, 7.12, and 7.13;

6. An attestation signed by a bona fide labor organiza-

tion stating that the ATC has entered into a labor peace

agreement with such bona fide labor organization;

7. A social equity plan in accordance with N.J.A.C.

17:30-9.4(e) to make a good faith effort to recruit and em-

ploy, or contract with as vendor-contractors, persons who

PERSONAL USE CANNABIS RULES 17:30-7.2

30-25 Supp. 3-6-23

would otherwise qualify for the provisions at N.J.A.C.

17:30-6.6(a)1 or 2; and

8. Any other information the Commission deems rele-

vant in determining whether to accept the ATC’s certifica-

tions.

tions pursuant to (b) above, the Commission shall assess:

1. Total qualifying patient enrollment in the Statewide

medical cannabis program;

2. Qualifying patient enrollment at the ATC;

3. Statewide inventory and inventory of the ATC;

4. Statewide sales of medical cannabis and medical

cannabis products, and sales at the ATC;

5. The current medical cannabis canopy of the ATC;

6. The total medical cannabis canopy needed to serve

the ATC’s qualifying patients on an ongoing basis;

7. The total medical cannabis canopy needed to serve

the total number of qualifying patients in the medical can-

nabis program on an ongoing basis; and

8. The operational plans and capacity of the ATC to

maintain or expand medical cannabis access for qualifying

patients.

(d) The Commission shall only accept a certification from

an ATC pursuant to (c) above, when an ATC has proven, by

clear and convincing evidence, that engaging in the cultiva-

tion, manufacturing, retailing, wholesaling, distributing, or

delivery of cannabis items, as applicable, shall not impact

access for registered qualifying medical cannabis patients and

shall not impact the availability of medical cannabis or medi-

cal cannabis products.

(e) The Commission shall approve an expanded ATC in

accordance with this subchapter where:

1. An ATC has submitted complete and accurate and

verifiable information, as determined by the Commission,

pursuant to (b) above;

2. The Commission accepts the ATC’s certifications,

pursuant to (b), (c), and (d) above; and

3. The ATC pays the conversion fee pursuant to

N.J.A.C. 17:30-7.17.

(f) The Commission shall issue a written notice of its ap-

proval to an expanded ATC.

(g) After the expanded ATC has completed any necessary

construction or preparation of an expanded ATC, the expand-

ed ATC shall request an onsite assessment.

(h) The Commission shall conduct an onsite assessment of

the expanded ATC and determine whether its premises, oper-

ations, and procedures are consistent with its application, and

compliant with the Act and this chapter.

(i) If the Commission determines compliance, it shall is-

sue the cannabis license(s) to the expanded ATC.

(j) The Commission may deny an expanded ATC where:

1. The Commission does not accept the ATC’s certifi-

cations pursuant to (c) and (d) above;

2. The ATC does not meet the requirements at (b)

above;

3. The ATC fails to provide information, documenta-

tion, and assurances as required pursuant to P.L. 2021, c.

16 (N.J.S.A. 24:6I-31 et seq.), or this subchapter, or as re-

quested by the Commission;

4. The ATC fails to reveal any material fact pertaining

to the ATC’s certifications; or

5. The ATC supplies information that is untrue or mis-

leading as to a material fact pertaining to the qualification

criteria for an expanded ATC.

(k) If an expanded ATC is denied pursuant to this sub-

chapter, the Commission shall provide the denial to the ATC,

in writing, which shall include:

1. Notice of the denial of the expanded ATC and the

specific reason for the denial; and

2. The opportunity to request an administrative hearing

within 45 days after the date of the denial.

(l) The final decision on an expanded ATC shall be con-

sidered a final agency decision, subject to judicial review by,

and of which jurisdiction and venue for such review are vest-

ed in, the Appellate Division of the Superior Court pursuant

to N.J.A.C. 17:30-20.10.

(m) An expanded ATC is a cannabis business and subject

to all provisions of this chapter that are applicable to cannabis

businesses.

(n) Application materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-46.a(e)(3)(ii) and this section shall

not be considered public records pursuant to N.J.S.A. 47:1A-

1 et seq., or the common law concerning access to govern-

ment records.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.2 Conditional cannabis business license applica-

tion submission and approval or denial

(a) The Commission shall provide notice in the New Jer-

sey Register of the application requirements for conditional

license applications in accordance with N.J.A.C. 17:30-6.1

and 17:30-7.3.

17:30-7.2 TREASURY—GENERAL

Supp. 3-6-23 30-26

1. Such notice shall be compliant with this subchapter,

and shall include:

i. Measures by which the license applicant will be

scored;

ii. Maximum scores for each individual measure;

and

iii. The total score required for a license applicant to

be approved for a license.

(b) Within 14 days of receipt of a complete conditional li-

cense application, the Commission shall forward a copy of an

application to the municipality in which the applicant desires

to operate a proposed cannabis business.

conditional license application, the Commission shall make a

determination on the application.

1. Such determination may include a determination that

the Commission requires more time to adequately review

the application.

(d) Applications shall be reviewed for completeness and

then scored in accordance with the criteria included in the

notice pursuant to N.J.A.C. 17:30-6.1 and 7.3.

(e) The Commission may verify the information contained

in the application by:

1. Contacting the license applicant and its owners and

principals by telephone, mail, or electronic mail;

2. Conducting an onsite assessment;

3. Requiring a face-to-face meeting; or

4. Requiring the submission of additional materials.

(f) The Commission shall approve a conditional license

applicant that:

1. Has submitted a complete conditional license appli-

cation in accordance with N.J.A.C. 17:30-7.3 and the no-

tice of application acceptance pursuant to N.J.A.C 17:30-

6.1;

2. Has scored sufficiently high to be issued a condi-

tional license in accordance with the criteria included in the

notice of application pursuant to N.J.A.C. 17:30-6.1 and

7.3;

3. Is qualified to hold a conditional license pursuant to

N.J.A.C. 17:30-7.4; and

4. Has submitted application fees pursuant to N.J.A.C.

17:30-7.17.

(g) A license application the Commission deems incom-

plete because of failure to address all applicable criteria and

measures or to provide requested information shall be re-

turned to the license applicant with the opportunity to cure the

deficiencies in a license application and resubmit it.

(h) The Commission may deny a conditional license appli-

cant that:

1. Is not qualified to hold a conditional license pursuant

to N.J.A.C. 17:30-7.4;

2. Has not scored sufficiently high to be issued a condi-

tional license in accordance with the criteria included in the

notice of application pursuant to N.J.A.C. 17:30-6.1 and

7.3;

3. Fails to reveal any material fact pertaining to qualifi-

cation pursuant to N.J.A.C. 17:30-7.4;

4. Has been determined by the Commission, by clear

and convincing evidence, to be unsuitable to hold a condi-

tional cannabis business license; or

5. Presents false or intentionally misleading infor-

mation in the application process.

(i) If an application is denied, the Commission shall pro-

vide the notice of denial to the applicant, in writing, which

shall include:

1. The specific reason for the denial; and

2. The opportunity to request an administrative hearing

within 45 days after the date of the denial.

(j) Such administrative hearing shall take place in the Of-

fice of Administrative Law in accordance with the Adminis-

trative Procedure Act, N.J.S.A. 52:14B-1 et seq., and 52:14F-

1 et seq., and the Uniform Administrative Procedures Rules,

N.J.A.C. 1:1.

1. The record for review shall be the application and

any attached supporting documents, excluding information

deemed exempt pursuant to N.J.S.A. 47:1A-5 et seq., or the

common law concerning access to government records.

Additional evidence and documentation shall not be con-

sidered.

(k) The final decision on an application pursuant to (f) or

(h) above 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 Supe-

rior Court, pursuant to N.J.A.C. 17:30-20.10.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.2

17:30-7.3 Conditional cannabis business license applica-

tion

(a) A conditional license applicant shall submit a com-

plete, separate application for each cannabis business license

requested and for each physical address and cannabis busi-

ness premises at which a license applicant seeks to operate.

PERSONAL USE CANNABIS RULES 17:30-7.3

30-27 Supp. 3-6-23

(b) A license applicant shall disclose and submit, as part of

the conditional license application, the following submissions

for the Commission’s evaluation:

1. The mailing and physical address of the license ap-

plicant’s proposed cannabis business premises or adminis-

trative office;

2. The Federal and State tax identification numbers for

the license applicant;

3. Documentation of a valid Business Registration Cer-

tificate on file with the Division of Revenue and Enterprise

Services in the Department of the Treasury;

4. Information about the license applicant entity, in-

cluding its legal name, any registered alternate name, and a

copy of its articles of organization and bylaws;

5. The business plan and management operation profile

for the proposed cannabis business;

6. The plan by which the license applicant intends to

obtain appropriate liability insurance coverage for the pro-

posed cannabis business;

7. A regulatory compliance plan, which shall detail the

plan by which the license applicant shall comply with the

remaining regulatory requirements to convert to an annual

license;

8. An affidavit that the statements included in the ap-

plication are true and correct, sworn by the license appli-

cant’s representative;

9. An authorization to release all information pertain-

ing to the license applicant, as requested by the Commis-

sion, signed by the license applicant’s representative;

10. A waiver of liability for any damages results to the

license holder from any disclosure or publication in any

manner, other than a willfully unlawful disclosure or publi-

cation, of any information acquired during the licensing

process, signed by the license applicant’s representative;

11. Any applicable fees required pursuant to N.J.A.C.

17:30-7.17; and

12. Any other application requirement established by the

Commission in a notice of acceptance of application pub-

lished in the New Jersey Register issued pursuant to

N.J.A.C. 17:30-6.1.

the conditional license application, the following submissions

relating to qualification, pursuant to N.J.A.C. 17:30-7.4:

1. A list of all owners, principals, and employees of the

license applicant, including their names, addresses, dates of

birth, resumes, and a photocopy of their unexpired driver’s

licenses or other state or Federal government-issued form

of photo identification that may be used to prove each per-

son is at least 21 years of age;

2. A list of the owners of the license applicant who

have resided in this State for at least two years as of the

date of the application, and documentation of such residen-

cy;

3. A list of the owners of the license applicant and the

percentage of each owner’s ownership interest;

4. A list of any proposed management services contrac-

tors, financial sources, or vendor-contractors;

5. Personal history disclosure forms for any owners,

principals, financial sources, or management services con-

tractors of the license applicant, as applicable;

6. Entity disclosure forms for any owners, principals,

financial sources, or management services contractors of

the license applicant, including entity formation docu-

ments, any proposed or signed management services or fi-

nancial source agreements, and tax returns, as applicable;

7. Proof that each owner of the conditional license ap-

plicant who has decision-making authority has, for the im-

mediately preceding taxable year, an adjusted gross income

of no more than $200,000, or no more than $400,000, if fil-

ing jointly with another individual;

8. A certification that each owner of the license appli-

cant who has decision-making authority does not have any

ownership interest in any other license applicant applying

for, or a license holder holding, an annual cannabis busi-

ness license;

9. For each owner, principal, or employee of the li-

cense applicant, as well as each staff member of a license

applicant’s management services contractor that partici-

pates in the obtaining, possession, securing, cultivating,

manufacturing, transporting, selling, delivering, or destroy-

ing cannabis items, written consent to be fingerprinted and

to undergo a criminal history record background check and

any evidence of rehabilitation pursuant to N.J.A.C. 17:30-

7.12;

10. For each owner, principal, and employee of the li-

cense applicant, certification confirming the person’s sub-

mission to the jurisdiction of the courts of the State and

pledging to comply with the laws and rules of the State

pertaining to personal use cannabis;

11. For a license applicant that is a diversely owned

business, the certification that the license applicant is one

or more of: a minority-owned business, women-owned

business, or disabled veteran-owned business, as applica-

ble;

12. For a license applicant that is an impact zone busi-

ness, evidence from any qualifying owner, passive inves-

tor, or employee proving the qualification of the person

under the impact zone business criteria pursuant to

N.J.A.C. 17:30-6.5;

17:30-7.3 TREASURY—GENERAL

Supp. 3-6-23 30-28

13. For a license applicant that is a social equity busi-

ness, evidence from any qualifying owner or passive inves-

tor attesting to the qualification of the person under the so-

cial equity business criteria pursuant to N.J.A.C. 17:30-6.6;

and

14. For a microbusiness license applicant, proof that at

least 51 percent of the total number of persons included in

the microbusiness license applicant, including all owners,

principals, and employees, are residents of either the mu-

nicipality in which the microbusiness is, or will be located,

or of a municipality bordering such a municipality, at the

time of the application.

(d) A conditional license applicant shall provide the

Commission with a complete disclosure that includes all true

parties of interest.

1. The license applicant shall not attempt to conceal or

disguise ownership or other control over its operations in

its submissions, and such an attempt shall be grounds for

denial of an application.

(e) Application materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-36 and this section shall not be

considered public records pursuant to N.J.S.A. 47:1A-1 et

seq., or the common law concerning access to government

records.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.3

17:30-7.4 Conditional license holder qualification

(a) A license applicant or license holder is qualified to

hold a conditional license where:

1. Each owner, principal, employee, management ser-

vices contractor, and financial source of the license appli-

cant or license holder has complied with N.J.A.C. 17:30-

7.12;

2. No owner, principal, employee, or volunteer of the

license applicant or license holder has a disqualifying con-

viction pursuant to N.J.A.C. 17:30-7.12(d) without evi-

dence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(e);

3. No staff member of a license applicant’s or license

holder’s management services contractor that participates

in the obtaining, possession, securing, cultivating, manu-

facturing, transporting, selling, delivering, or destroying of

cannabis items for the license applicant or license holder

has a disqualifying conviction pursuant to N.J.A.C. 17:30-

7.12(d) without evidence of rehabilitation pursuant to

N.J.A.C. 17:30-7.12(e);

4. At least one owner of the license applicant shall have

resided in this State for at least two years as of the date of

the application;

5. Each owner in the conditional license applicant who

also has decision-making authority has, for the immediate-

ly preceding taxable year, an adjusted gross income of no

more than $200,000 or no more than $400,000 if filing

jointly with another individual; and

6. Each owner and principal of the license applicant or

license holder is eligible to be an owner or principal, re-

spectively, of the license applicant or license holder in ac-

cordance with N.J.A.C. 17:30-6.8.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)3, inserted “of” following “destroying”, substituted “for” for

“of”.

17:30-7.5 Conditional cannabis business license ac-

ceptance and issuance

(a) If the Commission approves an applicant applying for a

conditional license, the Commission shall provide the appli-

cant with written notice of approval.

(b) Within five business days of receiving notice of ap-

proval, a license applicant shall notify the Commission as to

whether:

1. It will accept the license; or

2. It will abandon the license, including if accepting the

license would violate N.J.A.C. 17:30-6.8 or make the li-

cense applicant otherwise ineligible or if the circumstances

of the license applicant have changed.

decision to accept or abandon the license shall result in the

license being deemed abandoned.

(d) If the license applicant approved for the conditional li-

cense accepts the license and provides to the Commission the

conditional application approval fee pursuant to N.J.A.C.

17:30-7:17, no later than 30 days after giving notice of ap-

proval, unless the Commission finds the applicant is not in

compliance with this subchapter or the Commission is noti-

fied by the relevant municipality that the applicant is not in

compliance with its ordinances or regulations in effect at the

time of the application, the Commission shall issue the condi-

tional license and provide the conditional license to the li-

cense applicant.

(e) The Commission shall provide, to a denied applicant,

the processes available at N.J.A.C. 17:30-7.2(i), (j), and (k).

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Deleted (d), recodified former (e) as new (d), substituted “application

approval” for “licensing” following “conditional”; and recodified former

(f) as new (e).

17:30-7.6 Conditional cannabis license phase

(a) The conditional license phase:

PERSONAL USE CANNABIS RULES 17:30-7.7

30-29 Supp. 3-6-23

1. Begins on the day that the conditional license is is-

sued 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 discre-

tion 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.

tional license where the conditional license holder has sub-

mitted 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 li-

cense 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 li-

cense holder shall not engage in purchasing, possessing, sell-

ing, cultivating, manufacturing, or selling cannabis or canna-

bis 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 re-

main the same as at the time of license issuance, however:

1. An owner or passive investor of the conditional li-

cense holder may transfer ownership interest to another

qualified party; and

2. The conditional license holder may add new quali-

fied 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.

17:30-6.4;

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 li-

cense 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 condi-

tional license holder shall not make any change in the loca-

tion for which the license applicant was awarded condi-

tional 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 crite-

ria, pursuant to N.J.A.C. 17:30-6.7.

i. Any such change in location during the condi-

tional license phase for an impact zone business or mi-

crobusiness license applicant that would result in non-

compliance with the impact zone business or microbusi-

ness criteria shall result in a denial of the conversion ap-

plication.

(j) During the conditional license phase, a conditional li-

cense holder may also notify the Commission of its intention

to abandon the license and such license will be returned to the

Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (d), substituted “license” for “licenses” following the first occur-

rence of “conditional”; in (d)3, substituted “Submit” for “Develop and

submit”; in (i), substituted “for” for “in” following “the location”; and

added (i)1 and (i)1i.

17:30-7.7 Conditional cannabis business conversion ap-

plication submission; approval; denial; ac-

ceptance; inspection; issuance; and com-

mencement of cannabis business operations

(a) The Commission shall provide notice in the New Jer-

sey Register of the application requirements for conditional

license conversion applications in accordance with N.J.A.C.

17:30-6.1 and this subchapter.

17:30-7.7 TREASURY—GENERAL

Supp. 3-6-23 30-30

1. Such notice shall be compliant with this subchapter

and shall include:

i. Measures by which the license applicant will be

scored;

ii. Maximum scores for each individual measure;

and

iii. The total score required for a license applicant to

be approved for a license.

(b) Prior to the expiration of the conditional license phase,

a conditional license holder shall submit a conversion appli-

cation to the Commission for an annual license.

then scored in accordance with the criteria included in the

notice pursuant to N.J.A.C. 17:30-6.1 and 7.3.

(d) The Commission may verify the information contained

in a conditional conversion application by:

1. Contacting the license applicant and its owners and

principals by telephone, mail, or electronic mail;

2. Conducting an onsite assessment;

3. Requiring a face-to-face meeting; or

4. Requiring submission of additional materials.

(e) At its discretion, the Commission may investigate and

may conduct probity review of the license applicant, its own-

ers, principals, and related entities and their finances, owner-

ship, and control structure as is necessary for such verifica-

tion pursuant to N.J.A.C. 17:30-7.13.

1. The license applicant shall cooperate with the Com-

mission investigation and verification process and provide

all information requested by Commission staff.

(f) The Commission shall approve a license applicant for

conversion to an annual license where the license applicant:

1. Has submitted a complete conditional license con-

version application in accordance with N.J.A.C. 17:30-7.8;

2. Has scored sufficiently high to be issued an annual

license in accordance with the criteria included in the no-

tice of application pursuant to N.J.A.C. 17:30-6.1 and 7.8;

3. Has been deemed qualified for an annual license

pursuant to N.J.A.C. 17:30-7.11;

4. Has submitted its conditional conversion application

submission fee, as applicable, pursuant to N.J.A.C. 17:30-

7.17; and

5. Has submitted sufficient information for the Com-

mission to determine that it is implementing the plans, pro-

cedures, protocols, actions, or other measures set forth in

its conditional license application and is in compliance

with all applicable conditions.

(g) A license application the Commission deems incom-

plete because of failure to address all applicable criteria and

measures or to provide requested information shall be re-

turned to the license applicant with the opportunity to cure the

deficiencies in a license application and resubmit it.

(h) The Commission may deny a license applicant for con-

version, where the applicant:

1. Is not qualified to hold an annual license pursuant to

N.J.A.C. 17:30-7.11;

2. Has not scored sufficiently high to convert a condi-

tional license to an annual license in accordance with the

criteria included in the notice of application pursuant to

N.J.A.C. 17:30-6.1 and this subchapter;

3. Fails to reveal any material fact pertaining to qualifi-

cation pursuant to N.J.A.C. 17:30-7.11;

4. Has been determined by the Commission, by clear

and convincing evidence, to be unsuitable to hold an annu-

al cannabis business license pursuant to N.J.A.C. 17:30-

7.11; or

5. Presents false or intentionally misleading infor-

mation in the application process.

(i) If an application is denied, the Commission shall pro-

vide notice of the denial to the applicant, in writing, which

shall include:

1. The specific reason for the denial; and

2. The opportunity to request an administrative hearing

within 45 days after the date of the denial.

(j) Such administrative hearing shall take place in the Of-

fice of Administrative Law in accordance with the Adminis-

trative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the Uni-

form Administrative Procedures Rules, N.J.A.C. 1:1.

1. The record for review shall be the application and

any attached supporting documents excluding information

deemed exempt pursuant to N.J.S.A. 47:1A-1 et seq., or the

common law concerning access to government records.

(k) The final decision on an application, pursuant to (f) or

(h) above, 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 Supe-

rior Court, pursuant to N.J.A.C. 17:30-20.10.

(l) Acceptance and issuance of the annual license, inspec-

tion of the cannabis business premises, and commencement

of cannabis business operations shall proceed in accordance

with N.J.A.C. 17:30-7.14.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

PERSONAL USE CANNABIS RULES 17:30-7.8

30-31 Supp. 3-6-23

17:30-7.8 Conditional cannabis business conversion ap-

plication

(a) The conversion application shall include the following

substantive requirements:

1. All information required pursuant to N.J.A.C. 17:30-

7.3, including any updates;

2. For each proposed location of a license applicant’s

cannabis business premises or administrative office, a de-

scription of the proposed location and its surrounding area,

including the following:

i. The mailing and physical address of the license

applicant’s proposed location;

ii. A description of the suitability or advantages of

the proposed location; and

iii. A site plan of the proposed location, including a

floor plan, which may optionally include renderings, ar-

chitectural plans, or engineering plans;

3. For each proposed location of a license applicant’s

cannabis business premises, evidence of compliance with

local codes and ordinances including, but not limited to:

i. The distance from the closest church, synagogue,

temple, or other place used exclusively for religious

worship; or

ii. The distance to the closest school, playground,

park, or child daycare facility;

4. Zoning approval, which shall consist of a letter or af-

fidavit from appropriate officials of the municipality that

the location will conform to municipal zoning requirements

allowing for activities related to the operations of the pro-

posed cannabis business, as will be conducted at the pro-

posed business, and any variances granted concerning the

operation of a cannabis business;

5. Proof of local support, which shall be demonstrated

by a resolution adopted by the municipality’s governing

body, or where the municipality has no governing body, a

written letter of support from the municipality’s executive;

6. For each proposed location of a license applicant’s

cannabis business premises, documentation demonstrating

that the license applicant will have final control of the

premises upon approval of the application, including, but

not limited to, a lease agreement, contract for sale, title,

deed, or similar documentation;

7. An environmental impact plan, which includes con-

sideration of sustainable alternatives to single-use plastic

packaging;

8. A safety and security plan that conforms with

N.J.A.C. 17:30-9.10;

9. A community impact or social responsibility plan;

10. A workforce development and job creation plan,

which includes an optional diversity plan;

11. Standard operating procedures for:

i. Adverse event reporting;

ii. Quality assurance and quality control;

iii. Recall of cannabis items, as needed or directed;

iv. Packaging and labeling;

v. Inventory control, storage, diversion prevention;

vi. Recordkeeping;

vii. Waste disposal/sanitation;

viii. Cultivation, manufacturing, retail sale, delivery,

and secure transport, as applicable, based on the class of

license sought;

ix. Accounting and tax compliance; and

x. The reporting of test results, as applicable, based

on the class of license sought;

12. An attestation signed by a bona fide labor organiza-

tion stating that the license applicant has entered into a la-

bor peace agreement with such bona fide labor organiza-

tion.

i. A conditional license holder operating as a mi-

crobusiness is exempted from this requirement;

13. For a social equity business, diversely owned busi-

ness, or impact zone business, evidence the license appli-

cant is still in compliance with the requirements of the des-

ignations; and

14. Any other application requirement established by the

Commission pursuant to the notice of acceptance of appli-

cation published in the New Jersey Register pursuant to

N.J.A.C. 17:30-6.1.

(b) The conversion application shall include the annual li-

cense qualification submissions required pursuant to N.J.A.C.

17:30-7.10(d).

shall provide the Commission with a complete disclosure that

includes all true parties of interest.

1. The license applicant or license holder shall not at-

tempt to conceal or disguise ownership or other control

over its operations in its submissions, and such an attempt

shall be grounds for denial of an application.

(d) Application materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-36 and this section shall not be

considered public records pursuant to N.J.S.A. 47:1A-1 et

seq., or the common law concerning access to government

records.

17:30-7.8 TREASURY—GENERAL

Supp. 3-6-23 30-32

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.8

17:30-7.9 Annual cannabis business license application

submission, approval, denial

(a) The Commission shall provide notice of the annual

cannabis business license application requirements in accord-

ance with N.J.A.C. 17:30-6.1.

1. Such notice shall be compliant with N.J.A.C. 17:30-

7.10, and shall include:

i. Measures by which the license applicant will be

scored;

ii. Maximum scores for each individual measure;

and

iii. The total score required for a license applicant to

be approved for a license.

(b) Within 14 days of receipt of a complete annual license

application, the Commission shall forward a copy of the ap-

plication to the municipality in which the applicant desires to

operate a proposed cannabis business.

annual license application, the Commission shall make a de-

termination on the application.

1. Such determination may include a determination that

the Commission requires more time to adequately review

the application.

(d) Applications shall be reviewed for completeness and

then scored in accordance with the criteria included in the

notice pursuant to N.J.A.C. 17:30-6.1 and 7.10.

(e) The Commission may verify the information contained

in an annual license application by:

1. Contacting the license applicant and its owners and

principals by telephone, mail, or electronic mail;

2. Conducting an onsite assessment;

3. Requiring a face-to-face meeting; and

4. Requiring the production of additional materials.

(f) At its discretion, the Commission may investigate and

may conduct a probity review of the license applicant, its

owners, principals, and related entities and their finances,

ownership, and control structure as it deems necessary.

1. The license applicant shall cooperate with the Com-

mission investigation and verification process and shall

provide all information requested by Commission staff.

(g) The Commission shall approve a license applicant for

an annual license where the applicant:

1. Has submitted a complete annual license application

in accordance with N.J.A.C 17:30-7.10;

2. Has scored sufficiently high to be issued an annual

license in accordance with the criteria included in the no-

tice of application pursuant to N.J.A.C. 17:30-6.1 and 7.10;

3. Has been deemed qualified to hold an annual license

pursuant to N.J.A.C. 17:30-7.11; and

4. Has submitted its annual license application submis-

sion fee, pursuant to N.J.A.C. 17:30-7.17.

(h) A license application the Commission deems incom-

plete because of failure to address all applicable criteria and

measures or to provide requested information shall be re-

turned to the license applicant with the opportunity to cure the

deficiencies in a license application and resubmit it.

(i) The Commission may deny a license applicant for an

annual license that:

1. Is not qualified to hold an annual license pursuant to

N.J.A.C. 17:30-7.11;

2. Has not scored sufficiently high to be issued an an-

nual license in accordance with the criteria included in the

notice of application pursuant to N.J.A.C. 17:30-6.1 and

7.10;

3. Fails to reveal any material fact pertaining to qualifi-

cation pursuant to N.J.A.C. 17:30-7.11;

4. Has been determined by the Commission, by clear

and convincing evidence, to be unsuitable to hold an annu-

al cannabis business license pursuant to N.J.A.C. 17:30-

7.11; or

5. Presents false or intentionally misleading infor-

mation in the application process.

(j) If an application is denied, the Commission shall pro-

vide notice of the denial to the applicant, in writing, which

shall include:

1. The specific reason for the denial; and

2. The opportunity to request an administrative hearing

within 45 days after the date of the denial.

(k) Such administrative hearing shall take place in the Of-

fice of Administrative Law in accordance with the Adminis-

trative Procedures Act, N.J.S.A. 52:14B-1 et seq., and

52:14F-1 et seq., and the Uniform Administrative Procedure

Rules, N.J.A.C. 1:1.

1. The record for review shall be the application and

any attached supporting documents excluding information

deemed exempt pursuant to N.J.S.A. 47:1A-1 et seq., or the

common law concerning access to government records.

(l) The final decision of an application pursuant to (g) or

(i) above shall be considered a final agency decision, subject

to judicial review by, and of which jurisdiction and venue for

PERSONAL USE CANNABIS RULES 17:30-7.10

30-33 Supp. 3-6-23

such review are vested in, the Appellate Division of the Supe-

rior Court pursuant to N.J.A.C. 17:30-20.10.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.10 Annual cannabis business license application

(a) An applicant for an annual license shall submit a com-

plete, separate application, on forms prescribed by the Com-

mission, for each cannabis business license requested and for

each physical address and cannabis business premises at

which a license applicant seeks to operate.

(b) A license applicant shall disclose and submit, as part of

the annual license applications process, the following materi-

als for the Commission’s evaluation:

1. The Federal and State tax identification numbers for

the license applicant;

2. Documentation of a valid Business Registration Cer-

tificate on file with the Division of Revenue and Enterprise

Services in the Department of the Treasury;

3. Information about the license applicant, including its

legal name, and any registered alternate name;

4. A copy of the documents reflecting the formation of

the license applicant entity, including, but not limited to,

articles of incorporation or organization, charter, bylaws,

stock issuance records, operating agreements, partnership

agreements, other formation documents filed with the Sec-

retary of State, and any other documents that govern the

legal and ownership structure of the entity;

5. If applicable, documents from the Federal or State

government recognizing the license applicant entity’s non-

profit status;

6. A description of the proposed location and its sur-

rounding area, including the following:

i. The mailing and physical address of the license

applicant’s proposed location;

ii. A description of the suitability or advantages of

the proposed location;

iii. A site plan of the proposed location, including a

floor plan, which may optionally include renderings, ar-

chitectural plans, or engineering plans;

7. Evidence of compliance with local codes and ordi-

nances including, but not limited to:

i. The distance from the closest church, synagogue,

temple, or other place used exclusively for religious

worship; or

ii. The distance to the closest school, playground,

park, or child daycare facility;

8. Zoning approval, which shall consist of a letter or af-

fidavit from appropriate officials of the municipality stat-

ing that the location will conform to municipal zoning re-

quirements allowing for activities related to the operations

of the proposed cannabis business, and any variances

granted concerning the operation of a cannabis business;

9. Proof of local support, which shall be demonstrated

by a resolution adopted by the municipality’s governing

body, or where the municipality has no governing body, a

written letter of support from the municipality’s executive;

10. Documentation demonstrating that the license appli-

cant will have final control of the premises upon approval

of the application. Documentation includes, but is not lim-

ited to, a lease agreement, contract for sale, title, deed, or

similar documentation;

11. Where a license applicant will lease the premises,

certification from the landlord that the landlord is aware

that the tenant’s use of the premises will involve activities

associated with operations as a cannabis business.

i. An application for an annual license that does not

include such certification shall be disqualified from con-

sideration;

12. The plan by which the license applicant intends to

obtain appropriate liability insurance coverage for the pro-

posed cannabis business;

13. Evidence supporting any of the following bonus

point categories, as applicable:

i. License applicants that are party to a collective

bargaining agreement with a bona fide labor organiza-

tion that currently represents, or is actively seeking to

represent, cannabis workers in New Jersey;

ii. License applicants that are party to a collective

bargaining agreement with a bona fide labor organiza-

tion that currently represents cannabis workers in anoth-

er state;

iii. License applicants that submit a signed project

labor agreement with a bona fide building trades labor

organization for the construction or retrofit of the facili-

ties associated with the license applicant;

iv. License applicants that submit a signed project

labor agreement with a bona fide labor organization for

any other applicable project associated with the license

applicant; or

v. License applicants that include at least one owner

lawfully residing in New Jersey for at least five years as

of the date of the application;

14. An operating plan, including, as applicable, a culti-

vation, manufacturing, retail sale, wholesaling, distributing,

or delivery services operating plan pursuant to N.J.S.A.

24:6I-36.d(1)(b)(i), (ii), and (iii);

17:30-7.10 TREASURY—GENERAL

Supp. 3-6-23 30-34

15. A business and financial plan;

16. An environmental impact plan, which shall, at a

minimum, include consideration of sustainable alternatives

to single-use plastic packaging, efforts to minimize water

usage, and any other factor required by the Commission in

a notice of application acceptance published in the New

Jersey Register issued pursuant to N.J.A.C. 17:30-6.1;

17. A safety and security plan that conforms with

N.J.A.C. 17:30-9.10;

18. A community impact or social responsibility plan;

19. A workforce development and job creation plan,

which may include an optional diversity plan;

20. Standard operating procedures for:

i. Adverse event reporting;

ii. Quality assurance and quality control;

iii. Recall of cannabis items, as needed or directed;

iv. Packaging and labeling;

v. Inventory control, storage, and diversion preven-

tion;

vi. Recordkeeping;

vii. Waste disposal/sanitation;

viii. Cultivation, manufacturing, retail sale, delivery,

and/or secure transport, as applicable, based on the class

of license sought;

ix. Accounting and tax compliance; and

x. The reporting of test results, as applicable, based

on the class of license sought.

21. An attestation signed by a bona fide labor organiza-

tion stating that the license applicant has entered into a la-

bor peace agreement with a bona fide labor organization.

i. This requirement does not apply to a microbusi-

ness applying for an annual license;

22. If a license applicant intends to enter into, or has en-

tered into, a partnership with a re-entry program for the

purpose of identifying and promoting employment oppor-

tunities for currently or formerly incarcerated people at the

cannabis business, the details of such partnership includ-

ing:

i. The name of the re-entry program;

ii. The employment or training opportunities at the

license applicant’s cannabis business that will be made

available to the re-entry population;

iii. Any other initiatives the license applicant will

undertake to provide support and assistance to the re-

entry population; and

iv. The training and support offered or provided for

the advancement of the re-entry population;

23. An affidavit that the statements included in the ap-

plication are true and correct, sworn by the license appli-

cant’s representative;

24. An authorization to release all information pertain-

ing to the license applicant, as requested by the Commis-

sion, signed by the license applicant’s representative;

25. A waiver of liability for any damages results to the

license holder from any disclosure or publication in any

manner, other than a willfully unlawful disclosure or publi-

cation, of any information acquired during the licensing

process, signed by the license applicant’s representative;

and

26. Any other information the Commission deems rele-

vant in determining whether to grant a license to the appli-

cant.

additionally include a certification that the proposed cannabis

retailer location is not in or upon any premises which operates

a grocery store, delicatessen, indoor food market, or other

store engaging in retail sales of food; or any premises in

which operates a store that engages in licensed retail sales of

alcoholic beverages, as defined at N.J.S.A. 33:1-1.b.

(d) A license applicant shall disclose and submit, as part of

the annual license application, the following submissions

relating to its qualification for an annual license, pursuant to

N.J.A.C. 17:30-7.11:

1. License applicant and cannabis business organiza-

tional charts identifying ownership, control, and operation-

al structure, including owners, principals, management ser-

vices contractors, managers, as well as all parent compa-

nies, subsidiaries, affiliates, predecessors, and successors

of the license applicant;

2. A list of all persons that are owners, passive inves-

tors, principals, and managers of the license applicant, in-

cluding their names, addresses, dates of birth, and each

owner’s and passive investor’s percentage of ownership in-

terest;

3. For all persons that are owners or principals of the

license applicant, a copy of their unexpired driver’s license

or other photo identification issued by the State, another

state, or the Federal government, which shall be proof that

the person is at least 21 years of age;

4. For all persons that are owners and principals of the

license applicant, a completed Personal History Disclosure

Form, including a resume;

5. A list of the persons that are owners of the license

applicant who have resided in this State for at least two

years as of the date of the application and documentation of

such residency;

PERSONAL USE CANNABIS RULES 17:30-7.10

30-35 Supp. 3-6-23

6. For each owner, principal, or employee of a license

applicant or license holder, as well as for each staff mem-

ber of a license applicant’s or license holder’s management

services contractor that participates in the obtaining, pos-

session, securing, cultivating, manufacturing, transporting,

selling, delivering, or destroying cannabis items, proof that

the person has been fingerprinted and written consent to

undergo a criminal history record background check pursu-

ant to N.J.A.C. 17:30-7.12;

7. For any person seeking to become an owner, princi-

pal, or employee of a license applicant or license holder

who has a disqualifying conviction pursuant to N.J.A.C.

17:30-7.12(d), evidence of rehabilitation pursuant to

N.J.A.C. 17:30-7.12(e), if any;

8. For any person seeking to become a staff member of

a license applicant’s or license holder’s management ser-

vices contractor that participates in the obtaining, posses-

sion, securing, cultivating, manufacturing, transporting,

selling, delivering, or destroying cannabis items who has a

disqualifying conviction pursuant to N.J.A.C. 17:30-

7.12(d), evidence of rehabilitation pursuant to N.J.A.C.

17:30-7.12(e), if any;

9. For the license applicant and each of its owners,

principals, or managers, a list of any pending or adjudicat-

ed criminal charges or convictions;

10. A list of entities that are owners, passive investors,

principals, and management services contractors of the li-

cense applicant, including their names, addresses, and each

owner’s and passive investor’s percentage of ownership in-

terest;

11. For all entities that are an owner, principal, or man-

agement services contractor of a license applicant, a com-

pleted Entity Disclosure Form;

12. For all persons or entities that hold at least 10 per-

cent aggregate ownership interest in, or are a member of

the executive team of a management services contractor of

a license applicant, their names, addresses, dates of birth,

positions held, percentage of ownership interest in the

management services contractor entity, and a completed

Personal History Disclosure Form for each person.

i. Except that for a person or entity holding owner-

ship interest in or control over a management services

contractor that is a qualified institutional investor, a

completed Personal History Disclosure Form for each

person is not required;

13. Any management services agreement, pursuant to

N.J.A.C. 17:30-6.9;

14. A list of all parent companies, subsidiaries, affiliates,

predecessors, and successors of the license applicant;

15. A list that describes, beginning with the formation of

the license applicant entity, any and all events such as

sales, mergers, business combinations, or consolidations

involving the entity, including all former names of the enti-

ty;

16. A list of all financial sources, including qualified in-

stitutional investors, holding debt of the license applicant.

i. The nature, type, terms, covenants, and priorities

of all outstanding debts of the license applicant, includ-

ing, but not limited to, bonds, loans, mortgages, trust

deeds, debentures, lines of credit, notes issued or execut-

ed, or to be issued or executed, or other forms of indebt-

edness of the license applicant or on its behalf;

ii. A completed Entity Disclosure Form for each fi-

nancial source, except a qualified institutional investor;

and

iii. A completed Personal History Disclosure Form

for each financial source that is a person;

17. Any proposed or executed contract, term sheet,

agreement, or side letter between an owner, principal, or

financial source and another party that relates to the owner-

ship and control structure, assets, liabilities, real or intellec-

tual property, revenue, funding or capitalization, royalties,

or profit, or future profit, of the license applicant or compa-

rable documents that change the legal structure of the li-

cense applicant, including any financial source agreement,

pursuant to N.J.A.C. 17:30-6.10;

18. A list of all vendor-contractors with whom the li-

cense applicant has contracts or agreements;

19. For the license applicant and each of its owners,

principals, managers, management services companies,

parent companies, subsidiaries, affiliates, predecessors, or

successors:

i. A list of any organizations that hold or previous-

ly held permits, licenses, or other authorizations to par-

ticipate in the cultivation, manufacturing, sale, or distri-

bution of medical cannabis or cannabis in any jurisdic-

tion, including a foreign jurisdiction, where the person or

entity serves or served as an owner, principal, or em-

ployee for six or more months;

20. For the license applicant and each of its parent com-

panies, subsidiaries, affiliates, predecessors, or successors:

i. A list of any previous violation of, or judgment,

order, consent decree, consent order, sanction, or penalty

pertaining to any state or Federal statute, regulation, or

code; and

ii. A list of all pending litigation or past litigation

that concluded in the last five years, whether in the State

or in another jurisdiction, in which the entity was in-

volved;

21. A list of every financial institution at which the li-

cense applicant has had an account in the last five years;

17:30-7.10 TREASURY—GENERAL

Supp. 3-6-23 30-36

22. A list of bankruptcy or insolvency proceedings by

the license applicant, and each of its parent companies,

subsidiaries, affiliates, predecessors, or successors, and a

copy of any bankruptcy decree as a result of the same;

23. A list of any charitable contributions made by the li-

cense applicant in the last five years;

24. A list of stocks held by the license applicant;

25. For each owner, principal, management services

contractor, and employee of the license applicant, certifica-

tion confirming the person’s or entity’s submission to the

jurisdiction of the courts of the State and agreeing to com-

ply with all laws and rules of the State pertaining to per-

sonal use cannabis;

26. For a license applicant that is a diversely owned

business, the certification that the license applicant is a mi-

nority-owned business, woman-owned business, or disa-

bled veteran-owned business, in accordance with N.J.A.C.

17:30-6.4;

27. For a license applicant that is an impact zone busi-

ness, an attestation from any qualifying owner, passive in-

vestor, or employee attesting to their qualification under

the impact zone business criteria, pursuant to N.J.A.C.

17:30-6.5;

28. For a license applicant that is a social equity busi-

ness, an attestation from any qualifying owner or passive

investor attesting to the qualification of the person under

the social equity business criteria, pursuant to N.J.A.C.

17:30-6.6;

29. For a microbusiness license applicant, proof that at

least 51 percent of the total number of persons included in

the microbusiness, including all owners, principals, and

employees, are residents of either of the municipality in

which the microbusiness, is or will be located, or of a mu-

nicipality directly bordering such a municipality, at the

time of the application;

30. An affirmation that the license applicant exercised

reasonable care to confirm its submission information and

the ability of each person or entity in its submission to

serve as an owner or principal without violating N.J.A.C.

17:30-6.8; and

31. Any other application requirement established by the

Commission in a notice of acceptance of application pub-

lished in the New Jersey Register issued pursuant to

N.J.A.C. 17:30-6.1.

(e) A license applicant shall provide the Commission a

complete disclosure pursuant to (d) above that includes all

true parties of interest.

1. The license applicant or license holder shall not at-

tempt to conceal or disguise ownership or other control

over its operations in its submissions.

(f) Application materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-36 or this section shall not be con-

sidered public records pursuant to N.J.S.A. 47:1A-1 et seq.,

or the common law concerning access to government records.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.10

17:30-7.11 Qualification for an annual cannabis business

license

(a) A license applicant or license holder is qualified to

hold an annual license where:

1. Each owner, principal, employee, or volunteer of a

license applicant or license holder, as well as each staff

member of a license applicant’s or license holder’s man-

agement services contractor that participates in the obtain-

ing, possession, securing, cultivating, manufacturing,

transporting, selling, delivering, or destroying cannabis

items has submitted a criminal history background check

pursuant to N.J.A.C. 17:30-7.12;

2. No owner, principal, employee, or volunteer of a li-

cense applicant or license holder has a disqualifying con-

viction pursuant to N.J.A.C. 17:30-7.12(d) without evi-

dence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(d);

3. No staff member of a license applicant’s or license

holder’s management services contractor that participates

in the obtaining, possession, securing, cultivating, manu-

facturing, transporting, selling, delivering, or destroying

cannabis items of the license applicant or license holder

has a disqualifying conviction pursuant to N.J.A.C. 17:30-

7.12(d) without evidence of rehabilitation pursuant to

N.J.A.C. 17:30-7.12(e);

4. At least one owner of the license applicant has resid-

ed in this State for at least two years as of the date of the

application;

5. Each owner and principal of the license applicant or

license holder is eligible to be an owner or principal, re-

spectively, of the license applicant or license holder in ac-

cordance with N.J.A.C. 17:30-6.8;

6. If a diversely owned business, the license applicant

or license holder fulfills all of the diversely owned business

requirements, pursuant to N.J.A.C. 17:30-6.4;

7. If an impact zone business, the license applicant or

license holder fulfills all of the impact zone business re-

quirements, pursuant to N.J.A.C. 17:30-6.5;

8. If a social equity business, the license applicant or

license holder fulfills all of the social equity business own-

ership requirements, pursuant to N.J.A.C. 17:30-6.6;

9. If a microbusiness, the license applicant or license

holder fulfills all of the microbusiness ownership require-

ments, pursuant to N.J.A.C. 17:30-6.7;

PERSONAL USE CANNABIS RULES 17:30-7.12

30-37 Supp. 3-6-23

10. No employee of any State, county, or local govern-

ment entity involved in the process of reviewing, pro-

cessing, or making determinations with regard to cannabis

business license applications has any direct or indirect fi-

nancial interest in the license applicant or license holder;

and

11. The license applicant or license holder has not pro-

vided anything of value to an employee of any State, coun-

ty, or local government entity involved in the process of

reviewing, processing, or making determinations with re-

gard to license applications in exchange for reviewing,

processing, or making any recommendations with respect

to a license application.

(b) A license applicant or license holder is not qualified to

hold a license where the license applicant or license holder:

1. Does not meet the requirements at (a) above;

2. Fails to provide information, documentation, and as-

surances as required pursuant to P.L. 2021, c. 16 (N.J.S.A.

24:6I-31 et seq.), or this subchapter or as requested by the

Commission, including failure to provide a required crimi-

nal history record background check or to cooperate with

the Commission in its investigation of the license appli-

cant;

3. Fails to reveal any material fact pertaining to qualifi-

cation;

4. Supplies information that is untrue or misleading as

to a material fact pertaining to the qualification criteria for

a license; or

5. Has been determined by the Commission to be un-

suitable to hold a cannabis business license pursuant to (c)

below.

license holder is unsuitable pursuant to (b)5 above, where the

license applicant or license holder has demonstrated:

1. To be a danger to the public health, safety, and gen-

eral welfare of the State; or

2. A history of:

i. Distributing marijuana to minors;

ii. Involvement with organized crime;

iii. Diverting marijuana from personal use or medi-

cal cannabis states to other states;

iv. Engaging in trafficking of controlled substances

not authorized by the Act or this chapter, or other illegal

activity; or

v. Engaging in violence or the use of firearms as

part of cannabis business operations.

(d) If the person is determined to be not qualified for an

annual license, such disqualification shall be considered a

final agency action subject to judicial review pursuant to

N.J.A.C. 17:30-20.10, and the Commission shall provide no-

tice of the determination to the person in writing, which shall

include:

1. The specific reason for the disqualification, includ-

ing any conviction that constitutes the basis for the disqual-

ification; and

2. Information about appeal rights pursuant to N.J.A.C.

17:30-20.10.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Section was “Qualification for annual cannabis business license”. In

(b)2, inserted a comma following “(N.J.S.A. 24:6I-31 et seq.)”, and

deleted “conditional” preceding “license applicant”; in (b)4, deleted

“conditional” preceding “license”; in (c)1, substituted “To be a” for “A”;

in (c)2iii, inserted “medical”; and rewrote (d).

17:30-7.12 Criminal history background check

(a) Each owner, principal, employee, or volunteer of a

cannabis business or testing laboratory license applicant or

license holder or staff member of a license applicant’s or li-

cense holder’s management services contractor shall provide

written consent to submit to a criminal history background

check pursuant to the Act and shall comply with procedures

established by the Division of State Police pursuant to

N.J.A.C. 13:59 for obtaining readable fingerprint impres-

sions.

1. The license applicant, or license holder, as applica-

ble, shall bear the cost for the criminal history background

check, including all costs of fingerprinting and administer-

ing and processing the check.

2. For a management services contractor, only staff

members that participate in obtaining, possessing, securing,

cultivating, manufacturing, transporting, selling, deliver-

ing, or destroying cannabis items on behalf of a license ap-

plicant or license holder shall be required to consent and

comply with a criminal history record background check.

(b) A person who is required to undergo a criminal history

background check pursuant to this section who refuses to

consent to, or cooperate in, the securing of a check of crimi-

nal history and background information shall be deemed un-

qualified as a license applicant or license holder.

demonstrates that a person has been convicted of a disqualify-

ing conviction pursuant to (d) below, the Commission shall

find the person disqualified from holding a license and shall

not approve the person for participation in a license applicant

or license holder.

(d) A disqualifying conviction is a conviction:

1. Of an indictable offense under this State’s law, or

equivalent offense under Federal law or any other state’s

law, that is substantially related to the qualifications, func-

17:30-7.12 TREASURY—GENERAL

Supp. 3-6-23 30-38

tions, or duties for which the license is required, which in-

cludes:

i. N.J.S.A. 2C:35-4.1.b (Booby traps in manufac-

turing or distribution facilities);

ii. N.J.S.A. 2C:35-6 (Employing a juvenile in a

drug distribution scheme, or a similar indictable offense

involving the use of a minor to dispense or distribute a

controlled dangerous substance or controlled substance

analog);

iii. N.J.S.A. 2C:35-8 (Distribution to persons under

age 18);

iv. N.J.S.A. 2C:35-11.1 (Counterfeit drugs, medical

devices);

v. N.J.S.A. 2C:36-5 (Delivering drug paraphernalia

to person under 18 years of age); or

vi. Any State, other state, or Federal offense involv-

ing fraud, deceit, or embezzlement as a necessary ele-

ment of the offense; and

2. Where not more than five years have passed since

the date of that conviction, satisfactory completion of pro-

bation or parole, or release from incarceration, whichever

is later.

(e) Notwithstanding the provisions at (c) above to the con-

trary, a person required to consent to a criminal history back-

ground check pursuant to (a) above shall not be disqualified

on the basis of any disqualifying conviction disclosed by a

criminal history record background check if the person has

affirmatively demonstrated to the Commission clear and con-

vincing evidence of rehabilitation. In determining whether

clear and convincing evidence of rehabilitation exists, the

Commission shall consider the following factors:

1. With respect to the license applicant or license hold-

er, the nature and responsibility of the position that the per-

son with a conviction would hold, has held, or currently

holds;

2. The nature and seriousness of the crime or offense;

3. The circumstances under which the crime or offense

occurred;

4. The date of the crime or offense;

5. The age of the person when the crime or offense was

committed;

6. Whether the crime or offense was an isolated or re-

peated incident;

7. Any social conditions that may have contributed to

the commission of the crime or offense; and

8. Any evidence of rehabilitation, including good con-

duct while incarcerated or in the community, counseling or

psychiatric treatment received, acquisition of additional ac-

ademic or vocational schooling, successful participation in

correctional work-release programs, or the recommenda-

tion of those who have had the person under their supervi-

sion.

(f) Notwithstanding the provisions at (c) above to the con-

trary, the Commission may, in its discretion, offer provisional

authority for a person to be an owner, principal, or employee

of a cannabis business or testing laboratory license applicant

or license holder for a period not to exceed three months if

the person submits to the Commission a sworn statement at-

testing that the person has not been convicted of any disquali-

fying conviction.

1. Such person’s provisional status does not guarantee

a person’s qualification.

2. Submission of a false attestation shall result in a de-

termination of the person’s disqualification, the revocation

of the person’s provisional status and any Cannabis Busi-

ness Identification Card and may result in permanent ineli-

gibility for the person to participate in a license applicant

or license holder.

3. If a license applicant or license holder demonstrates

a pattern of submission of such false attestations, the

Commission may sanction the license applicant or license

holder pursuant to N.J.A.C. 17:30-20, including with civil

monetary penalties.

(g) In accordance with the provisions of the Administrative

Procedures Act, N.J.S.A. 52:14B-1 et seq., and 52:14F-1 et

seq., and the Uniform Administrative Procedures Rules,

N.J.A.C. 1:1, any individual disqualified from owning, oper-

ating, or being employed by a cannabis business or testing

laboratory license applicant or license holder shall be given

an opportunity to challenge the accuracy of the disqualifying

criminal history record prior to being permanently disquali-

fied from participation.

1. Such challenges shall be made within 20 days of the

disqualification.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.12

17:30-7.13 Probity review

(a) After the receipt of an application from a license appli-

cant, as part of verification and probity review, the Commis-

sion, at its discretion, may require additional information and

the submission, by the license applicant, of supporting docu-

ments and other evidence before making a final decision on

the application or issuing a license.

(b) At the discretion of the Commission, an owner, passive

investor, management services contractor, or financial source

may be required to submit documentation verifying the

source of the funds provided to the license applicant, includ-

ing, but not limited to, a promissory note, credit facility, debt

PERSONAL USE CANNABIS RULES 17:30-7.13

30-39 Supp. 3-6-23

instrument, guarantor agreement, or loan agreement, as well

as closing documents.

persons or entities may be required to submit to a financial

probity review:

1. Owners;

2. Principals;

3. Members of a governing body that governs an owner

or a principal of a license applicant or license holder that is

an entity;

4. Management services contractors contracting with a

license applicant;

5. Any person or entity that holds at least 10 percent

aggregate ownership interest in or who is a member of the

executive team of a management services contractor con-

tracting with a license applicant or license holder;

6. Financial sources that are not a qualified institutional

investor;

7. Any person or entity that holds at least 10 percent

aggregate ownership interest in or who is a member of the

executive team of a financial source entity that is not a

qualified institutional investor; and

8. Vendor-contractors.

(d) Financial probity review for a person for the purposes

of verification for a license application and qualification for a

license may include submission of:

1. A state driver’s license, or other photo identification

issued by the State, another state, or the Federal govern-

ment;

2. A passport;

3. Any college diploma, transcript, or letter from a reg-

istrar providing confirmation of a person’s status at an aca-

demic or educational institution;

4. Ownership documents for any vehicles, aircraft, or

boats owned by the person or the person’s business;

5. Any professional licenses held, and any documents

related to sanctions imposed or known investigations in

connection with those licenses;

6. Any criminal record history and any information re-

garding rehabilitation pursuant to N.J.A.C. 17:30-7.12(e);

7. Documentation for any business, aside from the li-

cense applicant, in which the person currently holds at least

25 percent ownership interest, including, but not limited to,

partnership papers, operating agreements, and stock regis-

try-stock certificates;

8. Summary of any pending litigation or past litigation

that concluded during the previous five years, other than

divorce, in which the person was involved, including dock-

et number, venue, cause of action, named litigants, a copy

of the complaint, and disposition or current status;

9. Any employment contract or offer letter between the

license applicant and the person;

10. Most recently filed individual State, Federal, and

foreign tax returns including Schedule K1, and, if applica-

ble, most recently filed letter requesting an extension;

11. Most recently filed business State, Federal, and for-

eign tax returns for any business, aside from the license

applicant, in which the person holds more than 50 percent

ownership interest;

12. Any W-2 and 1099 forms for the prior three tax

years;

13. Current account statement for any personal bank ac-

count, including a money market account, for which the

person has signatory authority;

14. An original deed and purchase settlement statement,

for any real estate property in which the person has an

ownership interest;

15. The declaration page of any cash value life insurance

policy held by the person and the names of all beneficiar-

ies, including the name, trustee, and beneficiaries of any

trust;

16. Current account statement for any pension or retire-

ment account held by the person, including any 401k;

17. Current account statement for any account held by

the person that holds securities, including a brokerage or

investment account;

18. Any notes or loans receivable in the person’s name;

19. Any notes or loans payable in the person’s name;

20. Any documents relative to any contingent liabilities

in which the person serves as a guarantor;

21. Any liens, judgments, or taxes payable levied

against the person; and

22. Additional identifying information about the per-

son’s immediate family, including, but not limited to, mar-

riage, death, and birth certificates.

(e) Financial probity review for an entity for the purposes

of verification of license application submissions and qualifi-

cation may include submission of:

1. Entity organizational chart;

2. Entity business formation documents;

3. List and summary of all fines or sanctions imposed

by any agency regulating cannabis on the entity in any ju-

risdiction and the circumstances surrounding such fines or

sanctions;

17:30-7.13 TREASURY—GENERAL

Supp. 3-6-23 30-40

4. Summary of any pending litigation or past litigation

that concluded during the previous five years in which the

entity or its subsidiaries was involved, including docket

number, court name, cause of action, named litigants, a

copy of the complaint, and disposition or current status;

5. Documentation for any company, aside from the li-

cense applicant, in which the entity currently holds at least

25 percent ownership interest, including, but not limited to,

partnership papers, operating agreements, and stock regis-

try-stock certificates;

6. Most recently filed individual State, Federal, and

foreign tax returns including Schedule K1, and, if applica-

ble, most recently filed letter requesting an extension;

7. Most recently filed business State, Federal, and for-

eign tax returns for any business, aside from the license

applicant, in which the entity holds more than a 50 percent

ownership interest;

8. Minutes of the meetings of and resolutions passed by

the entity’s governing board for the previous two calendar

years;

9. Most recently filed annual financial reports of the

entity that are required to be filed with a national securities

exchange or over the counter market;

10. Unaudited balance sheet and income statement or

audited financial statement of the entity for the 24 months

previous to the application;

11. Monthly bank statements for the previous year for

all entity bank accounts related to the license applicant;

12. Any notes or loans receivable in the entity’s name;

13. Any notes or loans payable in the entity’s name;

14. Any liens, judgments, or taxes payable levied

against the entity;

15. Where the entity is a publicly traded corporation or a

private capital fund, a complete list of persons and entities

with any ownership interest in the entity; and

16. Any other information the Commission deems rele-

vant in determining whether to grant a license to the appli-

cant.

(f) Probity review materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-36 or this section shall not be con-

sidered public records pursuant to N.J.S.A. 47:1A-1 et seq.,

or the common law concerning access to government records.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), inserted “making a final decision on the application or” preced-

ing “issuing a license”; in (d)3, substituted “a person's status at an aca-

demic or educational institution” for “graduation”; in (d)6, deleted “,

along with a police report and disposition,” preceding “and any infor-

mation”; rewrote (d)12; in (e)7, inserted an “a” following “50”; and in

(e)9, substituted “with” for “by” following “to be filed”.

17:30-7.13

17:30-7.14 Annual cannabis business license acceptance;

inspection; issuance; commencement of oper-

ations

(a) After the Commission approves a license applicant ap-

plying for an annual license pursuant to N.J.A.C. 17:30-7.9,

the Commission shall give written notice of approval to the

applicant.

(b) Within five business days after receiving notice of ap-

proval, a license applicant shall notify the Commission as to

whether it will:

1. Accept the license; or

2. Abandon the license, including if accepting the li-

cense would violate N.J.A.C. 17:30-6.8 or make the license

applicant otherwise ineligible or if the circumstances of the

license applicant have changed.

decision pursuant to (b) above, to accept or abandon the li-

cense, shall result in the license being deemed abandoned.

(d) If a license applicant from a lottery abandons a license,

the license shall be offered to the next license applicant on the

waitlist, pursuant to N.J.A.C. 17:30-6.2.

(e) If the license applicant accepts the annual license, it

shall submit the annual license application approval fee, pur-

suant to N.J.A.C. 17:30-7.17.

(f) A license applicant shall have 365 days from the date

of the notice of approval to request a final onsite assessment

pursuant to (h) below.

(g) The license applicant has a continuing duty to seek ap-

proval for or report changes in the information submitted as

part of the annual license application, pursuant to N.J.A.C.

17:30-9.2.

1. If a material change occurs to an application that is

otherwise complete, the Commission may deem the appli-

cation incomplete pending further review.

(h) After the license applicant has completed construction

and preparation of its cannabis business premises or adminis-

trative office, the license applicant shall request, in writing,

that the Commission conduct a final onsite assessment.

(i) The Commission shall conduct a final onsite assess-

ment of the cannabis business and shall determine whether

the cannabis business premises or administrative office, oper-

ations, plans, procedures, protocols, and actions are consistent

with the annual license application and compliant with the

Act, this chapter, and any additional requirements provided

by the Commission.

(j) No later than 30 days after a cannabis business success-

fully passes such onsite assessment, unless the Commission

finds the applicant is not in compliance with this subchapter

or the Commission is notified by the relevant municipality

PERSONAL USE CANNABIS RULES 17:30-7.15

30-41 Supp. 3-6-23

that the applicant is not in compliance with its ordinances or

regulations in effect at the time of the application, the Com-

mission shall issue the annual license and provide the annual

license to the license applicant.

1. An annual license shall be valid for one year from its

date of issuance and may be renewed annually.

(k) If the Commission determines that the annual license

applicant is not compliant with this chapter, or the license

applicant does not undergo a successful final onsite assess-

ment yielding a determination of compliance pursuant to (i)

above within 365 days of the notice of approval, the Commis-

sion shall decline to issue the annual license approval and the

license shall be returned to the Commission.

(l) Within 14 days of the issuance of an annual license, the

license holder shall notify the Commission, in writing, of a

proposed opening date for the cannabis business.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b), substituted “five” for “seven”; in (e), substituted “license ap-

plication approval” for “licensing”; in (h), inserted “or administrative

office” and a comma following “request” and “in writing”; in (i), insert-

ed “or administrative office”; in (j), inserted “a cannabis business suc-

cessfully passes”; in (k), substituted “with this chapter” for “pursuant to

(g) above”; and in (l), inserted a comma following “Commission” and

“writing”.

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 truth-

ful.

1. The license applicant shall cooperate with the Com-

mission investigation and verification process and provide

all information requested by Commission staff.

conversion to a standard cannabis business license if its ap-

plication:

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 re-

quest to convert to a standard cannabis business;

iii. An amended version of the most recent annual

microbusiness license application or renewal that pro-

vides an overview of the license holder’s proposed

changes, including:

(1) A proposed site plan demonstrating the li-

cense holder’s ability to operate as a standard canna-

bis business; and

(2) A proposed business plan demonstrating the

license holder’s ability to operate as a standard canna-

bis business;

iv. An attestation signed by a bona fide labor organ-

ization stating that the license applicant has entered into

a labor peace agreement with such bona fide labor or-

ganization;

v. Submission of a microbusiness conversion appli-

cation 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 provi-

sions at N.J.A.C. 17:30-6.7.

(e) If an application is denied, the Commission shall pro-

vide 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 ap-

proval 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 de-

termine whether the cannabis business premises or adminis-

trative office, operations, plans, procedures, protocols, and

actions are compliant with the Act, this chapter, and any re-

quirements or conditions provided by the Commission, and

whether they are being implemented.

(i) If the Commission has determined compliance pursu-

ant to (h) above, the Commission shall issue an amended li-

cense to the license applicant reflecting that the licensee is a

standard cannabis business.

17:30-7.15 TREASURY—GENERAL

Supp. 3-6-23 30-42

1. The requirements specific to a microbusiness, pursu-

ant to N.J.A.C. 17:30-6.7 shall no longer apply to such li-

cense 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 opera-

tions, 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).

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-7.15

17:30-7.16 Renewals

(a) A license holder holding an annual license, including

an annual license converted from a conditional license, shall

renew such annual license annually.

(b) The Commission may renew a license subject to condi-

tions set forth in this chapter.

the annual licensing fee pursuant to N.J.A.C. 17:30-7.17 no

later than 90 days prior to the expiration of the current canna-

bis business license. Submission within 90 days of expiration

of the current cannabis business license may result in a lapse

in the cannabis business’s licensure and subject the cannabis

business to enforcement action.

(d) Pursuant to (c) above, the following may be grounds

for denial of a license renewal application:

1. Failure to provide truthful, correct, and current in-

formation;

2. Failure to maintain compliance with the Act or this

chapter;

3. Failure to maintain its diversely owned business,

impact zone business, social equity business, or microbusi-

ness status;

4. The inclusion of a person or entity not deemed quali-

fied to hold a license; or

5. The commission of three or more major violations

within the preceding 12 months.

(e) Renewal materials submitted to the Commission pur-

suant to N.J.S.A. 24:6I-7.2 or this section shall not be consid-

ered a public record pursuant to N.J.S.A. 47:1A-1 et seq., or

the common law concerning access to government records.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (c); in (d)3, deleted “or” at the end; in (d)4, substituted “; or”

for a period at the end; and added (d)5.

17:30-7.17 Cannabis business and testing laboratory fees

(a) The following fees shall be paid by conditional license

applicants or license holders, as applicable:

1. Conditional microbusiness license applica-

tion submission fee

$100

2. Conditional standard cannabis business li-

cense application submission fee

$200

3. Conditional microbusiness license applica-

tion approval fee

$400

4. Conditional standard cannabis business li-

cense application approval fee

$800

5. Conditional microbusiness license conver-

sion application submission fee

$100

6. Conditional standard cannabis business li-

cense conversion application submission fee

$200

7. Conditional microbusiness license conver-

sion application approval fee

$400

8. Conditional standard cannabis business li-

cense conversion application approval fee

$800

(b) Submission fees represent 20 percent of the total appli-

cation fee and shall be payable by all conditional license ap-

plicants.

tion fee and shall only be payable by successful conditional

license applicants.

(d) The following licensing fees shall be paid by license

applicants or license holders, as applicable:

1. Annual microbusiness license applica-

tion submission fee

$200

2. Annual standard cannabis business li-

cense application submission fee

$400

3. Annual microbusiness license applica-

tion approval fee

$800

4. Annual standard cannabis business li-

cense application approval fee

$1,600

5. Expanded ATC certification fee:

i. Medical cannabis cultivator expan-

sion

$400,000

ii. Medical cannabis manufacturer ex-

pansion

$300,000

iii. Medical cannabis dispensary expan-

sion

$100,000

PERSONAL USE CANNABIS RULES 17:30-7.17

30-43 Supp. 3-6-23

iv. Vertically integrated ATC with three

dispensaries

$1,000,000

v. Vertically integrated ATC with two

dispensaries

$900,000

vi. Vertically integrated ATC with one

dispensary

$800,000

6. Annual microbusiness cannabis cultiva-

tor initial or renewal licensing fee

$1,000

7. Annual standard cannabis cultivator initial or renew-

al licensing fee:

i. Tier I

$5,000

ii. Tier II

$10,000

iii. Tier III

$20,000

iv. Tier IV

$30,000

v. Tier V

$40,000

vi. Tier VI

$50,000

8. Annual microbusiness cannabis manu-

facturer initial or renewal licensing fee

$1,000

9. Annual standard cannabis manufacturer initial or re-

newal licensing fee:

i. With premises up to 10,000 square

feet

$20,000

ii. With premises greater than 10,000

square feet

$30,000

10. Annual microbusiness cannabis retailer

initial or renewal licensing fee

$1,000

11. Annual standard cannabis retailer initial

or renewal licensing fee

$10,000

12. Annual microbusiness cannabis whole-

saler initial or renewal licensing fee

$1,000

13. Annual standard cannabis wholesaler

initial or renewal licensing fee

$10,000

14. Annual microbusiness cannabis distrib-

utor initial or renewal licensing fee

$1,000

15. Annual standard cannabis distributor in-

itial or renewal licensing fee

$3,000

16. Annual microbusiness cannabis delivery

service initial or renewal licensing fee

$1,000

17. Annual standard cannabis delivery ser-

vice initial or renewal licensing fee:

$3,000

18. Microbusiness conversion application

submission fee

$200

19. Microbusiness conversion application

approval fee

$800

20. Testing laboratory license application

submission fee

$400

21. Testing laboratory license application

approval fee

$1,600

22. Testing laboratory initial or renewal li-

censing fee

$4,000

23. Background investigation fee

i. Financial source

$1,000

ii. Management services contractor

$1,000

iii. Each owner or principal of cannabis

business or testing laboratory

$250

24. Cannabis Business Identification Card

issuance fee

$25

(e) Submission fees represent 20 percent of the total appli-

cation fee and shall be payable by all annual license appli-

cants.

(f) Approval fees represent 80 percent of the total applica-

tion fee and shall only be payable by successful annual li-

cense applicants.

(g) An expanded ATC shall pay initial or renewal licens-

ing fees in accordance with the license(s) it holds, pursuant to

(d) above.

(h) Annual initial or renewal licensing fees at (d) above

shall include an annual license converted from a conditional

license.

(i) For the first year of operation for a cannabis business

following the initial issuance of the cannabis business’s li-

cense(s), the amount due in annual licensing fee shall be cal-

culated by subtracting the amount of annual application sub-

mission and approval fees submitted pursuant to this subchap-

ter from the total amount of annual licensing fees due for the

cannabis business.

1. Background investigation fees shall not be consid-

ered application fees pursuant to this subsection.

(j) The following material change fees shall be paid by

annual license holders, as applicable:

1. The fee to apply for a change of location of a canna-

bis business premises is:

i. Standard cannabis business annual: $10,000; or

ii. Microbusiness: $1,000;

2. The fee to apply for a change or modification of the

cannabis business’ capacity or physical plant is $2,000;

i. This fee shall not apply to a microbusiness con-

verting to a standard cannabis business pursuant to

N.J.A.C. 17:30-7.15; and

17:30-7.17 TREASURY—GENERAL

Supp. 3-6-23 30-44

3. The fee to apply for the transfer of more than 50 per-

cent of ownership interest in a license holder is $20,000.

i. Any financial source, management services con-

tractor, owner, or principal may be required to pay back-

ground investigation fees as part of an ownership interest

transfer.

(k) Fees shall be paid by certified check, money order, or

any other form of payment approved by the Commission, and

made payable to the “Treasurer, State of New Jersey.”

(l) Fees shall be deposited in the Cannabis Regulatory,

Enforcement Assistance, and Marketplace Modernization

Fund established pursuant to N.J.S.A. 24:6I-50.

(m) Conditional license applicants or license holders and

social equity business license applicants or license holders

shall be exempt from any background investigation fee at

(d)23 above.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

——————

SUBCHAPTER 8. CANNABIS BUSINESS IDENTIFICA-

TION CARDS

17:30-7.17

17:30-8.1 Commission issuance of Cannabis Business

Identification Cards; expiration

(a) Every owner, principal, management services contrac-

tor, employee, or volunteer of a cannabis business license

holder or a testing laboratory that accesses the premises of a

cannabis business or handles cannabis on behalf of a license

holder or testing laboratory and every cannabis handler pur-

suant to N.J.S.A. 24:6I-44.a shall be required to register with

the Commission and be issued a Cannabis Business Identifi-

cation Card.

(b) As part of the registration, the Commission shall verify

that the person who is requesting a Cannabis Business Identi-

fication Card:

1. Is at least 21 years of age;

2. Has completed a training course, whether from a li-

cense applicant, a license holder, or a third-party that has

been approved by the Commission and provides education

on, at a minimum, the following topics:

i. History of cannabis use, prohibition, and legali-

zation;

ii. Common cultivation techniques and

strain/cultivar varieties;

iii. Chemotypes of cannabis;

iv. Packaging, labeling, and advertising;

v. Cultivation and manufacturing processes;

vi. Health education regarding the risks of cannabis

use and over-use, including cannabis dependency;

vii. The medical use of cannabis; and

viii. Laws and rules pertaining to cannabis, including

the Act and this chapter;

3. Has authorized a criminal history background check

pursuant to N.J.A.C. 17:30-7.12(d) and does not have any

disqualifying convictions that have not been found to be

rehabilitated; and

4. Has paid the Cannabis Business Identification Card

fee, pursuant to N.J.A.C. 17:30-7.17.

shall include:

1. A copy of the requesting person’s driver’s license or

other unexpired photo identification issued by the State,

another state, or the Federal government; and

2. Proof of criminal record background check, and

where a person has a disqualifying conviction, proof of re-

habilitation, pursuant to N.J.A.C. 17:30-7.12.

(d) A requesting person that meets the requirements of this

subchapter shall be issued a Cannabis Business Identification

Card, but shall not begin working at the cannabis business or

handling cannabis items at a testing laboratory before the

Commission issues a Cannabis Business Identification Card

and the card is in the registrant’s physical possession.

(e) Cannabis Business Identification Cards expire one year

after the date of issuance, except a Cannabis Business Identi-

fication Card issued to cannabis business personnel with pro-

visional approval, which shall expire three months after issu-

ance.

(f) Cannabis Business Identification Cards shall contain:

1. The name of the person;

2. The name of the cannabis business or testing labora-

tory;

3. The dates of issuance and expiration; and

4. A photograph of the cardholder.

(g) The Commission may suspend, revoke, or refuse to re-

new a Cannabis Business Identification Card if the person

who is applying for or who holds the card violates any provi-

sion of the Act or this chapter; makes a false statement to the

Commission; or refuses to cooperate in any investigation by

the Commission.

(h) A Cannabis Business Identification Card issued pursu-

ant to this section is a personal privilege and authorizes work

described in this section only for the cardholder.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

PERSONAL USE CANNABIS RULES 17:30-9.3

30-45 Supp. 3-6-23

Section was “Commissioner issuance of Cannabis Business Identifi-

cation Cards; expiration”. Rewrote (c) and (d); in (f)3, substituted

“dates” for “date”; and in (h), substituted “pursuant to” for “under”.

17:30-8.2 Notice to Commission when employment or

affiliation ceases

A cannabis business or testing laboratory shall notify the

Commission within 10 business days of the date that a quali-

fied person pursuant to N.J.A.C. 17:30-8.1(a) ceases to work

at or be affiliated with the cannabis business or testing labora-

tory.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Substituted “A” for “The”.

17:30-8.3 Surrender of a Cannabis Business Identifica-

tion Card

Any Cannabis Business Identification Card holder shall

surrender to the Commission the Cannabis Business Identifi-

cation Card if they have been deemed no longer qualified to

validly use or possess the card for any reason.

——————

SUBCHAPTER 9. CANNABIS BUSINESS LICENSE

HOLDER MATERIAL CONDITIONS AND RE-

QUIREMENTS

17:30-9.1 Cannabis business premises

(a) A cannabis business shall conduct all operations au-

thorized by the Act and this chapter at the address(es) identi-

fied on the license(s) issued by the Commission.

1. The cannabis business license shall identify the

physical address of the cannabis business premises or ad-

ministrative office.

2. All cannabis business premises, and the principal or

administrative office of a cannabis business license holder

shall be located within the State of New Jersey.

3. The Commission shall conduct an onsite assessment

pursuant to N.J.A.C. 17:30-20.3 of each proposed cannabis

business premises or administrative office prior to license

issuance.

(b) A license holder may apply to change the location of

the cannabis business premises or administrative office, pur-

suant to N.J.A.C. 17:30-9.2.

to N.J.A.C. 17:30-6.7, the entire physical plant shall occupy

an area of no more than 2,500 square feet.

(d) The license holder shall display its license issued by

the Commission in a conspicuous location at each cannabis

business premises or administrative office at all times when

the license holder is engaged in conduct authorized pursuant

to the Act and this chapter involving cannabis.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, (a)3, (b), (d), inserted “or administrative office”; in (a)2, in-

serted “or administrative”; in (a)3, updated the N.J.A.C. cite; deleted

(a)4; and in (c), inserted “cannabis establishment”.

17:30-9.2 Changes to license applicant or license holder;

approval and notice; provisional approval

(a) Cannabis business license holders shall submit an ap-

plication for an amended license, along with the applicable

fee, if any, pursuant to N.J.A.C. 17:30-7.17, for the following

material changes, a change:

1. In ownership, which shall include:

i. Addition or removal of owners or passive inves-

tors;

ii. Change in license holder entity structure, includ-

ing any related mergers, acquisitions, or creation of new

related entities;

iii. Change in ownership structure or ownership in-

terest that results in a change of owner, pursuant to

N.J.A.C. 17:30-9.3; and

iv. Any other changes to the ownership and financial

information provided to the Commission pursuant to

N.J.A.C. 17:30-7.10 and 7.13;

2. Of management services contractor or the terms of

any management services agreement; pursuant to N.J.A.C.

17:30-6.9;

3. Of financial source or the terms of a financial source

agreement (FSA) pursuant to N.J.A.C. 17:30-6.10;

4. Of location;

5. Of modification of capacity, physical plant, premis-

es, or administrative office; or

6. Of name of the cannabis business.

(b) Failure to seek approval for such material changes pur-

suant to (a) above may result in sanctions upon the license

holder pursuant to N.J.A.C. 17:30-20, including civil penal-

ties, or suspension or revocation of any license issued to the

license holder.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)2 and (a)3, substituted “or” for “and”; in (a)5, substituted “prem-

ises, or administrative office” for “or premises”; and in (b), updated the

N.J.A.C. reference.

17:30-9.3 Transfers of ownership interest

(a) From the submission of a conditional license conver-

sion application or an annual license application to at least

two years after the cannabis business commences operations,

a license holder holding an annual license shall not make any

change to more than 50 percent of its ownership interest, ex-

cept that:

17:30-9.3 TREASURY—GENERAL

Supp. 3-6-23 30-46

1. A transfer of ownership interest in a license appli-

cant or license holder from a deceased owner to their heir

shall not be prohibited; and

2. A transfer of ownership interest in a license appli-

cant or license holder from a deceased owner to their sur-

viving spouse, domestic partner, or civil union partner, if

the license was issued jointly to both the parties, shall not

be prohibited.

(b) From the submission of the conditional license conver-

sion application or an annual license application to at least

two years after the cannabis business commences operations,

a license holder may add new loans from new or existing fi-

nancial sources or gifts.

commences operations, a diversely owned business license

holder shall maintain all conditions required to qualify as

eligible for its diversely owned business certification.

(d) Until at least two years after the cannabis business

commences operations, a social equity business license holder

shall maintain the conditions required to qualify for its social

equity business status.

(e) A license holder operating as a microbusiness shall not

transfer ownership interest such that the license holder no

longer qualifies as a microbusiness.

(f) If the cannabis business ceases operations during the

two-year period after the cannabis business commences oper-

ations, the license holder may not transfer the license to an-

other entity; the license will be considered to be abandoned

and will be returned to the Commission.

(g) A cannabis business license holder shall not provide,

transfer, or sell, or offer to provide, transfer, or sell any own-

ership interest to or employ or offer to employ any Commis-

sion member or employee restricted from such transactions

by the provisions of sections 33 through 35 of P.L. 2019, c.

153 (N.J.A.C. 24:6I-26 through 28).

(h) The Commission retains discretion to determine when

a transfer of ownership interests has occurred.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (a); and in (b), inserted “at”.

17:30-9.3

17:30-9.4 Ongoing material conditions and general re-

quirements applicable to cannabis business li-

cense holders

(a) No person or entity shall operate a cannabis business

without a Commission-issued license.

(b) A cannabis business shall only be operated under the

name on the license, which shall be the legal entity name as

found on the New Jersey business registration of the license

holder .

management services contractors, financial sources, and ven-

dor-contractors shall:

1. Maintain qualification to hold a license pursuant to

N.J.A.C. 17:30-7.4, as applicable;

2. Comply with the Act and this chapter; and

3. Cooperate with the Commission and its staff.

(d) Upon request of the Commission, a license applicant or

license holder shall provide, for any submission to the Com-

mission, a redacted copy that may be released to the public.

1. Redactions shall be limited to information that is

likely to be found to be exempted pursuant to N.J.S.A.

47:1A-1 et seq., or the common law on public records.

(e) A license holder shall make a good faith effort to re-

cruit and employ, or contract with, as vendor-contractors,

persons who would otherwise qualify for the provisions at

N.J.A.C. 17:30-6.6(a)1 or 2. A “good faith effort” means that

the license applicant or license holder shall demonstrate that

it took all necessary and reasonable steps to achieve employ-

ee and vendor-contractor participation by the persons who are

among the qualifying groups, which by their scope, quality,

quantity, intensity, and appropriateness to the objective, could

reasonably be expected to obtain sufficient participation from

such persons.

1. Good faith efforts shall extend beyond merely inter-

viewing candidates from qualifying groups to include doc-

umentation of follow-up and offers of employment and

contracting.

2. Good faith efforts shall include sufficient written

documentation of the license applicant’s efforts to recruit

qualifying persons, including a list of the names, addresses,

and contact information of all potential employees and con-

tractors, identifying those who qualify pursuant to N.J.A.C.

17:30-6.6(a)1 or 2, and whether they have accepted an em-

ployment or contracting offer, and the dates of contact.

3. Good faith efforts may include:

i. Coordinating meetings, including meetings in

economically disadvantaged areas, at which qualifying

persons could be informed of the employment and con-

tracting opportunities;

ii. Advertising in general circulation, trade associa-

tion, and minority-focused media concerning the oppor-

tunities for persons who have been affected by the crim-

inalization of cannabis to participate in the regulated

cannabis industry; and

iii. Contacting minority-, women-, and veteran-

owned business organizations and educational institu-

tions concerning the opportunities for persons who have

been affected by the criminalization of cannabis to par-

ticipate in the regulated cannabis industry.

PERSONAL USE CANNABIS RULES 17:30-9.4

30-47 Supp. 3-6-23

4. The cannabis business shall submit quarterly pro-

gress reports that include specifics on the good faith efforts

being made to ensure the cannabis business’s social equity

plan as presented in its application or certification to the

Commission is being achieved. The Commission may re-

quest additional information from the cannabis business to

assist in making a determination on whether good faith ef-

forts are being made.

(f) A microbusiness license holder shall employ no more

than 10 employees.

(g) The maintenance of a labor peace agreement with a

bona fide labor organization by a licensed cannabis business,

including an expanded ATC, shall be an ongoing material

condition of the cannabis business’s license.

1. A microbusiness is exempted from this requirement.

(h) Where a majority of the employees of a cannabis busi-

ness, including an expanded ATC, have voted to join a bona

fide labor organization, failure to enter into a collective bar-

gaining agreement within 200 days of the opening of such

licensed cannabis business, may result in a referral to the Na-

tional Labor Relations Board.

1. A microbusiness is exempted from this requirement.

(i) A license holder shall maintain sanitary conditions

throughout the cannabis business premises.

(j) A cannabis business shall seek to prevent the escape of

odors associated with cannabis over the boundary of the

property. Failure to engage in such an effort may result in

sanctions, including civil monetary penalties.

(k) A license holder shall implement a plan to increase sus-

tainability in its operations, which may include, but is not

limited to:

1. A waste reduction plan;

2. A water usage reduction plan;

3. Biodynamic farming;

4. A sustainable packaging plan that reduces or elimi-

nates the use of single-use plastics and promotes the use of

recyclable or environmentally friendly packaging; or

5. A plan to use renewable energy to power its opera-

tions.

(l) A visitor entering a cannabis business premises must

be accompanied by an escort with a Cannabis Business Iden-

tification Card at all times, except in the consumer area of a

cannabis retailer.

1. A vendor-contractor’s staff shall be considered to be

a visitor during any time present at a cannabis business

premises, except if the person is a management services

contractor or other cannabis handler that possesses a Can-

nabis Business Identification Card, in accordance with

N.J.A.C. 17:30-8.1(a).

(m) An expanded ATC issued cannabis business licenses

pursuant to N.J.A.C. 17:30-7.1 shall be authorized to use the

premises for all activities under the Act and the Jake Honig

Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307

(N.J.S.A. 24:6I-1 et seq.), without being required to establish

or maintain any physical barriers or separations between op-

erations related to the medical use of cannabis and operations

related to personal use of cannabis items.

1. As a condition of licensure, an expanded ATC shall

meet the anticipated treatment needs of registered qualify-

ing patients before meeting the retail requests of consum-

ers, and the expanded ATC shall not make operational

changes that reduce access to medical cannabis for regis-

tered qualifying patients in order to operate a cannabis

business.

2. If the Commission finds an expanded ATC does not

have sufficient quantities of medical cannabis or medical

cannabis products available to meet the reasonably antici-

pated needs of qualifying patients, the Commission may is-

sue fines, limit retail sales, temporarily suspend the ex-

panded ATC’s cannabis business licenses, or issue any

other penalties included at N.J.A.C. 17:30-20.

3. Not fewer than 90 days prior to the date on which

the expanded ATC’s cannabis business license is set to ex-

pire after its first year of operations, in order to renew its

cannabis business license pursuant to N.J.A.C. 17:30-7.16,

an expanded ATC shall:

i. Certify to the Commission as to the continued

material accuracy of the expanded ATC’s previously ap-

proved ATC license application and its compliance with

the provisions of the Act regarding its operations con-

cerning cannabis or cannabis items; and

ii. Submit a new written approval from the munici-

pality in which the expanded ATC is located, approving

the continued operations as a cannabis business.

4. After the end of the second year of expanded ATC’s

licensure, the license renewal process pursuant to N.J.A.C.

17:30-7.16 shall be followed.

5. Nothing shall authorize an alternative treatment cen-

ter that has not been licensed as an expanded ATC pursuant

to N.J.A.C. 17:30-7.1 to:

i. Provide cannabis items to a person who is not a

registered qualifying patient;

ii. Purchase or acquire cannabis items in a manner

or from a source not permitted by the Jake Honig Com-

passionate Use Medical Cannabis Act, P.L. 2009, c. 307

(N.J.S.A. 24:6I-1 et seq.); or

iii. Operate on the same cannabis business premises

as a cannabis business license applicant or license hold-

17:30-9.4 TREASURY—GENERAL

Supp. 3-6-23 30-48

er, although it is not prohibited for an unaffiliated can-

nabis business and ATC to be located in the same multi-

tenant building or strip mall in separate, unconnected

premises.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section

17:30-9.4

17:30-9.5 Prohibitions applicable to a cannabis business

(a) A license holder shall not allow any cannabis item or

alcohol to be consumed on the premises or administrative

offices of the cannabis business, or in public areas in the vi-

cinity of such premises or administrative offices.

(b) Sales of food, beverages, alcohol, or tobacco on the

premises of a cannabis business are prohibited, except that

sales of food and non-alcoholic beverages to personnel of

such cannabis business on the premises in an area separated

from the physical plant are permitted.

person who is under the age of 21 is prohibited, unless the

individual is accompanied by and supervised by a parent or

legal guardian or is otherwise permitted by law.

(d) A license holder and its personnel and agents shall not

sell or give for consumption any cannabis items to a person

under 21 years of age.

(e) Pursuant to N.J.A.C. 17:30-9.4(b), a cannabis business

shall not use, display, advertise, or operate under any alter-

nate name, including, but not limited to, any doing business

as an alternate name, nor shall it hold itself out to be an entity

operating under an alternate name.

1. This prohibition shall not apply to any alternative

treatment center that was issued a permit prior to the effec-

tive date of P.L. 2019, c. 153 (N.J.S.A. 24:6I-5.1 et seq.),

and any alternative treatment center that was issued a per-

mit subsequent to July 2, 2019, pursuant to an application

submitted prior to that effective date, provided that the

ATC’s alternate name was authorized by the Commission

prior to August 19, 2021, and that the ATC does not

change its name or alternate name subsequent to August

19, 2021. An ATC that changes its name or alternate name

on or after August 19, 2021, shall be subject to the prohibi-

tion on the use of alternate names.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Section was “Prohibitions applicable to cannabis business”. Rewrote

the section.

17:30-9.6 Cannabis business operations manual

(a) Each cannabis business shall develop, implement, and

maintain, on the premises or at the administrative office, an

operation manual that addresses, at a minimum, the follow-

ing:

1. Procedures for the oversight of the cannabis busi-

ness, which shall include:

i. Adverse event reporting;

ii. Quality assurance and quality control;

iii. Recall of cannabis items, as needed or directed;

iv. Packaging and labeling of cannabis items;

v. Inventory control, storage, and diversion preven-

tion;

vi. Waste disposal/sanitation;

vii. Accounting and tax compliance; and

viii. Reporting of test results, as applicable, based up-

on the class of license sought;

2. Procedures for safely cultivating, manufacturing,

wholesaling, distributing, delivering, or selling cannabis, as

applicable;

3. Procedures to ensure accurate recordkeeping, includ-

ing inventory procedures to ensure that quantities cultivat-

ed do not suggest redistribution;

4. Employee, visitor, and facility security policies;

5. Safety procedures, including a disaster plan with

procedures to be followed in case of fire or other emergen-

cies, and personal safety and crime prevention techniques;

and

6. A description of the cannabis business’s:

i. Hours of operation and after-hour contact infor-

mation;

ii. Fee schedule;

iii. Confidentiality and privacy standards regarding

cannabis business operations and consumers, as applica-

ble;

iv. For a cannabis retailer, criteria for refusing ser-

vice to a consumer pursuant to unacceptable behavior;

and

v. Procedures for ensuring consumers comply with

cannabis business age verification policies.

(b) The license holder shall ensure that the operations

manual of the cannabis business is available for inspection by

the Commission, upon request.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), inserted “or at the administrative office”; in (a)1iii, inserted a

comma; in (a)1v, inserted “and”; in (a)1viii, substituted “upon” for “on”;

and in (a)2, inserted “wholesaling, distributing, delivering,”.

17:30-9.7 Cannabis business recordkeeping

(a) A cannabis business shall maintain a system of record-

keeping that will permit the identification for purposes of

PERSONAL USE CANNABIS RULES 17:30-9.7

30-49 Supp. 3-6-23

recall of any batch of cannabis or lot of cannabis products

from consumers when such cannabis items are found to be

unsafe for use.

1. As part of this system, the cannabis business shall

ensure that the container that contains the cannabis item at

any stage in the process of cultivation, manufacturing, and

sales bears an identifying name and number, and that the

final packaged cannabis item contains all labeling infor-

mation required pursuant to N.J.A.C. 17:30-16.3, to make

it possible to determine the complete manufacturing history

of the packaged cannabis item.

(b) A cannabis business shall maintain a complete and ac-

curate confidential record of all sales of usable cannabis or

cannabis products, including the cannabis business to whom

the cannabis item is sold, if applicable, and the quantity, vari-

ety, form, and cost of the cannabis item.

1. Such records shall be kept and maintained for four

years, either on-premises or at an off-site facility, in written

or electronic form.

2. In order to ensure that individual privacy is protect-

ed, a cannabis retailer shall not collect and retain any per-

sonal information from consumers other than information

typically acquired in a financial transaction conducted by

the holder of a Class C retail license concerning alcoholic

beverages, as set forth at N.J.S.A. 33:1-12.

from a testing laboratory for any cannabis item that the can-

nabis business cultivated, manufactured, wholesaled, or sold

to a consumer.

(d) A cannabis business shall maintain the following ad-

ministrative records, as applicable:

1. An organizational chart;

2. A general description of any facilities to be used as

the cannabis business premises or administrative offices

and a floor plan identifying the square footage available

and descriptions of the functional areas of the cannabis

business; and

3. The standards and procedures by which the cannabis

business determines the price it charges for usable cannabis

or cannabis products and a record of the prices charged.

(e) A cannabis business shall maintain business records,

including manual or digital records of assets and liabilities;

monetary transactions; and journals, ledgers, and supporting

documents, including agreements, checks, invoices, and

vouchers, that the cannabis business keeps as its books of

accounts.

(f) The Commission may request an audit of the financial

records of a cannabis business by an independent certified

public accountant approved by the Commission.

1. The cannabis business or testing laboratory shall

bear all costs related to such audit;

2. Such audit shall be concluded within a reasonable

period, as determined by the Commission; and

3. Results of a required audit shall be forwarded to the

Commission.

(g) A cannabis business shall maintain documentation of

any occurrence that is reported pursuant to N.J.A.C. 17:30-

9.11 in an auditable form for at least two years after the re-

porting of such occurrence.

(h) If cannabis is disposed of or destroyed, a cannabis

business shall maintain, for at least two years after the dis-

posal, a written record of the date, the quantity disposed of,

the manner of disposal, and the persons present during the

disposal, with their signatures.

(i) A cannabis business shall maintain a personnel record

for each owner, principal, management services contractor,

employee, and volunteer of the license holder that includes, at

a minimum, copies of the following, as applicable:

1. An application for employment or to volunteer;

2. A current Cannabis Business Identification Card;

3. Driver’s license or other State-issued or Federally is-

sued photo identification;

4. Certification confirming the person’s or entity’s

submission to the jurisdiction of the courts of the State and

agreeing to comply with the laws and rules of the State per-

taining to personal use cannabis;

5. Documentation of verification of references;

6. Documentation of submission of fingerprint impres-

sions for compliance with a criminal history record back-

ground check;

7. Job or role description or contract that includes the

duties, authority, responsibilities, qualifications, and super-

vision of the job or role;

8. Documentation of all required training and the

signed statement of the person indicating the date, time,

and place that the individual person received such training

and the topics discussed, including the name and title of

presenters;

9. Documentation of periodic performance evaluations;

and

10. Documentation of any disciplinary action taken.

(j) The license holder shall maintain personnel records,

including, but not limited to, those listed at (i) above:

1. For the purposes of this subsection, for at least 12

months after termination of the person’s affiliation with the

cannabis business; and

17:30-9.7 TREASURY—GENERAL

Supp. 3-6-23 30-50

2. For all other business purposes, in accordance with

their business practice.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-9.7

17:30-9.8 Cannabis business training

(a) In addition to any workplace trainings required by law,

each owner and principal of a license holder that handles can-

nabis and each employee and volunteer and any management

services contractor staff of a license holder shall complete at

least eight hours of ongoing training each calendar year.

(b) The training pursuant to (a) above shall be tailored to

the roles and responsibilities of the person’s job or role func-

tion and shall include:

1. State and Federal laws regarding cannabis;

2. State and Federal laws regarding privacy and confi-

dentiality;

3. Informational developments in the field of cannabis;

4. The proper use of security measures and controls

that have been adopted; and

5. Specific procedural instructions for responding to an

emergency, including a robbery or workplace violence.

a cannabis business shall either:

1. Develop, implement, and maintain on the premises,

or at the administrative office, a training curriculum; or

2. Enter into contractual relationships with outside re-

sources capable of meeting personnel training needs.

(d) A person shall not begin working at the cannabis busi-

ness or handling cannabis items at a testing laboratory before

completing initial trainings in accordance with N.J.A.C.

17:30-8.1(b), unless otherwise approved by the Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c)1, inserted “, or at the administrative office,”.

17:30-9.9 Cannabis business workplace alcohol and drug

policy and smoke-free workplace policies; em-

ployee assistance program

(a) A cannabis business may establish, implement, and ad-

here to any of the following policies governing conduct of

personnel while performing work for the cannabis business:

1. A written smoke-free workplace policy;

2. A written policy prohibiting cannabis business per-

sonnel from possessing, consuming, or being under the in-

fluence of an illicit controlled dangerous substance or alco-

hol; or

3. A written policy prohibiting cannabis business per-

sonnel from consuming or being under the influence of

cannabis at the workplace, provided that no cannabis busi-

ness shall infringe upon the rights of qualifying patients

pursuant to P.L. 2019, c. 153 (N.J.S.A. 24:6I-5.1 et seq.).

(b) The license holder shall ensure that policies pursuant to

(a) above are available to the Commission, upon request.

approved New Jersey employee assistance program.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)3, substituted “pursuant to” for “under”; and in (b), inserted a

comma following “Commission”.

17:30-9.10 Security

(a) Each cannabis business shall provide effective controls

and procedures to guard against unauthorized access to the

cannabis business premises or the cannabis business’s elec-

tronic systems, theft, and diversion of cannabis. Such controls

may include, but are not limited to, systems to protect against

electronic records tampering.

(b) At a minimum, each cannabis business shall:

1. Install, maintain in good working order, and operate

a safety and security alarm system at its cannabis business

premises that will provide suitable protection against theft

and diversion and that provides, at a minimum:

i. Immediate automatic or electronic notification to

alert cannabis business personnel and State or local po-

lice agencies to an unauthorized breach of security or an

alarm or system failure at the cannabis business; and

ii. A backup system that activates immediately and

automatically upon a loss of electrical support and that

immediately issues either automatic or electronic notifi-

cation to State or local police agencies of the loss of

electrical support;

2. Implement appropriate security and safety measures

to deter and prevent the unauthorized entrance into areas

containing cannabis and the theft of cannabis;

3. Implement security measures that protect the canna-

bis business premises, consumers, and cannabis business

personnel;

4. Establish a protocol for the testing and maintenance

of the security alarm system;

5. Conduct maintenance inspections and tests of the se-

curity alarm system at the cannabis business premises at in-

tervals not to exceed 30 days from the previous inspection

and test and promptly implement all necessary repairs to

ensure the proper operation of the alarm system;

PERSONAL USE CANNABIS RULES 17:30-9.12

30-51 Supp. 3-6-23

6. In the event of a failure of the security alarm system

due to a loss of electrical support or mechanical malfunc-

tion that is expected to last longer than eight hours:

i. Notify the Commission pursuant to N.J.A.C.

17:30-9.11; and

ii. Provide alternative security measures approved

by the Commission or close the authorized cannabis

business premises impacted by the failure or malfunction

until the security alarm system is restored to full opera-

tion;

7. Keep access from outside the cannabis business

premises to a minimum and ensure that access is well con-

trolled;

8. Limit entry into areas where cannabis is held to au-

thorized personnel; and

9. Equip interior and exterior premises with electronic

monitoring, video cameras, and panic buttons.

i. A video surveillance system shall be installed

and operated at the cannabis business premises to clearly

monitor all critical control activities of the cannabis

business and shall be in working order and operating at

all times. The cannabis business shall provide access for

remote viewing by the Commission. This system shall

be approved by the Commission prior to license issu-

ance.

ii. The original tapes or digital pictures produced by

this system shall be stored in a safe place with a 30-day

archive;

10. Keep the outside areas of the cannabis business

premises and its perimeter well-lighted.

i. Exterior lighting must be sufficient to deter nui-

sance and criminal activity and facilitate surveillance

and must make reasonable efforts to not disturb sur-

rounding businesses or neighbors; and

ii. The video surveillance system shall be supported

by adequate security lighting, which shall illuminate all

entrances and exits, and which may be modified, as nec-

essary, to include motion control sensors to protect cul-

tivation light-dark cycles, as applicable; and

11. Provide law enforcement and neighbors within 100

feet of the cannabis business premises with the name and

phone number of a staff member to notify during and after

operating hours to whom they can report problems with the

establishment.

tem pursuant to (b) above shall be continuously monitored, 24

hours a day, seven days a week.

1. Monitoring of the security alarm system and video

surveillance system may be conducted off-site.

(d) Subsections (b) and (c) above do not apply to the ad-

ministrative office of a cannabis distributor or delivery ser-

vice where cannabis items are not possessed or stored.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), (b)1, (b)3, (b)7, and (b)10, inserted “cannabis business”; in (a),

inserted “cannabis” preceding “business’s”; in (b)4, inserted the first

occurrence of “the”; in (b)5, substituted “business premises” for “busi-

ness’s authorized location”; in (b)6ii, substituted “cannabis business

premises” for “physical addresses”; in (b)9i, inserted “at the cannabis

business premises”; in (b)11, inserted “premises”; and added (d).

17:30-9.11 Reportable events involving risk of inventory

loss

(a) A cannabis business, upon becoming aware of a report-

able loss, discrepancies identified during inventory, diversion,

or theft, whether or not the cannabis, funds, or other lost or

stolen property is subsequently recovered and/or the respon-

sible parties are identified, and action taken against them,

shall:

1. Immediately notify appropriate law enforcement au-

thorities by telephone; and

2. Notify the Commission no later than three hours af-

ter discovery of the event.

(b) The cannabis business shall notify the Commission

within 24 hours by telephone, followed by email notification

within five business days of any of the following:

1. An alarm activation or other event that requires a re-

sponse by public safety personnel;

2. A breach of security;

3. The failure of the security alarm system due to a loss

of electrical support or mechanical malfunction that is ex-

pected to last longer than eight hours; and

4. Corrective measures taken, if any.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)1, inserted “a”.

17:30-9.12 Accessibility of cannabis item storage areas

(a) A cannabis business shall limit access to cannabis item

storage areas to the minimum number of authorized personnel

necessary to maintain safe and orderly operations.

1. When it is necessary for visitors to be present in or

pass through cannabis item storage areas, the cannabis

business shall provide for adequate observation of the area

by cannabis business personnel whom the license holder

specifically authorized by policy or job description to su-

pervise the activity.

2. The cannabis business shall, in its standard operating

procedures, identify the personnel with authorization to ac-

cess the storage area.

17:30-9.12 TREASURY—GENERAL

Supp. 3-6-23 30-52

(b) Each cannabis business shall securely store finished

usable cannabis and cannabis products that are ready for sale

in a locked area, which may include a locked room, cage, or

safe, with adequate security and limited access.

1. For purposes of this subsection, “adequate security,”

at a minimum, shall be assessed, established, and main-

tained based on:

i. The quantity of cannabis items kept on-hand;

ii. The cannabis business’s inventory system for

tracking and distributing cannabis items;

iii. The number of owners, principals, employees,

volunteers, management services contractor staff, or

vendor-contractors who have or could have access to the

cannabis items;

iv. The geographic location of the cannabis business

and its associated environmental characteristics, such as

the remoteness of the premises from local populations

and the relative level of crime associated with the area;

v. The scope and sustainability of the security alarm

system; and

vi. The findings of root cause analyses of any

breaches of security and/or inventory discrepancies for

cannabis items at that location.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, substituted “pass through” for “passthrough”.

17:30-9.12

17:30-9.13 Inventory

(a) Each cannabis business, at a minimum, shall:

1. Utilize the inventory tracking system designated by

the Commission pursuant to N.J.A.C. 17:30-3.12.

i. Cannabis businesses shall utilize any plant tags,

product identification tags, or stamps designated by the

Commission pursuant to N.J.A.C. 17:30-3.6 and 13.4.

ii. Cannabis business shall be responsible for any

fees associated with plant tags, product identification

tags, or stamps designated by the Commission;

2. Conduct an initial comprehensive inventory of all

cannabis in the possession of the cannabis business, includ-

ing cannabis available for cultivation or manufacturing,

finished usable cannabis available for sale, immature and

mature cannabis plants, unusable cannabis, and each type

of cannabis product at the authorized cannabis business

premises on the date the cannabis business first engages in

the cultivation, manufacturing, wholesaling, or sale of can-

nabis.

i. An inventory shall include damaged, defective,

expired, or adulterated cannabis awaiting disposal, in-

cluding the name, the quantity, and the reasons for

which the cannabis business is maintaining the cannabis.

ii. The initial comprehensive inventory shall be re-

ported to the Commission utilizing the inventory track-

ing system;

3. Establish inventory controls and procedures for the

conduct of inventory reviews and comprehensive invento-

ries of cultivating cannabis, and stored usable and unusable

cannabis;

4. Update product inventories on at least a daily basis;

5. Conduct a monthly inventory audit of cultivating

cannabis, and stored usable and unusable cannabis;

6. Conduct a comprehensive annual inventory audit at

least once every year from the date of the previous com-

prehensive inventory; and

7. Promptly transcribe inventories.

(b) The record of an inventory conducted pursuant to this

section shall include, at a minimum, the date of the inventory,

a summary of the inventory findings, and the name, signature,

and title of the persons who conducted the inventory.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (a).

17:30-9.14 Destruction or disposal of cannabis waste

and hazardous waste; expiration of license

procedures

(a) A license holder shall manage non-hazardous unusable

cannabis, cannabis waste, or cannabis items, including re-

turned, recalled, or usable cannabis or cannabis products that

have expired, by either: destroying the material through in-

cineration; or rendering the material unrecoverable, unrecog-

nizable, and useless for diversion, and then disposing of the

material by either transporting it off-site as compost or solid

waste or composting it on-site.

1. If a license holder chooses to destroy the material by

incineration, it shall ensure the material is transported in

accordance with (a)3 below, to a New Jersey Department

of Environmental Protection-authorized incinerator and is

actually incinerated.

2. If a license holder chooses to dispose of the material

as solid waste or compost, the license holder:

i. In a secured, locked area on the cannabis busi-

ness premises that is visible to a security camera, shall

render the material irrecoverable, unrecognizable, and

useless for diversion, by:

(1) Finely shredding or grinding the cannabis or

cannabis waste; and

(2) Mixing the shredded or ground cannabis

waste with safe, non-toxic, biodegradable material,

such as soil, cat litter, or compostable material, so the

resulting mixture is at least 50 percent non-cannabis

waste by volume;

PERSONAL USE CANNABIS RULES 17:30-9.15

30-53 Supp. 3-6-23

ii. Shall store the mixed cannabis waste in a secure,

locked container or space until it can be disposed; such

container may be outside the facility, provided it is with-

in view of a security camera; and

iii. Shall dispose of such mixed cannabis waste by:

(1) Ensuring the material is transported in accord-

ance with (a)3 below, to a solid waste disposal facility

holding the applicable solid waste permit from the

New Jersey Department of Environmental Protection

and is disposed of; or

(2) Composting it on-site, in a secure, locked con-

tainer or space, as approved by the Commission, or at

a facility owned by the cannabis business and operat-

ed in compliance with all applicable New Jersey De-

partment of Environmental Protection statutes and

rules, provided all materials in the mixture are com-

postable materials, or by transporting the compost to a

facility authorized by the Department of Environmen-

tal Protection to compost off site.

3. For the transportation of non-hazardous solid waste

that is unusable cannabis, cannabis waste, or cannabis

items to a facility for destruction or disposal, a license

holder shall either register as a Self Generator Solid Waste

Transporter to transport the waste itself, in accordance with

N.J.A.C. 7:26-3.2(a) and 16.3, or use standard solid waste

collection and contract with a vendor-contractor that is a li-

censed and registered Commercial (A901) Solid Waste

Transporter, in accordance with N.J.S.A. 13:1E-126 et seq.,

to transport the mixed cannabis waste on its behalf.

4. The license holder and any person transporting, de-

stroying, or disposing of the mixed cannabis waste shall

comply with N.J.A.C. 7:26-2, 2B, and 3 and the county or

district Solid Waste Management Plan for the county or

district in which the premises are located, in accordance

with N.J.A.C. 7:26-6.

5. An electronic smoking device shall not be incinerat-

ed or rendered unrecoverable, unrecognizable, and useless

for diversion. All vaporized formulation shall be removed

from the device. The electronic smoking device:

i. If it is an “all-in-one” e-cigarette that includes a

battery that is not removable, shall be treated as hazard-

ous waste (code D003) in accordance with (b) below and

40 CFR 262 et seq.; or

ii. If it is a multi-part device and can be split into a

removable rechargeable battery and another cartridge

piece not containing a battery, the battery may be dis-

posed of as universal waste and sent for recycling, in ac-

cordance with 40 CFR 273 et seq., and the remaining

cartridge may be disposed of as solid waste in accord-

ance with N.J.A.C. 7:26.

(b) A license holder shall dispose of any waste that is con-

sidered hazardous pursuant to N.J.A.C. 7:26G-6.1, in accord-

ance with all applicable New Jersey Department of Environ-

mental Protection statutes and rules.

1. A license holder shall make an accurate determina-

tion as to whether the discarded cannabis or cannabis waste

is a hazardous waste, in accordance with 40 CFR 262.11(a)

through (d).

record of the destruction or disposal of the cannabis by the

cannabis business and weigh the cannabis and update it in the

inventory prior to destruction or disposal, including any in-

formation required at N.J.A.C. 17:30-9.7.

(d) A license holder may, in accordance with this chapter,

sell its inventory to another licensed cannabis business before

its license expires. If a license expires without being renewed

or is revoked, the license holder shall:

1. Immediately discontinue any production or sale of

cannabis items;

2. Weigh any cannabis in its inventory and update it in

the inventory prior to disposal or destruction;

3. Destroy or dispose of all unused cannabis or surplus

inventory still in its possession within 72 hours of the li-

cense expiring and provide proof to the Commission of

such destruction or disposal; and

4. Create and maintain a written record of the disposal

of the cannabis.

(e) Within 10 business days after destroying or disposing

of the cannabis, the license holder or former license holder

shall notify the Commission, in writing, of the amount of

cannabis destroyed or disposed of, including the form,

weight, quantity, and any other information requested by the

Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Section was “Destruction of cannabis”. Rewrote the section.

17:30-9.15 Secure transport

(a) A cannabis business may securely transport cannabis

items to another cannabis business premises, or it may use a

licensed cannabis distributor for such transport.

(b) A cannabis business may transport between multiple

cannabis business premises anywhere in the State using a

delivery vehicle pursuant to this section.

is equipped with:

1. A secure lockbox or secure cargo area, which shall

be used for the sanitary and secure transport of cannabis.

i. In transit, cannabis items shall be locked and

stored in the secure lockbox or secure cargo area until

17:30-9.15 TREASURY—GENERAL

Supp. 3-6-23 30-54

the cannabis business staff member arrives at the receiv-

ing cannabis business;

2. A Global Positioning System (GPS) device for iden-

tifying the geographic location of the delivery vehicle, ei-

ther permanently or temporarily affixed to the delivery ve-

hicle while the delivery vehicle is in operation.

i. The device shall remain active and in the posses-

sion of the cannabis business staff member at all times

during transport.

ii. At all times, the originating cannabis business or

the cannabis distributor shall be able to identify the geo-

graphic location of all delivery vehicles that are trans-

porting cannabis items and shall provide that infor-

mation to the Commission, upon request; and

3. Functioning heating and air conditioning systems

appropriate for maintain correct temperatures for storage of

cannabis and cannabis products.

(d) A cannabis business shall maintain current hired and

non-owned automobile liability insurance sufficient to insure

all delivery vehicles in the amount of at least $1,000,000 per

occurrence or accident.

(e) A cannabis business shall ensure that a delivery vehicle

bears no markings that would either identify or indicate that

the vehicle is used to transport cannabis.

(f) A cannabis business shall provide the Commission with

information regarding any delivery vehicles, including the

vehicle’s make, model, color, vehicle identification number,

license plate number, and vehicle registration.

(g) A cannabis business shall staff each delivery vehicle

with at least one cannabis business staff member.

1. The cannabis business staff member shall not leave

cannabis items in an unattended delivery vehicle unless the

vehicle is locked and equipped with an active vehicle alarm

system. In no case shall cannabis items be left in a delivery

vehicle overnight or outside the operating hours of the can-

nabis business conducting the transport.

2. The cannabis business staff member shall have ac-

cess to a secure form of communication with the cannabis

business, such as a cellular telephone, at all times that the

delivery vehicle contains cannabis items.

3. The cannabis business staff member shall possess

their Cannabis Business Identification Card and their valid

non-probationary driver’s license appropriate to the type of

delivery vehicle driven at all times during transport and

shall present them to Commission staff or law enforcement

officials, upon demand.

4. Before transport, the cannabis business staff member

shall create a physical or electronic copy of the transport

request. During transport, the cannabis business staff

member shall maintain a copy of the transport request and

shall make it available, upon request, to State and local law

enforcement, and State and local regulatory authorities and

agencies.

5. Only Cannabis Business Identification Card holders

shall be allowed in a delivery vehicle.

6. During transport, the cannabis business staff mem-

ber driving the delivery vehicle shall comply with this sec-

tion and all New Jersey laws, rules, and regulations for the

operation of vehicles on public roadways.

(h) All transport of cannabis items shall be conducted by a

person. A transport of cannabis items shall not be made

through the use of an unmanned vehicle, which shall include

a drone.

(i) A cannabis business shall ensure that transports are

completed in a timely and efficient manner.

1. The cannabis business staff member shall only travel

between originating cannabis business premises and receiv-

ing cannabis business premises and shall not deviate from

the delivery path described in this subsection, except in the

event of emergency, or as necessary, for rest, fuel, or vehi-

cle repair stops, or because road conditions make continued

use of the route or operation of the vehicle unsafe, impos-

sible, or impracticable.

2. The process of transport begins when the cannabis

business staff member leaves the originating cannabis

business premises with the purchase order of cannabis

items and ends when the cannabis business staff member

furnishes the cannabis items to the receiving cannabis

business premises.

(j) Each cannabis business shall maintain a written or

electronic record of each transport of cannabis; for each

transport, such record shall include:

1. The date and time that the transport began and end-

ed;

2. The name, Cannabis Business Identification Card

number, and signature of the cannabis business staff mem-

ber performing the transport;

3. The weight of the cannabis or cannabis items trans-

ported;

4. The batch number of the usable cannabis or the lot

number of the cannabis product, the name of the

strain/cultivar, and the form of the cannabis product; and

5. The signature of the cannabis business staff member

of the receiving cannabis business attesting to receipt of the

goods.

(k) A cannabis business shall report any vehicle accidents,

diversions, losses, or other reportable events that occur during

transport to the Commission in accordance with N.J.A.C.

17:30-9.11.

PERSONAL USE CANNABIS RULES 17:30-9.16

30-55 Supp. 3-6-23

(l) A municipality may not restrict the transportation of

cannabis items through, or within, that municipality by adop-

tion of a municipal ordinance or any other measure, and any

restriction to the contrary shall be deemed void and unen-

forceable.

(m) Where a transport is attempted and not completed and

the cannabis item remains in the possession of the cannabis

business personnel conducting the transport, the personnel

shall return the cannabis item to the originating cannabis

business. The cannabis business may restock the product,

logging the product’s amended status in the business’s inter-

nal inventory. Such items must be in new, unopened condi-

tion prior to restocking.

(n) While engaging in the secure transport of cannabis

items, cannabis paraphernalia, and related supplies, a canna-

bis distributor or other cannabis business may also transport

other unrelated non-Federally regulated goods or shipments

in the delivery vehicle where all cannabis items, cannabis

paraphernalia, and related supplies are segregated from the

non-Federally regulated goods or shipments, in their own

separate secure lockbox or secure cargo area.

(o) A cannabis business, including a cannabis distributor,

shall provide the Commission with a list of all cannabis busi-

ness staff members that will be driving delivery vehicles for

secure transport, documentation that they have received train-

ing for the position, and verification that they have valid non-

probationary driver’s licenses appropriate to the type of de-

livery vehicle driven.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-9.16 Cannabis business complaint process

(a) A cannabis business shall establish standard operating

procedures for receiving and recording complaints associated

with usable cannabis or cannabis products that it has cultivat-

ed, manufactured, sold, or distributed that shall include:

1. A process for submission of a complaint to the can-

nabis business;

2. A procedure for notifying all cannabis businesses

that participated in the supply chain of the product identi-

fied in the complaint;

3. A procedure for reviewing the complaint;

4. A procedure for investigating the complaint;

5. A procedure for the review and approval of the find-

ings by cannabis business personnel that are responsible for

quality control; and

6. A procedure for follow-up action of any investiga-

tion performed and a response to the complainant.

(b) Based on the procedures established at (a) above, a

cannabis business shall make a determination as to whether

the complaint may be evidence of an adverse event.

complaints involving adverse events, which shall include:

1. Collecting data necessary to investigate the adverse

event, including, but not limited to:

i. Noting the identifiable consumer who is reported

to have experienced the adverse event;

ii. Noting the initial reporter of the adverse event or

identifying that the initial reporter requests to remain

anonymous;

iii. Noting the identity of the specific usable canna-

bis or cannabis product used, if known, including batch

or lot number, and the name of the cannabis business

that sold the product to the identifiable consumer; and

iv. A description of the adverse event based on in-

formation received from the identifiable consumer at

2. Reporting the adverse event to the Commission

within 48 hours of becoming aware of the adverse event,

including all information and data collected pursuant to this

subchapter;

3. Reporting the adverse event to all cannabis business-

es who participated in the supply chain of the product in-

volved in the adverse event or the products batch or lot;

4. Investigating the adverse event to determine:

i. If there was a deviation from the standard operat-

ing procedure in the cultivation of the batch or the manu-

facturing of the lot, which shall be done by reviewing

cultivation or manufacturing logs; and

ii. If the batch or lot meets specifications, which

shall be done by submitting parts of the retention sam-

ples of the batch or lot to a testing laboratory for testing;

5. Determining if an adverse event requires a product

recall; and

6. A procedure for communicating the adverse event

standard operating procedure to:

i. Cannabis business staff members;

ii. Consumers of the cannabis business; and

iii. Other cannabis businesses that purchase cannabis

items from or provide cannabis items to the cannabis

business.

(d) Adverse events shall be reported to the Commission

within 48 hours.

(e) The review and investigation of a complaint or adverse

event, and the findings and follow-up action of any investiga-

17:30-9.16 TREASURY—GENERAL

Supp. 3-6-23 30-56

tion performed, must extend to all related batches or lots and

relevant records and to all cannabis businesses involved in the

supply chain of the product identified in the complaint.

1. Related batches or lots may include, but are not lim-

ited to, batches or lots of the same product, other batches or

lots processed on the same equipment or during the same

time period, or other batches or lots produced using the

same components or packaging components.

(f) The cannabis business must keep a written record of

the complaint or adverse event and its investigation, includ-

ing:

1. Identification and batch or lot number of the prod-

uct;

2. Date the complaint was received and the name, ad-

dress, or telephone number of the complainant, if available.

i. Anonymous complaints shall be logged even

when no name, address, or telephone number is provid-

ed;

3. Nature of the complaint including, if known, how

the product was used;

4. All notifications provided to the Commission, other

cannabis businesses, consumers, and to the public;

5. Names of all personnel involved in the complaint

process and their roles;

6. Findings of the investigation and follow-up action

taken when an investigation is performed; and

7. Response to the complainant, if applicable.

(g) Such records required at (f) above shall be kept and

maintained for four years, either on-premises or at an off-site

facility, in written or electronic form.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c)2, substituted “48 hours” for “seven days”; in (f), deleted “for

four years” following “record”; and added (g).

17:30-9.16

17:30-9.17 Cannabis business recall process

(a) A cannabis business shall develop and implement a re-

call plan addressing at a minimum:

1. Factors that necessitate a recall procedure, including

if testing laboratory testing analysis finds that the batch or

lot fails to meet specifications;

2. Personnel responsible for initiating and implement-

ing a recall;

3. Notification protocols, including as required at

N.J.A.C. 17:30-9.16; and

4. Receipt, handling, and disposition of returned usable

cannabis or cannabis products.

(b) A cannabis business shall establish a standard operat-

ing procedure for publicly communicating a recall of usable

cannabis or cannabis products manufactured from that usable

cannabis or other cannabis products that present a probability

that exposure to the product could cause serious adverse

health consequences or temporary or medically reversible

adverse health consequences; this standard operating proce-

dure shall include:

1. A mechanism to contact all consumers who have, or

could have, obtained the usable cannabis or cannabis prod-

ucts manufactured from that usable cannabis or other can-

nabis products from the cannabis business, which commu-

nication must include information on the procedure for re-

turn of the recalled product and an offer to pay reimburse-

ment for the recalled product;

2. A mechanism to contact all cannabis businesses that

receive cannabis items from or provide cannabis items to

the cannabis business;

3. Instructions for the return or destruction of any re-

called cannabis items by consumers or cannabis business-

es;

4. Procedures for the issuance of refunds in conjunction

with a recall; and

5. Communication and outreach through traditional and

social media, as necessary and appropriate.

bis items that are returned, have cannabis business personnel

that supervise quality control review it, track it in inventory

control, and segregate it in quarantine until the Commission

authorizes disposal, at which point the cannabis business shall

dispose of it in a manner that ensures that it is unusable.

(d) The cannabis business should periodically conduct a

mock recall to assess the effectiveness of the recall plan.

(e) The Commission may, at its discretion, order a canna-

bis business to undertake a recall.

(f) A cannabis business shall comply and cooperate with

any recalls ordered by the Commission.

17:30-9.17

——————

SUBCHAPTER 10. CANNABIS CULTIVATOR AU-

THORIZED CONDUCT

17:30-10.1 Cannabis cultivator premises

(a) In no case shall a cannabis cultivator operate or be lo-

cated on land that is valued, assessed, or taxed as an agricul-

tural or horticultural use pursuant to the Farmland Assess-

ment Act of 1964, P.L. 1964, c. 48 (N.J.S.A. 54:4-23.1 et

seq.).

PERSONAL USE CANNABIS RULES 17:30-10.3

30-57 Supp. 3-6-23

(b) A cannabis cultivator shall produce cannabis only at

the cannabis business premises authorized in the license, in-

cluding any indoor or outdoor areas.

1. All cannabis cultivation shall take place in an en-

closed, locked area or facility, which includes, where a

cannabis cultivator is engaging in outdoor cultivation, the

outdoor grow area structures authorized pursuant to

N.J.A.C. 17:30-10.3.

2. Access to such enclosed, locked area or facility shall

be limited to an owner, principal, employee, volunteer, of a

license holder or the staff members of a license holder’s

management services contractor that possesses a Cannabis

Business Identification Card and are authorized by the can-

nabis business to access the facility.

3A.8 and 3A.9.

(d) A cannabis cultivator microbusiness shall 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.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (d), substituted “mature cannabis plant grow canopy” for “cannabis

grow”.

17:30-10.2 Cannabis cultivator authorized conduct;

prohibitions

(a) A cannabis cultivator holding a Class 1 Cannabis Cul-

tivator license issued by the Commission shall be authorized

to:

1. Possess, propagate, germinate, plant, cultivate, grow,

harvest, dry, cure, process, package, dispose of, and de-

stroy cannabis; and

2. Transport, transfer, distribute, supply, and sell this

usable or unusable cannabis to other cannabis cultivators or

to cannabis manufacturers, or sell usable cannabis to can-

nabis wholesalers, or cannabis retailers.

(b) A cannabis cultivator holding a Class 1 Cannabis Cul-

tivator license issued by the Commission shall not be author-

ized to:

1. Manufacture or otherwise create cannabis products;

2. Transport, transfer, distribute, supply, or sell canna-

bis, usable cannabis, cannabis products, paraphernalia, or

related supplies to consumers.

other cannabis cultivators or to cannabis manufacturers for

the purposes of manufacturing, the cannabis cultivator shall

ensure such unusable cannabis does not have any mold, rot,

or disease, through a visual inspection, and that it meets spec-

ifications in quality control for unusable cannabis.

(d) A cannabis cultivator shall not be limited in the num-

ber of strains/cultivars of cannabis cultivated.

(e) A cannabis cultivator shall comply with applicable

laws and rules of the New Jersey Department of Agriculture

and attendant inspection and enforcement activities.

(f) A cannabis cultivator may label cannabis it cultivates

as “organic” if the cannabis cultivator meets the organic pro-

gram standards as defined at N.J.A.C. 2:78. Use of such label

shall not suggest or indicate that the cultivator, or its practic-

es, has been certified or verified by any local, State, or Feder-

al government agency.

(g) In accordance with N.J.S.A. 54:47F-1A, a cannabis

cultivator shall collect, from the purchasing or acquiring can-

nabis establishment, any Social Equity Excise Fee imposed

by the Commission on the sale or transfer of usable cannabis

by such cannabis cultivator to any other cannabis establish-

ment other than another cannabis cultivator and be personally

liable for such fee.

(h) A cannabis cultivator microbusiness shall possess no

more than 1,000 mature cannabis plants each month.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, substituted “package, dispose of, and destroy” for “and pack-

age”; rewrote (c); in (f), inserted the second sentence; and in (h), inserted

“mature”.

17:30-10.3 Additional outdoor cultivation requirements

(a) Outdoor cultivation may be permitted, where the li-

cense holder complies with the Act and this chapter, and

where approved by the municipality in which the cannabis

business is located.

1. Outdoor cultivation may occur in a full greenhouse

with rigid walls, a partial greenhouse, a hoop house, or

other non-rigid structure, or an expanse of open or cleared

ground fully enclosed by a physical barrier.

(b) The outdoor grow area shall be situated to maintain the

greatest achievable level of privacy and security.

the outdoor grow area itself shall each be securely surrounded

by fencing and locked gates on the entire perimeter, con-

structed in accordance with the Uniform Construction Code,

to prevent access to the grow area by unauthorized persons.

1. Fencing shall be constructed of metal chain links or

another similarly secure material and shall measure at least

eight feet from the ground to the top. All support posts

shall be securely anchored. Fencing shall meet the re-

quirements of the relevant municipal code provisions.

2. Locks on gates shall be commercial-grade, non-

residential door locks.

(d) The outdoor grow area shall be protected by a security

alarm system and 24-hour video surveillance system that is

17:30-10.3 TREASURY—GENERAL

Supp. 3-6-23 30-58

continuously monitored and capable of detecting power loss,

pursuant to N.J.A.C. 17:30-9.10, to ensure surveillance of the

entire perimeter of the grow area and overall portions of the

security fences and all gates.

17:30-10.3

17:30-10.4 Cannabis cultivator production management

tiers

(a) All cannabis cultivators shall be assigned a cultivation

production management tier at license issuance and reas-

signed at renewal, as necessary.

(b) The cannabis cultivator shall accurately calculate its

plant count and mature cannabis plant grow canopy area.

1. Square footage of a mature cannabis plant grow can-

opy area is measured horizontally starting from the outer-

most point of the furthest plant in a grow canopy area and

continuing around the outside of all plants located within

the mature cannabis plant grow canopy area.

2. If a vertically tiered or shelving system is included in

the cultivation area, the surface area of each tier or shelf

must be included in calculating the grow canopy area.

3. A mature cannabis plant grow canopy area is the to-

tal square feet in which a cannabis cultivator plants and

grows cannabis plants, and does not include areas exclu-

sively used for harvesting, drying, curing, packaging, label-

ing, or storing cannabis.

production management tiers:

1. Microbusiness Cultivator. A cannabis cultivator with

a microbusiness license:

i. May cultivate and possess no more than 1,000

mature cannabis plants each month; and

ii. May cultivate an unlimited number of immature

cannabis plants, germinated seeds, cuttings, or clones;

iii. In a physical plant occupying an area that does

not exceed 2,500 square feet; and

iv. In a total mature cannabis plant grow canopy ar-

ea that does not exceed 2,500 square feet, measured on a

horizontal plane, and 24 feet, measured vertically above

that plane.

2. Tier I Cultivator. A cannabis cultivator with a Tier I

Cultivator license may cultivate in a mature cannabis plant

grow canopy area that does not exceed 10,000 square feet.

3. Tier II Cultivator. A cannabis cultivator with a Tier

II Cultivator license may cultivate in a mature cannabis

plant grow canopy area that is greater than 10,000 square

feet, but does not exceed 25,000 square feet.

4. Tier III Cultivator. A cannabis cultivator with a Tier

III Cultivator license may cultivate in a mature cannabis

plant grow canopy area that is greater than 25,000 square

feet, but does not exceed 50,000 square feet.

5. Tier IV Cultivator. A cannabis cultivator with a Tier

IV Cultivator license may cultivate in a mature cannabis

plant grow canopy area that is greater than 50,000 square

feet, but does not exceed 75,000 square feet.

6. Tier V Cultivator. A cannabis cultivator with a Tier

V Cultivator license may cultivate in a mature cannabis

plant grow canopy area that is greater than 75,000 square

feet, but does not exceed 100,000 square feet.

7. Tier VI Cultivator. A cannabis cultivator with a Tier

VI Cultivator license may cultivate in a mature cannabis

plant grow canopy area that is greater than 100,000 square

feet, but does not exceed 150,000 square feet.

8. Expanded ATC Cultivator. An expanded ATC culti-

vator with a cannabis cultivator license may cultivate med-

ical cannabis and personal use cannabis in a combined ma-

ture cannabis plant grow canopy area that does not exceed

150,000 square feet.

(d) A cannabis cultivator applying for a conditional or an-

nual standard cannabis business license may choose its tier in

its application and shall include an explanation of the antici-

pated demand for its products that justify such tier choice.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)1, inserted a comma; in (c)1iii, substituted “physical plant” for

“facility”; and in (c)1iv, inserted “mature cannabis plant”.

17:30-10.5 Packaging, labeling, release for distribution

(a) A cannabis cultivator shall place a legible, permanently

affixed label containing the information specified at N.J.A.C.

17:30-16.3 on each package of finished usable cannabis that

is ready for sale.

(b) A cannabis cultivator shall only release for distribution

and transfer to another cannabis business cannabis that has

been properly processed, tested, packaged, sealed, and la-

beled in accordance with the provisions at N.J.A.C. 17:30-

16.2 and 16.3.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a) and (b), updated the N.J.A.C. references.

17:30-10.6 Cannabis cultivator recordkeeping

(a) A cannabis cultivator shall maintain records identifying

the source of each ingredient used in the cultivation of canna-

bis. Records identifying the source of each ingredient shall

include:

1. The date of receipt of the ingredient;

2. The vendor-contractor’s name and address;

3. The name of the ingredient and the vendor-

contractor’s control number or other identifying number or

PERSONAL USE CANNABIS RULES 17:30-11.1

30-59 Supp. 3-6-23

symbol, if any, used by the vendor-contractor to identify

the ingredient; and

4. The grade and quantity of said ingredient.

(b) A cannabis cultivator shall keep and maintain for four

years in an on-premises or off-site facility, in written or elec-

tronic form, a complete and accurate record of:

1. All sales of cannabis flowers, cannabis leaves, and

immature cannabis plants;

2. The number of ounces of cannabis flowers produced;

3. The number of ounces of cannabis leaves produced;

4. The number of immature cannabis plants produced;

and

5. The dates of all sales and production as enumerated

at (b)1 through 4 above, including the name of the purchas-

ing entity for each sale.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In the introductory paragraph of (b), substituted “on-premises or off-

site facility” for “on- or off premises or facility” and inserted “in written

or electronic form,”; and in (b)5, deleted “and” following “including”.

17:30-10.7 Cannabis cultivator storage of cannabis;

quarantine

(a) A cannabis cultivator shall establish and implement a

standard operating procedure for quarantine of any cannabis

seed, cutting, clone, immature cannabis plant, batch of canna-

bis, or cultivation material or component whose suitability for

use or distribution is in question, including the conditions

described at (b) below, to prevent its use and distribution

pending disposition by quality control personnel.

(b) A cannabis cultivator shall have at least the following

storage areas, which must be segregated from each other:

1. Storage for newly received cultivation materials or

components and newly received cannabis seeds, cuttings,

clones, immature cannabis plants, or usable cannabis;

2. Batches of usable cannabis awaiting release for dis-

tribution for personal use, pending written reports confirm-

ing they meet specifications;

3. Any usable cannabis suspected, but not yet con-

firmed to be contaminated, including usable cannabis re-

turned as part of a complaint or recall process;

4. Usable cannabis, components, or materials that have

been confirmed to be contaminated, including, but not lim-

ited to, usable cannabis that fails testing or is returned as

part of a recall, and shall be stored with cannabis waste in a

waste disposal room until destroyed and rendered unrecov-

erable and unrecognizable, in accordance with N.J.A.C.

17:30-9.14.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)2, inserted a comma; and in (b)4, substituted “unrecoverable and

unrecognizable” for “unusable”.

17:30-10.8 Cannabis cultivator inventory

(a) A cannabis cultivator shall be authorized to acquire a

reasonable initial and ongoing inventory of cannabis seeds,

cuttings, clones, and immature cannabis plants and parapher-

nalia.

(b) A cannabis cultivator shall limit its inventory of canna-

bis seeds, cuttings, clones, immature cannabis plants, and

usable cannabis to reflect the current market needs of con-

sumers.

17:30-10.9 Cannabis cultivator quality control; pesticide

use limited

A cannabis cultivator shall not apply any pesticide as de-

fined pursuant to the provisions at N.J.A.C. 7:30, in the culti-

vation of cannabis, except that a pesticide that has been

deemed to be minimum risk by the United States Environ-

mental Protection Agency in accordance with 40 CFR

152.25(f) and exempted from the Federal Insecticide, Fungi-

cide, and Rodenticide Act may be applied.

——————

SUBCHAPTER 11. CANNABIS MANUFACTURER AU-

THORIZED CONDUCT

17:30-11.1 Cannabis manufacturer premises

(a) All manufacturing of cannabis shall take place in an

enclosed indoor, locked area or facility.

(b) Access to the enclosed indoor, locked area or facility

shall be limited to Cannabis Business Identification Card-

holders when acting on behalf of the cannabis manufacturer

within the scope of their responsibilities as an owner, princi-

pal, employee, volunteer, management services contractor, or

staff member of the license holder.

designated for the safe and orderly manufacturing of cannabis

products.

(d) A cannabis manufacturer shall ensure that:

1. All manufacturing areas are well-lighted and venti-

lated and are maintained in a clean and sanitary condition;

2. Heating and air conditioning systems are controlled

to avoid decomposition of chemicals;

3. Sewage, trash, and other refuse in and from the can-

nabis manufacturer and immediate product manufacturing

area are maintained, and disposed of, in a timely, safe, and

sanitary manner; and

17:30-11.1 TREASURY—GENERAL

Supp. 3-6-23 30-60

4. The manufacturing area is easily accessible to hot

and cold running water, exclusive of the bathroom sink;

soap or detergent; and air dryers or single-source towels.

(e) A cannabis manufacturer operating as a microbusiness

shall have a physical plant that does not exceed 2,500 square

feet.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), substituted “locked area or facility” for “and locked facility”;

and rewrote (b).

17:30-11.1

17:30-11.2 Cannabis manufacturer authorized conduct;

prohibitions

(a) A cannabis manufacturer holding a Class 2 Cannabis

Manufacturer license issued by the Commission shall be au-

thorized to:

1. Purchase or otherwise obtain usable and unusable

cannabis from a cannabis cultivator or cannabis manufac-

turer or usable cannabis from a cannabis wholesaler;

2. Purchase or otherwise obtain cannabis products from

another cannabis manufacturer or a cannabis wholesaler;

3. Develop, produce, manufacture, prepare, or other-

wise create and package cannabis products;

4. Possess, transfer, transport, distribute, supply, or sell

usable and unusable cannabis and cannabis products to an-

other cannabis manufacturer, or usable cannabis and can-

nabis products to a cannabis wholesaler or a cannabis re-

tailer; and

5. Dispose of or destroy cannabis and cannabis prod-

ucts.

(b) A cannabis manufacturer holding a Class 2 Cannabis

Manufacturer license issued by the Commission shall not be

authorized to:

1. Cultivate cannabis; or

2. Transport, transfer, distribute, supply, or sell canna-

bis, cannabis products, paraphernalia, or related supplies to

consumers.

nabis products in forms approved by the Commission, pursu-

ant to N.J.A.C. 17:30-11.5.

(d) A microbusiness cannabis manufacturer shall acquire

no more than 1,000 pounds of usable cannabis each month.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (a).

17:30-11.3 Cannabis manufacturer equipment

(a) A cannabis manufacturer shall possess equipment of

appropriate design and capacity to the type of manufacturing

performed, which shall be suitably located to facilitate opera-

tions for the intended use, cleaning, and maintenance of the

equipment.

(b) Equipment surfaces that contact ingredients shall not

be reactive, additive, or adsorptive, such that those surfaces

could alter the safety, identity, strength, quality, and purity of

the cannabis product.

shall be thoroughly cleaned and sanitized after each use, and,

when necessary, prior to use, in order to prevent cross-

contamination of ingredients and preparations.

(d) Equipment used in manufacturing cannabis products

shall be stored in a manner to prevent cross-contamination of

ingredients and preparations.

(e) Automated, mechanical, or electronic equipment may

be used in manufacturing cannabis products. All equipment

utilized in manufacturing cannabis products shall be inspect-

ed, maintained, and validated at appropriate intervals, con-

sistent with manufacturer’s recommendations, to ensure the

accuracy and reliability of equipment performance.

17:30-11.4 Quality control

(a) A cannabis manufacturer shall establish cannabis prod-

uct specifications to ensure the identity, strength, quality, and

purity of the cannabis product, and to ensure that the cannabis

product has been manufactured, packaged, labeled, and stored

under conditions to prevent contamination by impurities or

foreign substances.

(b) A cannabis manufacturer shall establish procedures to

ensure quality control over its manufacturing process.

ing to ensure quality control over its manufacturing process,

pursuant to N.J.A.C. 17:30-19.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c), updated the N.J.A.C. reference.

17:30-11.5 Prohibited manufacturing; authorized forms;

authorized amounts

(a) A cannabis manufacturer shall not manufacture canna-

bis products that contain drug products that appear on the

Federal Food and Drug Administration’s List of Drug Prod-

ucts Withdrawn or Removed from the Market for Reasons of

Safety or Effectiveness, codified at 21 CFR 216.24.

(b) A cannabis manufacturer may manufacture oil for use

in an electronic smoking device as vaporized formulation, in

a pressurized metered dose inhaler, or in topical or oral for-

mulations.

the following forms:

PERSONAL USE CANNABIS RULES 17:30-11.6

30-61 Supp. 3-6-23

1. A cannabis concentrate, either in solid form, includ-

ing “wax” and “shatter,” or in liquid form as oil, either as

cannabis extract or as resin extracted using non-chemical

processes;

2. A cannabis-infused product, either in solid form or

liquid form, containing either usable cannabis or cannabis

concentrate along with an additional ingredient that in-

cludes, but is not limited to:

i. Vaporized formulation;

ii. Drops, tinctures, and other sublabial and sublin-

gual forms;

iii. Oral lozenges and other buccal forms;

iv. Ingestible forms, which shall only include syr-

ups, pills, tablets, capsules, oral suspensions, and chew-

able forms;

v. Topical formulations and transdermal forms; and

vi. Suppositories; and

3. Any other form authorized by the Commission, in-

cluding a form authorized in accordance with the Commis-

sion’s power to waive requirements pursuant to N.J.A.C.

17:30-3.7.

(d) A cannabis manufacturer shall manufacture cannabis

products such that:

1. Each package of finished cannabis product shall, for

inhalable products, contain no more than ¼ ounce or 7.09

grams of usable cannabis or equivalent weight dependent

on form;

2. Each package of finished cannabis product shall, for

ingestible products, contain no more than 100 mg of active

THC;

3. Each single serving of a cannabis product shall con-

tain no more than 10 mg of active THC, or the equivalent

weight as best determined based on THC potency, depend-

ent on form.

i. Each single serving of a cannabis product shall

have a cannabinoid concentration that is within 90 to

110 percent of the specified milligram serving size

claimed for that cannabis product.

ii. Each single serving shall be demarcated in ac-

cordance with N.J.S.A. 24:6I-35.a(8)(g);

4. No ingestible product shall be in the shape of, or a

shape bearing the likeness or containing characteristics of,

a realistic or fictional human, animal, or fruit, or part

thereof, including artistic, caricature, or cartoon renderings.

However, this provision does not prohibit cannabis prod-

ucts from including fruit or vegetable flavors, provided the

manufacturer is compliant with the regulations for active

and inactive ingredients pursuant to N.J.A.C. 17:30-

11.6(d);

5. A commercially manufactured or trademarked food

product shall not be used as an ingestible product, provided

that a commercially manufactured or trademarked food

product may be used as a component of an ingestible prod-

uct or part of a product’s recipe, so long as the commercial-

ly manufactured or trademarked food product is used in a

way that renders it unrecognizable in the final ingestible

product and the product is not advertised as containing the

commercially manufactured or trademarked food product;

and

6. Each ingestible product shall have a universal sym-

bol marked, stamped, or imprinted directly on it, in accord-

ance with N.J.S.A. 24:6I-35.a(8)(h).

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-11.6 Ingredients in cannabis products

(a) A cannabis manufacturer must ensure all ingredients

included in the products are compliant with the standards in

this section and used only within the ingredient manufactur-

er’s recommendations.

(b) All ingredients used to manufacture cannabis products

shall be United States Pharmacopeia–National Formulary

(USP–NF), analytical reagent (AR), certified American

Chemical Society (ACS), or Food Chemicals Codex (FCC)

grade substances. If a USP-NF, AR, ACS, or FCC grade sub-

stance ingredient is not available, the cannabis manufacturer

shall establish the purity and safety of the ingredient by rea-

sonable means, which may include lot analysis, manufacturer

reputation, or reliability of source study.

products, such as aliquots, triturates, stock solutions, buffer-

ing agents, or isotonic solutions may be prepared in advance

and stored as cannabis manufacturer stock. The preparation of

such products shall be documented in accordance with the

requirements outlined in this subchapter.

(d) Inactive and active ingredients for inhalable products

shall be as follows:

1. Inactive ingredients for vaporized formulations shall

be as follows:

i. Vaporized formulations may not include inactive

ingredients that are additives, cutting agents, and artifi-

cial flavorings known to be harmful including, but not

limited to:

(1) Polyethylene glycol (PEG);

(2) Propylene glycol (PG);

(3) Vegetable glycerin, glycerine, or glycerol

(VG);

(4) Vitamin E acetate or tocopherol acetate

(VEA);

17:30-11.6 TREASURY—GENERAL

Supp. 3-6-23 30-62

(5) Acetic acid; or

(6) Any other ingredient listed in the August 5,

2019, published Food and Drug Administration Estab-

lished List of Harmful and Potentially Harmful Con-

stituents in Tobacco Products and Tobacco Smoke, or

the Food and Drug Administration Notice of Proposed

Additions to the Established List of Harmful and Po-

tentially Harmful Constituents in Tobacco Products

and Tobacco Smoke, which is incorporated herein by

reference, as amended and supplemented; and

ii. Any inactive ingredient used in a vaporized for-

mulation must be listed as an allowable ingredient in

products using the Respiratory (Inhalation) Route of

Administration, as published by the Food and Drug Ad-

ministration Inactive Ingredients Database, through June

30, 2021, which is incorporated herein by reference, as

amended and supplemented; and must be used in an

amount less than or equal to the “Potency Amount” al-

lowed for the ingredient.

(1) Except that medium-chain triglyceride oil

(MCT) may be used in a vaporized formulation in less

than or equal to 13 percent of the vaporized formula-

tion;

2. Inactive ingredients for oil intended for inhalation

using a pressurized metered dose inhaler may include an

inactive ingredient, including a pressurized propellant, that

is listed as an allowable ingredient in products using the

Respiratory (Inhalation) Route of Administration and the

Aerosol, Metered Dosage Form in the Food and Drug Ad-

ministration Inactive Ingredients Database, and that is used

in an amount less than or equal to the “Potency Amount”

allowed for the ingredient; and

3. Permitted active ingredients for cannabis products

intended for inhalation and vaporized formulations shall be

as follows:

i. Cannabis products intended for inhalation and

vaporized formulations may include oil, cannabis-

derived ingredients including terpenes, and botanically-

derived terpenes.

(1) Except that the total amount of terpenes in a

cannabis product intended for inhalation or vaporized

formulation may not exceed 10 percent of the product.

(e) A cannabis manufacturer may seek a waiver to an inac-

tive ingredient requirement at (d)1 above by providing evi-

dence that demonstrates the safety of the ingredient in aerosol

form for the inhalation route of administration within the

maximum potency per unit dose, including, but not limited to:

1. Peer-reviewed studies, especially studies that

demonstrate the safety of the ingredient after heating and in

combination with cannabis concentrate; and

2. Approval for use as an allowable ingredient in prod-

ucts using the inhalation route of administration by an in-

ternational body or government agency in another country

equivalent to the Food and Drug Administration or another

U.S. state department of health.

(f) Any inactive ingredient used in an ingestible cannabis

product must be listed as an allowable ingredient in products

using the Oral, Buccal, or Sublingual Routes of Administra-

tion, as applicable, in the Food and Drug Administration In-

active Ingredients Database and must be used in an amount

less than or equal to the “Maximum Potency per unit dose”

allowed for the ingredient.

(g) Any inactive ingredient used in a dermal cannabis

product must be listed as an allowable ingredient in products

using the Topical and Transdermal Routes of Administration,

as applicable, in the Federal Food and Drug Administration

Inactive Ingredients Database and must be used in an amount

less than or equal to the “Potency Amount” allowed for the

ingredient.

(h) Food and Drug Administration documents, incorpo-

rated by reference in this section, may be accessed as follows:

1. The most recently published Food and Drug Admin-

istration Established List of Harmful and Potentially Harm-

ful Constituents in Tobacco Products and Tobacco Smoke

is available at https://www.fda.gov/tobacco-products/

rules-regulations-and-guidance/harmful-and-potentially-

harmful-constituents-tobacco-products-and-tobacco-smoke-

established-list;

2. The Food and Drug Administration Notice of

Proposed Additions to the Established List of Harmful and

Potentially Harmful Constituents in Tobacco Products and

Tobacco Smoke (August 5, 2019) is available at https://

www.federalregister.gov/documents/2019/08/05/2019-166

58/harmful-and-potentially-harmful-constituents-in-tobacco-

products-established-list-proposed-additions; and

3. The most recently published Food and Drug Admin-

istration Inactive Ingredients Database is available at

https://www.fda.gov/drugs/drug-approvals-and-databases/

inactive-ingredients-database-download.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-11.6

17:30-11.7 Cannabis electronic smoking devices

(a) A cannabis manufacturer that acquires an electronic

smoking device for the purpose of distributing it to a cannabis

retailer or cannabis wholesaler must ensure this device is

made with ingredients and manufacturing processes compli-

ant with the standards in this section and is reasonably safe

for its intended use.

1. The cannabis manufacturer shall establish the rea-

sonable safety of all electronic smoking devices through

reasonable means, which may include manufacturer reputa-

PERSONAL USE CANNABIS RULES 17:30-11.10

30-63 Supp. 3-6-23

tion, reliability of source study, and independent product

testing results.

(b) An electronic smoking device, excluding the battery,

shall not, in homogenous material, contain:

1. More than 100 parts per million (ppm) of cadmium;

and

2. More than 1,000 ppm of lead, mercury, hexavalent

chromium, polybrominated biphenyls, polybrominated di-

phenyl ether, bis(2-ethylhexyl) phthalate, butyl benzyl

phthalate, dibutyl phthalate, or diisobutyl phthalate.

more than 0.0005 percent of mercury and 0.002 percent of

cadmium by weight.

(d) The electronic smoking device shall be manufactured:

1. According to the current Good Manufacturing Prac-

tice (cGMP) requirements for medical devices, pursuant to

21 CFR Part 820;

2. In a manufacturing facility with ISO 13485 certifica-

tion; and

3. Using, for any component or mouthpiece that comes

in contact with the vaporized formulation, food contact ma-

terials listed as indirect food additives at 21 CFR 174-190.

(e) The electronic smoking device shall not exceed 500

degrees Fahrenheit and four volts during intended use and

shall be equipped to automatically shut off if those conditions

are exceeded.

(f) A cannabis manufacturer that acquires an electronic

smoking device for the purpose of distributing it to another

cannabis business shall maintain certificates of analysis, ma-

terial data safety sheets, or other records demonstrating the

full composition of each ingredient or component used in the

manufacture of the electronic smoking device.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)1, substituted “parts” for “part”.

17:30-11.8 Expiration dates

(a) The expiration date is the date after which usable can-

nabis or a cannabis product shall not be sold. The expiration

date shall be determined from the date the usable cannabis is

cultivated or cannabis product is manufactured.

(b) After stability testing has commenced pursuant to

N.J.A.C. 17:30-19.5, a cannabis cultivator or cannabis manu-

facturer shall determine the expiration date based on stability

testing information. The expiration date limits established in

this section may be exceeded only when there is supporting

valid scientific stability testing information that is directly

applicable to the specific cannabis product.

1. “Directly applicable to the specific cannabis prod-

uct” shall mean that the stability tested product and the

other product shall share characteristics, such as concentra-

tion range, pH, excipients, vehicle, or water content.

to N.J.A.C. 17:30-19.5 that is applicable to a specific usable

cannabis or cannabis product, the following are the maximum

expiration dates for cannabis products that are packaged in

airtight, light-resistant containers and stored at controlled

room temperature, unless otherwise indicated at (c)1 below:

1. For water-containing formulations (prepared from

ingredients in solid form), the expiration date shall not be

later than 14 days for liquid preparations when stored at

cold temperatures between two degrees and eight degrees

Celsius (36 degrees and 46 degrees Fahrenheit); and

2. For all other formulations and for usable cannabis,

the expiration date shall not be later than six months from

the manufacture or cultivation date.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-11.9 Packaging; labeling; release for distribution

(a) A cannabis manufacturer shall place a legible, perma-

nently affixed label containing the information specified at

N.J.A.C. 17:30-16.3 on each package of finished cannabis

product.

(b) A cannabis manufacturer shall only release for distribu-

tion and transfer cannabis products to another cannabis busi-

ness, cannabis products that have been properly processed,

tested, packaged, sealed, and labeled in accordance with the

provisions at N.J.A.C. 17:30-16.2 and 16.3.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a) and (b), updated the N.J.A.C. references.

17:30-11.10 Cannabis manufacturer storage of canna-

bis; cannabis products; quarantine

(a) A cannabis manufacturer shall have at least the follow-

ing storage areas, segregated from each other:

1. Storage for newly received manufacturing materials,

including newly received usable or unusable cannabis, in-

gredients to be used in manufacturing, and any cannabis-

infused products or cannabis concentrates received from

other cannabis manufacturers;

2. Lots of cannabis products awaiting release for distri-

bution for personal use pending written reports confirming

they meet specifications;

3. Any usable cannabis or cannabis products suspected,

but not yet confirmed to be contaminated, including canna-

bis products returned as part of a complaint or recall pro-

cess; and

17:30-11.10 TREASURY—GENERAL

Supp. 3-6-23 30-64

4. Cannabis products, components, or materials that

have been confirmed to be contaminated, such as usable

cannabis or cannabis products that fail testing or are re-

turned as part of a recall, shall be stored with cannabis

waste in a waste disposal room until destroyed or rendered

unrecoverable and unrecognizable, as applicable, pursuant

to N.J.A.C. 17:30-9.14.

(b) A cannabis manufacturer shall establish and implement

a standard operating procedure for quarantine of any batch of

usable cannabis, lot of cannabis concentrates or cannabis-

infused products, or component whose suitability for use or

distribution is in question, including the conditions described

at (a)3 and 4 above, to prevent its use and distribution, pend-

ing disposition by quality control personnel.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)4, substituted “unrecoverable and unrecognizable” for “unusa-

ble”; and in (b), inserted a comma following the second occurrence of

“distribution”.

17:30-11.10

17:30-11.11 Health and safety standards

(a) A cannabis manufacturer shall:

1. Enter into an on-site consultation agreement with the

New Jersey Department of Labor and Workforce Devel-

opment, Division of Public Safety and Occupational Safety

and Health, Occupational Safety and Health On-Site Con-

sultation Program (Consultation Program) established pur-

suant to 29 CFR Part 1908 and in accordance with the

Consultation Program’s procedures identified on its

website at http://lwd.dol.state.nj.us/labor/lsse/employer/

Occupational_Safety_and_Health_Onsite_Consultation_Pro

gram.html;

2. Cooperate fully with the Consultation Program in

the consultation process;

3. Permit the Consultation Program full access to eval-

uate the cannabis manufacturer premises and operations

and to interview cannabis manufacturer staff on an ongoing

basis;

4. Correct, to the satisfaction of the Consultation Pro-

gram, health and safety hazards that the Consultation Pro-

gram may find and identify in its written report; and

5. Maintain ongoing cooperation with the Consultation

Program and continue to correct, to the satisfaction of the

Consultation Program, health and safety hazards that the

Consultation Program may find and identify in subsequent

written reports.

(b) The Commission shall not authorize a cannabis manu-

facturer to commence operations, or recommence operations,

unless and until the cannabis manufacturer:

1. Corrects, to the satisfaction of the Consultation Pro-

gram, imminent dangers and serious hazards that the Con-

sultation Program identifies; and

2. Demonstrates ongoing progress and cooperation, to

the satisfaction of the Consultation Program, in the correc-

tion of other-than-serious hazards in accordance with a

schedule and action plan of correction accepted by the

Consultation Program.

tions pursuant to N.J.A.C. 17:30-20, which may include civil

monetary penalties or summary suspension.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c), updated the N.J.A.C. reference.

17:30-11.12 Manufacturing personnel: manufacturing

supervisor

(a) A cannabis manufacturer shall designate a manufactur-

ing supervisor who will be responsible for ensuring compli-

ance with this subchapter, including ensuring that:

1. Cannabis products have been properly prepared, la-

beled, controlled, stored, sold, and distributed in accord-

ance with the provisions of this standard;

2. All aspects of the manufacturing process are docu-

mented and that accurate manufacturing records for all

cannabis products prepared by the cannabis manufacturer

are maintained;

3. Manufacturing personnel are capable of, and quali-

fied to perform, their assigned duties;

4. Ingredients used in manufacturing have their ex-

pected identity, strength, quality, and purity consistent with

the requirements in this standard;

5. Cannabis products are manufactured with acceptable

strength, quality, and purity, are packaged with appropriate

packaging and labeling, and are prepared in accordance

with good manufacturing practices;

6. Critical processes are recorded and validated to en-

sure that procedures will consistently result in the expected

strength, quality, and purity in the finished cannabis prod-

ucts;

7. The manufacturing environment is suitable for its in-

tended purpose;

8. Appropriate stability testing pursuant to N.J.A.C.

17:30-19.5 is performed, or is determined from literature,

for establishing reliable expiration dating to ensure that the

finished cannabis products have their expected strength,

quality, and purity, at least until the labeled expiration date;

9. Manufacturing conditions and standard operating

procedures are in place to minimize the potential for errors;

and

10. Adequate procedures and records exist for investi-

gating and correcting failures or problems in manufactur-

ing, quality control, or in the cannabis product itself.

PERSONAL USE CANNABIS RULES 17:30-12.2

30-65 Supp. 3-6-23

(b) Personnel employed by the cannabis manufacturer

shall have appropriate education and/or experience to assume

responsibility for positions that would affect compliance with

this subchapter.

firmed failure of a cannabis product to meet the standard of

acceptable strength, quality, purity, packaging, and labeling

to the Commission within 24 hours of incident confirmation.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)8, updated the N.J.A.C. reference.

17:30-11.13 Cannabis manufacturer recordkeeping;

audit trail; manufacturing record

(a) A cannabis manufacturer shall maintain records identi-

fying the source of each ingredient used in the manufacturing

of cannabis. Records identifying the source of each ingredient

shall include:

1. The date of receipt of the ingredient;

2. The vendor-contractor’s name and address;

3. The name of the ingredient and the vendor-

contractor’s control number or other identifying number or

symbol, if any, used by the vendor-contractor to identify

the ingredient; and

4. The grade and quantity of said ingredient.

(b) A cannabis manufacturer shall maintain a manufactur-

ing record for each cannabis product; the record shall contain

the following information:

1. Selection of all ingredients and documentation of

source, lot/batch numbers, and expiration dates of all in-

gredients used;

2. Verification that the ingredients comply with the

master formulation record;

3. Verification that the cannabis product label complies

with the requirements set forth at N.J.A.C. 17:30-11.9;

4. Verification that the cannabis product is complete

and ready for sale;

5. Name and strength of the cannabis product;

6. Date of preparation;

7. Name of the person(s) who performed each step of

the manufacturing process and the manufacturing supervi-

sor who verified the preparation of the cannabis product;

8. Reference(s) for formulation, if available;

9. Total quantity of cannabis product, including num-

ber of servings, manufactured in each lot;

10. Detailed steps of the manufacturing process to en-

sure that the exact same cannabis product can be duplicated

at a future date;

11. Type of container used when the cannabis product

has specific storage requirements;

12. Expiration date of the cannabis products consistent

with the requirements set forth in this subchapter;

13. Results of quality control procedures; and

14. Instructions for use, storage, and handling of the

cannabis product.

ing requirements as set forth at N.J.A.C. 17:30-9.7.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)2, inserted the first occurrence of “the”; in (b)5, substituted

“Name and strength” for “Strength”; and recodified former (d) to (c).

——————

SUBCHAPTER 12. CANNABIS WHOLESALER AU-

THORIZED CONDUCT

17:30-12.1 Cannabis wholesaler premises

(a) The cannabis wholesaler shall warehouse and store fin-

ished usable cannabis and cannabis products only at the can-

nabis business premises authorized in the license in an en-

closed indoor, locked area or facility.

(b) Access to the enclosed indoor, locked area or facility

shall be limited to Cannabis Business Identification Card-

holders when acting on behalf of the cannabis wholesaler

within the scope of their responsibilities as owner, principal,

employee, volunteer, management services contractor, or

staff member of the license holder.

1. All cannabis item storage areas are well-lit and ven-

tilated and are maintained in clean and sanitary condition;

and

2. Heating and air conditioning systems are controlled

to ensure products are stored in the appropriate temperature

range for each type of product.

(d) A cannabis wholesaler operating as a microbusiness

shall have a physical plant that does not exceed 2,500 square

feet.

17:30-12.1

17:30-12.2 Cannabis wholesaler authorized conduct

(a) A cannabis wholesaler holding a Class 3 Cannabis

Wholesaler license issued by the Commission shall be author-

ized to:

1. Purchase, or otherwise obtain, cannabis items from

another cannabis wholesaler, a cannabis cultivator, or a

17:30-12.2 TREASURY—GENERAL

Supp. 3-6-23 30-66

cannabis manufacturer for the purpose of resale to another

cannabis wholesaler, a cannabis manufacturer, or a canna-

bis retailer;

2. Possess, store, warehouse, transport, and dispose of

or destroy cannabis items; or

3. Sell or otherwise transfer cannabis items to another

cannabis wholesaler, a cannabis manufacturer, or a canna-

bis retailer.

(b) A cannabis wholesaler holding a Class 3 Cannabis

Wholesaler license issued by the Commission shall not be

authorized to:

1. Cultivate or package cannabis;

2. Produce, manufacture or otherwise create, or pack-

age cannabis products; or

3. Transport, transfer, distribute, supply, or sell canna-

bis, cannabis items, paraphernalia, or related supplies to

consumers.

and cannabis products that are packaged and labeled in ac-

cordance with N.J.A.C. 17:30-16.2 and 16.3.

1. The cannabis wholesaler shall perform a visual ex-

amination of the packaged usable cannabis and cannabis

products to ensure the finished product has compliant

packaging and labeling and has not been adulterated or

contaminated.

(d) 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.

17:30-12.2

17:30-12.3 Cannabis wholesaler recordkeeping

(a) A cannabis wholesaler shall keep a complete and accu-

rate record of all cannabis item purchases and sales by the

wholesaler, including the date of sale or purchase and the

purchasing or selling entity.

1. Such records shall be kept and maintained for four

years, either on-premises or at an off-site facility, in written

or electronic form.

(b) A cannabis wholesaler license holder shall collect and

report to the Commission for each calendar year at least the

following statistical data:

1. The number of ounces of usable cannabis purchased

and sold;

2. The number of ounces of cannabis products pur-

chased and sold;

3. The total number of cannabis item sales transactions;

and

4. Such other information as the Commission may re-

quire in the administration and enforcement of this chapter.

——————

SUBCHAPTER 13. CANNABIS DISTRIBUTOR AU-

THORIZED CONDUCT

17:30-13.1 Cannabis distributor premises

(a) If a cannabis distributor stores unusable cannabis and

cannabis items, it shall store them only at the cannabis busi-

ness premises authorized in the license in an enclosed indoor,

locked area or facility.

(b) Access to the enclosed indoor, locked area or facility

shall be limited to Cannabis Business Identification Card-

holders when acting on behalf of the cannabis distributor

within the scope of their responsibilities as an owner, princi-

pal, employee, volunteer, management services contractor, or

staff member of the license holder.

cannabis items, a cannabis distributor shall ensure that:

1. All cannabis and cannabis item storage areas are

well-lit and ventilated and are maintained in clean and

sanitary condition; and

2. Heating and air conditioning systems are controlled

to ensure products are stored in the appropriate temperature

range for each type of product.

(d) If a cannabis distributor does not store unusable canna-

bis and cannabis items, it is required to maintain an adminis-

trative office at the location authorized in the license where it

conducts operations to transport cannabis and cannabis items

in bulk and is not required to maintain a cannabis business

premises.

1. When a cannabis distributor does not store unusable

cannabis and cannabis items, it shall possess unusable can-

nabis and cannabis items only at the originating and receiv-

ing cannabis businesses and in the delivery vehicle, and not

at the administrative office.

17:30-13.2 Cannabis distributor authorized conduct

(a) A cannabis distributor holding a Class 4 Cannabis Dis-

tributor license issued by the Commission shall be authorized

to:

1. Transport intrastate unusable cannabis between can-

nabis cultivators and cannabis manufacturers;

2. Transport intrastate cannabis items between cannabis

establishments;

3. Possess and engage in temporary storage of cannabis

or cannabis items, as necessary to carry out transportation

activities; and

PERSONAL USE CANNABIS RULES 17:30-14.2

30-67 Supp. 3-6-23

4. Dispose of or destroy cannabis items.

(b) A cannabis distributor holding a Class 4 Cannabis Dis-

tributor license issued by the Commission shall not be author-

ized to:

1. Cultivate or package cannabis;

2. Produce, manufacture or otherwise create, or pack-

age cannabis products;

3. Transport, transfer, distribute, supply, or sell canna-

bis, cannabis items, paraphernalia, or related supplies to

consumers;

4. Purchase or resell cannabis or cannabis items; or

5. Transport or possess cannabis or cannabis items out-

side the State of New Jersey.

nabis and cannabis products that are packaged and labeled in

accordance with N.J.A.C. 17:30-16.2 and 16.3.

(d) There shall be no limit on the amount of cannabis

plants or cannabis items that a microbusiness cannabis dis-

tributor may possess for the purposes of transportation each

month.

17:30-13.3 Cannabis distributor recordkeeping

(a) A cannabis distributor shall keep a complete and accu-

rate record of all cannabis and cannabis items secure transport

trips by the distributor, including the date of the secure

transport trip, the cannabis or cannabis items transported, the

sending and receiving cannabis businesses, and any infor-

mation required pursuant to N.J.A.C. 17:30-9.15(j).

1. Such records shall be kept and maintained for four

years, either at the cannabis business premises or adminis-

trative office or at an off-site facility, in written or electron-

ic form.

(b) A cannabis distributor license holder shall collect and

report to the Commission for each calendar year at least the

following statistical data:

1. The number of ounces of usable cannabis transport-

ed;

2. The number of ounces of cannabis products trans-

ported;

3. The total number of cannabis item transport trips;

and

4. Such other information as the Commission may re-

quire in the administration and enforcement of this chapter.

17:30-13.4 Cannabis distributor storage of cannabis

items

(a) If a cannabis distributor stores cannabis items, all can-

nabis items shall be stored in an enclosed indoor, locked area

pursuant to N.J.A.C. 17:30-9.12, where access to such area is

limited to an owner, principal, employee, or volunteer of a

license holder or staff members of a license holder’s man-

agement services contractor that possesses a Cannabis Busi-

ness Identification Card when acting in their official capacity.

(b) If a cannabis distributor does not store cannabis items,

all cannabis items shall be possessed by the cannabis distribu-

tor only at the sending and receiving cannabis businesses and

in the delivery vehicle, and not stored at the administrative

office.

17:30-13.5 Cannabis distributor inventory

The inventory of a cannabis distributor, during secure

transport and in storage, shall be dependent on the sending

and receiving cannabis businesses. A cannabis distributor

shall not acquire cannabis items outside of a secure transport

trip.

——————

SUBCHAPTER 14. CANNABIS RETAILER AUTHOR-

IZED CONDUCT

17:30-14.1 Cannabis retailer premises

(a) A cannabis retailer premises shall not be located in, or

upon, any premises in which operates:

1. A grocery store, delicatessen, indoor food market, or

other store engaging in retail sales of food; or

2. A store that engages in licensed retail sales of alco-

holic beverages, as defined at N.J.S.A. 33:1-1.b.

(b) A cannabis retailer shall sell cannabis only at the can-

nabis business premises authorized in the license, including

any indoor or outdoor areas, including as provided at

N.J.A.C. 17:30-14.4. A purchase made through the Internet

website of a cannabis retailer shall be considered to have been

conducted at the cannabis retailer’s premises.

have a physical plant that does not exceed 2,500 square feet.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b), deleted a comma following the second occurrence of “canna-

bis”, updated the N.J.A.C. reference, and substituted “website” for

“site”; and added (c).

17:30-14.1

17:30-14.2 Cannabis retailer authorized conduct; prohi-

bitions

(a) A cannabis retailer shall be authorized to:

1. Purchase or acquire usable cannabis from cannabis

cultivators, cannabis manufacturers, cannabis wholesalers,

or cannabis retailers;

17:30-14.2 TREASURY—GENERAL

Supp. 3-6-23 30-68

2. Purchase or otherwise obtain cannabis products and

related supplies from cannabis manufacturers, cannabis

wholesalers, or cannabis retailers;

3. Purchase or acquire paraphernalia and related sup-

plies;

4. Possess, display, transport, transfer, distribute, sup-

ply, sell, and furnish usable cannabis, cannabis products,

paraphernalia, and related supplies to a consumer, to other

cannabis retailers, or to delivery services, based on pur-

chase orders from consumers.

i. A cannabis retailer may furnish usable cannabis,

cannabis products, paraphernalia, and related supplies to

cannabis retailer delivery or cannabis delivery service

personnel for delivery to a consumer consistent with the

requirements at N.J.A.C. 17:30-14.8; and

5. Dispose of or destroy cannabis items.

(b) A cannabis retailer shall not be authorized to:

1. Cultivate cannabis; or

2. Produce, manufacture, or otherwise create cannabis

products.

nabis products to consumers in any authorized form, in ac-

cordance with N.J.A.C. 17:30-11.2(c).

1. A cannabis retailer shall only sell usable cannabis

and cannabis products that are packaged and labeled in ac-

cordance with N.J.A.C. 17:30-16.2 and 16.3.

(d) A cannabis retailer shall not allow persons under the

age of 21 to purchase cannabis items or to enter or remain on

the premises of a cannabis retailer unless accompanied by a

parent or legal guardian and shall ensure similar restrictions

are enacted on any Internet website operated by the cannabis

business.

(e) A cannabis retailer shall only sell cannabis items di-

rectly to a consumer.

(f) Each cannabis retailer shall maintain and make availa-

ble on its Internet website, if any, a standard price list that

shall apply to all usable cannabis, cannabis products, para-

phernalia, and related supplies sold by the cannabis retailer.

(g) Each cannabis retailer shall consider whether to make

interpreter services available to the population served, includ-

ing for individuals with a visual or hearing impairment.

1. The cannabis retailer shall assume the cost of

providing such interpreter services.

2. The Commission shall provide assistance to any

cannabis retailer that seeks to provide such services in lo-

cating appropriate interpreter resources.

(h) A microbusiness cannabis retailer shall acquire no

more than 1,000 pounds of usable cannabis, or the equivalent

amount, in any form of cannabis product, or any combination

thereof, for retail sale to consumers each month.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-14.2

17:30-14.3 Cannabis retailer sale to a consumer

(a) Before allowing entrance to a cannabis retailer, and ad-

ditionally prior to selling or serving cannabis items to a con-

sumer, for each transaction, cannabis retailer personnel shall

examine any one of the following pieces of photographic

identification and shall confirm the consumer is of legal age

to purchase cannabis:

1. The person’s United States passport; other country’s

passport; or proper government-issued documentation for

international travel, provided it is lawful to use as identifi-

cation in the United States;

2. The person’s motor vehicle driver’s license, whether

issued by New Jersey or by any other state, territory, or

possession of the United States, or the District of Colum-

bia, provided the license displays a picture of the person;

3. A New Jersey identification card issued by the New

Jersey Motor Vehicle Commission; or

4. Any other identification card issued by a state, terri-

tory, or possession of the United States, the District of Co-

lumbia, or the United States that bears a picture of the per-

son, the name of the person, the person’s date of birth, and

a physical description of the person.

(b) In order to ensure that individual privacy is protected:

1. A consumer is not required to provide a cannabis re-

tailer with personal information other than government-

issued identification as set forth at (a) above in order to de-

termine the consumer’s identity and age;

2. A cannabis retailer shall not collect and retain any

personal information about a consumer other than infor-

mation typically acquired in a financial transaction con-

ducted by the holder of a Class C retail license concerning

alcoholic beverages as set forth at N.J.S.A. 33:1-12; and

3. The cannabis retailer shall not keep a copy of the

consumer’s photographic identification.

tion of photographic identification and confirmation of legal

age pursuant to (a) above occurred in a record, and the canna-

bis retailer shall maintain such record and it shall be available

for inspection by the Commission.

(d) The cannabis retailer shall not sell to a consumer in a

single sales transaction:

1. More than 28.35 grams (one ounce) of usable canna-

bis;

PERSONAL USE CANNABIS RULES 17:30-14.5

30-69 Supp. 3-6-23

2. More than four grams of solid cannabis concentrate

or four mL of liquid cannabis concentrate (oil);

3. Vaporized formulation containing more than four

mL of liquid cannabis concentrate (oil);

4. Multiple ingestible cannabis-infused products con-

taining an aggregate total of more than 1,000 mg of THC;

5. More than 28.35 grams (one ounce), or the equiva-

lent, of some combination of usable cannabis and cannabis

products.

(e) The cannabis retailer shall make a good faith effort to

prevent a consumer from exceeding one ounce of usable can-

nabis or the equivalent weight in cannabis products, in multi-

ple sales transactions.

(f) The cannabis retailer shall only sell to consumers can-

nabis items that have been properly tested, packaged, sealed,

and labeled in accordance with the provisions at N.J.A.C.

17:30-16.2 and 16.3.

(g) A cannabis retailer shall provide the consumer with a

receipt that includes, at a minimum:

1. Its name, address, license number, and telephone

number;

2. The date of retail sale; and

3. The cannabis items purchased and their purchase

price.

(h) A cannabis retailer selling an electronic smoking de-

vice to the consumer shall provide a supplemental infor-

mation document that:

1. Lists all ingredients or materials used to manufacture

the electronic smoking device;

2. Provides instructions to consumers on how to use the

electronic smoking device safely as part of intended usage

based on manufacturer’s recommendations, which shall in-

clude, but not be limited to, a recommended number of

seconds per dose; and

3. States, “Electronic smoking devices and vaporized

formulations of cannabis are not approved by the Food and

Drug Administration and have not been proven to be safe

for use in humans. Consumers should consider alternative

methods for the administration of cannabis.”

(i) A cannabis retailer shall offer to provide clearly visible

information on the safe use of cannabis items to consumers at

the point of sale, such as a printed copy of the information on

Safe and Responsible Consumption provided on the Commis-

sion website, www.nj.gov/cannabis.

(j) A cannabis retailer shall offer to provide a copy of the

written report from the testing laboratory pursuant to N.J.A.C.

17:30-19.6 as a supplemental informational document to the

adult consumer.

(k) The cannabis retailer shall collect any tax from a con-

sumer required by the Act and this chapter.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (d) and (i); and in (f), updated the N.J.A.C. references.

17:30-14.4 Curbside retail sales

(a) A cannabis retailer may conduct curbside retail sales in

accordance with this section upon approval of the Commis-

sion.

(b) Prior to initiating curbside retail sales, the cannabis

business shall provide the Commission with, and shall seek

approval from the Commission on, standard operating proce-

dures regarding:

1. Taking cannabis item orders, verifying photographic

identification, and receiving payment;

2. Logging transactions in the Commission-designated

inventory management system, and, as applicable, the in-

ternal inventory management system; and

3. Security needed to accommodate curbside retail

sales.

1. A consumer shall place an order with the cannabis

retailer in advance;

2. Usable cannabis and cannabis products shall be la-

beled in the cannabis retailer’s premises prior to retail sale

on the exterior of the facility;

3. The cannabis retailer shall provide a consumer with

an approximate pick-up time to reduce traffic around the

premises;

4. Prior to making a retail sale, cannabis retailer per-

sonnel shall conduct an in-person visual verification of the

consumer’s photographic identification;

5. All transactions shall be appropriately logged in the

Commission-designated inventory management system,

and as applicable, the internal inventory management sys-

tem in accordance with N.J.A.C. 17:30-9.7 and 9.13; and

6. All transactions shall be conducted in a secure and

monitored manner in accordance with N.J.A.C. 17:30-9.10.

(d) The cannabis retailer shall notify the municipality in

which it is located and local law enforcement that it intends to

conduct curbside retail sales.

17:30-14.4

17:30-14.5 Cannabis retailer recordkeeping; reporting

(a) A cannabis retailer shall keep a complete and accurate

record of all cannabis item purchases and sales, including

17:30-14.5 TREASURY—GENERAL

Supp. 3-6-23 30-70

deliveries, made to consumers or other cannabis businesses

by the retailer or a cannabis delivery service acting on its be-

half, including the date of purchase and delivery sale, the

cannabis items purchased or sold, and the purchasing or sell-

ing entity, and any information required at N.J.A.C. 17:30-

14.8(l).

1. Such records shall be kept and maintained for four

years, either on-premises or at an off-site facility, in written

or electronic form.

(b) A cannabis retailer license holder shall collect and re-

port to the Commission for each calendar year at least the

following statistical data:

1. The number of consumers who purchased each can-

nabis item sold by the cannabis retailer;

2. Total number of cannabis item transactions;

3. Taxes collected; and

4. Such other information as the Commission may re-

quire in the administration and enforcement of this chapter.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (a).

17:30-14.5

17:30-14.6 Cannabis retailer consumer education

(a) A cannabis retailer shall, prior to the opening date of

the cannabis business, establish and implement policies de-

scribing its plans for providing information and communi-

cating to consumers as to:

1. Limitations of the right to possess and use cannabis

items pursuant to the Act and this chapter;

2. Potential side effects of cannabis use;

3. The differing strengths of cannabis items sold;

4. Safe techniques for use of cannabis items and para-

phernalia, noting the potential variations in feeling the ef-

fects of cannabis;

5. Alternative methods and forms of consumption or

inhalation by which one can use cannabis items;

6. Signs and symptoms of substance abuse;

7. Opportunities to participate in substance abuse pro-

grams; and

8. Information on tolerance, dependence, and with-

drawal.

(b) A cannabis retailer shall maintain, and make available

for distribution to consumers, an adequate supply of up-to-

date informational materials addressing the matters identified

in the policies developed pursuant to (a) above.

1. Informational materials must be available for inspec-

tion by the Commission upon request.

17:30-14.7 Cannabis retailer storage

All cannabis items shall be stored in an enclosed indoor,

locked area pursuant to N.J.A.C. 17:30-9.12 where access to

such area is limited to an owner, principal, employee, or vol-

unteer of a license holder or staff members of a license hold-

er’s management services contractor that possesses a Canna-

bis Business Identification Card when acting in their official

capacity.

17:30-14.8 Home delivery

(a) A license holder holding a Class 6 Cannabis Delivery

license may be authorized by a cannabis retailer to deliver

cannabis items to consumers on behalf of that cannabis retail-

er, based on purchase orders.

(b) As approved by the Commission and pursuant to

N.J.S.A. 24:6I-44.j, on behalf of a cannabis retailer, cannabis

retailer delivery personnel or a cannabis delivery service per-

sonnel may deliver cannabis to a consumer at a residence.

1. Cannabis retailers or cannabis delivery services may

engage in delivery in any region and may institute geo-

graphic and hourly restrictions on where and when they opt

to deliver to consumers.

2. Any such restrictions shall be reported to the Com-

mission and listed on the cannabis retailer’s or cannabis de-

livery service’s Internet website.

3. Cannabis retailers or cannabis delivery services may

change those restrictions; provided, however, that the can-

nabis retailer or cannabis delivery service gives advance

notice of seven days to the Commission, the cannabis re-

tailer gives advance notice of seven calendar days to the

municipality in which the cannabis retailer is located, and

the cannabis retailer or cannabis delivery service posts the

changed restrictions online and at their cannabis business

premises or administrative office.

4. If servicing different geographic areas on different

days or at different times, cannabis retailers or cannabis de-

livery services shall implement a regular schedule to the

extent practicable.

ther directly with a cannabis retailer, or with a cannabis de-

livery service that provides the purchase order to a cannabis

retailer, and cannabis items in the purchase order shall be

assembled for delivery at the cannabis retailer premises, and

then provided to the cannabis retailer delivery or cannabis

delivery service personnel.

1. When a consumer places an order for delivery for

the first time with a cannabis retailer or cannabis delivery

service, the cannabis retailer or cannabis delivery service

may validate the consumer’s age by phone or through

online means, provided, however that an in-person verifi-

cation is conducted by cannabis retailer delivery or canna-

PERSONAL USE CANNABIS RULES 17:30-14.8

30-71 Supp. 3-6-23

bis delivery service personnel prior to sale and furnishing

the ordered items.

(d) In transit, cannabis items shall be locked and stored in

a sanitary and secure lockbox in the delivery vehicle until

cannabis retailer delivery or cannabis delivery service per-

sonnel arrive at the delivery address.

(e) When outside of the vehicle to conduct a delivery, or

when leaving the vehicle for any other reason, cannabis re-

tailer delivery or cannabis delivery service personnel shall

lock the delivery vehicle and the secure lockbox and engage

the vehicle alarm system.

(f) Deliveries may be conducted by a single person; pro-

vided, however, that another person that is cannabis retailer

or cannabis delivery service personnel, preferably a supervi-

sor, has access to real-time GPS tracking of the delivery vehi-

cle.

(g) A cannabis delivery service and cannabis retailer shall

only deliver:

1. To a residence, including a temporary residence, in

this State;

2. To a legal consumer whose age has been verified by

an examination of the consumer’s photographic identifica-

tion; and

3. A cannabis item in-person and shall not use an un-

manned vehicle.

(h) A cannabis retailer or cannabis delivery service shall

not leave cannabis items unattended, such as on a porch or

stoop, and shall not deliver in mailboxes or to post office

boxes or to any residence located on land owned by the Fed-

eral government or any residence on land or in a building

leased by the Federal government.

(i) At the door of the consumer, cannabis retailer delivery

or cannabis delivery service personnel shall conduct an in-

person visual verification of the photographic identification

of the consumer prior to furnishing purchased cannabis items.

(j) Cannabis retailer delivery or cannabis delivery service

personnel may make multiple deliveries in one trip and shall

travel only between the cannabis retailer premises and resi-

dential delivery addresses, except in the event of emergency

or dangerous road conditions or as necessary for sanitization,

rest, fuel, or vehicle repair stops.

1. A cannabis retailer or cannabis delivery service shall

ensure that deliveries are completed in a timely and effi-

cient manner.

2. During delivery, the cannabis retailer delivery or

cannabis delivery service personnel driving the delivery

vehicle shall comply with this section and all New Jersey

laws, rules, and regulations for operation of vehicles on

public roadways.

(k) All transactions, including the information at (l) below,

shall be appropriately logged in the Commission-designated

inventory management system and, as applicable, the canna-

bis retailer’s and cannabis delivery service’s internal invento-

ry in accordance with N.J.A.C. 17:30-9.7 and 9.13 and other

corresponding rules.

(l) A cannabis retailer and cannabis delivery service shall

maintain delivery records, which includes the following in-

formation for every delivery conducted by the cannabis re-

tailer or on its behalf:

1. Date and time that the delivery began and ended;

2. Name, address, and signature of the consumer deliv-

ery recipient;

3. Name and Cannabis Business Identification Card

number of cannabis retailer delivery or cannabis delivery

service personnel;

4. The name, amount, batch or lot number(s), and

tracking number(s) of the cannabis item(s) delivered; and

5. Confirmation of photographic identification verifica-

tion.

(m) Where a delivery is attempted and not completed and

the cannabis item remains in the possession of the cannabis

retailer delivery or cannabis delivery service personnel, the

delivery personnel shall return the cannabis item to the origi-

nating retailer. The cannabis retailer may restock the product,

logging the product’s amended status in the internal invento-

ry. Such items must be in new, unopened condition prior to

restocking and may be delivered to a consumer pursuant to a

subsequent purchase order.

(n) To the extent practicable, the cannabis retailer and can-

nabis delivery service shall implement protective measures

for delivery to reduce the spread of COVID-19 and other

communicable diseases as recommended by the New Jersey

Department of Health, the United States Centers for Disease

Control and Prevention, the Occupational Safety and Health

Administration, or health care professionals. These include,

but are not limited to, providing cannabis business delivery

personnel with hand sanitizer and personal protective equip-

ment, including face masks.

(o) While conducting a delivery, a person that is cannabis

retailer delivery or cannabis delivery service personnel shall

carry:

1. Their Cannabis Business Identification Card;

2. A valid non-probationary driver’s license appropri-

ate to the type of delivery vehicle driven;

3. A cellular telephone to communicate securely with

the cannabis retailer or cannabis delivery service; and

4. A physical or electronic copy of the consumer’s de-

livery request or purchase order, which shall be made

17:30-14.8 TREASURY—GENERAL

Supp. 3-6-23 30-72

available, upon request, to State and local law enforcement,

the Commission, and local regulatory agencies.

(p) A delivery vehicle shall bear no markings that would

either identify or indicate that the vehicle is used to deliver

cannabis items.

(q) Delivery vehicles shall be equipped with or contain an

operational GPS device at all times.

(r) A cannabis retailer and cannabis delivery service shall

maintain current hired and non-owned automobile liability

insurance sufficient to insure each delivery vehicle in the

amount of at least $1,000,000 per occurrence or accident.

(s) A cannabis retailer and cannabis delivery service shall

provide the Commission with current information on all de-

livery vehicles, including each vehicle’s make, model, color,

vehicle identification number, license plate number, and ve-

hicle registration.

(t) A cannabis retailer and cannabis delivery service shall

provide the Commission with a list of all personnel that will

be used as cannabis retailer delivery or cannabis delivery ser-

vice personnel, documentation that they have received train-

ing for the position, and verification that they have valid non-

probationary driver’s licenses appropriate to the type of de-

livery vehicle driven.

(u) A cannabis retailer and cannabis delivery service shall

report any vehicle accidents, diversions, losses, or other re-

portable events that occur during delivery to the appropriate

State and local authorities, including the Commission.

(v) A cannabis retailer or cannabis delivery service may

charge a delivery fee.

(w) A cannabis retailer may sell finished cannabis items to

another cannabis retailer to conduct deliveries on its behalf.

(x) Prior to initiating delivery services, a cannabis retailer

and cannabis delivery service shall provide the Commission

with a delivery operations plan for approval. The delivery

operations plan shall include standard operating procedures

for:

1. Taking orders, verifying photographic identification;

and taking payments;

2. Logging the transactions in the Commission-

designated inventory management system and, as applica-

ble, internal inventory;

3. Conducting in-person deliveries, which shall include

protocols for use of personal protective equipment and reg-

ular sanitization, if necessary;

4. Maintaining privacy and confidentiality of the pur-

chasing consumer’s purchase information;

5. Training cannabis retailer delivery or cannabis de-

livery service personnel;

6. Tracking delivery vehicles and inventory;

7. Security for cannabis retailer delivery or cannabis

delivery service personnel, delivery vehicles, and invento-

ry; and

8. Emergency notification and response in the event of

accidents, theft, equipment malfunction, or other emergen-

cy events.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

——————

SUBCHAPTER 15. CANNABIS DELIVERY SERVICE

AUTHORIZED CONDUCT

17:30-14.8

17:30-15.1 Cannabis delivery service authorized conduct

(a) A cannabis delivery service holding a Class 6 Cannabis

Delivery Service license issued by the Commission shall be

authorized to:

1. After receiving a purchase order from a consumer or

a cannabis retailer, obtain cannabis items, cannabis para-

phernalia, and related supplies from such cannabis retailer;

2. Possess, store, and transport cannabis items, canna-

bis paraphernalia, and related supplies;

3. Deliver cannabis items, cannabis paraphernalia, and

related supplies to a consumer consistent with the require-

ments at N.J.A.C. 17:30-14.8;

4. Transport undelivered cannabis items, cannabis par-

aphernalia, and related supplies back to its originating can-

nabis retailer; and

5. Dispose of or destroy cannabis items.

(b) A cannabis delivery service holding a Class 6 Cannabis

Delivery Service license issued by the Commission shall not

be authorized to:

1. Cultivate or package cannabis;

2. Produce, manufacture or otherwise create, or pack-

age cannabis products; or

3. Transport, transfer, distribute, supply, or sell canna-

bis, cannabis items, paraphernalia, or related supplies to

cannabis businesses.

der the age of 21 to purchase cannabis items.

(d) A cannabis delivery service shall only deliver cannabis

items directly to a consumer.

(e) A cannabis delivery service may, as authorized by its

selling cannabis retailer, maintain and make available on its

Internet website, if any, a standard price list that shall apply

PERSONAL USE CANNABIS RULES 17:30-15.2

30-73 Supp. 3-6-23

to all usable cannabis, cannabis products, paraphernalia, and

related supplies sold by the cannabis retailer.

(f) Each cannabis delivery service shall consider whether

to make interpreter services available to the population

served, including for individuals with a visual or hearing im-

pairment.

1. The cannabis delivery service shall assume the cost

of providing such interpreter services.

2. The Commission shall provide assistance to any

cannabis delivery service that seeks to provide such ser-

vices in locating appropriate interpreter resources.

(g) There shall be no limit on the amount of cannabis items

that a microbusiness cannabis delivery service may deliver, as

fulfilled purchase orders, on behalf of a cannabis retailer.

17:30-15.2 Cannabis delivery to a consumer

(a) Before delivering a cannabis item to a consumer in a

transaction, cannabis delivery service personnel shall exam-

ine any one of the following pieces of photographic identifi-

cation and shall confirm the consumer is of legal age to pur-

chase cannabis:

1. The person’s United States passport, passport from

another country, or proper government-issued documenta-

tion for international travel; provided it is lawful to use as

identification in the United States;

2. The person’s motor vehicle driver’s license, whether

issued by New Jersey or by any other state, territory, or

possession of the United States, or the District of Colum-

bia, provided the license displays a picture of the person;

3. A New Jersey identification card issued by the New

Jersey Motor Vehicle Commission; or

4. Any other identification card issued by a state, terri-

tory, or possession of the United States, the District of Co-

lumbia, or the Federal government that bears a picture of

the person, the name of the person, the person’s date of

birth, and a physical description of the person.

(b) In order to ensure that individual privacy is protected:

1. A cannabis delivery service shall not collect and/or

retain any personal information other than government-

issued identification as set forth at (a) above in order to de-

termine the consumer’s identity and age;

2. A cannabis delivery service shall not collect and/or

retain any personal information about a consumer other

than information typically acquired in a financial transac-

tion conducted by the holder of a Class C retail license

concerning alcoholic beverages as set forth at N.J.S.A.

33:1-12; and

3. The cannabis delivery service shall not keep a copy

of the consumer’s photographic identification.

examination of photographic identification and confirmation

of legal age pursuant to (a) above occurred in a record, and

the cannabis delivery service shall maintain such record and it

shall be available for inspection by the Commission.

(d) The cannabis delivery service shall not deliver to a

consumer in a single sales transaction:

1. More than 28.35 gram (one ounce) of usable canna-

bis;

2. More than four grams of solid cannabis concentrate

or four mL of liquid cannabis concentrate (oil);

3. Vaporized formulation containing more than four

mL of liquid cannabis concentrate (oil);

4. Multiple ingestible cannabis-infused products con-

taining an aggregate total of more than 1,000 mg of THC;

5. More than 28.35 gram (one ounce), or the equiva-

lent, of any combination of usable cannabis and cannabis

products.

(e) The cannabis delivery service shall make a good faith

effort to prevent a consumer from exceeding one ounce of

usable cannabis, or the equivalent weight in cannabis prod-

ucts, in multiple sales transactions.

(f) The cannabis delivery service shall only sell to con-

sumers cannabis items that have been properly tested, pack-

aged, sealed, and labeled in accordance with the provisions at

N.J.A.C. 17:30-16.2 and 16.3.

(g) A cannabis delivery service shall provide the consumer

with a receipt that includes, at a minimum:

1. The cannabis delivery service’s name, address, li-

cense number, and telephone number;

2. The cannabis retailer’s name, address, license num-

ber, and telephone number;

3. The date of retail sale; and

4. The cannabis items purchased and their purchase

price.

(h) A cannabis delivery service delivering an electronic

smoking device to the consumer shall provide a supplemental

information document that:

1. Lists all ingredients or materials used to manufacture

the electronic smoking device;

2. Provides instructions to consumers on how to use the

electronic smoking device safely as part of intended usage

based on manufacturer’s recommendations, which shall in-

clude, but not be limited to, a recommended number of

seconds per dose; and

17:30-15.2 TREASURY—GENERAL

Supp. 3-6-23 30-74

3. States, “Electronic smoking devices and vaporized

formulations of cannabis are not approved by the Food and

Drug Administration and have not been proven to be safe

for use in humans. Consumers should consider alternative

methods for the administration of cannabis.”

(i) A cannabis delivery service shall offer to provide clear-

ly visible information on safe use of cannabis items to con-

sumers at the point of delivery, such as a printed copy of the

information on Safe and Responsible Consumption provided

on the Commission website, www.nj.gov/cannabis.

17:30-15.2

17:30-15.3 Cannabis delivery service recordkeeping

(a) A cannabis delivery service shall keep a complete and

accurate record of all cannabis item deliveries made by the

delivery service, including the date of purchase and delivery,

the cannabis items purchased, the selling entity, and any in-

formation required at N.J.A.C. 17:30-14.8(l).

1. Such records shall be kept and maintained for four

years, either on-premises or at an off-site facility, in written

or electronic form.

(b) A cannabis delivery service license holder shall collect

and report to the Commission for each calendar year at least

the following statistical data:

1. The number of ounces of usable cannabis purchased

and delivered;

2. The number and ounces of cannabis products pur-

chased and delivered;

3. The number of consumers who purchased each can-

nabis item delivered by the cannabis delivery service;

4. The total number of cannabis item sales transactions;

and

5. Such other information as the Commission may re-

quire on a case-by-case basis in the administration and en-

forcement of this chapter.

17:30-15.4 Cannabis delivery service consumer educa-

tion

(a) A cannabis delivery service shall, prior to the opening

date of the cannabis business, establish and implement poli-

cies describing its plans for providing information and com-

municating to consumers as to:

1. Limitations of the right to possess and use cannabis

items pursuant to the Act and this chapter;

2. The potential side effects of cannabis use;

3. The differing strengths of cannabis items available

for delivery by the delivery service;

4. Safe techniques for use of cannabis items and para-

phernalia, noting the potential variations in feeling the ef-

fects of cannabis;

5. Alternative methods and forms of consumption or

inhalation by which one can use cannabis items;

6. Signs and symptoms of substance abuse;

7. Opportunities to participate in substance abuse pro-

grams; and

8. Information on tolerance, dependence, and with-

drawal.

(b) A cannabis delivery service shall maintain, and make

available to consumers, an adequate supply of up-to-date in-

formational materials addressing the matters identified in the

policies developed pursuant to (a) above. A cannabis delivery

service may fulfill this obligation by providing the informa-

tional materials of the cannabis retailer that fulfills a consum-

er’s purchase order.

1. Informational materials must be available for inspec-

tion by the Commission upon request.

17:30-15.5 Cannabis delivery service inventory

(a) The inventory of a cannabis delivery service during de-

livery shall be dependent on the selling cannabis retailer.

(b) A cannabis delivery service shall not acquire cannabis

items, except pursuant to a purchase order from a consumer.

——————

SUBCHAPTER 16. RELEASE FOR DISTRIBUTION;

PACKAGING AND LABELING OF CANNABIS

ITEMS

17:30-16.1 Processing of cannabis items; release for dis-

tribution

(a) Each cannabis cultivator and cannabis manufacturer

shall contract with a testing laboratory to obtain and test sam-

ples of unusable or usable cannabis and cannabis products.

(b) A cannabis cultivator or cannabis manufacturer shall

process unusable or usable cannabis or manufacture cannabis

products in a safe and sanitary manner to protect consumers

from adulterated cannabis items, which shall be:

1. For usable cannabis, well cured, and free of seeds

and stems;

2. Free of dirt, sand, debris, or other foreign matter;

and

3. Free of mold, rot, or other fungus or bacterial diseas-

es.

final dried form, or after manufacturing is complete and can-

nabis products are in their final form, as applicable, before

packaging and release for distribution, a cannabis cultivator

or cannabis manufacturer shall ensure that a licensed testing

laboratory, in accordance with N.J.A.C. 17:30-19:

PERSONAL USE CANNABIS RULES 17:30-16.2

30-75 Supp. 3-6-23

1. Obtains a representative sample from a batch of un-

usable or usable cannabis or a lot of cannabis products;

2. Tests the representative sample; and

3. Provides a written report to the cannabis cultivator

or cannabis manufacturer.

(d) The cannabis cultivator or cannabis manufacturer shall

hold the batch of unusable or usable cannabis or lot of canna-

bis products in secure, segregated storage until it receives a

written report from the licensed testing laboratory confirming

that the representative sample meets specifications.

(e) After it receives a written report confirming that the

representative sample meets specifications, the cannabis cul-

tivator or cannabis manufacturer may:

1. Assign an expiration date to the batch or lot;

2. Package the batch or lot and release it for distribu-

tion; and

3. Revise the status of the batch or lot in the inventory

control.

(f) When the cannabis cultivator or cannabis manufacturer

receives a written report confirming that the test results of the

representative sample do not meet specifications, the cannabis

cultivator or cannabis manufacturer shall not sell the batch or

lot to another cannabis business and shall destroy the batch or

lot or dispose of it by rendering it unrecoverable and unrec-

ognizable, with the following exceptions:

1. If the written report confirms that the test results for

unusable or usable cannabis do not meet specifications for

total yeast and mold count, pursuant to the microbial con-

tamination subsection of the Cannabis Testing Guidance,

the cannabis cultivator may sell the batch to a cannabis

manufacturer to manufacture the batch into a cannabis ex-

tract or cannabis-infused product using a process involving

a solvent that leaves no yeast or mold, and where the final

cannabis product is tested again prior to sale or transfer;

and

2. The cannabis business may retest and remediate pur-

suant to N.J.S.A. 24:6I-35.a(13)(c).

(g) The cannabis cultivator or cannabis manufacturer shall

submit a copy of the written report to the Commission on a

form developed by the Commission.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), (b), (c)1, and (d), inserted “unusable or”; in the introductory

paragraph of (c), updated the N.J.A.C. reference; and rewrote (f).

17:30-16.2 Cannabis item packaging requirements

(a) A cannabis cultivator or cannabis manufacturer, as ap-

plicable, shall package unusable cannabis for the purposes of

manufacturing or cannabis items in packaging compliant with

the requirements of this subchapter in a secure area connected

to the cultivation or manufacturing area in accordance with

this section before transfer to another cannabis business.

1. The unusable or usable cannabis and cannabis prod-

ucts shall be handled on food grade stainless steel tables.

2. Proper sanitation shall be maintained.

3. Proper rodent and bird exclusion practices shall be

employed at all times.

(b) Each package of unusable or usable cannabis and can-

nabis product shall be sealed in a closed container, so that the

package cannot be opened, and the contents consumed, with-

out the seal being broken.

1. A container for the packaging of cannabis products,

as used in this subsection, shall meet United States Phar-

macopeia standards (see Containers under Preservation,

Packaging, Storage, and Labeling in the General Notices

and Requirements, Containers 661, and Containers—

Permeation 671).

2. A container for the packaging of cannabis products,

as used in this subsection, shall depend on the physical and

chemical properties of the cannabis product; container–

cannabis interaction is to be considered with substances

such as phenolic compounds and sorptive materials (for

example, polypeptides and proteins).

shall bear a label that complies with N.J.A.C. 17:30-16.3 and

shall be affixed with the universal symbol established by the

Commission pursuant to N.J.A.C. 17:30-16.6.

(d) Where a cannabis cultivator packages unusable or usa-

ble cannabis for the purposes of manufacturing to be sold to

another cannabis cultivator or a cannabis manufacturer, such

packages may contain any amount of cannabis. Where a can-

nabis cultivator packages usable cannabis for sale to a canna-

bis retailer, such packages may contain any increment up to

and including one ounce or 28.35 grams.

(e) A cannabis manufacturer shall only package authorized

forms of cannabis products, and such packages may contain

such amounts in accordance with N.J.A.C. 17:30-11.5.

(f) All packaging for cannabis items shall:

1. Be fully enclosed, opaque, of a single color, and

light resistant.

i. Packaging may contain logos or symbols of a dif-

ferent color or colors;

2. Be child-resistant in accordance with the Poison

Prevention Packaging Act of 1970, 16 CFR Part 1700;

3. Protect the product from contamination; and

4. Be able to be resealed in a child-resistant manner,

unless the package contains a single serving cannabis item.

17:30-16.2 TREASURY—GENERAL

Supp. 3-6-23 30-76

i. For ingestible products in liquid form with mul-

tiple serving units, the container must have a resealing

cap or closure.

(g) Once a package is sealed, a cannabis business shall not

open the package, except for quality control purposes. Once

the seal is broken on a cannabis item ready for sale to the

consumer, the cannabis item is deemed unusable.

(h) Cannabis businesses shall make a good faith effort to

utilize packaging that is biodegradable.

(i) Subsections (f) and (g) above shall not apply to unusa-

ble or usable cannabis packaged and transported to a cannabis

manufacturer for the purposes of manufacturing cannabis

products. Such unusable or usable cannabis may be packaged

in bulk in a resealable container designed to protect the prod-

uct from contamination.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-16.2

17:30-16.3 Cannabis item labeling requirements

(a) A cannabis cultivator or cannabis manufacturer, as ap-

plicable, shall ensure that each package of unusable or usable

cannabis or cannabis product contains all information set

forth in this section, whether printed directly on the package,

or affixed with a compliant label before transfer to another

cannabis business.

(b) Direct printing on the package of, or labels affixed to,

unusable cannabis packaged for the purposes of manufactur-

ing of cannabis items shall include the following consumer

safety and product information:

1. The name, address, license number, telephone num-

ber of the cannabis cultivator, and cannabis manufacturer

that produced the cannabis item, as applicable;

2. Net weight and quantity of the unusable cannabis or

cannabis items contained in the package;

3. Production or harvest date;

4. Expiration date, consistent with the requirements at

N.J.A.C. 17:30-11.8;

5. A sequential serial number, batch or lot number, and

bar code to identify the batch or lot associated with cultiva-

tion or manufacturing;

6. A list of any other inactive or excipient ingredients

besides unusable or usable cannabis or cannabis concen-

trate used to manufacture a cannabis product or contained

within the package;

7. A list of all potential allergens contained within the

cannabis product;

8. Whether the cannabis item requires refrigeration;

9. For a finished cannabis item, serving size and the to-

tal number of servings contained and the cannabinoid and

terpene profile, in milligrams and as a percentage, of the

cannabis item and of a single serving size.

i. For example: “The serving size of active THC in

this product is X mg. This product contains X servings

of cannabis, and the total amount of active THC in this

product is X mg.”

ii. The cannabinoid profile shall reflect for the con-

sumer the total THC, total CBD, and total CBG in the

finished cannabis item:

(1) Total THC = (THCA * 0.877) + delta-9-THC;

and

(2) Total CBD = (CBDA * 0.877) + CBD;

iii. The cannabinoid profile may reflect for the con-

sumer the total CBG, total CBN, total CBC, total THCV,

total CBDV, or other total cannabinoids in the finished

cannabis item:

(1) Total CBG = (CBGA * 0.878) + CBG;

(2) Total CBC = (CBCA * 0.877) + CBC;

(3) Total THCV = (THCVA * 0.867) + THCV;

and

(4) Total CBDV = (CBDVA * 0.867) + CBDV;

10. The strain/cultivar name, listed by scientific terms, if

available, and generic or “slang” names;

11. For unusable or usable cannabis, the chemotype,

growth method, an indication whether the cannabis was

grown using all-organic materials, and a list of any allowa-

ble pesticides, fungicides, and herbicides used in cultiva-

tion pursuant to N.J.A.C. 17:30-10.9.

i. Chemotypes shall be displayed as:

(1) “High THC, Low CBD,” where the THC to

CBD ratio is greater than 5:1 and the total THC per-

centage is 15 percent or greater;

(2) “Moderate THC, Moderate CBD,” where the

THC to CBD ratio is between 5:1 and 1:5 and the total

THC percentage is between five percent and 15 per-

cent;

(3) “Low THC, High CBD,” where the THC to

CBD ratio is less than 1:5 and the total THC percent-

age is less than or equal to five percent; or

(4) Where unusable or usable cannabis does not

conform to one of the three chemotypes, it shall be

listed as the closest chemotype determined by mathe-

matical analysis of the ratio of THC to CBD.

ii. Growth methods include, but are not limited to:

(1) Indoor;

PERSONAL USE CANNABIS RULES 17:30-16.5

30-77 Supp. 3-6-23

(2) Outdoor;

(3) Soil-grown;

(4) Hydroponic; or

(5) Aquaponic;

12. A summary of the written report detailing the results

of the testing laboratory testing, including, but not limited

to:

i. Potency of all major cannabinoids detected and

listed in the written report; and

ii. A list of major terpenoids detected and listed in

the written report;

13. Directions for inhalable, ingestible, or topical admin-

istration, as appliable;

14. Requirements for proper storage; and

15. Optionally, a unique URL or QR code for each

batch/lot that links to the complete written report.

lowing consumer warnings, as applicable, in no less than six-

point font, unless otherwise noted:

1. For all finished cannabis items:

i. “This product contains cannabis”;

ii. “This product is intended for use by adults 21

years of age or older and not for resale. Keep out of the

reach of children”;

iii. “There may be health risks associated with the

consumption of this product, including for women who

are pregnant, breastfeeding, or planning on becoming

pregnant”;

iv. “Do not drive a motor vehicle or operate heavy

machinery while using this product”; and

v. The nationwide toll-free telephone number used

to access poison control centers that is maintained in ac-

cordance with 42 U.S.C. § 300d-71;

2. For any cannabis item that contains a total THC per-

centage greater than 40 percent:

i. “This is a high potency product and may increase

your risk for psychosis” printed in no less than 10-point

font.

3. For ingestible products:

i. “The intoxicating effects of this product may be

delayed by two or more hours” printed in no less than

10-point font.

4. For an electronic smoking device: “This device has

not been evaluated or approved by the Food and Drug Ad-

ministration.”; and

5. A label containing any statements about the product

other than those specified in this chapter shall contain the

following statement prominently displayed, and in boldface

type: “This statement has not been evaluated by the Food

and Drug Administration. This product is not intended to

diagnose, treat, cure, or prevent any disease.”

(d) The cannabis business shall submit the label and any

required form to the Commission for recordkeeping.

1. The Commission shall provide a copy of the label to

authorized employees of State agencies or local law en-

forcement agencies, as necessary for these agencies to per-

form their official duties.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-16.4 Tax stamp and tracking

(a) Every cannabis item shall contain a unique stamp or

tag, as prescribed by the Commission, that, at a minimum:

1. Verifies the cannabis item was cultivated, manufac-

tured, and sold by licensed cannabis businesses.

i. The Commission shall utilize the unique stamp

or tag to provide the license numbers where the cannabis

item was cultivated, manufactured, and sold to consum-

ers who purchase cannabis items;

2. Tracks the batch(es) and lot(s) with which the can-

nabis item is associated; and

3. Allows the Commission to track compliance with

sales tax, municipal transfer tax, and social equity excise

fees.

(b) Cannabis businesses shall be responsible for paying

any fees, as determined by the Commission, for the unique

stamp or tag required by this subchapter.

stamp pursuant to this subchapter, the Commission shall au-

thorize cannabis items to be sold without tax stamps.

17:30-16.4

17:30-16.5 Cannabis item packaging and labeling; pro-

hibitions

(a) The packaging and labeling of cannabis items shall not

contain any:

1. Statement, illustration, or image that includes false,

deceptive, or misleading statements or promotes over-

consumption;

2. Resemblance to a trademarked, characteristic, or

product-specialized packaging of any commercially availa-

ble candy, snack, baked good, or beverage;

3. Statement, artwork, or design that could reasonably

mislead any person to believe that the cannabis item or

package contains anything other than cannabis items;

17:30-16.5 TREASURY—GENERAL

Supp. 3-6-23 30-78

4. Seal, flag, crest, coat of arms, or other insignia that

could reasonably mislead any person to believe that the

cannabis items or package have been endorsed, manufac-

tured, or used by any state, county, or municipality, or any

agency thereof;

5. Statement, illustration, or image that depicts a child

or other person under legal age consuming cannabis items;

6. Statement, illustration, image, cartoon, color

scheme, graphic, or feature that might make the cannabis

item or package attractive to children.

i. Examples of images or graphics that are prohib-

ited include, but are not limited to, toys, games, candy,

beverages, food products, characters, cartoon characters

suggesting the presence of a person under the legal age

to purchase cannabis items, or any other depiction de-

signed in any manner to be especially appealing to per-

sons under the legal age to purchase cannabis items.

17:30-16.5

17:30-16.6 Cannabis item packaging and labeling; uni-

versal symbol

(a) Pursuant to N.J.S.A. 24:6I-35, the Commission estab-

lished a universal symbol indicating clearly to consumers and

members of the public that any package of cannabis items

contains cannabis.

1. Such symbol shall be imprinted on all packages of

cannabis items in a form and manner prescribed by the

Commission.

2. Downloadable versions of such symbols and guide-

lines for how the symbols are to appear shall be located on

the New Jersey Universal Symbol For Adult Use Cannabis

document on the Commission’s website, https://www.nj.

gov/cannabis.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In the introductory paragraph of (a), substituted “established” for

“shall establish”; in (a)1, deleted “, once established,” following “sym-

bol”; and added (a)2.

——————

SUBCHAPTER 17. ADVERTISING

17:30-17.1 Purpose

(a) This subchapter establishes the requirements for the

advertising of cannabis products and cannabis paraphernalia

to ensure no advertisement is made in a manner that is ap-

pealing to minors or promotes excessive use or illegal activi-

ty, or that otherwise presents a significant risk to public

health and safety.

(b) The Commission may take enforcement action and pu-

nitive action pursuant to N.J.A.C. 17:30-20.5 against a license

holder that fails to comply with N.J.S.A. 24:6I-34.b(b)(6) and

35.a(9) and this subchapter, which may include, but is not

limited to, specifying a reasonable time period by which the

license holder shall cease the non-compliant advertising and

remove any advertising still being published or displayed.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b), updated the N.J.A.C. reference.

17:30-17.2 General advertising requirements and prohi-

bitions

(a) A licensed cannabis business may provide information

to the public through advertising, except that no person shall

engage in advertisement of a cannabis business, cannabis

products, or cannabis paraphernalia, unless such person has

reliable evidence that at least 71.6 percent of the audience for

the advertisement is reasonably expected to be 21 years of

age or older.

(b) Any advertisement of any cannabis product, or canna-

bis paraphernalia shall contain the following warning: “This

product contains cannabis. For use only by adults 21 years of

age or older. Keep out of the reach of children. There may be

health risks associated with the consumption of this product,

including for women who are pregnant, breastfeeding, or

planning on becoming pregnant. Do not drive a motor vehicle

or operate heavy machinery while using this product.”

shall disclose that the facility is licensed by the State of New

Jersey.

(d) No person shall advertise any cannabis business, can-

nabis product, or cannabis paraphernalia:

1. In a manner that would target, or is designed to ap-

peal to, individuals under the legal age to purchase canna-

bis products, including, but not limited to:

i. A depiction of a person under 21 years of age

consuming cannabis items; or

ii. Inclusion of objects, such as toys, characters, or

cartoon characters suggesting the presence of a person

under 21 years of age, or any other depiction designed in

any manner to be especially appealing to a person under

21 years of age;

2. On television, streaming services, or on the radio be-

tween the hours of 6:00 A.M. and 10:00 P.M.

i. Advertising online is allowed with no hour re-

strictions;

3. In any form or through any medium whatsoever

within 200 feet of any elementary or secondary school

grounds.

i. This paragraph shall not apply to advertisements

within the premises of a cannabis retailer;

PERSONAL USE CANNABIS RULES 17:30-18.1

30-79 Supp. 3-6-23

4. Directed towards location-based devices, including,

but not limited to, cellular phones or augmented reality de-

vices, unless the advertising is a mobile device application

installed on the device by the owner of the device who is at

least 21 years of age, and it includes a permanent and easy

opt-out feature and warnings that the use of cannabis items

is restricted to persons 21 years of age or older;

5. At or in connection with a charitable, sports, musi-

cal, artistic, cultural, social, or other similar event or spon-

sor such an event, unless the advertiser or sponsor has reli-

able evidence that no more than 20 percent of the audience

at the event is reasonably expected to be under the legal

age to purchase cannabis items;

6. On a billboard that is not on the real property where

a cannabis business is located;

7. On a sign or placard in an arena, stadium, shopping

mall, fair that receives State allocations, or video game ar-

cade, unless such a site is an adult-only facility that prohib-

its persons under 21 years of age from entering;

8. In a manner that falsely disparages the products of

another cannabis business;

9. In a manner that suggests that cannabis items are

safe solely based on the fact that they are regulated by the

Commission or have been tested by a licensed testing la-

boratory;

10. In a manner that promotes rapid consumption or

overconsumption of cannabis; and

11. By way of any statement or illustration that is decep-

tive, false, or misleading. For the purposes of this section, a

statement or illustration that is “deceptive, false, or mis-

leading” includes, but is not limited to:

i. A representation that one brand or form of can-

nabis is better, more effective, or safer than other drugs

or treatments, including other brands or forms of canna-

bis, unless such a claim has been demonstrated by sub-

stantial scientific or clinical evidence consisting of two

or more adequate and well-controlled studies on the ba-

sis of which it could fairly and reasonably be concluded

by experts qualified by scientific training and experience

to evaluate the effectiveness of the product involved that

the product will have the effect it purports or is repre-

sented to have under the conditions of use prescribed,

recommended, or suggested in the labeling or proposed

labeling thereof. Substantial evidence shall include such

adequate and well-controlled studies that are, as a matter

of sound scientific judgment, necessary to establish that

a product will have its intended effect;

ii. The use of a quote or a paraphrase out of context

or without citing conflicting information from the same

source, to convey a false or misleading idea; or

iii. The use of favorable information or conclusions

from a study that is plainly inadequate in design, scope,

or conduct to furnish significant support for such infor-

mation or conclusions.

(e) No cannabis business shall:

1. Display, on the exterior of the establishment, any

advertisement for cannabis or a certain brand of cannabis

product, except that a cannabis business may have external

signage for purposes of identifying the building by the li-

censed name.

i. The signage shall be compliant with local ordi-

nances related to the real property where the cannabis

business is located;

2. Use a commercial mascot outside of, or in proximity

to, its premises;

3. Display cannabis and cannabis paraphernalia in a

manner that is clearly visible to a person from the exterior

of a cannabis business;

4. Advertise the price of cannabis products, except that:

i. A cannabis business may make available a cata-

logue or a printed list of the prices and strains or culti-

vars of cannabis items at the cannabis business to other

cannabis businesses or consumers, as applicable; and

ii. A cannabis business may list its prices on its

website or a third-party website; or

5. Produce any items for sale or promotional gifts, such

as T-shirts or novelty items, bearing a symbol or references

to cannabis.

i. This prohibition shall not pertain to cannabis

paraphernalia sold to consumers.

(f) A cannabis business that advertises shall keep records

as reliable evidence that the advertisement meets the require-

ments of this subchapter, which shall be available, upon re-

quest, to the Commission.

1. Such records shall include a precise description of

the audience that is reasonably expected for an advertise-

ment, and a list of all publications and venues in which an

advertisement was published.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

——————

SUBCHAPTER 18. LICENSING OF TESTING LABORA-

TORIES

17:30-17.2

17:30-18.1 Notice of testing laboratory application li-

censing

(a) Pursuant to section 25 of P.L. 2019, c. 153 (N.J.S.A.

24:6I-18), the Commission shall license testing laboratories

that perform testing services.

17:30-18.1 TREASURY—GENERAL

Supp. 3-6-23 30-80

(b) The Commission shall announce a date upon which it

will begin accepting applications from entities seeking to

apply for a license to operate a testing laboratory, along with

the criteria for such applications.

17:30-18.1

17:30-18.2 Testing laboratory application; approval;

denial; issuance of license

(a) To apply for a testing laboratory license, an applicant

for such license shall access an application form from the

Commission’s website at https://www.nj.gov/cannabis and

shall submit the completed application online.

1. Application materials submitted to the Commission

pursuant to N.J.S.A. 24:6I-18 and this section shall not be

considered public records pursuant to N.J.S.A. 47:1A-1 et

seq., or the common law concerning access to government

records.

(b) The applicant shall include in the application, the fol-

lowing:

1. The legal name of the license applicant applying for

a license, a copy of the entity’s organizational documents

and bylaws, evidence that the business entity is in good

standing with the New Jersey Department of the Treasury,

and a certificate, certified under the seal of the New Jersey

State Treasurer, as to the legal status of the business entity;

2. Documentation of a valid Business Registration Cer-

tificate on file with the New Jersey Department of the

Treasury, Division of Revenue and Enterprise Services;

3. The mailing and physical addresses of the proposed

testing laboratory facility;

4. A list of the names, addresses, and dates of birth of

the testing laboratory applicant’s owners, principals, and

employees, and disclosure of any affiliation with any ATC

or cannabis business, or any previous ownership of or em-

ployment with any ATC or cannabis business by any of the

individuals;

5. A list of all individuals or business entities having

direct or indirect authority over the management or stand-

ard operating procedures of the testing laboratory appli-

cant;

6. A sworn statement from each of the testing laborato-

ry applicant’s owners, principals, and employees attesting

that none of them currently hold any ownership or any em-

ployment with any ATC or ATC applicant, or cannabis

business or cannabis business applicant;

7. Written consent from each owner, principal, or em-

ployee of the testing laboratory applicant to being finger-

printed for the purposes of undergoing a criminal history

record background check pursuant to N.J.A.C. 17:30-7.12.

i. A testing laboratory applicant with an owner,

principal, or employee who refuses to consent to, or co-

operate in, the securing of a criminal history record

background check shall not be considered for a cannabis

testing laboratory license, except that no criminal history

record background check shall be required for an owner,

principal, or employee of the testing laboratory applicant

who completed a criminal history record background

check as a condition of current and active professional

licensure or certification, provided it was completed in

the previous three calendar years;

8. Evidence of ISO 17025 certification from an ac-

creditation body that requires conformance by the testing

laboratory to the International Organization for Standardi-

zation (ISO) and the International Electrotechnical Com-

mission (IEC) general requirements for the competence of

testing and calibration laboratories (ISO/IEC 17025 stand-

ards), as they may be updated or revised, in order to ensure

equipment is routinely inspected, calibrated, and main-

tained;

9. A list of all accreditations, registrations, and certifi-

cations held by the testing laboratory applicant, including,

but not limited to, from governing bodies, such as the

Commission, the New Jersey Department of Health, the

New Jersey Department of Environmental Protection, the

New Jersey Department of Agriculture, other similar agen-

cies in other states, the U.S. Food and Drug Administra-

tion, or the U.S. Department of Agriculture;

10. Evidence of experience related to the testing activi-

ties associated with the license sought and ability to com-

ply with the requirements of this chapter and the Act;

11. Certification from each of the testing laboratory ap-

plicant’s owners, principals, and employees stating that

they submit to the jurisdiction of the courts of the State of

New Jersey and agree to comply with all the requirements

of the laws of the State of New Jersey pertaining to the

Commission;

12. An attestation signed by a bona fide labor organiza-

tion stating that the testing laboratory applicant has entered

into a labor peace agreement with such bona fide labor or-

ganization; and

13. Any other information the Commission deems rele-

vant in determining whether to grant a license to the appli-

cant.

statement from each owner, principal, or employee of the

testing laboratory applicant attesting that the individual has

not been convicted of any disqualifying conviction pursuant

to N.J.A.C. 17:30-7.12.

(d) The Commission may verify information contained in

each application and accompanying documentation by:

1. Contacting the applicant by telephone, mail, or elec-

tronic mail;

2. Conducting an on-site visit;

PERSONAL USE CANNABIS RULES 17:30-18.3

30-81 Supp. 3-6-23

3. Requiring a face-to-face meeting and the production

of additional identification materials if proof of identity is

uncertain; and

4. Requiring additional information as the Commission

deems reasonably necessary to determine whether a license

should be granted.

(e) The Commission shall approve a testing laboratory li-

censing applicant that:

1. Submits a sufficient application pursuant to (b)

above, that provides all requested information and presents

only truthful information;

2. Is qualified for a testing laboratory license pursuant

to N.J.A.C. 17:30-18.3; and

3. Submits a testing laboratory license application fee

in accordance with N.J.A.C. 17:30-7.17.

(f) The Commission shall issue a written notice of its

award decision to applicants.

(g) After the license applicant has completed any neces-

sary construction or preparation of the testing laboratory, the

license applicant shall request an onsite assessment.

(h) The Commission shall conduct an onsite assessment of

the testing laboratory and determine whether its premises,

operations, and procedures are consistent with its application,

and compliant with the Act and this chapter.

(i) If the Commission determines compliance, it shall is-

sue the testing laboratory license to the license applicant.

(j) A license application the Commission deems incom-

plete because of failure to address all applicable criteria and

measures, to provide requested information, or to present

truthful information in the application process shall be dis-

qualified prior to a substantive review of the submission, and

such disqualification shall be considered a final agency deci-

sion subject to judicial review pursuant to N.J.A.C. 17:30-

20.10.

(k) The Commission shall grant a license applicant the op-

portunity to cure the deficiencies in a license application and

resubmit it.

(l) The Commission shall provide notice to a denied li-

cense applicant in writing that:

1. Notice of the denial of the annual license and the

specific reason for the denial;

2. The filing fee shall be nonrefundable; and

3. The opportunity to request an administrative hearing

with the Commission.

(m) An administrative hearing pursuant to (l) above shall

take place in the Office of Administrative Law in accordance

with the Administrative Procedure Act, N.J.S.A. 52:14B-1 et

seq., and 52:14F-1 et seq., and the Uniform Administrative

Procedures Rules, N.J.A.C. 1:1.

(n) The final denial of 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.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Added (a)1; and in (e)2, (j) and (n), updated the N.J.A.C. references.

17:30-18.3 Testing laboratory license qualification

(a) A license applicant shall provide the Commission with

a complete disclosure that includes all true parties of interest.

1. The license applicant or license holder shall not at-

tempt to conceal or disguise ownership or other control

over its operations in its submissions.

(b) The Commission shall determine that a license appli-

cant or license holder is qualified to hold a testing laboratory

license where:

1. Each owner, principal, employee, or volunteer of a

testing laboratory license applicant or license holder has

submitted a criminal history background check pursuant to

N.J.A.C. 17:30-7.12 or is excused from doing so pursuant

to N.J.A.C. 17:30-18.2(b)7i;

2. No owner, principal, employee, or volunteer of a

testing laboratory license applicant or license holder has a

disqualifying conviction pursuant to N.J.A.C. 17:30-

7.12(d) without evidence of rehabilitation pursuant to

N.J.A.C. 17:30-7.12(e);

3. Each owner and principal of the testing laboratory

license applicant or license holder is eligible to be an own-

er or principal, respectively, of the license applicant or li-

cense holder in accordance with N.J.A.C. 17:30-6.8;

4. For each person requesting a determination of quali-

fication as part of a license applicant or license holder, the

license applicant or license holder has paid a background

investigation fee pursuant to N.J.A.C. 17:30-7.17; and

5. The license applicant and its owners and principals

do not:

i. Create a danger to the public health, safety, and

general welfare of the State;

ii. Distribute marijuana to minors;

iii. Share revenue with a gang or cartel;

iv. Divert marijuana from personal use or cannabis

states to other states;

v. Engage in trafficking of controlled substances or

other illegal activity; or

17:30-18.3 TREASURY—GENERAL

Supp. 3-6-23 30-82

vi. Engage in violence or the use of firearms as part

of testing laboratory operations.

cant or license holder is not qualified to hold a license where

the license applicant or license holder:

1. Does not meet the requirements at (b) above;

2. Fails to provide information, documentation, and as-

surances as required at P.L. 2021, c. 16 (N.J.S.A. 24:6I-31

et seq.), or this subchapter or as requested by the Commis-

sion, including failure to provide a required criminal histo-

ry record background check or to cooperate with the

Commission in its investigation;

3. Fails to reveal any material fact pertaining to qualifi-

cation; or

4. Supplies information that is untrue or misleading as

to a material fact pertaining to the qualification criteria for

a testing license.

(d) If a person is determined to be disqualified, such dis-

qualification shall be considered a final agency action subject

to judicial review pursuant to N.J.A.C. 17:30-20.10, and the

Commission shall provide the determination to the person in

writing, which shall include:

1. Notice of the determination of disqualification, in-

cluding when disqualification is due to a disqualifying

conviction pursuant to N.J.A.C. 17:30-7.12(d) or the de-

termination of the absence of sufficient evidence of reha-

bilitation pursuant to N.J.A.C. 17:30-7.12(e);

2. The specific reason for the disqualification, includ-

ing any conviction that constitutes the basis for the disqual-

ification pursuant to N.J.A.C. 17:30-7.12(d); and

3. Information about appeal rights pursuant to N.J.A.C.

17:30-20.10.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b)1, (d) and (d)3, updated the N.J.A.C. references.

17:30-18.3

17:30-18.4 License term; license renewal

(a) A license shall be in effect for a period of one year and

shall be renewable annually thereafter.

(b) Ninety days prior to the expiration of a testing labora-

tory license, a testing laboratory that seeks to renew the li-

cense shall submit to the Commission an application for re-

newal of the license with all required documentation and the

required fees pursuant to N.J.A.C. 17:30-18.2.

1. A testing laboratory shall update and ensure the cor-

rectness of all information submitted in previous applica-

tions for a license or otherwise on file with the Commis-

sion.

2. A testing laboratory shall submit a copy of the most

recent assessment from the accreditation body as required

at N.J.A.C. 17:30-18.5(e).

3. Failure to provide correct and current up-to-date in-

formation is grounds for denial of application for renewal

of the license.

January 1st (or the date of approval of the application, if later)

through December 31st of a given year.

(d) An applicant for renewal of a testing laboratory license

shall submit a fee of $4,000 in a check payable to the “Treas-

urer, State of New Jersey.”

(e) The Commission shall renew the license of a testing

laboratory that meets the requirements of this subchapter; the

Commission shall deny the application for renewal of the

license if the Commission determines that the facility is in

violation of the Act or this chapter.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (b) and (b)2, updated the N.J.A.C. references.

17:30-18.5 Testing laboratory inspection; authorized

conduct; ongoing material conditions

(a) No person shall operate a testing laboratory pursuant to

this subchapter without a Commission-issued license.

(b) A licensed testing laboratory is subject to inspection by

the Commission:

1. To determine the condition and calibration of any

equipment used for testing purposes; and

2. To ensure that testing is being performed in accord-

ance with N.J.S.A. 24:6I-19 and 35 and the Commission’s

accreditation requirements for licensure pursuant to this

subchapter.

boratory to sample and test cannabis items in accordance with

the Act and this chapter, as well as sample and test medical

cannabis and medical cannabis products in accordance with

the provisions of the Jake Honig Compassionate Use Medical

Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.),

upon certification or licensing pursuant to N.J.S.A. 24:6I-18.

(d) The testing laboratory shall display the license in a

conspicuous location at the front entrance to the premises of

the licensed facility at all times when the facility is engaged

in conduct authorized pursuant to N.J.S.A. 24:6I-1 et seq.,

involving cannabis.

(e) A licensed testing laboratory shall maintain third-party

accreditation from an accreditation body that requires con-

formance to the International Organization for Standardiza-

tion (ISO) and the International Electrotechnical Commission

PERSONAL USE CANNABIS RULES 17:30-19.1

30-83 Supp. 3-6-23

(IEC) general requirements for the competence of testing and

calibration laboratories (ISO/IEC 17025 standards).

1. A licensed testing laboratory shall routinely inspect,

calibrate, and maintain its equipment as required by such

accreditation body; and

2. A licensed testing laboratory shall adopt a standard

operating procedure to test cannabis and cannabis products

that is approved by such accreditation body.

(f) A licensed testing laboratory must notify the Commis-

sion about any change to the list of accreditations and certifi-

cations submitted in the testing laboratory application, includ-

ing, but not limited to, those from governing bodies, such as

the Commission, the New Jersey Department of Health, the

New Jersey Department of Environmental Protection, the

New Jersey Department of Agriculture, other similar agencies

in other states, the U.S. Food and Drug Administration, or the

U.S. Department of Agriculture.

(g) A licensed testing laboratory shall adopt a standard op-

erating procedure that provides for adequate chain of custody

controls for samples transferred to the testing laboratory dur-

ing secure transport and testing.

(h) To maintain the security of the cannabis and cannabis

product samples, a licensed testing laboratory shall:

1. Provide additional security during working hours, as

needed, to protect testing laboratory employees and canna-

bis and cannabis product samples in a manner appropriate

for the community where it operates;

2. Provide training to inform all testing laboratory em-

ployees about the cannabis-related security procedures, and

each individual employee’s security roles and responsibili-

ties;

3. Securely store cannabis and cannabis products in a

manner that prohibits sample degradation, contamination,

and tampering; and

4. Create controlled access areas for storage of canna-

bis and cannabis product samples and cannabis waste.

i. Access to controlled access areas must be limited

to testing laboratory personnel by locks, electronic badge

readers, biometric identifiers, or other secure means; and

ii. A testing laboratory standard operating proce-

dure must revoke access privileges to controlled access

areas for personnel whose employment is terminated by

the testing laboratory.

(i) As an ongoing material condition of maintaining a test-

ing laboratory license, a testing laboratory must maintain a

labor peace agreement with a bona fide labor organization.

(j) A licensed testing laboratory may perform testing on

goods unrelated to cannabis, as long as:

1. The licensed testing laboratory complies with all

testing laboratory requirements in this chapter.

2. The licensed testing laboratory segregates cannabis

and cannabis product testing from other non-cannabis-

related testing performed at the facility, stores cannabis and

cannabis products separately and distinctly from other non-

cannabis goods and follows all the security requirements at

(h) above in the areas where cannabis or cannabis products

are present.

(k) A licensed testing laboratory shall conduct an internal

audit at least once per year or in accordance with the accredit-

ing body’s requirement, whichever is more frequent.

1. The internal audit must include all of the compo-

nents required by the ISO/IEC 17025 internal audit stand-

ards.

2. Within three business days of completing the inter-

nal audit, the testing laboratory shall submit the results of

the internal audit to the Commission.

(l) A licensed testing laboratory shall not acquire or re-

ceive personal use usable cannabis or cannabis products, ex-

cept from a cannabis business in accordance with this chapter,

and shall not distribute, sell, or dispense cannabis or cannabis

products, except that:

1. A testing laboratory may receive and test samples of

usable cannabis or cannabis products from a consumer and

provide a written report to the consumer for a reasonable

fee.

i. A testing laboratory may not certify samples

from a consumer for resale or transfer to another person,

ATC, or cannabis business; and

2. A testing laboratory may receive samples of usable

cannabis or cannabis products from a cannabis business

and may provide additional optional research and devel-

opment testing.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (c), inserted a comma following “24:6I-1”; in (h)1, inserted a

comma twice; in (j)2, deleted a comma following “goods”; and rewrote

(l).

——————

SUBCHAPTER 19. PERSONAL USE USABLE CANNA-

BIS AND CANNABIS PRODUCT TESTING PRO-

CEDURES

17:30-18.5

17:30-19.1 Commission quality control testing; sample

collection; chain of custody

(a) To ensure the safety of consumers, a cannabis business

shall provide upon request of the Commission one or more

samples of usable cannabis or cannabis product to the Com-

mission during announced and unannounced inspections for

product quality control, including, but not limited to:

17:30-19.1 TREASURY—GENERAL

Supp. 3-6-23 30-84

1. A sample from a batch of usable cannabis from the

first harvest of a new cultivar; and

2. A unit or units of packaged usable cannabis or can-

nabis product available for distribution to consumers.

(b) To implement the requirements at (a) above, the Com-

mission shall:

1. Collect soil and plant samples and samples of usable

cannabis or cannabis product from the cannabis business,

as applicable;

2. Place the license number of the cannabis business on

each sample container;

3. Label the sample containers with the date of the

sampling, the name of the cultivar/strain, and the quantity

of its contents by weight;

4. Seal the sample containers;

5. Have a member of the cannabis business staff and

Commission staff initial each sample container; and

6. Have Commission staff transport all sample contain-

ers in a lockable box to the New Jersey Department of

Health’s Public Health and Environmental Laboratories

(PHEL) or a licensed testing laboratory for testing.

chain of custody of any sample taken in accordance with this

chapter.

1. The Commission shall provide a receipt for any col-

lected sample to the license holder representative of the

cannabis business.

2. The Commission shall maintain an accounting of all

collected sample containers for control purposes, including

the Medicinal Marijuana Testing Laboratories Specimen

Submittal form, incorporated herein by reference, as

amended or supplemented, and found on its website at

https://www.nj.gov/health/phel/documents/ECLS/CTL-1.

pdf.

(d) The Commission shall use PHEL or a licensed testing

laboratory to test samples.

1. Sample testing may include tests for, among other

things, cannabinoid content, the presence of pests, mold

and mycotoxins, mildew, heavy metals, and pesticides to

ensure the accuracy of labeling.

2. PHEL shall conduct testing according to the follow-

ing “Laboratory SOPs for Medicinal Marijuana,” which are

incorporated herein by reference, as amended or supple-

mented, and found on its website at https://www.nj.gov/

health/phel/env-testing/chemical-terrorism-lab/:

i. Standard Operation Procedure for Qualitative

and Quantitative Determination of Major Cannabinoids

in Cannabis Plant Material;

ii. Standard Operating Procedure for the Screening

of Marijuana for Toxic Metals by Inductively Coupled

Plasma Mass Spectrometry; and

iii. Assessing Presence of Aflatoxins and Ochratoxin

A in Medical Marijuana Using HPLC.

3. The Department shall issue written reports of the re-

sults of its testing to the cannabis business.

4. The cannabis business shall pay the expenses for the

testing.

(e) The first harvest of a new cultivar shall be segregated

until the cannabis business receives the written report that the

sample meets specifications, and the batch may be released

for distribution.

(f) A written report that the sample does not meet specifi-

cations shall yield further testing by PHEL or a testing labora-

tory of that batch or lot and other batches from the same

growth area or lots from the same manufacturing area and

may yield a recall and destruction of the usable cannabis or

cannabis products, as determined by the Commission.

17:30-19.1

17:30-19.2 Testing of every batch and lot

(a) In addition to testing of usable cannabis and cannabis

products by the Commission in accordance with N.J.A.C.

17:30-19.1, each batch of usable cannabis and each lot of

cannabis products manufactured shall be tested in accordance

with the requirements at N.J.S.A. 24:6I-35 and this subchap-

ter by a testing laboratory licensed pursuant to N.J.S.A. 24:6I-

18 and N.J.A.C. 17:30-18.

(b) Before any usable cannabis or cannabis product is

packaged and prepared for distribution pursuant to N.J.A.C.

17:30-16.2, they shall be sampled and tested by a licensed

testing laboratory and then the cannabis business shall hold

them in secure, segregated storage.

1. After the cannabis business receives a written report

from a licensed testing laboratory confirming the repre-

sentative sample meets specifications, the cannabis busi-

ness may release the usable cannabis or cannabis products

for distribution.

any test performed pursuant to this subchapter, which the

cannabis business or consumer of cannabis, as applicable,

shall pay.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), substituted “at” for “of”; and in (a) and (b), updated the

N.J.A.C. references.

17:30-19.3 Testing laboratory sample collection; chain

of custody

(a) Upon request of a cannabis business when a batch or

lot is ready for testing, a testing laboratory employee shall

PERSONAL USE CANNABIS RULES 17:30-19.3

30-85 Supp. 3-6-23

initiate a sample collection for all applicable tests before

packaging:

1. After usable cannabis is in its final usable form, in-

cluding placement of usable cannabis in a pre-roll, ready to

be manufactured into a cannabis product, or ready to be

distributed for personal use; or

2. After a cannabis product is in its final processed

form, including placement of vaporized formulation in its

electronic smoking device or oil in its pressurized metered

dose inhaler, or ready to be distributed for personal use.

(b) A testing laboratory employee shall collect a repre-

sentative initial sample and a representative retention sample

from each batch of usable cannabis from a cannabis business

that cultivates and from each lot of cannabis products from a

cannabis business that manufactures according to a statistical-

ly valid sampling method.

1. A cannabis business employee shall be physically

present to observe the testing laboratory employee collect

any sample.

2. The cannabis business employee shall not touch the

usable cannabis, cannabis product, or the sampling equip-

ment while the testing laboratory employee is collecting

the samples.

3. The testing laboratory employee shall collect a rep-

resentative initial sample and a representative retention

sample of each batch or lot by removing increment samples

of material or units from throughout the container(s) in the

batch or lot in the manner required at (b)3i and ii below.

i. Where appropriate for the purpose of the sample

and the nature of the material being sampled, sample

portions are removed from the top, middle, and bottom

of containers.

ii. Containers from which samples have been taken

shall be marked to indicate that samples have been re-

moved from them.

4. A representative initial sample of usable cannabis

shall be.5 percent of a batch or lot, with the following in-

crement sample amounts:

i. Less than or equal to 10 pounds of usable canna-

bis, five increment samples;

ii. 10.1-20 pounds of usable cannabis, 10 increment

samples;

iii. 20.1-30 pounds of usable cannabis, 15 increment

samples;

iv. 30.1-40 pounds of usable cannabis, 20 increment

samples;

v. 40.1-50 pounds of usable cannabis, 25 increment

samples; and

vi. 50.1-100 pounds of usable cannabis, 30 incre-

ment samples.

5. A representative initial sample of non-

homogenizable cannabis product shall be:

i. 50 or less total units, two increment units;

ii. 51-150 total units, three increment units;

iii. 151-500 total units, five increment units;

iv. 501-1,200 total units, eight increment units;

v. 1,201-3,200 total units, 16 increment units;

vi. 3,201-10,000 total units, 40 increment units; and

vii. 10,001-35,000 total units, 125 increment units.

6. A representative retention sample shall be two times

the amounts listed for representative initial samples of a

batch or lot at (b)4 and 5 above.

7. When collecting representative samples, the testing

laboratory employee shall:

i. Clean, open, sample, and reseal the containers in

a manner designed to prevent introduction of contami-

nants; and

ii. Use sterile equipment and aseptic sampling tech-

niques when necessary.

tory employee shall place the cannabis business license num-

ber and affix a label with a description and the quantity of the

content on each sample container.

(d) The testing laboratory employee shall seal each sample

container.

(e) The cannabis business employee and the testing labora-

tory employee shall initial each sample container.

(f) The testing laboratory employee shall provide a receipt

for the collected samples to the cannabis business employee.

(g) The cannabis business employee shall record the sam-

ples removed from a batch or lot in the inventory record for

the batch or lot.

(h) The testing laboratory employee shall transfer the rep-

resentative retention samples to the cannabis business em-

ployee, who shall store them pursuant to N.J.A.C. 17:30-19.5.

(i) The testing laboratory employee shall securely

transport any usable cannabis and cannabis product repre-

sentative initial samples in a secure lockbox.

1. The testing laboratory employee shall not leave can-

nabis or cannabis products in an unattended transfer vehi-

cle, unless the vehicle is locked and equipped with an ac-

tive vehicle alarm system.

17:30-19.3 TREASURY—GENERAL

Supp. 3-6-23 30-86

2. The testing laboratory employee engaged in a trans-

fer of cannabis or cannabis products shall have access to a

secure form of communication with the testing laboratory,

such as a cellular telephone, at all times that the testing la-

boratory employee is in possession of cannabis or cannabis

products for transfer.

3. The testing laboratory employee shall carry a copy

of their Cannabis Business Identification Card when per-

forming a transfer and shall produce it upon request of

Commission staff or law enforcement officials.

4. The transfer vehicle shall be equipped with a secure

lockbox in a secured cargo area, which shall be used for the

sanitary and secure transport of cannabis or cannabis prod-

ucts.

5. The testing laboratory shall maintain current hired

and non-owned automobile liability insurance sufficient to

insure all transfer vehicles in the amount of not less than

one million dollars per occurrence or accident.

6. The testing laboratory shall ensure that transfer vehi-

cles used to transport cannabis or cannabis products bear

no markings that would either identify or indicate that the

vehicle is used to transport cannabis.

7. The testing laboratory shall ensure that transfers are

completed in a timely and efficient manner. While per-

forming transfers of cannabis or cannabis products, the

testing laboratory employee shall travel only from the

premises of the cannabis business to the testing laboratory.

The testing laboratory employee shall not deviate from the

route described in this paragraph, except in the event of

emergency, or as necessary, for rest, fuel, or vehicle repair

stops, or because road conditions make continued use of

the route or operation of the vehicle unsafe, impossible, or

impracticable.

8. The testing laboratory shall report any vehicle acci-

dents, diversions, losses, or other reportable events that oc-

cur during transfer to the Commission within seven days.

(j) At the testing laboratory, a testing laboratory employee

shall record the receipt of the samples, including the follow-

ing:

1. Name and contact information for the cannabis busi-

ness or individual who provided the samples;

2. Description of cannabis or cannabis product;

3. Batch or lot number;

4. Unique sample identifier;

5. Quantity of sample by net and gross weight or vol-

ume during sample collection;

6. Date and time of receipt of sample;

7. Testing laboratory employee who collected the sam-

ple;

8. Cannabis business employee who observed sample

collection;

9. Testing laboratory employee who received sample;

and

10. Quantity of sample by gross weight during sample

receipt.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), inserted the fourth occurrence of “a”; in (a)1, inserted “, includ-

ing placement of usable cannabis in a pre-roll,”; rewrote (b)4; in (b)5i,

substituted “50 or less” for “<50”; in (h), updated the N.J.A.C. reference;

and in (i)3, substituted “their” for “his or her”.

17:30-19.3

17:30-19.4 Testing laboratory procedures and specifica-

tions for testing usable cannabis and canna-

bis products

(a) The testing laboratory shall test the initial samples of

cannabis and cannabis product collected in accordance with

N.J.A.C. 17:30-19.3 to confirm whether the samples meet the

specifications of this section according to the standard operat-

ing procedures of the laboratory that have been approved by

the accreditation body pursuant to N.J.A.C. 17:30-18.5(e).

1. The testing laboratory shall analyze the samples ac-

cording to the Cannabis Regulatory Commission’s Testing

Guidance, available on the Commission website, except

when otherwise required by this subchapter and the Canna-

bis Regulatory Commission’s Testing Guidance, the testing

laboratory shall analyze the samples according to the most

current version of the cannabis inflorescence monograph

published by the American Herbal Pharmacopeia (AHP).

(b) If the initial sample does not meet the specifications of

this section:

1. The testing laboratory shall follow their standard op-

erating procedure to confirm or refute the original results;

and

2. The license holder may be permitted an opportunity

to remediate pursuant to N.J.S.A. 24:6I-35.a(13)(c), upon

notice to the Commission, the batch or lot from which the

failed sample was taken, which batch or lot shall be subject

to a subsequent test of a new representative sample.

itial sample for 30 days after analysis is completed. At such

time, the testing laboratory shall destroy or render unrecover-

able and unrecognizable the remains of the initial sample.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), updated the N.J.A.C. referenes; and rewrote (c).

17:30-19.5 Retention samples and stability testing

(a) A cannabis business shall properly store the retention

sample from each batch or lot released for distribution for

personal use:

PERSONAL USE CANNABIS RULES 17:30-19.6

30-87 Supp. 3-6-23

1. By using the same container in which the usable

cannabis or cannabis product is distributed;

2. Under conditions consistent with the storage condi-

tions recommended on the product label or, if no storage

conditions are recommended on the label, under ordinary

storage conditions; and

3. Undisturbed at the designated storage temperature

for the appropriate time interval.

(b) At six months and 12 months after the release of the

batch or lot, the cannabis business shall provide the testing

laboratory with a portion of the retention sample for stability

testing.

the retention sample of usable cannabis and cannabis products

for the cannabinoid content pursuant to the cannabinoid and

terpene potency subsections of the Cannabis Regulatory

Commission’s Testing Guidance to:

1. Ensure product potency and purity; and

2. Support or debunk the listed expiration date of the

batch or lot.

(d) If the stability testing debunks the listed expiration date

of the batch or lot, the cannabis business shall amend its

standard operating procedure on choosing an expiration date

for a batch or lot and base its amended standard operating

procedure on the results of stability testing.

(e) The testing laboratory shall perform stability testing of

the retention sample of usable cannabis and cannabis products

for:

1. Microbial contamination, pursuant to the microbial

contamination subsection of the Cannabis Regulatory

Commission’s Testing Guidance; and

2. Water activity, pursuant to the water activity subsec-

tion of the Cannabis Regulatory Commission’s Testing

Guidance.

(f) The testing laboratory shall perform stability testing of

the retention sample of vaporized formulation in an electronic

smoking device for heavy metals, pursuant to the heavy met-

als subsection of the Cannabis Regulatory Commission’s

Testing Guidance.

(g) The cannabis business shall report the findings of the

stability testing to the Commission, to ensure that usable can-

nabis and cannabis product purity and potency are maintained

throughout the storage process without the stored products

falling out of specification.

(h) If the sample falls out of specification, the cannabis

business shall amend its standard operating procedure for

packaging and storage and base its amended standard operat-

ing procedure on the results of the stability testing.

(i) In the case of an adverse event reported to the cannabis

business or the Commission related to cannabis or cannabis

products from the batch or lot pursuant to N.J.A.C. 17:30-

9.16, the cannabis business shall provide the testing laborato-

ry with a portion of the retention sample for confirmatory

testing by the testing laboratory.

(j) A cannabis business shall destroy the remains of the re-

tention sample, if any, rendering it unrecoverable and unrec-

ognizable, six months after the expiration of the batch or lot.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-19.6 Written reports

(a) The testing laboratory performing any testing pursuant

to this subchapter shall produce a written report detailing the

results of all testing for each representative sample and pro-

vide it to the cannabis business, or consumer, as applicable,

as well as the Commission.

(b) The written report must include:

1. The name, address, license number, and contact in-

formation of the testing laboratory;

2. The name, address, and license number of the can-

nabis business;

3. The representative sample’s batch or lot number;

4. The unique sample identifier number;

5. The form of the product;

6. The history of the representative sample, including

the date collected, the date received by the testing laborato-

ry, the analytical methods used for the test, and the date(s)

of sample analyses and corresponding testing results;

7. For cannabis, the weight of the representative sam-

ple and the total weight of the batch; for cannabis products,

the total unit count and weight of the representative sample

and the total number of units and weight of the lot;

8. The analytical methods and instrumentation used for

each test;

9. The concentrations of the cannabinoids and terpenes

listed at the cannabinoid and terpene potency subsections

of the Cannabis Regulatory Commission’s Testing Guid-

ance; and

10. The level of the contaminants listed at the visual in-

spection, water activity, harmful additives, microbial con-

tamination, mycotoxin contamination, pesticides, residual

solvents, and heavy metals subsections of the Cannabis

Regulatory Commission’s Testing Guidance and whether

that level meets specifications and should be marked

“pass,” or whether that level exceeds the levels provided

and should be marked “fail.”

17:30-19.6 TREASURY—GENERAL

Supp. 3-6-23 30-88

accuracy of the information contained in the written report

and sign and date the written report.

(d) The cannabis business must provide the written report

to any other cannabis business receiving the usable cannabis

or cannabis product. The cannabis retailer selling the usable

cannabis or cannabis product to a consumer must include a

summary of the written report.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote (b).

17:30-19.6

17:30-19.7 Testing laboratory recordkeeping

(a) The testing laboratory shall maintain documentation of

the chain of custody of samples taken.

(b) The testing laboratory shall maintain a copy of all re-

ceipts for the collected samples and written reports provided

to cannabis businesses and consumers.

all collected samples for control purposes for at least five

years. This shall include:

1. Name of the cannabis business or individual who re-

quested the testing;

2. Date of the order and date of the testing;

3. Form of product and strain, if applicable;

4. Weight of sample;

5. All written reports;

6. Further correspondence with the cannabis business,

qualifying patient, or primary caregiver regarding the re-

sults of the analysis;

7. All records of destruction of the sample; and

8. The price charged to the cannabis business or indi-

vidual who requested the testing for the testing services

provided.

(d) The testing laboratory shall maintain records of inspec-

tion, calibration, and maintenance of all equipment. These

records shall include:

1. The date of the inspection, calibration, or mainte-

nance;

2. The person who performed the inspection, calibra-

tion, or maintenance;

3. The standard operating procedure used for the in-

spection, calibration, or maintenance;

4. Any deviations from the standard operating proce-

dure;

5. If the inspection, calibration, or maintenance in-

volves a repair:

i. How and when the need for the repair was dis-

covered;

ii. The nature of the repair;

iii. Post-repair certification that the equipment is in

proper working order; and

iv. Any corrective action made to standard operation

procedures in response to the repair; and

6. The result of the inspection, calibration, or mainte-

nance.

17:30-19.8 Testing laboratory testing requirements tran-

sition period

(a) The requirements at N.J.A.C. 17:30-19.2 through 19.7

shall take effect at such time as the Commission certifies that

a sufficient number of testing laboratories have been licensed

pursuant to N.J.S.A. 24:6I-18 or 35 and N.J.A.C. 17:30-18 to

ensure that all personal use usable cannabis and cannabis

products can be promptly tested consistent with the require-

ments of this subchapter without disrupting patient access to

medical cannabis.

1. The Commission shall publish in the New Jersey

testing laboratories have been licensed.

2. Once the requirements at N.J.A.C. 17:30-19.2

through 19.7 have taken effect, a licensed testing laborato-

ry shall not make operational changes that reduce the

prompt testing of medical cannabis and medical cannabis

products, thereby disrupting patient access to medical can-

nabis, in order to test samples of personal use usable can-

nabis and cannabis products.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Updated the N.J.A.C. references throughout.

——————

SUBCHAPTER 20. MONITORING, ENFORCEMENT

ACTIONS, AND APPEAL RIGHTS

17:30-20.1 Purpose

(a) This subchapter establishes the procedures for monitor-

ing, inspecting, and assessing premises and records of license

holders pursuant to this chapter, and the procedures govern-

ing the issuance of notices of violation, the assessment of

sanctions or penalties, including civil monetary penalties and

the denial, suspension, or revocation of any license issued

pursuant to the Act. This subchapter also governs the proce-

dures for the submission and review and grant or denial of

any requests for adjudicatory hearings.

PERSONAL USE CANNABIS RULES 17:30-20.3

30-89 Supp. 3-6-23

(b) The Commission may require license holder compli-

ance with the Act and may make such investigations as it

shall deem proper in the administration of the Act, and any

other laws that may hereafter be enacted concerning cannabis.

1. The Commission may appoint auditors, investiga-

tors, and other employees that the Commission considers

necessary to enforce its powers and perform such duties.

17:30-20.2 Definitions

The following words and terms, when used in this subchap-

ter, shall have the following meanings unless the context

clearly indicates otherwise:

“Concurrent violations” means violations that occur within

the same 24-hour period. The penalties for concurrent viola-

tions shall generally be calculated based on the same level of

violation.

“Major license violations” mean violations that affect pub-

lic health or safety or betray the public trust and include, but

are not limited to:

1. Selling usable cannabis or cannabis products con-

taining any other Federally controlled substance, including,

but not limited to, opioids, stimulants, or hallucinogens;

2. Using prohibited agricultural chemicals that pose a

threat to the health of consumers, or the health of individu-

als employed by a cannabis business if not handled in ac-

cordance with the chemical manufacturer’s instructions;

3. Marketing, selling, distributing, selling, or transfer-

ring usable cannabis or cannabis products to a person under

21 years of age or not approved by the Commission pursu-

ant to the Act and this chapter;

4. Selling or transporting cannabis items outside New

Jersey in violation of Federal law;

5. Destroying, damaging, altering, tampering with, re-

moving, or concealing potential evidence of a violation

pursuant to this subsection, attempting to do so, or asking

or encouraging another person to do so;

6. Submission of fraudulent, false, or misleading in-

formation as to a material fact to the Commission, or falsi-

fying any record required to be maintained by the cannabis

business;

7. Involving a person in the operation of a cannabis

business or testing laboratory who has not been authorized

by the Commission to be involved in such operations;

8. Diverting any usable or unusable cannabis, cannabis

product, or other item subject to regulation by the Commis-

sion to the illicit market;

9. Operating a cannabis business or testing laboratory

in a manner that adversely affects the public health, safety,

or general welfare of consumers, the individuals working

in the cannabis business or testing laboratory, or the neigh-

borhood surrounding its premises;

10. Having had three or more instances of failing to have

on the premises or at the administrative office, at all times

during the hours of operation and periods of apparent activ-

ity, a Cannabis Business Identification Cardholder who is

authorized to allow and cooperate with Commission re-

quests to inspect the premises or administrative office;

11. Refusing to permit the Commission to inspect the

premises or administrative office during hours of operation

or periods of apparent activity; or

12. Other conduct that shows willful or reckless disre-

gard for the health or personal safety of any person.

“Successive violations” means two or more violations of

the same duty or responsibility that occur outside of the same

24-hour period. The penalties for successive violations shall

generally be calculated based upon the number of violations

occurring within a two-year period from the date of disposi-

tion of any prior violation(s).

“Violation” means each breach of duty or responsibility

imposed by the Act or this chapter.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-20.3 Onsite assessment

(a) A cannabis business or testing laboratory shall permit

and facilitate scheduled and unscheduled onsite assessments,

at any time without notice, by the Commission, or its design-

ee, as a condition of obtaining and maintaining licensure.

1. The cannabis business or testing laboratory shall al-

low the Commission, or its designee, access to its premises

or administrative office to conduct the onsite assessment.

2. A refusal to allow entry by the Commission, or its

designee, or to cooperate with an onsite assessment is

grounds for penalty, including revocation or denial of a li-

cense and for a referral of the matter to State law enforce-

ment agencies.

3. The Commission shall not be required to obtain a

search warrant to conduct an investigation or search of the

cannabis business premises or administrative office.

(b) During an onsite assessment, a cannabis business or

testing laboratory shall:

1. Demonstrate compliance with the Commission’s

standards as set forth in this chapter for the conduct of

business or the methods for which licensure is sought or

granted; and

2. Provide the Commission, or the Commission’s de-

signee, immediate and complete access to any material and

information, including sales and other financial records.

17:30-20.3 TREASURY—GENERAL

Supp. 3-6-23 30-90

proof that a person performing work at the cannabis business

or testing laboratory premises or administrative office is at

least 21 years of age.

1. If the person does not provide the Commission with

acceptable proof of age upon request, the Commission may

require the person to immediately cease any activity and

leave the premises or administrative office until the Com-

mission receives acceptable proof of age.

(d) An onsite assessment may include, but not be limited

to:

1. The inspection and examination of the premises or

administrative office, including any buildings, for the pur-

pose of determining compliance with the Act and this

chapter;

2. The review or audit of all documents, records,

books, accounts, and papers of the license holder on the

cannabis business premises or administrative office, and

the making and retaining of copies and/or extracts from

such documents, records, books, accounts, and papers;

3. The use of any computer system at the cannabis

business or testing laboratory to examine electronic data;

4. The reproduction and retention of any document or

electronic data in the form of a printout or other output;

5. The examination and collection of samples of any

cannabis item found at the cannabis business or testing la-

boratory;

6. The seizure and detention of any cannabis item or

thing believed to contain cannabis found at the cannabis

business or testing laboratory, provided that:

i. If the Commission makes a seizure, it shall take

such measures as are reasonable in the circumstances to

give to the owner or other person in charge of the place

where the seizure occurs notice of the seizure;

ii. If the Commission determines that the detention

of the substance or thing seized is no longer necessary to

ensure compliance with applicable law and the cannabis

business or testing laboratory license, the Commission

shall notify, in writing, the license holder of that deter-

mination and shall return the substance or thing to the li-

cense holder, upon the license holder issuing a receipt to

the Commission for the return of the substance or thing;

and

iii. The Commission shall maintain documentation

of the chain of custody of seized substances or things, in

accordance with N.J.A.C. 17:30-19.1; and

7. The inspection of a testing laboratory to determine

the condition and calibration of any equipment used for

testing purposes and to ensure that testing is being per-

formed in accordance with the requirements at N.J.S.A.

24:6I-19 and N.J.A.C. 17:30-19.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, (a)3, (c), (c)1, (d)1 and (d)2, inserted “or administrative of-

fice”; and in (d)6iii and (d)7, updated the N.J.A.C. references.

17:30-20.3

17:30-20.4 Notice of violation; corrective action

(a) During an onsite assessment, a review of financial rec-

ords, or other Commission review of the license holder and

its operations, if the Commission identifies a violation of the

Act or this chapter, the Commission shall provide notice of

the violation, including an official written report of the find-

ings and the nature of the violation, to the cannabis business

or testing laboratory within seven business days following the

onsite assessment or other identification of the violation.

1. Such notice may be provided by service of written

notice or the receipt of a written notice from an investigat-

ing officer that a violation has occurred, which may be pre-

sented to the license holder’s owner, principal, or manager

at the licensed premises or administrative office, or through

other reasonable form of notice, such as certified mail or

personal service pursuant to N.J. Ct. R. 4:4-4.

(b) Unless otherwise specified by the Commission, within

20 business days of receipt of the notice of violation pursuant

to (a) above, the cannabis business or testing laboratory shall:

1. Correct the violation(s); and

2. Notify the Commission, in writing, with a postmark

date that is within 20 business days of the date of receipt of

the notice of violation, of any corrective actions taken to

correct the violations, and the date of implementation of

such corrective actions.

be deemed corrected until the Commission verifies, in writ-

ing, within seven calendar days of receiving notice of correc-

tive action pursuant to (b) above that the corrective action is

satisfactory.

(d) If the violation identified pursuant to (a) above has not

been corrected in accordance with (b) above, the Commission

may, in its discretion, issue a notice of proposed suspension

or revocation to the license holder and seek to revoke the

cannabis business license in accordance with N.J.A.C. 17:30-

20.8.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a)1, inserted “or administrative office”; in (b)1, inserted “and”;

and in (d), inserted “suspension or” and updated the N.J.A.C. reference.

17:30-20.5 Enforcement action and sanctions for non-

compliance

(a) In response to a violation of any provision of the Act or

this chapter, the Commission is authorized to take enforce-

ment action or impose sanctions upon a license holder. Sanc-

tions may include, but are not limited to, civil monetary pen-

alties; suspension, revocation, non-renewal, or denial of a

PERSONAL USE CANNABIS RULES 17:30-20.6

30-91 Supp. 3-6-23

license; referral to State or local law enforcement, pursuant to

N.J.A.C. 17:30-20.6, 20.7, and 20.8; or any combination

thereof.

1. The Commission shall refer complaints involving al-

leged criminal activity made against a cannabis business,

testing laboratory, or any personnel thereof to the appropri-

ate State or local law enforcement agency.

(b) The Commission may, in its discretion, impose multi-

ple enforcement actions or sanctions pursuant to the Act and

this chapter to be applied concurrently or consecutively.

made until a five-day notice of enforcement action against the

licensee shall have been given by the Commission to the li-

censee personally, or by certified mail, return receipt request-

ed, and ordinary mail, and reasonable opportunity to be heard

thereon afforded to the licensee. The notice shall set forth the

specific violations, charges, or reasons for the action.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

In (a), updated the N.J.A.C. references.

17:30-20.6 Civil monetary penalties; summary proceed-

ings

(a) This section sets forth civil monetary penalties for vio-

lations of the Act or this chapter and enforcement procedures

for imposing and collecting civil monetary penalties by the

Commission.

(b) A monetary penalty imposed by the Commission on a

license holder pursuant to this subchapter may not exceed

$500,000 per violation. Penalties may be imposed on a li-

cense holder as follows:

1. Not more than $500,000 per major license violation;

and

2. Not more than $50,000 per any other license viola-

tion.

stitute a separate incident for purposes of calculating the

number of violations.

(d) The Commission may impose greater penalties for suc-

cessive violations up to the maximum amounts set forth at (b)

above.

(e) The penalty for a subsequent violation shall only be

imposed if the license holder has been notified of the prior

violation or violations.

1. Such notice may be provided by service of written

notice or the receipt of a written notice from an investigat-

ing officer that a violation has occurred, which may be pre-

sented to the license holder’s owner, principal, or manager

at the licensed premises or administrative office, or other

reasonable form of notice such as certified mail or personal

service pursuant to N.J. Ct. R. 4:4-4.

2. If violations are discovered during an undercover or

unannounced inspection or onsite assessment, then no no-

tice of any prior violation is necessary to impose the penal-

ty for a subsequent violation.

(f) Notwithstanding anything in this section, the Commis-

sion may, in the Commission’s sole discretion, consider addi-

tional factors in determining the penalty for each violation.

Such factors may include, but are not limited to:

1. Any prior violations that the license holder has ad-

mitted to or was found to have engaged in;

2. Good faith measures by the license holder to self-

report or prevent the violation;

3. The license holder’s record of compliance with the

laws and rules pertaining to personal use cannabis;

4. Corrective action(s) taken by the license holder re-

lated to the current violation or prior violations;

5. Willfulness and deliberateness of the violation;

6. Likelihood of reoccurrence of the violation; and

7. Violations involving damage or danger to the life,

health, welfare, safety, or property of any person.

(g) Any penalties, costs, and/or fees pursuant to this sub-

section may be imposed and collected by the Commission in

a summary proceeding pursuant to the Penalty Enforcement

Law of 1999, P.L. 1999, c. 274 (N.J.S.A. 2A:58-10 et seq.).

(h) The Commission may additionally seek reimbursement

for the costs of the State, including, but not limited to:

1. Costs of investigation, expert witness fees and costs,

attorney fees and costs, and transcript costs for violations;

and

2. Costs of cleaning up, mitigating, or remedying any

environmental damage caused by a cannabis business or

testing laboratory.

(i) The license holder may request an adjudicatory hearing

pursuant to the Administrative Procedure Act, N.J.S.A.

52:14B-1 et seq., and 52:14F-1 et seq., to contest the Com-

mission’s imposition of a civil monetary penalty for any li-

cense violation within 14 days of receipt of the notice of civil

monetary penalty.

(j) If the license holder requests an adjudicatory hearing

pursuant to (i) above, the Commission shall arrange for a

hearing to be conducted by the Commission and a final agen-

cy decision shall be issued after the hearing by the Commis-

sion.

1. If the Commission affirms the civil monetary penal-

ty, it shall become final.

17:30-20.6 TREASURY—GENERAL

Supp. 3-6-23 30-92

(k) The cannabis business may, pursuant to N.J.A.C.

17:30-20.10, apply for injunctive relief against the Commis-

sion’s civil monetary penalty in the New Jersey Superior

Court, Appellate Division.

Amended by R.2023 d.034, effective March 6, 2023.

See: 54 N.J.R. 1470(a), 55 N.J.R. 402(a).

Rewrote the section.

17:30-20.6

17:30-20.7 Classification of violations

(a) Violations shall be categorized as follows:

1. Category I, which is the exhibition of a pattern and

practice of violating the requirements of the rules, posing a

serious risk of harm to the health, safety, or welfare of con-

sumers or personnel;

2. Category II, which is the failure to comply with ad-

ministrative requirements, such that the licensee or permit-

tee poses an immediate and serious risk of harm or actual

harm to the health, safety, or welfare of consumers, per-

sonnel, or the general public, including, but not limited to,

transfer of cannabis to a person under 21 years of age;

3. Category III, which is the submission of fraudulent,

false, or misleading information, as to a material fact, to

the Commission, or falsifying or concealing any record re-

quired to be maintained by the license holder;

4. Category IV, which is the failure of any owner, prin-

cipal, management services contractor, employee, or vol-

unteer of a cannabis business license holder or testing la-

boratory to register with the Commission and be issued a

Cannabis Business Identification Card; or failure to com-

plete training course, or failure to be in physical possession

of their Cannabis Business Identification Card while acting

in the course of their duties; and

5. Category V, which shall consist of other violations

of the Commission’s rules, or violations of valid ordinanc-

es established by municipalities that do not constitute a ma-

jor violation.

(b) The Commission shall issue sanctions for violations of

this chapter that account for the particular circumstances of

the violation. The Commission shall consider, at a minimum,

issuing the following sanctions for violations: