New Jersey Cannabis Dispensaries Can Now Apply for Consumption Lounge Licenses

By Jennifer Cabrera, Steve Pemberton

Jan 13, 2025

New Jersey Cannabis Regulatory Commission Begins Accepting Consumption Area Endorsement Applications

The New Jersey Cannabis Regulatory Commission (CRC) began accepting applications for cannabis consumption area endorsements on January 2, 2025. The Commissioners adopted the Notice of Application Acceptance for cannabis consumption areas at the December 12, 2024 meeting, where Commissioner Maria Del Cid-Kosso stressed that applicants must mind local considerations and ensure ADA compliance.

Applications will be accepted in the licensing portal on the following timeline:

  • On January 2, 2025 at 9 a.m., the CRC began accepting applications from Social Equity applicants.
  • On April 2, 2025 at 9 a.m., the CRC will begin accepting applications from all other microbusinesses and Diversely-Owned applicants.
  • On July 2, 2025 at 9 a.m., the CRC will begin accepting applications from all other applicants.

There is no deadline for application submission, and the CRC will review applications on a rolling basis.

What is a New Jersey Cannabis Consumption Area Endorsement?

A consumption area endorsement allows existing New Jersey dispensaries (both medicinal and personal use) to offer their patrons a space to consume cannabis at the licensed premises—either in an “indoor” or “outdoor” cannabis consumption area.

An entity may operate only one cannabis consumption area, regardless of the number of Class 5 licenses and/or medicinal cannabis dispensary permits the entity holds.

Under current CRC regulations, cannabis retailers are not permitted to sell food, beverages, alcohol, or tobacco. Patrons at a consumption area are allowed to accept delivery of food at a consumption area pursuant to NJAC 17:30-9.5, but such products cannot be sold by the Class 5 licensed retailer. The New Jersey Legislature is considering potential changes regarding the sale of food and beverages in consumption areas. Learn more in the “Looking Ahead” section below.

Application Requirements

To receive approval, consumption area endorsement applicants must:

  • Demonstrate municipal approval on a CRC-provided form
  • Provide a compliant business and operating plan
  • Provide detailed floor plans for the premises, including structural and ventilation details
  • Submit SOPs covering:
    • Transfer of items from the retail area to the cannabis consumption area
    • Providing information regarding safe consumption
    • Age verification
    • Destroying remaining unconsumed cannabis and/or providing an exit package that complies with N.J.A.C. § 17:30-16.2 for individuals to store their unused cannabis
    • “Good faith efforts” to ensure consumption of only regulated cannabis in the cannabis consumption area, which can include a prohibition on outside product
    • Emergency procedures
  • Pay the $200 application submission fee

What Fees are Associated with this Endorsement?

Along with the $200 application fee, applicants must pay an $800 approval fee if their social consumption area endorsement application is approved. The initial licensing and renewal fees are $5,000 for a standard (non-microbusiness) Class 5 Retailer / Expanded ATC and $1,000 for a microbusiness.

Municipal Approvals: Community Support is Critical!

As with other cannabis license types, local support is critical to success in New Jersey. Many municipalities that otherwise allow cannabis retail have restricted consumption areas, so be sure to check local ordinances and reach out to municipal officials before pursuing this endorsement. 

Looking Ahead

The social consumption endorsement is an exciting development that allows New Jersey cannabis dispensaries a way to differentiate their business from competitors and offer a new benefit for customers.

Stay tuned! The New Jersey Legislature is currently considering bills introduced last autumn (A4760/S3734), which would permit limited sales of food and beverages and unlimited sales of coffee and water at cannabis dispensaries. Our team is tracking this bill, which could potentially have game-changing effects on the New Jersey cannabis industry.

Please reach out to Vicente’s New Jersey attorneys at newjersey@vicentellp.com if you have any questions about the social consumption endorsement or need assistance with your application. 

The content and links provided on this page are for informational purposes only and not for the purpose of providing legal or tax advice. Viewing this page does not establish an attorney-client relationship. You should consult with a qualified legal professional for advice regarding any particular issue or problem. The contents of this page may be considered attorney advertising under certain rules of professional conduct.