Marijuana Cultivation Facilities: What You Need to Know
Our recent trend in article submissions may take you by surprise. Why the sudden interest in cannabis? Proposed changes in marijuana laws have been around for quite a while. That said, the previous administration was completely against legalizing pot. Meanwhile, Governor Murphy seems prepared to enable cannabis laws. This would include provisions concerning marijuana cultivation facilities.
According to the bill proposed by the State Assembly, a marijuana cultivation facility is “an entity licensed to cultivate marijuana and sell marijuana to marijuana producers, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities.” Going forward, some companies should achieve marijuana retail status and will, therefore, be able to purchase weed from a cultivation facility.
Meanwhile, marijuana cultivation facilities are prohibited from selling to consumers. Businesses that set up as marijuana cultivation facilities are required to secure Class 1 Marijuana Producer-Processor licenses. Of course, this all depends upon passage of the proposed bills before both Houses.
Proposed Licensing Requirements
Recreational cannabis dispensary and other types of related licenses are not available yet. However, some requirements seem evident. For example, in order to qualify for a license, the proposed license holder will need to be at least 21 years of age. There will also be requirements concerning fingerprinting and criminal background checks. It appears that licenses will be issued on an annual basis.
According to one news article, many anticipate that New Jersey will be a difficult place to go into the cannabis business. Although there may be up to 350 dispensaries opened up, all will go through extreme scrutiny. This is not the case for license holders in Colorado or Oregon. Approvals are made by local municipalities.
However, let’s get back to marijuana cultivating facilities. These may be an ideal business for those who do not wish to deal with the general public – but see the benefit of growing cannabis. Currently, the largest company involved in the cultivation and processing of medical marijuana is AmeriCann, Inc.
AmeriCann is a Colorado-based company and one of the first to enter the market. Last year, they announced receipt of $10 million for use in building a cultivation facility in Massachusetts. The company has made no formal announcements of whether it would open up cultivation facilities in New Jersey.
Meanwhile, federal prohibition still exists when it comes to marijuana. Even if the new law goes through, there is a chance that cultivators could find themselves at risk. At the very least, it is critical to be in compliance with state laws once they go into effect. Some of the legal issues for consideration include:
- Licensing requirements
- Business entity structure
- Zoning laws
- Location of the Proposed Facility
Financing may become a concern when it comes to marijuana cultivating facilities. Federally insured banks have expressed reluctance to do business with any companies involved in marijuana-based enterprises.
Do you have interest in setting up a marijuana cultivating facility? If, and when the new laws go through, you’ll need cutting-edge information. Contact the Law Offices of Anthony Carbone to see how we can help you.