NJ Cannabis License Types: Social Equity & Diversely-Owned Businesses Apply on Sept 27th!

by Roger Tower on September 11, 2023

Read our latest breakdown of the New Jersey license types and application information.

New Jersey will be granting Social Equity and Diversely-Owned Businesses early access to the
application process. Read ahead to find out if you qualify to get a head start in applying for one of the
newly available wholesale, distribution, or delivery licenses in the state.

Our experts are available to help source viable properties and produce a cannabis license application in New Jersey with a very high success probability. Contact us to Apply in NJ!

Intro to New License Classes in NJ

In a significant milestone for the burgeoning cannabis industry in New Jersey, the state’s Cannabis Regulatory Commission (NJ-CRC) is set to open its doors to prospective entrepreneurs and businesses seeking licenses for wholesale, distribution, and delivery of recreational cannabis.

Starting September 27, 2023, the NJ-CRC will commence the application process, ushering in a new era of opportunities within the state’s dynamic cannabis market. 

The launch of these new cannabis business license classes represents a significant step in the continued growth and diversification of New Jersey’s cannabis industry,” said Commission Chairwoman Dianna Houenou. “We now have more medicinal and recreational businesses open, so applicants for these additional license classes have a more robust industry to serve. We are committed to fostering inclusivity, empowering local communities, and providing opportunities for those typically underrepresented who want to enter the cannabis industry.”

Jeff Brown, executive director of the NJ-CRC, noted, “Now that New Jersey’s market is on the cusp of 50 operational cannabis retailers, opening up applications for delivery services, wholesalers, and distributors will help New Jersey’s market serve consumers better.”

What New Licenses are Available in NJ?

New applicants or existing operators looking to integrate their cannabis business vertically will be able to apply for business licenses in the three additional classes to join New Jersey’s burgeoning cannabis industry.

• A Class 3 Cannabis Wholesale license allows the holder to store, buy, and sell bulk cannabis and cannabis products.
• A Class 4 Cannabis Distribution license allows the holder to transport bulk cannabis and cannabis products between cannabis cultivators, manufacturers, or retailers within New Jersey.
• A Class 6 Cannabis Delivery license allows the holder to transport retail-purchased cannabis and cannabis products to consumers.

Timeline and Application Window in NJ: Social Equity and Diversely-Owned Businesses will be given priority review and approval as the application opens for an exclusive 90-day period – from September 27, 2023, to December 26, 2023.

While still accepting applications from Social Equity Businesses, applications from Diversely-Owned Businesses will begin to be accepted for another 90-day period from December 27, 2023, to March 26, 2024. Beginning on March 27, 2024, the application process will open for all other applicants.

NJ Social Equity Qualifications

“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:

• At the time the initial application is submitted, have lived in an economically disadvantaged area for five of the 10 preceding years; and
• Are, at the time the initial application is submitted 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:

• At least two marijuana- or hashish-related disorderly persons offenses; or
• At least one marijuana- or hashish-related indictable offense.

A social equity business shall submit, in its cannabis business license application or renewal application, documentation 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 above.

N.J. Admin. Code § 17:30-6.6

Diversely-Owned Business Qualifications

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 business 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:

• At least 51 percent of the ownership interest is held by persons who are minorities; and
• 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 business 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:

• At least 51 percent of the ownership interest is held by persons who are women; and
• 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 veteran-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:

• At least 51 percent of the ownership interest and control is held by persons who are disabled veterans; or
• The business has been officially verified by the U.S. Department of Veterans Affairs as a service-disabled veteran-owned small business.

N.J. Admin. Code § 17:30-6.4

Webinar by NJ-CRC on September 14, 2023

To ensure a seamless and informed application process, the NJ-CRC has scheduled a comprehensive webinar on September 14, 2023. This event is designed to serve as a vital resource, providing invaluable insights into the intricacies of the application requirements and procedures. As New Jersey takes a monumental step towards a regulated cannabis landscape, this webinar stands as a cornerstone for aspiring stakeholders, offering them a roadmap to navigate the regulatory landscape and contribute to the state’s evolving cannabis industry.

View Webinar Here – https://www.nj.gov/cannabis/resources/webinars/

NJ License Processing Info:

License applications will be accepted and reviewed on a rolling basis until indicated otherwise. Social Equity Businesses, Diversely-Owned Businesses, Impact Zone Businesses, and applications that receive bonus points will be afforded priority review, scoring, and approval.

Recreational cannabis businesses may integrate vertically. Vertical integration allows operators to hold any combination of a cultivator license, a manufacturer license, a retailer license, and a delivery service license simultaneously or hold a wholesale and a distributor license simultaneously. All recreational license holders can have only one business in each class.

There is no established limit on the number of cannabis business licenses available statewide.

Local Approval by Each Jurisdiction in New Jersey:

Each city, town, township, village, or borough is responsible for establishing its own rules for getting local approval to operate a cannabis business in the jurisdiction. In order to get final state approval, applicants must also receive proof of support from your local jurisdiction via a resolution of support from the governing body of that local jurisdiction.

Research and Prepare Your Application in New Jersey

Contact us to get more information on which jurisdictions allow each cannabis use and for expert assistance in preparing your application to best ensure local and state approval.