NEW JERSEY Social Equity Licensing

Social Equity Business: owned by people who have lived in an Economically Disadvantaged Area of the state -OR- who have convictions for cannabis-related offenses (expunged or not), as defined per NJAC 17:30-6.6, must meet one of the following 2 criteria:

1. More than 50% of the ownership interest of the license applicant or license holder is held by one or more persons that demonstrate one of the following criteria:
   1. At the time the initial application is submitted, have lived in an economically disadvantaged area for five of the 10 preceding years; and
   2. At the time the initial application is submitted and based on the preceding year’s income, a household income that is 80% 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% 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:
   2. At least two marijuana- or hashish-related disorderly persons offenses; or
   3. At least one marijuana- or hashish-related indictable offense.

1. Social Equity Businesses, ordered by first in time, that:
   1. Have submitted a conditional license application for a microbusiness;

So for example, qualifications for an applicant for this category include:

1. Social Equity: 51% owned by people who have lived in economically disadvantaged areas of the state or who have past convictions for cannabis offenses;
2. Social Equity Businesses, ordered by first in time, that:
   1. Have submitted an annual license application for a microbusiness;
   2. Have submitted an annual license application for a standard business;

Class 1 – Cannabis Cultivator:

Any licensed person or entity that grows, cultivates, or produces cannabis in this State, and sells, and may transport, this cannabis to other cannabis cultivators, or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license. There will be no more than 37 Cultivation Licenses awarded for the initial 24 months (Feb 2023)

• Tier I = Mature cannabis plant grow canopy area greater than 2,500 sq ft but no more than 10,000 sq ft

• Tier II = Mature cannabis plant grow canopy area greater than 10,000 sq ft but no more than 25,000 sq ft

• Tier III = Mature cannabis plant grow canopy area greater than 25,000 sq ft but no more than 50,000 sq ft

• Tier IV = Mature cannabis plant grow canopy area greater than 50,000 sq ft but no more than 75,000 sq ft

• Tier V = Mature cannabis plant grow canopy area greater than 75,000 sq ft but no more than 100,000 sq ft

• Tier VI = Mature cannabis plant grow canopy area greater than 100,000 sq ft but no more than 150,000 sq ft

 

Class 2 – Cannabis Manufacturer:

Any licensed person or entity that processes cannabis items in this State by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing, and packaging cannabis items, and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license.

 

Class 3 – Cannabis Wholesaler: Any licensed person or entity that purchases or otherwise obtains, stores, sells or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either to another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.

 

Class 4 – Cannabis Distributor: Any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment, and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.

Class 5 – Cannabis Retailer: Any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sells these to consumers from a retail store, and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.

 

Class 6 – Cannabis Delivery Service: Any licensed person or entity that provides courier services for consumer purchases of cannabis items and related supplies fulfilled by a cannabis retailer in order to make deliveries of the cannabis items and related supplies to that consumer, and which services include the ability of a consumer to purchase the cannabis items directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.

                                                            

                                                          PLEASE NOTE:

• Local municipalities have the authority to establish ordinances to regulate cannabis businesses within their jurisdiction, which may include limitations on types and number of licenses allowed, permitting/approval/support process.
• For a 24 month period following February 22, 2021 (until Feb 2023):

o A license holder and its owners and principals that holds a Cultivation and/or Manufacturing license may not also hold a Retail license and vice versa; AND

o A license holder and its owners and principals may hold one cannabis retailer license.