N.J. Admin. Code § 17:30-6.1

Current through Register Vol. 56, No. 8, April 15, 2024

Section 17:30-6.1 - Cannabis business licensing process; application 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 provided 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 cannabis cultivators. This number shall include any expanded ATCs.

i. Microbusinesses with cannabis cultivator licenses, 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 cannabis 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 licenses 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 wholesaler, cannabis distributor, and cannabis delivery service licenses 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 cannabis items to discourage purchases from the illegal market.

(c) The Commission may specify the type or class of conditional 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 license applications, provided such limitations are consistent with meeting the market demands of the State.

1. During the period of time that the Commission is accepting 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 Register, 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 accepted 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 acceptance of license applications shall include:

i. The types or classes of license applications being accepted;

ii. The criteria for eligibility for such license applications;

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 licenses of such class.

4. Microbusinesses, including microbusinesses that have converted into standard cannabis businesses in accordance 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 conditional 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 applications and applicants are reviewed, scored, approved, and issued, such that:

1. Social equity businesses, diversely owned businesses, and impact zone businesses always have priority over other license applicants;

2. Except where it conflicts with (d)1 above, conditional license applicants have priority over annual license applicants;

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

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.

N.J. Admin. Code § 17:30-6.1

Adopted by 53 N.J.R. 1583(a), effective 8/19/2021

Amended by 55 N.J.R. 402(a), effective 3/6/2023