N.J. Admin. Code § 17:30-7.11

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

Section 17:30-7.11 - Qualification for an annual cannabis business license

(a) A license applicant or license holder is qualified to hold an annual license where:

1. Each owner, principal, employee, or volunteer of a license applicant or license holder, as well as each staff member of a license applicant's or license holder's management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items has submitted a criminal history background check pursuant to N.J.A.C. 17:30-7.12;

2. No owner, principal, employee, or volunteer of a license applicant or license holder has a disqualifying conviction pursuant to N.J.A.C. 17:30-7.12(d) without evidence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(d);

3. No staff member of a license applicant's or license holder's management services contractor that participates in the obtaining, possession, securing, cultivating, manufacturing, transporting, selling, delivering, or destroying cannabis items of the license applicant or license holder has a disqualifying conviction pursuant to N.J.A.C. 17:30-7.12(d) without evidence of rehabilitation pursuant to N.J.A.C. 17:30-7.12(e);

4. At least one owner of the license applicant has resided in this State for at least two years as of the date of the application;

5. Each owner and principal of the license applicant or license holder is eligible to be an owner or principal, respectively, of the license applicant or license holder in accordance with N.J.A.C. 17:30-6.8;

6. If a diversely owned business, the license applicant or license holder fulfills all of the diversely owned business requirements, pursuant to N.J.A.C. 17:30-6.4;

7. If an impact zone business, the license applicant or license holder fulfills all of the impact zone business requirements, pursuant to N.J.A.C. 17:30-6.5;

8. If a social equity business, the license applicant or license holder fulfills all of the social equity business ownership requirements, pursuant to N.J.A.C. 17:30-6.6;

9. If a microbusiness, the license applicant or license holder fulfills all of the microbusiness ownership requirements, pursuant to N.J.A.C. 17:30-6.7;

10. No employee of any State, county, or local government entity involved in the process of reviewing, processing, or making determinations with regard to cannabis business license applications has any direct or indirect financial interest in the license applicant or license holder; and

11. The license applicant or license holder has not provided anything of value to an employee of any State, county, or local government entity involved in the process of reviewing, processing, or making determinations with regard to license applications in exchange for reviewing, processing, or making any recommendations with respect to a license application.

(b) A license applicant or license holder is not qualified to hold a license where the license applicant or license holder:

1. Does not meet the requirements at (a) above;

2. Fails to provide information, documentation, and assurances as required pursuant to P.L. 2021, c. 16(N.J.S.A. 24:6I-31 et seq.), or this subchapter or as requested by the Commission, including failure to provide a required criminal history record background check or to cooperate with the Commission in its investigation of the license applicant;

3. Fails to reveal any material fact pertaining to qualification;

4. Supplies information that is untrue or misleading as to a material fact pertaining to the qualification criteria for a license; or

5. Has been determined by the Commission to be unsuitable to hold a cannabis business license pursuant to (c) below.

(c) The Commission may determine a license applicant or license holder is unsuitable pursuant to (b)5 above, where the license applicant or license holder has demonstrated:

1. To be a danger to the public health, safety, and general welfare of the State; or

2. A history of:

i. Distributing marijuana to minors;

ii. Involvement with organized crime;

iii. Diverting marijuana from personal use or medical cannabis states to other states;

iv. Engaging in trafficking of controlled substances not authorized by the Act or this chapter, or other illegal activity; or

v. Engaging in violence or the use of firearms as part of cannabis business operations.

(d) If the person is determined to be not qualified for an annual license, such disqualification shall be considered a final agency action subject to judicial review pursuant to N.J.A.C. 17:30-20.10, and the Commission shall provide notice of the determination to the person in writing, which shall include:

1. The specific reason for the disqualification, including any conviction that constitutes the basis for the disqualification; and

2. Information about appeal rights pursuant to N.J.A.C. 17:30-20.10.

N.J. Admin. Code § 17:30-7.11

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

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