More Weed Companies Can Operate In NJ, Commission Rules

NEW JERSEY — State cannabis regulators took actions Wednesday designed to expand New Jersey's slowly growing industry and increase diversity among ownership.

Starting next month, the state will no longer cap the number of businesses allowed to grow weed. The New Jersey Cannabis Regulatory Commission will also make $10 million in grants available for developing weed businesses, which will support entrepreneurs in poor communities and people with prior cannabis convictions.

Currently, the state commission can only grant 37 cultivation licenses — the governing body has awarded 17. The commission will allow the cap on such licenses to expire Feb. 22 in efforts to expand the industry in New Jersey.

The state legalized recreational weed in early 2021. In the two years since, two of the primary criticisms from activists and industry advocates have included the slow rollout for issuing business licenses and failures in promises to bring social equity to the industry.

Along with the grants that will become available, the state cannabis commission also approved an amendment designed to increase diversity among licensees. Under the amendment, the commission will give priority in the application process to marginalized applicants and communities that the War on Drugs disproportionately harmed, known as Impact Zones.

"The change in priority order ensures that annual license applications from priority designated businesses are promptly reviewed and approved, and that the priority designation applies for all stages and application categories," said Commission Chair Dianna Houenou. "The change should help those businesses get up and running in time to boost competition in the industry."

Additionally, starting Feb. 22, license holders will be able to simultaneously hold permits for cultivation, manufacturing, retail and delivery. Licensed wholesalers, which store and sell weed in bulk, will also be allowed to obtain a distributor license, allowing them to transport bulk cannabis.

Feb. 22 will mark the two-year anniversary of the state's initial legislation that regulates legal, recreational cannabis.

The slow rollout of state licenses, which all of New Jersey's legal cannabis businesses need, is perhaps most visible in the number of dispensaries that can sell recreational weed. The state allowed about a dozen dispensaries to begin selling adult-use cannabis on April 21 — more than a year after the substance's legalization. New Jersey currently has 21 businesses offering medical and recreational weed, along with 11 medical-only dispensaries.

The weed industry's lack of social equity has also been a major concern. As late as 2017, Black people in New Jersey were three times more likely to get arrested on a marijuana charge than white people, despite similar usage rates, according to the American Civil Liberties Union.

Out of 56 cannabis licenses awarded in the early-going, none went to Black owners, according to the African American Chamber of Commerce of New Jersey and Rep. Donald Payne Jr. The state denied the accusation when Patch reported no the matter in February 2022. Read more: NJ Denies It Hasn't Licensed A Black Owner Since Legalizing Weed

The state cannabis commission reported progress in this regard last May, stating that half its conditional-license awardees went to minority- and/or woman-owned businesses.

Related articles:

• NJ Marijuana Sales Began 'On Par' With Other States, Official Says
• West Orange Weed Entrepreneurs Celebrate A 'Win For The Underdog'

At Wednesday's meeting, the commission also approved:

• 49 conditional licenses, who have 120 days to complete the municipal-approval process. (Cannabis licenses in New Jersey require approval from both the state commission and municipal officials.)
• the conversion of 11 conditional licenses to annual licenses.
• 11 annual licenses for retail, cultivation and manufacturing of weed.