Official Site of The State of New Jersey
Priority applications increase opportunities in the cannabis industry for people from designated target communities, for people with cannabis convictions (expunged or not), and for minorities, women, and disabled veterans. Three types of cannabis businesses will receive priority review and approval in the application process:
- Diversely Owned Businesses - minority-owned, woman-owned, or disabled veteran-owned and certified as such by the New Jersey Department of the Treasury in one or more of the listed categories
- Social Equity Businesses - owned by people who have lived in an Economically Disadvantaged Area of the state, or who have convictions for marijuana-related offenses (expunged or not)
- Impact Zone Businesses - located in an Impact Zone, owned by people from an Impact Zone, or employing residents of Impact Zones.
Social Equity Businesses, Diversely Owned Businesses, and Impact-Zone businesses will be prioritized in the licensure process so that their applications are reviewed before other applicants – regardless of when they apply.
Microbusinesses, which are limited to 10 employees and 2,500 square feet, will also be prioritized and, if successful, allowed to apply to expand their business in accordance with consumer demand.
Applications will be accepted on a continuous rolling basis and shall be reviewed, scored, and approved in the following order:
- Testing Laboratory applicants and Social Equity Businesses, ordered by first in time, that:
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
- Diversely Owned businesses, ordered by first in time, that:
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
- Impact Zone Businesses, ordered by first in time, that:
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
- License applicants receiving bonus points pursuant to N.J.S.A. 24:6I-36.d(2) and the Notice of Applications Acceptance, ordered by first in time, that;
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
- All other applicants for conditional licenses, ordered by first in time, that:
- Have submitted a conditional license application for a microbusiness;
- Have submitted a conditional license application for a standard business;
- Have submitted a conditional license conversion application;
- Have submitted an annual license application for a microbusiness;
- Have submitted an annual license application for a standard business.
Applications from entities that meet criteria for more than one priority status will be reviewed, scored, and approved in accordance with the status of highest priority. For example, an application from an entity that meets the criteria to be a Diversely-Owned Business and an Impact Zone Business will be considered a Diversely-Owned Business for purposes of application priority since Diversely-Owned Businesses are of higher priority than Impact Zone Businesses.
Diversely-Owned Business applications with more than one certification from the New Jersey Department of the Treasury’s Division of Revenue and Enterprise Services will be given priority over applications that have one certification.
Priority shall be given in the following manner:
- After an application is received, it will be assigned for completeness review and then, if deemed complete, will be assigned for scoring. Where an eligible application exists in a higher priority group, with 1A being the highest and 10B being the lowest, that application will be assigned for completeness review and scoring before applications in lower priority groups.
- Once an application has been scored, if it is deemed eligible for consideration of final agency approval by the Commission, it shall also be considered in accordance with their priority group, with 1A being the highest and 10B being the lowest.
Priority Application FAQs
Priority applications are designed to increase opportunities in the cannabis industry for people from designated target communities, including individuals with cannabis convictions (expunged or not), minorities, women, and disabled veterans. The CREAMM Act stipulates that no less than 15% of licenses being issued to certified minority businesses and no less than 15% of licenses issued to certified women, and disabled veterans’ businesses, with the total number of these diversely owned businesses being over 30% percent of the total number of cannabis licenses issued by the Commission.
Three types of cannabis businesses receive priority review and approval: Diversely-Owned Businesses, Social Equity Businesses, Impact Zone Businesses, and Microbusinesses.
Diversely-Owned Businesses are minority-owned, woman-owned, or disabled veteran-owned business as certified by the Division of Revenue and Enterprise Services in the Department of the Treasury (DORES).
A Social Equity Business is majority-owned by person(s) who have lived/live in a designated Economically Disadvantaged Area five of the 10 preceding years and is a member of a household with income that is 80% or less of the average median household income in New Jersey; or is majority-owned by person(s) who had/have convictions for marijuana-related offenses (expunged or not).
Impact Zone businesses are located in municipalities with a large population, or high unemployment, crime, or marijuana arrest rate; or that is owned by people from one of those designated areas; or that employs individuals who live in one of those designated areas. Impact Zones are defined and designated by the CREAMM Act.
The NJ-CRC designated Economically Disadvantaged Areas as zip codes in New Jersey that meet specific socioeconomic criteria, such as a median income 80% or less of the state’s median household income and a health uninsured rate at least 150% of the state’s health uninsured rate.
A total of 55, or 9%, of New Jersey’s 595 zip codes qualify as Economically Disadvantaged Areas.
No, Economically Disadvantaged Areas and Impact Zones are not the same and qualify separately for priority review in the cannabis business license application process.
Impact Zones are designated based on several factors: population, top 40% ranking for marijuana or hashish-related arrests, crime index (overall crime measure), unemployment rates, and additional criteria based on the specific county’s class and population.
In total, 87 of New Jersey’s 565 municipalities (15%) in 18 counties qualify as Impact Zones.
Microbusinesses are business with 10 or fewer employees and with 2,500 square feet or less of operating space. They are prioritized according to license type (conditional or annual), and they are prioritized ahead of standard businesses.
Applications are prioritized according to when they are submitted and then categorized within each priority group and reviewed according to:
- Testing Laboratory applicants and Social Equity Businesses
- Diversely-Owned Businesses
- Impact Zone Businesses
- License applicants receiving bonus points pursuant to N.J.S.A. 24:6I-36.d(2) and the Notice of Applications Acceptance
- All other applicants for conditional and annual licenses
Applications are prioritized based on whether they are a Social Equity Business, Diversely-Owned Business, Impact Zone Business, or a Microbusiness.
Applications meeting multiple priority statuses are reviewed according to the highest priority status. For example, if an application qualifies as both a Diversely-Owned Business and an Impact Zone Business, it will be considered as a Diversely-Owned Business for application priority.
Yes, Diversely-Owned Business applications with more than one certification from DORES are prioritized over those with only one certification.
Applications are assigned for completeness review and scoring based on their priority group. Eligible applications from higher priority groups are reviewed before those from lower priority groups.
