{"id":4859,"date":"2022-03-16T17:26:02","date_gmt":"2022-03-16T17:26:02","guid":{"rendered":"https:\/\/www.leafly.com\/wp-home\/?p=192392"},"modified":"2022-03-16T17:26:02","modified_gmt":"2022-03-16T17:26:02","slug":"new-jersey-is-latest-battleground-for-social-equity-in-cannabis","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=4859","title":{"rendered":"New Jersey is latest battleground for social equity in cannabis"},"content":{"rendered":"<p>  <title>New Jersey is latest battleground for social equity in cannabis | Leafly<\/title>     <!-- This is Index Exchange, a script\/\/3rd-party integration that interjects GAM. It needs to be 'ahead' of GTM in the DOM, which comes from Cephalopod. GTM loads GAM. 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You&#8217;re not old enough to use Leafly.<\/p>\n<\/div>\n<p class=\"hidden age-gate__loading\">Redirecting you to<span class=\"redirect-domain\"><\/span><\/p>\n<p class=\"text-xs mt-auto\">By accessing this site, you accept<br \/>\nthe <a class=\"py-xl\" data-testid=\"tou-link\" href=\"https:\/\/www.leafly.com\/info\/terms-of-use\">Terms of Use<\/a><br \/>\nand <a class=\"py-xl\" data-testid=\"pp-link\" href=\"https:\/\/www.leafly.com\/info\/privacy-policy\">Privacy Policy<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"container my-xl\">\n<div class=\"row\">\n<div class=\"col md:col-9\" id=\"article-content\">\n<h3 id=\"h-\"><\/h3>\n<h3>State regulators have disputed claims that Black applicants are being frozen out of the licensing process.<\/h3>\n<hr class=\"wp-block-separator\">\n<p class=\"has-drop-cap\">New Jersey Gov. Phil Murphy\u2019s <a href=\"https:\/\/www.state.nj.us\/treasury\/omb\/publications\/22bib\/BIB.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">latest balance sheet<\/a> projects that cannabis sales will generate $4 million for state funds before the end of this fiscal year, June 30. According to NJ.com, the <a href=\"https:\/\/www.nj.com\/marijuana\/2022\/03\/yes-murphy-believes-nj-legal-weed-sales-will-begin-soon-his-state-budget-says-so.html\" target=\"_blank\" rel=\"noreferrer noopener\">budget update<\/a> suggests day one of NJ\u2019s recreational market could be as soon as late April, and no later than July. But before NJ starts counting the spoils of its legal weed market, lawmakers and regulators must address concerns about how fair and equitable the industry will be. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>Here\u2019s the latest on New Jersey\u2019s battle to ensure social equity in its legal cannabis industry.<\/p>\n<\/blockquote>\n<h2 id=\"h-all-eyes-on-nj-s-recreational-market-rollout\">All eyes on NJ\u2019s recreational market rollout<\/h2>\n<p>Regulators say they intend to use NJ\u2019s cannabis market to help undo the many harms of the Drug War. Much like neighbors in New York and Massachusetts, NJ lawmakers are baking social equity into the state\u2019s weed laws and licensing process from day one. But some aren\u2019t satisfied with the progress they\u2019ve seen so far.<\/p>\n<p><a href=\"https:\/\/payne.house.gov\/media\/press-releases\/rep-payne-jr-s-statement-new-jersey-s-denial-cannabis-licenses-black-owned\" target=\"_blank\" rel=\"noreferrer noopener\">In February,<\/a> NJ Rep. Donald M. Payne, Jr. claimed that \u201cnone of the 56 licenses to sell cannabis in the State of New Jersey have been issued to Black-owned businesses.\u201d His statement echoed a claim by the state\u2019s African American Chamber of Commerce of New Jersey (AACCNJ) that, \u201cin the 10 years of legalization, not one Black-owned cannabis business has been granted a license.\u201d<\/p>\n<figure class=\"wp-block-pullquote is-style-solid-color\">\n<blockquote>\n<p>\u201cBased on conversations I\u2019ve had, with stakeholders, out of the 56 licenses awarded to date, none has been awarded to a Black-owned business.\u201d&nbsp;<\/p>\n<p><cite><a href=\"https:\/\/myemail.constantcontact.com\/Press-Release---Black-Entrepreneurs--Excluded-from-NJ-s-Cannabis-Business.html?soid=1103630347928&amp;aid=9UT0hQ5HRNc\" target=\"_blank\" rel=\"noreferrer noopener\">John Harmon<\/a>, President and CEO of NJ\u2019s <a href=\"https:\/\/myemail.constantcontact.com\/Press-Release---Black-Entrepreneurs--Excluded-from-NJ-s-Cannabis-Business.html?soid=1103630347928&amp;aid=9UT0hQ5HRNc\" target=\"_blank\" rel=\"noreferrer noopener\">African American Chamber of Commerce of New Jersey<\/a><\/cite><\/p><\/blockquote>\n<\/figure>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/politics\/new-york-legalization-2022-update-governor-equity-plan-reveal\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>New York Gov. Hochul wants drug war victims to open first legal dispensaries<\/p>\n<\/div>\n<p><\/a> <\/p>\n<h2 id=\"h-state-disputes-claims-of-limited-access-for-black-owners\">State disputes claims of limited access for Black owners<\/h2>\n<p>In response to Rep. Payne Jr. and the AACCNJ\u2019s claims, CRC spokesperson Toni-Anne Blake clarified that the commission has awarded exactly <em>zero<\/em> recreational licenses so far, to applicants of any color. She says that the CRC began taking applications from cultivators, manufacturers, and testing labs in December 2021, but only opened retail applications on Tuesday (March 15).<\/p>\n<p>\u201cI don\u2019t know if they are confusing the recreational licensing process with old 2018 and 2019 statutorily mandated RFAs for medicinal cannabis,\u201d Blake said. The medical application process was administered under the New Jersey Department of Health,\u201d she told Patch last month, in response to an article that amplified the claims of limited access for Black applicants.<\/p>\n<p>Blake assured citizens that the CRC has \u201cnot released any information about the 2019 applicants. So we don\u2019t know where that information would be coming from,\u201d she said. Blake emphasized that it is \u201cfalse that none of the awardees identify as Black-owned businesses.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" alt=\"New Jersey Gov. Phil Murphy signed a medical marijuana expansion bill (header image)\" class=\"wp-image-102940 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis.jpg,compress&amp;w=1480 1480w\"><figcaption>Gov. Murphy\u2019s office is disputing claims that its cannabis license application process is failing the social equity test. (Bebeto Matthews\/AP)<\/figcaption><\/figure>\n<p>Alyana Alfaro Post, a spokesperson with the New Jersey Governor\u2019s Office, also disputed the claims that NJ hasn\u2019t licensed any Black-owned cannabis businesses.<\/p>\n<p>\u201cAccording to data provided by the CRC on the medical cannabis license awardees, half of the recent awardees \u2013 22 out of 44 \u2013 are either certified minority- or minority-women-owned enterprises, or are seeking minority- or minority women-owned certifications with the Department of the Treasury,\u201d Post said. She continued, \u201cthis includes self-identified Black-owned or -operated businesses.\u201d <\/p>\n<p>Though neither Post nor Blake confirmed exactly how many Black-owned businesses have received licenses thus far, both suggested the two-and-a-half-year process for medical applications is what could have led Rep. Payne Jr. and AACCNJ to ring the alarm with good intentions of holding the commission accountable.<\/p>\n<h2 id=\"h-official-statement-from-crc-on-prioritizing-social-equity\">Official statement from CRC on prioritizing social equity<\/h2>\n<p>The CRC shared this official statement with Leafly in response to questions about the uproar that Rep. Payne Jr.\u2019s claims caused statewide:<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe CRC has not released any details about the ownership of awardees so we aren\u2019t sure where this information is coming from. We can say however that it is false that none of the awardees are Black-owned. The CRC is committed to doing everything we can to facilitate a diverse cannabis industry. The only awards issued so far have been for medicinal cannabis businesses and the statutorily mandated RFA process for medicinal cannabis was substantially different from the process currently in place for recreational cannabis.\u201d<\/p>\n<p><cite>Tonni-Anne Blake, CRC Spokeswoman<\/cite><\/p><\/blockquote>\n<p>After providing this statement, Blake also recommended that concerned citizens view the <a href=\"https:\/\/www.nj.gov\/cannabis\/about\/meetings\/index.shtml\" target=\"_blank\" rel=\"noreferrer noopener\">upcoming CRC meeting<\/a> on March 24, which will break down useful certification info for the public.<\/p>\n<h2 id=\"h-meet-crc-boss-dianna-houenou\">Meet CRC boss Dianna Houenou<\/h2>\n<p>CRC chair Dianna Houenou is in charge of the state\u2019s effort to prioritize social equity. Gov. Murphy appointed Houenou in 2020, dubbing her a \u201crockstar.\u201d And Houenou\u2019s office has already navigated a variety of challenges with grace since taking office. <\/p>\n<p>Despite the controversy outlined above, the CRC\u2019s rules clearly prioritize applicants from minority groups, and communities affected by the criminalization of marijuana. This includes: Social equity businesses, diversely-owned businesses, microbusinesses, and conditional license applicants, all of whom will be prioritized by the CRC in review order and final scoring. <\/p>\n<p>These priority applicants include businesses owned by people with past cannabis convictions and residents from Impact Zones. State data shows that tese zones were \u201ceconomically disadvantaged areas\u201d that were disproportionately impacted by the Drug War.<\/p>\n<p>The CRC license <a href=\"https:\/\/www.nj.gov\/cannabis\/documents\/businesses\/personal-use\/Final%20Notice%20of%20Application%20Acceptance.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">application guidelines<\/a> also give priority to minority-owned, woman-owned, and disabled-veteran-owned businesses, jointly referred to as Diversely Owned businesses.<\/p>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"576\" alt=\"Multi-ethnic hands in front of a purple background and inclusive flags\" class=\"wp-image-170005 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis-1.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis-1.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis-1.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2022\/03\/new-jersey-is-latest-battleground-for-social-equity-in-cannabis-1.jpg,compress&amp;w=1480 1480w\"><figcaption>Establishing social equity in legal cannabis markets is a layered process that all industry stakeholders should be invested in. (Leafly)<\/figcaption><\/figure>\n<h2 id=\"h-here-s-how-nj-s-is-prioritizing-social-equity-applicants\">Here\u2019s how NJ\u2019s is prioritizing social equity applicants<\/h2>\n<p>The best way to find out how NJ is handling social equity is to look at current application guidelines on the CRC website. The CRC began accepting retail applications yesterday (March 15), with \u201cSocial equity, Diversely Owned, and Microbusiness\u201d applicants stepping to the front of the line. Impact Zones will give ownership and employment opportunities to NJ communities most affected by the War on Drugs.<\/p>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/industry\/new-jersey-license-apps-now-open\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>New Jersey is accepting cannabis license applications. Here\u2019s how to apply<\/p>\n<\/div>\n<p><\/a> <\/p>\n<p>The social equity-focused CRC guidelines have been available online since 2021. But there is no time limit or cap on many application types, so accuracy is more important than speed. The commission says that Social Equity, Diversely Owned, and Impact Zone business applications will receive priority review, scoring, and approval.<\/p>\n<h2 id=\"h-can-legal-weed-undo-the-drug-war-s-lasting-harm\">Can legal weed undo the Drug War\u2019s lasting harm?<\/h2>\n<p>As recently as 2017, New Jersey saw 95 marijuana possession arrests per day, or about four per minute. And the consequences continue to reverberate in communities statewide. Legalization presents a rare opportunity to reverse the harm done by the War on Drugs. But not every state has stepped up to the plate.<\/p>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/industry\/cannabis-jobs-report\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>The US cannabis industry now supports 428,059 jobs<\/p>\n<\/div>\n<p><\/a> <\/p>\n<p>According to Leafly\u2019s 2021 Seeds Of Change&nbsp;<a href=\"https:\/\/leafly-cms-production.imgix.net\/wp-content\/uploads\/2021\/06\/25091621\/Leafly-2021-white-paper-Seeds-Of-Change-by-Janessa-Bailey-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a>, only two percent of America\u2019s 30,000 legal cannabis operations are Black-owned. That\u2019s alarming considering Black people make up 14 percent of the US population, by census data. Leafly\u2019s 2022 Jobs Report valued the industry at $25 billion dollar, and counted 428,059 full-time American cannabis jobs. <\/p>\n<p>The green is there. So why have so many states struggled to use it properly New Jersey\u2019s diverse but highly-segregated communities present a chance to change the trend. Crossing an invisible border between towns can lead to vastly different treatment from law enforcement.<\/p>\n<p>According to <a href=\"https:\/\/www.aclu.org\/press-releases\/aclu-nj-marijuana-data-brief-finds-cannabis-arrests-have-skyrocketed-earlier-report\" target=\"_blank\" rel=\"noreferrer noopener\">ACLU-NJ in 2019<\/a>, Black people had a nearly 300% higher chance of being arrested on a marijuana charge in New Jersey than white people. Adjusted by county, some areas saw the racial gap in cannabis arrests grow even larger. For example, NJ\u2019s Hunterdon County arrested Black people 11 times more for cannabis possession than white people. Ocean County saw a seven-fold discrepancy, while Salem County, arrested Black people at six times the rate of white people.<\/p>\n<h2 id=\"h-high-stakes-in-the-garden-state\">High stakes in The Garden State<\/h2>\n<p>So far, no state has aced the social equity test. But expectations for New Jersey\u2019s market are higher than in many states that have made the jump into legal sales. Despite its small size, New Jersey is densely populated and disproportionately influential on American commerce and culture. Its proximity to several major cities and reputation for agriculture also inspire confidence in the state\u2019s potential to be a national hotspot for legal pot. <\/p>\n<p>But with states like California, Arizona, and Florida currently sorting through the mess of wholly inequitable cannabis industries, there is still a lot to be concerned about. CA is <a href=\"https:\/\/www.leafly.com\/news\/industry\/la-could-spend-millions-to-tackle-illegal-cannabis-market\" target=\"_blank\" rel=\"noreferrer noopener\">has struggled for years to regulate<\/a> its massive industry fairly. With <a href=\"https:\/\/www.leafly.com\/news\/industry\/jungle-boys-dispensary-raided\" target=\"_blank\" rel=\"noreferrer noopener\">lawless raids<\/a>, <a href=\"https:\/\/www.leafly.com\/news\/industry\/california-pot-supply-glut-2021\" target=\"_blank\" rel=\"noreferrer noopener\">crippling surpluses<\/a>, and the <a href=\"https:\/\/www.rollingstone.com\/culture\/culture-features\/california-weed-cannabis-crisis-emerald-triangle-1302545\/\" target=\"_blank\" rel=\"noreferrer noopener\">surging illicit market<\/a> threatening the viability of upstanding businesses.<\/p>\n<p>Even states like Massachusetts, which boasts one of the East Coast\u2019s most mature recreational-slash-medical markets, is <a href=\"https:\/\/www.metrowestdailynews.com\/story\/business\/2021\/11\/01\/five-years-after-legalization-marijuana-industry-faces-hurdles-massachusetts\/6229537001\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span>still facing hurdles<\/span><\/a>. And the pandemic hasn\u2019t made life easier for any state\u2019s regulatory office.<\/p>\n<p>As NJ becomes the latest cannabis battleground, residents can only hope that lawmakers and regulators took notes on other states\u2019 mistakes. If they can apply what we\u2019ve all learned so far, The Garden State could set the bar for how lawmakers in other states can build out fair and thriving legal cannabis markets.<\/p>\n<div class=\"leafly-sailthru-signup p-lg my-xl bg-white rounded elevation-low border border-light-grey\">\n<p class=\"text-xs pt-lg\">By submitting this form, you will be subscribed to news and promotional emails from <a href=\"https:\/\/www.leafly.com\">Leafly<\/a> and you agree to Leafly&#8217;s <a href=\"https:\/\/www.leafly.com\/company\/tos\">Terms of Service<\/a> and <a href=\"https:\/\/www.leafly.com\/company\/privacy-policy\">Privacy Policy<\/a>. You can unsubscribe from Leafly email messages anytime.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<p> <!-- Chartbeat --> <!-- End Chartbeat -->  <!--\nPerformance optimized by W3 Total Cache. Learn more: https:\/\/www.boldgrid.com\/w3-total-cache\/ Served from: _ @ 2022-03-16 10:34:31 by W3 Total Cache\n--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Jersey is latest battleground for social equity in cannabis | Leafly Link copied to your clipboard Leafly Leafly \u00ae Loading\u2026 Where are you from? noyes Remember me for 30 days. I confirm that this is not a shared device. Darn! You&#8217;re not old enough to use Leafly. Redirecting you to By accessing this site, you accept the Terms of Use and Privacy Policy. State regulators have disputed claims that Black applicants are being frozen out of the licensing process. New Jersey Gov. Phil Murphy\u2019s latest balance sheet projects that cannabis sales will generate $4 million for state funds before&#8230; <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-4859","post","type-post","status-publish","format-standard","hentry","category-marijuana_information"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/4859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4859"}],"version-history":[{"count":0,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/4859\/revisions"}],"wp:attachment":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}