New Jersey § 24:6i-7

§ 24:6i-7.

a. Each application for a medical cannabis cultivator permit, medical cannabis manufacturer

permit, and medical cannabis dispensary permit, and each application for annual renewal

of such permit, including permit and renewal applications for microbusinesses that

meet the requirements of subsection e. of section 11 of P.L.2019, c. 153 ( C.24:6I-7.1 ), shall be submitted to the commission. A full, separate application shall be required for each initial permit requested

by the applicant and for each location at which an applicant seeks to operate, regardless

of whether the applicant was previously issued a medical cannabis cultivator, medical

cannabis manufacturer, medical cannabis dispensary, or clinical registrant permit,

and regardless of whether the applicant currently holds a medical cannabis cultivator,

medical cannabis manufacturer, or medical cannabis dispensary permit. Renewal applications shall be submitted to the commission on a form and in a manner

as shall be specified by the commission no later than 90 days before the date the

current permit will expire. b. An initial permit application shall be evaluated according to criteria to be developed

by the commission. The commission shall determine the point values to be assigned to each criterion,

which shall include bonus points for applicants who are residents of New Jersey. c. The criteria to be developed by the commission pursuant to subsection b. of this

section shall include, in addition to the criteria set forth in subsections d. and

e. of this section and any other criteria developed by the commission, an analysis

of the applicant's operating plan, excluding safety and security criteria, which shall

include the following: (1) In the case of an applicant for a medical cannabis cultivator permit, the operating

plan summary shall include a written description concerning the applicant's qualifications

for, experience in, and knowledge of each of the following topics: (a) State-authorized cultivation of medical cannabis; (b) conventional horticulture or agriculture, familiarity with good agricultural practices,

and any relevant certifications or degrees; (c) quality control and quality assurance; (d) recall plans; (e) packaging and labeling; (f) inventory control and tracking software or systems for the production of medical

cannabis; (g) analytical chemistry and testing of medical cannabis; (h) water management practices; (i) odor mitigation practices; (j) onsite and offsite recordkeeping; (k) strain variety and plant genetics; ( l ) pest control and disease management practices, including plans for the use of pesticides,

nutrients, and additives; (m) waste disposal plans; and (n) compliance with applicable laws and regulations. (2) In the case of an applicant for a medical cannabis manufacturer permit, the operating

plan summary shall include a written description concerning the applicant's qualifications

for, experience in, and knowledge of each of the following topics: (a) State-authorized manufacture and creation of cannabis products using appropriate

extraction methods, including intended use and sourcing of extraction equipment and

associated solvents or intended methods and equipment for non-solvent extraction; (b) pharmaceutical manufacturing, good manufacturing practices, and good laboratory

practices; (c) quality control and quality assurance; (d) recall plans; (e) packaging and labeling; (f) inventory control and tracking software or systems for the production of medical

cannabis; (g) analytical chemistry and testing of medical cannabis and medical cannabis products

and formulations; (h) water management practices; (i) odor mitigation practices; (j) onsite and offsite recordkeeping; (k) a list of product formulations or products proposed to be manufactured with estimated

cannabinoid profiles, if known, including varieties with high cannabidiol content; ( l ) intended use and sourcing of all non-cannabis ingredients used in the manufacture

and creation of cannabis products, including methods to verify or ensure the safety

and integrity of those ingredients and their potential to be or contain allergens; (m) waste disposal plans; and (n) compliance with applicable laws and regulations. (3) In the case of an applicant for a medical cannabis dispensary permit, the operating

plan summary shall include a written description concerning the applicant's qualifications

for, experience in, and knowledge of each of the following topics: (a) State-authorized dispensation of medical cannabis to qualifying patients; (b) healthcare, medicine, and treatment of patients with qualifying medical conditions; (c) medical cannabis product evaluation procedures; (d) recall plans; (e) packaging and labeling; (f) inventory control and point-of-sale software or systems for the sale of medical

cannabis; (g) patient counseling procedures; (h) the routes of administration, strains, varieties, and cannabinoid profiles of

medical cannabis and medical cannabis products; (i) odor mitigation practices; (j) onsite and offsite recordkeeping; (k) compliance with State and federal patient privacy rules; ( l ) waste disposal plans; and (m) compliance with applicable laws and regulations. d. The criteria to be developed by the commission pursuant to subsection b. of this

section shall include, in addition to the criteria set forth in subsections c. and

e. of this section and any other criteria developed by the commission, an analysis

of the following factors, if applicable: (1) The applicant's environmental impact plan. (2) A summary of the applicant's safety and security plans and procedures, which shall

include descriptions of the following: (a) plans for the use of security personnel, including contractors; (b) the experience or qualifications of security personnel and proposed contractors; (c) security and surveillance features, including descriptions of any alarm systems,

video surveillance systems, and access and visitor management systems, along with

drawings identifying the proposed locations for surveillance cameras and other security

features; (d) plans for the storage of medical cannabis and medical cannabis products, including

any safes, vaults, and climate control systems that will be utilized for this purpose; (e) a diversion prevention plan; (f) an emergency management plan; (g) procedures for screening, monitoring, and performing criminal history record background

checks of employees; (h) cybersecurity procedures, including, in the case of an applicant for a medical

cannabis dispensary permit, procedures for collecting, processing, and storing patient

data, and the applicant's familiarity with State and federal privacy laws; (i) workplace safety plans and the applicant's familiarity with federal Occupational

Safety and Health Administration regulations; (j) the applicant's history of workers' compensation claims and safety assessments; (k) procedures for reporting adverse events; and ( l ) a sanitation practices plan. (3) A summary of the applicant's business experience, including the following, if

applicable: (a) the applicant's experience operating businesses in highly-regulated industries; (b) the applicant's experience in operating alternative treatment centers and related

medical cannabis production and dispensation entities under the laws of New Jersey

or any other state or jurisdiction within the United States; and (c) the applicant's plan to comply with and mitigate the effects of 26 U.S.C. s.280E on cannabis businesses, and for evidence that the applicant is not in arrears with

respect to any tax obligation to the State. In evaluating the experience described under subparagraphs (a), (b), and (c) of this

paragraph, the commission shall afford the greatest weight to the experience of the

applicant itself, controlling owners, and entities with common ownership or control

with the applicant; followed by the experience of those with a 15 percent or greater

ownership interest in the applicant's organization; followed by significantly involved

persons in the applicant's organization; followed by other officers, directors, and

current and prospective employees of the applicant who have a bona fide relationship

with the applicant's organization as of the date of the application. (4) A description of the proposed location for the applicant's site, including the

following, if applicable: (a) the proposed location, the surrounding area, and the suitability or advantages

of the proposed location, along with a floor plan and optional renderings or architectural

or engineering plans; (b) the submission of zoning approvals for the proposed location, which shall consist

of a letter or affidavit from appropriate municipal officials that the location will

conform to municipal zoning requirements allowing for such activities related to the

cultivation, manufacturing, or dispensing of medical cannabis, cannabis products,

and related supplies as will be conducted at the proposed facility; and (c) the submission of proof of local support for the suitability of the location,

which may be demonstrated by a resolution adopted by the municipality's governing

body indicating that the intended location is appropriately located or otherwise suitable

for such activities related to the cultivation, manufacturing, or dispensing of medical

cannabis, cannabis products, and related supplies as will be conducted at the proposed

facility. Notwithstanding any other provision of this subsection, an application shall be disqualified

from consideration unless it includes documentation demonstrating that the applicant

will have final control of the premises upon approval of the application, including,

but not limited to, a lease agreement, contract for sale, title, deed, or similar

documentation. In addition, if the applicant will lease the premises, the application will be disqualified

from consideration unless it includes certification from the landlord that the landlord

is aware that the tenant's use of the premises will involve activities related to

the cultivation, manufacturing, or dispensing of medical cannabis and medical cannabis

products. An application shall not be disqualified from consideration if the application does

not include the materials described in subparagraph (b) or (c) of this paragraph. (5) A community impact, social responsibility, and research statement, which shall

include, but shall not be limited to, the following: (a) a community impact plan summarizing how the applicant intends to have a positive

impact on the community in which the proposed entity is to be located, which shall

include an economic impact plan, a description of outreach activities, and any financial

assistance or discount plans the applicant will provide to qualifying patients and

designated caregivers; (b) a written description of the applicant's record of social responsibility, philanthropy,

and ties to the proposed host community; (c) a written description of any research the applicant has conducted on the medical

efficacy or adverse effects of cannabis use and the applicant's participation in or

support of cannabis-related research and educational activities; and (d) a written plan describing any research and development regarding the medical efficacy

or adverse effects of cannabis, and any cannabis-related educational and outreach

activities, which the applicant intends to conduct if issued a permit by the commission. In evaluating the information submitted pursuant to subparagraphs (b) and (c) of this

paragraph, the commission shall afford the greatest weight to responses pertaining

to the applicant itself, controlling owners, and entities with common ownership or

control with the applicant; followed by responses pertaining to those with a 15 percent

or greater ownership interest in the applicant's organization; followed by significantly

involved persons in the applicant's organization; followed by other officers, directors,

and current and prospective employees of the applicant who have a bona fide relationship

with the applicant's organization as of the date of the application. (6) A workforce development and job creation plan, which may include information on

the applicant's history of job creation and planned job creation at the proposed facility;

education, training, and resources to be made available for employees; any relevant

certifications; and a diversity plan. (7) A business and financial plan, which may include, but shall not be limited to,

the following: (a) an executive summary of the applicant's business plan; (b) a demonstration of the applicant's financial ability to implement its business

plan, which may include, but shall not be limited to, bank statements, business and

individual financial statements, net worth statements, and debt and equity financing

statements; and (c) a description of the applicant's plan to comply with guidance pertaining to cannabis

issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal “Bank Secrecy Act”, which may be demonstrated by submitting letters regarding

the applicant's banking history from banks or credit unions that certify they are

aware of the business activities of the applicant, or entities with common ownership

or control with the applicant, in any state where the applicant has operated a business

related to medical cannabis. For the purposes of this subparagraph, the commission shall consider only bank references

involving accounts in the name of the applicant or of an entity with common ownership

or control with the applicant. An applicant who does not submit the information described in this subparagraph

shall not be disqualified from consideration. (8) Whether any of the applicant's majority or controlling owners were previously

approved by the commission to serve as an officer, director, principal, or key employee

of an alternative treatment center, or personal use cannabis establishment, distributor,

or delivery service, provided any such individual served in that capacity at the alternative

treatment center for six or more months. (9) Whether the applicant can demonstrate that its governance structure includes the

involvement of a school of medicine or osteopathic medicine licensed and accredited

in the United States, or a general acute care hospital, ambulatory care facility,

adult day care services program, or pharmacy licensed in New Jersey, provided that: (a) the school, hospital, facility, or pharmacy has conducted or participated in research

approved by an institutional review board related to cannabis involving the use of

human subjects, except in the case of an accredited school of medicine or osteopathic

medicine that is located and licensed in New Jersey; (b) the school, hospital, facility, or pharmacy holds a profit share or ownership

interest in the applicant's organization of 10 percent or more, except in the case

of an accredited school of medicine or osteopathic medicine that is located and licensed

in New Jersey; and (c) the school, hospital, facility, or pharmacy participates in major decision-making

activities within the applicant's organization, which may be demonstrated by representation

on the board of directors of the applicant's organization. (10) The proposed composition of the applicant's medical advisory board established

pursuant to section 15 of P.L.2019, c. 153 ( C.24:6I-7.5 ), if any. (11) Whether the applicant intends to or has entered into a partnership with a prisoner

re-entry program for the purpose of identifying and promoting employment opportunities

at the applicant's organization for former inmates and current inmates leaving the

corrections system. If so, the applicant shall provide details concerning the name of the re-entry program,

the employment opportunities at the applicant's organization that will be made available

to the re-entry population, and any other initiatives the applicant's organization

will undertake to provide support and assistance to the re-entry population. (12) Any other information the commission deems relevant in determining whether to

grant a permit to the applicant. e. In addition to the information to be submitted pursuant to subsections c. and d.

of this section, the commission shall require all permit applicants, other than applicants

for a conditional permit, or for an entity that is a microbusiness pursuant to subsection

e. of section 11 of P.L.2019, c. 153 ( C.24:6I-7.1 ), to submit an attestation signed by a bona fide labor organization stating that

the applicant has entered into a labor peace agreement with such bona fide labor organization. Except in the case of an entity holding an unconverted conditional permit, the maintenance

of a labor peace agreement with a bona fide labor organization shall be an ongoing

material condition of maintaining a medical cannabis cultivator, medical cannabis

manufacturer, or medical cannabis dispensary permit. The submission of an attestation and maintenance of a labor peace agreement with

a bona fide labor organization by an applicant issued a conditional permit pursuant

to subsection d. of section 11 of P.L.2019, c. 153 ( C.24:6I-7.1 ) shall be a requirement for conversion of a conditional permit into a full permit. The failure to enter into a collective bargaining agreement within 200 days after

the date that a medical cannabis cultivator, medical cannabis manufacturer, or medical

cannabis dispensary first opens shall result in the suspension or revocation of such

permit or conditional permit. In reviewing initial permit applications, the commission shall give priority to the

following, regardless of whether there is any competition among applicants for a particular

type of permit: (1) Applicants that are party to a collective bargaining agreement with a bona fide

labor organization that currently represents, or is actively seeking to represent,

cannabis workers in New Jersey. (2) Applicants that are party to a collective bargaining agreement with a bona fide

labor organization that currently represents cannabis workers in another state. (3) Applicants that include a significantly involved person or persons lawfully residing

in New Jersey for at least two years as of the date of the application. (4) Applicants that submit a signed project labor agreement with a bona fide building

trades labor organization, which is a form of pre-hire collective bargaining agreement

covering terms and conditions of a specific project, including labor issues and worker

grievances associated with that project, for the construction or retrofit of the facilities

associated with the permitted entity. (5) Applicants that submit a signed project labor agreement with a bona fide labor

organization for any other applicable project associated with the permitted entity. As used in this subsection, “ bona fide labor organization ” means a labor organization of any kind or employee representation committee, group,

or association, in which employees participate and which exists and is constituted

for the purpose, in whole or in part, of collective bargaining or otherwise dealing

with medical or personal use cannabis employers concerning grievances, labor disputes,

terms or conditions of employment, including wages and rates of pay, or other mutual

aid or protection in connection with employment, and may be characterized by: it

being a party to one or more executed collective bargaining agreements with medical

or personal use cannabis employers, in this State or another state; it having a written

constitution or bylaws in the three immediately preceding years; it filing the annual

financial report required of labor organizations pursuant to subsection (b) of 29 U.S.C. s.431 , or it having at least one audited financial report in the three immediately preceding

years; it being affiliated with any regional or national association of unions, including

but not limited to state and federal labor councils; or it being a member of a national

labor organization that has at least 500 general members in a majority of the 50 states

of the United States. A bona fide labor organization includes a bona fide building trades labor organization. f. In reviewing an initial permit application, unless the information is otherwise

solicited by the commission in a specific application question, the commission's evaluation

of the application shall be limited to the experience and qualifications of the applicant's

organization, including controlling owners, any entities with common ownership or

control with the applicant, those with a 15 percent or greater interest in the applicant’s

organization, significantly involved persons in the applicant's organization, the

other officers, directors, and current or prospective employees of the applicant's

organization who have a bona fide relationship with the applicant's organization as

of the date of the application, and consultants and independent contractors who have

a bona fide relationship with the applicant as of the date of the application. Responses pertaining to applicants who are exempt from the criminal history record

background check requirements of section 7 of P.L.2009, c. 307 ( C.24:6I-7 ) shall not be considered. Each applicant shall certify as to the status of the individuals and entities included

in the application. g. The commission shall conduct a disparity study to determine whether race-based

measures should be considered when issuing permits pursuant to this section, and shall

incorporate the policies, practices, protocols, standards, and criteria developed

by the Office of Minority, Disabled Veterans, and Women Cannabis Business Development

pursuant to section 32 of P.L.2019, c. 153 ( C.24:6I-25 ) to promote participation in the medical cannabis industry by persons from socially

and economically disadvantaged communities, including promoting applications for,

and the issuance of, medical cannabis cultivator, medical cannabis manufacturer, and

medical cannabis dispensary permits to certified minority, women's, and disabled veterans'

businesses. To this end, the commission shall seek to issue at least 30 percent of the total

number of new medical cannabis cultivator permits, medical cannabis manufacturer permits,

and medical cannabis dispensary permits issued on or after the effective date of P.L.2019, c. 153 ( C.24:6I-5.1 et al.) 1 as follows: (1) at least 15 percent of the total number of new medical cannabis cultivator permits,

medical cannabis manufacturer permits, and medical cannabis dispensary permits are

issued to a qualified applicant that has been certified as a minority business pursuant

to P.L.1986, c. 195 ( C.52:27H-21.18 et seq. ); and (2) at least 15 percent of the total number of new medical cannabis cultivator permits,

medical cannabis manufacturer permits, and medical cannabis dispensary permits are

issued to a qualified applicant that has been certified as a women's business pursuant

to P.L.1986, c. 195 ( C.52:27H-21.18 et seq. ) or as a disabled-veterans' business, as defined in section 2 of P.L.2015, c. 116 ( C.52:32-31.2 ). In selecting among applicants who meet these criteria, the commission shall grant

a higher preference to applicants with up to two of the certifications described in

this subsection. h. The commission shall give special consideration to any applicant that has entered

into an agreement with an institution of higher education to create an integrated

curriculum involving the cultivation, manufacturing, dispensing or delivery of medical

cannabis, provided that the curriculum is approved by both the commission and the

Office of the Secretary of Higher Education and the applicant agrees to maintain the

integrated curriculum in perpetuity. An integrated curriculum permit shall be subject to revocation if the IC permit

holder fails to maintain or continue the integrated curriculum. In the event that, because of circumstances outside an IC permit holder's control,

the IC permit holder will no longer be able to continue an integrated curriculum,

the IC permit holder shall notify the commission and shall make reasonable efforts

to establish a new integrated curriculum with an institution of higher education,

subject to approval by the commission and the Office of the Secretary of Higher Education. If the IC permit holder is unable to establish a new integrated curriculum within

six months after the date the current integrated curriculum arrangement ends, the

commission shall revoke the entity's IC permit, unless the commission finds there

are extraordinary circumstances that justify allowing the permit holder to retain

the permit without an integrated curriculum and the commission finds that allowing

the permit holder to retain the permit would be consistent with the purposes of P.L.2009, c. 307 ( C.24:6I-1 et al.), in which case the IC permit shall convert to a regular permit of the same

type. The commission may revise the application and permit fees or other conditions for

an IC permit as may be necessary to encourage applications for IC permits. i. Application materials submitted to the commission pursuant to this section shall

not be considered a public record pursuant to P.L.1963, c. 73 ( C.47:1A-1 et seq. ), P.L.2001, c. 404 ( C.47:1A-5 et al.), or the common law concerning access to government records. j. If the commission notifies an applicant that it has performed sufficiently well

on multiple applications to be awarded more than one permit, the applicant shall notify

the commission, within seven business days after receiving such notice, as to which

permit type it will accept. For any permit award declined by an applicant pursuant to this subsection, the commission

shall, upon receiving notice from the applicant of the declination, award the permit

to the applicant for that permit type who, in the determination of the commission,

best satisfies the commission's criteria while meeting the commission's determination

of Statewide need. If an applicant fails to notify the commission as to which permit it will accept,

the commission shall have the discretion to determine which permit it will award to

the applicant, based on the commission's determination of Statewide need and other

applications submitted for facilities to be located in the affected regions. k. (1) Subject to the provisions of paragraph (2) of this subsection, the provisions of this section shall not apply to any permit applications submitted pursuant

to a request for applications published in the New Jersey Register prior to the effective

date of P.L.2019, c. 153 ( C.24:6I-5.1 et al.). (2) The provisions of subsection l. of this section shall not apply to any permit

applications submitted pursuant to a request for applications published in the New

Jersey Register prior to the effective date of P.L.2021, c. 252 2 . l. In addition to the information to be submitted pursuant to subsections c., d.,

and e. of this section, the commission shall require all permit applicants to submit

a copy of any services agreement entered into by the applicant with third party entity,

which agreement shall be subject to review as provided in subsection f. of section

11 of P.L.2019, c. 153 ( C.24:6I-7.1 ). 1

L.2019, c. 153, eff. July 2, 2019. 2

L.2021, c. 252, eff. Oct. 18, 2021.