New Jersey is the latest cannabis social justice battleground
State regulators have denied claims that black applicants are barred from the licensing process.
New Jersey Gov. Phil Murphy’s latest tally projects that cannabis sales before the end of this fiscal year, June 30, will raise $4 million in state funds by the end of April and no later than July. But before NJ begins counting the haul of its legal cannabis market, lawmakers and regulators need to address concerns about how fair and equitable the industry will be.
Here’s the latest on New Jersey’s fight for social justice in its legal cannabis industry.
All eyes are on the launch of the recreational market in NJ
Regulators say they intend to use NJ’s cannabis market to undo the many damages of the drug war. Much like its neighbors in New York and Massachusetts, NJ lawmakers have been building social justice into the state’s weed laws and licensing process from day one. But some aren’t happy with the progress they’ve seen so far.
In February, NJ Rep. Donald M. Payne, Jr. claimed that “none of the 56 licenses to sell cannabis in the state of New Jersey have been granted to black-owned businesses.” His statement echoed a claim by the New Jersey African American Chamber of Commerce (AACCNJ) that “in the 10 years of legalization, no black-owned cannabis company has been licensed.”
“Based on discussions I’ve had with stakeholders, of the 56 licenses granted to date, none have been granted to a black-owned company.”
John Harmon, President and CEO of the New Jersey African American Chamber of Commerce in NJ
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The state denies claims of restricted access for black owners
In response to Rep. Payne Jr. and the AACCNJ’s claims, CRC spokeswoman Toni-Anne Blake clarified that the commission has so far issued exactly zero recreational licenses to applicants of any race. She says the CRC began accepting applications from breeders, producers and testing labs in December 2021, but only opened retail applications on Tuesday (March 15).
“I don’t know if they’re confusing the recreational licensing process with the old statutory medical cannabis RFAs from 2018 and 2019,” Blake said. The medical application process was managed by the New Jersey Department of Health,” she told Patch last month in response to an article reinforcing claims of restricted access for black applicants.
Blake assured citizens that the CRC “did not release any information about the 2019 applicants. So we don’t know where this information is coming from,” she said. Blake emphasized that it was “wrong that none of the honorees identify themselves as black-owned companies.”
Alyana Alfaro Post, a spokeswoman for the New Jersey governor’s office, also denied claims that NJ did not license black-owned cannabis companies.
“According to medical cannabis licensee data provided by the CRC, half of the most recent awardees — 22 out of 44 — are either certified minority-owned businesses or minority women, or are pursuing certifications owned by minority or minority women with the Treasury Department ‘ said Post. She continued, “This includes self-identified businesses owned or controlled by Black people.”
Although neither Post nor Blake confirmed exactly how many Black-owned businesses have received licenses to date, both suggested that the two-and-a-half-year medical uses trial may have prompted Rep. Payne Jr. and AACCNJ to call the alarm with the good intentions hold the Commission accountable.
Official CRC statement on prioritizing social justice
The CRC shared this official statement with Leafly in response to questions about the uproar Rep. Payne Jr.’s claims were causing across the country:
“The CRC has not released details of the award winners’ ownership, so we are not sure where this information came from. However, we can say that it is false that none of the award winners are black owned. The CRC is committed to doing everything in its power to promote a diverse cannabis industry. The only awards to date have been for medical cannabis companies, and the statutory RFA process for medical cannabis was significantly different than the process currently in place for recreational cannabis.”
Tonni-Anne Blake, CRC spokesperson
After making that statement, Blake recommended that concerned citizens watch the upcoming CRC meeting on March 24, which will break down useful certification information for the public.
Meet CRC boss Dianna Houenou
CRC Chair Dianna Houenou is responsible for the state’s efforts to prioritize social justice. Governor Murphy appointed Houenou in 2020, calling her a “rock star.” And since taking office, Houenou’s office has met a multitude of challenges with grace.
Despite the controversy outlined above, the CRC rules prioritize applicants from minority groups and communities affected by marijuana criminalization. These include: social participation companies, mixed-ownership companies, micro-enterprises and conditional license applicants, all of which are prioritized by the CRC in order of review and final assessment.
These priority applicants include businesses owned by individuals with prior cannabis convictions and residents of Impact Zones. Government data shows these zones were “economically disadvantaged areas” that were disproportionately affected by the drug war.
The CRC guidelines for applying for licenses also give priority to minority-owned businesses, women and veterans with disabilities, collectively referred to as diversity-owned businesses.
Here’s how NJ prioritizes social justice applicants
The best way to learn how NJ approaches social justice is to review the current application guidelines on the CRC website. The CRC began accepting applications for retail yesterday (March 15), with applicants for “Social Justice, Diversity Owners and Micro-Enterprises” moving to the front of the line. Impact Zones will provide ownership and employment opportunities to NJ communities hardest hit by the war on drugs.
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New Jersey accepts cannabis license applications. How to apply
The social justice-focused CRC guidelines have been available online since 2021. However, many application types have no time limit or cap, so accuracy is more important than speed. The commission says business applications for Social Justice, Diversity Owners and Impact Zone will be reviewed, evaluated and approved with priority.
Can legal weed undo the enduring damage of the drug war?
As recently as 2017, New Jersey was getting 95 arrests for marijuana possession every day, or about four every minute. And the aftermath continues to reverberate in communities across the state. Legalization offers a rare opportunity to undo the damage done by the war on drugs. But not every state has faced the record.
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The US cannabis industry now supports 428,059 jobs
According to Leafly’s 2021 Seeds Of Change report, only two percent of America’s 30,000 legal cannabis farms are owned by black people. That’s alarming considering that blacks make up 14 percent of the US population, according to census data. Leafly’s 2022 jobs report valued the industry at $25 billion and counted 428,059 full-time American cannabis jobs.
The green is there. So why have so many states struggled to use it properly? New Jersey’s diverse but highly segregated communities present an opportunity to change the trend. Crossing an invisible line between cities can result in wildly different treatment from law enforcement.
According to ACLU-NJ in 2019, blacks in New Jersey were nearly 300% more likely than whites to be arrested on marijuana charges. Adjusted by county, in some areas the racial divide in cannabis arrests became even wider. For example, in Hunterdon County, New Jersey, blacks were 11 times more likely to be arrested for cannabis possession than whites. Ocean County saw a sevenfold discrepancy, while Salem County arrested blacks six times as often as whites.
High stakes in The Garden State
So far, no state has passed the social justice test. But expectations for the New Jersey market are higher than in many states that have made the leap to legal sale. Despite its small size, New Jersey is densely populated and has had a disproportionate impact on American commerce and culture. Proximity to several major cities and reputation for farming also inspire confidence in the state’s potential to become a national legal marijuana hotspot.
But with states like California, Arizona, and Florida currently sorting through the mess of utterly unfair cannabis industries, there’s still plenty to worry about. CA has struggled for years to fairly regulate its vast industry. With lawless crackdowns, crippling surpluses and the growing illicit market threatening the viability of honest businesses.
Even states like Massachusetts have one of the most mature recreational slash medicine markets on the East Coast still facing hurdles. And the pandemic has not made life easier for any state regulatory agency.
As NJ becomes the latest cannabis battleground, residents can only hope that lawmakers and regulators have taken notice of other states’ mistakes. If they can apply what we’ve all learned so far, The Garden State could set the bar for how lawmakers in other states can build fair and thriving legal cannabis markets.
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