That’s the percentage of adult-use licenses that would be set aside for micro-businesses, according to Senate Bill 2703.
“A micro-business means a person or entity licensed by the commission as a cannabis grower, cannabis processor, cannabis
wholesaler, or cannabis retailer that may only: (1) grow cannabis on an area less than 5,000 square feet; (2) process no more than
2,000 pounds of cannabis in dried form in each month; (3) wholesale no more than 2,000 pounds of cannabis in dried form, or
the equivalent amount in any other form, or any combination thereof, each month; or (4) acquire for retail sale no more than 2,000 pounds of cannabis, in dried form, or the equivalent amount in any other form, or any combination thereof, each month.”
Because as the name implies, micro-licenses allow businesses to operate on a smaller scale. Which means the start-up costs are not as prohibitive and should allow more people entry into the industry.
In addition, the bill stipulates that:
- 100 percent of the ownership interest in the micro-business “shall be held by current New Jersey residents who have resided in
the state for at least the past two consecutive years.”
- At least 51 percent of the owners, directors, officers, or employees of the micro-business “shall be residents of the local governmental entity in which the micro-business is located, or to be located, or a local governmental entity bordering the local governmental entity in which the micro-business is located, or to be located.”
- No owner, director, officer, or employee of a cannabis licensee that is not a micro-business can “hold any significant beneficial interest in the micro-business.”