Bill Text: NJ S4791 | 2026-2027 | Regular Session | Introduced
Bill Title: Makes any business owned by both women and minorities eligible for certain business certifications and set-aside programs.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-10-05 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S4791 Detail]
Download: New_Jersey-2026-S4791-Introduced.html
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Makes any business owned by both women and minorities eligible for certain business certifications and set-aside programs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning eligibility for certain business certifications and set-aside programs for women and minorities and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1987, c.318 (C.5:10-21.1a) is amended to read as follows:
3. The authority is authorized and directed to establish, prior to initiating any project on or after the effective date of this 1987 amendatory and supplementary act, small business, minority business, minority and women's business, and women's business set-aside contract goals and procedures in accordance with the provisions of the "Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses," P.L. 1983, c. 482 (C. 52:32-17 et seq.).
(cf: P.L.1987, c.318, s.3)
2. Section 2 of P.L.1985, c.539 (C.5:12-185) is amended to read as follows:
2. As used in this act:
a. "Casino licensee" means any entity which holds or is an applicant for a casino license pursuant to section 87 of P.L.1977, c. 110 (C. 5:12-87).
b. "Minority business enterprise" means a business that is:
(1) A sole proprietorship, owned and controlled by a minority;
(2) A partnership or joint venture owned and controlled by minorities in which at least 51[%] percent of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it, and which is at least 51[%] percent owned by one or more minorities, or if stock is issued, at least 51[%] percent of the stock is owned by one or more minorities.
c. "Minority" means a person who is:
(1) Black, which is a person having origins in any of the black racial groups in Africa; or
(2) Hispanic, which is a person of Spanish or Portuguese culture, with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race; or
(3) Asian American, which is
a person having origins in any of the original peoples of the Far East,
Southeast Asia, Indian
Subcontinent, Hawaii, or the Pacific Islands; or
(4) American Indian or Alaskan native, which is a person having origins in any of the original peoples of North America.
d. "Women's business enterprise" means a business that is:
(1) A sole proprietorship owned and controlled by a woman; or
(2) A partnership or joint venture owned and controlled by women in which at least 51[%] percent of the ownership is held by women and the management and daily business operations of which are controlled by one or more women who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more women who own it, and which is at least 51[%] percent owned by women, or if stock is issued, at least 51[%] percent of the stock is owned by one or more women.
e. "Minority and women's business enterprise" means a business that is:
(1) A partnership or joint venture owned and controlled by minorities and women in which at least 51 percent of the ownership interest is held by a combination of minorities and women, and the management and daily business operations of which are controlled by one or more of the minorities or women who own it; or
(2) A corporation or other entity whose management and daily business operations are controlled by one or more minorities or women who own it, and which is at least 51 percent owned by a combination of minorities and women, or if stock is issued, at least 51 percent of the stock is owned by a combination of minorities and women.
(cf: P.L.1987, c.137, s.1)
3. Section 4 of P.L.1985, c.539 (C.5:12-186) is amended to read as follows:
4. a. Notwithstanding the provisions of any law, rule, or regulation to the contrary, every casino licensee shall establish goals of expending at least 5[%] percent of the dollar value of its contracts for goods and services with minority, minority and women's, and women's business enterprises by the end of the third year following the receipt of a casino license, and 10[%] percent of the dollar value of its contracts for goods and services with minority, minority and women's, and women's business enterprises by the end of the sixth year following the receipt of a casino license; and each such licensee shall have a goal of expending 15[%] percent of the dollar value of its contracts for goods and services with minority, minority and women's, and women's business enterprises by the end of the 10th year following the receipt of a casino license. Each casino licensee shall be required to demonstrate annually that the requirements of this act have been met by submitting a report which shall include the total dollar value of contracts awarded for goods or services and the percentage thereof awarded to minority, minority and women's, and women's business enterprises.
As used in this section, "goods and services" shall not include (1) utilities and taxes; (2) financing costs, such as mortgages, loans or any other type of debt; (3) medical insurance; (4) dues and fees to the Atlantic City Casino Association; (5) fees and payments to a parent or affiliated company of the casino licensee other than those that represent fees and payments for goods and services supplied by non-affiliated persons through an affiliated company for the use or benefit of the casino licensee; and (6) rents paid for real property and any payments constituting the price of an interest in real property as a result of a real estate transaction.
b. A casino licensee shall make a good faith effort to meet the requirements of this section and shall annually demonstrate to the division that such an effort was made.
c. A casino licensee may fulfill no more than 70[%] percent of its obligation or part of it under this act by requiring a vendor to set aside a portion of his contract for minority, minority and women's, or women's business enterprises. Upon request, the licensee shall provide the division with proof of the amount of the set-aside.
(cf: P.L.2011, c.19, s.111)
4. Section 5 of P.L.1985, c.539 (C.5:12-187) is amended to read as follows:
5. a. Every casino licensee shall establish goals of expending at least 5[%] percent of the dollar value of its bus business with minority, minority and women's, and women's business enterprises by the end of the third year following the receipt of a casino license, and 10[%] percent of the dollar value of its bus business with minority, minority and women's, and women's business enterprises by the end of the sixth year following the receipt of a casino license; and each such licensee shall have a goal of expending 15[%] percent of the dollar value of its bus business with minority, minority and women's, and women's business enterprises by the end of the 10th year following the receipt of a casino license. Each casino licensee shall be required to demonstrate annually that the requirements of this act have been met by submitting a report which shall include the total bus business expended and the percentage thereof awarded to minority and women's business enterprises.
b. A casino licensee shall make a good faith effort to meet the requirements of this section.
(cf: P.L.2011, c.19, s.112)
5. Section 7 of P.L.1987, c.137 (C.5:12-187.1) is amended to read as follows:
7. If the division determines that the provisions of sections 4 and 5 of P.L.1985, c.539 (C.5:12-186 and C.5:12-187) relating to expenditures and assignments to minority, minority and women's, and women's business enterprises have not been met by a licensee, the division may recommend to the commission the suspension or revocation of the casino license, and the commission may, in its discretion, revoke or suspend the license, or the division may fine or impose appropriate conditions on the licensee, to ensure that the goals for expenditures and assignments to minority, minority and women's, and women's business enterprises are met; except that if a determination is made that a casino licensee has failed to demonstrate compliance with the provisions of sections 4 and 5 of P.L.1985, c.539 (C.5:12-186 and C.5:12-187), a casino licensee will have 90 days from the date of the determination of noncompliance within which to comply with the provisions of those sections.
(cf: P.L.2011, c.19, s.113)
6. R.S.10:2-1 is amended to read as follows:
10:2-1. Antidiscrimination provisions. Every contract for or on behalf of the State or any county or municipality or other political subdivision of the State, or any agency of or authority created by any of the foregoing, for the construction, alteration or repair of any public building or public work or for the acquisition of materials, equipment, supplies or services shall contain provisions by which the contractor agrees that:
a. In the hiring of persons for the performance of work under this contract or any subcontract hereunder, or for the procurement, manufacture, assembling or furnishing of any such materials, equipment, supplies or services to be acquired under this contract, no contractor, nor any person acting on behalf of such contractor or subcontractor, shall, by reason of race, creed, color, national origin, ancestry, marital status, gender identity or expression, affectional or sexual orientation or sex, discriminate against any person who is qualified and available to perform the work to which the employment relates;
b. No contractor, subcontractor, nor any person on his behalf shall, in any manner, discriminate against or intimidate any employee engaged in the performance of work under this contract or any subcontract hereunder, or engaged in the procurement, manufacture, assembling or furnishing of any such materials, equipment, supplies or services to be acquired under such contract, on account of race, creed, color, national origin, ancestry, marital status, gender identity or expression, affectional or sexual orientation or sex;
c. There may be deducted from the amount payable to the contractor by the contracting public agency, under this contract, a penalty of $50.00 for each person for each calendar day during which such person is discriminated against or intimidated in violation of the provisions of the contract; and
d. This contract may be canceled or terminated by the contracting public agency, and all money due or to become due hereunder may be forfeited, for any violation of this section of the contract occurring after notice to the contractor from the contracting public agency of any prior violation of this section of the contract.
No provision in this section shall be construed to prevent a board of education from designating that a contract, subcontract, or other means of procurement of goods, services, equipment, or construction shall be awarded to a small business enterprise, minority business enterprise, minority and women's business enterprise, or [a] women's business enterprise pursuant to P.L.1985, c.490 (C.18A:18A-51 et seq.).
(cf: P.L.2006, c.100, s.1)
7. Section 8 of P.L.1962, c.37 (C.10:5-2.1) is amended to read as follows:
8. Nothing contained in this act or in P.L. 1945, c. 169 (C. 10:5-1 et seq.) shall be construed to require or authorize any act prohibited by law, nor to prevent the award of a contract to a small business enterprise, minority business enterprise, minority and women's business enterprise, or women's business enterprise under P.L.1985, c.490 (C.18A:18A-51 et seq.) nor to conflict with the provisions of chapter 2 (child labor) of Title 34 of the Revised Statutes, nor to require the employment of any person under the age of 18, nor to prohibit the establishment and maintenance of bona fide occupational qualifications or the establishment and maintenance of apprenticeship requirements based upon a reasonable minimum age, nor to prevent the termination or change of the employment of any person who in the opinion of the employer, reasonably arrived at, is unable to perform adequately the duties of employment, nor to preclude discrimination among individuals on the basis of competence, performance, conduct, or any other reasonable standards, nor to interfere with the operation of the terms or conditions and administration of any bona fide retirement, pension, employee benefit or insurance plan or program, including any State or locally administered public retirement system, provided that the provisions of those plans or programs are not used to establish an age for mandatory retirement.
(cf: P.L.1988, c.37, s.9)
8. N.J.S.18A:18A-15 is amended to read as follows:
18A:18A-15. Specifications generally. Any specifications for the provision or performance of goods or services under this chapter shall be drafted in a manner to encourage free, open and competitive bidding. In particular, no specifications under this chapter may:
a. Require any standard, restriction, condition or limitation not directly related to the purpose, function or activity for which the contract is awarded; or
b. Require that any bidder be a resident of, or that the bidder's place of business be located in, the county or school district in which the contract will be awarded or performed, unless the physical proximity of the bidder is requisite to the efficient and economical performance of the contract; or
c. Discriminate on the basis of race, religion, sex, national origin creed, color, ancestry, age, marital status, affectional or sexual orientation, familial status, liability for service in the Armed Forces of the United States, or nationality; or
d. Require, with regard to any contract, the furnishing of any "brand name," but may in all cases require "brand name or equivalent," except that if the goods or services to be provided or performed are proprietary, such goods or services may be purchased by stipulating the proprietary goods or services in the bid specification in any case in which the resolution authorizing the contract so indicates, and the special need for such proprietary goods or services is directly related to the performance, completion or undertaking of the purpose for which the contract is awarded; or
e. Fail to include any option for renewal, extension, or release which the board of education may intend to exercise or require; or any terms and conditions necessary for the performance of any extra work; or fail to disclose any matter necessary to the substantial performance of the contract.
The specifications for every contract for public work, the entire cost whereof will exceed $20,000.00, shall provide that the board of education, through its authorized agent, shall upon completion of the contract report to the department as to the contractor's performance, and shall also furnish such report from time to time during performance if the contractor is then in default.
Any specification which knowingly excludes prospective bidders by reason of the impossibility of performance, bidding or qualification by any but one bidder, except as provided herein, shall be null and void and of no effect and shall be readvertised for receipt of new bids, and the original contract shall be set aside by the board of education.
No provision in this section shall be construed to prevent a board of education from designating that a contract for goods or services shall be awarded to a small business enterprise, a minority business enterprise, a minority and women's business enterprise, or a women's business enterprise pursuant to P.L.1985, c.490 (C.18A:18A-51 et seq.).
Any prospective bidder who wishes to challenge a bid specification shall file such challenges in writing with the purchasing agent no less than three business days prior to the opening of the bids. Challenges filed after that time shall be considered void and having no impact on the board of education or the award of a contract.
(cf: P.L.1999, c.440, s.63)
9. Section 1 of P.L.1985, c.490 (C.18A:18A-51) is amended to read as follows:
1. As used in this act:
a. "Minority" means a person who is:
(1) Black, which is a person having origins in any of the black racial groups in Africa; or
(2) Hispanic, which is a person of Spanish or Portuguese culture, with origins in Mexico, South America, Central America, or the Caribbean Islands, regardless of race; or
(3) Asian-American, which is a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, Hawaii, or the Pacific Islands; or
(4) American Indian or Alaskan native, which is a person having origins in any of the original peoples in North America;
b. "Women's business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S.18A:18A-27 and which is:
(1) A sole proprietorship owned and controlled by a woman;
(2) A partnership or joint venture owned and controlled by women in which at least 51[%] percent of the ownership is held by women and the management and daily business operations of which are controlled by one or more women who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more women who own it, and which is at least 51[%] percent owned by women, or if stock is issued, at least 51[%] percent of the stock is owned by one or more women;
c. "Minority business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S.18A:18A-27 and which is:
(1) A sole proprietorship, owned and controlled by a minority;
(2) A partnership or joint venture owned and controlled by minorities in which at least 51[%] percent of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it, and which is at least 51[%] percent owned by one or more minorities, or if stock is issued, at least 51[%] percent of the stock is owned by one or more minorities;
d. "Small business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S.18A:18A-27 and which is a sole proprietorship, partnership or corporation which is a size and type defined by the Commissioner of the Department of Commerce, Energy and Economic Development;
e. "Set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract for which bids are invited and accepted only from small business enterprises, minority business enterprises or women's business enterprises, as appropriate, (2) a portion of a contract when that portion has been so designated, or (3) any other purchase or procurement so designated; [and]
f. "Total procurements" means all purchases, contracts or acquisitions of a board of education, whether by competitive bidding, single source contracting, or other method of procurement, as prescribed or permitted by law [.]; and
g. "Minority and women's business" means a business which is:
(1) A partnership or joint venture owned and controlled by minorities and women in which at least 51 percent of the ownership interest is held by a combination of minorities and women and the management and daily business operations of which are controlled by one or more of the minorities or women who own it; or
(2) A corporation or other entity whose management and daily business operations are controlled by one or more minorities or women who own it, and of which at least 51 percent of the legal beneficial ownership is held by a combination of minorities and women.
(cf: P.L.1988, c.37, s.2)
10. Section 2 of P.L.1985, c.490 (C.18A:18A-52) is amended to read as follows:
2. a. A board of education may, by resolution, establish a minority business enterprise set-aside program. In authorizing such a program, the board of education shall establish a goal of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to minority business enterprises.
b. A board of education may, by resolution, establish a women's business enterprise set-aside program. In authorizing such a program, the board of education shall establish a goal of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to women's business enterprises.
c. A board of education may, by resolution, establish a small business enterprise set-aside program. In authorizing such a program, the board of education shall establish a goal of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to small business enterprises.
d. A board of education may, by resolution, establish a minority and women's business enterprise set-aside program. In authorizing such a program, the board of education shall establish a goal of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to minority and women's business enterprises.
(cf: P.L.1988, c.37, s.3)
11. Section 3 of P.L.1985, c.490 (C.18A:18A-53) is amended to read as follows:
3. a. Any goal established pursuant to section 2 of this act, P.L.1985, c.490 (C.18A:18A-51 et seq.), may be attained by requiring that a portion of a contract shall be subcontracted to a small business enterprise, minority business enterprise, minority and women's business enterprise, or women's business enterprise, in addition to designating entire contracts to these enterprises.
b. Each board of education shall make a good faith effort to attain any goal established.
(cf: P.L.1988, c.37, s.4)
12. Section 5 of P.L.1985, c.490 (C.18A:18A-55) is amended to read as follows:
5. Notwithstanding the provisions of any law to the contrary, a board of education which has established a small business enterprise set-aside program, a minority business enterprise set-aside program, a minority and women's business enterprise set-aside program, or a women's business enterprise set-aside program shall designate that a contract, subcontract, or other means of procurement of goods, services, equipment, or construction shall be awarded to a small business enterprise, a minority business enterprise, a minority and women's business enterprise, or a women's business enterprise, if the board is likely to receive bids from at least two small business enterprises, minority business enterprises, minority and women's business enterprises, or women's business enterprises, as appropriate, at a fair and reasonable price.
The designations shall be made prior to any advertisement for bids, if required. Once designated, the advertisement for bids, if necessary, shall indicate that the contract to be awarded is a small business enterprise set-aside contract, a minority business enterprise set-aside contract, a minority and women's business enterprise set-aside contract, or a women's business enterprise set-aside contract, as appropriate. All advertisements for bids shall be published in at least one newspaper which will best provide notice thereof to small business enterprises, minority business enterprises, minority and women's business enterprises, or [to] women's business enterprises, as appropriate, sufficiently in advance of the date fixed for receiving the bids to promote competitive bidding, but shall not be published less than 10 days prior to that date.
(cf: P.L.1988, c.37, s.5)
13. Section 6 of P.L.1985, c.490 (C.18A:18A-56) is amended to read as follows:
6. a. If the board of education determines that two bids from small [businesses] business enterprises, minority business enterprises, minority and women's businesses, or women's businesses cannot be obtained, the board may withdraw the designation of the set-aside contract and resolicit bids on an unrestricted basis pursuant to the provisions of N.J.S.18A:18A-1 et seq. The cancelled designation shall not be considered in determining whether or not the board attained its goal established pursuant to section 2 of this act, P.L.1985, c.490 (C.18A:18A-51 et seq.).
b. If the board of education determines that the acceptance of the lowest responsible bid will result in the payment of an unreasonable price, the board shall reject all bids and withdraw the designation of the set-aside contract. Small business enterprises, minority business enterprises, minority and women's business enterprises, or women's business enterprises, as appropriate, shall be notified in writing of the set-aside cancellation, the reasons for the rejection and the board's intent to resolicit bids on an unrestricted basis pursuant to the provisions of N.J.S.18A:18A-1 et seq. The cancelled bid solicitation shall not be considered in determining whether or not the board attained its goal established pursuant to section 2 of this act, P.L.1985, c.490 (C.18A:18A-51 et seq.).
(cf: P.L.1988, c.37, s.6)
14. Section 7 of P.L.1985, c.490 (C.18A:18A-57) is amended to read as follows:
7. Any board of education which has established a small business set-aside program, a minority business enterprise set-aside program, a minority and women's business enterprise set-aside program, or a women's business enterprise set-aside program shall prepare a report by January 31 of each year describing the board's efforts in attaining the set-aside goals and the percentage of the dollar value of total procurements awarded in the immediately preceding local fiscal year. The board of education shall publish a list of its attainments in at least one newspaper circulating in the school district by March 1 of each year.
(cf: P.L.1988, c.37, s.7)
15. Section 13 of P.L.1985, c.490 (C.18A:18A-59) is amended to read as follows:
13. Where the local board of education determines that a business has been classified as a small business enterprise, minority business enterprise, minority and women's business enterprise, or women's business enterprise on the basis of false information knowingly supplied by the business and has been awarded a contract to which it would not otherwise have been entitled under this act, P.L.1985, c.490 (C.18A:18A-51 et seq.), the local board of education shall have the authority to:
a. Assess the business any difference between the contract amount and what the local board of education's cost would have been if the contract had not been awarded in accordance with the provisions of this act;
b. In addition to the amount due under subsection a. of this section, assess the business a penalty in an amount of not more than 10[%] percent of the amount of the contract involved; and
c. Order the business ineligible to transact any business with the local board of education for a period to be determined by the local board of education.
Prior to any final determination, assessment, or order under this section, the local board of education shall afford the business an opportunity for a hearing on the reasons for the imposition of the penalties set forth in subsection a., b., or c. of this section.
(cf: P.L.1988, c.37, s.11)
16. Section 7 of P.L.2009, c.307 (C.24:6I-7) is amended to read as follows:
7. a. (1) The commission shall accept applications from entities for permits to operate as medical cannabis cultivators, medical cannabis manufacturers, and medical cannabis dispensaries. For the purposes of this section, the term "permit" shall be deemed to include a conditional permit issued pursuant to subsection d. of section 11 of P.L.2019, c.153 (C.24:6I-7.1) and any permit issued to a microbusiness pursuant to subsection e. of section 11 of P.L.2019, c.153 (C.24:6I-7.1).
(2) (a) For a period of 18 months after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.):
(i) no applicant may concurrently hold more than one permit issued by the commission pursuant to this section, regardless of type; and
(ii) there shall be no more than 28 active medical cannabis cultivator permits, including medical cannabis cultivator permits deemed to be held by alternative treatment centers issued a permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) and medical cannabis cultivator permits deemed to be held by alternative treatment centers issued a permit subsequent to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.); provided that medical cannabis cultivator permits issued to microbusinesses pursuant to subsection e. of section 11 of P.L.2019, c.153 (C.24:6I-7.1) shall not count toward this limit.
(b) Commencing 18 months after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), a permit holder shall be authorized to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit, provided that no permit holder shall be authorized to concurrently hold more than one permit of each type. The permit holder may submit an application for a permit of any type that the permit holder does not currently hold prior to the expiration of the 18-month period described in subparagraph (a) of this paragraph, provided that no additional permit shall be awarded to the permit holder during the 18-month period.
(c) (i) The provisions of subparagraph (a) of this paragraph shall not apply to any alternative treatment center that was issued a permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), to any alternative treatment center that was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), to one of the four alternative treatment centers issued a permit pursuant to an application submitted after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) 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.) that are expressly exempt from the provisions of subsubparagraph (i) of subparagraph (a) of this paragraph, or to one of the three alternative treatment centers issued a permit pursuant to section 11 of P.L.2019, c.153 (C.24:6I-7.1) that are expressly exempt from the provisions of subsubparagraph (i) of subparagraph (a) of this paragraph, which alternative treatment centers shall be deemed to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit, and shall be authorized to engage in any conduct authorized pursuant to those permits in relation to the cultivation, manufacturing, and dispensing of medical cannabis.
(ii) In addition, each of the alternative treatment centers described in subsubparagraph (i) of this subparagraph, to which the provisions of subparagraph (a) of this paragraph shall not apply, shall, upon the adoption of the initial rules and regulations by the commission pursuant to subparagraph (a) of paragraph (1) of subsection d. of section 6 of P.L.2021, c.16 (C.24:6I-34), be deemed to either concurrently hold a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer License, a Class 5 Cannabis Retailer license, plus an additional Class 5 Cannabis Retailer license for each satellite dispensary authorized and established by the alternative treatment center pursuant to subparagraph (d) of this paragraph, and a Class 6 Cannabis Delivery license, or hold a Class 3 Cannabis Wholesaler license, and may also be deemed to hold a Class 4 Cannabis Distributor license. Any alternative treatment center deemed to hold one or more licenses as described in this subsubparagraph may begin to operate as any authorized class of cannabis establishment, or establishment and delivery service, or as a cannabis wholesaler and distributor, upon receipt of written approval from the municipality in which the proposed establishment or delivery service, or distributor is to be located and obtaining an initial license or licenses, as applicable, issued by the commission pursuant to paragraph (3) of subsection a. of section 33 of P.L.2021, c.16 (C.24:6I-46).
(d) (i) No entity may be issued or concurrently hold more than one medical cannabis cultivator permit, one medical cannabis manufacturer permit, or one medical cannabis dispensary permit at one time. An alternative treatment center which has been issued a permit to dispense medical cannabis from a medical cannabis dispensary shall be authorized to maintain up to two satellite dispensaries. A medical cannabis dispensary seeking to establish a satellite dispensary location shall obtain commission approval in accordance with P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2021, c.16 (C.24:6I-31 et al.) and, upon commission approval, shall be authorized to establish and maintain up to two satellite dispensary locations.
(ii) Notwithstanding the provisions of subsubparagraph (i) of this subparagraph, an investor, investor group, or fund that provides significant financial or technical assistance or the significant use of intellectual property, or a combination thereof, to an applicant for a medical cannabis dispensary permit, which applicant has been certified as a minority business pursuant to P.L.1986, c.195 (C.52:27H-21.18 et seq.), a minority and women's business pursuant to P.L.1986, c.195 (C.52:27H-21.18 et seq.), a women's business pursuant to P.L.1986, c.195 (C.52:27H-21.18 et seq.), or is a disabled-veterans' business, as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), may own up to a 35 percent interest in up to seven entities that have been issued a medical cannabis dispensary permit, provided that each such medical cannabis dispensary is a certified minority, minority and women's, or women's business or a disabled-veterans' business, and the terms of the agreement to provide significant financial or technical assistance or the significant use of intellectual property, or a combination thereof, whether provided in the form of equity, a loan, or otherwise, including interest rates, returns, and fees, are commercially reasonable based on the terms generally provided to comparable businesses. The terms of the agreement for the provision of significant financial or technical assistance or the significant use of intellectual property, or a combination thereof, may include performance, quality, and other requirements as a condition of providing the financial or technical assistance or use of intellectual property. An applicant for a medical cannabis dispensary permit that has or will receive significant financial or technical assistance or the significant use of intellectual property under this subsubparagraph shall include with the permit application materials submitted to the commission a copy of the agreement to provide significant financial or technical assistance or significant use of intellectual property, or a combination thereof, which agreement shall be subject to review by the commission as provided in subsection f. of section 11 of P.L.2019, c.153 (C.24:6I-7.1).
An applicant for a medical cannabis dispensary permit that receives significant financial or technical assistance or the significant use of intellectual property under this subsubparagraph shall pay back to the investor, investor group, or fund the full value of the financial or technical assistance or intellectual property provided under the agreement, plus any applicable interest and fees, in a period not less than five years after the date of the agreement if the full value of the assistance or property is less than $100,000, in a period not less than seven years after the date of the agreement if the full value of the assistance or property is between $100,001 and $250,000, in a period not less than 10 years after the date of agreement if the full value of the assistance or property is between $250,001 and $500,000, and, subject to any terms and conditions imposed by a lender, in a period not less than 10 years after the date of the agreement if the full value of the assistance or property is greater than $500,000. An investor, investor group, or fund that has acquired an ownership interest in one or more entities that have been issued a medical cannabis dispensary permit as authorized under this subsubparagraph may maintain the ownership interest after the date the full value of the financial or technical assistance or use of intellectual property provided under the agreement, plus interest and fees, has been repaid by the applicant that received the assistance or use of intellectual property.
In no case may the controlling interest in the entity that holds a medical cannabis dispensary permit in which an investor, investor group, or fund owns an interest as authorized under this subsubparagraph revert to the investor, investor group, or fund in the event of a default or failure by the certified minority, minority and women's, or women's business or disabled-veterans' business, as applicable, and any such controlling interest may only be transferred to a certified minority, minority and women's, or women's business or a disabled-veterans' business.
An entity issued a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary permit, or an individual associated with the ownership or management of such entity, may invest in or participate in an investor group or a fund that meets the requirements of this subsubparagraph with respect to a Class 5 cannabis retailer license or an alternative treatment center permit.
(e) No entity issued a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary permit may concurrently hold a clinical registrant permit issued pursuant to section 13 of P.L.2019, c.153 (C.24:6I-7.3), and no entity issued a clinical registrant permit pursuant to section 13 of P.L.2019, c.153 (C.24:6I-7.3) may concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, or a medical cannabis dispensary permit.
(f) Any medical cannabis dispensary permit holder may be approved by the commission to operate a cannabis consumption area, provided that the permit holder otherwise meets the requirements of section 28 of P.L.2019, c.153 (C.24:6I-21).
(g) An alternative treatment center that was issued a permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), that was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application 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.), or that was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), shall be required to submit an attestation signed by a bona fide labor organization stating that the alternative treatment center has entered into a labor peace agreement with such bona fide labor organization no later than 100 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) or no later than 100 days after the date the alternative treatment center first opens, whichever date is later. The maintenance of a labor peace agreement with a bona fide labor organization shall be an ongoing material condition of maintaining the alternative treatment center's permit. The failure to submit an attestation as required pursuant to this subparagraph within 100 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) or within 100 days after the alternative treatment center first opens, as applicable, shall result in the suspension or revocation of the alternative treatment center's permit, provided that the commission may grant an extension to this deadline to the alternative treatment center based upon extenuating circumstances or for good cause shown.
As used in this subparagraph, "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.
(h) An alternative treatment center that was issued a permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), that was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application 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.), or that was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), shall be permitted to cultivate from up to two physical locations, provided that the alternative treatment center's combined mature cannabis plant grow canopy between both locations shall not exceed 150,000 square feet of bloom space or the square footage of canopy permitted under the largest tier in the tiered system adopted by the commission pursuant to paragraph (2) of subsection b. of section 21 of P.L.2021, c.16 (C.24:6I-38).
(3) The commission shall seek to ensure the availability of a sufficient number of medical cannabis cultivators, medical cannabis manufacturers, and medical cannabis dispensaries throughout the State, pursuant to need, including at least two each in the northern, central, and southern regions of the State. Medical cannabis cultivators, medical cannabis manufacturers, and medical cannabis dispensaries issued permits pursuant to this section may be nonprofit or for-profit entities.
(4) The commission shall periodically evaluate whether the number of medical cannabis cultivator, medical cannabis manufacturer, and medical cannabis dispensary permits issued are sufficient to meet the needs of qualifying patients in the State, and shall accept new applications and issue such additional permits as shall be necessary to meet those needs. The types of permits requested and issued, and the locations of any additional permits that are authorized, shall be in the discretion of the commission based on the needs of qualifying patients in the State.
(5) (a) A medical cannabis cultivator shall be authorized to: acquire a reasonable initial and ongoing inventory, as determined by the commission, of cannabis seeds or seedlings and paraphernalia; possess, cultivate, plant, grow, harvest, and package medical cannabis, including prerolled forms, for any authorized purpose, including, but not limited to, research purposes; and deliver, transfer, transport, distribute, supply, or sell medical cannabis and related supplies to any medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant in the State. In no case shall a medical cannabis cultivator operate or be located on land that is valued, assessed or taxed as an agricultural or horticultural use pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).
(b) A medical cannabis manufacturer shall be authorized to: purchase or acquire medical cannabis from any medical cannabis cultivator, medical cannabis manufacturer, or clinical registrant in the State; possess and utilize medical cannabis in the manufacture and creation of medical cannabis products; and deliver, transfer, transport, supply, or sell medical cannabis products and related supplies to any medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant in the State.
(c) A medical cannabis dispensary shall be authorized to: purchase or acquire medical cannabis from any medical cannabis cultivator, medical cannabis dispensary, or clinical registrant in the State and medical cannabis products and related supplies from any medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant in the State; purchase or acquire paraphernalia from any legal source; and distribute, supply, sell, or dispense medical cannabis, medical cannabis products, paraphernalia, and related supplies to qualifying patients or their designated or institutional caregivers who are registered with the commission pursuant to section 4 of P.L.2009, c.307 (C.24:6I-4). A medical cannabis dispensary may furnish medical cannabis, medical cannabis products, paraphernalia, and related supplies to a medical cannabis handler for delivery to a registered qualifying patient, designated caregiver, or institutional caregiver consistent with the requirements of subsection i. of section 27 of P.L.2019, c.153 (C.24:6I-20).
(6) A medical cannabis cultivator shall not be limited in the number of strains of medical cannabis cultivated, and a medical cannabis manufacturer shall not be limited in the number or type of medical cannabis products manufactured or created. A medical cannabis manufacturer may package, and a medical cannabis dispensary may directly dispense medical cannabis and medical cannabis products to qualifying patients and their designated and institutional caregivers in any authorized form. Authorized forms shall include dried form, oral lozenges, topical formulations, transdermal form, sublingual form, tincture form, or edible form, or any other form as authorized by the commission. Edible form shall include pills, tablets, capsules, drops or syrups, oils, chewable forms, and any other form as authorized by the commission, except that the edible forms made available to minor patients shall be limited to forms that are medically appropriate for children, including pills, tablets, capsules, chewable forms, and drops, oils, syrups, and other liquids.
(7) Nonprofit medical cannabis cultivators, medical cannabis manufacturers, and medical cannabis dispensaries need not be recognized as a 501(c)(3) organization by the federal Internal Revenue Service.
b. The commission shall require that an applicant provide such information as the commission determines to be necessary pursuant to regulations adopted pursuant to P.L.2009, c.307 (C.24:6I-1 et al.).
c. A person who has been convicted of a crime of the first, second, or third degree under New Jersey law or of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (11) or (12) of subsection b. of N.J.S.2C:35-5, or paragraph (3) or (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a permit to operate as a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant or be a director, officer, or employee of a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, unless such conviction occurred after the effective date of P.L.2009, c.307 (C.24:6I-1 et al.) and was for a violation of federal law relating to possession or sale of cannabis for conduct that is authorized under P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.).
d. (1) The commission shall require each applicant seeking a permit to operate as, to be a director, officer, or employee of, or to be a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant to undergo a criminal history record background check.
Any individual seeking to become a director, officer, or employee of a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, after issuance of an initial permit shall notify the commission and shall complete a criminal history record background check and provide all information as may be required by the commission as a condition of assuming a position as director, officer, or employee of the permitted entity. An individual who secures an investment interest or gains the authority to make controlling decisions in a permitted entity that makes the individual a significantly involved person shall notify the commission, complete a criminal history record background check, and provide all information as may be required by the commission no later than 30 days after the date the individual becomes a significantly involved person, or any permit issued to the individual or group of which the significantly involved person is a member shall be revoked and the individual or group shall be deemed ineligible to hold any ownership or investment interest in a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant for a period of at least two years, commencing from the date of revocation, and for such additional period of time as the commission deems appropriate, based on the duration of the nondisclosure, the size of the individual's or group's investment interest in the permitted entity, the amount of profits, revenue, or income realized by the individual or group from the permitted entity during the period of nondisclosure, and whether the individual had a disqualifying conviction or would otherwise have been deemed ineligible to be a significantly involved person in a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant.
For purposes of this section, the term "applicant" shall include any owner, director, officer, or employee of, and any significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant. The commission is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable State and federal laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the commission in a timely manner when requested pursuant to the provisions of this section.
An applicant who is required to undergo a criminal history record background check pursuant to this section shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished the applicant's written consent to that check. An applicant who is required to undergo a criminal history record background check pursuant to this section who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a permit to operate, or authorization to be employed at or to be a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.
(2) The commission shall not approve an applicant for a permit to operate, or authorization to be employed at or to be a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant if the criminal history record background information of the applicant reveals a disqualifying conviction as set forth in subsection c. of this section.
(3) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the commission shall provide written notification to the applicant of the applicant's qualification or disqualification for a permit to operate or be a director, officer, or employee of, or a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant.
If the applicant is disqualified because of a disqualifying conviction pursuant to the provisions of this section, the conviction that constitutes the basis for the disqualification shall be identified in the written notice.
(4) The Division of State Police shall promptly notify the commission in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the commission shall make a determination regarding the continued eligibility to operate or be a director, officer, or employee of, or a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant.
(5) Notwithstanding the provisions of subsection c. of this section to the contrary, the commission may offer provisional authority for an applicant to be an owner, director, officer, or employee of, or a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant for a period not to exceed three months if the applicant submits to the commission a sworn statement attesting that the person has not been convicted of any disqualifying conviction pursuant to this section.
(6) Notwithstanding the provisions of subsection c. of this section to the contrary, no applicant to be an owner, director, officer, or employee of, or a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant shall be disqualified on the basis of any conviction disclosed by a criminal history record background check conducted pursuant to this section if the individual has affirmatively demonstrated to the commission clear and convincing evidence of rehabilitation. In determining whether clear and convincing evidence of rehabilitation has been demonstrated, the following factors shall be considered:
(a) the nature and responsibility of the position which the convicted individual would hold, has held, or currently holds;
(b) the nature and seriousness of the crime or offense;
(c) the circumstances under which the crime or offense occurred;
(d) the date of the crime or offense;
(e) the age of the individual when the crime or offense was committed;
(f) whether the crime or offense was an isolated or repeated incident;
(g) any social conditions which may have contributed to the commission of the crime or offense; and
(h) any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of those who have had the individual under their supervision.
e. The commission shall issue a permit to operate or be an owner, director, officer, or employee of, or a significantly involved person in, a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary if the commission finds that issuing such a permit would be consistent with the purposes of P.L.2009, c.307 (C.24:6I-1 et al.) and the requirements of this section and section 11 of P.L.2019, c.153 (C.24:6I-7.1) are met. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. A permit to operate a medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis dispensary issued on or after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) shall be valid for one year and shall be renewable annually.
f. A person who has been issued a permit pursuant to this section or a clinical registrant permit pursuant to section 13 of P.L.2019, c.153 (C.24:6I-7.3) shall display the permit at the front entrance to the premises of the permitted facility at all times when the facility is engaged in conduct authorized pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) involving medical cannabis, including, but not limited to, the cultivating, manufacturing, or dispensing of medical cannabis.
g. A medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant shall report any change in information to the commission not later than 10 days after such change, or the permit shall be deemed null and void.
h. Each medical cannabis dispensary and clinical registrant shall maintain and make available on its Internet website, if any, a standard price list that shall apply to all medical cannabis, medical cannabis products, and related supplies and paraphernalia sold or dispensed by the medical cannabis dispensary or clinical registrant, which prices shall be reasonable and consistent with the actual costs incurred by the medical cannabis dispensary or clinical registrant in connection with acquiring and selling, transferring, or dispensing the medical cannabis or medical cannabis product and related supplies and paraphernalia. The prices charged by the medical cannabis dispensary or clinical registrant shall not deviate from the prices indicated on the entity's current price list, provided that a price list maintained by a medical cannabis dispensary or clinical registrant may allow for medical cannabis to be made available at a reduced price or without charge to qualifying patients who have a demonstrated financial hardship, as that term shall be defined by the commission by regulation. A price list required pursuant to this subsection may be revised no more than once per month, and each medical cannabis dispensary and clinical registrant shall be responsible for ensuring that the commission has a copy of the facility's current price list. A medical cannabis dispensary or clinical registrant shall be liable to a civil penalty of $1,000 for each sale that occurs at a price that deviates from the entity's current price list, and to a civil penalty of $10,000 for each week during which the entity's current price list is not on file with the commission. Any civil penalties collected by the commission pursuant to this section shall be deposited in the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund" established under section 41 of P.L.2021, c.16 (C.24:6I-50), and used by the commission for the purposes of administering the State medical cannabis program.
i. The commission shall adopt regulations to:
(1) require such written documentation of each delivery or dispensation of cannabis to, and pickup of cannabis for, a registered qualifying patient, including the date and amount dispensed, and, in the case of delivery, the date and times the delivery commenced and was completed, the address where the medical cannabis was delivered, the name of the patient or caregiver to whom the medical cannabis was delivered, and the name, handler certification number, and delivery certification number of the medical cannabis handler who performed the delivery, to be maintained in the records of the medical cannabis dispensary or clinical registrant, as the commission determines necessary to ensure effective documentation of the operations of each medical cannabis dispensary or clinical registrant;
(2) monitor, oversee, and investigate all activities performed by medical cannabis cultivators, medical cannabis manufacturers, medical cannabis dispensaries, and clinical registrants;
(3) ensure adequate security of all facilities 24 hours per day and security of all delivery methods to registered qualifying patients; and
(4) establish thresholds for administrative action to be taken against a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant and its employees, officers, investors, directors, or governing board pursuant to subsection m. of this section, including, but not limited to, specific penalties or disciplinary actions that may be imposed in a summary proceeding.
j. (1) Each medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, and clinical registrant shall require the owners, directors, officers, and employees at the permitted facility to complete at least eight hours of ongoing training each calendar year. The training shall be tailored to the roles and responsibilities of the individual's job function, and shall include training on confidentiality and such other topics as shall be required by the commission.
(2) Each medical cannabis dispensary and clinical registrant shall consider whether to make interpreter services available to the population served, including for individuals with a visual or hearing impairment. The commission shall provide assistance to any medical cannabis dispensary or clinical registrant that seeks to provide such services in locating appropriate interpreter resources. A medical cannabis dispensary or clinical registrant shall assume the cost of providing interpreter services pursuant to this subsection.
k. (1) The first six alternative treatment centers issued permits following the effective date of P.L.2009, c.307 (C.24:6I-1 et al.) shall be authorized to sell or transfer such permit and other assets to a for-profit entity, provided that: the sale or transfer is approved by the commission; each owner, director, officer, and employee of, and significantly involved person in, the entity seeking to purchase or receive the transfer of the permit, undergoes a criminal history record background check pursuant to subsection d. of this section, provided that nothing in this subsection shall be construed to require any individual to undergo a criminal history record background check if the individual would otherwise be exempt from undergoing a criminal history record background check pursuant to subsection d. of this section; the commission finds that the sale or transfer of the permit would be consistent with the purposes of P.L.2009, c.307 (C.24:6I-1 et al.); and no such sale or transfer shall be authorized more than one year after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.). The sale or transfer of a permit pursuant to this subsection shall not be subject to the requirements of the "New Jersey Nonprofit Corporation Act," N.J.S.15A:1-1 et seq., provided that, prior to or at the time of the sale or transfer, all debts and obligations of the nonprofit entity are either paid in full or assumed by the for-profit entity purchasing or acquiring the permit, or a reserve fund is established for the purpose of paying in full the debts and obligations of the nonprofit entity, and the for-profit entity pays the full value of all assets held by the nonprofit entity, as reflected on the nonprofit entity's balance sheet, in addition to the agreed-upon price for the sale or transfer of the entity's alternative treatment center permit. Until such time as the members of the Cannabis Regulatory Commission are appointed and the commission first organizes, the Department of Health shall have full authority to approve a sale or transfer pursuant to this paragraph.
(2) The sale or transfer of any interest of five percent or more in a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant permit shall be subject to approval by the commission and conditioned on the entity that is purchasing or receiving transfer of the interest in the medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant permit completing a criminal history record background check pursuant to the requirements of subsection d. of this section.
l. No employee of any department, division, agency, board, or other State, county, or local government entity involved in the process of reviewing, processing, or making determinations with regard to medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant permit applications shall have any direct or indirect financial interest in the cultivating, manufacturing, or dispensing of medical cannabis or related paraphernalia, or otherwise receive anything of value from an applicant for a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant permit in exchange for reviewing, processing, or making any recommendations with respect to a permit application.
m. In the event that a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant fails to comply with any requirements set forth in P.L.2009, c.307 (C.24:6I-1 et al.) or any related law or regulation, the commission may invoke penalties or take administrative action against the medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant and its employees, officers, investors, directors, or governing board, including, but not limited to, assessing fines, referring matters to another State agency, and suspending or terminating any permit held by the medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant. Any penalties imposed or administrative actions taken by the commission pursuant to this subsection may be imposed in a summary proceeding.
(cf: P.L.2025, c.86, s.1)
17. Section 12 of P.L.2019, c.153 (C.24:6I-7.2) is amended to read as follows:
12. 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, minority and women's, 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.) 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.), as a minority and 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.
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).
(cf: P.L.2021, c.252, c.3)
18. Section 14 of P.L.2009, c.307 (C.24:6I-12) is amended to read as follows:
14. a. The commissioner, or after the effective dates of P.L.2019, c.153 (C.24:6I-5.1 et al.) and P.L.2021, c.16 (C.24:6I-31 et al.), the commission, shall report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1):
(1) no later than one year after the effective date of P.L.2009, c.307 (C.24:6I-1 et al.), on the actions taken to implement the provisions of P.L.2009, c.307 (C.24:6I-1 et al.); and
(2) annually thereafter on the number of applications for registration with the commission, the number of qualifying patients registered, the number of designated and institutional caregivers registered, the nature of the qualifying medical conditions of the patients, the number of registrations revoked, the number of medical cannabis cultivator, medical cannabis manufacturer, and medical cannabis dispensary permits issued and revoked, the number and type of integrated curricula approved, established, and maintained in connection with an IC permit, the number of testing laboratories licensed, the number of clinical registrant permits issued and the nature of the clinical research conducted by each clinical registrant, any incidents of diversion of medical cannabis, information concerning racial, ethnic, disabled veteran, and gender diversity in the individuals issued and currently holding permits issued by the commission, the number of permit applications received from businesses owned by minorities, disabled veterans, minorities and women, and women and the number of such applications that were approved, the business development initiatives undertaken 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) and the outcomes or effects of those initiatives, statistics concerning arrests for drug offenses throughout the State and in areas where medical cannabis dispensaries are located, including information concerning racial disparities in arrest rates for drug offenses generally and cannabis offenses in particular, the number of motor vehicle stops by law enforcement involving violations of R.S.39:4-50, or section 5 of P.L.1990, c.103 (C.39:3-10.13) concerning operators of commercial motor vehicles, for driving under the influence of medical cannabis, or suspicion thereof, cataloged by the jurisdictions in which the stop occurred, and the race, ethnicity, gender, and age of the vehicle driver and any other vehicle occupants, the number of deliveries of medical cannabis performed and the percentage of total medical cannabis dispensations that were completed by delivery, and the number of health care practitioners authorizing patients for the medical use of cannabis, including the types of license or certification held by those practitioners; and
(3) beginning no later than one year after the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), and annually thereafter in the same report concerning information on medical cannabis activities or a separate report, information on:
(a) the number of citations, arrests, or charges for manufacturing, distributing, or possessing or having under control with the intent to distribute marijuana or hashish in violation of paragraph (12) of subsection b. of N.J.S.2C:35-5, or for obtaining or possessing marijuana or hashish in violation of paragraph (3) of subsection a. of N.J.S.2C:35-10, cataloged by the jurisdictions in which the acts resulting in the citations, arrests, or charges occurred, and the race, ethnicity, gender, and age of the persons cited, arrested, or charged;
(b) the number of motor vehicle stops by law enforcement involving violations of R.S.39:4-50, or section 5 of P.L.1990, c.103 (C.39:3-10.13) concerning operators of commercial motor vehicles, for driving under the influence of personal use cannabis or marijuana, or suspicion thereof, cataloged by the jurisdictions in which the stop occurred, and the race, ethnicity, gender, and age of the vehicle driver and any other vehicle occupants;
(c) the total number of personal use cannabis licenses issued since the distribution of the previous report to the Governor and Legislature, as well as the number for each class of license issued, and the total number and type of applicants that submitted applications for licenses and whether they were approved, reapproved, or denied; and
(d) the data compiled 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) about participation in the lawful operation of cannabis establishments, distributors, and delivery services by persons from socially and economically disadvantaged communities, including minority, disabled veterans', minority and women's, and women's business licensing and business development in the personal use cannabis marketplace, and the data shall include the office's analysis of the total number of licenses applied for and issued since the distribution of the previous report to the Governor and Legislature compared with the total number of minority businesses, minority and women's businesses, and women's businesses, as these terms are defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled veterans' businesses, as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), that submitted applications for licenses and whether they were approved, reapproved, or denied.
b. The reports shall not contain any identifying information of patients, caregivers, or health care practitioners.
c. (1) Within two years after the effective date of P.L.2009, c.307 (C.24:6I-1 et al.) and every two years thereafter, the commissioner or, after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), the commission, shall: evaluate whether there are sufficient numbers of medical cannabis cultivators, medical cannabis manufacturers, medical cannabis dispensaries, and clinical registrants to meet the needs of registered qualifying patients throughout the State; evaluate whether the maximum amount of medical cannabis allowed pursuant to P.L.2009, c.307 (C.24:6I-1 et al.) is sufficient to meet the medical needs of qualifying patients; and determine whether any medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant has charged excessive prices in connection with medical cannabis.
The commissioner or, after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), the commission, shall report all such findings no later than two years after the effective date of P.L.2009, c.307 (C.24:6I-1 et al.), and every two years thereafter, to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).
(2) The commission, beginning no later than one year after the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), may also include in its reports information concerning its periodic evaluation of whether the existing numbers of cannabis cultivators, cannabis manufacturers, cannabis wholesalers, cannabis distributors, cannabis retailers, and cannabis delivery services are sufficient to meet the personal use cannabis market demands of the State, and actions the commission may take to issue additional cannabis licenses as authorized by paragraph (1) of subsection a. of section 18 of P.L.2021, c.16 (C.24:6I-35), or if there is an oversupply of licenses, as well as information about any increase in the rates of use of marijuana and cannabis by persons under 21 years of age.
(cf: P.L.2021, c.16, s.7)
19. Section 32 of P.L.2019, c.153 (C.24:6I-25) is amended to read as follows:
32. a. There is hereby established in the commission an Office of Minority, Disabled Veterans, and Women Cannabis Business Development. The office shall be under the immediate supervision of a director. The director of the office shall be appointed by the Governor, and shall serve at the pleasure of the appointing Governor during the Governor's term of office and until a successor has been duly appointed and qualified. Any vacancy in the directorship occurring for any reason other than the expiration of the director's term of office shall be filled for the unexpired term only in the same manner as the original appointment. The director shall receive an annual salary as provided by law which shall be at an amount not to exceed the annual salary of the executive director of the commission.
b. (1) The office shall establish and administer, under the direction of the commission, unified practices and procedures for promoting participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities, including by prospective and existing ownership of minority businesses, minority and women's businesses, and women's businesses, as these terms are defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled veterans' businesses as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), to be issued medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, and clinical registrant permits, or cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, and cannabis delivery service licenses. These unified practices and procedures shall include the certification and subsequent recertification at regular intervals of a business as a minority, minority and women's, or women's business, or a disabled veterans' business, in accordance with eligibility criteria and a certification application process established by the commission through regulation in consultation with the office.
(2) The office shall conduct advertising and promotional campaigns, and shall disseminate information to the public, to increase awareness for participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities. To this end, the office shall sponsor seminars and informational programs, and shall provide information on the commission's Internet website, providing practical information concerning the medical cannabis and personal use cannabis industries, including information on business management, marketing, and other related matters.
c. (1) The office shall develop, recommend, and implement policies, practices, protocols, standards, and criteria designed to promote the formulation of medical cannabis business entities and personal use cannabis establishments, distributors, and delivery services and participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities, including by promoting applications for, and the issuance of, medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, and clinical registrant permits, and cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, and cannabis delivery services licenses, to certified minority, minority and women's, women's, and disabled veterans' businesses.
(a) The office shall evaluate the effectiveness of the measures designed to promote participation in the medical cannabis industry by considering whether the measures have resulted in new medical cannabis cultivator, medical cannabis manufacturer, and medical cannabis dispensary permits being issued in accordance with the provisions of subsection g. of section 12 of P.L.2019, c.153 (C.24:6I-7.2).
(b) The effectiveness of the office's measures designed to promote participation in the personal use cannabis industry shall be assessed by considering whether the measures have resulted in not less than 30 percent of the total number of licenses issued by the commission for personal use cannabis establishments, distributors, and delivery services under P.L.2021, c.16 (C.24:6I-31 et al.) being issued to minority, minority and women's, women's, and disabled veterans' businesses certified in accordance with the certification process established by the office pursuant to paragraph (1) of subsection b. of this section. Of the resulting total number of licenses issued for personal use cannabis establishments, distributors, and delivery services, the effectiveness of the office's measures shall be further assessed by considering whether those measures have resulted in not less than 15 percent of the licenses being issued to certified minority businesses, and not less than 15 percent of the licenses being issued to certified minority and women's, women's, and disabled veterans' businesses.
(2) The office shall periodically analyze the total number of permits and licenses issued by the commission as compared with the number of certified minority, minority and women's, women's, and disabled veterans' businesses that submitted applications for, and that were awarded, such permits and licenses. The office shall make good faith efforts to establish, maintain, and enhance the measures designed to promote the formulation and participation in the operation of medical cannabis entities and personal use cannabis establishments, distributors, and delivery services by persons from socially and economically disadvantaged communities consistent with the standards set forth in paragraph (1) of this subsection, and to coordinate and assist the commission with respect to its incorporation of these permitting and licensing measures into the application and review process for issuing permits and licenses under P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2021, c.16 (C.24:6I-31 et al.).
d. The office may review the commission's measures regarding participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities, and minority, minority and women's, women's, and disabled veterans' businesses, and make recommendations on relevant policy and implementation matters for the improvement thereof. The office may consult with experts or other knowledgeable individuals in the public or private sector on any aspect of its mission.
e. The office shall prepare information regarding its activities pursuant to this section concerning participation in the medical cannabis and personal use cannabis industries by persons from socially and economically disadvantaged communities, including medical cannabis and personal use cannabis business development initiatives for minority, minority and women's, women's, and disabled veterans' businesses participating in the medical and person use cannabis marketplaces, to be incorporated by the commission into its annual report submitted to the Governor and to the Legislature pursuant to section 14 of P.L.2009, c.307 (C.24:6I-12).
(cf: P.L.2021, c.16, s.15)
20. Section 1 of P.L.1985, c.482 (C.40A:11-41) is amended to read as follows:
1. As used in this act:
a. "County or municipal contracting agency" shall mean the governing body of a county or municipality or any department, board, commission, committee, authority or agency of a county or municipality but shall not include school districts;
b. "Minority group members" shall mean persons who are black, Hispanic, Portuguese, Asian-American, American Indian or Alaskan natives;
c. "Qualified women's business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by women and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);
d. "Qualified minority business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by minority group members and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);
e. "Qualified small business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated and meets all other qualifications as may be established in accordance with P.L.1981, c.283 (C.52:27H-21.1 et seq.);
f. "Set-aside contracts" shall mean (1) a contract for goods, equipment, construction, or services which is designated as a contract for which bids are invited and accepted only from qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises or qualified women's business enterprises, as appropriate, (2) a portion of a contract when that portion has been so designated, or (3) any other purchase or procurement so designated;
g. "Total procurements" shall mean all purchases, contracts or acquisitions of a county or municipal contracting agency, whether by competitive bidding, single source contracting, or other method of procurement, as prescribed or permitted by law;
h. "Veteran" means any resident of this State now or hereafter who has served in any branch of the Armed Forces of the United States or a Reserve component thereof or the National Guard of this State or another state as defined in section 1 of P.L.1963, c.109 (C.38A:1-1), and has been discharged honorably or under general honorable conditions from such service, except that the veteran shall present to the Adjutant General of the Department of Military and Veterans' Affairs sufficient evidence of a record of service, which shall include the applicant's DD-214, DD-215, or DD-256 form as issued by the federal government; NGB-22 or other approved separation forms as outlined by all branches of the Armed Forces; a county-issued veteran identification card pursuant to P.L.2012, c.30 (C.40A:9-78.1 et seq.); or a veteran identification card as issued by the United States Department of Veterans Affairs under the "Veterans Identification Card Act of 2015," (38 U.S.C. s.5706) and receive a determination of status no later than the date established for the submission of bids; [and]
i. "Qualified veteran business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by a veteran or that wherein at least twenty five percent of the required workforce for the contract are veterans, including new hires if additional workers are required to perform the contract, and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25). The business shall also submit forms quarterly to the contracting agency showing proof of veteran status for all the veteran employees[.] ; and
j. "Qualified minority and women's business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by a combination of minority group members and women, and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25).
(cf: P.L.2019, c.500, s.11)
21. Section 2 of P.L.1985, c.482 (C.40A:11-42) is amended to read as follows:
2. a. The governing body of a county or municipality may, by ordinance or resolution, as appropriate, establish a qualified minority business enterprise set-aside program. In authorizing such a program, the governing body of a county or municipality shall establish a goal for its contracting agencies of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to qualified minority business enterprises.
b. The governing body of a county or municipality may, by ordinance or resolution, as appropriate, establish a qualified women's business enterprise set-aside program. In authorizing such a program, the governing body of a county or municipality shall establish a goal for its contracting agencies of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to qualified women's business enterprises.
c. The governing body of a county or municipality may, by ordinance or resolution, as appropriate, establish a qualified small business enterprise set-aside program. In authorizing such a program, the governing body of a county or municipality shall establish a goal for its contracting agencies of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to qualified small business enterprises.
d. The governing body of a county or municipality may, by ordinance or resolution, as appropriate, establish a qualified veteran business enterprise set-aside program. In authorizing such a program, the governing body of a county or municipality shall establish a goal for its contracting agencies of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to qualified veteran business enterprises.
e. The governing body of a county or municipality may, by ordinance or resolution, as appropriate, establish a qualified minority and women's business enterprise set-aside program. In authorizing such a program, the governing body of a county or municipality shall establish a goal for its contracting agencies of setting aside a certain percentage of the dollar value of total procurements to be awarded as set-aside contracts to qualified minority and women's business enterprises.
(cf: P.L.2013, c.5, s.2)
22. Section 3 of P.L.1985, c.482 (C.40A:11-43) is amended to read as follows:
3. a. Any goal established pursuant to section 2 of this act, P.L.1985, c.482 (C.40A:11-41 et seq.), may be attained by requiring that a portion of a contract be subcontracted to a qualified small business enterprise, qualified veteran business enterprise, qualified minority business enterprise, qualified minority and women's business enterprise, or qualified women's business enterprise, in addition to designating entire contracts to these enterprises.
b. Each contracting agency shall make a good faith effort to attain any goal established by its governing body. The governing body shall evaluate each contracting agency's efforts by comparing the percentage of the dollar value of a contracting agency's total procurements awarded to qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises, qualified minority and women's business enterprises, or qualified women's business enterprises, as appropriate, to the percentage of the dollar value of the county's or municipality's total procurements awarded to qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises, qualified minority and women's business enterprises, or qualified women's business enterprises, as appropriate.
(cf: P.L.2013, c.5, s.3)
23. Section 5 of P.L.1985, c.482 (C.40A:11-45) is amended to read as follows:
5. Notwithstanding the provisions of any law to the contrary, a contracting agency of a county or municipality which has established a qualified small business enterprise set-aside program, a qualified veteran business enterprise set-aside program, a qualified minority business enterprise set-aside program, a qualified minority and women's business enterprise set-aside program, or a qualified women's business enterprise set-aside program shall designate that a contract, subcontract, or other means of procurement of goods, services, equipment, or construction be awarded to a qualified small business enterprise, a qualified veteran business enterprise, a qualified minority business enterprise, a qualified minority and women's business enterprise, or a qualified women's business enterprise, if a contracting agency is likely to receive bids from at least two qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises, qualified minority and women's business enterprises, or qualified women's business enterprises, as appropriate, at a fair and reasonable price.
Such designations shall be made prior to any advertisement for bids, if required. Once designated, the advertisement for bids, if necessary, shall indicate that the contract to be awarded is a qualified small business enterprise set-aside contract, qualified veteran business enterprise set-aside contract, a qualified minority business enterprise set-aside contract, a qualified minority and women's business enterprise set-aside contract, or a qualified women's business enterprise set-aside contract, as appropriate. All advertisements for bids shall be published in at least one newspaper which will best provide notice thereof to qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises, qualified minority and women's business enterprises, or [to] qualified women's business enterprises, as appropriate, sufficiently in advance of the date fixed for receiving the bids to promote competitive bidding, but shall not be published less than 10 days prior to that date.
(cf: P.L.2013, c.5, s.4)
24. Section 6 of P.L.1985, c.482 (C.40A:11-46) is amended to read as follows:
6. a. If the contracting agency determines that two bids from qualified small, qualified veteran, qualified minority, qualified minority and women's, or qualified women's businesses cannot be obtained, the contracting agency may withdraw the designation of the set-aside contract and resolicit bids on an unrestricted basis pursuant to the provisions of P.L.1971, c.198 (C.40A:11-1 et seq.). The cancelled designation shall not be considered in determining the percentage of contracts awarded pursuant to subsection b. of section 3 of this act, P.L.1985, c.482 (C.40A:11-41 et seq.).
b. If the contracting agency determines that the acceptance of the lowest responsible bid will result in the payment of an unreasonable price, the contracting agency shall reject all bids and withdraw the designation of the set-aside contract. Qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises, qualified minority and women's business enterprises, or qualified women's business enterprises, as appropriate, shall be notified in writing of the set-aside cancellation, the reasons for the rejection and the agency's intent to resolicit bids on an unrestricted basis pursuant to the provisions of P.L.1971, c.198 (C.40A:11-1 et seq.). The cancelled bid solicitation shall not be considered in determining the percentage of contracts awarded pursuant to subsection b. of section 3 of this act, P.L.1985, c.482 (C.40A:11-41 et seq.).
(cf: P.L.2013, c.5, s.5)
25. Section 7 of P.L.1985, c.482 (C.40A:11-47) is amended to read as follows:
7. Where the governing body of a county or municipality determines that a business has been classified as a qualified small business enterprise, qualified veteran business enterprise, qualified minority business enterprise, qualified minority and women's business enterprise, or qualified women's business enterprise on the basis of false information knowingly supplied by the business and has been awarded a contract to which it would not otherwise have been entitled under this act, P.L.1985, c.482 (C.40A:11-41 et seq.), the governing body shall have the authority to:
a. Assess against the business any difference between the contract and what the governing body's cost would have been if the contract had not been awarded in accordance with the provisions of this act;
b. In addition to the amount due under subsection a., assess against the business a penalty in an amount of not more than 10[%] percent of the amount of the contract involved; and
c. Order the business ineligible to transact any business with the governing body or contracting agency of the governing body for a period to be determined by the governing body.
Prior to any final determination, assessment, or order under this section, the governing body shall afford the business an opportunity for a hearing on the reasons for the imposition of the penalties set forth in subsection a., b., or c. of this section.
(cf: P.L.2013, c.5, s.6)
26. Section 8 of P.L.1985, c.482 (C.40A:11-48) is amended to read as follows:
8. Each contracting agency of a county or municipality which has established a qualified small business enterprise set-aside program, a qualified veteran business enterprise set-aside program, a qualified minority business enterprise set-aside program, a qualified minority and women's business enterprise set-aside program, or a qualified women's business enterprise set-aside program shall submit a report to its governing body by January 31 of each year describing the agency's efforts in attaining the set-aside goals and the percentage of the dollar value of total procurements awarded pursuant to subsection b. of section 3 of this act, P.L.1985, c.482 (C.40A:11-41 et seq.). The governing body shall publish a list of each agency's attainments in the immediately preceding local fiscal year, to include the county or municipal average, in at least one newspaper circulating in the county or municipality, as appropriate, by March 1 of each year.
(cf: P.L.2013, c.5, s.7)
27. Section 1 of P.L.2021, c.200 (C.48:3-106.1) is amended to read as follows:
1. As used in in P.L.2021, c.200 (C.48:3-106.1 et seq.):
"ANSI" means American National Standards Institute.
"ASHRAE" means the American Society of Heating, Refrigerating and Air-Conditioning Engineers.
"Board" means the Board of Public Utilities or any successor agency.
"Board of education" means and includes the board of education of any local school district, consolidated school district, regional school district, county vocational school and any other board of education or other similar body other than the State Board of Education, the Commission on Higher Education or the Presidents' Council, established and operating under the provisions of Title 18A of the New Jersey Statutes and having authority to make purchases and to enter into contracts for the provision or performance of goods or services. "Board of education" shall include the board of trustees of a charter school established under P.L.1995, c.426 (C.18A:36A-1 et seq.).
"Certified energy auditor" means a commercial entity determined to be qualified by the board to conduct and develop an energy audit meeting the standards of ASHRAE Level II and III, including those qualified by the Division of Property Management and Construction in the Department of the Treasury.
"Certified TAB technician" means a technician certified to perform testing, adjusting, and balancing of HVAC systems by the Associated Air Balance Council (AABC), the National Environmental Balancing Bureau (NEBB), or the Testing, Adjusting and Balancing Bureau (TABB).
"Coronavirus 2019" means the coronavirus disease 2019, as announced by the World Health Organization on February 11, 2020, and first identified in Wuhan, China.
"HVAC" means heating, ventilation, and air conditioning.
"MERV" means minimum efficiency reporting value.
"Noncompliant appliance" means all of the following:
a. a commercial dishwasher that was manufactured prior to January 1, 2010, that does not meet the efficiency requirement of the Energy Star Product Specification for Commercial Dishwashers, Version 1.1;
b. an automatic commercial ice maker that was manufactured prior to January 1, 2010, that does not meet the efficiency requirement of the Energy Star Product Specification for Automatic Commercial Ice Makers, Version 1; or
c. a commercial clothes washer that was manufactured prior to 1 January 1, 2010, that does not meet the efficiency requirement of the Energy Star Product Specification for Clothes Washers, Version 5.0.
"Noncompliant plumbing fixture" means:
a. a toilet manufactured to use more than 1.6 gallons of water per flush;
b. a urinal manufactured to use more than one gallon of water per flush;
c. a showerhead manufactured to have a flow capacity of more than 2.5 gallons of water per minute; or
d. an interior faucet that emits more than 2.2 gallons of water per minute.
"PPM" means parts per million.
"Program fund " means the School and Small Business Energy Efficiency Stimulus Program Fund established pursuant to section 2 of P.L.2021, c.200 (C.48:3-106.2).
"Qualified adjusting personnel" or "qualified testing personnel" means either of the following:
a. a certified TAB technician; or
b. a skilled and trained workforce under the supervision of a certified TAB technician.
"Registered apprenticeship program" means a plan containing all the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, as required under Part 29 and Part 30 of Title 49 of the Code of Federal Regulations, including meeting all requirements set forth under section 2 of P.L.2019, c.518 (C.34:11-56.71).
"Skilled and trained workforce" means a workforce where at least 60 percent of the construction workers are graduates of a registered apprenticeship program for the applicable occupation.
"Small business" means a sole proprietorship, partnership or corporation that has its principal place of business in the State, is of a size and type determined by the board, and is a women's business, minority and women's business, or minority business, as those terms are defined in section 2 of [P.L.1987, c.55 (C.52:27H-21.8)] P.L.1986, c.195 (C.52:27H-21.18).
"SSBNPFA Program" means the School and Small Business Noncompliant Plumbing Fixture and Appliance Program established pursuant to section 5 of P.L.2021, c.200 (C.48:3-106.5).
"SSBVEEVR Program" means the School and Small Business Ventilation and Energy Efficiency Verification and Repair Program established pursuant to section 4 of P.L.2021, c.200 (C.48:3-106.4).
"TAB" means testing, adjusting, and balancing.
"Underserved community" means a school district in which at least 75 percent of public school students are eligible to receive free or reduced-price meals under the National School Lunch Program established pursuant to the "Richard B. Russell National School Lunch Act," Pub.L.79-396 (42 U.S.C. s.1751 et seq.).
"Water-conserving appliance" means any of the following:
a. a commercial dishwasher that meets the criteria of the Energy Star Product Specification for Commercial Dishwashers, Version 2.0, or any revision to those criteria published by the United States Environmental Protection Agency that is adopted by the board for the program;
b. an automatic commercial ice maker that meets the criteria of the Energy Star Product Specification for Automatic Commercial Ice Makers, Version 3.0, or any revision to those criteria published by the United States Environmental Protection Agency that is adopted by the board for the program; or
c. a commercial clothes washer that meets the criteria of the Energy Star Product Specification for Clothes Washers, Version 8.0, or any revision to those criteria published by the United States Environmental Protection Agency that is adopted by the board for the program.
(cf: P.L.2021, c.200, s.1)
28. Section 2 of P.L.1986, c.195 (C.52:27H-21.18) is amended to read as follows:
2. As used in this act:
a. "Control" means authority over the affairs of a business, including, but not limited to, capital investment, property acquisition, employee hiring, contract negotiations, legal matters, officer and director selection, operating responsibility, financial transactions and the rights of other shareholders or joint partners; except that control shall not include absentee ownership, nor shall it be deemed to exist where an owner or employee who is not a minority, in the case of a minority business; or a male owner or employee, in the case of a women's business, is disproportionately responsible for the operation of the business or for policy and contractual decisions.
b. "Commissioner" means the Treasurer of the State of New Jersey.
c. "Director" means the Director of the Division of Revenue and Enterprise Services in the New Jersey Department of the Treasury.
d. "Division" means the Division of Revenue and Enterprise Services in the New Jersey Department of the Treasury.
e. "Minority" means a person who is:
(1) Black, which is a person having origins in any of the black racial groups in Africa; or
(2) Hispanic, which is a person with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race; or
(3) Asian American, which is a person having origins in any of the original peoples of the Far East, Southeast Asia, Indian subcontinent, Hawaii, or the Pacific Islands; or
(4) American Indian or Alaskan native, which is a person having origins in any of the original peoples of North America.
f. "Minority business" means a business which is:
(1) A sole proprietorship owned and controlled by a minority;
(2) A partnership or joint venture owned and controlled by minorities in which at least 51[%] percent of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it, and of which at least 51[%] percent of the legal beneficial ownership is held by one or more minorities.
g. "Public agency" means the State or any department, division, agency, authority, board, commission or committee thereof.
h. "Woman" or "women" means a female or females, regardless of race.
i. "Women's business" means a business which is:
(1) A sole proprietorship owned and controlled by a woman; [or]
(2) A partnership or joint venture owned and controlled by women in which at least 51[%] percent of the ownership is held by women and the management and daily business operations of which are controlled by one or more women who own it; or
(3) A corporation or other entity whose management and daily business operations are controlled by one or more women who own it, and of which at least 51[%] percent of the legal beneficial ownership is held by women.
j. "Applicant" means an individual or individuals, a sole proprietor, partnership, joint venture or corporation that applies for certification as a minority business or women's business, in accordance with the provisions of P.L.1986, c.195 (C.52:27H-21.17 et seq.).
k. "Minority and women's business" means a business which is:
(1) A partnership or joint venture owned and controlled by minorities and women in which at least 51 percent of the ownership interest is held by minorities and women and the management and daily business operations of which are controlled by one or more of the minorities or women who own it; or
(2) A corporation or other entity whose management and daily business operations are controlled by one or more minorities or women who own it, and of which at least 51 percent of the legal beneficial ownership is held by two or more minorities and women.
(cf: P.L.2023, c.217, s.1)
29. Section 3 of P.L.1986, c.195 (C.52:27H-21.19) is amended to read as follows:
3. Notwithstanding the provisions of any law, rule, or regulation to the contrary, the division shall have the exclusive authority within State government to certify to public agencies the eligibility of a business to bid on contracts as a "minority business," "minority and women's business," or "women's business" under any program conducted by the public agency for which such certification is so required. That certification by the division shall be binding on the public agency.
(cf: P.L.1986, c.195, s.3)
30. Section 4 of P.L.1986, c.195 (C.52:27H-21.20) is amended to read as follows:
4. The division shall establish a unified procedure for the certification of a business as a minority business, minority and women's business, or women's business, for the purpose of establishing eligibility to bid on public contracts.
In establishing and administering the procedure required by this section, the director shall [insure] ensure that the application and certification process is clear, concise, and, to the extent practicable, does not require duplication of effort on the part of the applicant or the division or the public agency administering the program. In furtherance of these objectives, the director shall:
a. Establish criteria to be used to determine the status of a business as a minority business, minority and women's business, or women's business, as defined by section 2 of this act, P.L.1986, c.195 (C.52:27H-21.17 et seq.), which criteria, to the extent not inconsistent with this act, shall conform to federal law or regulations and criteria used by the division;
b. Provide a single form for application for certification, which form shall be written in a simple, clear, understandable, and easily readable way, and include instructions as to the certification procedure and any additional documents or information required to be separately supplied by the applicant for a particular program;
c. Have the authority to require the payment of a single fee, to be established by the director, to compensate the division for its cost in administering the certification process;
d. Screen applicants to [insure] ensure that businesses seeking certification are not misrepresenting their status as minority businesses, minority and women's businesses, or women's businesses, as the case may be, and that the minority, minority and women's, or women's business applicants are, in fact, in the control of members of minority groups or women, or both, and are not merely "fronts" for businesses controlled by persons other than minorities or women, or both;
e. Monitor the status of certified businesses to [insure] ensure continued compliance with the criteria for certification and control by the appropriate persons;
f. Compile, maintain, and make available to the public agencies lists of businesses certified as minority businesses, minority and women's businesses, or women's businesses; and
g. Provide for dissemination of information to interested parties, and the public at large, concerning the certification of businesses as minority businesses, minority and women's businesses, or women's businesses, as required by this act, P.L.1986, c.195 (C.52:27H-21.17 et seq.).
(cf: P.L.1986, c.195, s.4)
31. Section 5 of P.L.1986, c.195 (C.52:27H-21.21) is amended to read as follows:
5. When the division's procedure for certification of a business as a minority business, minority and women's business, or women's business conflicts with a federal certification procedure that affects a State project in which the federal government participates, the federal certification procedure shall take precedence. Public agencies shall identify those projects and shall notify the division.
(cf: P.L.1986, c.195, s.5)
32. Section 6 of P.L.1986, c.195 (C.52:27H-21.22) is amended to read as follows:
6. The director may require of a first-time applicant for certification as a minority business, minority and women's business, or women's business the documentation that is necessary to determine the applicant's eligibility for certification. Such documentation may include, but not be limited to:
a. Names and addresses of the owner, partners, or shareholders, as applicable, and their representative shares of ownership;
b. Names and addresses of members of the board of directors, in the case of corporations;
c. Names and addresses of the officers of the business;
d. Number of shares of stock issued and outstanding, in the case of a corporation;
e. Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;
f. Organizational charts;
g. An applicant's certificate of birth and motor vehicle driver's license; and
h. An affidavit certifying that the applicant is a minority business, minority and women's business, or women's business, as defined pursuant to section 2 of P.L.1986, c.195 (C.52:27H-21.18).
The director shall not require an applicant to provide any personal federal or personal State income tax returns.
(cf: P.L.2003, c.189, s.3)
33. Section 4 of P.L.2003, c.189 (C.52:27H-21.22a) is amended to read as follows:
4. The director shall require a first-time applicant to apply for recertification as a minority business, minority and women's business, or women's business one year after the original certification was issued. The director may require of the applicant the documentation that is necessary to determine the applicant's eligibility for recertification, including but not limited to:
a. Names and addresses of the owner, partners, or shareholders, as applicable, and their representative shares of ownership;
b. Names and addresses of members of the board of directors, in the case of corporations;
c. Names and addresses of the officers of the business;
d. Names and addresses of capital investors;
e. Number of shares of stock issued and outstanding, in the case of a corporation;
f. Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;
g. The capacity of the business to be bonded;
h. The affiliation of the business or any of its owners, officers, or directors with any other business entity;
i. A representative list of prior and current clients;
j. Major real and personal property holdings of the business;
k. Financial statements and balance sheets;
l. Banking institutions with which the business is affiliated; [and]
m. Organizational charts;
n. An applicant's certificate of birth and motor vehicle driver's license;
o. Personal or corporate federal or State income tax returns;
p. An affidavit certifying that the applicant is a minority business, minority and women's business, or women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18); and
q. Any other information the director deems necessary to effectuate the purposes of this act, P.L.2003, c.189 (C.52:27H-21.22a et al.).
(cf: P.L.2003, c.189, s.4)
34. Section 5 of P.L.2003, c.189 (C.52:27H-21.22b) is amended to read as follows:
5. After a minority business, minority and women's business, or women's business has been recertified after first receiving initial certification, the director shall require the certified minority business, certified minority and women's business, or certified women's business to apply for recertification every five years. The director may require of the applicant the documentation that is necessary to determine the applicant's eligibility for recertification, including but not limited to:
a. Names and addresses of the owner, partners, or shareholders, as applicable, and their representative shares of ownership;
b. Names and addresses of members of the board of directors, in the case of corporations;
c. Names and addresses of the officers of the business;
d. Names and addresses of capital investors;
e. Number of shares of stock issued and outstanding, in the case of a corporation;
f. Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;
g. (Deleted by amendment, P.L.2023, c.217)
h. The affiliation of the business or any of its owners, officers, or directors with any other business entity;
i. A representative list of prior and current clients;
j. Major real and personal property holdings of the business;
k. Financial statements and balance sheets;
l. Banking institutions with which the business is affiliated; [and]
m. Organizational charts;
n. An applicant's certificate of birth and motor vehicle driver's license;
o. Personal or corporate federal or State income tax returns;
p. An affidavit certifying that the applicant is a minority business, minority and women's business, or women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18); and
q. Any other information the director deems necessary to effectuate the purposes of this act, P.L.2003, c.189 (C.52:27H-21.22a et al.).
(cf: P.L.2023, c.217, s.2)
35. Section 3 of P.L.1983, c.482 (C.52:32-19) is amended to read as follows:
3. As used in this act:
a. "Contracting agency" means the State or any board, commission, committee, authority, or agency of the State.
b. "Chief" means the Chief of the Office of Small Business Assistance when used in conjunction with the small business, minority and female business, and female business set-aside programs, or the Chief of the Office of Minority Business Enterprise when used in conjunction with the minority business and minority and female business set-aside [program] programs.
c. "Department" means the Department of Commerce and Economic Development.
d. "Office" means the Office of Small Business Assistance in the Department of Commerce and Economic Development when used in conjunction with the small business, minority and female business, and female business set-aside programs, or the Office of Minority Business Enterprise when used in conjunction with the minority business and minority and female business set-aside [program] programs.
e. "Small business" means a business which has its principal place of business in the State, is independently owned and operated, and meets all other qualifications as may be established in accordance with P.L.1987, c.55 (C.52:27H-21.7 et seq.).
f. "Small business set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract with respect to which bids are invited and accepted only from small businesses, or (2) a portion of a contract when that portion has been so designated.
g. "Minority business" means a business which has its principal place of business in the State, is independently owned and operated, and at least 51[%] percent of which is owned and controlled by persons who are black, Hispanic, Portuguese, Asian-American, American Indian or Alaskan natives.
h. "Minority business set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract with respect to which bids are invited and accepted only from minority businesses; or (2) a portion of a contract when that portion is so designated.
i. "Female business" means a business which has its principal place of business in the State, is independently owned and operated, and at least 51[%] percent of which is owned and controlled by women.
j. "Female business set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract with respect to which bids are invited and accepted only from female businesses; or (2) a portion of a contract when that portion is so designated.
k. "Minority and female business" means a business which has its principal place of business in the State, is independently owned and operated, and at least 51 percent of which is owned and controlled by a combination of minorities and women.
l. "Minority and female business set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract with respect to which bids are invited and accepted only from minority and female businesses; or (2) a portion of a contract when that portion is so designated.
(cf: P.L.1985, c.384, s.4)
36. Section 4 of P.L.1983, c.482 (C.52:32-20) is amended to read as follows:
4. a. Notwithstanding the provisions of any State bidding or public contracts laws to the contrary, but subject to any supervening federal statutes or rules, contracting agencies, in consultation with the department, may designate a contract, or a portion thereof, for goods, equipment, construction, or services to be awarded by a contracting agency as a small business, female business, minority and female business, or minority business set-aside contract pursuant to the goals and procedures established by this 1985 amendatory act, whenever there is a reasonable expectation that bids may be obtained from at least three qualified small businesses, female businesses, minority and female businesses, or minority businesses capable of furnishing the desired goods, equipment, construction, or services at a fair and reasonable price. The designation shall be made prior to the advertisement for bids.
b. Where application of the goals and procedures established under this act would jeopardize the State's participation in a program from which the State receives federal funds or other benefits, the contracting agency may, in consultation with the department, withdraw the affected contracts from consideration or calculation.
(cf: P.L.1985, c.384, s.5)
37. Section 5 of P.L.1983, c.482 (C.52:32-21) is amended to read as follows:
5. a. There are established the goals that contracting agencies award at least 15[%] percent of their contracts for small businesses, at least 7[%] percent of their contracts for minority businesses, at least 3 percent of their contracts for minority and female businesses, and at least 3[%] percent of their contracts for female businesses. These goals may, where appropriate, be attained by the direct designation of prime contracts for small [business] businesses, minority [business] businesses, minority and female businesses, or female [business] businesses or, in the case of a prime contract not directly designated for a small business, minority business, minority and female business, or female business, by requiring that a portion of such a prime contract be subcontracted to a small business, minority business, minority and female business, or female business. Each contracting agency shall make a good faith effort to attain the goals established in this section.
b. The goals established in subsection a. of this section shall be attained independently of each other, and any given contract may be counted for purposes of attaining the small business goal, the minority business goal, the minority and female business goal, or the female business goal, but not towards more than one goal. Pursuant to the goals established by this act, a total of at least 25[%] percent of the State's procurement contracts shall be awarded to small businesses, minority businesses, minority and female businesses, and female businesses.
c. For purposes of attaining these goals, contracting agencies shall, when necessary, specifically set aside contracts or portions of contracts for which only small businesses, minority businesses, minority and female businesses, or female businesses may bid.
(cf: P.L.1985, c.384, s.6)
38. Section 1 of P.L.1995, c.39 (C.52:32-22.1) is amended to read as follows:
1. a. Whenever any obligation is imposed by law upon a contracting agency to set aside a percentage of State contracts awarded by that agency for minority businesses, minority and women's businesses, or women's businesses, compliance with that requirement shall be calculated based, according to objective and verifiable standards as promulgated pursuant to administrative regulation, upon the dollar value of payments actually made each year to, and received by, minority businesses, minority and women's businesses, and women's businesses pursuant to State contracts awarded by that agency, or subcontracts thereto, compared to the total of all payments made to, and received by, all parties awarded State contracts by that agency.
Compliance with any such set-aside requirement shall not be calculated using statements made by bidders with respect to the portion of a contract which the bidder intends to subcontract to minority businesses, minority and women's businesses, or women's businesses.
b. As used in this section:
"contracting agency" means the State or any board, commission, committee, authority, or agency of the State; and
"State contract" means any purchase, contract, or agreement the cost or contract price of which is to be paid, in whole or in part, with or out of State funds.
(cf: P.L.1995, c.39, s.1)
39. Section 8 of P.L.1983, c.482 (C.52:32-24) is amended to read as follows:
8. a. The department shall establish reasonable regulations appropriate for controlling the designation of prospective small business bidders, minority business bidders, minority and female business bidders, and female business bidders and shall maintain lists of designated businesses.
b. The department shall establish a procedure whereby businesses may request inclusion on appropriate lists for small businesses, minority businesses, minority and female businesses, and female businesses.
c. The department shall establish a procedure for annually reviewing the lists and determining whether the businesses on the lists shall continue to be designated as small businesses, minority businesses and female businesses.
d. The department shall establish a procedure whereby the designation of a business as a small business, minority business, minority and female business, or female business may be challenged by a third party.
e. Any procedures established pursuant to subsections b., c., and d. of this section shall include notice to the business whose designation is at issue and an opportunity for a hearing at the department. The hearing shall not be considered a contested case under the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
(cf: P.L.1985, c.384, s.9)
40. Section 11 of P.L.1983, c.482 (C.52:32-27) is amended to read as follows:
11. Each contracting agency shall submit an annual report to the department according to a schedule announced by the department. This report shall include the following information:
a. The total dollar value and number of contracts awarded to small businesses, minority businesses, minority and female businesses, and female businesses, including a separate accounting of any set-aside contracts, and the percentage of the total State procurements by the contracting agency the figure of total dollar value and the number of set-asides reflect;
b. The types and sizes of businesses receiving set-aside awards and the nature of the purchases and contracts; and
c. The efforts made to publicize and promote the program.
The department shall receive and analyze the reports submitted by the contracting agencies and, utilizing these data, submit an annual report to the Governor and the Legislature showing the progress being made toward the objectives and goals of this act during the preceding fiscal year.
(cf: P.L.1985, c.384, s.12)
41. Section 12 of P.L.1983, c.482 (C.52:32-28) is amended to read as follows:
12. Each contracting agency shall annually develop, in consultation with the department, a plan for achieving its small business, minority business, minority and female business, and female business goals.
(cf: P.L. 1985, c.384, s.13)
42. Section 14 of P.L.1983, c.482 (C.52:32-30) is amended to read as follows:
14. Where the department determines that a business has been classified as a small business, minority business, minority and female business, or female business on the basis of false information knowingly supplied by the business and has been awarded a contract to which it would not otherwise have been entitled under this act, the department shall:
a. Assess the business any difference between the contract amount and what the State's cost would have been if the contract had not been awarded in accordance with the provisions of this act;
b. In addition to the amount due under subsection a., assess the business a penalty in an amount of not more than 10[%] percent of the amount of the contract involved;
c. Order the business ineligible to transact any business with the State for a period of not less than three months and not more than 24 months; and
d. Prior to any final determination, assessment, or order under this section, afford the business an opportunity for a contested case hearing pursuant to P.L. 1968, c. 410 (C. 52:14B-1 et seq.).
All payments to the State pursuant to subsection a. of this section shall be deposited in the fund out of which the contract involved was awarded. All payments to the State pursuant to subsection b. of this section shall be deposited in the General State Fund.
(cf: P.L.1985, c.384, s.14)
43. Section 2 of P.L.1997, c.349 (C.54:10A-5.29) is amended to read as follows:
2. As used in sections 1 through 3 of P.L.1997, c.349 (C.54:10A-5.28 through 54:10A-5.30):
"Advanced computing" means a technology used in the designing and developing of computing hardware and software, including innovations in designing the full spectrum of hardware from hand-held calculators to super computers, and peripheral equipment.
"Advanced materials" means materials with engineered properties created through the development of specialized processing and synthesis technology, including ceramics, high value-added metals, electronic materials, composites, polymers, and biomaterials.
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Biotechnology" means the continually expanding body of fundamental knowledge about the functioning of biological systems from the macro level to the molecular and sub-atomic levels, as well as novel products, services, technologies, and sub-technologies developed as a result of insights gained from research advances which add to that body of fundamental knowledge.
"Carbon footprint reduction technology" means a technology using equipment for the commercial, institutional, and industrial sectors that: increases energy efficiency, develops and delivers renewable or non-carbon-emitting energy technologies, develops innovative carbon emissions abatement with significant carbon emissions reduction potential, or promotes measurable electricity end-use energy efficiency.
"Control," with respect to a corporation, means ownership, directly or indirectly, of stock possessing 80 percent or more of the total combined voting power of all classes of the stock of the corporation entitled to vote; and "control," with respect to a trust, means ownership, directly or indirectly, of 80 percent or more of the beneficial interest in the principal or income of the trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership or association, or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in subsection (c) of section 267 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.267), other than paragraph (3) of subsection (c) of that section.
"Controlled group" means one or more chains of corporations connected through stock ownership with a common parent corporation if stock possessing at least 80 percent of the voting power of all classes of stock of each of the corporations is owned directly or indirectly by one or more of the corporations and the common parent owns directly stock possessing at least 80 percent of the voting power of all classes of stock of at least one of the other corporations.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Diverse entrepreneur" means a New Jersey-based business that meets the criteria for a minority business, minority and female business, or female business set forth in section 3 of P.L.1983, c.482 (C.52:32-19).
"Electronic device technology" means a technology involving microelectronics, semiconductors, electronic equipment and instrumentation, radio frequency, microwave and millimeter electronics, and optical and optic-electrical devices or data and digital communications and imaging devices.
"Information technology" means software publishing, motion picture and video production, television production and post-production services, telecommunications, data processing, hosting and related services, custom computer programming services, computer system design, computer facilities management services, other computer related services, and computer training.
"Life sciences" means the production of medical equipment, ophthalmic goods, medical or dental instruments, diagnostic substances, biopharmaceutical products, or physical and biological research.
"Medical device technology" means a technology involving any medical equipment or product (other than a pharmaceutical product) that has therapeutic value, diagnostic value, or both, and is regulated by the federal Food and Drug Administration.
"Mobile communications technology" means a technology involving the functionality and reliability of the transmission of voice and multimedia data using a communication infrastructure via a computer or a mobile device that shall include, but not be limited to, smartphones, electronic books and tablets, digital audio players, motor vehicle electronics, home entertainment systems, and other wireless appliances, without having connected to any physical or fixed link.
"New Jersey-based business" means a company with fewer than 150 employees, of whom at least 75 percent are filling a position in New Jersey, that is doing business, employing or owning capital or property, or maintaining an office in this State.
"New Jersey emerging technology business" means a company with fewer than 150 employees, of whom at least 75 percent are filling a position in New Jersey, that is doing business, employing or owning capital or property, or maintaining an office in this State and: has qualified research expenses paid or incurred for research conducted in this State; conducts pilot scale manufacturing in this State; or conducts technology commercialization in this State in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.
"New Jersey emerging technology business holding company" means any corporation, association, firm, partnership, trust, or other form of business organization, but not a natural person, which directly or indirectly owns, has the power or right to control, or has the power to vote a controlling share of the outstanding voting securities of a corporation or other form of a New Jersey emerging technology business.
"Partnership" means a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on and which is not a trust or estate, a corporation, or a sole proprietorship.
"Pilot scale manufacturing" means the design, construction, and testing of preproduction prototypes and models in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, and renewable energy technology, other than for commercial sale, excluding sales of prototypes or sales for market testing if the total gross receipts, as calculated in the manner provided in section 6 of P.L.1945, c.162 (C.54:10A-6), from the sales of the product, service, or process do not exceed $1,000,000.
"Qualified investment" means the non-refundable transfer of cash to a New Jersey emerging technology business or to a New Jersey emerging technology business holding company by a taxpayer that is not a related person of the New Jersey emerging technology business or the New Jersey emerging technology business holding company, the transfer of which is in connection with either: a transaction between or among the taxpayer and the New Jersey emerging technology business or the New Jersey emerging technology holding company or both in exchange for stock, interests in partnerships or joint ventures, licenses (exclusive or non-exclusive), rights to use technology, marketing rights, warrants, options, or any items similar to those included herein, including, but not limited to, options or rights to acquire any of the items included herein or a purchase, production, or research agreement between or among the taxpayer and the New Jersey emerging technology business or the New Jersey emerging technology holding company or both. "Qualified investment" also means the non-refundable transfer of cash or irrevocable contractual commitment to a qualified venture fund.
"Qualified research expenses" means qualified research expenses, as defined in section 41 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.41), as in effect on June 30, 1992, in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.
"Qualified venture fund" means a venture fund required by contract to invest a minimum of 50 percent of its funds in New Jersey-based businesses that the authority, in its sole discretion, based upon the qualified venture fund's investment history, if any, its private placement memorandum and other relevant information, has determined has the capacity to make the minimum investment.
"Related person" means:
a corporation, partnership, association, or trust controlled by the taxpayer;
an individual, corporation, partnership, association, or trust that is in the control of the taxpayer;
a corporation, partnership, association, or trust controlled by an individual, corporation, partnership, association, or trust that is in the control of the taxpayer; or
a member of the same controlled group as the taxpayer.
"Renewable energy technology" means a technology involving the generation of electricity from solar energy; wind energy; wave or tidal action; geothermal energy; the combustion of gas from the anaerobic digestion of food waste and sewage sludge at a biomass generating facility; the combustion of methane gas captured from a landfill; and a fuel cell powered by methanol, ethanol, landfill gas, digestor gas, biomass gas, or other renewable fuel, but not powered by a fossil fuel.
"Tax year" means the fiscal or calendar accounting period of a taxpayer.
"Venture fund" means a partnership, corporation, trust, or limited liability company that invests cash in a business during the early or expansion stages of a business in exchange for an equity stake in the business in, which the investment is made. Venture firm may include a venture capital fund, a family office fund, or a corporate investor fund, provided that a professional manager administers the venture firm.
"Verified transfer of funds" means a non-refundable transfer of funds equal to 100 percent of the taxpayer's qualified investment in the New Jersey emerging technology business holding company to a New Jersey emerging technology business by the New Jersey emerging technology business holding company that is accompanied by documentation, as required by the New Jersey Economic Development Authority, which provides proof of a cash transaction originating with a taxpayer and concluding with a New Jersey emerging technology business, provided that the transactions from origin to destination occur within the same tax year.
The definitions of "advanced computing," "advanced materials," "biotechnology," "carbon footprint reduction technology," "electronic device technology," "information technology," "life sciences," "medical device technology," "mobile communications technology," "New Jersey emerging technology business," "pilot scale manufacturing," and "renewable energy technology" may be modified by regulation to conform to definitions in other programs administered by the authority.
(cf: P.L.2025, c.71, s.1)
44. Section 4 of P.L.2013, c.14 (C.54A:4-13) is amended to read as follows:
4. a. (1) A taxpayer, upon approval of the taxpayer's application therefor by the New Jersey Economic Development Authority, and in consultation with the director, shall be allowed a credit against the tax otherwise due for the taxable year in the taxable year in which the taxpayer applied, under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 35 percent of the qualified investment made by the taxpayer in a New Jersey emerging technology business, in a New Jersey emerging technology business holding company that makes a verified transfer of funds to a New Jersey emerging technology business, or in a qualified venture fund; provided, however, a taxpayer may be allowed a tax credit in an amount equal to 40 percent of the qualified investment if the taxpayer satisfies one of the requirements set forth in paragraph (2) of this subsection. The value of tax credits allowed to a taxpayer pursuant to this section shall not exceed $500,000 for each qualified investment made by the taxpayer.
(2) Subject to the limits established in paragraph (1) of this subsection, the New Jersey Economic Development Authority, in consultation with the director, shall increase the amount of a tax credit allowed pursuant to this section by five percent if the taxpayer makes a qualified investment in a New Jersey emerging technology business, in a New Jersey emerging technology business holding company that makes a verified transfer of funds to a New Jersey emerging technology business, or in a qualified venture fund, if the New Jersey emerging technology business is either located in a qualified opportunity zone pursuant to 26 U.S.C. s.1400Z-1, or a low-income community as defined in subparagraph (e) of 26 U.S.C. s.45D; or
certified by the State as a minority business or a women's business pursuant to P.L.1986, c.195 (C.52:27H-21.17 et seq.) and, in the case of a qualified venture fund, if the qualified venture fund commits by contract to invest 50 percent of its funds in diverse entrepreneurs.
b. The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., after all other credits and payments. If the credit exceeds the amount of tax liability otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7, provided, however, that subsection (f) of N.J.S.54A:9-7 shall not apply.
c. (1) A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year. For the purposes of subsection b. of this section, the amount of tax liability that would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the total gross income of the taxpayer.
(2) The credit for a corporation that has made a valid election as a New Jersey S corporation pursuant to section 3 of P.L.1993, c.173 (C.54:10A-5.22) may be applied by the shareholders of the S corporation against the tax liability otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., provided that the amount of credit that may be used by a shareholder of the S corporation shall be determined by allocating to each shareholder of the S corporation that proportion of the tax credit of the S corporation that is equal to the shareholder's proportionate share of the S corporation, whether or not distributed, of the total distributive income or gain of the S corporation for its tax period ending with or within the shareholder's tax period, and the credit may be applied by the shareholders against the tax liability otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.
d. (1) Except as provided in paragraph (2) of this subsection, the Chief Executive Officer of the New Jersey Economic Development Authority, in consultation with the director, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations that are necessary to implement sections 1 through 3 of P.L.1997, c.349 (C.54:10A-5.28 through 54:10A-5.30) and this section, including, but not limited to: examples of and the determination of qualified investments of which applicants shall provide documentation with their tax credit application, the promulgation of procedures and forms necessary to apply for a credit, provisions for recapture in the event a taxpayer receives a credit on the basis of its commitment to transfer cash to a qualified venture fund and it does not fund its commitment, and provisions for credit applicants to be charged an initial application fee and ongoing service fees to cover the administrative costs related to the credit.
(2) Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Chief Executive Officer of the New Jersey Economic Development Authority may adopt, immediately upon filing with the Office of Administrative Law, rules and regulations that the chief executive officer deems necessary to implement the provisions of this section, as amended by P.L.2025, c.71, which regulations shall be effective for a period not to exceed 365 days from the date of the filing. The chief executive officer shall thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
(3) The amount of credits approved by the Chief Executive Officer of the New Jersey Economic Development Authority and the Director of the Division of Taxation in the Department of the Treasury, pursuant to subsection a. of this section and pursuant to section 3 of P.L.1997, c.349 (C.54:10A-5.30), shall not exceed a cumulative total of $25,000,000, plus the value of any unused tax benefits from the immediately preceding State fiscal year, as determined pursuant to section 1 of P.L.1997, c.334 (C.34:1B-7.42a), in any calendar year, to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), and the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. If the cumulative amount of credits allowed to taxpayers in a calendar year exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a credit amount for that reason shall be allowed, in the order in which they have submitted an application, the amount of the tax credit on the first day of the next succeeding calendar year in which tax credits under this section and section 3 of P.L.1997, c.349 (C.54:10A-5.30) are not in excess of the amount of credits available.
e. As used in this section:
"Advanced computing" means a technology used in the designing and developing of computing hardware and software, including innovations in designing the full spectrum of hardware from hand-held calculators to super computers, and peripheral equipment.
"Advanced materials" means materials with engineered properties created through the development of specialized processing and synthesis technology, including ceramics, high value-added metals, electronic materials, composites, polymers, and biomaterials.
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4). "Biotechnology" means the continually expanding body of fundamental knowledge about the functioning of biological systems from the macro level to the molecular and sub-atomic levels, as well as novel products, services, technologies, and sub-technologies developed as a result of insights gained from research advances which add to that body of fundamental knowledge.
"Carbon footprint reduction technology" means a technology using equipment for the commercial, institutional, and industrial sectors that: increases energy efficiency, develops and delivers renewable or non-carbon-emitting energy technologies, develops innovative carbon emissions abatement with significant carbon emissions reduction potential, or promotes measurable electricity end-use energy efficiency.
"Control," with respect to a corporation, means ownership, directly or indirectly, of stock possessing 80 percent or more of the total combined voting power of all classes of the stock of the corporation entitled to vote; and "control," with respect to a trust, means ownership, directly or indirectly, of 80 percent or more of the beneficial interest in the principal or income of the trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in subsection (c) of section 267 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.267), other than paragraph (3) of subsection (c) of that section.
"Controlled group" means one or more chains of corporations connected through stock ownership with a common parent corporation if stock possessing at least 80 percent of the voting power of all classes of stock of each of the corporations is owned directly or indirectly by one or more of the corporations and the common parent owns directly stock possessing at least 80 percent of the voting power of all classes of stock of at least one of the other corporations.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Diverse entrepreneur" means a New Jersey-based business that meets the criteria for a minority business, minority and female business, or female business set forth in section 3 of P.L.1983, c.482 (C.52:32-19).
"Electronic device technology" means a technology involving microelectronics, semiconductors, electronic equipment and instrumentation, radio frequency, microwave and millimeter electronics, and optical and optic-electrical devices or data and digital communications and imaging devices.
"Information technology" means software publishing, motion picture and video production, television production and post-production services, telecommunications, data processing, hosting and related services, custom computer programming services, computer system design, computer facilities management services, other computer related services, and computer training.
"Life sciences" means the production of medical equipment, ophthalmic goods, medical or dental instruments, diagnostic substances, biopharmaceutical products, or physical and biological research.
"Medical device technology" means a technology involving any medical equipment or product (other than a pharmaceutical product) that has therapeutic value, diagnostic value, or both, and is regulated by the federal Food and Drug Administration.
"Mobile communications technology" means a technology involving the functionality and reliability of the transmission of voice and multimedia data using a communication infrastructure via a computer or a mobile device, that shall include, but not be limited to, smartphones, electronic books and tablets, digital audio players, motor vehicle electronics, home entertainment systems, and other wireless appliances, without having connected to any physical or fixed link.
"New Jersey-based business" means a company with fewer than 150 employees, of whom at least 75 percent are filling a position in New Jersey, that is doing business, employing or owning capital or property, or maintaining an office in this State.
"New Jersey emerging technology business" means a company with fewer than 150 employees, of whom at least 75 percent are filling a position in New Jersey, that is doing business, employing or owning capital or property, or maintaining an office in this State and: has qualified research expenses paid or incurred for research conducted in this State; conducts pilot scale manufacturing in this State; or conducts technology commercialization in this State in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.
"New Jersey emerging technology business holding company" means any corporation, association, firm, partnership, trust, or other form of business organization, but not a natural person, which directly or indirectly owns, has the power or right to control, or has the power to vote a controlling share of the outstanding voting securities of a corporation or other form of a New Jersey emerging technology business.
"Partnership" means a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on and which is not a trust or estate, a corporation, or a sole proprietorship.
"Pilot scale manufacturing" means design, construction, and testing of preproduction prototypes and models in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology, other than for commercial sale, excluding sales of prototypes or sales for market testing if the total gross receipts, as calculated in the manner provided in section 6 of P.L.1945, c.162 (C.54:10A-6), from the sales of the product, service, or process do not exceed $1,000,000.
"Qualified investment" means the non-refundable transfer of cash to a New Jersey emerging technology business or to a New Jersey emerging technology business holding company by a taxpayer that is not a related person of the New Jersey emerging technology business or the New Jersey emerging technology business holding company, the transfer of which is in connection with either: a transaction between or among the taxpayer and the New Jersey emerging technology business or the New Jersey emerging technology holding company or both in exchange for stock, interests in partnerships or joint ventures, licenses (exclusive or non-exclusive), rights to use technology, marketing rights, warrants, options, or any items similar to those included herein, including, but not limited to, options or rights to acquire any of the items included herein; or a purchase, production, or research agreement between or among the taxpayer and the New Jersey emerging technology business or the New Jersey emerging technology holding company or both. "Qualified investment" also means the non-refundable transfer of cash or irrevocable contractual commitment to transfer cash to a qualified venture fund.
"Qualified research expenses" means qualified research expenses, as defined in section 41 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.41), as in effect on June 30, 1992, in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.
"Qualified venture fund" means a venture fund required by contract to invest a minimum of 50 percent of its funds in New Jersey-based businesses that the authority, in its sole discretion, based upon the qualified venture fund's investment history, if any, its private placement memorandum and other relevant information, has determined has the capacity to make the minimum investment.
"Related person" means:
a corporation, partnership, association, or trust controlled by the taxpayer;
an individual, corporation, partnership, association, or trust that is in the control of the taxpayer;
a corporation, partnership, association, or trust controlled by an individual, corporation, partnership, association, or trust that is in the control of the taxpayer; or
a member of the same controlled group as the taxpayer.
"Renewable energy technology" means a technology involving the generation of electricity from solar energy; wind energy; wave or tidal action; geothermal energy; the combustion of gas from the anaerobic digestion of food waste and sewage sludge at a biomass generating facility; the combustion of methane gas captured from a landfill; and a fuel cell powered by methanol, ethanol, landfill gas, digestor gas, biomass gas, or other renewable fuel but not powered by a fossil fuel.
"Venture fund" means a partnership, corporation, trust, or limited liability company that invests cash in a business during the early or expansion stages of a business in exchange for an equity stake in the business in which the investment is made. Venture firm may include a venture capital fund, a family office fund, or a corporate investor fund, provided that a professional manager administers the venture firm.
"Verified transfer of funds" means a non-refundable transfer of funds equal to 100 percent of the taxpayer's qualified investment in the New Jersey emerging technology business holding company to a New Jersey emerging technology business by the New Jersey emerging technology business holding company that is accompanied by documentation, as required by the New Jersey Economic Development Authority, which provides proof of a cash transaction originating with a taxpayer and concluding with a New Jersey emerging technology business, provided that the transactions from origin to destination occur within the same taxable year.
The definitions of "advanced computing," "advanced materials," "biotechnology," "carbon footprint reduction technology," "electronic device technology," "information technology," "life sciences," "medical device technology," "mobile communications technology," "New Jersey emerging technology business," "pilot scale manufacturing," and "renewable energy technology" may be modified by regulation to conform to definitions in other programs administered by the authority.
(cf: P.L.2025, c.71, s.3)
45. This act shall take effect on the 90th day following the date of enactment.
STATEMENT
This bill makes any business that is owned by a certain combination of women and minorities eligible for certain business certifications and set-aside programs.
Under current law, the Division of Revenue and Enterprise Services in the Department of the Treasury is permitted to offer certain certifications to businesses, including a minority business certification and a women's business certification. Additionally, current law permits certain entities, and requires other certain entities, to designate a contract, or a portion thereof, as certain set-aside contracts, including women's business set aside contracts or minority business set-aside contracts, under certain circumstances.
This bill expands the available types of business certifications and types of set-aside programs to include minority and women's businesses or minority and female businesses, where applicable. Under the bill, a business with at least 51 percent of the ownership interest being held by a combination of minorities and women may qualify for a business certification or set-aside program, or both.
