Jamel Holley’s cannabis dispensary bill advances

Even as Assemblyman Jamel Holley (D-Union) is locked in a bitter primary election battle to win the Democratic nomination for state Senate, the youthful former Roselle Mayor is aiming to counteract potential barriers to ownership of medical cannabis dispensaries and other types of alternative treatment centers by minority and women entrepreneurs in New Jersey.

Current law prevents any entity from holding more than one permit for a medical cannabis cultivator, manufacturer or dispensary, so Holley sponsored a bill to revise certain restrictions on these businesses, which will open doors to capital investment.

Under the bill (A-5179), investors who significantly assist someone applying for a medical cannabis dispensary permit would be allowed to hold up to 35 percent interest in up to seven medical cannabis dispensaries – provided those businesses are minority, woman or disabled veteran-owned.

Business owners would be required to pay back the financial assistance they receive from an investor within a period of time determined by a sliding scale system based on the size of the loan.

The measure specifies that ownership would not revert to the investor if the business were to default, but it will make capital available to women, minority and disabled veteran entrepreneurs that might be shut out of economic opportunities if they cannot get investors to back them.

The Cannabis Regulatory Commission would also be permitted to review the agreement between the business owner and investor to ensure the terms are commercially reasonable and consistent with fair market value.

Upon the Assembly Health Committee advancing the legislation on Wednesday, Reynolds-Jackson (D-Mercer, Hunterdon) and Holley issued a joint statement explaining their proposal.

“Lack of access to capital is one of the biggest barriers women, minority and disabled veteran entrepreneurs face when trying to become business owners. Lower wages mean these individuals generally have fewer personal savings or opportunities to borrow external funds,” said Holley. “In fact, the vast majority of startups backed by investors are overwhelmingly white and male-owned.”

“As the medical cannabis industry grows in New Jersey, we need to ensure equal opportunities for involvement in these businesses,” said Holley. “By allowing investors to have partial ownership of more than one medical cannabis dispensary, if those businesses are minority or women-owned, we will incentivize them to invest in more diverse ventures.

“Minorities have historically been disproportionately impacted our country’s ‘war on drugs.’ It is only fair they have the opportunity to benefit from this substance’s legitimization as the medical cannabis industry advances,” said Holley.

The bill now heads to the Assembly Speaker for further consideration.

Holley is locked in a heated contest against incumbent Joe Cryan, where the two men are competing for the Democratic nomination for state Senate in the June 8 primary election.