The NJ Cannabis Regulatory Commission (NJCRC) fined Garden State Exotix $10,000 for opening their own product bags to make new products and will review the Social Equity Excise Fee (SEEF) Tax.

Garden State Exotix Fined $10K for Opening Sealed Bags

NJCRC Chair Harris Laufer said they initially had enforcement actions against a lab but withdrew them for now.

Acting Executive Director Christopher Riggs said Garden State Exotic LLC made a new product after a sealed bag of cannabis was unsealed and called it a blatant violation of their regulations.

“It’s considered unusable cannabis once it is opened in final product form…,” he noted.

“I am going to make a motion to assess a $10,000 fine,” Laufer said.

He explained they were not allowed to open a sealed bag of flower for sale after it was sealed.

The NJCRC approved it 5-0.

SEEF Tax to be Reviewed

“…Every year the CRC has to examine uh the level of the Social Equity Excise Fee (SEEF),” Laufer explained.

“For the past 5 years, since the Commission’s inception, um, we have made the deliberate decision not to raise it,” he said.

“…We are going to be evaluating it as we statutorily have to do,” Laufer said. “We’re going to be reevaluating the level of the Social Equity Excise Fee.”

“I invite members of the industry to reach out to us, give their opinion…,” he added.

“I want to commend Commissioner Mapp, Commissioner Nash, who sit on the comm which holds the SEEF hearings,” Laufer noted. “…If you want to do another one, you’re more than welcome to.”

“We are going to be evaluating the SEEF at our October meeting, which is going to be October 29^th,” he explained.

Laufer said it has to be done in October or December since there won’t be a November meeting.

“We’re going to be really taking a close look at the Social Equity Excise Fee for the coming year,” he noted.

Litigation Settlements for OGeeze and Columbia Care

NJCRC Chief Counsel Aruna Mohankumar noted OGeez Brands LLC was issued a violation and they received a penalty.

“The Board is now voting to act consistent with the discussion it had in Executive Session to resolve and settle this matter,” she stated without getting into the details.

The NJCRC approved it 5-0.

“Staff issued a Notice of Violation to Columbia Care NJ LLC, which was NOV-04-2023. The Board subsequently imposed a penalty on that entity. The Board is now voting to act consistent with the discussion it had in Executive Session to resolve and settle this matter,” Mohankumar noted.

She didn’t get into the details of that settlement either.

The NJCRC approved it 5-0.

Conversion License Winners

Vice Chair Jackie Ferraro and Laufer noted they were happy to approve two micro businesses converting from a conditional license to an annual NJ cannabis license to enter the market.

1. Gain Preservation Services LLC Cultivator Microbusiness
2. Vibe Irvington LLC Retailer Microbusiness

The NJCRC approved them 5-0.

Annual NJ Cannabis License Winners

1. T-Verde LLC Cultivator Standard
2. T-Verde LLC Manufacturer Standard
3. Nutra Leaf LLC Retailer Standard

The NJCRC approved them 5-0

• Valley Wellness LLC Manufacturer Standard was considered separately, while Ferraro was recused “due to an ongoing professional relationship.”

The NJCRC approved it 4-0-1 with Ferraro recused.

Cannabis Growing Canopy Increase

Riggs explained the Fireplace New Jersey LLC wants to add “exterior hoop houses” to increase their site canopy by 39,780 sq ft.

He said they’re allowed to do so without changing tiers.

“It is a site modification. They have accurately reported it to the commission as required by the regulations, and that means it requires board approval,” Riggs explained.

“We are recommending the board approve the site modification,” he added.

“We love to see businesses that are looking to expand in the state. They’re obviously doing something right. Kudos to the Fireplace NJ. Another great name for the record,” Laufer said.

“Very excited to have extra hoop houses here in New Jersey,” Ferraro said.

“100 percent,” Laufer added.

The NJCRC passed it 5-0.

ATC Background Checks Waived

Mohankumar said Niche NJ LLC wants to waive mandated background check requirements for ATC workers but not for those who would be seen as management, owners, and consultants.

“We did this for our adult use market,” Laufer noted.

Commissioner Sean Kennedy and Commissioner Amelia Mapp motioned to approve it.

So the NJCRC approved it 5-0.

Laufer said it would not harm the public and that they had the right to change the regulation.

He added they still have to follow all the other rules and regulations, like possession an ATC identification card.

Ownership Changes

Riggs noted there were ownership change requests:

1. ABCO Garden State
2. Aunt Mary’s Dispensary LLC
3. Authorized Dealer IV LLC
4. Garden Greens LLC
5. Got Your Six of New Jersey LLC
6. Liberty City Weed Deliveries

“Some of these names are absolutely fantastic. Kudos to Got Your Six,” Laufer said.

The NJCRC approved them 5-0.

Ferraro was recused “due to an ongoing professional relationship” when The Next Chapter Market LLC was considered.

Riggs said it was good to be approved but did not go into detail about the company.

“There is an individual that has ownership in a couple other dispensaries through another company, 3 separate companies,” Commissioner Krista Nash explained.

She wanted to know more about that sort of investor type.

“If we move this forward, can we provide clarification about that?” Nash asked.

“Absolutely. We can provide clarification in closed session or after the public meeting,” Riggs said.

Thank you,” Nash replied.

“Yes, subject to review by me,” Nash said during the vote call.

“Krista, before we sign the FAD (Final Agency Decision), we will make sure to get your question answered,” Laufer said.

The NJCRC passed it 4-0-1 with Ferraro recused.

Elevated Herb Location Change Request

Elevated Herb LLC wants to move within the town of West Milford in Passaic County in North Jersey.

They were approved 5-0.