The NJ Cannabis Regulatory Commission (NJ-CRC) fined companies and reviewed license applications with complications, and reviewed hemp and tax issues.
Fining Cannabis Companies
Acting Executive Director Christopher Riggs explained the reasons for fines:
- Greater Purpose (INV-97-25): Failure to adhere to the Adult Use regulations related to the use of unapproved vehicles to transport cannabis product.
- The Honorable Plant (INV-117-25): Failure to notify NJ-CRC Board of ownership change.
He said the 1st one addressed the situation after admitting it.
Commissioner Amelia Mapp proposed a $2,500 fine for them for using two vehicles.
NJCRC Chair Dianna Houenou thought the fine amount reasonable. So it was approved 3-0.
Riggs noted the Honorable Plant changed ownership without the required board approval.
“We are recommending that an enforcement action be taken,” he added.
Mapp thought they deserved a $5,000 fine.
“The Commission takes no pleasure in imposing penalties on businesses,” Houenou said.
She thanked cannabis workers “for blowing the whistle on bad behavior and helping us hold businesses accountable for their actions.”
They were approved 3-0.
NJ Cannabis Conversion License Winners
Riggs said the following companies won conversions to annual cannabis licenses needed to operate legally. He explained the lengthy process.
- Beleaf NJ LLC Cultivator Microbusiness
- Beleaf NJ LLC Manufacturer Microbusiness
They were approved 3-0.
Ignoring Conflicts of Interest Out of Necessity
A Higher Ground Dispensary LLC Retailer Standard application was then considered separately.
“I move to adopt a resolution invoking the doctrine of necessity …,” Commissioner Krista Nash said.
Nash explained that there is a conflict of interest. She said Houenou has recused herself “due to a personal relationship.”
“…The Commission lacks the number of commissioners necessary to take a valid vote,” Nash noted.
She explained it was a way for Houenou to vote even though there is a conflict. They then voted to let Houenou approve it, with Houenou included in the 3-0 vote.
They did not want to hold up progress indefinitely since it’s unknown what changes the NJ Legislature will make.
So despite a conflict, Houenou was part of the 3-0 approval vote.
According to the Jersey City Times, the owners are state residents.
Chelsea Beach Buds by Bridge City Collective LLC Retailer Standard was then considered next.
Houenou said there was another conflict and a need for recusal. So, she invoked the Doctrine of Necessity to do so anyway. Houenou said Nash has a personal conflict of interest.
Nonetheless, they were approved too.
(Heady NJ has an ad deal with Bridge City Collective, full disclosure.)
Annual NJ Cannabis License Winners
Riggs explained that some applications were up for an annual license approval needed to operate:
- CC Bloom LLC Cultivator Standard
- CC Bloom LLC Manufacturer Standard
- Frogtown Dispensary LLC Retailer Standard
- Happy Tree Farmacy Retailer Standard
- NJ Leaf Keansburg Dispensary LLC Retailer Standard
- The Dispensary Spot Retailer Standard
They were approved 3-0.
“Some of our annual license applications are from those seeking to approve or invoke a new statue…,” Houenou said. “I appreciate those applicants’ patience…”
Mister Jones Dispensary Approval Debate
The Mister Jones dispensary application was considered separately.
Houenou moved to invoke the Doctrine of Necessity again to avoid the NJ Conflict of Interest law.
Nash was recused “due to a personal relationship.”
The CRC approved overriding the recusal and ultimately the application 3-0.
“Our Chief Counsel should confirm the compliance with the commercial reasonableness requirements before a license is issued to the business,” Houenou added.
“From the time I joined this board, Mr. Jones has been a constant on every agenda,” Mapp noted. “We as a Commission will always attempt to do our due diligence and therefore these things take time… With that, I vote yes.”
Owner Lerone Jones has told Heady NJ that he’s working with a large Multi-State Operator (MSO), which is indeed helping them finance the business under a law to help minority entrepreneurs like himself.
Microbusiness Conversions
Riggs said 4 microbusinesses want to convert their licenses to expand their operations:
- Doobiez LLC
- Golden Door Dispensary LLC
- Jersey Meds Management LLC
- The Happy Farmer LLC
“We are recommending that all 4 of these microbusinesses conversions … be approved,” CR said.
The CRC approved them 3-0.
Microbusinesses were supposed to be a way to help small businesspeople succeed with lower state fees. However, some microbusiness applicants have told Heady NJ that it is not helpful when dealing with towns and landlords.
Hemp-Derived Beverages Not Allowed in NJ Cannabis Dispensaries
Chief Counsel Dave Tuason explained that the rule waiver requests must meet very specific requirements.
He noted Blue Oak dispensary requested a rule waiver to permit hemp-derived beverage sales.
“State law prohibits food and beverages in cannabis dispensaries, correct?” Houenou said.
Tuason said the CREAMMA NJ legalization law defines cannabis as “non-hemp.”
“They’re two separate um things…,” he added.
“Although some legislation was passed on hemp… It’s mostly on hold due to litigation,” Tuason noted.
“You’re saying this is out of jurisdiction?” Mapp asked.
“The legislature is the only one that has the ability to amend the statue,” Tuason replied. “Yes…”
So, the CRC denied it 3-0.
SEEF Tax Increase Decision Pushed
Riggs said they’re working on the Social Equity Excise Fee (SEEF) tax increase recommendation and don’t plan to make one by the mandated date of November 1st. So, the CRC pushed the decision 3-0.
A lot of cannabis operators and advocates have opinions on the controversial issue.
Ownership Changes
Riggs noted that ownership application changes were requested:
- Earth and Ivy LLC: Change in ownership structure
- ElevenEleven: Adding new owners
- Garden Greens: Adding new owner
- Leafy D’Lites LLC: Adding new owners
- Shipwreck’d LLC: Adding new owners
- Theory Wellness of NJ: Change in ownership structure
The CRC approved them 3-0.
NJ Cannabis Progress Report
Riggs said there are now more than 260 dispensaries open in New Jersey.
He noted that Illicit Gardens has opened a medical dispensary in Secaucus. They did so after Harmony dispensary fell apart and closed. Illicit Gardens of Missouri then bought its license.
Rigg noted there are 361 cannabis companies with licenses operating now.
He said medical cannabis patient enrolment is down to 55,513 while caregiver and doctor statistics remain steady.
