The NJ Cannabis Regulatory Commission (NJCRC) fined the large cannabis corporation that is a Multi-State Operator (MSO) Curaleaf and other companies for different regulation violations and approved 71 legal cannabis licenses.
Cannabis Enforcement Actions Against Curaleaf and Others
The NJCRC displayed a slide with the following violations:
- The large MSO Curaleaf failed to track records of cannabis properly.
- Leaf Haus was accused of the same issue.
- Green Medicine failed to store cannabis properly, failed to provide video surveil their property, and failed to establish inventory controls.
- Botera Union failed to adhere to personnel policies.
- Green Analytics failed to test cannabis items properly.
- The Social Leaf failed to adhere to the ownership change process too.
Curaleaf Fined
“Not all the transactions were in METRC as per our regs. A timely corrective action plan was submitted,” NJCRC Acting Executive Director Christopher Riggs said about Curaleaf.
NJCRC Chair Dianna Houenou said they should fine Curaleaf $5,000.
“Under our regulations… the Commission has a starting point that it considers for these violations,” she said.
Houenou said $5,000 is the price of a first-time minimum offense which made sense for Curaleaf.
They could consider additional factors as well.
“A mitigating factor was that the business leadership for Curaleaf did seem pretty genuine,” she said. “They were cited for not just record-keeping issues. They also failed to have METRC tags in the building as required, which resulted in more work for our staff.”
Houenou said that the Curaleaf products could have gone into the underground legacy market if not properly tracked.
“Failure to train your staff is a problem of your own doing,” Houenou added. “I believe $5,000 is an appropriate penalty. We need our business leaders to take the rules seriously.”
The NJCRC approved the fine of Curaleaf 5-0.
Curaleaf is one of the largest MSOs and makes millions of dollars a year. A fine of less than $10,000 is not likely to hurt the operations of Curaleaf.
Many in the cannabis community and industry do not like Curaleaf since they often seek to increase their market share at the expense of others.
Petty Fines
Riggs said Leaf Haus failed to document properly and gifted cannabis to employees, some of which was expired.
“There are no free samples allowed under the law and regulations,” he declared.
Riggs said they fixed it but they still should be fined.
The NJCRC approved a fine of $5,000 against them 4-0.
Commissioner Maria Del Cid-Kosso was recused from Leaf Haus due to an ongoing professional relationship.
Green Medicine Fined for Ignoring Rules
Riggs explained Green Medicine was storing cannabis in their designated vault room, which was not approved. They also had a failure to tag plants with METRC tags.
“This went on for some time. They continued to store cannabis in that room even though it was not approved by the Commission,” he explained.
“What was the length of time?” Vice Chair Sam Delgado asked.
“I believe it was several weeks,” Riggs said.
Commissioner Krista Nash asked if they were growing for adult use.
“They were growing medical cannabis,” Riggs replied.
“The compliance officer observed that nearly 80 percent of … their plants were not tagged properly,” Houenou explained. “They had claimed they were holding onto these plants in the hopes of expanding into the adult-use market. At the time, they had not yet been approved … for the adult-use cannabis market.”
Fine Amount Debated
Delgado said they should be fined $5,000.
“I had some hesitancy here in the number Commissioner Delgado imposed. They were brought on more than one occasion. It’s almost as if they were ignoring our investigator. We want to help support you but you need to follow the regs and listen to the investigator,” Nash said.
“The willfulness and the deliberateness of the violation is all the more egregious and warrants and justifies a higher penalty,” Houenou declared.
“Even after this business was notified and informed they were using a room unauthorized for storage of cannabis, they continued to use that room… for more than a month. This business requested in 2023… a waiver to use a vault room that did not meet the medical regulations. Staff rightly denied the waiver. This business decided to use the room unauthorized anyways!” she exclaimed.
“That’s a complete disregard for the Commission. I will not stand for businesses to take advantage of or try to pull one over on our Office of Compliance and Investigations,” Houenou declared.
Houenou wanted to impose a $10,000 fine. She added they are likely to do it again.
The NJCRC approved the fine of $10,000 for Green Medicine 5-0.
No Smoking Weed at a Dispensary
Riggs then explained that Botera Union dispensary allowed cannabis consumption to occur on their premises, which is not allowed.
“Allowing people to smoke indoors without being verified to have the proper ventilation systems in place as required by state law does pose a risk,” Houenou said.
She noted they are in the process of accepting applications for legal cannabis consumption lounges.
Unfortunately, that process has been going on for far too long since the last update on it was in January 2024.
Del Cid-Kosso agreed with the allegation of a health risk from weed being smoked indoors.
“We will be opening applications soon for consumption lounges,” she alleged.
The NJCRC approved fining them $5,000 5-0.
Green Analytics Lab Failed to Test Cannabis Properly
Riggs said Green Analytics failed to test cannabis properly. He explained they were testing for a certain pesticide that was not found in the cannabis.
“All the testing labs were notified at the time that there was a change in the uh testing guidance. They received notification,” Nash said.
“Failure to properly test cannabis products inherently does pose a risk to the health of our consumers,” Houenou declared. “Testing labs carry a big responsibility. They are the principal line of defense against contaminated products.”
She said they must properly document test results.
The NJCRC approved a $10,000 fine on Green Analytics 5-0.
Social Leaf Fined for Improper Ownership Changes
Riggs said Social Leaf changed its ownership without approval.
“Our rules are meant to protect the true owner’s interest in their businesses and their dreams. We do want to let people make business decisions. However, you need to notify us beforehand,” Houenou explained.
She said they wanted to transfer a small amount of equity.
“Part of the reason we require approval ahead of time is to make sure the individuals… meet the standards in the law and our regulations,” Houenou explained. “We want to make sure the true owners have management and control over the business operations.”
The NJCRC approved a $3,000 fine 5-0.
Many companies play shell games in the legal cannabis industry in New Jersey and elsewhere to pretend women and minorities are running companies that White men operate to give them an advantage.
Conditional NJ Cannabis License Winners
Riggs explained the very thorough review process every application goes through.
“We are recommending these 32 license applications be approved,” he added.
1 Boutique Gardens Cultivator Microbusiness
2 NJ Pure Cultivator Microbusiness
3 Skinner Farms LLC Cultivator Microbusiness
4 Agrinity LLC Cultivator Standard
5 Bevrly Delivery Microbusiness
6 The Reefer Group Delivery Microbusiness
7 Urban Goods LLC Delivery Microbusiness
8 Exquisite Images and Fine Entertainment Manufacturer Microbusiness
9 NJ Pure Manufacturer Microbusiness
10 RushBudz Dispensary LLC Manufacturer Standard
11 Agrinity LLC Manufacturer Standard
12 BleuDream Revolution, LLC Manufacturer Standard
13 Blaze Factory, LLC Retailer Microbusiness
14 Hazey Gardens LLC Retailer Microbusiness
15 Natures Cannabliss Retailer Microbusiness
16 New Jersey Cannabis Club Retailer Microbusiness
17 Planet Oz LLC Retailer Microbusiness
18 Sorbays llc Retailer Microbusiness
19 The Reefer Group Retailer Microbusiness
20 Tranquil Herbal Consortium Retailer Microbusiness
21 YGG Drasil Cannabliss Retailer Microbusiness
22 BleuDream Revolution, LLC Retailer Standard
23 Bommer’s Goods LLC Retailer Standard
24 Broad Street Buds LLC Retailer Standard
25 Delta-89, LLC Retailer Standard
26 Gotham 725 Retailer Standard
27 Green Leaf Healing LLC Retailer Standard
28 Hacherl Cannabis NJ Retailer Standard
29 Hashes To Ashes LLC Retailer Standard
30 The Growcery NJ LLC Retailer Standard
31 The Spot NJ Inc. Retailer Standard
32 We the Best NJ LLC Retailer Standard
The NJCRC approved them 5-0.
Conversion License Winners
Riggs explained that conversion license applications won a conditional license first and now want to convert to an annual license to be able to open.
“It is now recommended to the board that these licenses be approved,” he added.
1 Culture Craft Cannabis Collective LLC Cultivator Microbusiness
2 Victorious Gardens Cultivator Microbusiness
3 AGJRA LLC Cultivator Standard
4 Navigator Wellness Group, Inc Manufacturer Standard
5 AC Leef LLC Retailer Microbusiness
6 Budflow Retailer Microbusiness
7 Can XA Group LLC Retailer Microbusiness
8 Green Wellness Haven LLC Retailer Microbusiness
9 Inhale Industries Inc Retailer Microbusiness
10 Leafy D’Lites Retailer Microbusiness
11 Royal Smoke LLC Retailer Microbusiness
12 Taste of Earth LLC Retailer Microbusiness
13 Arbory Wellness, LLC Retailer Standard
14 Magicae Wellness LLC Retailer Standard
15 Neon Heights LLC Retailer Standard
16 Pink Balloon, LLC Retailer Standard
17 Public Absecon Inc. Retailer Standard
18 Smoking Classics Inc. Retailer Standard
19 The Goods Supply Co. Victory Gardens LLC Retailer Standard
20 The Wildflower Market LLC Retailer Standard
The NJCRC approved them 5-0.
Annual NJ Cannabis License Winners
Riggs noted among the annual license applicants needed to open is a testing lab.
“They’ve been deemed qualified to hold a license,” he added.
1 Green Oasis Dispensary NJ, LLC Cultivator Microbusiness
2 Raritan Growth LLC Cultivator Standard
3 Shiv Leela NJ, LLC Cultivator Standard
4 Culture Craft Cannabis Collective LLC Manufacturer Microbusiness
5 E. V. LLC Manufacturer Microbusiness
6 Parks Grove Manufacturer Microbusiness
7 Bango New Jersey Inc. Manufacturer Standard
8 Bud’s Goods of NJ Corp Manufacturer Standard
9 Fresh Cut Cannabis Inc. Manufacturer Standard
10 Raritan Growth LLC Manufacturer Standard
11 Canabhang Retailer Microbusiness
12 A-Z Supply Inc Retailer Standard
13 Cannabista, LLC Retailer Standard
14 Cannapi Retailer Standard
15 Discofries LLC Retailer Standard
16 Raritan Growth LLC Retailer Standard
17 RC Group Bloom LLC Retailer Standard
18 The May Queen NJ LLC Retailer Standard
19 Anresco NJL LLC Testing Standard
The NJCRC approved them 5-0.
Expanded ATC License for Adult-Use Cannabis Growing
Riggs explained that one medical cannabis grower wants to grow adult-use recreational cannabis.
“They have certified they have sufficient quantities of medical cannabis,” he said.
Niche LLC 2600 71st Street, North Bergen, New Jersey Class 1 Cannabis Cultivator
The NJCRC approved them 5-0.
Intoxicating Hemp Regulations Coming
Houenou noted that Governor Phil Murphy (D) signed the intoxicating hemp regulation bill last week.
She said they’ve been concerned about unsafe products.
“The legislation addresses the proliferation of these untested, unregulated, intoxicating THC hemp products in the market,” Houenou noted. “These sales are not age-gated. There is a lot of interest in hearing about the Commission’s next steps.”
As Gov Murphy noted some late amendments do present challenges in its implementation and enforcement,” she added. “We at the Commission are working closely with our state partners on implementation and regulations governing the sales of intoxicating hemp-derived products will be developed in the future.”
“I will continue to emphasize the importance of transparency,” Houenou said. “The Commission will make every effort to make ample notice before changes are implemented.”
Cannabis Licenses in Limbo
She added many applications are in limbo.
They probably gave up because of government red tape and the barriers to entry like lack of money.
“Ensure your contact information is up to date,” Houenou said.
“We’re happy to see efforts being made to close the regulatory loop hole to be closed here,” Riggs said about the hemp bill. “It’s a step in the right direction.”
He noted many dispensaries have opened.
Riggs noted they had approved 1475 conditional licenses, 367 conversions to annual licenses, 194 straight annual licenses, and 78 medical Alternative Treatment Centers expanded to adult-use cannabis.
Riggs said they are down to 72,336 official New Jersey medical cannabis patients from about 125,000.
Nash described the feedback from the private medical cannabis stakeholder meetings and alleged they were transparent.
“We had over 500 responses from people interested in weighing in,” she said.
“Your input matters,” she claimed.
Houenou said feedback received will shape the New Jersey medical cannabis rules.
Edible Rules Now Permanent
Chief Counsel Dave Tuason explained the NJCRC allowed legal cannabis edibles on a temporary basis and now they must formalize the rules.
The new rules expand the edible products initially allowed, like the brownies by ButACake and chocolates by Inclusion Gourmet.
“Beverages are limited to 5 mg of THC per single serve. These products are required to be made by Class 2 manufacturers,” he noted.
Tuason said they received a lot of feedback asking for more edibles.
“It is an ever-evolving industry,” he added.
The NJCRC approved them 5-0.
Ownership Changes
Riggs said 5 requests were submitted:
- Cure Wellness LLC is adding a new owner.
- Flower and Flame is adding new owners.
- GDBS Distribution is adding new owners
- Lucky Buds LLC is changing its ownership structure.
- TCG New Jersey is changing its ownership structure.
The NJCRC approved them 4-0-1, with Commissioner Charles Barker abstaining.
NJ Cannabis License Renewals
Riggs noted the large MSO Bloc and Garden State Botanicals were up for renewal for adult-use cannabis sales after their 1st year.
This is why they are called annual licenses.
“If you have an ownership change or you have some kind of change to your business… please do not wait until the time of renewal to submit those changes,” he said those changes should be sent immediately.
- Phula
- Garden Greenz
- Hackettstown Dispensary
- Cloud 9 Dispensary
- The Cannabis Place 420 Corp.
- Garden Greens LLC
- Soulflora
- Hello high Dispensary
- 1634 Funk
- Phasal
- Pure Blossom LLC
- Inclusion Gourmet
- Loud Labs NJ
- Med Leaf
- Hamilton Farms
- Baked By The River
- Evolve Cannabis
- The QCC Group
- Highway 90
- E.V. LLC
- Elevated Herb
- Nightjar Holdings
- Fire and Oak
- The Cannabis Clubhouse
Houenou said waiting to submit changes slows down the process.
The NJCRC approved them 4-0-1.
Public Comment Period
Alyza Brevard Rodriguez of the Coffee and Cannabis podcast and The Other Side Dispensary upcoming in Jersey City complained during public comment of being ignored by the NJCRC despite her status as the Goldilocks type owner many social justice advocates want to see open.
“I really, really feel like this State has failed me,” she declared.
“We are in real danger. It has taken 30 months to get through this process. I’m sitting on a beautiful dispensary ready to serve my community,” Brevard Rodriguez said. “It cost 1.3 million of Black and Brown-owned dollars.”
Several hemp business owners expressed concerns about the new regulations hurting their small businesses.
In addition, UFCW labor union leader Hugh Giordano said that hemp companies can get through loopholes at the expense of the licensed New Jersey cannabis industry and its workers.
The licensed cannabis companies are also looking for loopholes at the expense of their workers, he added.
