The NJ Cannabis Regulatory Commission (NJCRC) slightly increased the Social Equity Excise Fee (SEEF) tax and launched the cannabis consumption area approval process.
They also approved 53 new cannabis licenses.
Social Equity Excise Fee SEEF Tax Increase
NJCRC Acting Executive Director Christopher Riggs explained that the Social Equity Excise fee …. requires an increase when the average retail price of an ounce of usable cannabis is less than $350.
He explained that it was set to be increased to $30 an ounce of usable cannabis and 8 of an ounce of unusable cannabis for the purpose of manufacturing.
The current price of an ounce of cannabis, Riggs said, is $330.68 per ounce.
“Raising the Social Equity Excise may seem like a quick solution,” Vice Chair Sam Delgado said. “However, … business sustainability cannot be ignored.”
“We in the New Jersey Cannabis Regulatory Commission must strike a balance ensuring that the cannabis industry remains competitive, inclusive, and capable of supporting social equity goals without excessive taxation increasing the price for consumers, and driving operators out of the market,” he explained.
Delgado proposed it be set at $2.50 per ounce of usable cannabis and waive any tax per ounce of unusable cannabis sold for the purpose of manufacturing.
Commissioner Krista Nash seconded his motion.
NJCRC Chair Dianna Houenou wanted to know more about unusable cannabis for the purpose of manufacturing.
“Half of the products sold items are manufactured, correct?” she asked.
“Little above 40 percent,” Riggs said.
“We’ve been working on this important matter,” Commissioner Charles Barker explained. “We’ve been trying to strike a balance, especially at this early stage of the industry. This seems to be fair at this stage of where we are in the New Jersey cannabis marketplace.”
He said they spoke to many stakeholders who endorsed it.
“We hope that tax revenue is going toward new state programs and not just existing programs,” Barker said about the revenue.
NJ Cannabis Prices Too High
“We hope prices continue to decrease significantly. We know New Jersey still has some of the highest cannabis prices in the nation despite similar products in other states,” he explained.
Barker hoped that prices would be more affordable with more supply available.
“We hope new cultivators who we are concerned about, we hope they’re able to afford and potentially absorb the fee and still maintain competitive margins for their business,” he said. “We have to work together to make this marketplace as equitable and beneficial as possible, especially for those most harmed by the failed Drug War.”
“Some might think this market in New Jersey is mature. I would tend to disagree. So that $30 excise fee would decimate some businesses, and we certainly don’t want to undo what these businesses create,” Nash said.
“I want to recognize the importance of funding programs through Social Excise Equity Fee that enriches the lives of communities, of certain communities,” she added.
“This was definitely an issue for applicants and licensees,” Commissioner Maria Del Cid-Kosso noted.
“We want to make sure that medical cannabis specifically remains down and keeps decreasing because our patients deserve that. At the same time, adult-use we’ll keep a close eye on that. Hopefully, um our partners and licenses work with us in that regard,” she said.
Slight SEEF Tax Increase
Chief Counsel Dave Tuason noted the current SEEF is $1.24 for both usable and unusable cannabis.
Delgado made a motion to wave the regulation and set the SEEF at $2.50 on usable cannabis and no fee on unusable cannabis.
Houenou said she wanted to make sure any excise fee imposed applied to both.
“I will make a motion to amend the underlying motion. So that the new Social Equity Excise Fee that is being proposed by Vice Chair Delgado of $2.50 is applied to both usable and unusable cannabis to continue consistency,” she said.
“You’re using it for something,” Delgado noted.
Houenou said the difference between “usable” and “unusable” cannabis in the regulations is that parts considered “unusable” are converted into concentrates and extracts.
Stems make good dabbing material after processing.
“Unusable cannabis does play a significant role when it comes to products and for the application of the excise fee,” she explained.
The NJCRC then set the SEEF at $2.50 for both usable and unusable cannabis in a 4-0-1 with Barker abstaining.
Therefore, the increase will be slight.
Cannabis Consumption Areas Process Launches January 2nd
Tuason explained that in January, the CRC did a notice on the rules for Cannabis Consumption Areas following the regulatory process.
So, a portal application process has been established. There will be an uncapped number of Cannabis Consumption Areas licensed.
The CRC will begin accepting applications on January 2nd from Social Equity and Economically Disadvantaged Areas businesses only. On April 2nd, micro and diversely owned, and on July 2nd, applications from everyone else then accepted.
Since it is subject to local approval, there is an unknown town cap on Cannabis Consumption Areas.
Tuason stressed Americans with Disabilities Act (ADA) compliance.
It will cost $1000 to apply as a micro dispensary and then $5000 as a standard dispensary license.
Del Cid-Kosso also stressed ADA compliance.
The NJCRC then approved the Cannabis Consumption Areas process launching 4-0-1 with Barker abstaining.
Many dispensaries like High Rollers in Atlantic City, Hashstoria in Newark, and Xena in Jersey City want to open cannabis consumption areas, along with many others.
Conditional License Winners
CR explained the process by which the complex process companies followed to win conditional licenses:
1 Alltechneeds Corporation Cultivator Microbusiness
2 Blazin Buddiez Cultivator Microbusiness
3 Global Grown, Inc Cultivator Microbusiness
4 High Grade Farms LLC Cultivator Standard
5 Hi Cannabis LLC Cultivator Standard
6 Fresh Frozen Factory LLC Cultivator Standard
7 Fresh Start Farmers Cultivator Standard
8 Global Grown, Inc Manufacturer Microbusiness
9 Canna Source LLC Manufacturer Standard
10 Hashery, LLC Manufacturer Standard
11 Hi Cannabis LLC Manufacturer Standard
12 Fresh Frozen Factory LLC Manufacturer Standard
13 Fresh Start Farmers Manufacturer Standard
14 High Grade Farms LLC Manufacturer Standard
15 Anything Else LLC Retailer Microbusiness
16 Collective Beleaf, LLC Retailer Microbusiness
17 Dank the bear Retailer Microbusiness
18 Victorious Gardens LLC Retailer Microbusiness
19 Canna Bloom Corporation Retailer Standard
20 Dr. Nugz Retailer Standard
21 Flower Town LLC Retailer Standard
22 Friendly Uncle Bob LLC Retailer Standard
23 Hi Cannabis LLC Retailer Standard
24 High Horse Dispensary LLC Retailer Standard
25 Get It All Delivery Delivery Microbusiness
They approved them 4-0-1, with Barker abstaining.
Conversion to Annual License Winners
Riggs explained several companies won conversions from conditional licenses to the annual licenses needed to open:
1 A Grow Culture LLC Cultivator Microbusiness
2 Happy Kola Brands, LLC Cultivator Microbusiness
3 Proper Releaf LLC Cultivator Microbusiness
4 Greenway Systems LLC Cultivator Standard
5 GTE NJ Cultivator Standard
6 Greenway Systems LLC Manufacturer Standard
7 BUKU Culture LLC Retailer Microbusiness
8 Green Eyed Chief Retailer Microbusiness
9 Legacy Leaf Retailer Microbusiness
10 Liberty City Weed Deliveries Retailer Microbusiness
11 Memes Danckk World Retailer Microbusiness
12 Organic Fusions LLC Retailer Microbusiness
13 Premium Dispensary LLC Retailer Microbusiness
14 Tangerine Tree Dispensary LLC Retailer Microbusiness
15 The Number Spot Inc Retailer Microbusiness
16 Bridgeton Cannabis Retailer Standard
17 INSA Middle Township LLC Retailer Standard
18 Salus Wellness Retailer Standard
The NJCRC approved them 5-0.
The small Multi-State Operator (MSO) Story Springfield dispensary was then separated because Del-Cid Kosso had a conflict of interest “due to an ongoing professional relationship” and could not vote on it.
CR said it went through the process the others went through. They approved it 4-0.
Annual NJ Adult-use Cannabis License Winners
The following companies won the annual license needed to open.
1 Boutique Gardens Manufacturer Microbusiness
2 Capitol Extracts NJ LLC Manufacturer Standard
3 Denver Cole Farms New Jersey, LLC Manufacturer Standard
4 GTE NJ Manufacturer Standard
5 City Farms LLC Retailer Microbusiness
6 Atlantic License Development, LLC Retailer Standard
7 Gas & Grass LLC Retailer Standard
8 HZY Goods LLC Retailer Standard
9 Root 22 Dispensary LLC Retailer Standard
10 Star Leaf Dispensary Retailer Standard
Delgado wanted to consider Atlantic License Development separately.
They approved 9 first 4-0.
Nash argued they provided false or intentionally misleading information.
Houenou agreed and said they provided false operational material.
The NJCRC then denied it 4-1, with Barker voting no.
Medicinal Cannabis Permit Renewals
Riggs explained that 87 permit New Jersey medical cannabis renewals were up that. Twelve manufacturers, 22 cultivators, and 53 dispensaries or retailer permits were set to be reviewed.
The following companies had their medical license renewed:
- Acreage CCF of New Jersey
- Ascend NJ
- Aunt Mary’s Dispensary
- Ayr Wellness
- BLOC
- Breakwater Treatment & Wellness
- Brute’s Roots
- Columbia Care NJ
- Curaleaf NJ
- Design 710
- Downtown FLWR
- Eastern Green
- Garden State Botanicals
- Garfield Dispensary
- Green Medicine NJ LLC
- GSCC Management
- GTI
- Hillview Med
- Holistic Solutions
- Honeygrove South Corp
- Illicit Gardens
- Monteverde
- MPX NJ
- Niche
- NJ Leaf
- Restore NJ LLC
- RIPT Dispensary
- Roots Dispensary
- Sanctuary Cannabis
- Silverleaf Wellness
- Sweetspot Dispensary
- TerrAscend
- The Station, Hoboken
- Theo A Cannabis
- Theory Wellness of NJ LLC
- URB’N Dispensary
- Valley Wellness
- Verano NJ
“There are businesses in these renewables that I believe in my opinion, appear to be violating employee labor rights,” Nash said.
She said workers have a right to join a union.
“The Commission should gather all information it can to see if a violation is warranted,” Nash said. “I’m putting businesses on notice that’s the avenue I think we should explore.”
Houenou asked Riggs if he thought they could work on that.
“Absolutely. We’ll open an investigation,” Riggs said.
The NJCRC then renewed them 4-0-1, with Barker abstaining.
Annual License Renewals
Riggs noted several license holders provided all the paperwork for annual license renewals.
The following companies completed their first year of operations.
- MPX New Jersey LLC
- The Station, Hoboken
- Monteverde NJ, Inc
The following companies wanted their annual license renewed for a 2nd year.
- Trichome Analytical
- Green Analytics East LLC
- New Jersey Cannalytics LLC
- Sriven Labs LLC
- Smithers CTS NJ
- Highgrade Labs of New Jersey
- Prolific Growhouse
- Dank Poet Society
- Gynsyng
- The Leaf Joint LLC
- Holistic Re-Leaf
- Little Leaf Labs
- Jersey Roots Dispensary
- Hera Solutions
- Blue Oak NJ 1 LLC
- Lemon 22 Dispensary LLC
- High Profile Lakehurst LLC
- Legal Distribution LLC
Riggs urged them to provide paperwork quicker.
“It’s becoming excessive,” Houenou said.
The NJCRC then approved the license renewals 4-0-1, with Barker abstaining.
Ending Patient-Only Hours at Alternative Treatment Centers
Tuason explained NJ Cannabis Trade Association (NJCTA) wanted to eliminate patient-only hours at Alternative Treatment Centers (ATCs) along with separate patient sections of dispensaries.
Delgado asked if they could still prioritize patients and eliminate patient-only sections.
Houenou moved for the NJCRC to approve the request to deal with patient-only hours but still require expedited access and designated Points Of Sale (POS) like exclusive patient cash registers.
Del Cid-Kosso said they wanted to ensure patients get medication in a timely manner.
She said it was important to “monitor expanded ATC’s commitment to our patients.”
Most of the ATCs are MSOs.
Houenou noted that since there are more dispensaries, it is easier to eliminate patient hours but keep patient prioritization, like select cash registers.
It passed 4-0-1, with Barker abstaining.
License Ownership Questions
Tuason explained Simply Pure Trenton wanted to waive approval that one person or company can only be majority owner on one license for the purpose of cultivation.
Barker supported approval, but no one else did.
Nash moved to deny it.
Barker said those most impacted by the War on Drugs and Social Equity owners should benefit and thrive.
“I don’t disagree with the sentiments,” Houenou said. “However … it’s not possible to allow multiple entities or individuals to own a single license. Multiple people can have ownership of the business. They can have joint ownership of a business.”
Barker wanted to know why it couldn’t be done.
“The license is issued to one business,” Houenou noted.
Barker said they could change the rules.
Tuason said it would be an elaborate process to change the rules like the Cannabis Consumption Areas process that has lasted throughout 2024.
Houenou explained said a company could become an owner of Simply Pure, which they could approve. But that’s different than what was proposed.
So, it was denied 4-1, with Barker voting no.
Nevaeh Verde wanted a similar exception.
“We’re missing an opportunity to level the playing field,” Barker argued.
Del Cid-Kosso argued they are doing everything they can.
So, they denied it 4-1, with Barker voting no.
Cannabis License Ownership Rules Change
Cannabis MD LLC wanted to change rules around the majority ownership interest remaining the same for two years after opening.
Houenou said they would approve majority business ownership transferals to other existing owners only. So, it would not benefit new owners.
Tuason said it would only apply to this one company.
They approved it 4-0-1, with Barker abstaining.
Organic Farms Corporation requested a waiver on the 1 year needed to convert a micro license to a standard license.
Nash moved it to deny it along with Neptune’s Garden, and Shnicks Snacks. They were all voted down 4-0-1, with Barker abstaining.
Aunt Mary’s wanted to waive the fee for converting their growing operation to adult-use cannabis sales. But Nash moved to deny it, and Houenou agreed, so it was denied 5-0.
Hudson Distribution Services LLC wanted to change the rules on distribution route rules. But Houenou thought the cannabis could get stolen, and it was denied 5-0.
Family Business Ownership Rules
NJWeedman’s Dispensary wanted to waive a rule limiting family members on license ownership.
Barker moved to approve it, but no one agreed.
“I have seen it flagged on many apps that families try and corner the market, businesses, sometimes up to 8 family members will try to obtain a license. The law is what it is to make this a fair and equitable market,” Nash said. “Some families can afford to have many businesses, and others can’t.”
So, it was denied 4-1- with Barker voting no.
Year in Review
Riggs explained their progress this year.
“New Jersey can be the premiere cannabis market on the East Coast,” he declared.
Riggs was confident the market would hit $1 billion in sales by the end of the year.
He explained that there are 115 applications under review, 361 were cured or needed work, and 180 applications are under investigation.
The total number of NJ adult-use cannabis licenses approved was 395 conversions to annual licenses, 220 annuals, and 80 expanded Alternative Treatment Centers ATC by location for 383 adult-use cannabis licensed companies are operating now.
Riggs said the patient count is down to 66,378.
