New Jersey Cannabis Regulatory Commission Releases Expanded Guidelines, Releases Demographics
At a busy rally for the New Jersey Cannabis Regulatory Commission last Thursday, the commission approved and formally proposed three new types of licenses – Class 3 Cannabis Wholesalers, Class 4 Cannabis Distributors, and Services. class 6 cannabis delivery service.
The proposed new license types will be approved in August, after a public review period. The CRC did not say when the application window would open.
Since New Jersey’s cannabis industry is not vertically integrated, applicants looking to enter the market will need to decide whether they wish to pursue cultivation and processing or distribution, delivery and wholesale.
According to state officials, here are some key points about what the proposed licenses can and cannot be used for:
Class 3 cannabis wholesalers can:
- Purchase usable cannabis, cannabis products from another cannabis wholesaler, grower or manufacturer for resale to another wholesaler, manufacturer or retailer
- Store and warehouse business and they can transport cannabis and usable cannabis products to wholesale manufacturer or retailer
Class 3 cannabis wholesalers cannot:
- Grow or Pack Cannabis by Yourself
- Produce manufacture cannabis products and they cannot transport sell cannabis or cannabis products or accessories directly to a consumer for the class of distributors
Class 4 cannabis distributors may:
- Transporting Unusable Unusable Cannabis Between Growers and Manufacturers
- Transport cannabis and usable cannabis products between other cannabis establishments
- Possess and perform unusable unusable vertical cannabis storage
Class 4 cannabis distributors cannot:
- Cultivate, manufacture or package cannabis or cannabis products
- Sell cannabis product accessories directly to consumers
- Buy or resell cannabis products
Class 6 cannabis delivery services may:
- Obtain cannabis articles, cannabis accessories and related supplies from a cannabis return for delivery to a consumer
- Transport such cannabis and usable cannabis products directly to a consumer
- Return sold cannabis and usable products and accessories to its originating cannabis retailer
Class 6 cannabis delivery services cannot:
- Cultivate, package or manufacture cannabis products
- Transport, transfer or sell cannabis products or accessories to other cannabis businesses other than a return to the retailer where the purchase order was fulfilled
- Store cannabis or cannabis-based products at their administrative office
State officials also moved to expand flexibility for New Jersey micro businesses, clarifying that areas such as break rooms and bathrooms do not count toward the 2,500 square foot limit set by the law. law. They also codified sales limits for recreational consumers – 1 ounce of cannabis flower, 4 grams of extracts or concentrates, or 1,000 mg of THC in edible form and asked retailers to provide information to consumers on the safe use of cannabis when buying adults. consume cannabis products.
State officials also decided to establish a social equity excise tax of ⅓ of 1% of the average retail price of $1.10 per ounce in fiscal year 2022, which is expected to reach $191,250 in fiscal year 2022 and $3.5 million in fiscal year 2023.
Although the Governor and Legislature ultimately decide where funds go, the CRC can make spending recommendations.
“We recommend investing the funds in grants and low-interest loans for aspiring entrepreneurs in impact areas and economically disadvantaged areas, or areas with other economic designations,” the official said. CRC Executive Director, Jeff Brown.
The CRC also released data on the demographic makeup of conditional licenses to date and the breakdown of racial and ethnic groups represented. As of June 9, the majority of conditional licenses do not belong to various owners. Here are some of the state numbers. You can access the full presentation here.