TRENTON — In Colorado, they call them cannabis consumption lounges and New Jersey may soon permit areas where likeminded persons can partake of marijuana in a group setting with features such as big-screen TVs, music and free rolling papers.
The state Cannabis Regulatory Commission (CRC) approved rules for cannabis consumption areas Jan. 17 that would allow such an area to be attached to a class five retailer subject to CRC and municipal approval.
The sale of tobacco products, alcohol and food would be prohibited in consumption areas.
Patrons would be required to present photo identification to show proof of age — 21 years or older. Medical cannabis patients would be allowed to bring their own cannabis items from other legal retailers.
Patrons would be allowed to consume food or have food delivered, if allowed by the business and municipality.
CRC Chief Counsel Chris Riggs said an initial or renewal fee of $1,000 would be levied for a cannabis consumption area for microbusinesses and $5,000 for a standard business. CRC approved a resolution that will be followed by legal advertisement in the New Jersey Register this month.
The commission will release information on how to apply for a consumption area next month, CRC Executive Director Jeff Brown said.
Brown said 2,461 license applications have been received by the commission with 1,695 approved and 161 applications under review in the Office of Licensing; 311 applications pending resubmission following correction of an error and 187 applications under review in the Office of Compliance and Investigations.
He said CRC was taking just under 90 days to approve conditional licenses and about six months for annual licenses.
“We eclipsed 90 dispensaries in total between medicinal and recreational and we’re now covering 20 out of 21 counties in the state of New Jersey,” he said. “One of the things that we’re going to see in 2024 is a lot more openings from cultivators, manufacturers, these are companies that take longer to get open just because of the complexity of the construction of the business.”
Brown said overall, the CRC has approved 1,322 conditional licenses, 233 conditional-to-annual conversions, 141 annual licenses which allow full operation and 71 expanded alternative care centers (ATCs).
During the meeting, the CRC approved 22 conditional applications, 36 conditional-to-annual licenses and one expanded ATC. Of the 22 conditional licenses, seven were for cultivators, two for manufacturers, two wholesalers, one distributor, nine retailers and one delivery service.
A conditional license is a provisional license pursuant to an abbreviated application process that gives applicants more time to get property or municipal approval. It does not allow the business to operate. An annual license allows a cannabis business to operate following state inspections of the property.
As of Jan. 16, the medicinal cannabis program had 88,670 patients, 5,277 caregivers and 1,525 doctors. Brown noted the CRC website offers a “find a licensed dispensary page” at nj.gov/cannabis.
CRC Director Wesley McWhite said of 374 annual licenses awarded, 65, or 17%, were social equity businesses and 266 licenses, or 71% awarded, were for diversely owned businesses. He said majority-owned Black, Asian and Hispanic and disabled veteran-owned business that were not yet operational stated they were experiencing local planning and zoning board issues, administrative turnover at the local level, funding problems and keeping their investors educated about the changes in the market, and when they will be able to open.
He said there is a shortage of properties, rising construction costs due to inflation and “cannabis stigma.”
By JACK FICHTER/Ocean City Sentinel