W. Cape May, one of county towns that approved them, gets an introduction
By JACK FICHTER/Sentinel staff
WEST CAPE MAY — The state Cannabis Regulatory Commission (CRC) has issued its initial rules for the personal use of cannabis and regulations for municipalities.
During a West Cape May Borough Commission meeting Aug. 25, borough solicitor Frank Corrado said the initial document totaled 171 pages with more to come. He said the borough’s ordinance allowing retail sales and cultivation of marijuana appears to be consistent with the new CRC regulations. He said the borough may have to make some minor tweaks to its ordinance.
West Cape May and Lower Township are among the communities in Cape May County that voted to allow cannabis sales.
Ocean City, Upper Township and Sea Isle City are among those that voted against cannabis businesses.
“We’re still a good year away from the state issuing any cannabis licenses, at least in my opinion,” Corrado said.
Deputy Mayor Peter Burke noted West Cape May is permitted only one liquor store by the state and asked if due to the small population of the borough, it was limited to only one cannabis retail establishment.
Corrado said he did not believe the current crop of regulations addressed that question.
“What it does do is say that the priority is going to be given to social equity businesses, that is to say businesses owned by people that live in economically disadvantaged areas of the state,” he said.
According to CRC regulations, social equity businesses will be required to have 50 percent ownership by a person with previous marijuana convictions or a person who has lived in an economically disadvantaged area for the last five years.
Corrado said priority would be given to minority-owned businesses and those owned by women and disabled veterans.
The state will control the overall number of cannabis business licenses, he said.
While decriminalization of marijuana in New Jersey allows persons to possess as much as 6 ounces of cannabis, state regulations stipulate those 21 and older may possess only 1 ounce. Growing marijuana at home is not permitted.
CRC regulations ban the sale of cookies, brownies and any other products resembling food. Those who want to ingest cannabis will take it as a pill, liquid, chewable or gummy. The CRC did not rule out permitting edibles in the future.
The state will license only 37 new marijuana growers. The state did not impose limits on other types of licenses such as retail, manufacturing and delivery.
A small marijuana business employing 10 persons or fewer would not count toward state limits on licenses and would pay 50 percent of license fees, if the ownership resides in New Jersey.
Cannabis businesses are required to contain odors and engage with neighbors who may have concerns about their presence, as well as create and implement environmental sustainability plans. To facilitate quick resolution to issues or concerns from the surrounding community, cannabis businesses will be required to have a staff member whom neighbors can call to report any nuisances. Community residents will also be able to report issues directly to the regulatory commission.
Inside a cannabis retail business, personnel will be required to have consumer education materials available for customers, including information on potential side effects of cannabis use, safe techniques for using cannabis and indicators of substance abuse. Products sold in stores will be required to come with warning statements about potential health risks as well as the hotline for accessing poison control centers.
The use of cartoons, trademarked images, candy, food or anything that may be attractive to children is strictly prohibited. The rules require that packages be childproof both before being opened and when resealed.
Microbusinesses, which are limited to 10 employees and premises no larger than 2,500 square feet, will also be prioritized and, if successful, allowed to apply to expand their business in accordance with consumer demand. Initial application fees are structured to be affordable, starting as low as $100 just to submit an application. Annual license fees range from $1,000 for a microbusiness to $50,000 for a cultivator with as much as 150,000 square feet of cultivation capacity.
Cannabis businesses will be licensed by the CRC only if they have demonstrated support from the municipality, zoning approval and have been verified to operate in compliance with any municipal restrictions. Municipalities can determine hours of operation, the number and kinds of licensed businesses operating within their borders and whether to enact a 2 percent transfer tax on any sales between cannabis businesses. They can also enact any requirement or restrictions on cannabis businesses that would apply for other business types, such as requiring compliance with all relevant codes and ordinances. Municipalities will also have the opportunity to weigh in on which applicants seeking to operate within their town should be issued a license from the CRC.
Every individual who works in or works with cannabis on behalf of a licensed cannabis business will need to register with the CRC and will be issued a Cannabis Business ID Card. The fee for the ID card will be $25 yearly, and prospective employees will need to complete a brief training course in order to be approved by the CRC.
All cannabis items will be packaged in fully enclosed child-resistant packaging and will be labeled with information and any warnings required by law, a summary of the product testing results, any ingredients used in cultivation or production of the cannabis item, and the serving size. For cannabis flower, in addition to the potency from the test results, labels will note whether the flower is high, moderate, or low THC, and whether it is high, moderate, or low CBD, consistent with its chemotype.
Labels will contain health warnings for consumers urging them to avoid driving or operating heavy machinery while using cannabis, potentially avoid use altogether when pregnant or breastfeeding, and will note that high potency products may present risks to mental health. Packaging and labeling will be prohibited from containing any false or misleading statements and will contain a universal warning symbol designated by the CRC.
Cannabis businesses will be allowed to advertise but with significant restrictions. Advertising will be restricted to mediums where the audience is determined to be primarily over the age of 21. Television and radio ads will only be allowed between 10 p.m. and 6 a.m., and advertisers will be restricted from promoting overconsumption or making any claims not supported by credible research.
The CRC is authorized to inspect cannabis businesses and testing laboratories, issue notices of violations for regulatory infractions, and issue fines were deemed appropriate. Standard fines can be no higher than $50,000, while fines for infractions implicating issues of public safety or welfare, or a betrayal of public trust, can be as high as $500,000.
Home delivery is allowed under the rules and, pursuant to the law, can be done by cannabis delivery services or delivery personnel hired by the retailer. Delivery vehicles will need to have GPS tracking and secure lockboxes and not be easily recognizable as cannabis delivery vehicles.
