Awarded for cultivators and manufacturers of recreational marijuana
TRENTON — The state Cannabis Regulatory Commission (CRC) has approved 68 conditional licenses for cultivators and manufacturers of recreational cannabis products.
At a meeting March 24, the CRC delayed acting on applications for cannabis retail stores and allowing eight Alternative Treatment Centers (ATCs) that provide medical marijuana to patients to expand into supplying recreational cannabis.
The 68 conditional license applicants represented 230 persons of interest of which 28 percent identified as Black or African American, 39 percent white, 17 percent unidentified, 10 percent Hispanic or Latino, and 8 percent Asian, according to CRC Executive Director Jeff Brown.
The CRC began accepting applications for cannabis retailers March 15.
Brown said 43 awardees for medical marijuana operations were still in progress in the investigation and implementation stage. He said the applicants submitted criminal history background checks, corporate documents and documents that verify information in their applications.
Vertically Integrated Operations, those that grow, manufacture and have retail sales of cannabis as one business, should be operational in 18 months, Brown said.
CRC Deputy Executive Director Kelly Anderson-Thomas said the commission began accepting applications for class one cultivation, class two manufacturing and testing laboratories Dec. 15, 2021.
“During this very short 90-day period, the commission has now received over 675 total applications with 265 of those just in the past week,” she said.
Of 626 applications received as of March 17, 87 percent were for conditional licenses.
“Conditional licenses are the first step for those businesses that may not have all their ducks in a row,” Anderson-Thomas said.
She said the award of a conditional license allows the awardee to move forward in the process of finalizing the cannabis business by securing a location, obtaining approval from the municipality, submitting the required standard operating procedures and other requirements.
Of the 626 applications, 234, or about 37 percent, were for microbusinesses with 10 or fewer employees. The remaining applications were for standard businesses.
The majority of applications, 245 or 39 percent, were for class one cultivation.
“However, given our most recent opening for retail licenses, retailers are coming in at a close second with 232 applications submitted as of March 17,” Anderson-Thomas said.
Of the applications submitted to date, 28 percent have self-identified as a social equity business.
Anderson-Thomas said of the total applicant pool, 70 percent have been self-identified as diversely owned businesses. She said there is an investigative process and not all businesses will qualify as diversely owned.
A total of 371 applications are in the review process with at least 184 applications found incomplete and returned to applicants to “cure and resubmit,” Anderson-Thomas said.
Some applicants have failed to submit their 2021 tax return or a personal history disclosure form with their application, she said.
The CRC voted to delegate authority to the chairperson and executive director to act on issues of cannabis product recalls and destruction of products due to contamination.
Brown said the CRC has implemented third-party testing standards. Cannabis products are tested for potency and contamination such as heavy metals or mold. When the products fail those tests, that cannot be sold to patients or caregivers.
ATCs must test batches before they are released to the public.
The CRC delayed approving expansion of ATCs to include recreational cannabis sales which must certify they have enough supply to not impact medical patients use. Brown said the launching of recreational marijuana sales would stress the cannabis market.
Eight ATCs submitted applications to expand into recreational cannabis sales which required proof of adequate supply and municipal approval and submission of a plan addressing safety and social equity.
“They also have to pass an inspection showing they can operate in compliance with all our regulations including packaging and labeling, product testing and have the right protocols in place to prevent anyone under the age of 21, who isn’t a patient, from purchasing cannabis items,” Brown said.
He said supply of cannabis was far short of what was required to support a vibrant medicinal and recreational cannabis market.
“Our projections show the market is still undersupplied by about 100,000 pounds for recreational,” Brown said.
That projection assumes a low number of recreational demand initially, essentially 4 ounces per year per consumer in New Jersey and 1 ounce per year of consumers coming from other states, Brown said.
“It’s important to note that we have to solve for the most vulnerable patients here, those with terminal cancer, ALS, MS and other debilitating diseases, patients who have trouble getting to the dispensary on a good day,” he said. “How do we ensure they have no disruption in their care?”
Brown said starting this week, the CRC would send an interdisciplinary team to each of the eight ATCs that have submitted a certification. He said their goal was to address any issues with the certifications on the spot and conduct an on-site assessment.
The CRC wants ATCs to explore home delivery options for patients.
Commissioner Charles Barker encouraged those who wished to operate a cannabis business in New Jersey to apply.
“Our applications are accepted on a rolling based on market demands, and as of now, it will remain open for the foreseeable future, so we hope to see you in our industry soon especially brothers and sisters and to communities that have been impacted and devastated by the War on Drugs,” he said. “The time is now.”
By JACK FICHTER/Sentinel staff