TRENTON — The state Cannabis Regulatory Commission (CRC) approved certification for expansion of seven medical cannabis dispensaries, know as Alternative Treatment Centers (ATC), to begin selling recreational marijuana. The expansion covers 13 locations in the state since some of the ATCs have more than one.
Recreational sales at ATCs could begin in a month if they pass inspection and pay a $1 million license expansion fee to the state.
The nearest ATC to Cape May County is Acreage CCF New Jersey, with the business name of “The Botanist,” with locations in Egg Harbor Township and Williamstown.
In southern New Jersey, the CRC also approved Curaleaf with locations in Bellmawr, Edgewater Park and Bordentown, and Columbia Care, located in Vineland and Deptford.
At an April 11 special meeting, CRC Executive Director Jeff Brown said ATCs were required to have received approval from the municipality where located, provide proof of sufficient supply to continue to meet medical patients’ needs after expanding into recreational sales, present plans to ensure patient access, have plans to address social equity and safety and have a “labor peace agreement” with a bonafide labor organization.
“As far as our consideration, particularly on the patient’s side, it’s focused on protecting their access, protecting their supply,” he said.
Taken into consideration is the “canopy,” the space ATCs have to grow cannabis, Brown said.
For medical cannabis patients, ATCs must provide 14 hours per week exclusively for patients, exclusive parking options and point of sale at all times, express checkout so they do not have to wait in long lines, method to order products in advance, a patient access hotline, a private counseling area and availability of virtual meetings or conference calls for a patience access plans.
The CRC requires every licensed cannabis business to make a good-faith effort to hire individuals who have either past cannabis convictions or who have lived in an economically disadvantaged area for at least five of the past 10 years, Brown said.
If an ATC is not able to meet the commitment to continue to prioritize access for patients and set aside supply, it would be subject to fines of $10,000 per day. ATCs that routinely are fined because of a lack of supply or access face the possibility of license suspension.
Brown said there were positive changes to market conditions over the past six months with the “canopy” increasing by 80,000 square feet and the cannabis supply increasing every month. Brown said cannabis prices are decreasing. An additional 300,000 square feet of canopy is pending licensing, which initially will be focused on the medicinal cannabis supply.
To forecast the demand for recreational cannabis, the CRC is looking at New Jersey-based consumers, those who come to New Jersey from neighboring states or as tourists and purchase cannabis and the buying habits of medical patients.
Based on a New Jersey cannabis consuming patient population of 130,000 persons purchasing 1 ounce per month, the annual medical demand would be about 97,500 pounds of cannabis.
On the recreational side, the CRC estimated consumers could purchase about 4 ounces of cannabis per year. Those visiting New Jersey would purchase considerably less recreational cannabis, Brown said.
The CRC has forecast a recreational demand of 258,254 pounds of cannabis per year. He said the New Jersey Cannabis Trade Association stated it was growing an average of 65 grams per square foot. Another model is 40 grams of cannabis grown per square foot.
“Both scenarios showed deficits in both markets, but the deficit was only on the recreational side of things,” Brown said.
He said in current capacity, enough cannabis is available to cover medical cannabis consumers at their current rate of purchasing.
“This should also be a call to action for new entrepreneurs,” Brown said.
He said there is unmet demand for the recreational cannabis supply.
Brown said since the commission began accepting applications on Dec. 15, 2021, the commission has received 732 applications. Of that, 251 applications were for cultivation, 135 for manufacturing and 327 for retail stores.
The CRC has not developed regulations for cannabis wholesalers, distributors and delivery services and is not issuing licenses for those businesses at this time, Brown said.
The CRC also approved 34 conditional licenses, of which 14 were for cannabis manufacturers and 20 for cultivators.
– By JACK FICHTER/Sentinel staff
