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Cannabis Industry Marks Its First Year
By Larry Feld Contributing editor , COMMERCE
With the stroke of the governor ’ s pen , recreational cannabis became New Jersey ’ s newest industry on April 21 , 2022 . “ It ’ s been an exciting year ,” according to Samuel Delgado , vice chair of the New Jersey Cannabis Regulatory Commission . With guarded optimism , the vice chair provides a pragmatic response regarding the commission ’ s satisfaction with progress to date .
“ Like anything else , building the recreational cannabis industry is a process . When we ( the Commission ) came on board , the recreational cannabis business was totally new to the state . It ’ s like trying to build a car while it is driving ,” Delgado says .
The NJCRC was established on February 22 , 2021 , when Gov . Phil Murphy signed the New Jersey Cannabis Regulatory , Enforcement Assistance , and Marketplace Modernization Act ( CREAMMA ) establishing rules and regulations for recreational sales and consumption .
With recreational sales of about $ 196 million from April 2022 to the end of September 2022 ( the last sales period published ) national statistics suggest that New Jersey is off to a conservative , but promising start . Compared to places like Colorado , where in 2014 , its inaugural year , earned $ 700 million , New Jersey has a way to go . Progress , while slow , is about to happen .
New Jersey currently has 38 dispensary locations , including 13 medicinal-only dispensaries and another 25 selling both medicinal and recreational products . However , expansion is on its way . According to the commission , more than 1,800 licenses have been reviewed as of mid- April . In addition , 61 annual licenses as well as 1,097 conditional licenses have been awarded .
“ New Jersey has been very realistic in its view as to how this industry can work ,” notes Todd Polyniak , CPA , partner with SAX LLP and leader of the firm ’ s cannabis services team . However , Todd notes that early sales are still being dominated by Multi-State Operators ( MSOs ) who were in place serving the medicinal market . The real New Jersey entrepreneurs are only now earning their conditional licenses . “ We have several clients with conditional licenses who are almost ready to open ,” Todd says .
A great effort is being taken by the state to deliver on social justice promises made during legalization .
The CREAMMA Act dedicates considerable attention to helping those who were negatively impacted by the war on drugs to become business owners in this new industry . To that end , the Commission created Priority Applications to increase opportunities for people from designated target communities . Priority is also given to those who had cannabis convictions , as well as minorities , women , and disabled veterans .
To help these entrepreneurs , the New Jersey Business Action Center ( NJBAC ) has been designated by the NJCRC to provide no-cost technical assistance , training and mentorship , particularly to those eligible for priority application status .
“ It ’ s like setting up a university from the ground up ,” explains Melanie Willoughby , executive director of the state business action center . “ Many applicants who are in the social equity and disadvantaged communities do not have the resources to put together the application for a cannabis license for a business .”
Starting in the Fall of this year , the NJBAC will be assisting applicants to complete their applications and provide mentoring support through the entire start-up process . The program includes extensive remote training , available online 24 / 7 to accommodate individuals who have time constraints , as well as offering mentors / advisors with a wide range of experience and business disciplines .
“ Unlike a typical start-up , the state wants applicants to present everything ( from their business plan to their standard operating procedures ) all up-front ,” notes Jessica F . Gonzalez , Esq ., consultant for the NJBAC ’ s Cannabis Training Academy .
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Samuel Delgado , vice chair of the New Jersey Cannabis Regulatory Commission
Jessica F . Gonzalez , Esq ., consultant to state business action center
Melanie Willoughby , executive director of the state business action center
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