First appeared in NewsBreak
By Aron Solomon
Friday was an important day in New Jersey legislative history, as state officials came face-to-face with a legislative process they have known was coming since last year‘s election. What New Jersey has been dealing with should be something that legislatures and advocacy groups in all states considering a similar policy change watch very closely.
New Jersey lawmakers subjected officials from the Cannabis Regulatory Committee to an intense grilling during a lengthy hearing on Friday afternoon. The hearing, the first of its kind in front of the Joint (one would think they could have found a different name) Committee on the Implementation of Recreational Marijuana Legalization, aimed to discuss the progress and challenges associated with the state’s legalization of recreational marijuana, which came into effect on January 1st of this year following its ratification in the November election.
Lawmakers voiced their concerns about various aspects of the implementation process, including licensing, social equity, and taxation. Some expressed frustration over the sluggish pace of licensing, while others criticized the lack of diversity among license holders.
The Cannabis Regulatory Commission (CRC) is tasked with establishing and enforcing the regulations governing the cultivation, testing, and sale of cannabis in New Jersey. However, the commission has previously faced criticism for its handling of licensing and social equity issues.
In May, New Jersey took a step forward in its cannabis industry by opening its first recreational-only cannabis retailers, namely Earth & Ivy and Nova Farms. The state’s 28 other dispensaries, initially operating as medicinal cannabis businesses, expanded into the adult-use market. Earth & Ivy, a new and diverse business, set up shop in New Brunswick, while Nova Farms is located in Woodbury, which is a New Jersey Impact Zone.
Despite the progress made, concerns persist regarding social equity and diversity within the industry. An op-ed published in NJ Cannabis Insider in February 2022 shed light on the obstacles to achieving true equity and called on regulators to prioritize support for home-based businesses over large corporations. Simply put, with such a massive amount of money potentially in play on tje state’s legal marijuana business, the default setting is for almost all of it to go to massive businesses in the vertical rather than mom-and-pops or startups.
The CRC’s handling of licensing matters has also come under scrutiny since ratification of the new law. This month, the commission reversed its decision to deny Curaleaf’s annual license renewals for growing and selling cannabis in the state. However, last month, the commission chose not to renew the annual license of the state’s largest cannabis supplier, leaving many dispensaries without a reliable source of product.
The implementation of recreational marijuana legalization in New Jersey has been a multifaceted process, and it is evident that numerous issues still need to be addressed. Nevertheless, the state has made significant strides over the past year, marked by the establishment of new dispensaries and the expansion of existing businesses into the adult-use market.
As New Jersey criminal defense lawyer Nancianne Aydelotte points out:
“New Jersey is dealing with what every state that approves recreational use of cannabis deals with – the realities of an often complicated process of implementation.”
As Friday’s events perfectly highlight, New Jersey continues to navigate the challenges associated with the implementation of recreational marijuana legalization.
Moving forward, it is crucial for lawmakers and regulators to collaborate effectively to prioritize ensuring equity, diversity, and sustainability within the industry. It will take a commitment to social equity, a proactive approach to addressing licensing concerns, and a focus on supporting small businesses and entrepreneurs in the cannabis sector.
About Aron Solomon
A Pulitzer Prize-nominated writer, Aron Solomon, JD, is the Chief Legal Analyst for Esquire Digital and the Editor-in-Chief for Today’s Esquire. He has taught entrepreneurship at McGill University and the University of Pennsylvania, and was elected to Fastcase 50, recognizing the top 50 legal innovators in the world. Aron has been featured in Forbes, CBS News, CNBC, USA Today, ESPN, TechCrunch, The Hill, BuzzFeed, Fortune, Venture Beat, The Independent, Fortune China, Yahoo!, ABA Journal, Law.com, The Boston Globe, YouTube, NewsBreak, and many other leading publications.
