The Legislature has made a lot of progress in legalizing cannabis for wealthy, large-scale, white businesses, but not enough to help Black business owners.
By Sophie Nieto-Munoz, New Jersey Monitor
Officials of the Cannabis Regulatory Committee were grilled by lawmakers for more than two-and-a half hours Friday, during their first appearance before the Senate Judiciary Committee after more than a calendar year.
The legislators weren’t afraid to criticize. They accused the agency pulling strings to restore the license of major cannabis operators, of being slow to approve requests and of holding back the cannabis industry with red tape.
Dianna Houenou and Jeff Brown, the executive director of the commission, have praised the work done by the agency since its founding two years ago. New Jersey saw 33 recreational dispensaries opened, hundreds of applicants were approved, and millions in taxes for the state.
Brown stated that approximately 679 of the 2,084 applications filed since 2021 are still pending.
Houenou said that the role of the commission is to understand and assess the needs and wants of our patients and adult users in the state, then create regulations and opportunities based on this.
The hearing lasted four hours, and featured testimony from leaders in the industry and others. Officials admitted that cannabis prices are still high but stated that increased competition will bring down those costs. A eighth of marijuana can be purchased for about $60 at a dispensary, but as little as $40 on the illicit legacy market.
Brown said that prices could fall by up to 50 percent in New Jersey if outdoor cultivation was increased, but these facilities are constrained because some municipalities have banned the practice.
Some legislators expressed concern over the possibility of cannabis being grown outdoors in their communities. Sen. Mike Testa, R-Cumberland, said that no one would “really want this in their backyard,” due to concerns about theft and smells emanating from the cultivation sites.
He said, “These aren’t tomatoes in Vineland.”
Testa expressed his frustration over the ease of access to delta-8 by children and teens. Delta-8, a chemical that is found in cannabis but does not have the same effect as marijuana, is legal.
Sen. Brian Stack echoed these concerns. He said that as the mayor of Union City he has seen many stores sell delta-8 products in brightly colored packaging designed to appeal to children.
Houenou pointed out that the product is not under the jurisdiction of Cannabis Regulatory Commission. She said that the state’s legalization of cannabis has strict guidelines regarding packaging. It must be child resistant and relatively plain.
Brown said, “We are trying to move consumers away from illegal or informal purchases and onto the legal market that is regulated where products can be tested.” “I am confident that prices will fall… We need to keep our foot on the pedal and award licenses and send them out.”
Both chambers are currently considering a bill that would ban the sale and production of products containing this unregulated substance.
Houenou and Brown were criticized for the confusion that surrounded the Curaleaf saga, where the company lost its five annual licenses then got them back in a matter of days. Houenou said commissioners changed their minds after Curaleaf raised concerns about compliance with the law. The legalization law stipulates that cannabis businesses must allow their workers to join a union and sign a labor agreement within 200 working days if they so choose.
Houneou refused to comment about “internal discussions and confidential deliberations.”
Officials of the union also defended the initial decision by the commission to withdraw licenses from Curaleaf. They said that an “act” of union avoidance occurred at the Bellmawr cultivation facility owned by the company, which led to its closure and the layoff of 40 workers. Workers who support the union have now filed cards with the National Labor Relations Board. AJ Clayborne, of the United Food and Commercial Workers, a union that represents cannabis workers, explained.
He said that the CRC of New Jersey was uniquely effective at enforcing labor laws on the new cannabis market in New Jersey. In many places, regulatory authorities argue or drag their heels… the CRC has responded particularly well.”
Curaleaf denies allegations that it did not bargain with its workers.
Many cannabis activists who testified on Friday expressed concern that Black and Brown residents who have been hurt by the criminalization of cannabis are being shut out of industry.
The Rev. Charles Boyer is a Trenton-based pastor and director at the Salvation and Social Justice Organization.
He said that financial barriers prevent people from selling weed on the legacy market to support their families. He said there aren’t many grants or mentors for business to help them get into the industry.
Boyer thinks the Cannabis Regulatory Commission needs to be given the tools and oversight it needs to track where most of the sales tax revenue is going. He wants to make sure that the state “makes real tangible investments” in communities.
Ami Kachalia, of the American Civil Liberties Union of New Jersey, said, “The public had a great deal of interest in the legalization of cannabis, and more importantly in seeing the revenue generated go back to those communities who were most affected.”
A portion of the revenue generated by cannabis sales will be allocated to social equity programs or certain towns.
Houenou explained that the Legislature has the responsibility of appropriating these funds as part of the budget process. The Cannabis Regulatory Commission is only able to make recommendations, which are often made by members of the public at hearings on social equity fees.
The committee asked the commission to provide more frequent updates to the Legislature.
Kristin Corrado, R-Passaic, said: “I know that starting an agency will have some bumps and that things will take some time. But we hear the same statements repeatedly.”
The original publication of this story was by New Jersey Monitor.
The post New Jersey Marijuana Regulations Interrogated By Lawmakers In Lengthy Hearing About Legalization Implementation first appeared on Marijuana Moment.
