The New Jersey Cannabis Regulatory Commission has approved a hike in the social equity fee that is intended for reinvestment in communities that have been harmed by marijuana criminalization. The commission also announced an application process for consumption lounges.
The social equity fee paid by cannabis cultivators will rise from $1.24 per ounce to $2.50 on Jan. 1. This year, the existing fee has so far brought in $2.6 million, with no money from the fund yet spent on any programs. The funds can only be allocated by the Legislature and the governor.
The amount of the fee hike was a matter of some controversy. The American Civil Liberties Union of New Jersey supported an increase to the legal limit of $30. Commissioner Maria Del Cid-Kosso had proposed a $10 fee at the commission’s October meeting.
The commission on Dec. 12 chose to keep the increase modest, in part because the state already has some of the highest cannabis prices in the nation. Commissioner Charles Baker said, “We hope prices continue to decrease significantly.”
The long-awaited application process for consumption lounges will begin Jan. 2 for social equity businesses that are owned by individuals from one of the state’s 55 economically disadvantaged areas.
On April 2, diversely owned businesses can file an application. It is not until July 2, six months after the initial process begins, that anyone from outside these two groups can apply.
Lounges, which could be inside or outside of a dispensary, would follow similar rules as bars.
