A special per-ounce cannabis fee levied on licensed marijuana growers in New Jersey was more than doubled this week, to $2.50 from $1.24, to help pay for a special fund dedicated to boosting cannabis social equity entrepreneurs.
The fee hike, which goes into effect on Jan. 1, was approved this week by the New Jersey Cannabis Regulatory Commission during its final meeting of the year, the New Jersey Monitor reported. Proceeds will be put into a fund that is “dedicated to social equity programs and reinvesting in communities harmed by marijuana criminalization,” a portion of which will be used to help prevent minors from using cannabis.
In the most recent fiscal year, the original fee brought in $2.6 million to the state-run social equity fund, but none of that money has yet been disbursed by the state, the Monitor reported.
The commission resisted calls from some stakeholders that wanted the fee raised as high as $30 per ounce, the maximum allowed by state law. Commissioner Krista Nash said such a move would “decimate some businesses, and we certainly don’t want to undo what those businesses could create.”
Commissioner Charles Barker noted that since the regulators were deliberately gentle with the fee hike, he hopes cannabis companies won’t respond by increasing prices and passing along their costs to consumers.
Also during the meeting, the commission gave the thumbs up to a regulatory plan for cannabis consumption lounges, with a license application window slated to open on January 2 from eligible social equity entrepreneurs. A second license window for microbusinesses and other minorities will open on April 2, and then a universal application window open to the public will commence on July 2, the Monitor reported.
Consumption lounge application fees will vary from $1,000 for the smallest microbusinesses to $5,000 for regular dispensaries. There’s no cap on the number of lounges that will be allowed statewide.
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