The NJ Cannabis Regulatory Commission (NJCRC) reviewed cannabis lab testing issues, fined a company, and reviewed the progress of the market.

“I believe it’s my first time at the big show. Honored to be here,” Director of the Office of Compliance & Investigations Paul Urbish said to chuckles about the meeting.

He explained they oversee the cannabis license application process, investigation, and oversight.

Urbish said they reviewed 557 complaints last year. They have received 129 so far this year.

“When you shoot emails into the box trying to get things taken care of, please understand, we are reviewing and investigating everything that comes in,” he said.

Urbish said they have 10 Investigators.

“We’re only allowing qualified individuals and entities to operate in this industry,” he declared.

Urbish noted they review Financial Service Agreements (FSAs) and Management Service Agreements (MSAs), which can be tricky.

He explained their role in monitoring products, including labels and packaging. Urbish said that a lot of products break the rules.

“We want diverse products. We want a competitive market..,” he said.

“Not complying with those regulations is only holding up patients and consumers from getting those new products,” Urbish argued.

“We are aware of the Secret Shopper program,” he noted.

Urbish explained the advocacy group Safe Leaf tested products and found some products had microbial bugs and inflated THC labels.

“As a Commission, we have requested additional information from the advocacy group in order to assist in our investigation. Our request was denied by Safe Leaf,” he said.

“We are heading our own investigation in coordination with the Department of Health State Lab looking into the testing practices of all our laboratories and ensuring their compliance and accuracy of the labels…” Urbish added.

Kristen Gooede of Trichome Analytical cannabis testing lab spoke during the public comment period. She liked their updated cannabis lab testing rules.

Gooede said mold and microbe testing issues are widespread. She argued data transparency would promote accountability.

“Mandate training for all lab workers and implement an omni-recording system,” she argued.

Gooede thought they needed more qualified people auditing labs. She also liked the idea of surprise inspections to detect fraud.

“Establish clear parameters for quality assurance, quality control, calibration, and detection,” Gooede added.

She thought they could do their own secret shopping lab tests and set up a reference lab.

“We act the Commission to act swiftly to implement these recommendations. The integrity of our market and our well-being as consumers and patients depends on it,” Gooede said to applause.

At the end of the public comment period, NJCRC Chair Dianna Houenou told those who spoke and had questions to be patient with them.

Earlier in the meeting, they dealt with fines.

“We did have an agenda change yesterday,” Houenou said about the violators. “Those will be considered at a future meeting.”

She noted Garden Society was in trouble for employee badging issues.

NJCRC Acting Executive Director Christopher Riggs explained a business self-reported that their worker was selling underground legacy weed to their fellow workers. The dealer didn’t have an official badge.

Houenou wanted to fine them $8,000. She thought they could knock $2,000 off from the $10,000 maximum because they self-reported it.

“This employer had a few employees who didn’t go through the background badging process,” she said.

The motion passed 4-1, with Commissioner Maria Del Cid-Kosso dissenting.

“Next week, the Commission will be 4 years old,” Houenou noted.

“New Jersey has been a national leader in taking unregulated operations that lived more or less in the shadows and turning them into a legitimate above-ground industry. And we did so in a way that promotes diversity, inclusion, meaningful access to economic opportunities, and true collaboration with the public,” she declared.  

“As Chair of the Cannabis Regulatory Commission, I remain committed to the Commission’s values of equity, safety, and transparency and working to preserve the integrity of this agency,” Houenou explained.

“It is not lost on me that there are some individuals who would prefer an opaque system in which competition is minimized and favors are traded behind closed doors,” she exclaimed. “But the law requires that we operate as a public body, and so we do.”

“…I’m excited for what comes next, seeing even more businesses realize the American dream and get to hang their shingles,” Houenou declared.

Riggs explained the thorough application process before announcing the conversion winners to the annual cannabis licenses needed to open.

1 The Vault Retailer Microbusiness

2 Bud City NJ LLC Retailer Standard

3 The Cannabis Connoisseurs LLC Retailer Standard

4 M&G Distribution Wholesaler Standard

1 Backpack Boyz West New York LLC Cultivator Standard

2 High Tide Industries, LLC Cultivator Standard

3 JAD Farms Cultivator Standard

4 Gryzco Manufacturer Standard

5 High Tide Industries, LLC Manufacturer Standard

6 Score 420 DJ Inc Manufacturer Standard

7 Score 420 DJ Inc Retailer Standard

Riggs noted that the Multi-State Operator (MSO) Columbia Care went through all the necessary steps to allow their medical cannabis dispensaries to sell adult-use cannabis as well.

1. Columbia Care 4476 Black Horse Pike, Mays Landing NJ, 08330 Class 5 Cannabis Retailer

They were approved 3-0-2, with Houenou and Commissioner Krista Nash abstaining without saying why. Nash left the room as another company was considered:

• GSCC Management LLC 101 E. Quarry Rd, Oxford NJ, 07863 Class 1 Cannabis Cultivator

The NJCRC approved them 3-0-1 with Houenou abstaining and Nash recused.

Riggs explained that 14 licenses were up for renewal:

1. Ascend NJ (3)
2. Twisted Hat Cannabis (1)
3. Bleachers Dispensary (1)
4. Union Chill Cannabis Company (1)
5. Mountain View Farmacy (1)
6. Agri-kind NJ (1)
7. Nova Farms Woodbury (1)
8. City Leaves (1)
9. Scarlet Reserve Room RB (1)
10. Emerald Tea Supply Company (1)
11. Natures Motivation (1)
12. Boone Town Provisions (1)

They were approved 5-0.

“I have invited our friends and colleagues at the NJ Business Action Center (BAC) and NJ Economic Development Authority (EDA) on the success of the training academy and cannabis grant programs,” Houenou explained.

NJ Business Action Center (NJBAC) Deputy Director Penni Wild explained they launched the Cannabis Training Academy to help entrepreneurs with free classes on the complicated legal market.

“These entrepreneurs face unfamiliar regulatory requirements, being deceived by predatory actors… and risk costly mistakes that risk setting them back,” she noted.

“More than 1200 are registered and going through the content,” Wild said to applause.

“It’s quickly becoming a national model,” she declared.

NJ-CTA Executive Director Tauhid Chappell said it is an easy program to access.

He noted they have a legacy to legal webinar series among their videos.

Chappell said they are working to make the program bilingual in Spanish.

“We have some of the best instructors in the country,” he declared.

Chappell said the program is good for cannabis workers to understand the details of the industry.

“I hope you continue this kind of mentorship,” Del Cid-Kosso said.

“It’s (state) budget season. Are we ok with the Academy going forward?” Vice Chair Sam Delgado asked.

“We are in the process of working that through,” Wild explained.

“Welcome Commissioner Mapp. We’re glad to have you here,” Tai Cooper, Chief Community Development Officer of the EDA said.

The CRC did not acknowledge at their last meeting that former Commissioner Charles Barker had been replaced.

She noted they were given $20 million to help cannabis entrepreneurs.

“No other state has done what New Jersey has done,” Cooper declared.

“…We spent, I don’t know how many meetings with Maria and Charles going over painstaking information over what resources were needed and why,” she said.

Cooper noted they awarded grants of $250,000 to businesses with land and local approval. Their seed program is for social equity applicants for $150,000.

The winners of the 2nd round were never announced.

EDA Senior Community Development Officer Genna Jones went over the Joint Ventures Grant. She said they had a commitment to diversity.

Some of the winners were diverse but not locals.

Jones noted there were many requirements, including being founded after March 9, 2020. That excluded leading longtime cannabis entrepreneurs. According to her, 27 winners were minority-owned, and 20 were women-owned. Twelve were both:

1. Brighterside Canopy LLC
2. Brotherly Bud LLC
3. Cannaboutique by Greenhouse
4. The Cannabis Clubhouse LLC
5. Canna P Farms LLC
6. Canna Remedies LLC
7. Citi Roots LLC
8. City Leaf Corp
9. Cloud Nine Dispensary LLC
10. Elevated by the CANNABOSSLADY
11. E.V. LLC
12. Ginger Hale LLC
13. Golden Door Dispensary LLC
14. Greener on Grove LLC
15. Green Knight Cannabis LLC
16. Green Leaf Pharma LLC
17. Hamilton Farms LLC
18. Hamm & Chaz LLC
19. Hera Solutions LLC
20. Highgrade Laboratories of New Jersey LLC
21. Hound Town 543 Inc
22. Illtown Growers LLC
23. Indigo Dispensary LLC
24. J&J Flowers LLC
25. Jersey Roots LLC
26. Jersey Shore Ventures Group LLC
27. Jersey Smooth LLC
28. Kind Kush LLC
29. La Vida Gardens LLC
30. Lucky Buds LLC
31. Mojo Botanica LLC
32. Nightjar Holdings LLC
33. NJ GreenCare LLC
34. Premo Cannabis Company LLC
35. Puffin Store LLC
36. Queen City Wellness LLC
37. Sensory Dispensary LLC
38. Seraph & Sons LLC
39. Stoke Industries
40. Sun Extractions Inc
41. Treehouse Ventures LLC
42. Urge NJ LLC
43. Vigor Dispensary LLC
44. Xena NJ LLC
45. Yerr Canna

Twenty-nine of them are open.

Community Development Senior Advisor Aubrey Flanagan noted the social equity Seed Equity Grants had fewer qualifications.

She claimed Simply Pure Trenton dispensary of Ewing owner Tahir Johnson as a success story since he is open.

Flanagan said 36 of their winners were minority-owned, 10 were women-owned and 9 were both out of 48.

Nine of their grant winners are open. That includes 7 dispensaries, a manufacturer, and a cultivator.

However, the Seed Equity grant winners list remained secret.

“Have we done follow-ups? Delgado asked.

Cooper noted opening is the hardest part. She justified giving them money after opening to help to keep doing so.

Delgado was curious about the winners’ long-term success.

“None of them are closed yet,” Cooper said.

She noted most small businesses fail in their first year.

Cooper added they might be working on a loan program versus grants that don’t have to be paid back.

Houenou noted they’re eager to see people in the market succeed.

“Does the joint ventures grant, or even seed equity, do the applicants have to demonstrate financial need?” Nash asked.

Cooper said they did not.

“If we do a loan, they have to have collateral obviously,” she explained.

Del Cid-Kosso also complimented their work and partnership with “Commissioner Barker and I as members of the access to capital work group.”

“Hopefully, we do have some success so we can make this a permanent program along the road,” she added.

Del Cid-Kosso said many licensed and operating cannabis entrepreneurs still face great challenges. So she said they’re recommending Cooperative Purchasing Agreements (CPAs) to help local micro-businesses with securing wholesale prices and bulk cooperation.

Del Cid-Kosso also said they got feedback to make later expiration dates but need to consult experts.

She said some companies were confused about what was required to open legally. So, they want to create a check list for what is needed to open.

Riggs said financial changes are likely to occur a lot more now. The legal requirements to be diverse and social equity owned might only last two years after opening.

The following companies wanted to make ownership changes:

• Blue Harvest
• Divine Garden
• Xena
• Somerset Green LLC
• Ruuted LLC
• Peaches Garden
• Atlantic Flower LLC
• Pantheon LLC
• Earthy & Ivy Lakehurst LLC

They were approved unanimously 5-0.

NJCRC Chief Counsel Dave Tuason explained that Tree House Co-Op Dispensary LLC and Green Wellness Haven LC want to store products behind the counter and not in a vault or backroom.

“The pictures that were posted looked like open shelving,” Nash said. “My vision… was a locked glass case. Can you explain the difference…?”

“It did say it would be locked,” Tuason said.

“Somebody could hop across the counter and smash and grab,” Nash argued.

Houenou said some people rob dispensaries elsewhere in America.

They denied 5-0.

Baked by the River dispensary CEO Jesse Marie Villars in Lambertville in Hunterdon County explained they have held several cannabis events.

Shie noted they were initially going to be fined at the meeting.

“An issue that was highlighted in the notice my dispensary received was that sampling for the purpose of business promotion is not allowed,” Villars explained.

“It’s just like any other event I go to,” she said. “I bring some good weed to smoke.”

Villars argued it would be like telling the Budweiser CEO not to bring beer to a barbecue.

“We ask that you include us in this conversation,” she explained. “We’re all trying to figure this out in the first years of our business being open.”

Leading cannabis advocate Edward “Lefty” Grimes of Sativa Cross testified to support Baked by the River, too.