NJ Cannabis Regulatory Commission waives Nov. 1 deadline, delays decision on social equity excise fee after public input

The New Jersey Cannabis Regulatory Commission on Oct. 30 voted to waive the November 1 regulatory deadline for setting an increased social equity excise fee, delaying a final decision so staff can gather additional information and hear more stakeholder input.

The action came after staff presented the regulatory framework under the CREAM Act and NJAC 17:30-3.4 and reported a statewide average retail price of $330.68 per ounce. Director Raetz told commissioners the board’s regulations tie fee brackets to that average and staff recommended setting the fee according to the regulation. Commissioners did not adopt a new fee at the meeting; instead they voted to waive the November 1 deadline for taking action.

Why it matters: Commissioners framed the choice as a balance between raising revenue for social equity investments and preserving the viability of small, newly licensed businesses. Commissioner Barker moved the amendment to waive NJAC 17:30-3.4(d) so the commission could consult more stakeholders; the motion carried on a roll-call vote.

Public commenters represented a range of views. Annie Gachalia of the ACLU of New Jersey urged the Commission to follow the regulation and warned that millions earmarked for community reinvestment could be left uncollected: “I urge commissioners to adjust the [social equity excise fee] in accordance with your regulations that say that the [fee] shall be $30 when it is at this mark in terms of its average retail cost per ounce,” she said. Gachalia cited CRC reporting that the adult-use market had generated roughly $1.3 billion in sales from April 2022 to March 2024 and said less than $4 million had been raised through the fee during that period.

Several industry advocates urged caution. Bill Caruso, an attorney at Archer Law and longtime industry advocate, commended the Commission’s work and said pausing the increase was prudent: “You hit pause. You were right to go back and study this,” he said, warning that a $30 fee could “decimate” nascent social equity businesses.

Others pushed for larger fees and transparency. Austin Edwards, senior policy director for Salvation and Social Justice, urged higher excise fees to fund restorative investments and requested a public dashboard and annual reporting to track community reinvestment dollars. He said the state should consider fees up to the statutory maximum to deliver meaningful reparative programs.

Speakers raising licensing-process concerns asked the Commission to address municipal-level barriers and alleged favoritism affecting minority applicants. Carlos Amansar, who said he has been trying for two-and-a-half years to gain entry into the market, urged CRC staff to investigate perceived “backdoor deals” by some townships. Dan Kessel, owner of BloodHub NJ, said he had reported municipal irregularities and referenced an ongoing criminal investigation in South Toms River.

What the Commission did: It voted to waive NJAC 17:30-3.4(d) — the November 1 deadline — and explicitly did not adopt a new social equity excise fee at the meeting. Commissioners said they want more information from staff and stakeholders before setting the final fee.

Next steps: The Commission directed staff to gather additional data and stakeholder feedback; no further meeting date for a fee vote was specified during the public session. Written comments will be accepted through 5:00 p.m. Oct. 31 at nj.gov/cannabis/meetings.