>>> THIS WEEK ON "NJ BUSINESS BEAT."

LAYING OUT HIS VISION FOR THE NEXT NEW JERSEY.

>> NEW JERSEY IS TRULY BECOMING THE STATE OF OPPORTUNITY.

>> GOVERNOR MURPHY'S MESSAGE TO THE BUSINESS COMMUNITY IN HIS STATE OF THE STATE.

PLUS WHAT BUSINESS LEADERS TOOK AWAY FROM HIS SPEECH.

PLUS ANOTHER STEP FORWARD FOR SOUTH JERSEY'S ECONOMY AS THE STATE CHOOSES THE SECOND TENET FOR THE FUTURES WE WIN PORT.

WITH FRESH COMPETITION IN THE NORTHEAST, WE PUT MARIJUANA EXPANSION IN FOCUS, INCLUDING HOW NEW YORK AND CONNECTICUT'S MARKETS WILL IMPACT OURS AND WHAT'S NEXT FOR THE REVENUE NEW JERSEY IS EARNING.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

>>> THIS IS "NJ BUSINESS BEAT WITH RONDA SCHAFFLER."

>> THANKS FOR JOINING ME ON "NJ BUSINESS BEAT."

NEW JERSEY'S ECONOMY WAS FRONT AND CENTER IN GOVERNOR MURPHY'S STATE OF THE STATE ADDRESS THIS PAST WEEK.

IT WAS AN UPBEAT SPEECH WITH THE GOVERNOR SAYING NEW JERSEY IS TO BECOME A STATE OF OPPORTUNITY.

GOVERNOR MURPHY HIGHLIGHTED NEW JERSEY'S ECONOMIC GROWTH AND JOB CREATION AND PUT A SPOTLIGHT ON THE STATE'S NEW INDUSTRIES.

>> NEW JERSEY'S GDP GREW 3.9% ABOVE THE LEVEL OF THE SECOND QUARTER.

THAT'S THE TENTH BIGGEST JUMP IN THE NATION AND THE HIGHEST GROWTH RATE OF ANY STATE IN OUR ENTIRE NORTHEASTERN NEIGHBORHOOD.

WHAT'S MORE, IT'S MORE THAN A HALF A POINT OF GROWTH ABOVE THE NATIONAL AVERAGE, AND WE OUTPACED MANY OF THE SO-CALLED BUSINESS-FRIENDLY STATES.

STATES THAT SOME CLAIM WE HAVE TO EMULATE.

STATES INCLUDING GEORGIA AND FLORIDA.

BUT EVEN MORE THAN THAT, THOSE STATES ARE NOT THE LEADERS IN NEW AND EMERGING INDUSTRIES, WE ARE.

WE ARE PRIMED TO BE A LEADER ON THE EAST COAST IN OFFSHORE WIND AND A NATIONAL LEADER IN COMPONENT MANUFACTURING AND LOGISTICS FOR THE WIND INDUSTRY AS A WHOLE.

WE ARE GROWING AN ENTIRELY NEW AND BROAD-BASED ADULT-USE CANNABIS INDUSTRY, AN INDUSTRY THAT IS MAKING ROOM FOR WOMEN AND MINORITY SMALL BUSINESS OWNERS.

WE REMAIN A LEADER IN ALL ASPECTS OF ONLINE GAMING AND SPORTS WAGERING.

WE ARE A LEADER IN THE FINANCIAL SERVICES TECHNOLOGY CENTER OR FIN TECH AS EVIDENCE BY A NEW OPEN UNTIL BERKELEY HEIGHTS IN UNION COUNTY -- >> THE GOVERNOR USED HIS SPEECH TO ANNOUNCE AN EXTENSION OF THE ANCHOR PROPERTY TAX FILING DEADLINE.

HOMEOWNERS AND RENTERS NOW HAVE UNTIL THE END OF FEBRUARY TO APPLY FOR TAX RELIEF.

GOVERNOR MURPHY ALSO ANNOUNCED A FEW NEW PROPOSALS.

HE'D LIKE TO REFORM NEW JERSEY'S LIQUOR LICENSE SYSTEM TO MAKE LICENSES AVAILABLE TO MORE RESTAURANTS.

AND HE'D LIKE TO REMOVE RESTRICTIONS ON BREWERIES AND WINERIES, ALLOWING THEM TO SERVE FOOD.

HE WANTS TO INVEST IN AND UPGRADE BOARDWALKS AT THE SHORE, CALLING THEM WOODEN MAIN STREETS, THAT DEFINE COMMUNITIES AND SUPPORT LOCAL ECONOMIES.

AND HE SUGGESTED TAX CREDITS FOR NEW JERSEY BUSINESSES EVEN IF THEIR EMPLOYEES WORK FROM HOME.

TIM SULLIVAN, THE HEAD OF THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY, BELIEVES NEW JERSEY WOULD BE THE FIRST STATE IN THE NATION TO PURSUE SOMETHING LIKE THIS.

>> THE GOVERNOR, YOU KNOW, RECOGNIZES THE REALITY THAT AND THE OPPORTUNITY THAT PRESENTS ITSELF FROM THE CONTINUE WAYS OF REMOTE AND HYBRID WORK.

WHAT WE'RE NOT TALKING ABOUT IS COMPANIES THAT HAVE EXISTING INCENTIVE PROGRAMS BEING RELEASED FROM THEIR OBLIGATIONS TO BE IN OUR CITIES.

WHAT WE'RE TALKING ABOUT IS AN OPPORTUNITY TO CAPTURE MORE JOBS FOR NEW JERSEY RESIDENTS VIA REMOTE WORK OR HYBRID WORK.

IF YOU'RE A COMPANY IN NEW YORK OR PHILLY OR ANYWHERE IN THE COUNTRY LOOKING FOR A PLACE WITH MAYBE A LITTLE SMALLER OFFICE FOOTPRINT WHERE YOUR EMPLOYEES CAN WORK REMOTELY, AS LONG AS THEY LIVE IN NEW JERSEY, WE'D LOVE TO SEE THAT.

>> WHAT DID THE STATE'S TOP BUSINESS LEADERS THINK ABOUT THE GOVERNOR'S ADDRESS?

FOR SOME INSIGHT I SAT DOWN WITH MICHELLE SAKIRKKA, PRESIDENT AND CEO OF THE NEW JERSEY BUSINESS ASSOCIATION.

TOM BRACKEN, PRESIDENT AND CEO OF THE NEW JERSEY CHAMBER OF COMMERCE.

TOM, I WANT TO START WITH YOU.

LET'S FOCUS ON THE POSITIVES FIRST.

WHAT DID YOU HEAR FROM GOVERNOR MURPHY'S STATE OF THE STATE ADDRESS THAT IS ENCOURAGING FOR THE BUSINESS COMMUNITY?

>> IT WAS VERY GOOD TO HEAR THE GOVERNOR HAVE A MESSAGE THAT WAS VERY COMPLIMENTARY -- COMPLEMINTARY, YES, BUT VERY PRO-NEW JERSEY.

WE NEED TO DO MORE OF THAT.

I THINK WITH THE RECENT ITEMS THAT WE HAVE HAD THROUGH THE LEGISLATURE THAT ARE PRO-BUSINESS AND SOME OF THE THINGS THE GOVERNOR'S OFFICE HAS DONE INDICATE THAT THERE I THINK IS MORE RECEPTIVITY TO DO MORE WITH US.

AND THAT PLUS A MORE POSITIVE ATTITUDE IS GOING TO BODE WELL FOR THE BUSINESS COMMUNITY.

>> MICHEL, WOULD YOU AGREE THAT THERE IS A SENSE IN TRENTON OF REACHING OUT MORE TOWARD THE BUSINESS COMMUNITY?

>> WELL, I WOULD SAY WE'VE SEEN SOME INDICATIONS OF THAT.

WE WERE VERY FORTUNATE JUST OVER A WEEK AGO TO HAVE A BILL SIGNED INTO LAW AROUND REALLY LOOSENING UP SOME LOCAL PERMITTING WITH REGARD TO INSPECTIONS.

AND THAT WAS DONE IN COLLABORATION WITH THE BUSINESS COMMUNITY AND THE GOVERNOR'S OFFICE.

SO THAT WAS DEFINITELY AN INDICATION.

AND FROM THAT EVENT WE HEARD, YOU KNOW, QUOTE, UNQUOTE, MORE TO COME.

SO THERE ARE SOME QUITE SPOTS AHEAD, RONDA.

I KNOW THE BIG "BUT" IS COMING.

BUT THERE ARE GOOD THINGS FOR US TO EMPLOY AND BE APPRECIATIVE OF AS WE GO FORWARD IN 2023.

>> LET'S TALK ABOUT WHAT, PERHAPS, STILL NEEDS TO BE DONE.

BOTH OF YOU HAVE SAID MORE NEEDS TO BE DONE TO HELP SMALL BUSINESS.

SO MICHELLE, CONTINUING WITH YOU FOR A MINUTE, SPECIFICALLY WHAT COULD BE DONE TO HELP SMALL BUSINESSES, AND WHY IS IT SOME OF THE ITEMS THAT HAVE BEEN ON THE AGENDA FOR A WHILE DON'T SEEM TO PUSH FORWARD?

LIKE THE UNEMPLOYMENT TRUST FUND?

>> FOR TRUE SUSTAINABILITY, WE HAVE TO LOOK AT COMPREHENSIVE REFORM.

BECAUSE WE STILL HAVE TAX STRUCTURES IN THE STATE THAT ARE BROKEN.

ON UI, IN SPECIFIC, AT LEAST 37 OTHER STATES USE SOME OF THEIR FEDERAL STIMULUS MONEY IN ORDER TO PROVIDE RELIEF TO THE UNEMPLOYMENT INSURANCE TRUST FUND.

WHY IS THIS A BIG DEAL?

BECAUSE JULY 1 OF EACH YEAR, LAST YEAR IN '22, THIS YEAR IN '23, NEXT YEAR IN '24, THIS IS A TAX INCREASE ON JULY 1 TO ANYONE THAT EMPLOYS A WORKFORCE.

AND IT'S SOMETHING THAT CAN BE AVOIDED BECAUSE IT'S AN ADDITIONAL COST OF DOING BUSINESS AT A TIME THAT AFFORDABILITY IS CRITICAL AND EVERY DOLLAR MATTERS TO A NEW JERSEY BUSINESS.

>> TOM, I KNOW YOU ARE ESPECIALLY CONCERNED ABOUT HOW SMALL BUSINESSES WILL WEATHER A RECESSION, WHETHER WE'RE IN IT NOW OR WILL BE TO COME.

SPECIFICALLY, WHAT COULD THE STATE DO TO HELP CUSHION THE BLOW FOR THESE SMALL BUSINESSES, MANY OF WHOM ARE STILL TRYING TO GET BACK ON THEIR FEET AFTER THE PANDEMIC?

>> THE BIGGEST THING THE STATE CAN DO, AND EDA HAS ALREADY PROVIDED ABOUT A BILLION DOLLARS OF GRANTS THROUGHOUT THE STATE, WHICH IS GREATLY APPRECIATED.

BUT THERE'S A LOT MORE NEED OUT THERE THAN THE BILLION DOLLARS CAN SATISFY.

SO TO PROVIDE A MORE AGGRESSIVE AMOUNT OF GRANTS TO THE BUSINESS COMMUNITY AND MAKE IT AVAILABLE TO THEM NOW, AND ESPECIALLY IF A RECESSION HITS, IS GOING TO BE THE LIFELINE THAT THEY NEED.

BECAUSE BUSINESSES NEED CASH.

>> FINALLY, LAST QUESTION FOR BOTH OF YOU.

IF YOU COULD KIND OF SUMMARIZE THE NUMBER ONE PRIORITY FOR YOUR ORGANIZATION THIS YEAR TO HELP BUSINESSES, WHAT WOULD THAT BE?

AND TOM, IF YOU COULD ANSWER THAT FIRST.

>> CONTINUE THE MOMENTUM THAT WE SEE AND WE FEEL FINALLY IS STARTING TO TAKE PLACE AFTER MONTHS AND YEARS OF ASKING FOR MORE HELP.

YOU KNOW, THERE'S RECEPTIVITY, I THINK, IN THE GOVERNOR'S OFFICE AND THE LEGISLATURE.

>> CONSIDERING THE CONCEPT OF AFFORDABILITY TO BUSINESS AND KEEPING THAT AT THE TOP OF MIND, AND HOW DO WE CONTINUE TO PROBLEM SOLVE TO ADDRESS THAT AND MAKE NEW JERSEY MORE REGIONALLY COMPETITIVE.

AS TOM SAID, KEEP THAT MOMENTUM GOING.

>> MICHELLE AND TOM, I THANK YOU BOTH FOR YOUR TIME AND INSIGHT.

THANKS FOR TALKING TO ME TODAY.

>> THANK YOU, RONDA.

>> THANKS, RONDA.

>>> THERE'S MORE INTEREST IN THE NEW JERSEY WIND PORT IN SAY LEGAL COUNTY AS THE SECOND WIND FARM DEVELOPER HAS SIGNED ON TO WORK THERE.

ATLANTIC SHORES OFFSHORE WIND WILL LEASE 35 ACRES AT THE FACILITY, BRINGING 200 NEW JOBS TO THE REGION.

THE COMPANY WON'T BE THERE RIGHT AWAY.

THE THREE-YEAR LEASE DOESN'T BEGIN UNTIL MID-2026.

BUT STATE OFFICIALS TOUTED THE ANNOUNCEMENT AS OF EVIDENCE OF NEW JERSEY'S RISING LEADERSHIP IN THE WIND INDUSTRY.

ORSTEAD HAS AGREED TO LEASE ACREAGE IN THE WIND PORT, CURRENTLY UNDER CONSTRUCTION.

THE PORT PROVIDES SPACE FOR COMPANIES TO ASSEMBLE THE MASSIVE TURBINES NEEDED FOR THE PROPOSED OFFSHORE WIND FARMS.

>>> AS NEW JERSEY'S RECREATIONAL MARIJUANA INDUSTRY PREPARES TO ENTER YEAR TWO, THE LANDSCAPE WILL LOOK A LOT DIFFERENT, NAMELY BECAUSE OF COMPETITION.

THIS WEEK, CONNECTICUT STARTED LEGAL RECREATIONAL CANNABIS SALES AND NEW YORK OPENED LEGAL SALES LAST MONTH, POTENTIALLY TAKING NORTHEAST CUSTOMERS AWAY FROM NEW JERSEY DISPENSARIES.

WITH THE MARIJUANA LANDSCAPE CHANGING IN 2023, WE WANTED TO PUT THE EXPANSION OF THE MARIJUANA INDUSTRY IN FOCUS AND CHECK ON THE FUTURE OF THE INDUSTRY IN AND AROUND NEW JERSEY.

FIRST LET'S COMPARE THE INDUSTRIES BETWEEN NEW JERSEY AND NEW YORK.

NEW JERSEY HAS A NUMBER OF TAXES AND FEES STARTING WITH THE SOCIAL EQUITY EXCISE FEE WHICH IN 2023 TOTALS $1.50 PER OUNCE AND IS USED TO SUPPORT COMMUNITIES MOST IMPACTED BY DRUGS.

NEW JERSEY ALSO CHARGES ITS STANDARD SALES TAX.

AND LOCAL MUNICIPALITIES CAN ALSO CHARGE A TAX OF UP TO 2%.

IN NEW YORK, THERE'S A BASE TAX UP TO 3 CENTS PER MSG OF THC, AS WELL AS THE SALES TAX OF 13%.

NEW YORK PROJECTS IT WILL EARN ABOUT $56 MILLION IN REVENUE IN THE FIRST YEAR OF ITS INDUSTRY.

IN NEW JERSEY, WE KNOW THE INDUSTRY IS FLOURISHING WITH ALMOST 117 MILLION IN RECREATIONAL SALES IN THE THIRD QUARTER OF 2022.

SINCE LICENSED RECREATIONAL MARIJUANA SALES BEGAN IN NEW JERSEY THIS PAST SPRING, SALES HAVE TOTALED ALMOST $200 MILLION THROUGH THE END OF SEPTEMBER, WHICH IS THE LATEST DATA AVAILABLE.

AND THE STATE COLLECTED MORE THAN $7 MILLION IN TAX REVENUE IN THE THIRD QUARTER.

IN SETTING UP ITS INDUSTRY, NEW YORK ESTIMATED 8 TO 10% OF PEOPLE IN NEW YORK USE MARIJUANA, OR ABOUT 1.5 MILLION PEOPLE IN THE STATE.

IN NEW JERSEY, A 2022 RECORDS REPORT SHOWED 631,000 PEOPLE AGED 18 OR OLDER REPORTED USING MARIJUANA AT LEAST ONCE IN THE LAST MONTH.

THAT NUMBER JUMPS TO CLOSE TO 1 MILLION FOR THOSE SMOKING IN THE PAST YEAR.

SO BOTH NEW YORK AND NEW JERSEY HAVE SIMILAR DEMAND FOR CANNABIS.

ALL THAT DEMAND WILL INCREASE MARIJUANA SALES IN NEW JERSEY THIS YEAR EVEN AS OTHER STATES GET INTO THE BUSINESS.

THAT'S THE OPINION OF JEFF BROWN, WHO IS EXECUTIVE DIRECTOR OF THE CANNABIS REGULATORY COMMISSION.

HE ALSO SEES GOOD NEWS FOR RESIDENTS WHO USE CANNABIS.

HE EXPECTS PRICES WILL GO DOWN.

I TALKED TO HIM ABOUT WHAT ELSE IS AHEAD FOR THE CANNABIS INDUSTRY IN NEW JERSEY.

JEFF, GOOD TO SEE YOU ON "NJ BUSINESS BEAT."

>> THANKS FOR HAVING ME.

>> WHEN THE STATE ANNOUNCED THAT REVENUES FOR MARIJUANA TOPPED $100 MILLION FOR THE FIRST TIME IN THE THIRD QUARTER, YOU INDICATED THAT THERE IS MORE TO COME.

GIVE US A SENSE NOW AS WE'RE IN 2023 ABOUT HOW THIS INDUSTRY WILL CONTINUE TO SCALE UP IN NEW JERSEY.

>> WELL, YOU KNOW, OVER $100 MILLION IN RECREATIONAL SALES OVER A QUARTER SOUNDS LIKE A LOT.

IF WE LOOK AT COMPARABLE MARKETS LIKE MICHIGAN, FOR EXAMPLE, THIS SUMMER THEY ANNOUNCED THEY SAW $218 MILLION IN SALES IN ONE MONTH ALONE.

THEY ONLY HAVE ABOUT 600,000 MORE PEOPLE IN THEIR STATE THAN WE DO IN NEW JERSEY.

SO THERE'S TREMENDOUS OPPORTUNITY HERE.

THE MARKET IS GROWING, EXPANDING.

WE'RE SEEING PEOPLE PURCHASING IN THE LEGAL REGULATED MARKET.

WE'RE ALSO FOCUSED ON LICENSING NEW BUSINESSES, EXPANDING OPPORTUNITIES, GETTING MORE RETAIL OUTLETS OPEN.

WE HAVE 21 DISPENSARIES OPEN.

THERE'S A 22nd THAT'S BEEN APPROVED THAT'S ON THE WAY.

THEN THERE ARE MANY MORE BEHIND THAT THAT ARE SEEKING APPROVAL THROUGH OUR LICENSING PROCESS.

SO AS MORE RETAILERS OPEN, AS MORE CULTIVATION FACILITIES COME ONLINE, WE'RE GOING TO SEE THINGS LIKE PRICES BEGIN TO DROP.

WE'RE GOING TO SEE MORE ACCESS.

WE'RE GOING TO CONVERT MORE CONSUMERS FROM THE UNREGULATED MARKET TO THE SAFE LEGAL MARKET WE'RE CREATING IN NEW JERSEY.

>> WHAT'S SORT OF THE LONG-TERM ESTIMATE?

SHORT-TERM IT SOUNDS LIKE THOSE REVENUE NUMBERS POTENTIALLY COULD DOUBLE SOONER RATHER THAN LATER, BASED ON THE EXPERIENCE OF OTHER STATES.

WHAT ARE SOME OF THE PROJECTIONS THAT MAKE SENSE TO YOU NOW?

THERE WERE A LOT BEFORE THE MARKET OPENED.

WHAT'S RESONATING WITH YOU IN TERMS OF REVENUE?

>> LAST YEAR WE DID OVER $200 MILLION IN SALES, PROBABLY WELL ABOVE $200 MILLION, PARTICULARLY QUARTER FOUR TRACKS ALONG THE SAME LINE OF Q2 AND Q3.

WE'RE GOING TO CONTINUE TO MONITOR THE MARKET AND SEE HOW THIS DEVELOPS.

I THINK THE SKY'S THE LIMIT HERE.

AND I KNOW THAT WE HAVE A LOT OF NEW BUSINESSES THAT WILL BE COMING ONLINE THIS YEAR INTO NEXT YEAR THAT ARE GOING TO ADD VALUE TO THIS MARKET, ADD NEW PRODUCTS, ADD COMPETITION, AND IMPORTANTLY, SERVE CONSUMERS HERE IN NEW JERSEY BETTER.

>> THERE'S DISCUSSION, OF COURSE, ON HOW SPECIFICALLY SOME OF THE REVENUES SHOULD BE USED.

ARE YOU PLEASED WITH THE PUBLIC INPUT YOU'RE GETTING SO FAR?

>> LAST YEAR, ONE OF THE THINGS WE HEARD CONSISTENTLY WAS THAT NEW ENTREPRENEURS NEED HELP GETTING OFF THE GROUND.

THEY NEED IT TWO WAYS.

THEY NEED IT AS FAR AS TECHNICAL ASSISTANCE TO UNDERSTAND THE LICENSING PROCESS, UNDERSTAND HOW TO GET INTO THE CANNABIS INDUSTRY.

AND ALSO HELP ADDRESSING ACCESS TO CAPITAL.

AND THAT'S WHY WE'RE VERY EXCITED THAT THE FIRST INVESTMENT MADE WITH CANNABIS TAX REVENUE WAS TO NEW JERSEY'S BUSINESS ACTION CENTER TO CREATE A TECHNICAL ASSISTANCE PROGRAM FOR ASPIRING ENTREPRENEURS TO GET INTO THIS INDUSTRY.

THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY ANNOUNCED A GRANT PROGRAM FOR CANNABIS BUSINESSES AS WELL AS THEY MOVE THROUGH OUR APPLICATION PROCESS.

>> WHAT ABOUT IMPACT FROM THE LEGALIZATION OF MARIJUANA IN NEW YORK?

IS THAT SOMETHING THAT WILL RESULT IN ANY LOST BUSINESS FOR NEW JERSEY?

OR IS IT REALLY TWO VERY SEPARATE, DISTINCT MARKETS AND THERE WILL NOT BE ANY SORT OF IMPACT FROM A COMPETITIVE BASIS?

>> SO WE'RE VERY HAPPY TO SEE THE MARKET OPEN IN NEW YORK.

ALSO VERY HAPPY TO SEE THE MARKET OPEN IN RHODE ISLAND AND CONNECTICUT.

IT MAY MEAN SOME NEW YORKERS MIGHT NOT COME ENJOY THE DAY IN NEW JERSEY, VISITING A DISPENSARY.

BUT COMPETITION, WHEREVER IT COMES FROM, IS ULTIMATELY GOOD FOR CONSUMERS AND GOOD FOR DEVELOPING CANNABIS MARKETS.

>> AND HOW DO WE MAKE SURE THAT NEW JERSEY, WITHIN THE NORTHEAST, IS THE LEADER OF THOSE STATES?

>> WE FOCUS ON COMPETITION, WE FOCUS ON MAKING SURE THAT ENTREPRENEURS WHO WANT TO GET INTO THIS BUSINESS, WHO HAVE EXPERIENCE, HAVE A SOUND BUSINESS MODEL, UNDERSTAND THE CONSUMER CAN DO SO AND CAN SERVE THIS MARKET.

>> JEFF, GOOD TO TALK TO YOU AGAIN.

THANK YOU FOR YOUR TIME.

>> THANK YOU.

>>> IN THE UPCOMING WEEK, THE CANNABIS REGULATORY COMMISSION WILL HOLD ANOTHER PUBLIC HEARING ON HOW THE STATE SHOULD USE ITS TAX REVENUE FROM CANNABIS SALES.

THE CRC IS SOLICITING IDEAS ON HOW COMMUNITIES NEGATIVELY IMPACTED BY DRUGS SHOULD NOW BENEFIT FROM ITS LEGALIZATION.

I SPOKE WITH AMI CACHELIA OF ACLU OF NEW JERSEY ABOUT THAT.

THANK YOU FOR YOUR TIME.

IT'S GOOD TO TALK TO YOU ABOUT THIS TOPIC.

HOW DO YOU THINK THE HEARING WENT IN TERMS OF GETTING FRESH IDEAS ON WHAT THE CRC SHOULD CONSIDER IN TERMS OF THIS TAX MONEY?

>> PEOPLE HAVE SAID THAT THEY REALLY WANT THESE FUNDS BEING USED TO SUPPORT THE KINDS OF COMMUNITY RESOURCES THAT HELP PEOPLE THAT ARRIVE.

THINGS LIKE EDUCATIONAL SUPPORT, HARM REDUCTION, ACCESS TO JOBS AND HOUSING.

THEY'VE ALSO SAID AGAIN AND AGAIN THAT THEY DON'T WANT TO SEE THIS FUNDING BEING USED TO SUPPORT MORE CRIMINAL LEGAL SYSTEM SUPPORTS.

AS A STATE WE'VE SPENT OVER $11 BILLION IN A DECADE TO FUND DRUG LAW ENFORCEMENT AND THE PEOPLE HAVE SAID THROUGHOUT THESE HEARINGS THAT IT'S TIME FOR A CHANGE, IT'S TIME TO FUND THE VERY RESOURCES THAT REALLY CAN HELP PEOPLE AND THEIR FAMILIES HAVE SUCCESS.

>> PARTICULARLY FROM THE ACLU VANTAGE POINT, WHAT PROGRAMS WOULD BE NUMBER ONE IN YOUR MIND TO GET FUNDED, TO MAKE SOME CHANGE?

>> I THINK IT'S REALLY IMPORTANT FOR US TO REALLY FALL THE LEAD OF COMMUNITIES ACROSS THE STATE WHO ARE ASKING FOR THIS FUNDING.

THE WAY THE FUNDING WORKS IS, REALLY, THAT THERE'S A SIGNIFICANT PORTION OF MONEY THAT HAS BEEN SET ASIDE FOR COMMUNITY REINVESTMENT.

IT'S NOT JUST THE 100% OF THE SOCIAL EQUITY EXCISE FEE THAT IS BEING CONSIDERED, BUT ACTUALLY AROUND 60% OF ALL SALES TAX REVENUE ON CANNABIS.

WHICH AMOUNTS TO TENS OF MILLIONS OF DOLLARS EVERY SINGLE YEAR.

AND SO WE REALLY WANT TO MAKE SURE THAT THE COMMUNITIES ACROSS THE STATE THAT HAVE SEEN THE MOST ARRESTS, SEEN THE MOST HARMS FROM CRIMINALIZATION, THAT HAVE SEEN HISTORIC DISINVESTMENT FOR YEARS IN OTHER COMMUNITY RESOURCES, HAVE THE LEADING VOICE IN HOW THESE FUNDS SHOULD BE USED.

THAT SAID, WE REALLY REFLECT A LOT OF THE THINGS THAT PEOPLE HAVE SHARED.

WE WANT TO MAKE SURE THAT THERE'S SUPPORTS FOR HOUSING, EDUCATION, HEALTH CARE, YOU KNOW, OTHER RESOURCES THAT GIVE PEOPLE ACCESS TO OPPORTUNITY.

>> AS YOU WELL KNOW, AT THE ACLU, NEW JERSEY HAS FAILED MISERABLY OVER THE YEARS TO PROVIDE SOCIAL EQUITY.

ARE YOU SKEPTICAL THAT THE ANSWER TO IT IS CANNABIS?

OR IS THIS ACTUALLY POTENTIALLY A TURNING POINT TO MAKE SOME REAL CHANGE IN NEW JERSEY COMMUNITIES THAT NEED IT?

>> THIS IS A STARTING POINT.

I THINK THIS IS AN OPPORTUNITY FOR THE STATE TO SHOW HOW WE CAN GET IT RIGHT, WHICH IS TO SAY, MAKING SURE THAT IT'S A TRULY PARTICIPATORY PROCESS, MAKING SURE THEY'RE FOLLOWING THE LEAD OF COMMUNITIES.

IMPORTANTLY, MAKING SURE IT'S A TRANSPARENT PROCESS.

ONE THING WE WOULD REALLY LIKE TO SEE IS FOR THE STATE TO DEVELOP A PUBLIC TRACKER THAT SHOWS HOW ALL OF THESE DOLLARS ARE BEING USED TO SUPPORT COMMUNITY REINVESTMENT AND SOCIAL EQUITY.

>> THANK YOU SO MUCH FOR YOUR TIME.

>> OF COURSE, THANK YOU.

>>> A FEW MINUTES AGO, THE CRC's JEFF BROWN MENTIONED THE NEW JERSEY BUSINESS ACTION CENTER'S NEW CANNABIS TECHNICAL ASSISTANCE PROGRAM AND TRAINING ACADEMY.

THAT PROGRAM WILL BE DEVELOPED AND LAUNCHED BY JERSEY CITY ATTORNEY JESSICA GONZALES AND HER COMPANY VERITUS QUO.

I TALKED TO JESSICA ABOUT HOW THE PROGRAM WILL WORK AND WHO WILL BENEFIT.

JESSICA, YOU WILL BE LEADING A TRAINING PROGRAM FOR CANNABIS ENTREPRENEURS, SOMETHING THAT THERE IS A LOT OF ENTITLEMENT ABOUT.

HOW WILL THE PROGRAM WORK?

WHAT WILL YOU BE DOING TO ASSIST PEOPLE?

>> SURE.

SO THE WAY THAT THE PROGRAM IS GOING TO WORK IS WE ARE GOING TO BE PROVIDING EDUCATIONAL CONTENT FOR A SELECT GROUP OF PARTICIPANTS.

SO THE EDUCATIONAL CONTENT IS GOING TO BE GEARED TOWARD THOSE APPLYING FOR MICRO LICENSES, THOSE WHO ARE CONSIDERED SOCIAL EQUITY, THOSE WHO ARE CONSIDERED LEGACY OPERATORS, DIVERSELY OWNED BUSINESSES AS WELL, THOSE THAT COME FROM IMPACTS OF BUSINESSES.

WE ARE COMING UP WITH ABOUT 10 LEVELS OF EDUCATION.

EACH ONE DEPENDS ON DIFFERENT PARTS OF THE APPLICATION AND DIFFERENT PARTS OF THE BUSINESS.

>> AND WHY IS THIS SO IMPORTANT THAT THIS EDUCATION IS OUT THERE FOR PEOPLE?

THIS IS A BRAND-NEW INDUSTRY THAT THE STATE IS REALLY WORKING ITS WAY THROUGH.

>> THERE IS A LOT OF MISINFORMATION OUT THERE.

THE REGULATIONS CHANGE ON A YEARLY BASIS.

THE STATUTE IS DIFFICULT FOR READ.

FOR FOLKS NOT FAMILIAR WITH LEGAL LANGUAGE OR AN APPLICATION PROCESS AS ROBUST AS NEW JERSEY HAS MADE IT, IT'S DIFFICULT TO NAVIGATE A LOT OF THE COMPLIANCE-TYPE WATERS.

SO WITHOUT EDUCATION, YOU'RE REALLY GOING TO HAVE TO BE RELYING ON A LOT OF PROFESSIONAL SERVICE PROVIDERS TO PROVIDE YOU WITH THAT EDUCATION.

SO WE WANT TO DO WITH THIS PROGRAM, WE WANT TO EDUCATE PROSPECTIVE ENTREPRENEURS.

WE WANT TO EMPOWER THEM TO MAKE REALLY GOOD DECISIONS ABOUT THEIR OWN BUSINESS.

THEN WE WANT TO ESTABLISH NEW CANNABIS ENTREPRENEURS IN NEW JERSEY THAT ARE LOCALLY OWNED.

>> TELL ME ABOUT TIMING.

WHEN WILL THE PROGRAM START?

HOW MANY PEOPLE DO YOU ANTICIPATE WILL PARTICIPATE IN IT?

>> SO WE ARE ENDEAVORING TO LAUNCH THE PROGRAM IN THE FIRST HALF OF 2023 WITH THE EXPECTATION THAT WE WILL BE EDUCATING AND SERVICING AT ABOUT 10,000 INDIVIDUALS IN OUR FIRST YEAR.

>> NOW, YOU'VE BEEN A PROPONENT OF LEGALIZING ADULT-USE MARIJUANA FOR SOME TIME.

YOU'VE BEEN VERY INVOLVED IN THE INDUSTRY.

YOU CERTAINLY HAVE YOUR LEGAL SIDE OF THE BUSINESS IN WHICH YOU LOOK AT CANNABIS LAWS.

HOW WOULD YOU ASSESS WHERE NEW JERSEY IS RIGHT NOW?

ESPECIALLY AS OTHER STATES ARE COMING TO THE FOREFRONT WITH LEGALIZING POT?

>> I THINK NEW JERSEY'S ACTUALLY DONE A REALLY SOLID JOB OF STICKING TO ITS GOALS.

AND SO WHETHER THAT BE GOALS ABOUT LICENSING, THE TYPES OF DEMOGRAPHICS THAT SHOULD BE LICENSING, THE PROCESS, THE TRANSPARENCY, I ACTUALLY THINK HERE IN NEW JERSEY, IT'S BEEN VERY TRANSPARENT IN TERMS OF WHAT IS REQUIRED.

>> DO YOU THINK THAT WE WILL ACHIEVE SOCIAL EQUITY WITHIN THIS INDUSTRY?

>> IN TERMS OF SOCIAL EQUITY AND REALLY REPAIRING THE HARMS THAT HAPPENED BECAUSE OF CANNABIS PROHIBITION, THE CAN THAT BUSINESS INDUSTRY IS JUST ONE FACET.

THE CANNABIS INDUSTRY WILL PLAY A VERY LARGE ROLE BECAUSE OF THE COMPLEX RACIAL HISTORY OF CANNABIS.

I DO THINK THAT A LOT OF WHAT WE ARE DOING WITH THIS PROGRAM IS GOING TO HELP UPLIFT A LOT OF THOSE WHO WANT TO PARTICIPATE IN THIS INDUSTRY.

>> JESSICA, GOOD LUCK AS THIS PROGRAM GETS UNDER WAY.

IT WAS REALLY GOOD TO TALK TO YOU.

>> THANK YOU SO MUCH.

>>> CANNABIS COMPANIES IN NEW JERSEY WATCH THEIR SALES TAKE OFF LAST YEAR ONCE THE MARKET WAS LEGALIZED.

WHAT DO THEY EXPECT THIS YEAR?

ARE THEY WORRIED ABOUT COMPETITION?

TO GET SOME ANSWERS TO THOSE QUESTIONS, I SPOKE WITH DARREN WEISS, CHIEF OPERATING OFFICER AT VARANO HOLDINGS, ZEN LEAF DISPENSARIES.

GOOD TO HAVE YOU ON THE SHOW.

IT'S BEEN A VERY INTERESTING TIME WATCHING NEW JERSEY'S RECREATIONAL CANNABIS INDUSTRY GROW.

FROM YOUR PERSPECTIVE, WHAT HAVE YOU SEEN AT ZEN LEAF?

AND ARE YOU PLEASED WITH THE PROGRESS?

>> WE'VE BEEN EXTREMELY HAPPY WITH THE WAY THE PROGRAM HAS UNFOLDED.

FROM OUR PERSPECTIVE, WE'VE BOTH MANUFACTURED AND CULTIVATED PRODUCTS, AS WELL AS RETAIL PRODUCTS THROUGH OUR ZEN LEAF LOCATIONS.

WE'VE SEEN TREMENDOUS, TREMENDOUS DEMAND.

REALLY, OF COURSE, BEGINNING AT THE ROLLOUT BACK IN APRIL LAST YEAR.

IT'S CONTINUED APACE.

IT'S BEEN SO EXCITING TO SEE AND TALK TO FOLKS IN NEW JERSEY WHO HAVE HAD THE OPPORTUNITY TO REALLY COME OUT OF THE SHADOWS, SO TO SPEAK, AND BE ABLE TO ENGAGE WITH THE PLANT AND ENGAGE WITH THE PRODUCTS THAT WE PRODUCE IN A WAY THAT'S TRANSPARENT, IN A WAY THAT'S LEGAL, IN A WAY THAT IS ACCESSIBLE TO THEM THROUGH THE VARIOUS FORMS OF PRODUCTS THAT WE OFFER.

>> LET'S TALK MORE SPECIFICALLY ABOUT YOUR BUSINESS.

CAN YOU QUANTIFY ANY FURTHER THE DEMAND YOU'RE SEEING IN TERMS OF SALES GROWTH?

ARE YOU SEEING EXPONENTIAL GAINS?

ARE YOU ANTICIPATING CONTINUED SALES GROWTH THIS YEAR?

>> SINCE ABOUT JUNE OF LAST YEAR, WE'VE SEEN A PLATEAUING OF THAT DEMAND THROUGH OUR OWN RETAIL STORES.

YOU KNOW, AS MORE STORES OPEN AND MORE RETAIL ESTABLISHMENTS BECOME AVAILABLE FOR USE FOR THE FOLKS OF NEW JERSEY.

THAT BEING SAID, YOU KNOW, THE DEMAND IS STRONG.

IT REMAINS STRONG.

IT IS ONE OF OUR TOP MARKETS FROM A PRODUCTION AND REVENUE PERSPECTIVE.

>> WE KNOW NEW YORK IS COMING ONLINE, CONNECTICUT.

OBVIOUSLY A LOT OF STATES ARE SHOWING INTEREST.

WITH NEW YORK SPECIFICALLY, ARE YOU WORRIED ABOUT ANY SALES EROSION IN TERMS OF JUST OPTIONS TO BUY MARIJUANA IN NEW YORK?

>> CERTAINLY WHEN NEW STATES COME ONLINE AT THE MARGINS, AT THE BORDERS, WE SEE A BIT OF EROSION OF DEMAND.

WE HAVE A STORE IN ELIZABETH, NEW JERSEY, WHICH IS CLOSE TO NEW YORK.

OUR OTHER STORES ARE A LITTLE FURTHER AWAY.

I THINK WE'LL CERTAINLY SEE SOME DEMAND SLIP IN ELIZABETH.

BUT AT THE SAME TIME, I THINK NEW JERSEY IS PARTICULARLY WELL-POSITIONED FROM A PRODUCT QUALITY PERSPECTIVE.

I THINK YOU'RE NOT NECESSARILY GOING TO SEE THE TYPE OF PRODUCTS AND THE BREADTH OF PRODUCTS THAT WE HAVE IN NEW JERSEY AVAILABLE TO PATIENTS AND CUSTOMERS IN NEW YORK.

CERTAINLY NOT ON DAY ONE.

I THINK IT'S GOING TO TAKE SOME TIME.

SO I THINK THE FOLKS IN NEW JERSEY ARE GOING TO COME TO APPRECIATE THAT AND UNDERSTAND THAT THERE'S A LOT MORE OPTIONS FOR THEM TO STAY IN THE STATE.

>> IT'S BEEN SO GOOD TALKING TO YOU AND HEARING A LITTLE BIT MORE ABOUT WHAT'S HAPPENING AT ZEN LEAF.

THANK YOU FOR YOUR TIME.

>> THANK YOU SO MUCH FOR HAVING ME.

>> THAT DOES IT FOR US THIS WEEK.

REMEMBER TO SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> COMING UP NEXT WEEK, WE LOOK AT THE GOALS FOR NEW JERSEY'S HOSPITALITY BUSINESSES AND HOW A LOOMING RECESSION WILL IMPACT A VITAL NEW JERSEY INDUSTRY.

THANKS FOR WATCHING.