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This week on NJ Business Beat.

>> The commerce of cannabis is so crucial to the success of the state.

>> We are talking all things cannabis marking the one you're a bursary of legalization of sales in the United States.

We break down the economic impact for New Jersey including its impact on a tight labor market and when my partners and I first started lobbying to get into cannabis, not that many towns were open to it.

>> We hear from one of the newest dispensaries open in New Jersey about the process from licensing to opening day all ahead on NJ Business Beat.

>> This is NJ Business Beat.

>> Hello thank you for joining me.

Marijuana has proven to be a significant investment for New Jersey.

The state recently recognized one year of legal recreational cannabis sales in the UAE -- in the state.

Since then, 25 total dispensaries have opened to offer recreational weed.

We're waiting on fourth quarter figures, by the end of the first quarter, the state earned more than $116 million in revenue from recreational cannabis.

A 46% increase from the second quarter.

If you add in medical cannabis sales, the total is over $177 million.

The industries getting high marks from New Jersey residents.

69% say they bought weed from a legal dispensary in the first year of sales and most are happy with the experience.

86% say they are satisfied or very satisfied.

43% say they like the product at dispensaries.

Prices remain an issue with nearly half of those polled saying costs are too high.

Opening up a dispensary in New Jersey can be trickery -- tricky.

The poll found 53% are OK with the dispensary in their neighborhood.

39% are opposed.

New Jerseyans now how important the industry can be for the state with 83% supporting consumption tours and lounges.

I sat down with the Former President and current board member for the NJ cannabis Association.

>> Let's start out with discussing the recreational cannabis sales numbers.

I think that's important to this conversation.

>> According to the cannabis regulatory commission, when you look at the closing of December 2022, those are the public numbers so I will stick to those.

It was over $180 million in revenue to the state of New Jersey.

Close to $200 million.

I think that is significant not only from an industry standpoint, but when you look at New Jersey's economy, the commerce of cannabis is so crucial to the success of the state at this juncture.

When you are talking about $200 million, that is significant.

>> When we think about, you brought up the state.

We think about the state and how it is doing in terms of ensuring that applicants and social equity, legacy, impact zone, diversity owned and micro-business categories, what type of support are they need of and are they getting?

>> Managing expectations became very challenging.

When you look at the commerce of this industry as with any other, I think there was almost a misinterpretation in that if someone said I am formerly incarcerated, I'm getting a license or I'm a woman or I'm a person of color I'm getting a license, there was very little with respect to the conversation around but it's business.

You're going to have to do certain things in order to become part of this economy.

When we look at economic zones, impact zones, what has the state done, what are the challenges that remain, I think managing those expectations comes right back into play because we have had over 1000 conditional licenses issued.

These are applicants that they were not required to have site control.

We were not required to have municipal approval in order to get their licenses.

When you look at that and you lower the bar to entry which was a success and people are getting conditional licenses, now they are running up against what any other business would run up against and that is access to capital.

It just so happens that access to capital and the difficulty in the cannabis industry is amplified because it is the cannabis industry.

What we look at the cost of construction, the cost of doing business, it is difficult but especially in the cannabis industry.

When we start looking at those things we need to do that we have to do in order to overcome some of these challenges, a lot of it goes back to what are the expectations?

By a large, getting back to your original question, creating the protestation making sure that those applicants and impact zones in the economically disadvantaged areas, those formerly incarcerated, women, minorities, that those licensing priorities did succeed.

>> You talked about access.

I guess my next question is how will the New Jersey business centers cannabis training Academy help those applicants that you talked about in those categories get started in this industry?

>> That's a great question because it goes to the heart of what the New Jersey cannabis business Association has stood for especially from the days when I became president and we talked about becoming the cannabis Chamber of Commerce.

I have said it a dozen times or more.

We are concerned about business acumen.

What does it take to have or possess the business acumen to be successful in this space?

The business action center who is an agency that we do work with, we are talking about what does it take to not only fill out the right forms, finding the right forms, finding the right directories, going to the right places?

They are very much part of the business acumen get that does exist.

For better or worse in the communities that are vying for cannabis applications or licenses.

>> Definitely a conversation that we will continue to revisit as we see the cannabis industry continued to grow and develop.

Thank you for joining me to speak about this.

>> Thank you, I really appreciate it.

It is a dynamic industry and there is more to come.

>> As the cannabis industry continues to grow, so does the demand for skilled workforce.

Or colleges are adding cannabis studies to prepare students in entering this industry.

I sat down with an adjunct professor of cannabis studies at Stockton University to discuss cannabis education and training as well as possible careers.

>> Cannabis is a hot topic when it comes to business and college campuses.

Tell us how these courses and studies are playing a critical role when it comes to the future of the cannabis industry.

>> It is as you mentioned a crucial role because the people we are educating in our classes are going to be the ones who determine what the cannabis industry is going to look like.

Hopefully, we have given them some crucial areas to think about.

We have given them's perspectives on how the business should be developed and we are creating officials -- professionals.

Most of the jobs in cannabis are professional jobs.

I know people think about entry-level jobs, but in reality , most of the jobs in cannabis are ancillary jobs or jobs that support the industry and its a lot of professional jobs, things like accounting, consultants, compliance, inventory managers.

It is really a professional industry, it is the fastest growing in New Jersey right now and in just one year, we have gone from roughly 4000 jobs up to close to 7000 jobs and in the next three years, we will be hitting in 20,000.

However you look at it, it is something to address, it's a major force.

>> I wanted to touch on that.

One year later, what are you seeing not just in terms of enrollment, specific careers, >> industry.

In 2020 New Jersey sold $555 million worth cannabis.

Roughly two thirds of that were for adult use customers.

What's happening in the market, we are starting to mature a little bit.

We have roughly 130,000 medical patients and that number is leveling off.

Because there are still patients that are signing up, but there are also people who are deciding I don't want to get my medical card because I can just go in as an adult user so they might not want to go to their doctor because of stigma or the hassle or the small license fee.

You have a lot of people who are just opting in for adult use and are skipping the medical part of it.

Even though medical patients to get discounts, they don't have to pay any sales taxes.

That is something that people way out.

We are also seeing $20 million in tax revenue.

Townships and government are paying attention as well seeing that this is a business that can be regulated, compliant, it can produce jobs, raise communities, and can employ a lot of people.

It is pretty amazing.

All of that is done with literally 37 total dispensaries.

24 of them serve adult use and medical use and only 13 are medical only.

Four out of the 13 will be converting so they will sell adult use also.

That tells you that our population of 9 million being served by 37 dispensary, they produce $555 million.

By next year, we will get close to $1 billion in sales and that is something you really have to pay attention to.

>> You don't just think, you know because of a survey.

Let's talk about that because there are surprising things you found.

>> Absolutely.

A couple of days ago, Stockton did a survey through the William Hughes Center for Public policy.

They surveyed 660 adults and of those, they found roughly one third of them had consumed cannabis in the last year.

The other thing that impressed me the most was 86% of the people said if they going to a dispensary, they were either satisfied or very satisfied with what they found.

They cited two things.

They cited the safety of the product.

Clearly, having tested product regulated product nicely packaged product is resonating with consumers.

The other thing they mentioned was quality.

In terms of quality, we are at the very tip of the iceberg.

Our product is going to get so much better as we get more producers particularly the small craft producers in the market because right now, we are depending on the big operators.

The fact that people have gone to dispensaries, they like what they are seeing is pretty amazing.

Roughly 70% of the respondents said they had purchased from dispensaries.

30% said they had purchased from the underground legacy market.

One thing they cited was priced.

New Jersey has the most expensive cannabis in the country.

An eighth of an ounce costs between -- $50 and $60.

In Massachusetts, their prices are about half.

It's not a surprise to me that people still go underground for price.

The other thing they said and this is something that operators need to listen to is that they did it because of distance to dispensaries.

If I am too far away, I will get my product from the underground.

That tells you as we build up the market, you will have so many people going to the dispensaries.

>> I never honestly thought I would be able to say this, but Weed is the future not just when it comes to business, but also on college campuses.

Thank you for joining me.

>> Thank you for the time I appreciate it.

>> The state of New Jersey has a license application process that prioritizes women and people of color wanting to get into the legal weed business.

We are seeing signs of improvement.

Earlier this year, we saw the first like woman-owned dispensary open in South Jersey and a new woman and minority owned Spencer he is set to open this summer in New Brunswick just minutes away from Rutgers University.

I asked a co-founder and VP of legal operations why she chose New Brunswick and what is needed to help women get their cannabis businesses off the ground.

IQ for joining me.

-- thank you for having me.

>> Tell me about the new store opening near Rutgers.

Why did you choose that location?

>> Why New Brunswick?

When my partners and I first started lobbying to get into cannabis, not that many towns were open to it.

From the very beginning, New Brunswick welcomed us with open arms and for that, we will forever be grateful to the town and the mayor.

New Brunswick is a great town.

Town of arts, music, great restaurants, bars, people.

Who wouldn't want to open there?

>> And you are right near a college campus.

>> Yes.

Very huge.

We are excited to come into town.

>> I love that you are a woman of color.

Especially for other women watching, what has it been like getting into developing, creating or spot in the cannabis industry?

>> Getting into cannabis overall is not easy.

But I will say from my personal experience, it has been exciting.

It is exciting for women like myself and my partner, Sylvia to get into this industry.

The CRC has done a wonderful job in creating priority for applicants like myself.

Just the other meeting, they moved annual minority diverse owned businesses up on the priority list creating opportunities for us into the industry.

Kudos to them for that.

It is very exciting and I am excited to see what is to come for us but it's great times for women entrepreneurs in cannabis right now.

>> We know there are some cons.

New Jersey has the most expensive legal weed.

How will that impact your business?

>> It will be tough for all of us in the very beginning.

As more cannabis growers, retailers, different cannabis businesses come on board and the market becomes more saturated, prices will adjust and it will become easier for us over time.

>> What kind of support do you think is needed to help more female entrepreneurs to grow their cannabis business?

>> That's a great question, I'm so glad you asked.

I would start by saying funding.

Funding funding funding is key.

The safe banking act needs to be passed.

It needs to become federally legal.

We need more banks and financial institutions and investors able to give small businesses loans to help us get into this industry.

Secondly, I would personally love to see more mentorship programs.

A lot of times in meetings and events, I'm running across people who want to get into this business.

They don't know where to start.

They don't how to look at the ordinance to see if the town allows cannabis.

They don't how to negotiate real estate, how to read a contract, how to get zoning approval and many of the things that are required to get into this industry.

>> Tell me when can we expect to see puffin?

>> Very exciting times, we are in the process of our buildout.

Summer of 2023, come check us out.

>> I hope lawmakers were listening.

More funding, support, mentorship is what is needed in order to see more people like yourself open up these businesses.

Thank you for joining me.

>> Thank you for having me.

>> Good luck.

One aspect of the marijuana industry that has gone up in smoke in New Jersey is home growing.

Many of the competitors like New York and Massachusetts allow residents to grow marijuana at their homes.

New Jersey has yet to approve home cultivation because the effort to pass a bill in Trenton has stalled.

I spoke with one of the sponsors about his effort to allow home growing.

Thank you for joining me.

>> Thank you for having me.

>> We know that legal cannabis businesses tend to lack diversity in gender and race.

It also can create an unfair playing field when it comes to the price of marijuana.

Tell me how your homegrown bills will change that.

>> Essentially, the bills that myself and my friend and colleague have introduced, the whole focus of that is to move New Jersey to what every other state that has legalized cannabis has done to allow home growing component.

The way the price is in New Jersey, there needs to be some downward pressure to force the price to be more realistic.

We believe home growing has the opportunity to do that without negatively impacting the industry.

We have information from other states that both can coexist well.

It is our hope we can get that across the finish line this year.

>> Did this all come about because you were hearing about ballot -- there years or challenges?

Is that what motivated you?

>> The foundation of this legislation has always been about people.

The people who use medical cannabis as their medicine and just like in the traditional pharmaceutical sense, pricing is making people make choices between caring for themselves or shelter or putting food on the table.

Our dearly pardon Senator who initiated -- departed Senator who initiated this, we both understood there is an obligation for us to try to advance public policy that helps people across the board.

Right now we see corporate cannabis doing extremely well with the structure we have now but this presents an opportunity for us to help real people in an immediate fashion.

>> Let's talk about consequences because there are fines.

>> Yes.

We don't want to create a cottage industry where someone is growing medical cannabis for themselves but also providing it to others.

When individuals step out of those parameters, they deserve to face the consequences of that.

But so many folks in the homegrown and medical cannabis space, they are legitimately growing just enough for themselves to treat their medical needs.

Us, I think that's the best way for us to go.

>> The bill because it has so many Democratic cosponsors has not attracted bipartisan support.

>> I think that would change once the bills begin to move.

Many of my colleagues right now, we are sitting back waiting to see if we're going to advance this concept because I can tell you point-blank, the people and the economy the talk about this, the nomenclature after their name is irrelevant.

They are tired of paying the exorbitant prices and they just want to get their medicine for the cheapest way imaginable and many of those it's if they grow it themselves.

When this bill is posted, I think you will see broad bipartisan support.

>> Do you think that is the primary holdup for this bill?

>> There is a philosophical challenge as it relates to those who see homegrown on a competing track with the traditional corporate cannabis industry.

Our reject that notion, don't think that's an actual -- accurate description of how we go about it.

My goal is to continue to talk about this and educate others to remind them we can do this and not destruct this industry we have just created but allow folks to get the medicine they need on a timetable which they deserve.

>> You brought up assistance.

When I think about the state Medicaid program trying to help those individuals who register.

>> One of the other proposals we have introduced and we feel strongly about is especially for those lower income medical cannabis users, to provide some subsidy and the legislature talks about 20%, to allow them to have access to that medicine.

We believe is not inconsistent with what we have seen for things like other programs.

It's a way of helping individuals who need help to reduce the cost of medical cannabis.

>> Senator, thank you so much for joining us.

We will have to watch and see what happens.

That does it for us this week.

Member to subscribe to our NJ Spotlight News YouTube channel to get alerted will be post new episodes and clips.

We will see you next weekend.

>> Funding provided by IBEW local 102 proudly serving the business community since 1900.

Lighting the path, leading the way.

And for more than 110 years, N JBIA has been focused on the success of our members.

We are the voice representing all industries working together to build a more prosperous New Jersey through advocacy, support, networking, and benefits.

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