CRC says New Jersey cannabis market topped $1 billion in 2024; agency highlights equity gains and staffing needs

The Cannabis Regulatory Commission told the Assembly Budget Committee it has overseen rapid market growth and taken steps to prioritize equity and patient access while warning the agency needs more staff to sustain oversight.

In opening remarks, CRC officials said the state’s legal cannabis market surpassed $1,000,000,000 in sales in 2024, a roughly 25% increase from 2023, and reported the state collected more than $43,000,000 in tax revenue plus more than $2,000,000 through the social-equity excise fee. Executive staff said the agency processed about 200 new applications last year and has handled almost 3,000 applications since the CRC’s creation.

“Access to medical cannabis in New Jersey has been expanded,” the CRC said, adding that it holds alternative-treatment centers accountable for patient-access standards and collects fines when standards are not met. The CRC said it added 18 staff last year (a roughly 15% increase) and that its licensing team has approved more than 2,200 applications to date.

CRC leaders told lawmakers the commission has put equity reforms into regulation, including a priority-review process for social-equity, minority-owned and veteran- or women-owned applicants; the commission asserted that roughly 35% of annual license awardees are majority-minority owned, 40% are majority-women or majority-disabled-veteran owned, and 21% of awards have gone to social-equity businesses.

Committee members asked whether a proposed increase in the social-equity excise fee — a legislative proposal under consideration — would boost available funds earmarked for reinvestment. CRC officials said if the fee rose to $15 per ounce the commission projects approximately $74,000,000 in FY25 revenue and about $104,000,000 in FY26, and said those funds are appropriated by the legislature and governor for reinvestment priorities determined through regional hearings.

Lawmakers also pressed the CRC on staffing and compliance. The commission said it currently has 68 filled positions, expects to need more compliance officers and field monitors as market participants increase, and is developing a Salesforce-based customer resource-management system to automate background checks, financial disclosures and other licensing tasks.

The CRC also described outreach and training programs intended to broaden participation in the regulated market, including an online Cannabis Training Academy, and said it coordinates with the Economic Development Authority and Treasury on seed grants and other assistance.

The committee requested follow-up data on the EDA cannabis grant recipients’ demographics and on municipal opt-outs and how those opt-outs affect access by county and community type. The CRC agreed to provide additional details through the chair.