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CRC denies several waiver requests, waives one regulatory deadline for social equity excise fee calculation
Summary
The Commission denied waiver requests from Blue Oak (WR034), NAR Group (WR037), Genuine Grow (WR038) and Hello High (WR039) after legal staff said the issues implicated statutes; it granted a waiver removing the Nov. 1 deadline for the social equity excise-fee notice to allow staff more time to calculate the average price.
At its Oct. 1 meeting the New Jersey Cannabis Regulatory Commission considered multiple rule-waiver petitions and took a split approach: it granted staff extra time to calculate the social equity excise fee metric but denied four other waiver requests that implicated statutory requirements.
Director Riggs requested a waiver of the November 1 filing deadline in NJAC 17:30-3.4(d) to allow staff adequate time to calculate the average price of usable cannabis used for the social equity excise-fee determination; the Commission voted to waive the regulation so the November 1 deadline would be removed. Director Riggs said staff needs additional time to complete the calculation.
Chief Counsel reviewed other waiver petitions and advised the Commission about statutory constraints. Blue Oak New Jersey LLC (WR034) sought permission to permit the sale of hemp-derived THC/CBD, but counsel explained that the CREAM Act defines cannabis as distinct from hemp and the Commission cannot waive statutory requirements; commissioners voted to deny WR034.
The Commission also denied WR037 (NAR Group) — a request affecting regional co-location rules for cultivation sites — and WR038 (Genuine Grow LLC), which sought deferral of background-investigation/financial-source fees until post-operations; commissioners expressed concerns about precedent, fee clarity and the applicants’ justifications. WR039 (Hello High) asked for an increase to the one-ounce sales limit; counsel noted the one-ounce limit is statutory and cannot be waived, and the request was denied.
Why it matters: Waiver decisions affect what businesses may legally do under Commission rules and state law. Commissioners repeatedly noted they could not waive requirements derived from statute and urged legislative changes where appropriate.
What’s next: Staff will continue the social equity excise-fee calculation without the Nov. 1 filing deadline and the denied waiver applicants may seek legislative change or refile with additional statutory justification.
