The enabling bill, NJ S21 (20R) / NJ A21 (20R), which broadly resembles a failed cannabis legalization measure considered by lawmakers last year, is a 200-page-plus behemoth containing intricate criminal justice reforms, licensing provisions and economic recovery measures.
Lawmakers pulled the bill from a Senate Budget and Appropriations Committee meeting last week to resolve outstanding disagreements.
How it works: Nine months after the first recreational retail sale occurs — excluding any recreational product sold by the 12 dispensaries currently licensed to sell medicinal marijuana in New Jersey — the regulatory body overseeing the industry can consider imposing cultivation fees that are tied to the retail sale of cannabis.
That fee can rise as the price of recreational cannabis falls, four of the sources said. If the average retail price of cannabis is above $350 an ounce, the excise fee set by the Cannabis Regulatory Commission can climb to as high as $10 per ounce on cultivators.
If it’s above $250, and below $350, that fee can climb to up to $30 per ounce. The fee can be $40 if the average price is between $199 and $250 and up to $60 if it falls below $199.
The commission will only be able to set cultivation excise fees once per year. A small fee, representing a fraction of a penny on all sales, would take hold on cultivators as soon as the enabling legislation takes effect.