The New Jersey Cannabis Regulatory Commission opened the application process for consumption lounges on Jan. 2.
Haytham Elgawly is CEO and owner of XENA, a cannabis dispensary in Jersey City, which has a cannabis consumption area that can fit about 75 people. Elgawly said he has spent more than $1 million on safety measures and conforming to strict regulations over three years — “ordering mitigation systems, air purification systems, noise reduction, bathrooms, just anything to build an assembly room to have people here, and ways to mitigate the smoke and make sure everyone [is] safe in a climate-controlled” environment.
Elgawly said the requirements haven’t been easy or cheap to meet but credits the CRC for its guidance, and he said, “They expedited my application because I am a minority, impact zone, social equity applicant.”
Under the rules, cannabis consumption areas must be attached to licensed dispensaries, have municipal approval and comply with strict regulations. The regulations include restricting lounges to adults ages 21 and older, no unregulated cannabis and no food or alcohol sales, although customers can bring food in or order it.
The lounges are also required to implement odor control measures, and consumption limits must be enforced.
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