New Jersey’s Cannabis Tax Revenue Allocates $5 Million To Prevent Violence

New Jersey Governor Phil Murphy and Attorney General Matthew J. Platkin recently announced an initiative totaling $15 million to support Community-Based Violence Intervention (CBVI) programs, a portion of which are from a special cannabis tax fund.

According to a press release, Murphy has helped facilitate the use of more than $40 million for CVBI programs since 2021. This year, the initiative will receive $5 million from the Cannabis Regulatory, Enforcement Assistance and Marketplace Modernization Fund.

“Violence has gripped parts of our state for far too long. And since day one of our tenure, we’ve been committed to solving that problem,” Murphy said in a press release. “Through initiatives like that [CBVI] programs, we’ve made great strides in delivering on that promise. I am incredibly grateful to Attorney General Platkin and his team for their tireless efforts to reduce violence in our state and create a safer community for all.”

CBVI programs include “interventions and protections” in areas where violence is most prevalent. “Through this public health approach to breaking cycles of violence and with a focus on reducing gun violence, CBVI initiatives encompass a range of strategies: mentoring programs, outreach, trauma support services, high-risk de-escalation, targeted afternoon classes “Programs, Vocational Training and More,” reads a press release.

“The safety of New Jersey residents is my top priority. Our comprehensive public safety approach focuses on supporting community-led violence intervention efforts that break cycles of violence on the ground,” said Attorney General Platkin. “Thanks to Governor Murphy’s leadership and support, we continue the historic investment and commitment of the State to this important work. These funds continue to put resources in the hands of grassroots organizations, allowing communities to become part of our public safety mission.”

To receive a portion of the available funding (up to $750,000), applicants must demonstrate a track record of working with violent intervention. Interested applicants can apply for one of two categories through September 26 through the Department of Law and Public Safety. First, “Tertiary Prevention” which offers services such as “de-escalation or mediation between individuals and groups, high-risk individuals, mentoring” and has street outreach teams ready to go. The second, “Primary or Secondary Prevention,” implements violence prevention strategies for vulnerable areas with high rates of violence.

This is currently the third year the state has provided CBVI funding and has expanded to 31 community organizations across the state. In 2022, New Jersey’s CBVI program provided a portion of $20 million for violence intervention efforts, and in 2021 the state offered $10 million.

Other states in the US also have special cannabis tax funds that benefit local organizations. In May, the California Governor’s Office for Business and Economic Development (GO-Biz) announced a wave of organizations that had applied and received approval to receive a portion of $48 million raised by proceeds from the Cannabis tax was generated. Organizations such as Centers for Equity and Success, Inc., Shields for Families, the Los Angeles Department of Public Health, UnCommon Law, and the Monterey County Health Department. Other grants including First Place for Youth, Goodwill of the San Francisco Bay and United Friends of the Children were selected.

In April 2020, GO-Biz launched this annual program by providing $30 million to approved grantees. In 2022, the amount increased to $35.5 million awarded to 58 grantees. The state already started the application process on August 14 and the due date is September 18. The grants for 2024 will be announced in May 2024. All recipients have three years after these grants to spend the funds.

Also in June, the California Department of Cannabis Control announced that $4.1 million will go to 18 local governments under the Local Jurisdiction Retail Access Grant. The distribution included various cities and counties, such as the City of Riverside and Los Angeles County, to develop individual state cannabis licensing programs (restricted only to cities and/or counties that have not opted out of licensing cannabis businesses).

Governor Murphy signed into law the state’s adult cannabis use legislation (officially the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act) in February 2021. Adult cannabis sales started in April 2022, and by the end of a year, the state had 24 licensed cannabis businesses operational (up from 13 when it started).

Sales data from the third quarter of 2022 recorded adult-use cannabis sales in excess of $100 million. “New Jersey is just beginning to see what’s possible for cannabis,” said Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “We have now licensed 36 annual recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. These companies alone will ensure significant growth in the market. With more locations and greater competition, we expect the customer base to grow and prices to come down.”

According to the latest data released by the New Jersey Cannabis Regulatory Commission, gross revenue from recreational cannabis was $474,407,516 and gross revenue from medicinal cannabis was $204,731,182 in the first quarter of 2023.