New Jersey is Accepting Applications for Additional Medical Cannabis Businesses

The New Jersey Department of Health (DOH) is accepting applications for 24 new medical cannabis alternative treatment centers that will be dispersed across three (3) regions in the state. New Jersey will issue 15 dispensary permits, 5 cultivation permits and 4 vertically integrated permits that authorize cultivation, manufacturing and dispensary activities. The number of new permits is significantly lower than the 108 permits that the DOH announced would be available in the beginning of June.

The DOH stated that the new ATCs are needed as 30,000 new patients enrolled in the medical cannabis program since the state expanded the eligible medical conditions to include chronic pain, anxiety, migraine, and Tourette syndrome. As of July 1, 2019, there are a total of 49,000 patients enrolled in the medical cannabis program.

New Jersey’s medical cannabis program currently has six (6) alternative treatment centers that are operational in Egg Harbor Township, Montclair, Woodbridge, Cranbury, Secaucus and Bellmawr. The state awarded six (6) additional ATC permits in 2018. The new ATCs will be distributed evenly across the Northern Region, Central Region and Southern Region with one additional vertically integrated permit that will be available based upon patient need and the applicant’s total score.

In recent weeks, New Jersey municipalities have approved conditional use permits for medical cannabis operations in Vineland and Monroe. Other New Jersey cities have recently adopted ordinances to permit medical cannabis businesses including Jersey City, Newark, Hoboken, Rochelle Park, Penns Grove, and Barrington.

A few notable items from the request for application are provided below:

  • The state’s scoring methodology mirrors the state’s recent recreational cannabis legislation by offering significant points for applicants that enter into labor agreements, are women, minority or vet owned businesses, and that intend to create jobs in economically disadvantaged areas. The state will also award significant points to applicants that have experience operating a cannabis operation in compliance with a government regulated cannabis program.

  • New Jersey’s application process requires disclosure of a broad spectrum of entities associated with the applicant including

    • persons or businesses with over 5% direct and indirect ownership including interests in profits or land;

    • persons who are authorized to direct the organization or its policies;

    • employees, principal officers, directors, owners and board members; and

    • contract for intellectual property, land, management and funding.

  • A person or business may only receive one permit, and the number of applications that may be submitted are limited.

  • Applications are required to be submitted by August 22, 2019.

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