Days after the close of the application deadline for six medical marijuana dispensary licenses, Gov. Phil Murphy announced the state Department of Health has received 146 applications from 106 organizations seeking to enter the Garden State’s cannabis marketplace.
“By expanding Alternative Treatment Center locations in New Jersey, we are putting patients first and ensuring more convenient access to medical marijuana,” Murphy said in a statement. “This is another step forward in removing barriers put in place by the previous administration and creating a more consumer-friendly program.”
Interest in the new licenses has been intense. The Department of Health released a request for applications July 16 for up to six new applicants to operate medical marijuana dispensaries, and, at a mandatory pre-conference meeting at the War Memorial in Trenton on Aug. 9, nearly 800 interested applicants and their representatives were in attendance. The deadline for this round of licenses closed on Aug. 31.
Under the current law, the new dispensaries will be limited to opening two locations in each of New Jersey’s three regions: south, central and north. According to the announcement, the health department received 50 applicants for the northern New Jersey, 45 in the central and 51 in the south.
The new set of licenses seek to double the current number of medical dispensaries in New Jersey, but unlike the original six operators,these new applicants will not be required to operate as non-profit businesses.
The new licensing round also requires that applicants operate vertically integrated businesses, meaning they’re responsible for cultivation, manufacturing/extraction and retail sales.
According to the announcement, the original six dispensaries were not eligible to participate in this application round because as existing alternative treatment centers, they already have the opportunity to add additional sites for cultivating, manufacturing, and dispensing.
The state health department has said more licensing opportunities will be available in the future.
Since Murphy ordered an expansion of the state medicinal marijuana program earlier this year, enrollment has swelled, but industry insiders and state officials have voiced concerns that New Jersey’s current number of dispensaries won’t be able to meet growing demand.
“Program participation has surpassed 30,000 individuals as a result of reforms already made, and we expect that number to keep growing,” New Jersey Health Commissioner Dr. Shereef Elnahal said. “We need more Alternative Treatment Centers to keep pace with the demand for a therapy that has been unjustly restricted for so long.”
The health department has said applications will not be made publicly available until after all licensing awards have been made.
The DOH’s announcement arrives a day after the expiration of Attorney General Gurbir Grewal’s temporary adjournment of cannabis prosecutions in the state.
Instead of decriminalizing marijuana possession on a town-by-town basis, Grewal advised municipal prosecutors to enforce state laws but use their discretion on each case.
State legislators, meanwhile, have been hashing out negotiations behind closed doors seeking to expand the current medical program and permit adult-use cannabis in the Garden State.
These bills haven’t yet been introduced, but legislators have said they expect to include licensing for delivery and wholesale, micro licensing for smaller operators, along with provisions for expungements for low level possession convictions.
Credit: nj.com
