How To Open a Dispensary In New Jersey

New Jersey Medical Marijuana Program

On July 2, 2019 Governor Murphy signed the Jake Honig Compassionate Use Medical Cannabis Act to reform New Jersey’s Medicinal Marijuana Program (MMP) and expand patient access to medical marijuana. As of July 2019, a total of 51,000 patients, 2,000 caregivers and 1,000 doctors are participating in the program. The bill also creates New Jersey’s first Cannabis Regulatory Commission under the Department of Treasury, transferring responsibility from the Department of Health to the Cannabis Regulatory Commission. New Jersey does not allow homegrown marijuana under its current law. There are currently 6 Alternative Treatment Centers (ATCs) operating in the state.

The Department is no longer accepting ATC Applications as of August 2019 for dispensing, cultivation, and vertically integrated permits. On July 1, 2019, the Department of Health released an updated Request for Applications for 24 additional ATCs. The ATCs will have three types of permits: cultivation, dispensing, and vertically integrated permits. Vertically integrated permits include 1 cultivation endorsement, 1 manufacturing endorsement and 1 dispensary endorsement.

The Department will issue up to 5 cultivation endorsements, up to 15 dispensary endorsements, and up to 4 vertically integrated permits. State lawmakers have vowed to reintroduce legislation to legalize recreational marijuana next year, or file a ballot initiative to do so via constitutional amendment..

Application Fees/Start up costs

Application fees are $20,000, $2,000 of which is non-refundable.Start-up costs are highly variable, depending on your location, condition of property, scale of business, and type of business.

Local approval

Local approval is required in order to operate in NJ. Local approval processes vary by jurisdiction. Many cities and counties have exercised their right to ban ATCs altogether.

Medicinal Marijuana Qualifying Conditions

Under the Medicinal Marijuana Program (MMP), a physician must certify that a patient has an approved debilitating medical condition. There is a $100 fee for each patient and/or caregiver. The registration period is valid for 2 years.

Approved debilitating medical conditions include:

• Amyotrophic lateral sclerosis
• Anxiety
• Cancer
• Chronic Pain
• Dysmenorrhea
• Glaucoma
• Inflammatory bowel disease, including Crohn’s disease
• Intractable skeletal spasticity
• Migraine
• Multiple sclerosis
• Muscular dystrophy
• Opioid Use Disorder
• Positive status for Human Immunodeficiency Virus (HIV) and Acquired Deficiency Syndrome (AIDS)
• Post-Traumatic Stress Disorder (PTSD)
• Seizure disorder, including epilepsy
• Terminal illness with less than 12 months to live
• Tourette Syndrome
• Opioid use disorder (requires medication-assisted therapy (MAT))

New Jersey Marijuana History

In 2008, the New Jersey Compassionate Use Medical Marijuana Act was passed. On January 18 2010,Governor Jon S. Corzine signed SB119, also known as, New Jersey Compassionate Use Medical Marijuana Act (CUMMA), which allows ill patients access to medical marijuana with a doctor's recommendation. The passage of this legislation was the culmination of five years of advocacy by Drug Policy Alliance, local organizations, patient and family advocates, and other supporters.

The New Jersey Department of Health adopted rules for the program in November 2011. The first patient registrations were accepted in August 2012, and the first Alternative Treatment Center opened in December 2012. Since then, there have been several amendments to the program, all aimed at expanding access to qualifying patients and primary caregivers.

In January 2018, Executive Order #6 outlined the intent of Governor Philip Murphy to expand and streamline the entire program; in March, additional conditions were added; and in June 2018, rule changes were proposed. In July 2018, a Request for Applications was released by the state in accordance with these updates to the State of New Jersey Department of Health Medical Marijuana Program.

According to New Jersey’s Medicinal Marijuana Biennial Report published April 2019, there are 1.5 million people per open dispensary in New Jersey, compared to the average population per dispensary in other states was around 100,000 people per dispensary. Ideally, New Jersey would have 90 medical dispensaries to serve the demand and population. This indicates a high need for additional dispensary sites in New Jersey.

The 2019 Marijuana Business Factbook projects the New Jersey Medicinal Marijuana market will reach $95 million-$120 million in sales, up from $50 million-$60 million in 2018. With a population of approximately nine million, New Jersey is estimated to generate $317 million in legal medical cannabis sales by 2022, according to Arcview Market Research. As of 2019, the state’s 6 ATCs serve an estimated 40,000 patients.

As of July 2019, a total of 51,000 patients, 2,000 caregivers and 1,000 doctors are participating in the program. The Department is no longer accepting ATC Applications as of August 2019 for dispensing, cultivation, and vertically integrated permits. May 2019, New Jersey expanded its hemp law to allow more cultivation and derivatives such as CBD to go in foods and cosmetics.