Massive Expansion of the Medicinal Marijuana Program in New Jersey

7.17.2019

On July 1, 2019, the New Jersey Department of Health (“NJDOH”) released a new notice of a Request for Applications (“RFA”) for up to 24 additional Alternative Treatment Centers (“ATCs”) in the State of New Jersey.  As of July 15, 2019, the permit application forms for ATCs and additional instructions will be available at https://www.nj.gov/health/medicalmarijuana.  Applications for dispensary endorsements must be submitted to the NJDOH by 3:00 p.m. on Wednesday, August 21, 2019.  Applications for cultivation endorsements must be submitted to the NJDOH by 3:00 pm on Thursday, August 22, 2019.

In total, the NJDOH will seek up to 4 vertically integrated permits, up to 5 cultivation endorsements, and up to 15 dispensary endorsements. The numbers of permit endorsements/permits in each region are expected to be broken up as follows:

Northern Region

Cultivation endorsements: 2
Dispensary endorsements: 5
Vertically integrated permits*: 1

Central Region

Cultivation endorsements: 2
Dispensary endorsements: 5
Vertically integrated permits*: 1

Southern Region

Cultivation endorsements: 1
Dispensary endorsements: 5
Vertically integrated permits*: 1

The fourth vertically integrated permit shall be provided to the region determined during the award process based on overall score and patients need at the time of the award.  Such determination shall be made by the NJDOH.

*Each vertically integrated permits includes 3 endorsements:  1 cultivation endorsement, 1 manufacturing endorsement and 1 dispensing endorsement.

In order to provide for opportunities for different sized businesses to participate in the RFA, the NJDOH will seek to issue cultivation endorsements in the following tiers of canopy size:

  • up to 5,000 square feet: up to 1 cultivation endorsement
  • 5,001 square feet to 20,000 square feet: up to 2 cultivation endorsements
  • 20,001 square feet to 30,000 square feet: up to 2 cultivation endorsements

The NJDOH will seek applications from both for-profit and non-profit entities.

Entities may submit a maximum of three total permit endorsement applications as part of this RFA but the submission cannot be in the same region.  A separate application is needed for each endorsement; however, if you would like to apply to obtain for a vertically integrated permit, you may submit one application because all endorsements will be located within the same region.   Additionally, applicants cannot submit for both vertically integrated permits and individual endorsements.   No applicant shall be awarded more than one permit pursuant to this RFA.

Current ATC permit holders (including awardees from December 2018) are not eligible to participate in this RFA.

Each application shall be accompanied by an application fee, in two payments made payable to the Treasurer, State of New Jersey, one in the amount of $18,000 (refundable) and one in the amount of $2,000 (non-refundable).  For unsuccessful applicants, the NJDOH will destroy the check for $18,000 once award decisions are issued.

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