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After years of having one of the more constrained medical marijuana programs in the country, New Jersey is on the cusp of an expansion that could add dozens of new businesses to the industry.

The state Department of Health on Monday revealed plans to license as many as 108 new medical marijuana businesses, adding to the 12 medical marijuana providers already approved by the state. Six of those businesses are licensed and operational, while the other six were selected last year but have not been licensed.

While this move signals strong intent from the administration of Gov. Phil Murphy to grow a program that has seen marijuana supply shortages and long lines for patients, it will likely still be months before any of these new businesses would be up and running.

This expansion effort could also be further complicated by an ongoing effort in the state Legislature to expand the medical marijuana program through that body. So far, lawmakers have been unable to do so, prompting the governor to use his executive authority to add businesses.

“We are at a point where patients just cannot wait any longer for easily accessible, affordable therapy," state Health Commissioner Shereef Elnahal said. "This request for applications allows for specialization of businesses to increase medical product in our state.”

The Health Department will start accepting applications for the new licenses on July 1 and will accept them through Aug. 15. The department did not say when it would announce the new licensees.

This is the first time the state will issue separate licenses for growers, processors and retailers. All six of the businesses already in operation are vertically integrated, meaning they all grow, process and sell marijuana in-house, as are the six providers selected last year.

Now it will be possible for a license holder to sell marijuana without also having to grow and process it.

#MedicalMarijuana patients in NJ can’t wait any longer for more accessible, affordable therapy.



Announcing a new RFA for:

✅ 24 cultivators

✅ 30 manufacturers

✅ 54 dispensaries



Up to 108 new endorsements are in play. Applications available 7/1. More: https://t.co/XupMSii6eR — Shereef Elnahal, MD (@ShereefElnahal) June 3, 2019

The Health Department will license as many as 38 marijuana businesses in the northern region of the state, up to 38 in the central region of the state and 32 in the southern region of the state. Of those 108 licenses, the DOH said it wants as many as 24 growers, 30 processors and 54 retailers.

Since Murphy, a Democrat, took office, the number of patients in New Jersey’s medical marijuana program has ballooned, from less than 17,000 to nearly 50,000.

Murphy said Tuesday this expansion will address the “rapidly growing patient need” for medical marijuana in New Jersey, making the program “more accessible to more patients” and ensure “a high-quality supply to meet demand” at lower prices.

“Our goal is to ensure a medical marijuana program that is as robust as it is compassionate,” the governor said at an unrelated news conference in Hackensack.

Murphy has made it a priority of his administration to add patients and grow the program, but so far he has only been able to modestly expand the number of providers.

One reason for that is he was waiting for the Legislature to pass a package of marijuana reform bills earlier this year. That package included marijuana legalization and expungement reform, which would allow people to clear old pot convictions from their records, on top of medical marijuana expansion.

But the Democratic-controlled Legislature couldn’t get it done at the end of March, prompting Murphy to pursue medical expansion on his own terms. But as the Health Department prepared to announce this expansion, the Legislature again picked up its medical marijuana bill.

The state Assembly approved the expansion bill two weeks ago and the Senate passed it last week, though the Senate made some tweaks that mean the plan has to get Assembly approval again before the bill would go to the governor for a signature.

Murphy’s team told NJ Advance Media that if the Legislature does pass a medical marijuana bill soon, this application process could be amended so that it would fit into the parameters of the bill. Another option could be speeding up the application process to avoid a conflict with the medical marijuana bill, should it pass the Legislature.

However, even if lawmakers don’t pass a bill, it’s unclear how quickly the businesses chosen in the process could be open. It’s been six months since the DOH picked the six new medical marijuana providers and those are still some ways off from opening.

In the meantime, New Jersey’s medical marijuana program will continue growing. It’s now at more than 47,000 patients and will hit 50,000 in the coming weeks.

EDITOR’S NOTE: A previous version of this story said that the Murphy administration would amend the application process if a medical marijuana bill passes the Legislature, but that is just one of the administration’s options.

NJ Advance Media staff writer Brent Johnson contributed to this story.

Payton Guion may be reached at PGuion@njadvancemedia.com. Follow him on Twitter @PaytonGuion.

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