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A court has put review of medical marijuana business licenses on hold yet again after a rejected applicant seeking to open a business sued, saying the state Health Department wrongfully evaluated its application.

Progressive Treatment Solutions of New Jersey filed for a stay after the health department rejected its application to open a dispensary and cultivation center in Edison on Nov. 18. A two-judge appellate court panel granted an emergent motion for a stay Jan. 6.

The health department opened a request for new applications last summer, seeking to license as many as 24 pot businesses around the state. Nearly 200 applied for the slots, but the department rejected 51 after an initial review for either corrupt files or incomplete applications.

Delays to the process leave patients with only seven alternative treatment centers to service them as they wait for five others licensed in late 2018 to open. That has led to shortages of medical pot, as well as long lines and commutes to dispensaries.

In its filing, Progressive said it had reached “prospective approval agreement” with Edison, and also attached multiple letters indicating community support. But the applicant said the health department “erroneously disqualified" the application despite having “the complete application package providing all the mandatory requested information.”

In denying an initial request for a stay last month, the health department said it had not received written verification from Progressive of its agreement with Edison.

“I find that staying the review of the ATC applications will cause [medical marijuana program] patients harm,” Judith Persichilli, the commissioner of the department, wrote in the denial.

The next matter in the case will be scheduled once a briefing is completed.

Another appeal of the licensing process, filed by several groups whose applications the health department rejected due to corrupted PDF files, had already halted the awards for several months.

The remaining 150 applicants in the process have expressed frustration with the delays. Many have entered into property agreements that could fall apart as the licenses languish.

Joshua Bauchner, who represents several of the groups suing, has stressed that the health department could end the delays at any time by agreeing to review the rejected applicants and all of their documents.

Progressive Treatment Solutions and an attorney representing the group did not respond to requests for comment. Jeff Brown, assistant commissioner of the health department who oversees the medical marijuana program, declined to comment on pending litigation.

Amanda Hoover can be reached at ahoover@njadvancemedia.com. Follow her on Twitter @amandahoovernj. Find NJ.com on Facebook.

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