Medical marijuana NJ: Strict rules and $20k fee, new Central Jersey locations

Mike Davis | Asbury Park Press

The state plan announced Monday to double the number of medical marijuana dispensaries in New Jersey, including basing two more in central Jersey, offers a glimpse at the cutthroat process awaiting potential operators looking to delve into the legal weed business.

Gov. Phil Murphy announced that the state Department of Health would begin accepting applications to operate one of six new dispensaries in the New Jersey medical marijuana program, doubling the number of "alternative treatment centers" already in operation.

“We look forward to the opening of six new dispensaries so we can ensure that all qualifying patients who want access to medicinal marijuana can have it,’’ Murphy said in a statement. "We have seen the addition of 10,000 new patients. Accordingly, we have to expand the number of businesses who are growing product and serving patients.”

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New Jersey medical marijuana dispensary operators would be required to go beyond simply running a cash register. As with the existing six dispensaries, the new locations would handle virtually every aspect of the trade.

The winning operators would be in charge of growing cannabis plants, manufacturing it into various consumable forms of marijuana — such as raw flower, oils and edibles — and selling it at the dispensary.

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Applications will be available Aug. 1 on the Department of Health website. They must be submitted by Aug. 31, and winning operators will be announced on Nov. 1. The complete Request for Applications is available here.

The six current medical marijuana dispensaries in New Jersey are:

Breakwater Alternative Treatment Center (Cranbury)

Compassionate Care Founation (Egg Harbor)

Curaleaf NJ (Bellmawr)

Garden State Dispensary (Woodbridge)

Greenleaf Compassion Center (Montclair)

Harmony Foundation (Secaucus)

The announcement of new medical marijuana dispensaries comes as the push for marijuana legalization in New Jersey has largely slowed down. While Murphy and some top legislative Democrats are in favor of legal weed for recreational purposes, they have faced considerable resistance from both Republicans and Democrats.

Attempts to pass a marijuana legalization bill during last month's budget battle stalled without any bill hitting the Senate or Assembly floor for a vote.

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Here are three major requirements expected of anyone applying to operate one of the new medical marijuana dispensaries in New Jersey:

1. Be ready to hit the ground running

Every application will be graded on a 1,000-point scale, scoring applicants on everything from their experience with marijuana and "knowledge of botany" to record-keeping, employee training and commitment to clinical research of medical marijuana.

The most heavily weighted section of the Department of Health's scoring rubric — 300 points, or 30 percent — is operations and whether applicants can "ensure an adequate supply of medicinal marijuana to qualified patients."

According to the Health Department, there are more than 25,000 registered patients with a New Jersey medical marijuana card — an increase of over 7,000 since March. With only six medical marijuana dispensaries, that's led to a major supply issue.

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“As we strive to make the program more responsive to the needs of patients, caregivers and alternative treatment centers, we recognize the need to grow the industry and create more options for patients,” Department of Health Commissioner Shereef Elnahal said.

As part of their application, potential medical marijuana dispensary operators must provide details about their:

plans to scale operations and grow more medical marijuana to meet demand;

summary of specific products (such as raw flower or cannabis-infused items), along with ingredient and dosing information;

examples of patient and employee education and counseling materials; and

floor plans for all growing, manufacturing and dispensary operations.

2. Open up the checkbook

As with anything else in New Jersey, getting into the medical marijuana business isn't cheap. Simply submitting the application has a hefty price tag, with the Department of Health requesting a $20,000 application fee.

Unsuccessful applicants will receive $18,000 back, essentially paying $2,000 for the privilege of having state regulators review their paperwork.

In addition to the fee, potential medical marijuana dispensary operators will have to submit personal financial histories of any partners and certified financial statements, including balance sheets, income statements and statement of cash flow.

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3. Confirmed location

Applicants will be required to provide proof that they have a location planned and paid for, along with written approval from whatever municipality they choose to locate their medical marijuana dispensary. The six new dispensaries will be divided among the northern, central and southern parts of the state, with up to two dispensaries in each area.

If there's no written approval, applicants must provide a plan detailing how they'll get such approval before Nov. 1.

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Monmouth and Ocean counties are considered part of central New Jersey, according to the state, but finding a suitable location may pose a problem: More than a dozen towns at the Shore have either taken or plan to take action banning marijuana sales, including medical marijuana dispensaries.

For most Shore residents, the closest medical marjiuana dispensary is Garden State Dispensary in Woodbridge.

Mike Davis; @byMikeDavis: 732-643-4223; mdavis@gannettnj.com