In New Jersey, there also have been unsuccessful challenges to the department’s initial licensing application process. In re Inst. for Health Research & Abunda Life Ctr., 2013 WL 4458982 (N.J. Super. Ct. App. Div. Aug. 22, 2013), involved two low-scoring applicants—Institute for Health Research and Abunda Life Center, and Abatin Wellness Center. They challenged the Department of Health and Senior Services’ (“DHSS[’s]”) issuance of licenses prior to the formal adoption of the regulations governing applications. A third, high-scoring applicant, Garden State Medical Marijuana Associates, Inc. (“GSMMA”), challenged the use of geographical diversity as a basis to deny its application in favor of the next ranked applicant. The court found that the DHSS acted within its statutory authority that (1) permitted it to pursue granting licenses prior to the formal adoption of regulations; and (2) directed it to ensure sufficient access to medical marijuana across New Jersey. Further, the court specifically declined to address GSMMA’s argument that it was better positioned to serve more people in New Jersey than its successful competitor, because doing so would require the court to substitute its own judgment for the DHSS’s findings on that issue.
Nat. Med., Inc. v. New Jersey Dep’t of Health & Senior Servs., 428 N.J. Super. 259 (App. Div. 2012), is similar. Natural Medical, Inc., a for-profit entity, challenged the limit of the initial license grant to six non-profit entities. The court determined that such limitation met the statutorily-required minimum number of licenses and type of facilities and was a reasonable approach to the initial grant of licenses.