New Jersey medical marijuana, already a multi-million-dollar industry, is primed for explosive growth. But first, the New Jersey Department of Health (DOH) must expand available licenses to grow and distribute medical marijuana. In order to fairly distribute such licenses, the DOH employs a regimented application process, offering a limited number of licenses and creating a highly competitive environment. Unfortunately for medical patients and businesses alike, the latest license round has grinded to a halt after litigation over a technical glitch during the application submission process.
2019 Requests for Applications and the Glitch
Most recently, the DOH solicited applications from July 1 to August 22, 2019, for permits to operate dispensary, cultivation, and manufacturing operations. The DOH received 196 applications for up to 24 licenses. Eight licenses are available in each of the Northern and Central regions of the state, seven are available in the Southern region, and one non-regional “at-large” license exists. Available are fifteen licenses for dispensaries, five for cultivation sites, and four for Vertically Integrated Alternative Treatment Centers (dispensing, cultivation, and manufacturing).
But, now almost a year later no licenses have been awarded because a number of applicants petitioned the courts after their applications were allegedly denied due to a technical glitch. During the submission process and electronic transmission of applications, the PDF documents supplied by approximately fifteen applicants, including both small and large operations, in support of their applications were corrupted somewhere during their electronic transport, rendering them impossible to open. As a result, the DOH denied those applications as untimely, stating that because the PDFs could not be opened, the applications were incomplete.
Stay of Application Process Granted
After exhausting their DOH appeals, the applicants took to the courts. The denied applicants argued their interests would be materially harmed if the process continued without consideration of their applications and requested a stay until the alleged glitch could be remedied.