During this past summer, New Jersey decided to double the number of medical cannabis licenses from six to 12. Existing license holders were not eligible to apply for new licenses in this round. New applicants had essentially six weeks to compile a licensure application, file the required licensure fee and paperwork, and submit their no-more-than-300-page application. The application included various background checks, qualifications and submissions intended to show that the applicant had the necessary business knowledge, financial capability, and growing and distribution ability, as the licensure was for both growing cannabis and the distribution of medical cannabis.
Over 825 potential applicants arrived for a mandatory meeting of interested parties in June 2018, which ultimately resulted in 146 actual applications being filed on Aug. 31 (51 in southern New Jersey, 50 in northern New Jersey, and 45 in central New Jersey) for six available licenses. As of Aug. 1, there were over 28,500 approved medical cannabis patients in New Jersey, up from 10,000 in 2016.
Interestingly, the applications called for a tiebreaker, which indicates that site control of a leased or owned site and a letter from the applicable municipality showing support for the given use from the mayor or town council will be taken into consideration as a tiebreaker. This tiebreaker is what led some applicants to span the state, engage brokers or canvas the markets on their own, and attempt to line up and negotiate and sign leases for their sites. Licenses were to be granted with two grow and dispense licenses in the north, two in the central region, and two in the south, with winners announced in the beginning of November 2018.