A New Jersey medical cannabis license is worth $2.5 million as a tier one value, based on the Subjective Probability Model (SPM). The value of infrastructure, identified as tier two, would add 1.7X to cost. Tier three, the actual revenue element, was calculated at 1.8X sales or 40X earnings, whichever is greater. The criteria used for the evaluation as the SPM factor considers 75 variables from availability to economic projections.
History: The State of New Jersey legalized medical cannabis in 2010. The New Jersey Compassionate Use Medical Marijuana Act (MMP) authorizes approved physicians to disburse up to two ounces of medical marijuana to a registered patient during any 30-day period to treat numerous “debilitating medical conditions,” mainly where conventional treatments are ineffective or exacerbate a patient’s suffering. Alternative treatment centers (ATCs) must be licensed to dispense medical marijuana in New Jersey.
Conditions under MMC: According to the Compassionate Use Medical Marijuana Act, at least two ATCs must be licensed in the northern, central, and southern regions of the State. The statute mandates that the first two centers issued a permit in each region must be nonprofit entities; however, ATCs subsequently issued permits may be nonprofit or for-profit entities.
State requirements: The New Jersey Department of Health requires that entities seeking to obtain a medical marijuana dispensary license in New Jersey have a comprehensive business plan. In addition to traditional financial information, applicants must provide details regarding how they plan to track patient data, maintain security at the dispensary, and address the other unique concerns involved with dispensing marijuana. The specific documents that must be submitted include corporate governance documents, financial statements, and tax returns.
Applications: Applicants must also submit Personal Disclosure Forms, which require the provision of detailed employment, educational, family, and other personal information. Each ATC applicant must also undergo fingerprinting and submit to a criminal history record background check. The requirements apply to all owners, directors, officers, and employees.
How many ATCs are active? New Jersey’s sixth ATC recently got the green light to begin growing medical marijuana. According to the New Jersey Department of Health (NJDOH): “Once the initial six are open, the state will evaluate the program and determine whether or not there is a need for expansion.” If there is a determination to add ATCs, the NJDOH must publicize the expansion and provide the criteria and process for application.
Current available to AC licensing: At this time, the state is not accepting new applications.
Source material courtesy of Constitutional Law Report hhps://constitutionallawsreporter.com/2018/01/25/mdical-mariguana-license-nj/