Marijuana Business Magazine - January 2017

MARKET AT A GLANCE Main measure Senate Bill 119 Year passed 2010 Cannabis business regulations Very heavy. Only six dispensaries are allowed initially under state law, and the state health department will review the program every two years to determine whether more should be approved. Dispensaries undergo an intensive application and registration process and are subject to numerous regulations, including those covering recordkeeping, cultivation limits, security and hours of operations. Dispensaries must grow their own cannabis – separate, stand-alone wholesale cultivations operations are not allowed. The limits on allowable forms of marijuana are some of the most restrictive in the country. And the requirement that all products contain no more than 10% THC is considered overly restrictive and onerous. Patient registry Mandatory – patients must get a written recommendation from a doctor and register with one dispensary at a time (and may not purchase from the others) Sampling of state medical marijuana licensing fees Application: $20,000 License: $20,000 What to watch • Pro-cannabis candidate Phil Murphy, a Democrat, won New Jersey’s gubernatorial race in November, positioning the state to become the first in the nation to legalize adult-use can- nabis through the legislature. The Democrat-controlled legislature already has a legalization bill in the works, though it remains to be seen how soon the governor-elect could sign off on any adult-use measure. • New Jersey’s Medicinal Marijuana Review Panel gave final approval to five conditions that can be treated with MMJ – a number that fell far short of the 43 conditions the committee had recommended. The panel proposed adding anxiety, migraine, Tourette’s syndrome, chronic pain related to musculoskeletal disorders and chronic pain related to internal or- gans. The state’s health commissioner has up to 180 days to decide whether to approve the extra conditions. New Jersey New Jersey’s medical marijuana program grew more rapidly than anticipated in 2016, driven by a series of small changes and the addition of three new dispensaries in late 2015. Those factors gave patient counts a shot in the arm and drove down the state’s sky-high MMJ prices. But challenges remain, as restrictions on the types of MMJ products allowed to be sold may keep potential patients from leaving the black market. Also, the recent opening of the state’s sixth and final dispen- sary could prove to be a loss for the state’s five existing out- lets by way of reduced market share. January 2018 • Marijuana Business Magazine • 109