It is no secret that the demand for medical cannabis in New Jersey has grown exponentially since Governor Phil Murphy took office in January 2018. One of his first actions, Executive Order 6, required a complete review and overhaul of the state's medical cannabis policy and operations, leading to a number of regulatory actions. The governor also signed into law the Jake Honig Compassionate Use Medical Cannabis Act (P.L. 2019, c. 153). In their totality, these steps greatly expanded legal access to medical cannabis.

While the patient demand has increased by 300%, there has been a significant lag in new vertically integrated and stand-alone cultivating, processing, and dispensing facilities becoming operational. New Jersey voters will also be deciding this November whether to authorize cannabis for adult use, which, if approved, would present the need for even larger industry expansion.

The potential for rapid development in the New Jersey cannabis industry has many cannabis entities, investors, and entrepreneurs considering ways to get head starts on their potential competition. One of the first questions any potential licensee must address is, "Where will the business be located?" This article will look at some of the ways to answer that question and how those answers will be impacted by New Jersey's complex environmental and land use laws.

The 'What' and 'Where' of Site Selection

Site control is paramount when considering any type of cannabis facility. The most recent New Jersey Department of Health Request for Applications (RFA) in 2019 made evidence of site control and support of the local community mandatory elements of the application process, which required proof of lease or ownership, approval of the entity by the local governing body, and either confirmation by the town or analysis supplied by the applicant that the location chosen is in compliance with all local codes and ordinances and outside of a drug-free school zone. Those with sites already in possession were well-positioned to respond.