A recent decision from the New Jersey Superior Court Appellate Division may have significant implications for cannabis license applicants across the state who were denied a municipal Resolution of Support without explanation. The ruling clarifies that while municipalities retain discretion when deciding whether to support cannabis businesses, they must provide a discernible reason when denying a request for a Resolution of Support.
On March 3, 2026, the Appellate Division issued a published opinion in Higher Breed NJ LLC v. City of Burlington Common Council addressing whether a municipality can simply vote to deny an applicant's request for a Resolution of Support without providing any explanation for the decision. The Court concluded that a municipality may deny a Resolution of Support, but it must articulate a reason for doing so. Without a discernible rationale in the record, the denial may be considered arbitrary, capricious, or unreasonable and therefore subject to judicial review.
Resolutions of Support are a crucial component of the New Jersey cannabis licensing process. Applicants seeking licenses from the New Jersey Cannabis Regulatory Commission are required to demonstrate and submit a municipal Resolution of Support in order to apply for an annual license. This requirement is satisfied by obtaining a Resolution of Support from the governing body of the municipality where the proposed cannabis business will operate. As a result, municipal governing bodies play a significant gatekeeping role in determining whether cannabis entrepreneurs can proceed with an annual license application.
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