Interested in starting your own cannabis business or expanding your medical marijuana dispensary to include recreational marijuana? Because the industry is so new, laws and regulations are constantly changing, making it vital for you to stay on top of these changes and to know how they affect your application and later, your business. Many states will award a limited number of licenses during the first few years of their program, and you may only have one chance to apply.
The process of obtaining a cannabis business license varies by state, with some accepting applications online, some requiring hard copies, and some allowing either. Different business types often require different forms or may have different application windows. Understanding the requirements for your state is the first step to starting a successful cannabis business.
Here are a few things to keep in mind for each state:
Alaska
Alaska’s application for a cannabis license is done online, with supplemental documents for each business type, instructions, and training videos included on the government website. The control board processes applications year round and addresses license applications at its regularly scheduled meetings throughout the year.California
In California, the Bureau of Cannabis Control is the lead agency in regulating commercial cannabis licenses and is currently accepting applications through its online portal. New users must create an account before applying, and the website contains the application forms along with instructions for completing the application, video tutorials, and an e-learning portal to help business owners better understand the process.Colorado
In Colorado, the licensing requirements can be viewed online but the application must be submitted in person or by mail to their Lakewood office. Applicants must also apply for the State tax license for their business type and must check with local authorities where they plan to operate if retail marijuana businesses are allowed to operate within their jurisdiction.District of Columbia
While voters passed an initiative in 2014 to legalize recreational marijuana, the District of Columbia does not allow for the licensing of retail marijuana establishments or a system to regulate and tax marijuana products. Medical marijuana has been legal since 1998, however the department of health is currently closed to new applications and will announce if or when they reopen the process. The last round of applications were accepted in late 2017 and reviewed in 2018.Massachusetts
The Commonwealth of Massachusetts began its medical marijuana program in 2012 and followed with recreational program in 2016. Both programs are now run by the same organization and are currently accepting applications for retail, manufacturer, cultivator, craft marijuana cultivator cooperative, and independent testing laboratory.Maine
The state of Maine is currently in the process of establishing a system to regulate marijuana for recreational use. The application process for medical marijuana license is currently closed.Michigan
A proposal was passed by voters on November 6, 2018, to legalize and regulate recreational marijuana for those over the age of 21. Applications for licenses must begin to be accepted within 12 months of the legislation, but the state has not set any dates for when it will begin this process. Michigan has had a medical marijuana program since 2008 and remains actively issuing licenses. Online and paper applications can be found on the Michigan government website, along with the recently updated rules for medical marijuana facilities that began in late 2018.Nevada
The state of Nevada began with an early start program from July through the end of 2017 in which it accepted applications from operational medical marijuana establishments in good standing. The regular program began in 2018 for other existing medical marijuana businesses, after which it tentatively planned to open the process to those not holding a medical marijuana certificate.Oregon
The state of Oregon began a temporary pause of recreational marijuana license applications on June 15, 2018, stating that it would continue to accept applications but would not begin processing new ones until it caught up with its nine month backlog of applications. A specific date was not given for when it would begin processing application submitted after the announcement.Vermont
The state of Vermont has legalized the possession and use of recreational marijuana but does not yet have a system in place to regulate retail production and sale. The state is not currently accepting applications for new medical marijuana licenses.Washington
The state of Washington is not currently accepting applications for retailer, processor, or producer licenses and has no plans to reopen the window at this time. For other license types including transportation and research, the state accepts applications through its online portal or by mail.