It is estimated that by 2017, 25% of the total U.S. population will reside in states that have already legalized recreational marijuana, with the current figure standing at 17 million people. However, different states have their own legislation governing the legalization of marijuana for both recreational use or medical use. State laws control the growth, sale, and the consumption of marijuana, although its still considered a federal crime if you are caught cultivating and sale of marijuana. Regardless, those venturing in marijuana business can save themselves a lot of trouble by closely adhering to the state and local rules governing cannabis investment opportunities.
Cannabis business license application will depend on both the nature of the business you are running and your area of operation. A good example is, someone looking to cultivate and sell marijuana for retail purposes will need different permits than someone looking to operate a medical marijuana business. Below are some of the licensing program approaches to regulation of marijuana business by different states.
1.Arizona
Here, the cannabis business license application requires that all marijuana growers who have a license to grow to operate a dispensary. Otherwise, licenses for both cultivation and distribution of marijuana are periodically reviewed.
2.Alaska
In Alaska, the state allows cultivation of both recreational and medical marijuana, but all cannabis business license application were not accepted until February of 2016. However, the laws governing marijuana is still under development.
3.California
No license for cultivation and distribution is provided in California and only collective caregivers and patients are allowed to transact marijuana business. This collective groups of caregivers and patients have to seek for operational license and all their transactions are subject to tax.
4.Colorado
People can obtain a license for both cultivation and distribution of cannabis and any person with over 2 ounces of marijuana has to become a business. They have to apply for medical marijuana business together with a state license. In Colorado, recreational marijuana licensing is separate from the medical one but basic licensing requirements are the same.
5.Connecticut
Depending on the number of registered cannabis users, only few growers and dispensaries are allowed to hold a license for marijuana transactions. These licenses are issued periodically and there no clear dates on the next issuance of permits.
6.Delaware
There is only one facility know as “First State Compassion Center”, in Delaware that has been licensed to operate all marijuana business.
7.Hawaii
Ther is no licensing going on here but interims rules of cannabis business license application are already underway with only 16 dispensaries expected to be licensed as the legal growers and distributors of marijuana.
8.Maryland
The application process for marijuana business is still ongoing with the draft regulations still pending.
9.New York
Here, new applicants can’t get licenses and it’s only those in the applicant shortlist that will be permitted to operate marijuana business. Although, there are few companies that will be tasked to manufacture and dispense marijuana in this state.
From the list above, it is evident that most states are cautious of issuing licenses to marijuana operators, with only a few of them
doing that. The challenges growers and dispensaries are experiencing are not only with the issuance of licenses but also the strict regulations and bottleneck application process that attracts high application fees. For states with stringent laws governing marijuana, all that can be done is to wait for authorities deliberations and maybe the end agreement will benefit both marijuana operators and the states at large.
