State Medical Marijuana Laws To Know for Your Business
By Amber Sheppard, Esq. | Legally reviewed by Amber Sheppard, Esq. | Last reviewed May 02, 2024
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Medical marijuana entrepreneurs face the same challenges as any typical business owner. They have to consider things like marketing, logistics, and financing. To make things even more complicated, each state has different rules and costs for setting up a medical cannabis business.
It's important to research state and local regulations as well as zoning policies. Medical marijuana businesses may also face challenges getting startup funding from traditional banking institutions.
Each state has its own requirements for the cannabis industry. This includes rules related to:
- Medical cannabis
- Cannabis products
- CBD oil
- Tetrahydrocannabinol (THC) levels
- Cannabis programs
- Medical ID cards
- Marijuana legalization
If you're considering opening a medical marijuana business like a dispensary, you'll deal with plenty of legal hurdles.
You should make sure to know the cannabis laws of your state. Cannabis laws can be criminal, regulatory, and financial. Here are some frequently asked questions for medical cannabis laws by state.
Medical Marijuana Laws at a Glance
This article and the chart below cover the relevant laws related to dispensaries in states that allow medical marijuana. This includes the legal sale of medical marijuana and adult medical marijuana use. State adult-use cannabis and regulations for personal use are available at Setting Up a Legal Marijuana Business.
Keep in mind that marijuana remains a Schedule I controlled substance under the federal Controlled Substances Act (CSA). As a result, states carefully record all state users and physicians or healthcare practitioners who recommend it. As marijuana remains illegal at the federal level, most states prohibit “prescriptions" but allow for it as part of “treatment".
State | Medical Marijuana Business Regulations |
---|---|
Alaska | Statute(s): Alaska Statutes Section 17.38.010, et seq. Alaska Administrative Code for Marijuana Regulations (3 AAC 306) Dispensaries Authorized: Yes Agency Administering Licenses: Alcohol and Marijuana Control Office Licenses Available:
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Arizona | Statute(s): Arizona Revised Statutes Section 36-2806, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Arizona Department of Health Services (ADHS) Licenses Available:
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Arkansas | Statute(s): Arkansas Constitution of 1874 Amendment 98, Section 1, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Arkansas Medical Marijuana Commission Licenses Available: Relevant Regulations:
|
California | Statute(s): California Business & Professions Code Sections 26000, et seq. Dispensaries Authorized: Yes Licenses Available:
Relevant Regulations:
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Colorado | Statute(s): Colorado Revised Statutes Section 18-18-406.3 and Section 25-15-106; Colorado Constitution of 1876 Article XVIII Section 14 Dispensaries Authorized: Yes Agency Administering Licenses: Colorado Department of Revenue, Marijuana Enforcement Division (MED) Licenses Available:
Relevant Regulations:
|
Connecticut | Statute(s): Connecticut General Statutes Section 21a-408h and Section 21a-408i Dispensaries Authorized: Yes Agency Administering Licenses: Connecticut Department of Consumer Protection Licenses Available:
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Delaware | Statute(s): Delaware Code Title 16 Section 4901A, et seq., 2023 152nd General Assembly Delaware Marijuana Control Act, HB 1, and 2023 152nd General Assembly Delaware Marijuana Control Act, HB 2 Dispensaries Authorized: Yes Agency Administering Licenses: Delaware Health and Social Services, Division of Public Health, and Office of the Marijuana Commissioner (OMC) (recreational) Licenses Available: Compassion center license is currently available. Recreational licenses will be available in September 2024 for social equity, microbusiness, and open licenses. Open licenses include cultivation, manufacturing, retail, and testing centers. Relevant Regulations:
|
District of Columbia | Statute(s): District of Columbia Code Division I, Section 7-1671.01, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: District of Columbia Department of Health (DOH) in the Alcoholic Beverage and Cannabis Administration Licenses Available:
|
Florida | Statute(s): Florida Statutes Title XXIX, Public Health Section 381.986 Dispensaries Authorized: Yes Agency Administering Licenses: Office of Medical Marijuana Use Licenses Available: Only medical marijuana treatment centers (MMTC). However, the treatment centers must receive authorizations for (1) cultivation, (2) processing and (3) dispensing. Relevant Regulations:
|
Hawaii | Statute(s): Hawaii Revised Statutes Division 1 Chapter 329D-1, et seq, and Chapter 328G (hemp processing). Hawaii Administrative Rules Chapter 11-37 and Chapter 11-850 (amended 2023) Dispensaries Authorized: Yes Agency Administering Licenses: Hawaii Department of Health (DOH) Licenses Available:
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Illinois | Statute(s): Illinois Statutes Chapter 410 Section 130/1, et seq., known as the Cannabis Regulation Tax Act Dispensaries Authorized: Yes Agency Administering Licenses: Illinois Department of Public Health (IDFPR) for dispensaries and Illinois Department of Agriculture for cultivation centers. Licenses Available:
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Louisiana | Statute(s): Louisiana Revised Statutes 40:1046, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Louisiana Department of Health Licenses Available:
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Maine | Statute(s): Maine Revised Statutes Title 22 Section 2421, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Maine Department of Health and Human Services, Division of Public Health Systems Licenses Available:
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Maryland | Statute(s): Maryland Code, Health-General Section 13-3301, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Maryland Medical Cannabis Commission (MMCC) Licenses: 179 licenses were awarded as of December 2023 during a 30-day application period:
|
Massachusetts | Statute(s): An Act for the Humanitarian Medical Use of Marijuana Dispensaries Authorized: Yes Agency Administering Licenses: Massachusetts Department of Public Health (DPH) through the Massachusetts Cannabis Control Commission Licenses Available:
|
Michigan | Statute(s): Michigan Compiled Laws Section 333.26421, et seq. (Medical Marihuana Facilities Licensing Act (MMFLA)) and Marihuana Regulatory Agency. Dispensaries Authorized: Yes Agency Administering Licenses: Michigan Department of Licensing and Regulatory Affairs (LARA) and Cannabis Regulatory Agency. Licenses Available: Relevant Regulations: The Bureau of Medical Marihuana Regulation is responsible for overseeing medical marihuana and is composed of the Medical Marihuana Program and the Facility Licensing Division. There is a two-step application process for medical marijuana facility licensing: (1) pre-qualification and (2) license qualification. No excise tax, but adult-use marijuana has a 10% excise tax. |
Minnesota | Statute(s): Minnesota Statutes Health Section 152.22, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Minnesota Department of Health (DOH), but the Office of Cannabis Management (OCM) takes over licensing and regulation on March 1, 2025. Licenses Available: Types of cannabis business licenses available starting March 1, 2025:
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Mississippi | Statute(s): Mississippi Code 41-29-136, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Mississippi Medical Cannabis Program for patient cards, but Mississippi Department of Revenue for business licenses. Licenses Available:
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Montana | Statute(s): Montana Code Annotated Section 50-46-301, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Cannabis Control Division Licenses Available: Relevant Regulations:
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Nevada | Statute(s): Nevada Revised Statutes Title 40 Section 453A.010, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Cannabis Compliance Board Licenses Available:
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New Hampshire | Statute(s): New Hampshire Revised Statutes Title X, Public Health Chapter 126-X Dispensaries Authorized: Yes Agency Administering Licenses: New Hampshire Department of Health and Human Services (DHHS) Licenses Available: Alternative treatment centers Relevant Regulations:
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New Jersey | Statute(s): New Jersey Statutes 24 Section 6I-1, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: New Jersey Department of Health (DOH) through New Jersey Cannabis Regulatory Commission Licenses Available:
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New Mexico | Statute(s): Lynn and Erin Compassionate Use Act, 26-2B-1 et seq. NMSA 1978 Dispensaries Authorized: Yes Agency Administering Licenses: New Mexico Department of Public Health (DPH) Licenses Available: See below. Relevant Regulations:
|
New York | Statute(s): New York Consolidated Laws, Public Health Law Section 3306, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: New York Department of Health Licenses Available:
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North Dakota | Statute(s): North Dakota Century Code Section 19-24-01, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: North Dakota Department of Health: Division of Medical Marijuana Licenses Available: See below. Relevant Regulations: Compassion centers are dispensaries or marijuana grower/manufacturer facilities. The law allows for up to two manufacturing facilities and up to 8 dispensaries, and the application period is currently closed. |
Oregon | Statute(s): Oregon Revised Statutes Title 37 Section 475B.400, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Oregon Health Authority: Medical Marijuana Program Licenses Available:
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Rhode Island | Statute(s): Rhode Island General Laws Section 21-28.6-1, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Rhode Island Department of Business Regulation Licenses Available:
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Vermont | Statute(s): Vermont Statutes Title 18 Section 4471, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Vermont Department of Public Safety: Vermont Marijuana Registry (VMR). The Cannabis Control Board was created in 2020 by Act 164. Licenses Available: Medical cannabis dispensary Relevant Regulations:
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Washington | Statute(s): Washington Revised Code Section 69.51A.005, et seq. Dispensaries Authorized: Retail providers may sell medical cannabis. Agency Administering Licenses: Washington State Liquor and Cannabis Board Licenses Available: Medical cannabis-endorsed retail Relevant Regulations:
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Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Related Resources
For an in-depth look at medical cannabis and cannabis industry business issues, review these FindLaw articles:
- Marijuana and Other Highly Regulated Businesses
- Details on State Marijuana Laws
- How to Get Financing for a Marijuana Business
- Marijuana Business: Licenses, Permits, and Planning
- Legal Marijuana and Workplace Drug Testing
Talk to a Medical Cannabis Law Attorney
The increasing number of jurisdictions legalizing the use of marijuana for medicinal purposes expands treatment options for patients. It also opens up greater business opportunities.
The changing state of the law can make things a little challenging for businesses trying to navigate them, even in states where medical cannabis is legal. Reach out to an experienced cannabis business law attorney in your area to help you through the regulations, financing, and startup without stress.
Can I Solve This on My Own or Do I Need an Attorney?
Cannabis is a complex area of law. Start by learning what you need to form and operate a cannabis business:
Then, protect your rights by calling a business lawyer familiar with cannabis laws. Many attorneys offer free consultations.
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DIY Forms for Cannabis Business
Restrictive federal laws and ever-changing state laws make the marijuana industry a dynamic environment for cannabis business owners. Before you open a cannabis business, make sure it is legal in your state, and follow your state laws. Once you decide on an LLC, S-corp, or C-corp business, you can register your business entity online using DIY business formation forms.