State Medical Marijuana Laws To Know for Your Business

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:

• Retail stores
• Cultivation facilities
• Testing facilities
• Manufacturing facilities

• Anyone with a direct or indirect financial interest must be a resident of Alaska.
• Cultivation facilities must file a monthly tax return and pay an excise tax.
• Cannabis testing facilities must adhere to laboratory compliance regulations.

Statute(s): Arizona Revised Statutes Section 36-2806, et seq.

Dispensaries Authorized: Yes

Agency Administering Licenses: Arizona Department of Health Services (ADHS)

Licenses Available:

• Marijuana establishments
• Marijuana testing facilities

• "Marijuana establishment" is an entity that is licensed by ADHS to operate a single retail location, a single off-site cultivation location, or a single off-site location.
• Before making a sale to a patient, the dispensary is responsible for verifying that the patient's medical marijuana card is valid.
• As of January 2024, only medical marijuana establishments that are not for profit can distribute and sell medical marijuana. This may change by 2025 with the addition of the recreational use of marijuana under the Smart and Safe Act.
• An entity that has the approval to grow marijuana in the state already has the state permit to operate a marijuana establishment facility or a marijuana dispensary. However, you must confirm with ADHS before doing so.
• Medical marijuana delivery is allowed. However, recreational use establishments must have a delivery license, which will be available by January 2025.
• A marijuana testing laboratory must be accredited by a national or international accreditation organization or a similar accrediting body as determined by the ADHS.
• No excise tax.

Statute(s): Arkansas Constitution of 1874 Amendment 98, Section 1, et seq.

Dispensaries Authorized: Yes

Agency Administering Licenses: Arkansas Medical Marijuana Commission

Licenses Available:

• Dispensaries
• Laboratories
• Cultivation facilities

• Dispensaries and cultivation facilities are subject to reasonable inspections by the Alcoholic Beverage Control Division.
• Records must be kept for the current year and three proceeding years.
• Cultivation facilities and dispensaries are required to have video surveillance and alarm systems.
• The state charges a 4% excise tax in addition to a 6.5% sales tax.

Statute(s): California Business & Professions Code Sections 26000, et seq.

Dispensaries Authorized: Yes

Licenses Available:

• Retailers
• Distributors
• Testing labs
• Microbusinesses
• Manufacturers
• Cultivators

• Bureau of Cannabis Control
• Manufactured Cannabis Safety Branch
• CalCannabis Cultivation Licensing

Relevant Regulations:

• Although there are three licensing authorities, the Bureau of Cannabis Control is the lead agency in developing regulations for adult-use and medical cannabis.
• Cannabis retailers and microbusinesses must register for a cannabis retailer excise permit and cannabis retailer license and collect a 15% excise tax from customers.
• Certain medical marijuana sales are exempt from sales and use tax.
• There is a 15% excise tax imposed upon purchasers of marijuana. As of 2022, there is no cultivation tax imposed on marijuana cultivators.
• As of 2023, distributors are no longer responsible for obtaining a cannabis tax permit or reporting and paying the cannabis excise tax for cannabis or cannabis products sold or transferred on or after January 1, 2023, to cannabis retailers.
• Purchases made for resale with a valid resale certificate are not subject to sales tax. California Department of Tax provides a Medical Cannabis Tax Guide for small business owners.

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:

• Medical marijuana center
• Medical marijuana optional premises cultivation
• Medical marijuana-infused product manufacturer
• Medical marijuana testing facility
• Medical marijuana transporter
• Medical marijuana operator
• Medical marijuana research and development facility or cultivation
• Hospitality marijuana business
• Retail marijuana business licenses

Relevant Regulations:

• 2024 Marijuana Enforcement Division legislative updates.
• While the Medical Marijuana Business License Application is the same for all license types, a separate application is required for each license.
• Owners of a Colorado marijuana business can be a business or an individual.
• A person planning to operate both a medical marijuana center and a retail marijuana store at the same location must also submit a combined use form.
• Licensees must get licenses from state and local (city or county) authorities to open their business.
• An applicant for a business license must also apply for a state tax license.
• 15% state excise tax on the first sale or transfer between a retail marijuana cultivation facility to a retail marijuana store or retail marijuana product manufacturing facility.

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:

• Disproportionately impacted area cultivator
• Retailer
• Micro cultivator
• Delivery service
• Hybrid retailer
• Product manufacturer
• Product packager
• Food and beverage
• Transporter

• Applications for dispensary and producer licenses are accepted on a periodic basis.
• All dispensaries and producers must submit a Request for Application (RFA) along with an initial application fee of $100 if applying for a dispensary license or $25,000 if applying for a producer license.
• Only licensed pharmacists are able to apply for and obtain a dispensary license.

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:

• Patients must be a Delaware resident.
• Recreational use license applications must submit a comprehensive business plan, including an annual budget and pro forma financial statements.
• Patients must register with a state-licensed, non-profit compassion center
• Compassion centers may not dispense more than three ounces of marijuana per patient in any 14-day period.

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:

• Courier
• Cultivation center
• Internet retailer
• Manufacturer
• Retailer
• Testing laboratory. 
• There are also medical cannabis business permits for a certification training provider.

• Applications for licenses are accepted on a periodic basis.
• Both non-profit and for-profit organizations are eligible to operate the dispensaries.
• Much of D.C. is federal land. Their laws do not change federal law.

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:

• Dispensing organizations are required to grow and process low-THC cannabis or medical cannabis within enclosed structures and in a room separate from other plants.
• Dispensing organizations are not permitted to dispense more than a 45-day supply of low-THC cannabis or medical cannabis to a patient.
• Dispensaries must verify that the patient has an active registration in the compassionate use registry.

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:

• Medical cannabis dispensary
• Hemp processing
• Medical cannabis testing facility

• Hawaii is not issuing additional licenses for medical cannabis at this time.
• Dispensary to dispensary sales are limited to 800 ounces every 30 days.
• Transportation requires two dispensary employees.
• Medical marijuana dispensaries must submit a declaration of their state and local licenses and permits with applications.
• An individual applicant must be a legal resident of Hawaii for not less than five years preceding the date of application and cannot have any felony convictions.

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:

• Medical marijuana dispensary
• Conditional adult-use dispensary
• Cultivation centers
• Craft growers
• Infusers
• Laboratories
• Transporters

• Medical marijuana dispensary licenses are subject to renewal.
• The social equity criteria lottery was held in 2023.
• There are currently 21 cultivation centers. The application period for cultivation centers is currently closed.
• Dispensary agents and principal officers must submit applications to IDFPR.
• No excise tax for medical marijuana.
• There is a cultivation tax of 7% on the sales price per ounce.
• The Cannabis Cultivation Privilege Tax lists other taxes for the cannabis businesses.

Statute(s): Louisiana Revised Statutes 40:1046, et seq.

Dispensaries Authorized: Yes

Agency Administering Licenses: Louisiana Department of Health

Licenses Available:

• Therapeutic marijuana laboratory
• Therapeutic medical marijuana pharmacy (dispensary)
• Therapeutic medical marijuana pharmacy satellites

• There are nine therapeutic medical marijuana pharmacies in the state.
• Applications for pharmacies and satellites are closed.
• No excise tax for therapeutic medical marijuana patients.

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:

• Product manufacturing license
• Cultivation facility
• Marijuana testing facility
• Marijuana store

• Six state licenses were issued: three cultivation, two marijuana stores, and one marijuana testing facility.
• There are five tiers available in a cultivation license.
• Marijuana stores can sell flowers, seeds, seedlings, immature plants, and other marijuana-based products.

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:

• 75 Standard Dispensaries distributed by county
• 16 Standard Growers distributed by region
• 32 Standard Processors distributed by region
• 24 Micro Growers distributed by region
• 24 Micro Processors distributed by region
• 8 Micro Dispensaries distributed by Region
• Applications for Edibles Kitchen Permits are now open

• Dispensaries are required to submit a quarterly report to MMCC, which includes the number of patients served, the county of residence of each patient, the medical condition for which the marijuana was recommended, and the type and amount of marijuana dispensed
• 9% excise tax

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:

• Medical marijuana treatment center (MMTC)
• Marijuana establishments (ME)

• Craft marijuana cooperative
• Cultivator (indoor or outdoor)
• Independent testing laboratory
• Marijuana courier
• Marijuana delivery operator
• Marijuana research facility
• Microbusiness
• Product manufacturer
• Retailer
• Social consumption establishment
• Standards laboratory
• Transporter
• Any other type of adult-use marijuana business

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:

• Medical facilities
• Adult-use establishments
• Hemp processing

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:

• Cannabis microbusiness
• Cannabis mezzobusiness
• Cannabis cultivator
• Cannabis manufacturer
• Cannabis retailer
• Cannabis wholesaler
• Cannabis transporter
• Cannabis testing facility
• Cannabis event organizer
• Cannabis delivery service
• Lower-potency hemp edible manufacturer
• Lower-potency hemp edible retailer
• Medical cannabis cultivator
• Medical cannabis processor
• Medical cannabis retailer
• Medical cannabis combination business

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:

• Dispensary
• Micro-cultivator
• Cultivator
• Microprocessors
• Processors
• Transporter

• Applications for licenses are available periodically.
• All medical cannabis employees or agents on the premises need a cannabis work permit.
• A licensed transporter must keep a transport manifest at all times during transport.
• 5% excise tax for medical marijuana upon the first sale by the cultivator.

Statute(s): Montana Code Annotated Section 50-46-301, et seq.

Dispensaries Authorized: Yes

Agency Administering Licenses: Cannabis Control Division

Licenses Available:

• Cultivator
• Manufacturer
• Dispensary
• Transporter
• Testing lab
• Combined-use licenses

• Applications for licenses are available periodically
• A licensed provider or dispensary is allowed to cultivate, manufacture, possess, sell, and transport marijuana
• 4% state tax for medical marijuana

Statute(s): Nevada Revised Statutes Title 40 Section 453A.010, et seq.

Dispensaries Authorized: Yes

Agency Administering Licenses: Cannabis Compliance Board

Licenses Available:

• Cultivation facility
• Distributor and transportation
• Product manufacturing facility
• Product testing facility
• Retail marijuana store

• The Department accepts marijuana license applications on a periodic basis.
• Dispensaries are able to sell medical marijuana to people who present a state or local government-issued medical marijuana card from another state.
• Transfers of licenses to new owners must be approved.

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:

• The Department has established 7 Alternative Treatment Centers (ATCs) - New Hampshire's term for dispensaries - and is not issuing additional medical marijuana business licenses.
• The state's non-profit alternative treatment centers have to be located more than one thousand (1,000) feet from schools or other drug-free zones and be staffed by employees over the age of 21 who have no felony convictions and who will be required to wear identification badges issued by the treatment center.
• There is no tax on medical marijuana sales in New Hampshire.

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:

• Alternative treatment center
• Cultivator
• Distribution
• Manufacturing
• Microbusiness
• Testing
• Delivery
• Wholesaler

• The state licenses businesses referred to as "Alternative Treatment Centers" (ATCs) for the production and distribution of medical marijuana.
• Seven ATCs have been licensed with 50 dispensary locations.
• The Department is not issuing additional licenses at this time.
• Patients can buy up to three ounces, and there is no medical marijuana excise tax.

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:

• In order to produce, distribute, and dispense medical marijuana, you must be a Licensed Non-Profit Producer (LNPP).
• The LNPP application period is closed. The Department is not currently accepting applications for producing and distributing medical marijuana.

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:

• Retail and microbusiness (nonprovisional)
• Adult use cultivator
• Adult use processor
• Adult use distributor
• Adult use retail dispensary
• Adult use microbusiness
• Adult-use conditional cultivator
• Adult use conditional processor
• Conditional adult-use retail dispensary
• Laboratories

• Only Registered Organizations can manufacture and dispense medical marijuana.
• The Department is not currently accepting applications to become a registered organization.
• Approved forms of medical cannabis include liquids and oil for vaporization or administration via inhaler as well as capsules to take orally.

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.

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:

• Dispensaries
• Processors
• Laboratories
• Producers
• Processors
• Retail

• A registered medical marijuana dispensary may sell limited recreational marijuana products (dried leaves and flowers, immature marijuana plants and seeds).
• Applications are accepted on a rolling basis.
• Employees of the licensed entities must be at least 21 years old and have a marijuana worker permit.

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:

• Medical marijuana laboratory
• Medical marijuana program
• Industrial hemp and CBD oil
• Hybrid cannabis cultivator license

• The state has seven dispensaries - called "compassion centers" - that are currently operating.
• Compassion centers must keep a log of visitors and ask for photo identification.
• Licenses for marijuana businesses are issued as the state determines the need. Only online applications can be submitted.

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:

• Dispensaries must be licensed non-profit entities.
• The Department has issued five dispensary registration certificates.
• The Department plans to announce an application period for a sixth dispensary once the number of registered patients reaches 7,000.

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:

• The Cannabis Patient Protection Act (RCW 69.51A) allowed medical cannabis to be sold with regulated recreational cannabis.
• The state requires marijuana businesses to hold a license as a producer, processor, or retailer of marijuana.
• Individuals must be at least 21 years old to purchase marijuana.