How to Open a Marijuana Dispensary in Massachusetts

Marijuana Laws

Federal law makes all marijuana illegal on a national level, but states can determine their own laws for decriminalization or legalizing marijuana. Massachusetts laws include:

• “Question 3” in 2012 created a medical marijuana program for residents.
• Chapter 369 states the compliance factors and regulations a business must follow.
• Section 935 CMR 500.00 covers adult use of marijuana.
• Section 935 CMR 501.00 covers medical marijuana use.
• Section 935 CMR 502.00 covers marijuana operations.

Customer Regulations

• Customers must be 21 years or older.
• Customers must have a government-issued current ID or passport.
• State-issued patient permits for medicinal marijuana are required for all medical sales.

Marijuana Sale Regulations

The state requires tracking of all sales and has limits to the marijuana products or amounts a retail employee can sell to a customer in one day:

• One ounce of cannabis – while customers can have up to 10 ounces of cannabis at home, they can only purchase one ounce a day from a store
• Six plants – customers can have up to six plants per person at home but can only purchase six plants at a time

Customers cannot smoke, eat, or drink alcohol in the dispensary.

Permits and Licensing

The following licenses must be renewed each year. The application fees are only paid one time if you are approved. If you are denied, you must pay the fee again.

Registered Marijuana Dispensary (RMD):

• Application fee: $1,500
• Management and operation profile: $30,000

Retail store or dispensaries:

• Application fee: $300
• License for retail store: $5,000

Cultivation businesses:

• Application fee: $100-$600
• License for cultivator: $625-$12,500

Manufacturing businesses:

• Application fee: $300
• License for marijuana manufacturing: $5,000

Taxes

The Massachusetts Department of Revenue collects retail tax on marijuana sales as of 2018.

Local Market Competition

Dispensaries are opening quickly in Massachusetts and the state government can cap the number of new licenses at any time. Move quickly to create your business before the application process is paused by the government. You may also want to consider home delivery of medicinal marijuana products to give your business an edge.

Dispensaries can be very profitable once they are up and running. It is estimated that most dispensaries make upwards of $50,000 and can have profits in the millions over time.

You can see the number of local dispensaries by county on the Cannabis Control Commission map.

Cost to Open a Dispensary in Massachusetts

Startup costs are estimated from $325,000 to $1.13 million, according to Forbes.

Taking Marijuana Across State Lines

You cannot transport marijuana or marijuana products across state lines without business licenses and permits and a trained employee driver. If you do not follow the regulations, you can face federal charges.

Advertising Regulations

• Marketing must not “jeopardize public health” – this often means no marketing or samples programs near minors or child-related businesses
• The CCC allows the use of company brand and logos on marijuana products
• Packaging and signs cannot use medical symbols, images of marijuana or marijuana-related items.
• Slang or “everyday” terms for marijuana, such as weed, are banned
• Displays for marijuana and products must be clear

Packaging and Label Regulations

There are many nuanced packaging and labeling laws you need to observe for your products. The full list is online and includes regulations from the CCC such as:

• Warnings about impairment, habit-forming risks, driving or operating machinery restrictions, health risks, risks involving use while pregnancy, and the 21-year-old age limit must be listed on all marijuana products.
• Must have child-resistant packaging
• Cannot have packaging that appeals to minors
• Packaging must indicate multiple servings within the package
• Must list a statement saying the product is not analyzed or approved by the Food and Drug Administration (FDA)

Government Agencies and Cannabis Organizations

• Cannabis Control Commission (CCC) – recreational marijuana regulations
  Phone: 617-701-8400
  
• Bureau of Health Care Safety and Quality (BHCSQ) – medical marijuana regulations and programs
  Phone: 617-753-8000
  
• Medical Use Marijuana Program
  Phone: 833-869-6820