Upcoming States with Cannabis Business Opportunities

With 2020 being a ballot year and legislative sessions underway, states look to legalize medical and/or recreational cannabis. With cannabis legalization, comes the opportunity to open a cannabis business as most states will establish a legal dispensing system for cannabis access within the state. Learn more about the seventeen (17) states with opportunities to open cannabis businesses to cultivate, manufacture, transport and sell cannabis.

Arizona: The Arizona Dispensaries Association filed a ballot initiative called the “Smart and Safe Act” to appear on the 3 November 2020 ballot. The initiative would first require 237,645 signatures from registered Arizona voters no later than 2 July 2020 to qualify to appear on the ballot for voting. If passed, there will be an opportunity to apply for Marijuana Establishment Licenses as soon as January 2021. A marijuana establishment shall be allowed to operate all of the following:

• A single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana and manufacture marijuana products.
• A single off-site cultivation location at which the licensee may cultivate marijuana, process marijuana and manufacture marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.
• A single off-site location at which the licensee may manufacture marijuana products, and package and store marijuana and marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.

Alabama: A bill to legalize medical cannabis, Senate Bill 165 (The Compassion Act), is working its way through legislation. If passed, there will be an opportunity to apply for medical cannabis business licenses to become a state licensed cultivator, processor, secure transporter, state testing laboratory and/or dispensary,

California: The state of California legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. Opportunities to apply for a cannabis business license is dependent on each local municipality’s approval process.

Georgia: In 2017, the state legalized low-THC, high CBD medical cannabis but failed to establish a state-wide dispensing system. Two years later, in 2019, the state passed House Bill 324, expanding the current medical cannabis program to establish a dispensing system. Opportunity to apply for a medical cannabis business license will take place after the program’s rules and regulations are finalized (anticipated to occur in 2020). The state will issue two (2) Class 1 Producer License, limited to 100,000 sqft facility allowed to grow and produce cannabis oil; four (4) Class 2 Producer License limited to 50,000 sqft facility allowed to grow and process cannabis oil; and a TBD number of Dispensary License, allowed to sell medical cannabis oil to registered patients

Illinois: The state of Illinois legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. Opportunity to apply for a cannabis business license will be in 2021. In addition to the existing cannabis business licensees, by December 21, 2021, the state will award up to sixty (60) additional Craft Grower Licenses, limited to 5,000 sqft of canopy space, allowed to grow, process and produce medical cannabis and medical cannabis products; up to sixty (60) additional Infuser Licenses, allowed to produce medical cannabis products; and up to 110 additional Adult Use Dispensing Organization Licenses, allowed to sell medical cannabis and medical cannabis products to legal consumers.

Kentucky: A bill, House Bill 136, to legalize medical cannabis in Kentucky was introduced in January 2020 and is currently making its way through legislation. If passed, there will be an opportunity to apply for a limited number of state-issued medical cannabis business license in Kentucky for a Cultivation, Processor and/or Dispensary License.

Mississippi: An initiative, Mississippi Medical Marijuana 2020, to legalize medical marijuana in Mississippi, will appear on the November 2020 ballot. If passed, there will be an opportunity to apply for a license to open a Medical Marijuana Treatment Center which shall be allowed to grow, process and/or sell medical cannabis in the state.

Massachusetts: The state of Massachusetts legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. Opportunities to apply for a cannabis business license is dependent on each local municipality’s approval process.

Michigan: The state of Michigan legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. Opportunities to apply for a cannabis business license is dependent on each local municipality’s approval process.

Maine: The state of Maine legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. In Maine, an Adult-Use Cannabis Dispensary License allows you to manufacture, cultivate, deliver, transport and sell marijuana to persons 21 years and older. While there are no state-wide limits on number of dispensary licenses available, opportunities to apply for a dispensary license is dependent on each local municipality’s approval process.

New York: Gov. Andrew Cuomo included the legalization of recreational marijuana in his budget proposal for 2020. If a bill is introduced and passed, there may be an opportunity to apply for medical cannabis business licenses by end of 2020 or early 2021, to become a state licensed cultivator, processor, secure transporter, state testing laboratory and/or dispensary,

New Jersey: A proposed ballot question to legalize recreational marijuana in New Jersey will appear on the November 2020 ballot for residents to vote. If passed, there will be an opportunity to apply for cannabis business licenses to become a state licensed cultivator, processor, secure transporter, state testing laboratory and/or dispensary.

Oklahoma: The state of Oklahoma legalized medical cannabis allowing registered patients to have access to medical cannabis. Access to cannabis is through an unlimited number of state licensed businesses that are allowed to grow, manufacture and sell medical cannabis.

Rhode Island: The state of Rhode Island legalized medical cannabis allowing registered patients to have access to medical cannabis. Access to cannabis is through a limited number of vertically-integrated state licensed businesses that are allowed to grow, manufacture and sell medical cannabis. Currently, there are only three (3) state licensed businesses, in July 2019, Gov. Gina Raimondo’s budget proposal included language that allows the state to issue six (6) additional medical cannabis business licenses.

South Dakota: An initiative, Initiated Measure 26, to legalize medical cannabis in South Dakota will appear on the November 2020 ballot. If passed, there will be an opportunity to apply for a limited number of medical cannabis businesses to include Cultivation, Processing and/or Dispensary.

Utah: The state of Utah legalized medical cannabis allowing registered patients to have access to medical cannabis. Access to cannabis is through a limited number of state licensed businesses that are allowed to cultivate, process and dispense medical cannabis. While the state has awarded licenses for eight (8) cultivation and fourteen (14) dispensaries, the state is still accepting applications for medical cannabis processing licenses.

Vermont: The state of Vermont legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Unfortunately, a state-wide dispensing system was never established. A bill, S.B 54, was finally introduced in 2019 to expand the state cannabis program to establish a system for access to cannabis through state licensed cannabis businesses. The bill is currently making its way through the 2020 legislative session.

Interested in applying for a cannabis business license? Contact us for a complimentary 20-min consult by emailing info@thecannabisbusinessadvisors.com