Hundreds of medical marijuana dispensaries, co-ops, collectives, and delivery services are currently doing business throughout the country. Dispensaries can expect to pay large amounts on start-up costs, including application fees and operating licenses.
Each state has its own requirements for cannabis, CBD, THC levels, cannabis programs, ID cards, and marijuana legalization. If you're considering opening a medical marijuana dispensary, you'll be dealing with plenty of hurdles both regulatory and financial. Medical marijuana entrepreneurs also face the same challenges as any typical business owner, including marketing, logistics, and human capital. As there are different laws and costs per state, it's important to do your own research into local regulations and zoning policies.
This article and the chart below cover the relevant laws relating to dispensaries in those states that allow the legal sale of medical marijuana and adult marijuana use. Different laws may apply for medical marijuana patients using it to treat chronic pain, Parkinson's Disease, serious illnesses, and other ailments. The federal government considers marijuana a Schedule I drug and keeps a careful record of all state patients or recreational customers.
Alaska | Statute(s): Alaska Statutes Section 17.38.010, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Alcohol and Marijuana Control Office Licenses Available: (1) retail stores; (2) cultivation facilities; (3) testing facilities; (4) manufacturing facilities. Relevant Regulations:
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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: See below Relevant Regulations:
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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: (1) dispensaries; (2) cultivation facilities. Relevant Regulations:
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California | Statute(s): California Business & Professions Code Sections 26000, et seq. Dispensaries Authorized: Yes Licenses Available: (1) retailers; (2) distributors; (3) testing labs; (4) microbusinesses; (5) manufacturers; (6) cultivators. Agency Administering Licenses: Three state licensing authorities: the Bureau of Cannabis Control, the Manufactured Cannabis Safety Branch, and CalCannabis Cultivation Licensing. The type of license required (i.e. cultivator, retailer, testing lab, etc.) will determine which agency will issue the license. 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: (1) medical marijuana center; (2) medical marijuana optional premises cultivation; (3) medical marijuana infused product manufacturer; (4) medical marijuana testing facility; (5) medical marijuana transporter; (6) medical marijuana operator; (7) medical marijuana research and development facility or cultivation. Colorado also offers separate retail marijuana business licenses. Relevant Regulations:
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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: See below. Relevant Regulations:
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Delaware | Statute(s): Delaware Code Title 16 Section 4901A, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Delaware Health and Social Services, Division of Public Health Licenses Available: None currently. One facility - called a "compassion center" is open, and a second facility is opening soon. Relevant Regulations:
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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) Licenses Available: See below. Relevant Regulations:
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Florida | Statute(s): Florida Statutes Title XXIX, Public Health Section 381.986 Dispensaries Authorized: Yes Agency Administering Licenses: Florida Department of Health Licenses Available: See below. Relevant Regulations:
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Hawaii | Statute(s): Hawaii Revised Statutes Division 1 Section 329D-1, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Hawaii Department of Health (DOH) Licenses Available: Not currently and it's unclear whether more licenses will be issued in the future. Relevant Regulations:
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Illinois | Statute(s): Illinois Statutes Chapter 410 Section 130/1, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Illinois Department of Public Health (IDFPR) for dispensaries and Illinois Department of Agriculture for cultivation centers. Licenses Available: See below. Relevant Regulations:
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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: Rarely available. Relevant Regulations:
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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 Available: See below. Relevant Regulations:
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Massachusetts | Statute(s): An Act for the Humanitarian Medical Use of Marijuana Dispensaries Authorized: Yes Agency Administering Licenses: Massachusetts Department of Public Health (DPH) Licenses Available: Registered Marijuana Dispensary (RMD) Certificate of Registration Relevant Regulations:
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Michigan | Statute(s): Michigan Compiled Laws Section 333.26421, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Michigan Department of Licensing and Regulatory Affairs (LARA) Licenses Available: (1) growers; (2) processors, (3) transporters, (4) provisioning centers; (5) safety compliance facilities. Relevant Regulations:
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Minnesota | Statute(s): Minnesota Statutes Health Section 152.22, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Minnesota Department of Health (DOH) Licenses Available: See below. Relevant Regulations:
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Montana | Statute(s): Montana Code Annotated Section 50-46-301, et seq. Dispensaries Authorized: Yes Agency Administering Licenses: Montana Department of Public Health and Human Services (DPHHS) Licenses Available: See below. 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: Nevada Department of Taxation Licenses Available: See below. Relevant Regulations:
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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: See below. 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) Licenses Available: See below. Relevant Regulations:
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New Mexico | Statute(s): Lynn and Erin Compassionate Use Act, 26-2B-1 et seq. NMSA 1978 [PDF] Dispensaries Authorized: Yes Agency Administering Licenses: New Mexico Department of Public Health (DPH) Licenses Available: See below. Relevant Regulations:
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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: See below. Relevant Regulations:
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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:
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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: (1) dispensaries; (2) processors. Relevant Regulations:
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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: See below. Relevant Regulations:
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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) Licenses Available: See below. 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: See below. 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.
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The increasing number of jurisdictions legalizing the use of marijuana for medicinal purposes expands treatment options for patients but also opens up greater business opportunities. However, the changing state of the law can make things a little challenging for businesses. That's where an attorney can make all the difference. Reach out to an experienced cannabis business law attorney in your area today to learn more.