Legal Guide to Doing Business in the Massachusetts Marijuana Industry

5 years ago

Massachusetts voters approved medical marijuana in 2012 and adult-use cannabis in 2016. Since then, the cannabis industry has grown in size and importance in Massachusetts. For example, during the 2020 COVID-19 economic shutdown, medical marijuana dispensaries were deemed essential and remained open across the state.

There is no limit on the number of medical marijuana dispensaries or adult-use retailers allowed in the state (local municipalities may not allow them though). Dispensaries handle all growing and manufacturing in Massachusetts. In addition, cannabis delivery was approved in September 2019.

The Massachusetts Cannabis Control Commission requires that all marijuana establishment agents and marijuana establishment owners, managers, and employees involved in the handling and sale of marijuana for adult use complete Responsible Vendor Training from a state-approved provider within 90 days of hire and once per year thereafter.

Leafy Green Agency is an approved Massachusetts Responsible Vendor Training provider. Follow the link to see the Massachusetts RVT Seminar Schedule and register for a seminar to complete your required training.

Commercial Grower (Cultivator) Licensing Regulations

The cannabis business licensing structure in Massachusetts requires vertical integration, which means dispensary license holders handle cultivation, manufacturing, and sales. Cultivation licenses are offered on a tiered-basis and fees vary depending on whether the grow site will be indoors or outdoors.

Currently, the indoor cultivation license fee ranges from $200 to $600 while the outdoor cultivation license fee ranges from $100 to $300. Approved applicants are required to pay a license fee of $625 to $12,500 for an indoor cultivation license or $1,250 to $25,000 for an outdoor cultivation license.

Manufacturing Licensing Regulations

The manufacturing license application fee is $300 at this time, and approved applicants must pay a $5,000 license fee.

Dispensary Licensing Regulations

Dispensaries are responsible for growing, manufacturing, and sales. For stage 1, the medical dispensary license application fee is $1,500 and the licensing fee for approved applicants is $50,000. For stage 2, there is a $30,000 application fee and $50,000 licensing fee.

The state also offers a microbusiness license with a $300 application fee and a license fee equivalent to 50% of all applicable fees.

Delivery Licensing Regulations

Cannabis delivery was approved by the state in September 2019. There is a separate third-party transporter license for businesses that don’t grow, manufacture, or dispense cannabis. The application fee for this license is $300, and the license fee is $1,000.

Patient Medical Marijuana Registration Qualifications

Patients who qualify for medical marijuana are required to register with the state annually. Registration is free. Registered medical marijuana patients can obtain no more than 10 ounces of cannabis every two months from state-licensed dispensaries.

To qualify, a patient must receive a recommendation from a physician, physician’s assistant, or nurse practitioner who is registered with the state to certify patients for medical cannabis.

Qualifying conditions include:

HIV/AIDS
Amyotrophic lateral sclerosis (ALS)
Cancer
Crohn’s disease
Glaucoma
Hepatitis C
Multiple Sclerosis
Parkinson’s disease
Other conditions as determined in writing by a qualifying patient’s physician

Possession Regulations

Individuals age 21 and older can possess up to one ounce of cannabis with no more than five grams of concentrate outside of their homes. They can possess up to 10 ounces of cannabis inside their homes as well as any cannabis produced by plants cultivated on the premises.

Self-Cultivation Regulations

Individuals age 21 and older are allowed to grow cannabis in their homes, but there are limitations, particularly related to security requirements and visibility.

No more than six plants may be grown at home. However, if multiple adults are growing in the same residence, the limit is higher. Specifically, no more than 12 plants are allowed to be grown in a residence for all adults combined.

Caregiver Regulations

Registered medical marijuana patients in Massachusetts may designate a personal caregiver who is at least 21 years of age. The caregiver may grow cannabis for them if they can’t access a licensed dispensary or if they have verification of a financial hardship.

How to Learn More about Massachusetts Marijuana Laws

Register for an upcoming Massachusetts cannabis training seminar from Leafy Green Agency to learn more about the state’s marijuana industry.

In addition, you can visit Leafy Green Agency’s Cannabis in Massachusetts page for more information about state laws.