As of January 1, 2018, the BCC was accepting applications for temporary licenses. The temporary license were good for 120 days and could be extended for additional 90-day periods. However, these temporary licenses were phased out beginning January 1, 2019.
Under the MCRSA, there are 17 license types for medical marijuana businesses while under the AUMA there are 19 adult use cannabis business licenses. There is significant overlap between recreational and medical marijuana business licenses but the main thing to know is the difference between the two licensing schemes involves “vertical integration”.
While AUMA does not contain specific provisions that ban vertical integration, MCRSA prohibits a single medical cannabis business from growing, manufacturing, distributing, testing, and selling medical cannabis. The ability to hold multiple licenses is restricted is the following ways:
-Small cultivators can also hold manufacturing licenses;
-Distributors must hold transporter licenses;
-Any cultivator (large or small) or manufacturing business may also hold a dispensary license;
-Dispensaries with multiple locations may have a combination of manufacturing licenses and cultivation licenses as long as the total cultivated area is less than 4 acres.
The state agencies in charge of issuing licenses are still finalizing their requirements but unless you’re applying for an AUMA license, you will to provide proof that your local government has given you permission to operate your medical cannabis business and you must show that you have the legal right to occupy the property where you will open your business.
If plan on being a cultivator, you must register as an agricultural employer. To obtain a cultivation license, you must provide details about the size of your “grow” site, the kinds of pesticides and fertilizers you will use, water consumption and storage, waste removal, security protocols, inventory tracking, quality control, product labeling and storage.
For any other license types, you must submit a detailed business plan. You must show proof that you have a bond. If you expect to employ more than 20 employees, you will need a labor agreement.
You, your employees and partners will be required to send your fingerprints (typically done through Live Scan) to the Department of Justice for a background check. If you’ve been convicted of a felony involving drug trafficking, fraud, “serious and violent” crimes, your application may be denied. AUMA is a little more lenient regarding prior convictions for drug offenses than proceeding under MCRSA.