Massachusetts State Regulation Analysis
The Department of Public Health in Massachusetts has finalized the regulations.
HB1632 would charge application and annual fees for each medical marijuana
business. All RMD’s (Registered Marijuana Dispensary) are to be NON-PROFIT and would be selected following a competitive, merit-based application process.
In addition, patients could cultivate if they do not live near a dispensary due to what is called the “Hardship Cultivation Rule”, if they cannot travel to one, or if the dispensaries near them do not have an adequate supply of marijuana or the strain that works for the patient. Home cultivation from patients is only allowed if medical marijuana dispensary is not close to the patient’s residence.
Download PDF of the current regulations for medical marijuana in Massachusetts.
Download Stage Two Process Applications:
CANNA PROPOSALS analysis on application requirements to open a dispensary
- Phase One process will have general requirements for the first initial application, including non-profit information, site locations, and proof of capitalization.
- If the organization passes Phase ONE, a comprehensive proposal submission will require a specific set of Dispensary Business Plans for submission in Phase TWO, once the second set of RFP applications are issued by the Department of Health.
- Regulations require any RMD’s to be sited at least 1,000 feet from existing school. All establishments will be in industrial zones, following any municipal by-laws and moratoriums. Some municipalities differ in their zoning restrictions and will be less than 1000 feet from a school, we do not recommend this.
- No executive, member, or any entity owned or controlled by such executive or member, may directly or indirectly control more than three RMDs.
- A RMD may not have more than two locations in Massachusetts at which marijuana is cultivated, MIPs are prepared, and marijuana is dispensed. You may choose to have a separate cultivation site or grow in the dispensary location, but not both.
- Issued registration certificates and registration cards are non-transferable.
- Regulations require medical marijuana establishments to maintain a completely seed-to-sale inventory control system. Insofar as is practicable,to monitor the chain of custody and current whereabouts, in real time, of medical marijuana from the point that it is harvested at a cultivation facility and MIP facility until it is sold at an RMD to the patients.
- Laboratory testing is required on testing for traces of pesticides/mildew and determining THC/CBD content, overall quality, and potency.
- Marijuana must be cultivated in an enclosed, locked facility.
- (MIP) Marijuana-Infused Products are allowed to be dispensed.
- Patients are allowed to purchase medication 10 ounces of product every 2 months. A maximum for the amount of edibles a patient can have will be created by the department but has not been established.
State financial requirements to open a dispensary in Massachusetts
- Initial application fee STAGE ONE: $1,500.00
- Initial application fee STAGE TWO: $30,000.00
- Yearly registration fee if granted license: $50,000.00
- Documentation that the applicant has at least $500,000 in its control and available, as evidenced by bank statements, lines of credit, or the equivalent, to ensure that the applicant has sufficient resources to operate. This provision may be fulfilled through demonstration of pooled resources among the individuals or entities affiliated with the applicant. If an entity is submitting more than one application, the capital requirement shall be $400,000 for each subsequent application.
Total: $1,500 currently is REQUIRED to submit (1) dispensary application for Stage ONE, with an additional $30,000.00 Fee REQUIRED for Stage TWO applicants
CANNA PROPOSALS recommends that between $650,000.00 – $1,000,000.00 in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans and paying all state financial requirements for ONE dispensary license. There will be additional costs when applying for up to three dispensaries in Massachusetts.
This may or may not include the amount needed for o develop retail dispensary location and cultivation site. It is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a dispensary license to operate. Please contact us for more information on how to open a dispensary in Massachusetts.