Venturing into the big business of licensed marijuana (cannabis) transfer and sales within Boston can be tasking. One must be willing to dance to the tune of both federal and state legal statuses (which are most of the time ambiguous, but not too much to ask) to break into the industry successfully.
What about the Cannabis Control Commission?
It might interest you to know that the December 15, 2016 ballot initiative that birthed the approval of legalized recreational marijuana use created the Cannabis Control Commission, to among other things, oversee licensing of commercial marijuana establishments. This particular body, the CCC, will issue a license that will cost a $1,500-$3,000 non-refundable application fee, plus $15,000 for a Cultivation, Manufacturing, and Retail, $10,000 for a Testing, Delivery and Social Consumption licenses.
As soon as your application is received, a copy will be sent to the location of the cannabis establishment. It will then determine whether the applicant and the premises qualify for the license. Within 90 days, the business will be issued an appropriate license, or be informed of the rejection, along with an explanation.
However, at the state level, there are some other necessary conditions to be satisfied to get your cannabis business adequately licensed and recognized in Boston. Here are a few essential rules you must know;
LIMITATIONS ON BUSINESS TYPES IN BOSTON
Retailer
A retailer in Boston is compelled to either grow or buy the marijuana they sell from other dispensaries. Besides, they are not permitted to deliver marijuana, and consumers are now allowed to use it on-site.
Cultivator
Also called Grow Operations, they grow cannabis plants indoors or outdoors for recreational or medical use and sometimes engage in processing and packaging the product. However, they are not allowed to stay alone. They are expected to either sell through a dispensary or a product manufacturer.
Product manufacturer
In Boston, these manufacturers can wholesale or transfer these products to dispensaries and are restricted from dealing directly with the public.
Transporter
They securely transport cannabis and can be third-party companies, or licensed cannabis cultivators and retailers that also wish to obtain a transporter license.
Microbusiness
You can be a Tier 1 cannabis cultivator, product manufacturer, or both. However, to be a product manufacturer, you must buy less than 2,000 pounds of marijuana annually.
FEES AND OTHER BARRIERS TO ENTRY
Application fees
For medical marijuana businesses in Boston, the application fee is a whopping $31,500. However, recreational purposes are subjected to an application fee of $100, and $600 for cultivation. Meanwhile, there is also a $300 fee for a retail store, testing lab, product manufacturer, or microbusiness.
Working capital
Boston requires medical marijuana companies to have at least $500,000 in working capital.
License fees
Medicinal cannabis companies, irrespective if it’s a new or renewed license, are subjected to pay a $50,000 license fee in Boston. Meanwhile, recreational cannabis retailers, product manufacturers, and testing labs are to pay a $5,000 license fee. On the other side, recreational cannabis cultivators have to pay a license fee ranging from $625 to $25,000.
Monthly tracking system fee
Cannabis companies (except for microbusinesses) pay a monthly fee to use seed-to-sale tracking. This is an electronic system to track cultivation, maturity, harvest, and sale.
Background check
There is a compulsory background check all marijuana business license applicants are expected to undergo. It also includes the fingerprint verification to ensure they haven’t been convicted of distributing controlled substances to minors.
Starting a legal cannabis dispensary is more complicated than starting many other kinds of businesses, mainly because of the strict regulatory environment and its uncertainties. It is a serious undertaking that requires extra patience and a profound grasp of various complex regulations and the legalities involved.
