Which Cannabis License Is Best? Ten Cannabis Business Types In MA.
Interested in starting a Cannabis Business? Not sure which license type is best suited for your business? Before embarking on your cannabis journey, be informed on your options. We’re breaking down the different license types you can apply for in the Massachusetts Cannabis Industry.
Cannabis Plant
Marijuana Establishment License Types
Let’s start off with what a Marijuana Establishment (ME),is used to describe. ME’s are used to describe a vast majority of the license types in MA. An ME includes:
Craft Marijuana Cooperative
Cultivator (indoor or outdoor)
Independent Testing Laboratory
Marijuana Courier
Marijuana Delivery Operator
Marijuana Research Facility
Micro-business
Product Manufacturer
Retailer
Social Consumption Establishment
Standards Laboratory
Transporter
OR any other type of adult-use marijuana business licensed by the Cannabis Control Commission, excluding MTCs.
Medical Marijuana Treatment Center License
If you’ve been a cannabis consumer for some time, you’ve most likely visited a Medical Marijuana Treatment Center, or otherwise known as an MTC. MTC’s were once known as Registered Marijuana Dispensaries. MTC’s are a vertically integrated business. Vertically integrated means that the license type cultivates, processes, and retails its own marijuana and marijuana products for medical use. MTC licenses are also able to transport their products through home delivery, a huge advantage in today’s growing cannabis market.
Cannabis Inventory
Marijuana Retailer License
In simplest terms, a Marijuana Retailer is a cannabis dispensary with a license to sell products to consumers and to purchase, sell and transport products to another establishment. You may come across a dispensary where they provide sales to both adult-use consumers (21+ in age), and to qualified medical patients or caregivers. This is known as a Co-Located Retailer. The first of this license type in the state of MA were New England Treatment Center (NETA), and Cultivate (now Sunnyside) on November 8th, 2018.
Cannabis Craft Marijuana Cooperative License
A Craft Marijuana Cooperative is a license type which brings growers together to share in no more than 100,000 square feet of cannabis plants in one cultivation site. As of September 2022, there are no operating establishments under this license type, though, there are currently six in the licensing phase, and we hope to see them granted commence to operate soon.
According to the Cannabis Control Commission, a cooperative must satisfy the following conditions:
All members of the cooperative must have lived in Massachusetts for at least one year prior to submitting an application.
The cooperative must include Massachusetts residents who have formed a limited liability company, limited liability partnership, or a cooperative corporation.
The members of a Craft Marijuana Cooperative may not have a controlling interest in any other ME.
A Craft Marijuana Cooperative is not limited to a particular number of cultivation locations, but is limited to three locations for activities authorized for marijuana Product Manufacturers with a total canopy of 100,000 square feet.
One member of the Craft Marijuana Cooperative must have filed a Schedule F tax form during the past five years.
The Craft Marijuana Cooperative must operate according to the seven cooperative principles published by the International Cooperative Alliance in 1995.
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Craft Marijuana Cooperative
Cannabis Cultivator License
Cannabis cultivator licenses allow an establishment to grow, process and package cannabis products for sale to a Marijuana Establishment. This license type prohibits the sale of goods directly to consumers. According to the Cannabis Control Commission, the following requirements are enforced for cultivator licenses:
A licensee may not have a total canopy of more than 100,000 square feet.
Canopy is measured as the boundary that contains mature plants at any point in time.
If mature plants are being cultivated using a shelving system, the surface area of each level is included in the total canopy calculation.
Many marijuana retail establishments also obtain a cultivator license. Northeast Alternatives is a great example of this model. This allows an establishments full control over their retail menu and the ability to wholesale their product to the market.
Independent Testing Laboratory
In order to ensure the health and safety of cannabis consumers, prior to being sold to any consumer, rigorous lab testing for heavy metals, mold and toxins are performed on all cannabis products. Independent Testing labs are accredited to perform tests, in compliance with the Massachusetts of Public Health protocols.
Granted licenses in November 2018, MCR Labs and CDX Analytics, were the first two Independent Testing Labs in the state of MA.
Marijuana Courier License
A Marijuana Courier License allows for delivery to consumers at a residential address from a registered Marijuana Establishment. This license type is similar to that of food delivery models, such as DoorDash or Grubhub, but for cannabis! This license type was granted in Massachusetts in May 2020, when the height of COVID-19 restrictions forced consumers to seek new avenues for obtaining cannabis products. One of the first organizations in MA to obtain this type of license was Your Green Package, who serve Greater Boston, Newton and Northampton.
The restrictions around Marijuana Couriers can be complex. According to the Cannabis Control Commission, the below requirements are in place for couriers:
A Marijuana Courier shall not have a retail location accessible to the public.
Residential deliveries of marijuana or marijuana products are limited to municipalities that:
Are listed on the Commission-issued license as the licensee’s place of business;
Allow for the operation of Marijuana Retailers whether one or more establishments are operational or not; and Opt-in to residential delivery.
Deliveries may only take place between the hours of 8:00 a.m. and 9:00 p.m., unless otherwise allowed or limited by municipal by-law or ordinance.
Municipalities may broaden the time for delivery or may narrow it. It is the responsibility of the licensee to know the rules of the municipality where the licensee delivers.
A Marijuana Courier shall be limited on an exclusive basis to businesses controlled by and with majority ownership comprised of Certified Economic Empowerment Priority Applicants or Social Equity Program Participants for a period of 36 months from the date the first Marijuana Delivery Operator receives a notice to commence operations.
Cannabis At Home
Marijuana Delivery Operators
One of the first Marijuana Delivery Operator licenses to be granted in MA was to the Veteran-Owned and female led organization, Kindrun.
Under a Marijuana Delivery License, operators are allowed to purchase cannabis products from licensed cultivators and manufacturers to sell and deliver directly to consumers. This license type also allows for operators to securely store cannabis products on their premise for wholesale purposes.
Similar in restrictions to a courier license type, a delivery license is exclusive to businesses controlled with majority ownership comprised of certified Economic Empowerment Priority Applicants or Social Equity Program Participants. This restriction is in place for a period of 36 months from the date the first Marijuana Delivery Operator receives a notice to commence operations.
Marijuana Research Facility License
Looking to conduct marijuana research in a particular area, such as Composition levels and chemical potency of marijuana and marijuana products? You can do that! With a Marijuana Facility License, qualified individuals may be granted a research license by the Cannabis Control Commission for a limited period of time.
According to the Massachusetts Marijuana Research website, A marijuana research facility may submit an application for a research permit to conduct research in areas including but not limited to:
Genomic research on marijuana
Agricultural research on marijuana
Composition levels and chemical potency of marijuana and marijuana products
Efficacy and safety of administering marijuana and marijuana products as a component of medical treatment under the supervision of a certifying healthcare provider
Clinical investigations of marijuana products
Horticultural research on marijuana
Any other research topics approved by the CCC, provided that the research conducted by the research facility may not be a substitute for processes for drug approval established in accordance with the United States Food and Drug Administration (FDA) pursuant to 21 CFR 312.
Cannabis Micro-business License
A Micro-business license is a co-located marijuana establishment that can be either a Marijuana Cultivator or Product Manufacturer, or both. A Micro-business that is a Marijuana Product Manufacturer may purchase no more than 2,000 pounds of marijuana per year from other marijuana establishments. This license type is a great option for smaller scale operators looking to to avoid hefty licensing fees.
In order to obtain this type of license, the majority owners must be residents of Massachusetts for no less than 12 months prior to applying for a license. Under this license, delivery services may also be available with endorsement from the Cannabis Control Commission, though, are subject to the same restrictions as Delivery Operators and Couriers. As of September 2022, only one Micro-business has additionally obtained a delivery license, the Freshly Baked Company.
Most micro-businesses in MA, such as Hidden Hemlock or Gibby’s Garden, specialize in small batch, high quality cannabis products, which are offered to establishments through wholesale.
Cannabis Product Manufacturer License
A Product Manufacturer License allows an operator to obtain, manufacture, process and package cannabis to then sell directly to cannabis establishments. You may come across marijuana retail establishments which also have a Product Manufacturer license, such as Berkshire Roots. This allows entities to have control over the production and sale of their curated products and the ability to wholesale their products to the market.
Cannabis Concentrate
Looking For Expert Retail Cannabis Support?
Grass Ceiling is a partnership between retail cannabis experts, Janelle Mucci and Sarah Martine. We offer 8+ years of cannabis expertise for east coast cannabis retailers and delivery operators. We’ll help you train your retail team, grow your customer base, scale your operations, and ensure state compliance.
If you’re looking for support navigating the complex world of MA cannabis, we’d love to chat with you!
