Despite more than three-dozen states decriminalizing medical cannabis, opening a cannabis-related business is not easy. There are plenty of hurdles to overcome. Among them is licensing. Every state with an active medical cannabis program requires that companies involved in producing and selling medical cannabis be licensed.
Getting the appropriate license is just a formality in some states. In others, operators need to jump through quite a few hoops. There is also the issue of license limits. Many states have placed a hard cap on the number of licenses they issue.
4 Types of Licenses
Although medical cannabis rules differ from one state to the next, the states are pretty uniform in terms of the types of licenses they issue. Let us use Utah as an example. Operators can apply for licenses in one of four categories:
1. Growers
The grower’s license is the first license category in Utah. It obviously goes to operators who make their money cultivating medical cannabis plants. Growers must meet strict state standards for safety, product quality, and THC content. Incidentally, Utah issues separate licenses for hemp growers.
2. Processors
Processing is the second category for cannabis licenses in Utah. The category is divided into two tiers to distinguish between companies that process plant material and those that simply package and label medical cannabis products designed for retail sale.
3. Testers
State law requires that all medical cannabis products be tested at multiple stages from cultivation to final sale. Companies offering independent testing services must be licensed accordingly.
4. Retailers
Medical cannabis retailers in Utah are known officially as pharmacies. The Zion Medicinal pharmacy in Cedar City is the perfect example. Zion Medicinal possesses one of just fifteen pharmacy licenses in Utah. All medical cannabis products purchased by patients must come from one of those pharmacies.
Individual Certifications
In Utah, licenses are for businesses. As for employees of those businesses, many must be certified under the law. For example, Utah issues an agent card to any and all employees who work at medical cannabis operations. Every employee at Zion Medicinal must have a card. Cards must be carried whenever an employee is at work or handling cannabis in any way.
Qualified medical providers (QMPs) are doctors, advanced practice nurses, and orthopedists who assist medical cannabis patients looking to obtain or renew medical cannabis cards. In order to be a QMP, a medical provider must undergo continuing education and be certified by the state.
Licensing Is a Matter of Control
It is easy to look at how medical cannabis is licensed and wonder why states do what they do. Unfortunately, medical cannabis licensing is no different than any other form of state licensing. Issuing licenses is a matter of the state wanting to maintain control.
Utah lawmakers want to keep a lid on the state’s medical cannabis industry. They want to guarantee that everything is done by the book. As a side note, they also want to ensure that Utah does not become the next Oklahoma, a state that is seeing the medical cannabis market collapse due to lack of oversight.
Licensing is a way to artificially control everything from pricing to product quality. State lawmakers would undoubtedly argue that licensing is in the best interests of everyone involved – especially patients. As for patients, they may not agree.
Licensing is part of the medical cannabis game. There is no way around it. For right a wrong, state governments are going to exercise maximum control over the medical cannabis market. One of the most effective tools for doing so is licensing. Do not expect licensing to ever go away.
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