Cannabis Business in Maine

In 2023, Maine's cannabis industry made significant financial contributions to the state’s economy. According to Maine Revenue Services, the industry generated close to $21 million in sales tax revenue and nearly $15 million in excise tax. The Maine Office of Cannabis Policy (OCP) reported approximately $217 million in retail sales and issued around 109,000 medical patient certificates during the same year.

The cannabis industry in Maine is comprised of a few distinct sectors, including medical cannabis, adult-use (recreational) cannabis, hemp cultivation, and the production of various products containing hemp-derived CBD. The industry is overseen by two main government agencies, the Office of Cannabis Policy and the Maine Department of Agriculture, Conservation & Forestry (DACF). The DACF oversees hemp cultivation, while the OCP regulates all other aspects of the cannabis industry.

Maine Hemp Cultivation

The DACF is the licensing authority for growing hemp in Maine and operates Maine’s hemp production plan, which was approved by the USDA. As a result, any hemp licensed in Maine can be sold nationwide.

Applying for a License to Grow Hemp

Any individual looking to start a cannabis business for sale in Maine can start by applying for a license to grow hemp. The application process includes multiple steps:

1. Submitting a completed application at least 30 days before planting the crop.
2. Paying a non-refundable application fee.
3. Receiving and signing a hemp license agreement.
4. Registering the grow site(s) with the local USDA Farm Service Agency office.
5. Planting the hemp in separate lots by variety.
6. Submitting a planting report within 14 days after planting.
7. Undergoing an inspection of the grow site(s) by the DACF.
8. Keeping the DACF informed about the hemp operation.
9. Notifying the DACF at least 30 days before harvesting if the crop has not been sampled.
10. Submitting a sample for testing to ensure the THC concentration does not exceed 0.3% by dry weight.
11. Completing a post-harvest report.

Adult-Use Cannabis in ME

Obtaining a License

Maine's adult-use cannabis industry is regulated by the OCP. There are several different license types that the OCP issues:

• Cultivation Facility
• Testing Facility
• Products Manufacturing Facility
• Cannabis Store
• Sample Collector

The general requirements for an applicant seeking any of these licenses are:

• Individuals must be Maine residents.
• Business entities must be incorporated in the State of Maine.
• Must be at least 21 years old.
• Must not be employed by a state agency or as a corrections or law enforcement officer.
• Must not owe outstanding court-ordered payments.
• Must not have committed a disqualifying drug offense.
• Must not have had a previous medical marijuana business license or marijuana ID card revoked.

Conditional licensure is the first step for individuals looking to open a cannabis business in Maine, and the requirements vary depending on the type of license being sought.

Once conditional licensure is granted, applicants need to obtain an Individual Identification Card. This card is required for all employees of the cannabis establishment.

After conditional licensure and Individual Identification Cards are obtained, applicants can proceed to apply for active licensure. This process involves submitting additional information, such as proof of compliance with local regulations, facility plans, and operating plans.

Adult-Use Cannabis Testing

Maine mandates testing for all cannabis and cannabis products. Testing is meant to show the levels of contaminants and impurities and ensure they are not beyond the permitted level. Prior to selling or transferring any cannabis product to a dispensary or consumer, licensees must ensure the product passes tests for the following:

• Filth and foreign material
• Pesticides
• Other harmful chemicals (metals)
• Dangerous molds and mildew
• Harmful microbes
• THC potency, homogeneity, and cannabinoid profiles
• Water activity

Hemp-Derived CBD in Maine

The production and sale of food containing hemp-derived CBD is permitted in Maine, provided it meets specific requirements, such as a THC content of less than 0.3%. The product must be clearly labeled with ingredients and manufacturer information, and it must not contain any unapproved health claims. The CBD must be extracted from hemp grown in Maine under the state's hemp program.

The Maine Department of Agriculture, Conservation, and Forestry is responsible for licensing and regulating the production of hemp. In Maine, the legal definition of “hemp” is a Cannabis sativa plant with a delta-9-tetrahydrocannabinol concentration that does not exceed 0.3% by dry weight. The Department also licenses and regulates the sale of hemp seeds. Hemp seed distributors must acquire their seeds from a source certified by a third party.

The Department sets application fees, licensing fees, and fees for monitoring, sampling, and testing hemp. These fees must be reasonable and sufficient to cover the costs of the department's activities. The application fee ranges from $50-100, the license fee ranges from $100-500, and the fees for monitoring, sampling, and testing range from $1-100 per acre.