marijuana licenses
5:46 pm
Mon November 4, 2013

What You Should Know about Applying for a State Pot License

This month, the state Liquor Control Board will begin accepting applications for marijuana business licenses. State officials on Monday released details about the application process. Here are four things you should know:

1. When to Apply

The application form will not be available until Nov. 18—the same day the board will start accepting applications. The forms must be postmarked by Dec. 17. The licenses will not be issued on a first-come basis.

If the number of applicants for retail licenses exceeds the number of licenses available, a lottery will be held. There is no cap on the number of producer and processor licenses that will be issued. 

The board provided no timeline for when it might start issuing the licenses. 

2. Reasons for Denial

An applicant’s request may be denied for a number of reasons including: objection from local authority, questionable source of funds, criminal history, and indicators of hidden ownership.

Applicants whose business is located within 1,000 feet of a restricted entity such as a school will be denied. 

Those forming a corporation or a limited-liability company must register with the secretary of state's office prior to applying for a marijuana license. Applications from unregistered entities will not be considered.

3. How Much It Would Cost

The application process will cost $274 in non-refundable fees, which the applicant loses in case of denial. If approved for a license, the applicant will be charged an additional $1,000 license fee.

A city license fee and a fee for a weighing and measuring device may also apply.

4. No More than Three Per Entity

No individual or business may hold more than three marijuana licenses, or more than 33 percent of the retail licenses in any city or county with allocated at least three licenses, whether as a producer, a processor, or a retailer.

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The state Liquor Control Board’s proposed rules will take effect Nov. 20. A total of 334 pot stores will be allowed statewide, according to the rules, and each county will have its own cap.

The state’s first pot retail outlets will likely open in June, the board said.