The Maine Division of Administrative and
Monetary Providers (DAFS) lately launched the first draft of proposed rules
to control the
state’s adult-use cannabis business, which was legalized by way of poll initiative
within the 2016 elections. Whereas there’ll virtually definitely be modifications made to the
rules as they exist presently, beneath we assessment some objects pertinent to
the state’s nascent wholesale market.

The draft guidelines lay out 4 tiers of
cultivation licenses. Tier 1 licenses enable the farming of as much as 30 mature
crops or 500 sq. toes of cover. Tier 2 licensees will be capable of develop up
to 2,000 sq. toes of cover area. Tier Three operations will likely be permitted to domesticate
as much as 7,000 sq. toes of cover space. Tier four growers may fit as much as 20,000
sq. toes of cover, or practically a half-acre. A license for nursery cultivation
amenities can be being proposed for operations that may promote clones and seeds
to different licensed growers or customers.

Importantly, “cover” is outlined in Maine’s
draft guidelines as areas that include mature, flowering crops solely. Beneath the
present model of the rules, licensed cultivators would be capable of have
limitless quantities of immature crops and “seedlings,” or clones.

Cultivation in greenhouses and outside, in
addition to indoor rising, will likely be allowed in Maine’s adult-use market, although
after all safety, fencing, and lighting necessities are outlined for every
cultivation method.

License charges differ in line with tier, in
addition to an operator’s cultivation methodology. Tier 1 outside growers pays
charges of $9 per mature plant or $250, whereas these on this tier rising indoors
or utilizing a mixture of synthetic and pure gentle pays $17 per mature plant or
$500 yearly. Annual license charges for a Tier 2 allow have been set initially
at $1,500 for an outside cultivator and $3,000 for different develop strategies. Tier 3
licensees pays $5,000 yearly if farming outside or $10,000 per 12 months
in any other case. Tier four cultivators will see annual license charges of $15,000 for
outside rising or $30,000 for indoor or combined operations. Annual charges for a
nursery license have been set at $350.

The rules don’t embody a state-level
cap on the variety of cultivation licenses that is perhaps issued. Nonetheless, all
companies searching for to enter Maine’s adult-use market should safe native
approval earlier than having the ability to acquire a state license, which can seemingly prohibit
the proliferation of such operations considerably.

The proposed rules additionally present
tips pertinent to Maine’s registered caregivers or present medical
dispensary operations that intend to enter the state’s adult-use market. In
basic, plant cultivation and ensuing product have to be saved separate. The
parallel, impermeable markets specified by the draft guidelines echo the scenario in
Colorado. Additional, cultivation of medical and adult-use crops in Maine have to be
“visually and bodily” separated, in contrast to in Colorado the place crops tagged for
the medical and adult-use markets could also be grown side-by-side

For present operations, co-location of
medical and adult-use cultivation amenities is allowed. Nonetheless, the present
guidelines state that potential licensees should illustrate areas distinct to
medical and adult-use crops and manufacturing in facility and safety plans
required within the license software.

Moreover, “If a[n adult-use] cultivation
facility with a marijuana retailer license (…) or standalone marijuana retailer is
situated adjoining to a registered caregiver or medical marijuana dispensary, it
should have distinctly separate entrances from a public proper of manner.” Such
necessities may pose difficulties for present medical cannabis companies
that may have hoped to easily add extra point-of-sale stations for
adult-use customers in a currently-operating medical storefront, as is allowed
in another states.

Relatedly, adult-use operations that intend to
combine vertically to various levels could co-locate cultivation, product
manufacturing, and retail. Nonetheless, situations apply, akin to a prohibition on
having “inherently hazardous” supplies in a product manufacturing operation
that’s co-located with a storefront.

Whereas the issuance of the primary draft of
adult-use rules is a big step towards a functioning industrial
market in Maine, when manufacturing and gross sales will start stays considerably
unsure. A report from the Portland Press Herald
, previous to the discharge of
the draft guidelines, said that last rules have to be accredited by state
lawmakers previous to the tip of the legislative session in June if gross sales are to
have an opportunity of commencing by the tip of this 12 months.

Notably, the draft guidelines presently don’t
embody proposed rules for testing labs. Moreover, tips that
would allow present medical cannabis dispensaries or caregiver operations to
start promoting to adult-use customers, or switch present stock into the
new market, are usually not included within the rules as they’re constituted
presently.