The Maine Division of Administrative and
Monetary Providers (DAFS) not too long ago launched the first draft of proposed rules
to control the
state’s adult-use cannabis trade, which was legalized by way of poll initiative
within the 2016 elections. Whereas there’ll nearly definitely be adjustments made to the
rules as they exist at the moment, beneath we evaluation 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
vegetation or 500 sq. toes of cover. Tier 2 licensees will be capable to 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 match as much as 20,000
sq. toes of cover, or practically a half-acre. A license for nursery cultivation
services can also be being proposed for operations that may promote clones and seeds
to different licensed growers or shoppers.

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

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

License charges fluctuate in accordance 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 open air or $10,000 per yr
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 embrace a state-level
cap on the variety of cultivation licenses that could be issued. Nonetheless, all
companies looking for to enter Maine’s adult-use market should safe native
approval earlier than with the ability to acquire a state license, which is able to possible 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
normal, plant cultivation and ensuing product have to be stored separate. The
parallel, impermeable markets specified by the draft guidelines echo the state of affairs in
Colorado. Additional, cultivation of medical and adult-use vegetation in Maine have to be
“visually and bodily” separated, not like in Colorado the place vegetation 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 services is allowed. Nonetheless, the present
guidelines state that potential licensees should illustrate areas distinct to
medical and adult-use vegetation and manufacturing in facility and safety plans
required within the license utility.

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 approach.” 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 shoppers in a currently-operating medical storefront, as is allowed
in another states.

Relatedly, adult-use operations that intend to
combine vertically to various levels might co-locate cultivation, product
manufacturing, and retail. Nonetheless, circumstances apply, equivalent 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 major 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 ultimate rules have to be authorized 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 yr.

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