Cannabis Business in New Hampshire

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New Hampshire only permits the sale of medical marijuana, not recreational marijuana. The New Hampshire Department of Health and Human Services (DHHS) issues licenses for Alternative Treatment Centers (ATCs) to dispense medical marijuana. As of 2022, there were close to 14 thousand registered patients in the state. This number has continuously increased since 2016.

  • ATCs are not-for-profit organizations and are exempt from state taxes, though they may be subject to local taxes.
  • ATCs are permitted in all municipalities in New Hampshire but must comply with local zoning ordinances.

Obtaining an ATC License

The DHHS is responsible for issuing ATC licenses and will open the application window when they deem existing ATCs insufficient to meet the needs of registered medical marijuana patients. To obtain a license, an entity must register with the state as a not-for-profit charitable organization and provide all required documentation. The application process involves:

  • Registering with the New Hampshire Secretary of State as a not-for-profit corporation.
  • Registering with the New Hampshire Office of the Attorney General as a charitable organization.
  • Responding to the Request For Application (RFA) notice published by the DHHS.
  • Submitting all required documents and information to the DHHS within 3 months if selected.

The DHHS determines the duration of the licensing process, specified in the RFA notice. Opening a cannabis business can cost over $1,000,000. If a current cannabis business is for sale, the costs could be even higher. There are a number of funding options for prospective licensees including self-funding, loans from friends and family, equipment financing, and crowdfunding.

There are a number of requirements to obtain a license, including:

Requirement

Description

Liability Insurance $2 million coverage required
Local Permits Including health, building, zoning, and fire compliance certificates
Background Checks Federal and state criminal records checks required for each board member, executive employee, and corporate officer
Security Plan Must address crime prevention and employee security
Hours of Operation Must provide hours of operation and after-hours contact information
Storage Plan Must detail how marijuana will be stored
Inventory Protocols Procedures for managing inventory required
Quality Control Plan Outlines quality control measures for cannabis products
Personnel Policies Must include staffing plan, emergency procedures, and policy on therapeutic cannabis use by ATC agents at the workplace
Product Pricing Procedures Procedures for determining product prices required
Production Procedures Must describe procedures for production of cannabis and cannabis-infused products
Recall Policy Policy for handling product recalls required

Hemp and CBD in New Hampshire

Hemp, legalized under the 2018 Farm Bill and House Bill 459, is regulated at the federal level by the U.S. Department of Agriculture (USDA). The state does not oversee cultivation, processing, or sales, leaving growers to obtain licenses directly from the USDA. These licenses are free and valid for three years. Municipalities in New Hampshire cannot impose restrictions on hemp cultivation or processing.

Hemp-derived CBD with less than 0.3% THC is legal, but the New Hampshire Liquor Commission prohibits its use as food or beverage additives. There are no possession limits for hemp-derived CBD, though sales to individuals under 18 are prohibited. Doctors may recommend, but not prescribe, CBD oil in the state.

Licensed hemp growers must report acreage to the Farm Service Agency (FSA) and adhere to the U.S. Environmental Protection Agency (EPA) list of approved pesticides. Hemp cultivation in New Hampshire is limited to industrial purposes, excluding medical or recreational use.

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