North Dakota Medical Marijuana Business Licensing & Compliance
Medical Marijuana
North Dakota legalized medical cannabis in 2016 through a voter-approved ballot initiative, Measure 5. Due to regulatory concerns, state officials delayed implementation until 2017, when a revised bill was signed into law, leading to an application period for facility licenses in 2018. Recreational cannabis remains illegal; however, House Bill 1050, signed into law, reduces penalties for cannabis possession and calls for a study on the feasibility of adult-use legalization in North Dakota.
The North Dakota Department of Health (NDDoH) oversees the medical cannabis program. This includes the licensing process, ensuring compliance with state regulations, and managing patient and caregiver registration.
Types of Licenses and Costs:
- Manufacturing Facility License:
- Cost: Varies; typically includes initial application fees and ongoing compliance costs.
- Current Licensees: Pure Dakota LLC, Grassroots Cannabis.
- Dispensary Facility License:
- Cost: Varies by location and specific requirements.
- Current Licensees: Pure Dakota Health (multiple locations), Curaleaf (multiple locations), Strive Life (Grand Forks).
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Application Process:
The application process for a North Dakota cannabis license includes the following steps and requirements:
- Location Suitability: The site must comply with local zoning laws and be geographically convenient for patients.
- Character Evaluation: Assessment of the relevant experience of principal officers and managers.
- Operational Plans: Includes detailed recordkeeping, security, safety, and product pricing plans.
- Documentation: Includes packaging and labeling plans, ensuring compliance with state regulations.
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Restrictions:
- Zoning: Determined by local municipalities, considering proximity to schools and other prohibited areas.
- Cultivation and Sale: Only medical marijuana is allowed; recreational use remains illegal, though penalties for possession have been reduced.
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Financial Requirements:
Applicants must demonstrate financial stability through bank statements, CPA letters, or a Letter of Credit. A 2-3 year Pro Forma is typically required as part of the business plan. There is no specific cash on hand requirement, but applicants must disclose funding sources.
Real Estate & Zoning:
Zoning regulations are determined by local municipalities. Applicants must often have possession of real estate before submitting their application. Businesses must comply with regional and local zoning rules regarding the proximity to certain types of establishments, like schools.
Hemp
Hemp was legalized in North Dakota following the passage of the 2018 Farm Bill, which federally recognized hemp with less than 0.3% THC as an agricultural commodity. This allowed states to develop their own regulatory programs. North Dakota established a comprehensive licensing system managed by the North Dakota Department of Agriculture (NDDA) to oversee the cultivation and processing of hemp within the state. The NDDA’s Industrial Hemp Program regulates all aspects of hemp cultivation and processing, ensuring compliance with both state and federal regulations.
Types of Licenses and Costs:
- Grower License:
- License Fee: Based on the number of lots grown.
- 1 Lot: $100
- 2 Lots: $200
- 3 Lots: $300
- 4 or more Lots: $350
- License Fee: Based on the number of lots grown.
- Processor License:
- License Fee: $200
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Application Process:
To apply for a hemp license in North Dakota, growers and processors must complete the following steps:
- Complete Required Forms:
- Criminal History Record Check Request (SFN 60688)
- Hemp License Application (SFN 58476)
- Hemp Processor License Application (SFN 61613)
- Submit Supporting Documents:
- Two sets of fingerprints (locations provided by the state).
- A non-refundable check or money order for $41.25 made out to the North Dakota Department of Agriculture for the background check.
- Mail Completed Forms and Fees to:
- North Dakota Department of Agriculture
Plant Industries Division
600 E Boulevard Ave, Dept 602
Bismarck, ND 58505-0020
Once the application and fees are submitted, an inspector from the NDDA will contact the applicant to coordinate an inspection.
Restrictions:
- Lot Definition: A lot is defined as a contiguous area in a field, greenhouse, or indoor growing structure containing the same variety or strain of hemp throughout.
- Criminal History: Applicants must pass a criminal history check.
- Compliance: All hemp cultivation and processing must comply with state and federal regulations regarding THC levels and other quality standards.
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Importing and Buying Seeds:
- International Seed: Regulations for importing hemp seed into the U.S. have recently changed, allowing seed to be brought into the country without a DEA Import Permit. Other requirements may apply.
- Domestic Seed: Hemp seed can be purchased and moved into North Dakota from any state. However, growers should ensure the seed comes from a reputable source and the variety is known to have THC levels below 0.3%.
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Hemp Pilot Program:
The NDDA created the Industrial Hemp Research Pilot Program in compliance with federal law, specifically the Controlled Substances Act (CSA), to research the growth, cultivation, and marketing of industrial hemp. The purpose of the pilot program is to understand how industrial hemp fits into North Dakota’s agricultural landscape and its potential economic contributions.
Hemp Information:
Hemp includes varieties of Cannabis sativa grown for agricultural and industrial purposes, such as textiles, rope, paper, building products, food, feed, oil, pharmaceuticals, cosmetics, and biofuels. The NDDA’s program aims to expand knowledge and practical applications of hemp within North Dakota.
Psychedelics
- Ketamine Laws and Telehealth: Ketamine is classified as a Schedule III controlled substance under NDCC Section 19-03.1-08(2). This classification allows ketamine to be used legally for certain medical treatments under strict regulation. In North Dakota, the use of telehealth for prescribing controlled substances, including ketamine, is regulated under NDCC Chapter 26.1-36-09.15. Telehealth services must comply with both state and federal laws, ensuring proper patient identification, diagnosis, and follow-up care.
- State Right to Try: North Dakota’s Right to Try Act, codified in NDCC Chapter 23-12-28, allows terminally ill patients to access experimental treatments, including certain controlled substances, that have passed Phase I of a clinical trial but are not yet fully approved by the FDA. However, this does not automatically extend to psychedelics unless they meet specific criteria set forth in the law.
- State Religious Exemptions: North Dakota does not currently have specific statutes that provide exemptions for the religious use of psychedelics. Federal laws, such as the Religious Freedom Restoration Act (RFRA), may offer some protection, but individuals and religious groups must typically seek legal guidance and potentially court approval to secure such exemptions.
Check Other States Licensing Guide
- Adult Use
- Medical
- Limited Medical
- Illegal
Where to Find Us
Address
Contact INFO
PHONE:Â 786-526-1155
EMAIL:Â info@mrcannabislaw.com