1. Understand regulatory and legal requirements. Do market research.

Research the laws and regulations governing adult-use or medical-use cannabis for more information about the regulatory requirements for licensure in the city or town you wish to operate in.

Georgia Cannabis Legalization

A measure to allow medical cannabis oil containing up to 5% THC passed the Georgia House in February 2015. On April 16, 2015, the low-THC cannabis oil (rich in CBD) was legalized for medical use in the state under HB 1, the Haleigh’s Hope Act. The bill allowed possession of the oil for eight qualifying medical conditions but did not provide for cultivation or distribution within the state.

On April 17, 2019, legislation approved (through House Bill 324, the Georgia’s Hope Act) the in-state cultivation of cannabis and sale of low-THC medical cannabis oils (with up to 5% THC) to patients within Georgia. The bill allowed pharmacies to sell medical cannabis preparations and regulators can authorize private dispensaries. However, no regulatory framework was yet established for pharmacies to be able to sell medical cannabis.

In September 2023, Gov. Brian Kemp signed off on the Georgia Board of Pharmacy Rules which established a regulatory framework for pharmacies to sell medical cannabis products. These rules became effective from November 29, 2023.

Georgia Cannabis Market

Production and dispensing licenses are awarded to applicants selected by the Georgia Access to Medical Cannabis Commission (Commission).

  1. Decide on the type of cannabis business you want to start. Choose a location. Check local zoning regulations.

Cannabis Licenses Types Available in Georgia

Dispensing License

 A Dispensing License allows to sell low THC oil to registered patients.

Application fee: $5,000

License fee:

  • Tier 1 County: $15,000
  • Tier 2 County: $20,000
  • Tier 3 County: $25,000
  • Tier 4 County: $30,000

License renewal fee:

  • Tier 1 County: $25,000
  • Tier 2 County: $30,000
  • Tier 3 County: $35,000
  • Tier 4 County: $40,000

License period: 1 year

Dispensing License for Pharmacies

 This Dispensing License allows pharmacies to sell low THC oil to registered patients.

Application fee: $5,000

License renewal fee:

  • Tier 1 County: $25,000
  • Tier 2 County: $30,000
  • Tier 3 County: $35,000
  • Tier 4 County: $40,000

License period: must be renewed annually on June 30th.

Class 1 Production License

 A Class 1 Production License allows to grow cannabis only in indoor facilities and on up to 100,000 square feet of cultivation space. It also allows to manufacture low THC oil.

Application fee: $25,000

License fee: $200,000

License renewal fee: $100,000

License period: 1 year

Class 2 Production License

 A Class 2 Production License allows to grow cannabis only in indoor facilities and on up to 50,000 square feet of cultivation space. It also allows to manufacture low THC oil.

Application fee: $5,000

License fee: $100,000

License renewal fee: $50,000

License period: 1 year

A Class 1 or 2 production licensee cannot hold an ownership interest in another Class 1 or 2 production business. Only Class 1 or 2 production licensees can apply for a dispensing license.

Cannabis Delivery in Georgia

As stated in S.B. 195, the Commission planned to set the number of retail licensees per production sector so that these licensees can be enabled to “provide home delivery of products to medically fragile registered patients throughout the state”.

Cannabis Delivery Service by State

  1. Develop a solid cannabis business plan. Secure financing.

Cannabis Business Plan

Application requirements include a business plan showing the expected size of the business; anticipated growth; the methods of record keeping; the knowledge and experience of the applicant and any officer, director, manager, and general partner of the business; and other relevant financial and operational components.

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  1. Submit an application. Pay fees. Prepare and submit the required documents.

How to Get a Cannabis Business License in Georgia

Dispensing, Class 1 and 2 production licenses will be awarded to applicants selected by the Commission after a competitive application and review process outlined in the state’s regulations.

Eligibility criteria:

  • The applicant must be a Georgia corporation or entity.
  • The applicant must maintain a bank account with a bank located in Georgia.

Application Process:

  • Submit a complete application with the required information and the non-refundable application fee.
  • The Commission will inspect the application and if it is approved, the applicant must submit the required license fee within 30 days from the issuance of the license.

Required information to be submitted with the application is not limited to:

Production Licenses

  • Proof of available capital to make the necessary investments. The applicant must provide written documentation showing that they hold at least $2 million in available cash reserves that can be invested in Georgia.
  • A written production plan describing the production process, ensuring that it meets the requirements outlined in the regulations.
  • A comprehensive security plan that complies with the state’s laws.
  • A written plan describing specific security measures related to transportation and tracking of delivered products for transportation between facilities.
  • A detailed employment plan.
  • A written plan which ensures that no pesticides are used in the production process except for those certified organic by the Organic Materials Review Institute or a similar organization.
  • Designs of all production facilities.
  • Letters of support from one or more local government entities where the applicant’s primary facilities will be located.
  • Evidence of significant involvement in the business by one or more minority business enterprises as defined in Code Section 50-5-131.
  • Documentation of applicant’s industry capabilities and management experience.
  • Documentation which proves that a $1.5 million cash bond payable to the State of Georgia, an irrevocable letter of credit or a different comparable surety approved by the Commission can be obtained within 30 days after the applicant is awarded their license.
  • At least one set of classifiable electronically recorded fingerprints submitted to the Commission in accordance with the fingerprint system of identification established by the director of the FBI.
  • Description of the applicant’s efforts to create employment or locate facilities in tier one or tier two counties as defined in Code Section 48-7-40.

Dispensing Licenses

  • The Class 1 or 2 production licensee’s name and number associated with the application.
  • Business information which is not limited to:
    • The legal business name.
    • Telephone number.
    • Type of business entity.
    • Copies of articles of incorporation and other organizational documents, as filed with the Georgia Secretary of State.
  • Location information which is not limited to:
    • The physical address.
    • A written agreement that allows the applicant to use the location for the proposed dispensary.
    • A description explaining how the proposed dispensary is needed to serve patients in the geographic area where it is planned to be located.
  • Information about the dispensing license applicant’s agent, owner(s) and officer(s) which is not limited to:
    • Current titles of such persons.
    • Whether any of them is an owner in any other entity licensed by the Commission or in any cannabis-related entity licensed by another state.
  • Information about the employees for the proposed dispensary including the description of job titles and duties as well as the reporting and management structure of employees.
  • An attestation that the agent, owners, officers and employees can demonstrate a lack of a felony conviction within the previous 10 years or that a felony conviction within the previous 10 years has been removed, the person has been pardoned or the person has had their civil rights restored.
  • A copy of floor plans and site-specific plans which show the interior and exterior of the proposed dispensary. It must include:
    • The area of the retail point of dispensing
    • The restricted access areas
    • The patient consultation rooms
  • Any other documents requested by the Commission.

Pharmacies

Dispensing licenses can be awarded to pharmacies that are licensed by the Georgia State Board of Pharmacy (Board).

Application process:

  • Submit a complete application with the required information and the non-refundable application fee. The applicant must also file a report from the Director of the Georgia Drugs and Narcotics Agency which certifies that the applicant has the necessary qualifications for the license.
  • If the application is approved, the dispensing license will be issued to the applicant.

Information that must be submitted with the application includes:

  • The name, full business address, telephone number and current Georgia Board of Pharmacy license number of the licensee.
  • All trade or business names of the licensee.
  • Address, telephone number and the name of the Pharmacist in Charge.
  • Type of ownership or operations.
  • The names of the owner and/or operator of the licensee.
  • Written certification from the applicant that the applicant’s Low THC Pharmacy Dispensary’s location will comply with the location restrictions detailed in C.G.A. § 16-12-215(a).
  1. Final approval. Final fees. Final Inspection.

Final inspections are carried out at the end of the application process before the Commission issues a license. Some of the items verified during the inspection include:

  • The layout of the location matches the submitted floor plan.
  • There is adequate camera coverage (no blind spots in required areas).
  • The surveillance system is functioning and properly secured.
  • The premise is not connected or combined with a residence or another business.
  • Cannabis product is secure from public/customer access.

Production licensees must begin operations within 12 months of the date when the license was awarded. Otherwise, the license will be revoked.

  1. Keep track of your ongoing compliance requirements.

Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.

  1. License renewal.

Renewal process:

Submit a complete application with the required non-refundable renewal fee. The applicant should update, if needed, all information submitted in the initial application or the most recent renewal application.

If the renewal application is approved, the license remains active.

Along the with the license renewal application, Class 1 and Class 2 production licensees must also submit proof that a $1.5 million bond, an irrevocable letter of credit or other comparable surety approved by the Commission has been maintained for the year. They must also submit detailed records documenting the involvement of minorities and women, as detailed in the regulations.

A dispensing license is renewed if the Class 1 or Class 2 production license has an active status with no unpaid and undisputed fines with the Commission. The expiration of a Class 1 or Class 2 production license automatically results in the expiration of all dependent dispensing licenses.

Georgia Cannabis Taxes

A Controlled Substances Tax is imposed on the use, possession, consumption, storage or transfer of marijuana. The tax rate for marijuana is $3.50 per gram. The tax is not applicable to persons who lawfully possess marijuana under a medical prescription. (Ga. Code § 48-15-6)

Medical marijuana operators in Georgia are not exempt from applying rules of 280E section rule under state tax law, so the businesses cannot deduct business expenses other than cost of goods sold.

Cannabis Advertising Regulations in Georgia

(A) A dispensing licensee shall ensure that information regarding all product in final packaged form that is dispensed to patients shall be accurate, truthful, and appropriately substantiated as permissible by Commission rules.
(B) No dispensing licensee shall advertise or market product in final packaged form to patients, caregivers, or the public as set forth in Code Section 16-12-215(b).
(C) A dispensing licensee may provide information regarding product in final packaged form directly to physicians as set forth in Code Section 16-12-215, via electronic communication; printed mail pieces; or in-person communication.

(Rule 351-6-.07 – Advertising and Marketing)

Main steps in short

  • Understand regulatory and legal requirements. Do market research.
  • Decide on the type of cannabis business you want to start. Choose a location. Check local zoning regulations.
  • Develop a solid business plan. Secure financing.
  • Submit an application. Pay fees. Prepare and submit the required documents.
  • Final approval. Final fees. Final inspection.
  • Keep track of your ongoing compliance requirements.
  • License renewal.

Cannabis Testing Laboratory Business Plan Sample, Georgia

Georgia Cannabis Market

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How to Start a Cannabis Business in Georgia?