Main steps in short:

• Understand regulatory and legal requirements. Do market research.
• Decide the type of cannabis business. 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.
• Register your business as an employer and a tax payer.
• Keep track of your ongoing compliance requirements.
  • Cannabis Taxes
  • Cannabis Advertising Regulations
• Permit renewal.

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

The West Virginia Medical Cannabis Act was signed into law on 19 April, 2017, by Gov. Jim Justice. It legalized the consumption of cannabis for medical purposes by West Virginia residents with a qualifying serious medical condition – if the patient is terminally ill or has cancer, HIV/AIDS, ALS, Parkinson’s disease, multiple sclerosis, spinal cord damage, epilepsy, neuropathies, Huntington’s disease, Crohn’s disease, post-traumatic stress disorder, intractable seizures, sickle cell anemia, or “severe chronic or intractable pain in which conventional therapeutic intervention and opiate therapy is contraindicated or has proved ineffective as determined as part of continuing care.”

West Virginia Cannabis Market

The Bureau for Public Health (Bureau) is responsible for issuing medical cannabis permits. Initially, no more than 10 grower permits (with up to two locations per grower), up to 10 processor permits and no more than 100 dispensary permits could be issued. The Bureau also issues permits to testing laboratories for which there are no limits.

2. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis License Types Available in West Virginia

The Bureau publishes on its website notice of permit application availability and the time frame during which permit applications will be accepted. As of May 2025, the Bureau is not accepting applications for medical cannabis growers, processors and dispensaries. Only applications for testing laboratories are still accepted.

A grower or a processor may not also possess a dispensary license. More than one individual grower or processor permit may not be issued to one person.

3. Develop a solid cannabis business plan. Secure financing.
4. Submit an application. Pay fees. Prepare and submit the required documents.

Information required to be included in an application for a grower, processor or dispensary permit is not limited to:

• Legal name of the applicant.
• Certified copies of the applicant’s organizational documents, if applicable, and if the applicant was not organized in the state of West Virginia, evidence that it is authorized to conduct business in the state.
• Physical address of the applicant’s proposed site and facility, including the following, as applicable:
  • Evidence of the applicant’s legal title to or option to purchase the proposed site and facility.
  • A fully executed copy of the applicant’s unexpired lease for the proposed site and facility with the consent of the property owner to use the site and facility for the term of the medical cannabis permit.
• Evidence that the applicant is or will be in compliance with the zoning requirements of the municipality where the applicant intends to operate.
• The name, residential address, date of birth, title and a CV of each principal, operator, financial backer, and employee, or of any person holding an interest in the proposed cannabis business, along with:
  • Verification of identity.
  • Evidence of good moral character and reputation.
  • Copy of a criminal history records check.
• Evidence of applicant’s experience, if any, of running an organization or other business.
• A description of the duties, responsibilities and roles of each principal, operator, financial baker, and employee.
• Details relating to a similar license, permit or other authorization obtained in another jurisdiction, including any suspensions, revocations or discipline in that jurisdiction.
• An affidavit that the applicant has the following capital:
  • Grower/processor: at least $2,000,000 in capital, $500,000 of which must be on deposit with one or more financial institutions.
  • Dispensary: at least $150,000 on deposit with one or more financial institutions.
• A timetable outlining the steps the applicant will take to become operational.
• A summary of the intended plan of operation that describes, at minimum, the rules relating to:
  • Security.
  • Employee qualifications and training.
  • Transportation of medical cannabis.
  • Storage of medical cannabis.
  • Labeling of medical cannabis.
  • Inventory management.
  • Recordkeeping.
  • For grower/processor’s facility, policies and procedures for growth of medical cannabis as well as quality control and testing of medical cannabis.

The last requirement can be presented in the form of a business plan. Preparing a professional cannabis business plan is simplified with our cannabis business plan templates, customized for a range of activities.

Information required to be submitted with an application for a testing laboratory is not limited to:

• Name and address of the laboratory applicant or its authorized agent.
• Name and address of the owner of the laboratory applicant, and, if applicable, the medical or pharmacy licensure information regarding the owner.
• Name of the laboratory applicant’s proposed director and technical personnel who are or will be employed by the laboratory.
• A copy of the laboratory applicant’s most recent valid certificate of accreditation granted from an ILAC MRA recognized accreditation body.
• Copies of the standard operating procedures and sampling procedures adopted by the laboratory applicant and approved by the accreditation body that issued the certificate of accreditation to the laboratory applicant.
• A list of the specialized laboratory equipment utilized or to be utilized by the laboratory in its testing operations, including manufacturer’s name and the serial and model number of the equipment.
• Description of the accredited tests which the laboratory applicant will be able to perform at the location to be approved.
• Description of the quality assurance program.
• Procedures to be followed to establish a chain of custody when collecting samples or test samples.
• Copy of the evaluation process that the laboratory applicant uses or will use to monitor, evaluate and document the competency of employees when testing samples and test samples and overseeing quality assurance controls.

5. Register your business as an employer and a tax payer.
6. Keep track of your ongoing compliance requirements.

It is required that a medical cannabis organization obtains and maintains an appropriate amount of insurance coverage that insures its site, facility and equipment used in the operation of the facility. The medical cannabis organization must also obtain and maintain workers’ compensation insurance coverage for employees.

Additionally, medical cannabis organizations must submit the following reports to the Bureau, at the end of the first 12-month period following the issuance of a permit and then at the end of each three-month period:

• For growers/processors:
  • Amount of medical cannabis sold.
  • The per-dose price of an amount of medical cannabis sold.
• For dispensaries:
  • Amount of medical cannabis purchased.
  • The per-dose price of medical cannabis purchased.
  • The per-dose price of an amount of medical cannabis dispensed to a patient or caregiver.

7. Permit renewal.

An application to renew a permit must be submitted no more than 6 months and no less than 4 months prior to expiration.

Along with the application for the renewal, the following information must be submitted:

• Any material changes in the information provided by the medical cannabis organization in a prior application or renewal of the permit.
• Any charge or initiated, pending or concluded investigation, during the period of the permit, by any governmental or administrative agency with respect to:
  • An incident involving the theft, loss or possible diversion of medical cannabis possessed by the applicant.
  • Compliance with the laws of West Virginia with respect to any substance listed in the Uniform Controlled Substance Act.

West Virginia Cannabis Taxes

There is a tax of 10% imposed on the gross receipts a medical cannabis dispensary receives or accrues during the reporting period.

Cannabis Advertising Regulations in West Virginia

A medical cannabis organization shall not advertise in a manner that:

• Can reasonably be considered to target individuals under the age of 21.
• Specifically encourages the transportation of medical cannabis items from across state lines or otherwise encourages illegal activity.
• Displays consumption of medical cannabis items.

In any advertisement of medical cannabis, the following statements must be displayed in a font size legible to the viewer:

• “Do not operate a vehicle or machinery under the influence of this drug.”
• “Keep out of the reach of children.”

A medical cannabis organization may only use television, radio, billboards, print media or internet media for advertising if there is reliable evidence that no more than 30% of the audience is reasonable expected to be under the age of 21.

Cannabis Retail Business Plan Sample, West Virginia