A marijuana processing license is a state-issued license that enables a business to manufacture marijuana products. The license allows a Cannabis Processor to create extracts, edibles, and other high-end products using cannabis. The state has two types of marijuana processor licenses: collective and non-collective. A collective license will enable a marijuana business to enroll people in its membership program. The other type, non-collective, means that the business cannot enroll members. Both business types must follow the Washington State Liquor and Cannabis Board’s (WSLCB) strict rules regarding the packaging and labeling of marijuana products.
In Washington State, voters approved the sale of recreational cannabis in 2012. The first recreational dispensaries opened in 2014. This allowed for the growth of new businesses that focused on marijuana processing and producing new types of cannabis products. Both medical and recreational dispensaries buy their inventory from Cannabis Processor or directly from producers or cultivators when they do not have the facilities to process the product themselves.
How To Become A Cannabis Processor?
Becoming a Cannabis Processor means following the lengthy and detailed application process. The WSLCB require that businesses submit several documents, including proof of ownership, financial statements, business plan, security plan, and more. Applicants must also submit two completed fingerprint cards with the WSLCB for an FBI background check. Once the WSLCB receives all necessary documents, the FBI will launch a background check. If this step comes back clear, the business license application will be considered by the WSLCB. If granted, applications will receive a marijuana processor license from the state. The Marijuana Processor license is suitable for three years and costs $250 to renew annually.
Cannabis processing is an essential part of the production process for dispensaries, producers, and cultivators. The marijuana industry has been overgrown in the past few years. So having a license to process cannabis is a precious resource for anyone who wants to be part of the industry.
Two Types Of Cannabis Processor Licenses:
1. Marijuana collective license
The WSLCB allows marijuana businesses to hold membership cards where they can legally “enroll” people into their businesses. The WSLCB only allows for one card per member; if a member is not present or moves out of state, their membership will have to be terminated by the processor. The WSLCB does not limit the number of members a collective can have, but each member’s membership requires $50 in payment at the time of membership. Collectives can charge fees or accept donations as long as no more than $350 per month in gross receipts from all members covers its operating costs.
2. Marijuana non-collective license
The WSLCB does not allow for collective membership but does allow for a non-collective license. Non-collectives cannot enroll members; however, they can charge fees for services. Non-collectives are exempt from many of the WSLCB’s rules regarding how marijuana products are packaged and labeled. Non-collective businesses must be licensed by the WSLCB and pay a yearly fee of $250.
What Are The Benefits Of Becoming A Cannabis Processor?
Being able to produce and sell your marijuana products gives you a particular advantage over other dispensaries. If you are in the market for those marijuana-related products. Being able to produce and sell your cannabis edibles, concentrates, or tinctures will allow you to profit from the sale of each product that you create. It is also most beneficial for Cannabis Processor to have their locations instead of relying on other dispensaries or farmers’ markets. Your manufacturing facility allows you room to grow as a business and protects you against issues such as supply shortages. If a producer decides to stop producing marijuana products at their facility, they can offer them up for sale through any processor who purchases from the original producer.
What Are The Risks Of A Cannabis Processor?
There are many risks associated with producing marijuana products. If you do not follow the WSLCB regulations and fail a mandatory lab test, you will penalized accordingly. The WSLCB has stringent lab testing procedures that all marijuana processors must follow. To pass a lab test, every step of the process must be considered. You need to ensure that there are no traces of pesticides and no more than 15 milligrams per serving of THC in an edible product. The Cannabis Processor must also safely dispose of excess marijuana waste. If any of these steps not taken correctly, they can cause the processor to fail a lab test. This can be very detrimental to the success of their business.
Another risk associated with marijuana production is that your facility could be subject to police raids and search warrants if they are not up to the code regarding regulations. Since marijuana is still illegal on a federal level, many states do not allow producers, processors, or dispensaries to grow or sell all types of medical or recreational cannabis, which includes CBD hemp oil, recreational concentrates, and edibles. The best thing to do if your state does not allow for the sale of a specific product is to educate yourself about it to understand why. Then you can work on changing the law if you believe it is unjust or does not make sense.
Becoming a Cannabis Processor means you are responsible for producing cannabis products such as edibles, concentrates, tinctures, and more. Marijuana processors must follow strict regulations set by the Washington State Liquor and Cannabis Board (WSLCB) to remain in compliance. If you want to become a marijuana processor, you must understand the licensing process and all of the other required documents needed. The WSLCB will conduct background checks on applicants before they are approved for a cannabis processing license.