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To open a dispensary in West Virginia, you must obtain a medical cannabis dispensary license from the state’s Bureau of Public Health. The last application window opened in December 2019 and closed in February 2020. You must submit a site plan and an operating plan and obtain approval from the municipality where you plan to locate the dispensary before your application can be approved.
The West Virginia cannabis industry continues to make significant strides since the state's medical cannabis act was signed into law in 2017. According to the Office of Medical Cannabis statistics sheet published on October 6, 2023, the 53 operational dispensaries in the state reported more than $75 million in total sales. There are 27,732 patients registered under the state's medical cannabis program and over 2,000 jobs created through direct or indirect employment.
Despite the costs and hurdles of obtaining a cannabis business license in West Virginia, the opportunities for businesses in the state’s cannabis industry remain huge. The state’s medical cannabis market, while relatively new, is expected to grow significantly in the next few years.
West Virginia only has one type of dispensary license. To set up a dispensary in the state, you must obtain a medical cannabis dispensary license from the Office of Medical Cannabis.
You can obtain a medical cannabis dispensary license by submitting an application to the Office of Medical Cannabis in the State's Bureau of Public Health. Although the application window is not currently open in the state, the application process follows these guidelines:
You must submit all the required information and documentation for your application to be considered by the OMC. Note that the initial non-refundable application fee and the refundable dispensary permit fee must be submitted when the online application is submitted.
The initial application fee and permit fee must be two separate checks. The fees must be paid by certified check or money order payable to the West Virginia Department of Health and Human Resources and addressed to the Office of Medical Cannabis at 350 Capitol Street, Rm 523, Charleston, WV 25301. You must include the entity name and application reference number in the check's memo line.
For more information on applying for a medical cannabis dispensary license, see the medical cannabis organization checklist or contact the OMC at (304) 356-5090.
When completing an application for a medical cannabis dispensary license in West Virginia, the applicant must provide the following documentation and information:
In accordance with 4 CSR 109, Section 6.2, a site and facility plan and an operation plan are required for a medical cannabis dispensary license applicant.
This site and facility plan:
The operation must provide a summary of the intended plan of operation describing, at a minimum, how the applicant's proposed business operations intend to comply with the West Virginia Medical Cannabis Act and rules relating to:
Applicants are also advised to develop business plans prior to applying for a dispensary license. A business plan is a strategic tool to help entrepreneurs navigate the challenging process of starting and running a dispensary in West Virginia. A business plan should contain detailed information on market analysis, competitive analysis, customer segmentation, marketing strategies, and financial plan.
Yes. Before the Office of Medical Cannabis may grant an applicant a medical cannabis dispensary license, the applicant must present proof of municipal authorization as evidence of compliance with all local regulatory requirements. Some requirements mandate that dispensaries comply with local zoning regulations and obtain local business permits or licenses before operating in the jurisdiction. For specific information about municipal requirements, consult with the local government authorities in the city or county where you plan to open a medical cannabis dispensary.
The OMC announced winners of the medical cannabis licenses of the 2019/2020 application window in late January 2021. If the timeline remains the same for the next application window, applicants can expect to be awarded licenses in about 12 months after the closure of the application window.
Per Section 16A-8-2 of Article 8 of the West Virginia Medical Cannabis Act, a dispensary may not be located within 1,000 feet of a school or daycare center. However, the Bureau of Public Health may modify this requirement if an applicant can show clear and convincing proof that the amendment is necessary to provide adequate access to medical cannabis patients. For specific distance requirements and other regulations concerning where a dispensary may be located, contact the local authorities in the municipality where you plan to establish the cannabis facility.
The Office of Medical Cannabis allows West Virginia-licensed medical cannabis dispensaries to operate in multiple locations in the state. Some licensed dispensaries have stores in more than one West Virginia location.
The capital required to open a cannabis dispensary in West Virginia can vary based on the business scale and the chosen facility location. Still, it requires considerable funds to start a dispensary business.
Applying for a cannabis dispensary costs $2,500, while you must pay a $10,000 fee if the dispensary permit is granted. In addition to the requisite application and licensing fees, the establishment of a dispensary involves other expenses, such as those related to:
Overall, the total cost to set up and operate a cannabis dispensary in West Virginia ranges between $200,000 and $2,000,000.
Per Section 64-109-17 of the West Virginia Administrative Code, a medical cannabis organization must obtain and maintain an appropriate amount of insurance coverage insuring the site, facility, and equipment used in the facility's operation. Also, a medical cannabis dispensary must obtain and maintain workers' compensation insurance coverage for employees. Consequently, the following coverages are recommended for dispensaries in West Virginia:
Due to the high costs associated with starting a cannabis business, financing a cannabis dispensary can be challenging. Many lenders consider cannabis ventures high-risk businesses and traditional banks do not typically offer loans to entrepreneurs due to the federal ban on cannabis.
However, you may try these alternative sources to raise funds for your dispensary:
West Virginia has no state social equity program for medical cannabis dispensary license applicants disproportionately harmed by cannabis prohibition.
According to Section 16A-9-1 of the West Virginia Medical Cannabis Act, the state levies a 10% cannabis dispensary tax (CDT) on the gross receipts accrued or received on medical cannabis for medical cannabis dispensaries during a quarterly period. The dispensary will not add this tax as a separate charge on any sales slip, invoice, receipt, or memorandum of the price paid by a patient or caregiver. The West Virginia Tax Division collects the CDT.