ABSTRACT
Cannabis licenses are generally awarded in one of two different manners: competitive processes (sometimes called merit licensing) and non-competitive processes. The difference between the two systems is that merit licensing typically involves the award of a limited number of licenses to applicants in the competitive, ranked process, whereas a non-competitive process will award licenses to any applicant who meets the minimum standards. These systems can exist at both the state and local level, or only one of the two, and states vary considerably in their approach. The chapter also provides an overview of the different kinds of cannabis licenses that are awarded, from vertically integrated licenses to testing licenses. And the chapter also covers typical licensing actions, which include renewals and changes of ownership.
