Where a state has legalised cannabis, licensing is typically split between a state agency and local governments with substantial control.
Local opt-in or opt-out. Many statutes permit municipalities to prohibit establishments entirely, or to authorise them and cap the number by type.
Selection processes. Where demand exceeds a cap, municipalities score applicants against published criteria. Litigation over these processes is frequent, and the defensible ones use objective, published criteria, a recorded scoring process, and a written decision.
Zoning. Districts where establishments are permitted, buffer distances from schools, parks, residential districts and other establishments, measured by a defined method — property line to property line, or door to door — which should be stated precisely.
Operational conditions. Hours, odour control, security plans, waste disposal, signage and delivery.
State-local interaction. A state licence generally does not override local zoning, and a local approval does not substitute for the state licence.
Federal status. Remains an obstacle for banking, bankruptcy access, insurance, and federally assisted property, which shapes lease and financing structures.
Leases. Landlord considerations include federal forfeiture exposure, mortgage covenant compliance, and the tenant’s inability to use bankruptcy.