Cannabis Legalization and Regulation in Maine
Maine legalized adult-use cannabis in 2016 through a voter-approved initiative, with retail sales beginning in October 2020. Adults 21 and older may legally possess up to 2.5 ounces of cannabis flower or concentrates (no more than 5 grams of concentrates). Home cultivation is also permitted, with each adult allowed to grow up to three mature plants, 12 immature plants, and unlimited seedlings, capped at six mature plants per household. Public consumption is prohibited, and impaired driving remains illegal.
The Office of Cannabis Policy (OCP), within the Maine Department of Administrative and Financial Services, regulates both adult-use and medical cannabis. The OCP licenses cultivators, manufacturers, testing facilities, and retailers, and enforces rules on seed-to-sale tracking, packaging, labeling, and product testing. Municipalities may opt in or out of allowing adult-use cannabis businesses, creating localized market variation.
Maine’s medical cannabis program, established in 1999, continues alongside adult-use sales. Registered patients may possess up to 2.5 ounces of usable cannabis and cultivate up to six mature plants, 12 immature plants, and unlimited seedlings. The medical program allows for caregivers, who may grow and provide cannabis for registered patients, making it one of the more flexible medical programs in the country.
Hemp and hemp-derived CBD products are legal in Maine if they contain no more than 0.3% THC. However, intoxicating hemp-derived cannabinoids such as delta-8 THC are regulated under Maine’s cannabis framework and must be produced and sold through licensed cannabis businesses. All cannabis and hemp products must meet testing, labeling, and packaging standards set by the OCP.
For cannabis operators, Maine is a mixed market with opportunities in both adult-use and medical sectors. Banks and financial service providers require thorough compliance documentation, including license verification, tax IDs, ownership disclosures, financial statements, and operating agreements. Because transactions remain cash-intensive, secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready accounting are required. Compliance with Maine’s cannabis excise tax (10% on adult-use sales) and sales tax obligations is critical for financial stability.
The Maine Office of Cannabis Policy regulates all cannabis operations in the state. For official program information, licensing resources, and compliance updates, visit:
https://www.maine.gov/dafs/ocp
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