Michigan Marijuana Laws for Businesses

Michigan Marijuana Laws

for

GROWERS, PROCESSORS, PROVISIONING CENTERS (DISPENSARIES), SECURED TRANSPORTERS, or SAFETY COMPLIANCE FACILITIES

under

Michigan’s Medical Marihuana Facilities Licensing Act and Michigan Regulation and Taxation of Marihuana Act (Proposal 1)

 

EXPERIENCED & KNOWLEDGEABLE MARIJUANA ATTORNEY IN WEST MICHIGAN

Starting a successful new business requires research. Starting a new business in a new and formerly illegal industry requires extensive research. You will need to acquire the appropriate licenses, fill out the right paperwork, and make sure the legality of your business is firmly, properly established. Doing this on your own can be nearly impossible, especially in an environment where the rules and regulations are frequently changing. In order to ensure your business has everything it needs to survive and thrive, make sure you discuss your plans with an experienced, knowledgeable marijuana attorney.

 WHY CHOOSE THE LAW OFFICE OF STEVEN G. STORRS?

Personal Relationships. Unlike larger firms, you will work directly with Attorney Storrs throughout the application process. Attorney Steven Storrs has been following of MMFLA since in inception and prepared the application for one of the first licensed growers in west Michigan. Attorney Storrs will not only work with you in drafting your application, but can also work with your local municipality to ensure that your business can be located where you desire.

 LICENSING FOR MARIJUANA BUSINESSES

The enactment of the Medical Marijuana Facilities Licensing Act (MMFLA) and the Michigan Regulation and Taxation of Marijuana Act (MRTMA), Michigan has established a way for entrepreneurs to pursue medical and recreational cannabis businesses. However, because Michigan’s recreational marijuana law, the MRTMA is so new, potential businesses may be better off applying for a commercial license for medical marijuana before applying for a recreational marijuana commercial license.

 Medical marijuana business licenses are broken down as follows:

  1. Growers, based on marijuana plant count

    a. Class A – 500 plants

    b. Class B – 1,000 plants

    c. Class C – 1,500 plants

  2. Processors

  3. Provisioning Centers (also called dispensaries)

  4. Secured Transporters

  5. Safety Compliance Facilities

 All marijuana plants and products are tracked and monitored through a statewide monitoring system (Metrc) to ensure patient safety and to prevent theft or diversion of product to the black market. The extremely regulated supply chain for the commercial medical marijuana industry in Michigan creates a distinct role for each of the five facilities: the grower, processor, dispensary, transporter, and the safety compliance facility. As a result, the MMFLA has facilitated tremendous opportunities for entrepreneurs that desire to start marijuana businesses.

 HOW TO GET STARTED WITH A MARIJUANA BUSINESS IN MICHIGAN

If you wish to start a lawful marijuana business in Michigan and obtain the correct licensing in accordance with the MMFLA, you will need the help of an experienced marijuana lawyer. If you are ready to begin your business, Attorney Steven G. Storrs will provide the direction and legal guidance that you need.

 WHAT WILL IT COST?

The licensing process can be expensive. The Michigan Department of Licensing and Regulatory Affairs (LARA) has established the Bureau of Marijuana Regulation (BMR) to handle all matters related to commercial marijuana business licensing.

The BMR has established two different categories of fees at the state level:

  •  First, there is a $6,000 application fee for all applicants.

  •  Second, there is an annual regulatory assessment fee. These fees are currently set as follows:

    Growers: Class A - $10,000, Class B - $66,000, Class C - $66,000

    Processors - $66,000

    Provisioning Centers - $66,000

    Secured Transporters - $66,000

    Safety Compliance Facilities - $0

  • In addition to the fees above, applicants will also have to pay a licensing fee to the local municipality where their business will be located. This fee cannot exceed $5,000 annually.

The BMR has also established capitalization requirements for all potential applicants. According to the BMR, all applicants must submit CPA-attested financial statements to meet the following capitalization requirements:

  • Growers:

    Class A - $150,000 ($37,500 in liquid assets)

    Class B - $300,000 ($75,000 in liquid assets)

    Class C - $500,000 ($125,000 in liquid assets)

  • Processors - $300,000 ($75,000 in liquid assets)

  • Provisioning Centers - $300,000 ($75,000 in liquid assets)

  • Secure Transporter - $200,000 ($50,000 in liquid assets)

  • Safety Compliance Facility - $200,000 ($50,000 in liquid assets)

 THE APPLICATION PROCESS TAKES TIME

The application process can be quite intensive. In order to protect their interests and get through the process quickly, applicants will need a team of professionals on their side. When you work with a professional attorney and other marijuana experts, it can help ensure an applicant meets the rigorous and stringent licensing standards established by the state and local government. Most applicants will require the services of an attorney, an architect, a CPA, a commercial real estate agent, and licensed contractors.

 GETTING STARTED

Attorney Steven G. Storrs has been with the Michigan Medical Marijuana Facilities Licensing Act (MMFLA) since in inception and prepared the application for one of the first licensed growers in West Michigan.

 If you have questions regarding a marijuana license in Michiganplease call me, Attorney Steven Storrs, at 269-945-2242 or click here to contact me to set up an appointment to discuss your options.

 *This blog is intended for informational purposes only and does not constitute legal advice. The laws regarding marijuana are frequently changing and this post may not be up-to-date. Please consult an attorney before making important decisions regarding your individual situation.