You might be considering starting a marihuana provisioning center in Michigan. Now, after the passage of the Medical Marihuana Facilities Licensing Act or the MMFLA (M.C.L. 333.27401 et seq.) that is possible, but only if you get municipal approval and a State issued operations license. "Provisioning Center" is the legally permissible term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was previously referred to colloquially as a "dispensary." The current regulations no longer permit such companies to be referred to legally as "dispensaries" and the State requires that they be referred to as marihuana provisioning centers. A provisioning center is essentially a company where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) can come to buy medical marihuana for medical usage. While a provisioning center can be a lucrative venture, there are a few things you to know before you move forward.
Can You Transport Marijuana In A Personal Vehicle?
Presently, under Michigan law, the basic rule is that possession and transport of marihuana in a car is prohibited by law, and subjects you to criminal penalties. Only registered qualifying patients and registered caregivers under the MMMA may transport marihuana in a automobile. Even then, they must do so in strict compliance with the MMMA. Cannabis may only carried in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or persons in the traveler compartment. You might likewise not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers may carry usable marihuana for up to five patients (and themselves too if the caregiver is also a qualifying patient) or up to 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, however, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their facility that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located ( connected to or on the same property) and transportation of the marihuana will not occur on a public street, it can be moved as stated by LARA, BMMR under the Administrative rules.
Just How Much Cannabis Can You Offer?
A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana daily to a registered qualifying patient. A provisioning center that is licensed may likewise offer to a registered primary caregiver, but not more than 2.5 ounces per qualifying patient attached to the caregiver's license. If you are licensed by the State to run a provisioning center, you will need to use a point of sale system that has software that is complaint with the Statewide Monitoring Database, which uses a software program called METRC. The State permits the use of twenty-four (24) software programs that are METRC compliant. Every customer who enters a provisioning center, you will have to use a point of sale system that has software that is compliant. Every client who enters a provisioning center must have their card run through the Statewide Monitoring Database to make sure that they have not already been supplied their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center must likewise update the qualifying patient's profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was purchased by the patient at your provisioning center.
What License Do You Need?
You need a full license supplied by the state to run as a Michigan provisioning center. If you are growing cannabis, you will likewise need to make sure that you get a Michigan commercial grow license application. You may want to speak with an MMFLA lawyer, such as Fowler & Williams, PLC, about this to guarantee that you are fully licensed, or you will be shut down. Most importantly, DO NOT begin running your provisioning center without a State license being issued to you under the MMFLA. While the process of getting a license is intricate and requires a significant amount of time and money, the success of these provisioning centers far outweighs the cost of getting one. If you can get approved for a license and get through the application process to acquire a provisioning center license, you ought to do so before you start running.
Can You Get More Than One License?
Yes, you can apply and qualify for more than one license. This is useful for any business or person who wants to set up a provisioning center and a grow or processor at the same time. According to the law, there is absolutely nothing stopping you from doing this. Even more, you can get numerous provisioning center licenses so that you can run several provisioning centers in different cities. The licenses do not attach to the individual or the business that is using, allowing you to use it anywhere you want. Rather, the licenses connect to the property you list on your application for the business. Therefore, if you want to open numerous provisioning centers, you will have to send multiple State applications. If you want to get different kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, however you should submit separate applications for each license type, and must fulfill the minimum financial and background requirements separately for each license type.
Just How Much Will A License Cost?
The cost for the license application to the State is $6,000.00 per application, regardless of license type applied for, including for a provisioning center. There are also municipal application costs, which can be approximately $5,000.00 per application. Each municipality is different, and they can charge different fees, and they can vary the fees depending on which type of license you apply for. Generally, nevertheless, they charge the maximum permitted, which is $5,000.00 per license application. Even more, after you receive a State license, there are regulatory assessments that will need to be paid yearly, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 0.00).
Class A Growers have a $10,000.00 regulatory assessment.
Class B and Class C Growers, Provisioning Centers and Processors have a $48,000.00 regulatory assessment.
The State has actually stated that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the kind of license provided. In the meantime, however, the assessments will remain as noted above. You will also discover that there are other professional fees that you will need to pay in order to guarantee that your application is complete, and that your business plan, with all of its necessary parts, is up to par with the State's application requests. Those expenses can vary drastically, and are tough to anticipate.
Needless to say, the application and licensing procedure is an expensive venture, however in a market that is slated to do about $891,000,000.00 in annual sales this year, up from about $741,000,000.00 in 2017, the return on investment could be considerable.
Should You Have A Lawyer?
While not mandatory, you should certainly ensure that you are obtaining guidance from an MMFLA lawyer before you think about opening a Michigan provisioning center. It is essential that you get the best possible legal suggestions and that you are following all the regulations and requirements. Only an lawyer experienced in handling cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can make sure that you have all the tools and guidance that you need to give your application the best chance at success. Failure to make sure that your application is complete, and that it provides support for your ability to currently comply and ensure future compliance with the Administrative rules, your application is much more likely to be rejected or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.
How Much Will This Business Cost?
You can expect the total start-up costs for this type of company to be anywhere between 400 and 500K, at a minimum. While the State needs a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not suffice, realistically, to begin business. You will need to potentially purchase land or property in an opted-in municipality. (Here is an up to date list of Michigan Municipalities currently opted-in to MMFLA) There will be obligatory fees, expenses, and expert services that you need to obtain to ensure that your application is accurate and total, and to make sure that you are currently in compliance with all laws and guidelines, as well as guaranteeing future compliance. This includes everything from licensing to a complete team of employees and much more. It's certainly not cheap, and you need to be prepared for a heavy financial investment. Nevertheless, as noted above, the marketplace is large, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is presently unlawful to run one in the state of Michigan. However, this might change, and that's why it is very important to talk to a medical marihuana attorney frequently, so that you are keeping up to date with changes to the law. Marijuana law is an evolving and changing field, and as a result, there might come a time where the MMFLA or the MMMA is amended to permit a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole function is to supply safe medical marihuana to registered qualifying patients. You may only sell marihuana or marihuana infused products that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the products have been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not sell these items prior to your obtaining a license, unless you were operating with city approval prior to February 15, 2018 and you have actually already submitted an application to the State looking for a license.
Soon a change in law will likely allow for recreational cannabis sales. If the ballot initiative passes, for the first 2 years after the State passes recreational cannabis facility regulations and begins accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally permitted to get recreational marihuana licenses for the same activity. Therefore, getting a provisioning center license under the MMFLA, offers you the chance to go into the recreational market, where others will not.
What Are The Requirements?
In order to make an application for a provisioning center license, you need to ensure that you do not have a disqualifying criminal conviction, and that you satisfy the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will also have to acquire an properly zoned structure in a city or municipality that has "opted-in" to the MMFLA to permit such facilities to run within their borders. Whether your own it or rent it does not matter, however you must have the structure. After that, you will have to produce a business plan which contains all of the required elements from the state, consisting of a security plan, facility plan, marketing plan, staffing plan, technology plan, recordkeeping plan, waste disposal plan, and more, showing that you will abide by the State's guidelines now and in the future.
Conclusion
We hope this offers you with some of the info you need before opening a Michigan provisioning center. Needless to say, the process is pricey, intricate and time consuming, but the benefit and ROI can be substantial. In reality, acquiring a qualified MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take the majority of the work off your plate.
If you want information, or want to come in and discuss requesting a provisioning center license, we would enjoy to have you come in for a consultation.
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