The Bureau of Medical Marijuana Regulation is standing firm on their position that all marijuana facilities that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will need to close down, and will get a cease and desist letter at that time. While the facilities are not mandated to shut down, the State Bureau of Licensing and Regulatory Affairs has explained that any facility that continues to operate after receipt of the cease and desist will most likely not be granted a license. Further, the State has set forth suggested Final Rules regarding Medical Marihuana Facilities licensing, which is going to enable or registered qualifying clients to obtain home shipments from provisioning centers (with restriction, certainly) as well as will also allow online buying. So, where does that leave registered caregivers, who were anticipating to be able to remain relevant to their clients until 2021?
Traditional
The old model for registered caregivers was rather simple. You were allowed to grow up to twelve plants for each patient. You could have five patients, besides yourself. If the caregiver was also a patient, they could also cultivate twelve plants for individual usage as well. So, a caregiver could cultivate a total amount of seventy-two marihuana plants. The majority of caregivers generated far more usable marihuana from those plants than they could utilize for patients and personal usage. The caregivers would then sell their excess product to medical marihuana dispensaries.
Under the emergency rules, marihuana dispensaries that were running with municipal approval, but that had actually not received a State license were permitted to proceed operating and buying from registered caregivers. Those facilities were allowed to get caregiver overages for thirty days after getting their State license for supply. That meant significant revenues for caregivers as well as significant supply for dispensaries.
After September 15, 2018
The troubles for registered caregivers only starts on September 15, 2018. All State licensed facilities that will stay open and operating can not buy any kind of product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly banned from getting or selling any type of item that is not produced by a State Licensed Cultivator or Processor that has actually had their product tested and certified by a State Licensed Safety Compliance Facility. Any State Licensed Provisioning Center that is found to have product up for sale that is not from a State Licensed Grower or Processor is subject to State sanctions on their license, including short-term or irreversible retraction of the license. Given the threat, licensed facilities are very unlikely to run the risk of buying from a caregiver, offered the prospective effects.
Further, the unlicensed centers to whom caregivers have been continuing to sell to, even throughout the licensing procedure, will be closing down. Some may continue to operate, but given the State's position on facilities that do not adhere to their cease and desist letters being looked at very unfavorably in the licensing process, the market will certainly be significantly diminished, if not eliminated. Therefore, caregivers will not have much option for selling their overages, and will be limited only to their present clients.
New Administrative Rules
A hearing will be held on September 17, 2018 relating to the new suggested final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules stop being effective. Those final recommended administrative rules enable house delivery by a provisioning center, and will likewise permit managed online ordering. Those 2 things take away much of the function contemplated by caregivers under the new regulations. Clients would certainly still need them to head to the provisioning facility to get and deliver marijuana to patients that were too sick or that were disabled and can not get to those licensed facilities to obtain their medicinal marijuana. With this adjustment to the administrative rules, such patients will no longer require a caregiver. They will have the ability to place an order online and have the provisioning center deliver it to them, basically removing the need of a caregiver.
Verdict
For better or worse, the State is doing everything it can to eliminate caregivers under the brand-new administrative scheme, even prior to the prepared elimination in 2021 contemplated by the MMFLA. There are a great deal of reasons the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is doing away with the caregiver , and they are moving that process along with celerity. The State is sending the message that they desire caregivers out of the marketplace immediately, and they are developing rules to guarantee that occurs sooner rather than later. The caregiver model, while useful and necessary under the old Michigan Medical Marihuana Act structure, are now going the way of the Dodo. Like everything else, the Marihuana legislations are evolving, and some things that have flourished in the past, will not make it to see the brand-new legalized era.
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