Am I All set To Apply for a Medical Marihuana Facilities Grow License?

Thinking about starting a Medical Marihuana Grow so that you can supply cannabis to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver that wants to take your product commercial on a larger scale? Thanks to the Medical Marihuana Facilities Licensing Act, now you can do so legally, so long as you can successfully obtain a license from the State to do so. This could be a great opportunity with several brand-new owners seeing remarkable degrees of revenue and success in the market. Nevertheless, if you make this choice, you do need to make sure that you get a Michigan commercial grow license. Failing to do so will certainly cause your endeavor being, more than likely, illegal as well as bring about court action that will certainly paralyze your service before it starts.

Regrettably, the Michigan commercial grow license application is a long, complex as well as costly process. Ask a medical marijuana lawyer, and also they will certainly tell you that you need to make sure that you are prepared. Let's look at the actions you will certainly have to take, the team you need to build and also the position that you could find yourself in.

Who Can Apply?

The very first question to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. Fortunately is that anybody, an individual or a full business can apply for a license. Applications started in 2017, and there is presently no target date to finish the necessary forms. Certainly, there are certain individuals, that, since they can not fulfill the minimum economic demands, or due to the fact that they have a disqualifying criminal conviction in their background, are precluded from applying. Nonetheless, thinking you do not have a disqualifying criminal conviction, as well as you, or your group of financiers, satisfy the minimal financial needs, there are 2 primary actions to the MMFLA licensing application process. The very first step will certainly be completed whether you have a final location for your building or not. Nevertheless, if you have actually already selected a place before sending your State application, something that we extremely recommend, you can finish both steps at the exact same time.

Pre-Qualification

Pre-qualification is the primary step, and it starts with an extensive background check. There are two sections-- 401 and also 404 of the Medical Marihuana Facilities Licensing Act (M.C.L. 333.27401 et seq.) to refer to when establishing who you need to legally reveal as well as whether they have a relevant business interest in your operation. This consists of individuals such as the spouse of the individual and also all corporate officers. This is among the reasons that it is worth consulting with an MMMA lawyer as it can be rather difficult to get all the information correct. The State will want to do a deep dive into the backgrounds of not only all of the "interested parties," or members/owners of your cannabis organisation, but the State will certainly also check out the backgrounds of every one of those person's spouses too. Should anyone have a disqualifying criminal conviction in their past, or otherwise be of "good moral character," the State can deny the entire application. In other words, if there is one bad apple in the bunch, the State throws out the whole application. Consequently, it is very important to learn about the histories of the individuals you have in your investment group, prior to applying for your Medical Marihuana Facilities License. There are a great deal of things that a skilled lawyer can do to assist you prepare for your application, and to ensure that any type of potential problems with your application are understood, divulged or prepared for before the application is submitted. However, this isn't the only reason a lawyer will typically be an essential and necessary hire.

Think about The Cost

Before your details can be assessed by an expert from the Bureau of Licensing and Regulatory Affairs (LARA), Bureau of Medical Marihuana Regulation (BMMR), you need to pay a $6000 fee for your application. BMMR will refuse to move forward with your application until this has been paid completely. As well as being costly, this fee is non-refundable so you want to make certain that there are no issues with your application that can cause it being rejected. An MMFLA attorney can guarantee that this is the case and help you navigate any kind of tricky problems. Better, before you can obtain State approval for operation, you will certainly also need to obtain a municipal or city authorization. Each city or township will certainly also need you to complete an application as well as you will need to pay an application fee there also. The application cost can range depending on what the city wants to charge, however, they can not charge more than $5,000.00. The majority of cities as well as townships are charging the maximum amount. In total, the application charges alone are most likely to be in excess of $10,000.00. That doesn't consist of the costs of ancillary services, such as accounting professionals, designers, marketing professionals and also various other services required for your application to be full.

Once you have gathered as well as paid the application fees, all applicants and supplemental applicants will certainly have their finger prints taken. You might think that if you currently have had your fingerprints taken by local law enforcement this step can be avoided. Nonetheless, BMMR will certainly not accept finger prints unless they are asked for as well as collected by them through the licensing procedure. You will need to go to an approved place where your fingerprints can be collected digitally and also submitted for evaluation by the State.

Facility License

This is the 2nd step and remember, if you have already selected an area to grow marijuana, you can complete this step with the first. You should be prepared to satisfy all the MMFLA rules. During this step, you will certainly need to have a business plan. Nonetheless, that plan has to include certain things. You must have all of the components called for by the State: facility plan, security plan, marketing plan, staffing plan, technology plan, waste disposal plan (if applicable), as well as a record keeping plan. There are specific minimum requirements stated in the Administrative Rules that regulate MMFLA facilities, with which you must show your business is in compliance.

Your facility has to be located in a city or township that allows MMFLA organisations to run. The MMFLA has strict regulations for people and companies preparing to grow in a municipality. If you want to grow in a community, it has to have an ordinance that authorizes marihuana facility operations. Colloquially, the municipality should have "opted-in" to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities that have opted in to MMFLA), and also it should have passed a regulatory ordinance that sets for the rules and also standards for those centers to run within the city or township. The complete guidelines can be found in 205, however if you do have any inquiries you need to contact your municipal authority. Or, additionally, get your legal representative to do this for you. As the application progresses, BMMR will certainly get in touch with candidates, giving details on any kind of various other demands, consisting of a pre-licensure inspection of your location or facility.

Authorized

Ultimately, you may gain approval for your license. After you are notified of this, you will certainly need to pay for a regulatory assessment. Presently, the regulatory assessments for 2018 are as follows:

Safety Compliance Facility and Secured Transporters-- $0.00.

Class A Grow License-- $10,000.

Class B Grow License-- $48,000.00.

Class C Grow License-- $48,000.00.

Processor and Provisioning Center-- $48,000.00.

Likely, the State will establish an across the board equivalent regulatory assessment for all licenses in 2019. Regulatory assessments are subject to change each year, so it is impossible to predict specifically what it will be. Nonetheless, starting in 2019, despite which license you acquire, expect the assessment to be imposed as well as for that assessment to be substantial.

Verdict.

We hope this helps you determine whether you are ready to apply for a Michigan commercial grow license. Remember, with an attorney at hand, this process can be far easier, as well as you will obtain expert advice on just how to proceed appropriately to make sure that your application is accepted. Even after you get approval, legal guidance is recommended to guarantee you stay on top of adjustments to the legislation and also policies, and so that you can continue to be in compliance and also keep your company open.

Here at Fowler & Williams, PLC, we focus on helping customers obtain MMFLA licenses and ensuring continuing compliance.

Should you choose to retain counsel to help you on your licensing journey, give us a phone call.

10 Things You Need To Know Before Opening A Marihuana Provisioning Center

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.

provision center

October 31, 2018 Deadline for Caregivers and The Changing Marihuana Dynamic in Michigan

Caregivers and the DoDo

Marijuana and extinct birds would seemingly never ever show up in any type of conversation. Nevertheless, in speaking with our cannabis clients, much of them are asking about the feasibility of the Caregiver model, especially as it was promoted many years. What several in the industry have referred to as the "Caregiver Model" is going the way of the Do-Do bird on October 31, 2018. Halloween this year will be the extinction event for the caregiver model as several have recognized it for several years here in Michigan. While Caregivers will continue to have the ability to grow and market to their registered patients, and for themselves, if they are additionally registered qualifying patients, the "gray market" where they were offering their excess, and making a fairly good revenue, is coming to an end.

What was the "Caregiver Model?"

Under the old "Caregiver Model," a Registered Caregiver could grow up to seventy-two (72) marihuana plants, if they had 5 registered qualifying patients (the most you were permitted) and they were a registered patient also. In some cases, several caregivers would collect at one place and grow their crops together, divided by paint lines on the flooring, or in more innovative scenarios, with each having a safeguarded locked area within the bigger enclosed, locked facility. Many Caregivers could produce far more useful marihuana than their patients can utilize. Those caregivers would certainly then sell their excess to dispensaries, many of which were running with municipal approval throughout the State. This "grey" market caused substantial revenues for lots of caregivers and dispensary owners. Under Michigan's Medical Marihuana Facilities Licensing Act, nonetheless, caregivers were mosting likely to be terminated by 2021. Lots of Caregivers and industry insiders felt that indicated the "Caregiver Model" could continue to generate those exact same revenues for an additional 2 or two and a half years. The State, nonetheless, had other plans.

The State's Response

The State of Michigan, however, had other plans for the upstart cannabis market. Initially, the Bureau of Licensing and Regulatory Affairs has taken a really scrutinizing approach to licensing applications where any of the candidates were Caregivers. Many of those applications have been denied over the past several months due to the fact that the Board has found that there were failures to reveal by most of these caregivers regarding how much cash they made, just how they made it, and for failure to declare that income on a State or Federal Tax Return. Nevertheless, in a September 2018 publishing, LARA and the BMMR published that all centers that are operating with municipal approval, but which have actually not gotten a State License, have to quit getting unlabeled and unauthorized medical marihuana on October 31, 2018. https://www.michigan.gov/lara/0,4601,7-154-79571_79784-479748–,00.html. Any type of marihuana bought after the October 31, 2018 date by those facilities need to be correctly classified and coded as required by the guidelines, and must originate from a properly State Licensed grower or processor. The caregivers might still grow, but they will have no methods whereby to market their product lawfully to a provisioning center or processor. The old "Caregiver Model" will, effectively, come to an end.

Outcomes and Effects

Some may argue that there are still licensed or unlicensed centers that are going to proceed purchasing from caregivers, regardless of the State mandate. To be sure, there may be some that take that risk.

Nevertheless, the State has shown a dedication to enforcement and examination. If the State were to identify that a candidate or a licensed center was still taking caretaker excess and selling them, the State would likely act. If an applicant were to be caught taking part in this model, they would likely be rejected immediately by the Board. If a licensed center were to be caught breaking this mandate, the State would likely move on with sanctions against that center's license, including a suspension or revocation of the license. Given just how much those licenses are worth, and the price of obtaining any of the allowed center licensing types, most owners will certainly be really resistant to take chances with the possible loss of their license, or expertise that their license will certainly not be renewed.

If you are a caregiver and don't recognize what to do come October 31, 2018, are an individual considering applying for a MMFLA license, or are an applicant that requires representation or has questions concerning how these adjustments will influence you, give us a call. We have the experience and knowledge in the marijuana and marihuana legislation areas to help address your concerns and give you the guidance you require.