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Michigan Issues Emergency Rules for Recreational Marijuana

by Faith Fidura July 11, 2019

shutterstock_430867774 (1)-1On July 3, 2019 Michigan’s Department of Licensing and Regulatory Affairs issued emergency rules to enact the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and implement a regulated recreational marijuana market. The rules are effective immediately and will remain in effect for six months.

The rules establish equivalent licenses between the medical program and recreational program and allow equivalent licenses with common ownership to operate at the same location without separate facilities or operations, subject to local restrictions. Those who are existing medical marijuana business licensees may go through an expedited process to receive a recreational business license if there will be no change of ownership.

Additionally, the rules establish new license types for social consumption establishments and special events that will have cannabis present. A new class of grower license has also been created, called an Excess Marihuana Grower license, which may be issued to a grower who has five stacked Class C grower licenses.

The rules outline that the state may begin accepting applications for recreational business licenses prior to its initial date of December 6, 2019 to ensure there is an adequate amount of marijuana product available for consumers and a functioning licensing and regulatory framework in place as soon as possible.

Michigan Marijuana Business Licenses

Marihuana Grower

A grower license authorizes the licensee to cultivate, dry, trim, or cure and package marihuana for sale to a processor or provisioning center. A grower is authorized to grow no more than the following number of marihuana plants under the indicated license class:

  • Class A Marijuana Grower – up to 100 plants 
    • Nonrefundable application fee of $6,000
    • Initial Licensure Fee of $4,000
    • Renewal Fee of $3,000 for the bottom 33%, $4,000 for the middle 33%, $5,000 for the top 33%
  • Class B Marihuana Grower – up to 500 plants 
    • Nonrefundable application fee of $6,000
    • Initial Licensure Fee of $8,000
    • Renewal Fee of $6,000 for the bottom 33%, $8,000 for the middle 33%, $10,000 for the top 33%
  • Class C Marihuana Grower – up to 2,000 plants
    • Nonrefundable application fee of $6,000
    • Initial Licensure Fee of $40,000
    • Renewal Fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%
  • Excess Marihuana Grower – holds 5 stacked class C marihuana grower licenses
    • Nonrefundable application fee of $6,000
    • Initial Licensure Fee of $40,000
    • Renewal Fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%

 
Processor’s License

A licensee that is a commercial entity that purchases marihuana from a grower and extracts resin from the marihuana or creates marihuana infused product for sale and transfer in packaged form to a provisioning center.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $40,000
  • Renewal Fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%

Marihuana Retailer

A person licensed to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to marihuana establishments and to individuals who are 21 years of age or older.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $25,000
  • Renewal Fee of $20,000 for the bottom 33%, $25,000 for the middle 33%, $30,000 for the top 33%

Marihuana Microbusiness

A person licensed to cultivate not more than 150 marihuana plants; process and package marihuana; and sell or otherwise transfer marihuana to individuals who are 21 years of age or older or to a marihuana safety compliance facility, but not to other marihuana establishments.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $8,000
  • Renewal Fee of $6,000 for the bottom 33%, $8,000 for the middle 33%, $10,000 for the top 33%

Secure Transporter License

A person licensed to obtain marihuana from marihuana establishments in order to transport marihuana to marihuana establishments.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $25,000
  • Renewal Fee of $20,000 for the bottom 33%, $25,000 for the middle 33%, $30,000 for the top 33%

Safety Compliance Facility’s License

A licensee that is a commercial entity that receives marihuana from a marihuana facility and tests it for contaminants and for tetrahydrocannabinol and other cannabinoids.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $25,000
  • Renewal Fee of $20,000 for the bottom 33%, $25,000 for the middle 33%, $30,000 for the top 33%

Designated Consumption Establishment

A commercial space that is licensed by the agency and authorized to permit adults 21 years of age and older to consume marihuana products at the location indicated on the state license.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $1,000
  • Renewal Fee of $1,000


Marihuana Event Organizer

A person who holds a Temporary Marihuana Event License for an event where the onsite sale or consumption of marihuana products, or both, are authorized at the location indicated on the state license during the dates indicated on the state license.

  • Nonrefundable application fee of $6,000
  • Initial Licensure Fee of $1,000
  • Renewal Fee of $1,000

 

Prepare for Michigan Recreational Marijuana Business License Applications

MichiganemailThe Michigan application will require the submission of items such as an organizational chart and description of responsibilities, criminal history checks, real estate information, financial plan, inventory management plan, security plan, and more.

Download our Michigan Marihuana State License Application Package for templates of some business plans that will be required on the state application. All templates plans were drafted by our industry consultants from successful application material, in conjunction with subject matter experts.

You can apply code “MICHIGAN25” for 25% off the package.
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