Michigan is now a recreational use state for marijuana. Since the passing of Proposal 1, adults 21 years of age or older are legally allowed to possess up to 2.5 ounces of marijuana (cannabis) outside their home and up to 10 ounces within their home. Adults are also allowed to possess and cultivate (grow) up to 12 plants. Lastly, an adult can possess no more than 15 grams of concentrate (wax, extracts, resin, etc.) at any given time.
The above passage is pretty simple to understand for individuals. The big question has been, "[h]ow will businesses operate under this recreational scheme?" As of July 3, 2019, Licensing and Regulatory Affairs (LARA), Marijuana Regulatory Agency Department filed with the Secretary of the State Emergency Rules that, at this time, establish how the Marijuana business scheme will operate. The following is a brief outline of that scheme.
12 TYPES OF LICENSES:
- Class A Grower (Allowed 100 Plants)
- Class B Grower (Allowed 500 Plants)
- Class C Grower (Allowed 2,000 Plants)
- Excess Marijuana Grower (SPECIAL LICENSE)
- Marijuana Microbusiness
- Marijuana Processor
- Marijuana Retailer
- Marijuana Secure Transporter
- Marijuana Safety Compliance Facility
- Marijuana Event Organizer (SPECIAL LICENSE)
- Temporary Marijuana Event (SPECIAL LICENSE)
- Designated Consumption Establishment (SPECIAL LICENSE)
Each license is allowed certain permissions. Michigan has made it convenient by allowing growers with "equivalent licenses" under the Medical Marijuana Facilities Licensing Act (MMFLA) to transfer their licenses via applications easily.
"Special Licenses" fall under Part 9 of the Rules. The MRA may allow these certain types of licenses to submit applications and process them sooner than the date specified in the Act.
Part 2 - State Licenses governs the procedure and requirements of the application process for the above licenses. To say the least, Michigan is going to be very stringent in the application process. They intend to conduct background investigations on every person applying, every employee, your confidential records, and assess some hefty fees. If an application is denied, the applicant may appeal the denial through administrative law procedures.
STATEWIDE MONITORING SYSTEM:
This is a registry which will allow the State to keep track of every gram of weight that is grown, processed, and transferred. It is an attempt to prevent black market sales, and to keep all businesses accountable for their products. Every time a grower transfers weight to a testing facility, it must be computed in the monitoring system. Every time a grower or processor transfer product to a retailer, must be computed in the system. Every time any weight it moved anywhere, it must be computed.
This license has been established to, as you can guess, secure the transportation of marijuana products from one facility to the next. From reading the rules, it appears to me the "transporters" are an armored vehicle system, such as Brinks. I am still waiting on correspondence from MRA regarding this provision. Notwithstanding that, the secure transporters will be responsible for every transfer of products that require the use of public roads.
An exception to the use of these transporters is described in "microbusiness" license type, and in part 7 - Sales and Transfer.
SAMPLING AND TESTING:
Part 5 governs sampling and testing of marijuana products from growers. Essentially, testing will be done on all marijuana products to test for cleanliness, potency, and overall product quality. For maximum THC contents allowed in infused products, visit here.
Overall, the passing of Proposal 1 has opened the doors to a new economic market in the State of Michigan. It has many benefits, but also, many drawbacks. One may have their personal beliefs on this topic. As an attorney, my goal is to ensure those who want to pursue this path does so according to the legal framework; and for those who do not agree, to respect their opinions. Look to your local municipality on their objectives regarding recreational marijuana business licenses.
If you have any more questions, contact me at any time.