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 obtain municipal approval and a State issued operations license. “Provisioning Center” is the legally allowable term under Michigan’s Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was previously referred to informally as a “dispensary.” The existing policies no longer permit such businesses to be referred to legally as “dispensaries” and the State requires that they be referred to as marihuana provisioning centers. A provisioning center is generally a company where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to acquire medical marihuana for medical use. While a provisioning center can be a successful endeavor, there are a couple of things you to know before you move forward.
Can You Transport Cannabis In A Personal Automobile?
Presently, under Michigan law, the basic rule is that possession and transport of marihuana in a automobile is prohibited by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA can transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Marijuana 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 passenger compartment. You may likewise not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for as much as five patients (and themselves also if the caregiver is also a qualifying patient) or as much as 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, nevertheless, 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 happen on a public street, it can be moved as stated by LARA, BMMR under the Administrative guidelines.
How Much Marijuana Can You Provide?
A licensed provisioning center under the MMFLA may not sell more than 2.5 ounces of marihuana each day to a registered qualifying patient. A provisioning center that is licensed may also sell to a registered primary caregiver, however not more than 2.5 ounces per qualifying patient attached to the caregiver’s license. If you are licensed by the State to operate a provisioning center, you will need to utilize a point of sale system that has software that is complaint with the Statewide Monitoring Database, which utilizes a software program called METRC. The State permits making use of twenty-four (24) software programs that are METRC compliant. Every customer who goes into a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every consumer who sets foot in a provisioning center needs to have their card run through the Statewide Monitoring Database to guarantee that they have not already been given their maximum daily quantity of 2.5 ounces from another licensed provisioning center. A provisioning center needs to 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 acquired 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 marijuana, you will also require to make sure that you apply for a Michigan commercial grow license application. You may want to talk to an MMFLA lawyer, such as Fowler & Williams, PLC, about this to make sure 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 obtaining a license is complicated and needs a significant quantity of time and money, the profitability of these provisioning centers far exceeds the cost of acquiring one. If you can get approved for a license and get through the application procedure to acquire a provisioning center license, you must do so before you begin running.
Can You Get More Than One License?
Yes, you can apply and get approved for more than one license. This is useful for any business or individual who wants to set up a provisioning center and a grow or processor at the exact same time. According to the law, there is nothing stopping you from doing this. Further, you can acquire multiple provisioning center licenses so that you can operate several provisioning centers in various cities. The licenses do not connect to the person or the business that is applying, permitting you to utilize it anywhere you want. Rather, the licenses connect to the property you list on your application for the business. For that reason, if you wish to open multiple provisioning centers, you will have to submit multiple State applications. If you prefer to acquire various types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, but you should send separate applications for each license type, and need to fulfill the minimum monetary and background requirements individually 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 charges, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can differ the fees depending on which type of license you apply for. Generally, nevertheless, they charge the maximum allowed, which is $5,000.00 per license application. Further, after you get a State license, there are regulatory assessments that must be paid yearly, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the type of license provided. In the meantime, nevertheless, the assessments will remain as noted above. You will likewise discover that there are other professional fees that you will have to pay in order to make sure that your application is complete, and that your business plan, with all of its required parts, is up to par with the State’s application requests. Those costs can differ dramatically, and are difficult to predict.
Needless to say, the application and licensing process is an expensive endeavor, 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 roi might be considerable.
Should You Have A Attorney?
While not required, you should definitely ensure that you are acquiring guidance from an MMFLA attorney before you consider opening a Michigan provisioning center. It is essential that you get the very best possible legal guidance 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 guarantee that you have all the tools and guidance that you need to give your application the very best chance at success. Failure to make sure that your application is complete, and that it provides support for your capability to presently comply and ensure future compliance with the Administrative rules, your application is far more likely to be turned down or denied, and your dream of opening a provisioning center brought to an unceremonious ending.
Just How Much Will This Business Cost?
You can anticipate the total start-up fees for this type of business to be anywhere in between 400 and 500K, at a minimum. While the State requires a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not be sufficient, realistically, to start the 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 mandatory fees, expenses, and expert services that you need to get to guarantee that your application is accurate and total, and to guarantee that you are currently in compliance with all laws and guidelines, as well as ensuring future compliance. This consists of 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 investment. Nevertheless, as noted above, the market is big, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is currently prohibited to operate one in the state of Michigan. However, this could change, and that’s why it’s important to speak with a medical marihuana lawyer frequently, so that you are keeping up to date with changes to the law. Marijuana law is an evolving and altering field, and as a outcome, there might come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole purpose is to offer 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 correct labeling and tracking. You may not offer these items prior to your getting a license, unless you were running with city approval prior to February 15, 2018 and you have already sent an application to the State seeking a license.
Soon a modification in law will likely permit recreational marijuana sales. If the ballot initiative passes, for the first 2 years after the State passes recreational cannabis facility guidelines and starts accepting licensing applications, only facilities licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to apply for recreational marihuana licenses for the same activity. Hence, getting a provisioning center license under the MMFLA, offers you the opportunity to enter the recreational market, where others will not.
What Are The Requirements?
In order to look for a provisioning center license, you need to make sure 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 appropriately zoned building in a city or town that has “opted-in” to the MMFLA to permit such facilities to run within their limits. Whether your own it or rent it does not matter, but you must have the building. After that, you will have to produce a business plan that contains all of the necessary 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 regulations now and in the future.
We hope this provides you with some of the details you need prior to opening a Michigan provisioning center. Needless to say, the procedure is expensive, intricate and time consuming, but the reward and ROI can be significant. In reality, obtaining a competent MMFLA and MMMA lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take the majority of the work off your plate.
If you want info, or wish to come in and talk about obtaining a provisioning center license, we would enjoy to have you come in for a consultation.