Thinking of beginning a Medical Marihuana Grow to ensure that you can provide marijuana to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver who wants to take your product commercial on a bigger scale? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so legally, so long as you can successfully get a license from the State to do so. This might be a superb opportunity with many brand-new owners seeing remarkable levels of revenue and success in the market. Nevertheless, if you make this choice, you do need to make sure that you obtain a Michigan commercial grow license. Failing to do so will cause your venture being, probably, prohibited and lead to court activity that will certainly cripple your business before it starts.
Unfortunately, the Michigan commercial grow license application is a long, complex and expensive process. Ask a medical marijuana lawyer, as well as they will inform you that you need to see to it that you are prepared. Let’s take a look at the actions you will need to take, the team you need to develop as well as the position that you could find yourself in.
Who Can Apply?
The first inquiry to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. The bright side is that anyone, an individual or a full company can apply for a license. Applications began in 2017, as well as there is presently no target date to complete the necessary forms. Obviously, there are certain people, who, because they can not meet the minimum monetary requirements, or because they have a disqualifying criminal conviction in their history, are prevented from applying. However, presuming you do not have a disqualifying criminal conviction, as well as you, or your group of financiers, fulfill the minimum monetary demands, there are 2 main steps to the MMFLA licensing application process. The first step will be finished whether you have a final location for your structure or not. However, if you have actually already selected an area before sending your State application, something that we highly suggest, you can complete both actions at the very same time.
Pre-qualification is the very first step, and it begins with an extensive background check. There are 2 sections– 401 as well as 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 disclose and also whether they have a relevant business interest in your operation. This includes people such as the spouse of the individual and also all corporate officers. This is one of the reasons it is worth talking to an MMMA lawyer as it can be fairly complicated to get all the information correct. The State will certainly wish to do a deep dive into the backgrounds of not only all of the “interested parties,” or members/owners of your cannabis company, but the State will certainly additionally check into the histories of all of those person’s spouses as well. Should anyone have a disqualifying criminal conviction in their past, or otherwise be of “good moral character,” the State can deny the whole application. Simply put, if there is one bad apple in the bunch, the State throws away the entire application. Therefore, it is essential to know about the backgrounds 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 an experienced attorney can do to assist you prepare for your application, and to ensure that any kind of potential concerns with your application are understood, revealed or gotten ready for before the application is submitted. However, this isn’t the only reason why an attorney will typically be a vital and required hire.
Take into consideration The Cost
Before your details can be examined by an analyst from the Bureau of Licensing and Regulatory Affairs (LARA), Bureau of Medical Marihuana Regulation (BMMR), you need to pay a $6000 cost for your application. BMMR will certainly decline to progress with your application until this has been paid in full. In addition to being pricey, this fee is non-refundable so you want to see to it that there are no concerns with your application that might result in it being declined. An MMFLA lawyer can make sure that this holds true and help you navigate any kind of challenging issues. Better, before you can obtain State approval for operation, you will also need to obtain a municipal or city authorization. Each city or township will certainly also need you to finish an application as well as you will need to pay an application fee there too. The application price can range depending on what the city wishes to charge, nonetheless, they can not charge greater than $5,000.00. A lot of cities and townships are charging the maximum amount. In total, the application charges alone are likely to be in excess of $10,000.00. That does not include the costs of ancillary services, such as accounting professionals, architects, marketing experts and also various other solutions necessary for your application to be total.
As soon as you have gathered as well as paid the application fees, all candidates and supplemental applicants will certainly have their fingerprints taken. You might think that if you already have actually had your fingerprints taken by local law enforcement this step can be skipped. However, BMMR will certainly not accept finger prints unless they are requested and collected by them through the licensing procedure. You will have to go to an authorized place where your finger prints can be collected digitally and also submitted for review by the State.
This is the second step and remember, if you have already chosen a location to grow marijuana, you can complete this step with the first. You have to be prepared to meet all the MMFLA rules. During this step, you will need to have a business plan. Nevertheless, that plan must include particular things. You must have every one of the parts required by the State: facility plan, security plan, marketing plan, staffing plan, technology plan, waste disposal plan (if applicable), and a record keeping plan. There are specific minimum requirements set forth 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 services to operate. The MMFLA has strict regulations for individuals and companies planning to grow in a municipality. If you intend to grow in a town, it needs to have an ordinance that authorizes marihuana facility operations. Colloquially, the municipality must have “opted-in” to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities who have opted in to MMFLA), and also it must have passed a regulatory ordinance that sets for the regulations and guidelines for those centers to run within the city or township. The complete guidelines can be found in 205, however if you do have any kind of concerns you need to call your municipal authority. Or, alternatively, get your attorney to do this for you. As the application progresses, BMMR will speak to candidates, giving info on any kind of other requirements, consisting of a pre-licensure inspection of your location or facility.
Ultimately, you might obtain approval for your license. After you are informed of this, you will 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 annually, so it is impossible to predict exactly what it will be. Nevertheless, starting in 2019, despite which license you acquire, anticipate the assessment to be imposed as well as for that assessment to be significant.
We hope this helps you decide whether you are ready to apply for a Michigan commercial grow license. Bear in mind, with a legal representative at hand, this process can be much easier, and also you will gain expert suggestions on just how to proceed properly to make certain that your application is approved. Even after you get authorization, legal guidance is suggested to assure you stay on top of adjustments to the legislation and policies, and so that you can remain in compliance and also keep your company open.
Here at Fowler & Williams, PLC, we focus on assisting customers obtain MMFLA licenses and making certain continuing compliance.
Should you decide to retain counsel to help you on your licensing journey, give us a call.