The Bureau of Medical Marijuana Regulation is persevering on their position that all cannabis facilities that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will need to close down, and will get a cease and desist letter at that time. While the facilities are not mandated to close down, the State Bureau of Licensing and Regulatory Affairs has made clear that any center that continues to operate after receipt of the cease and desist will very likely not be granted a license. Further, the State has set forth suggested Final Rules concerning Medical Marihuana Facilities licensing, which is going to allow or registered qualifying patients to get house shipments from provisioning centers (with constraint, of course) and will additionally permit online buying. So, where does that leave registered caregivers, who were expecting to be able to remain relevant to their clients until 2021?
Traditional Model
The old for registered caregivers was pretty straightforward. You were allowed to grow up to twelve plants for each client. You could have five clients, apart from yourself. If the caregiver was also a client, they could likewise cultivate twelve plants for individual usage as well. So, a caregiver could cultivate a total amount of seventy-two marihuana plants. Most caregivers produced far more usable marihuana from those plants than they could utilize for clients and individual use. The caregivers would then sell their excess product to medical marihuana dispensaries.
Under the emergency rules, marihuana dispensaries that were running with municipal approval, but that had actually not obtained a State license were allowed to continue operating and also buying from registered caregivers. Those facilities were permitted to acquire caregiver excess for thirty days after obtaining their State license for supply. That meant substantial revenues for caregivers as well as considerable supply for dispensaries.
After September 15, 2018
The troubles for registered caregivers only begins on September 15, 2018. All State licensed centers that will continue to be open and operating can not buy any kind of product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly prohibited from buying or offering any product that is not generated by a State Licensed Grower or Processor that has actually had their product tested and certified by a State Licensed Safety Compliance Facility. Any State Licensed Provisioning Center that is discovered to have product available for sale that is not from a State Licensed Cultivator or Processor is subject to State sanctions on their license, consisting of short-term or irreversible revocation of the license. Given the danger, licensed facilities are really unlikely to run the risk of buying from a caregiver, given the potential effects.
Additionally, the unlicensed facilities to whom caregivers have been continuing to market to, even during the licensing procedure, will certainly be closing down. Some might continue to run, but given the State's stance on centers that do not comply with their cease and desist letters being looked at very adversely in the licensing process, the market will certainly be badly reduced, if not eliminated. As a result, caregivers will certainly not have much recourse for selling their excess, as well as will certainly be restricted only to their existing clients.
New Administrative Rules
A hearing will be held on September 17, 2018 concerning the brand-new proposed final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules cease being effective. Those final suggested administrative rules allow for house delivery by a provisioning center, and will also allow managed online buying. Those 2 things eliminate much of the function contemplated by caregivers under the brand-new regulations. Clients would still need them to go to the provisioning center to get and deliver cannabis to patients that were too sick or that were disabled and can not get to those licensed centers to get their medicinal marijuana. With this change to the administrative rules, such clients will no longer need a caregiver. They will have the ability to place an order online and have the provisioning facility deliver it to them, basically removing the necessity of a caregiver.
Conclusion
For better or worse, the State is doing everything it can to eliminate caregivers under the new administrative system, even before the intended elimination in 2021 contemplated by the MMFLA. There are a great deal of factors the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is doing away with the caregiver , and they are moving that process along with celerity. The State is sending the message that they desire caregivers out of the industry asap, and they are developing guidelines to ensure that occurs sooner rather than later. The caregiver model, while advantageous and needed under the old Michigan Medical Marihuana Act structure, are now going the way of the Dodo. Like everything else, the Marihuana regulations are evolving, and some things that have flourished in the past, will not make it to see the new legalized era.
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