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 get municipal approval and a State issued operations license. "Provisioning Center" is the legally acceptable 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 present regulations no longer allow 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 essentially a organisation where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) can come to acquire medical marihuana for medical usage. While a provisioning center can be a rewarding endeavor, there are a couple of things you to understand before you move forward.
Can You Transport Cannabis In A Private Automobile?
Currently, under Michigan law, the general guideline is that possession and transport of marihuana in a vehicle is restricted by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA may transport marihuana in a automobile. Even then, they have to do so in strict compliance with the MMMA. Cannabis may only carried in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or individuals in the guest compartment. You might also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for up to five patients (and themselves too if the caregiver is also a qualifying patient) or up to 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, however, 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 take place on a public road, it can be moved as stated by LARA, BMMR under the Administrative guidelines.
How Much Cannabis Can You Offer?
A licensed provisioning center under the MMFLA may not sell more than 2.5 ounces of marihuana per 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 have 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 allows the use of twenty-four (24) software programs that are METRC compliant. Every consumer who sets foot in a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every customer who enters a provisioning center must have their card run through the Statewide Monitoring Database to guarantee that they have not already been provided 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 purchased by the patient at your provisioning center.
What License Do You Need?
You need a full license given by the state to run as a Michigan provisioning center. If you are growing cannabis, you will likewise need to ensure that you get a Michigan commercial grow license application. You might wish to speak to an MMFLA attorney, such as Fowler & Williams, PLC, about this to guarantee that you are fully licensed, or you will be shut down. Most importantly, DO NOT begin operating your provisioning center without a State license being issued to you under the MMFLA. While the process of obtaining a license is complicated and requires a substantial amount of time and money, the success of these provisioning centers far surpasses the cost of obtaining one. If you can get approved for a license and make it through the application process to acquire a provisioning center license, you must do so before you start 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 wishes to set up a provisioning center and a grow or processor at the very same time. According to the law, there is absolutely nothing stopping you from doing this. Further, you can get several provisioning center licenses so that you can operate numerous provisioning centers in various cities. The licenses do not connect to the individual or the business that is applying, enabling you to use it anywhere you desire. Rather, the licenses attach to the property you provide on your application for the business. Therefore, if you wish to open numerous provisioning centers, you will need to send multiple State applications. If you desire to acquire different kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, however you need to send different applications for each license type, and must satisfy 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 vary the costs depending upon which kind of license you apply for. Typically, nevertheless, they charge the maximum permitted, which is $5,000.00 per license application. Even more, after you get a State license, there are regulatory assessments that must be paid every year, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the kind of license issued. For now, nevertheless, the assessments will remain as noted above. You will also discover that there are other professional charges that you will need 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 expenses can differ considerably, and are hard to anticipate.
Needless to say, the application and licensing process is an pricey venture, 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 return on investment could be substantial.
Should You Have A Attorney?
While not mandatory, you should definitely ensure that you are acquiring guidance from an MMFLA legal representative before you think about opening a Michigan provisioning center. It is essential that you get the very best possible legal suggestions and that you are following all the regulations and requirements. Only an attorney experienced in managing cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can ensure that you have all the tools and guidance that you need to give your application the very best possibility at success. Failure to ensure that your application is complete, and that it provides support for your ability to currently comply and guarantee future compliance with the Administrative rules, your application is far more likely to be declined or denied, and your dream of opening a provisioning center brought to an unceremonious ending.
Just How Much Will This Business Cost?
You can expect the total start-up fees for this kind of organisation 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 suffice, realistically, to begin business. You will need to potentially acquire 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 obligatory fees, costs, and expert services that you need to acquire to make sure that your application is precise and total, and to ensure that you are currently in compliance with all laws and guidelines, in addition to making sure future compliance. This includes everything from licensing to a full team of staff members and much more. It's definitely not inexpensive, and you need to be prepared for a heavy investment. However, as noted above, the marketplace is big, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is currently unlawful to operate one in the state of Michigan. Nevertheless, this could change, which's why it is very important to talk to a medical marihuana attorney regularly, so that you are keeping up to date with changes to the law. Cannabis law is an evolving and changing field, and as a outcome, there may come a time where the MMFLA or the MMMA is amended to allow for a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole purpose is to supply safe medical marihuana to registered qualifying patients. You might only offer 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 appropriate labeling and tracking. You may not sell these items prior to your getting a license, unless you were operating with city approval prior to February 15, 2018 and you have already submitted an application to the State looking for a license.
Soon a change in law will likely permit recreational marijuana sales. If the ballot initiative passes, for the first two years after the State passes recreational cannabis facility regulations and starts accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to obtain recreational marihuana licenses for the same activity. Therefore, getting a provisioning center license under the MMFLA, provides you the opportunity to go into the recreational market, where others will not.
What Are The Requirements?
In order to make an application for a provisioning center license, you need to guarantee 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 get an properly zoned structure in a city or township that has "opted-in" to the MMFLA to allow such facilities to run within their boundaries. Whether your own it or lease it does not matter, however you must have the building. After that, you will have to produce a business plan which contains all of the necessary aspects from the state, including 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.
Conclusion
We hope this provides you with some of the information you need before opening a Michigan provisioning center. Needless to say, the process is expensive, intricate and time consuming, however the reward and ROI can be significant. In reality, getting a proficient MMFLA and mmma lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take most of the work off your plate.
If you want info, or want to come in and speak about making an application for a provisioning center license, we would love to have you come in for a consultation.
