10 Things You Need To Know Before Opening A Marihuana Provisioning Center

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.

Am I All set To Apply for a Medical Marihuana Facilities Grow License?

Thinking of starting a Medical Marihuana Grow to make sure that you can offer cannabis to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver who wishes to take your product commercial on a bigger range? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so legally, as long as you can successfully get a license from the State to do so. This can be a wonderful chance with several new owners seeing remarkable degrees of earnings and success in the market. Nevertheless, if you make this decision, you do need to see to it that you get a Michigan commercial grow license. Failing to do so will result in your endeavor being, most likely, unlawful and cause court action that will cripple your service before it begins.

Regrettably, the Michigan commercial grow license application is a long, complicated as well as expensive process. Ask a medical marijuana attorney, as well as they will inform you that you need to make sure that you are prepared. Let's take a look at the actions you will certainly need to take, the team you need to construct and also the position that you may find yourself in.

Who Can Apply?

The very first question to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. Fortunately is that any person, an individual or a full organisation can apply for a license. Applications began in 2017, and also there is presently no due date to complete the required forms. Certainly, there are particular individuals, who, due to the fact that they can not satisfy the minimal monetary demands, or since they have a disqualifying criminal conviction in their background, are prevented from applying. However, assuming you don't have a disqualifying criminal conviction, and you, or your group of investors, fulfill the minimal economic requirements, there are two major steps to the MMFLA licensing application process. The primary step will be completed whether you have a final location for your building or not. However, if you have already picked a place before sending your State application, something that we extremely suggest, you can complete both actions at the exact same time.

Pre-Qualification

Pre-qualification is the primary step, and it begins with an extensive background check. There are two sections-- 401 and 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 reveal and also whether they have a relevant business interest in your operation. This consists of people such as the spouse of the individual and also all corporate officers. This is one of the reasons why it is worth talking to an MMMA attorney as it can be fairly difficult to get all the information correct. The State will want to do a deep dive into the backgrounds of not only all of the "interested parties," or members/owners of your marijuana organisation, but the State will certainly also explore the histories of all of those individual's spouses as well. Should anyone have a disqualifying criminal conviction in their past, or not be of "good moral character," the State can reject the whole application. To put it simply, if there is one bad apple in the bunch, the State throws away the entire application. Therefore, it is very important to learn about the backgrounds of the individuals you have in your investment group, before applying for your Medical Marihuana Facilities License. There are a lot of things that a skilled attorney can do to assist you plan for your application, and to make certain that any possible concerns with your application are known, disclosed or prepared for before the application is sent. Nonetheless, this isn't the only reason an attorney will usually be an essential and needed hire.

Consider The Cost

Before your info can be evaluated 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 reject to move forward with your application until this has been paid completely. In addition to being pricey, this fee is non-refundable so you want to ensure that there are no issues with your application that can lead to it being declined. An MMFLA lawyer can guarantee that this is the case and help you navigate any kind of difficult problems. Additionally, before you can acquire State authorization for operation, you will also have to obtain a municipal or city authorization. Each city or township will also require you to finish an application and you will need to pay an application fee there too. The application price can vary depending on what the city wants to charge, nonetheless, they can not charge greater than $5,000.00. Most cities and townships are charging the maximum amount. In total, the application charges alone are most likely to be in excess of $10,000.00. That doesn't consist of the costs of ancillary services, such as accounting professionals, architects, marketing professionals and other services required for your application to be full.

As soon as you have gathered and paid the application fees, all candidates and also supplemental candidates will certainly have their fingerprints taken. You may believe that if you already have actually had your finger prints taken by local law enforcement this step can be avoided. However, BMMR will certainly decline fingerprints unless they are requested as well as collected by them through the licensing procedure. You will certainly need to go to an accepted place where your finger prints can be collected digitally as well as sent for review by the State.

Facility License

This is the second step and remember, if you have already picked a location to grow cannabis, 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 certain things. You must have every one of the components called for by the State: facility plan, security plan, marketing plan, staffing plan, technology plan, waste disposal plan (if applicable), as well as a record keeping plan. There are specific minimum requirements stated 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 permits MMFLA companies to operate. The MMFLA has strict rules for individuals as well as services intending to grow in a municipality. If you wish to grow in a community, it has to have an ordinance that authorizes marihuana facility operations. Colloquially, the municipality has to have "opted-in" to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities who have actually opted in to MMFLA), and it needs to have passed a regulatory ordinance that sets for the regulations as well as guidelines for those facilities to operate within the city or township. The complete standards can be discovered in 205, but if you do have any questions you need to call your municipal authority. Or, additionally, get your attorney to do this for you. As the application proceeds, BMMR will certainly call candidates, offering info on any other needs, consisting of a pre-licensure inspection of your location or facility.

Approved

Ultimately, you may obtain authorization for your license. After you are notified of this, you will certainly 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 every year, so it is difficult to anticipate precisely what it will be. Nevertheless, starting in 2019, no matter which license you acquire, anticipate the assessment to be imposed and also for that assessment to be significant.

Verdict.

We hope this helps you choose whether you are ready to apply for a Michigan commercial grow license. Remember, with an attorney at hand, this process can be far easier, as well as you will certainly get professional guidance on how to proceed appropriately to make sure that your application is accepted. Even after you acquire authorization, legal advice is suggested to assure you stay on top of modifications to the legislation as well as guidelines, and so that you can stay in compliance and keep your service open.

Here at Fowler & Williams, PLC, we focus on assisting customers acquire MMFLA licenses and ensuring continuing compliance.

Should you choose to retain counsel to aid you on your licensing journey, give us a call.