Thinking about starting a Medical Marihuana Grow to ensure that you can offer cannabis to the medical marihuana market?

Are you a Medical Marihuana Act licensed caregiver who wants to take your product commercial on a bigger range? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so legally, so long as you can successfully obtain a license from the State to do so. This could be a great opportunity with many new owners seeing tremendous levels of earnings and also success in the market. However, if you make this decision, you do need to make sure that you obtain a Michigan commercial grow license. Failing to do so will result in your venture being, probably, prohibited and also cause court action that will cripple your business before it starts.

Sadly, the Michigan commercial grow license application is a long, complex and costly process. Ask a medical marijuana lawyer, and also they will certainly tell you that you need to ensure that you are prepared. Let’s check out the steps you will certainly need to take, the team you need to build and the position that you might find yourself in.

 

 

Who Can Apply?

The very first question to ask yourself is whether or not you are qualified to apply for a Medical Marihuana Facilities license. The bright side is that anyone, an individual or a full organisation can apply for a license. Applications began in 2017, and there is presently no due date to finish the needed forms. Obviously, there are specific individuals, that, since they can not satisfy the minimal financial demands, 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, and also you, or your team of investors, satisfy the minimum economic needs, there are two major steps to the MMFLA licensing application process. The very first step will certainly be completed whether you have a final location for your building or not. Nevertheless, if you have actually already picked a place before sending your State application, something that we highly advise, you can complete both steps at the very same time.

 

 

Pre-Qualification

Pre-qualification is the initial step, and it begins with an extensive background check. There are two 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 divulge and also whether they have a relevant business interest in your operation. This includes people such as the spouse of the individual and all corporate officers. This is one of the reasons it is worth seeking advice from an MMMA attorney as it can be quite challenging to get all the information correct. The State will intend to do a deep dive into the backgrounds of not only all of the “interested parties,” or members/owners of your cannabis business, but the State will also check out the backgrounds of every one of those person’s spouses also. Should any person have a disqualifying criminal conviction in their past, or otherwise be of “good moral character,” the State can refute the whole application. To put it simply, if there is one bad apple in the bunch, the State throws out the entire application. Consequently, it is essential to find out 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 a skilled lawyer can do to aid you plan for your application, and to guarantee that any type of possible concerns with your application are known, revealed or prepared for before the application is sent. Nevertheless, this isn’t the only reason a lawyer will typically be an important and required hire.

 

 

Consider The Cost

Before your info can be reviewed by an analyst from the Bureau of Licensing and Regulatory Affairs (LARA), Bureau of Medical Marihuana Regulation (BMMR), you need to pay a $6000 fee for your application. BMMR will refuse to move on with your application until this has been paid completely. Along with being pricey, this fee is non-refundable so you want to make certain that there are no issues with your application that could result in it being rejected. An MMFLA lawyer can guarantee that this holds true and help you navigate any kind of challenging problems. Even more, before you can acquire State approval for operation, you will also have to get a municipal or city authorization. Each city or township will certainly likewise need you to finish an application as well as you will certainly need to pay an application fee there too. The application price can vary depending on what the city wants to charge, however, they can not charge greater than $5,000.00. Most cities and also townships are charging the maximum amount. In total, the application costs alone are most likely to be in excess of $10,000.00. That doesn’t consist of the costs of ancillary services, such as accountants, designers, marketing professionals as well as various other solutions essential for your application to be total.

Once you have gathered and paid the application fees, all applicants and supplemental candidates will certainly have their finger prints taken. You might think that if you currently have had your fingerprints taken by local police this action can be skipped. Nonetheless, BMMR will not accept finger prints unless they are asked for and collected by them via the licensing process. You will need to go to an authorized location where your fingerprints can be collected electronically and submitted for evaluation by the State.

 

 

Facility License

This is the 2nd step and bear in mind, if you have already selected a place to grow cannabis, you can complete this step with the first. You need to be prepared to satisfy all the MMFLA rules. During this step, you will certainly need to have a business plan. Nevertheless, that plan should include specific things. You must have every one of the parts needed 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 set forth in the Administrative Rules that regulate MMFLA facilities, with which you must show your business is in compliance.

Your facility needs to be located in a city or township that allows MMFLA companies to operate. The MMFLA has strict policies for individuals as well as organisations preparing to grow in a municipality. If you intend to grow in a town, it must 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 that have actually opted in to MMFLA), and also it needs to have passed a regulatory ordinance that sets for the policies and also guidelines for those centers to operate within the city or township. The complete standards can be located in 205, yet if you do have any inquiries you need to contact your municipal authority. Or, additionally, get your legal representative to do this for you. As the application progresses, BMMR will certainly contact applicants, supplying information on any various other requirements, including a pre-licensure inspection of your location or facility.
Accepted
Lastly, you may acquire authorization for your license. After you are notified of this, you will certainly need to pay for a regulatory assessment. Currently, 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 yearly, so it is impossible to anticipate exactly what it will be. Nevertheless, starting in 2019, regardless of which license you get, expect the assessment to be imposed and for that assessment to be substantial.

 

 

Final thought.

We hope this helps you determine whether you are ready to apply for a Michigan commercial grow license. Remember, with an attorney at hand, this process can be far simpler, and you will acquire skilled recommendations on how to proceed properly to guarantee that your application is approved. Even after you obtain approval, legal guidance is suggested to ensure you stay on top of modifications to the law and guidelines, and so that you can remain in compliance and keep your company open.

Here at Fowler & Williams, PLC, we concentrate on aiding customers acquire MMFLA licenses and ensuring continuing compliance.
Should you choose to retain counsel to assist you on your licensing journey, give us a call.