Detroit Medical Marijuana Update

Detroit Medical Marijuana Update

The past week has actually been a hectic one in the City of Detroit when it pertains to Medical Marijuana Facilities Licensing Act issues. The City application deadline for currently running centers was February 15. The Wayne County Circuit Court's Chief Judge, Robert Colombo, Jr. provided a ruling pertaining to the voter initiatives as well as dispensary zoning requirements. Ultimately, the City provided a postponement on applications and approvals for brand-new medical marijuana provisioning centers within the City of Detroit.

Detroit MMFLA Deadline Comes and Goes: If you were a medical marijuana dispensary owner and you got on the City's approved operating list, you were required to send your application to the State of Michigan Bureau of Licensing and Regulatory Affairs by February 15, 2018. That application also needed to be filed with the City of Detroit for municipal attestation of operating approval by that date too. If you did not get your application in by February 15, 2018, whether you got on the accepted list, and regardless of whether you have actually been running with City approval, your license with the City will certainly not be renewed. Nor will your present municipal license to run be renewed. In short, if you didn't get your application in by February 15, 2018, you're out of luck after the expiry of your present license, at least, within the limits of the City of Detroit, for at a minimum of 6 months, until the moratorium is passed. Even then, there's no warranty that you will be able to apply, or be approved, once the moratorium is over. All the more reason to inquire about the laws and also policies with a medical marijuana licensing attorney that recognizes the intricacies of this ever-changing as well as complex area of legislation.

Moratorium on New Provisioning Centers:

Detroit has placed a 6 month moratorium on applications for Medical Marijuana provisioning center licenses as of February 15. The City has specified that it will certainly not issue any kind of brand-new provisioning center licenses during that 6 month period. A lot more dramatically, for provisioning centers that were running under a municipal license or under a legal agreement with the City that they would certainly not close your center down, if you did not submit your State Application for a provisioning center license, and submit your application to the City of Detroit for an attestation by close of business on February 15, 2018, you will certainly not be authorized to operate, and your currently issued and valid license to operate in the City, will certainly not be renewed. Organisations that did not get their applications in by the due date will need to wait until at least after the moratorium is over before they can try to re-apply. There has been a lot of discussion that the City might not release any more licenses after that moratorium is passed, which it would be within its rights to do. As a result, if you didn't get your application in prior to the target date, you need to talk with a medical cannabis licensing attorney to discuss your options progressing.

Circuit Court Strikes Down Zoning Initiative:

The final news relates to the voter initiatives that were passed in November which altered the zoning requirements for dispensaries. Citizens authorized a reduction in the zoning limitations concerning medical cannabis dispensaries. The ordinance required that a provisioning center had to be at least 1000 feet away from a church or school. The initiatives proposed to lower the zoning requirements to make sure that provisioning centers only had to be less than 500 feet away from a church or school. The City of Detroit challenged the legality of the voter initiatives and filed a suit in the Wayne County Circuit Court. On Friday, Wayne County Circuit Court Chief Judge Robert Colombo, Jr. established that under the Home Rule statute, which governs how cities like Detroit are run and governed in the State of Michigan, zoning restrictions and requirements might not be transformed by voter initiative. As a result, the initiatives were overruled as well as the original zoning limits are once again in place. While a number of citizen teams are vowing an appeal, it will be a long time before the Court of Appeals and, inevitably, the Michigan Supreme Court can evaluate in on the problem. The zoning regulation, if it remains the same, will likely likewise impact new types of Medical Marijuana Facilities accepted for licensing under the MMFLA.

Just how Does This Effect My Application?: If you are a dispensary operating lawfully in Detroit now, and also you sent your application to the State and the City by February 15, 2018, after that, these changes will have little to no effect on you. Any person running a facility in Detroit that did not apply by the due date, or that is running unlawfully and is not on the Detroit accepted centers' listing, the decision might be ruining. You may not be able to run your facility after the end of the year, or sooner, relying on the nature of your center. If you are not on the accepted list, you will not be able to get city approval to operate, which is a condition precedent to getting your State license. As a result, you will not be able to get an operating license from the State, and also your unregulated center is likely to come to be a target of State regulators. If you were operating legally, however did not get your application in to the City or the State by February 15, 2018, you will certainly not be municipally authorized to proceed operating past your current licensing date. There is likewise no warranty that you will have the ability to send an application after the present 6 month moratorium, neither is there any type of reason to believe that the City will certainly approve anymore applications for dispensaries. If your wish is to proceed giving patients with medicine, you need to talk with a knowledgeable clinical cannabis licensing attorney to help you generate a plan on exactly how you can attempt to proceed in the sector.

If you intend to review obtaining a license under the Michigan Medical Marijuana Facilities Licensing Act,

be it a provisioning centers, processing center, grow operation, testing laboratory or secured transporter,

call Fowler & Williams, PLC today for a consultation.

cannabis

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

You may be thinking about 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 obtain municipal approval and a State issued operations license. "Provisioning Center" is the legally permissible term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to colloquially as a "dispensary." The present policies no longer permit 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 basically a company 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 lucrative venture, there are a couple of things you to know before you move forward.

Can You Transport Marijuana In A Personal Car?

Presently, under Michigan law, the general rule is that possession and transport of marihuana in a vehicle is forbidden by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA may transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Marijuana may only carried in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or persons in the passenger compartment. You may also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can carry usable marihuana for as much as five patients (and themselves as well if the caregiver is also a qualifying patient) or as much as 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, nevertheless, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their center that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located (attached 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.

Just How Much Cannabis Can You Supply?

A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana each day to a registered qualifying patient. A provisioning center that is licensed may likewise sell to a registered primary caregiver, but not more than 2.5 ounces per qualifying patient attached to the caregiver's license. If you are licensed by the State to run 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 permits making use of twenty-four (24) software programs that are METRC compliant. Every consumer who enters a provisioning center, you will have to utilize a point of sale system that has software that is compliant. Every consumer 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 allotment of 2.5 ounces from another licensed provisioning center. A provisioning center should 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 acquired by the patient at your provisioning center.

What License Do You Need?

You need a full license supplied by the state to operate as a Michigan provisioning center. If you are growing marijuana, you will likewise need to make certain that you get a Michigan commercial grow license application. You may wish to talk to an MMFLA legal representative, such as Fowler & Williams, PLC, about this to ensure that you are fully licensed, or you will be shut down. Most importantly, DO NOT start operating your provisioning center without a State license being issued to you under the MMFLA. While the process of getting a license is complicated and needs a significant quantity of time and money, the profitability of these provisioning centers far outweighs the expense of obtaining one. If you can get approved for a license and get through the application process to get a provisioning center license, you must do so before you start running.

Can You Get More Than One License?

Yes, you can apply and qualify for more than one license. This is useful for any business or individual who wants to establish a provisioning center and a grow or processor at the exact same time. According to the law, there is absolutely nothing stopping you from doing this. Further, you can acquire several provisioning center licenses so that you can run numerous provisioning centers in different cities. The licenses do not connect to the individual or the business that is applying, permitting you to use it anywhere you want. Rather, the licenses attach to the property you list on your application for the business. Therefore, if you want to open numerous provisioning centers, you will have to submit numerous State applications. If you want to obtain various types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, but you must submit different applications for each license type, and must meet the minimum financial and background requirements separately for each license type.

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 costs, which can be up to $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can vary the costs depending on which type of license you apply for. Generally, nevertheless, they charge the maximum enabled, which is $5,000.00 per license application. Even more, after you receive a State license, there are regulatory assessments that have to be paid annually, both after issuance and each year after when the license is renewed.

In 2018, the assessments vary.

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 likewise discover that there are other professional fees that you will have to pay in order to ensure that your application is complete, and that your business plan, with all of its needed parts, is up to par with the State's application requests. Those costs can differ drastically, and are tough to anticipate.

Needless to say, the application and licensing procedure is an expensive undertaking, but 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 Lawyer?

While not required, you should certainly make sure that you are getting guidance from an MMFLA lawyer before you consider opening a Michigan provisioning center. It  is very important that you get the best possible legal recommendations and that you are following all the regulations and requirements. Only an lawyer experienced in dealing with cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can make sure that you have all the tools and guidance that you need to give your application the best possibility at success. Failure to make sure that your application is complete, and that it supplies support for your ability to presently comply and make sure future compliance with the Administrative rules, your application is a lot more likely to be rejected or denied, and your dream of opening a provisioning center brought to an unceremonious ending.

How Much Will This Business Cost?

You can anticipate the total start-up costs for this type 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 be sufficient, realistically, to start business. You will need to potentially buy 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 accurate and total, and to make sure that you are currently in compliance with all laws and regulations, along with ensuring future compliance. This consists of everything from licensing to a full group of workers and much more. It's definitely not inexpensive, and you need to be prepared for a heavy investment. Nevertheless, as noted above, the market is big, and continuing to grow.

Can You Go Mobile?

No, you can not run a mobile provisioning center as it is presently prohibited to run one in the state of Michigan. Nevertheless, this could change, and that's why it  is necessary to speak with a medical marihuana lawyer regularly, so that you are keeping up to date with changes to the law. Cannabis law is an evolving and altering field, and as a outcome, there might 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 function is to offer safe medical marihuana to registered qualifying patients. You might only sell marihuana or marihuana infused items that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the items have actually been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not sell these products prior to your acquiring a license, unless you were running with city approval prior to February 15, 2018 and you have actually already submitted an application to the State seeking a license.

Soon a change in law will likely permit recreational cannabis sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility regulations and starts accepting licensing applications, only facilities licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be lawfully allowed to look for recreational marihuana licenses for the same activity. Therefore, getting a provisioning center license under the MMFLA, provides you the opportunity to get in the recreational market, where others will not.

What Are The Requirements?

In order to obtain a provisioning center license, you need to make sure 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 acquire an appropriately zoned structure in a city or township that has "opted-in" to the MMFLA to permit such facilities to operate within their boundaries. Whether your own it or rent it does not matter, however you must have the structure. After that, you will have to produce a business plan which contains all of the required 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 comply with the State's policies now and in the future.

Conclusion

We hope this supplies you with some of the info you need before opening a Michigan provisioning center. Needless to say, the process is costly, complicated and time consuming, however the benefit and ROI can be significant. In reality, obtaining a skilled MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take the majority of the work off your plate.

If you want details, or wish to come in and speak about making an application for a provisioning center license, we would like to have you come in for a consultation.

October 31, 2018 Deadline for Caregivers and The Changing Marihuana Dynamic in Michigan

Caregivers and the DoDo

Marijuana and extinct birds would seemingly never show up in any type of discussion. However, in consulting with our marijuana clients, a lot of them are inquiring about the stability of the Caregiver model, specifically as it was promoted years. What many in the sector have actually described as the "Caregiver Model" is going the way of the Do-Do bird on October 31, 2018. Halloween this year will be the extinction event for the caregiver model as many have actually recognized it for years here in Michigan. While Caregivers will continue to be able to grow and market to their registered patients, and for themselves, if they are additionally registered qualifying patients, the "gray market" where they were marketing their excess, and making a fairly good profit, is coming to an end.

What was the "Caregiver Model?"

Under the old "Caregiver Model," a Registered Caregiver can grow up to seventy-two (72) marihuana plants, if they had five registered qualifying patients (the most you were permitted) and they were a registered patient too. In some cases, multiple caregivers would collect at one place and grow their plants with each other, separated by paint lines on the floor, or in more sophisticated situations, with each having a protected locked area within the larger confined, locked facility. Many Caregivers can create much more functional marihuana than their patients can make use of. Those caregivers would certainly after that market their overages to dispensaries, many of which were operating with municipal approval throughout the State. This "grey" industry caused substantial earnings for many caregivers and dispensary owners. Under Michigan's Medical Marihuana Facilities Licensing Act, nonetheless, caregivers were going to be eliminated by 2021. Lots of Caregivers and market experts felt that indicated the "Caregiver Model" could continue to produce those very same profits for an additional 2 or two and a half years. The State, nevertheless, had other plans.

The State's Response

The State of Michigan, however, had other plans for the upstart cannabis industry. Initially, the Bureau of Licensing and Regulatory Affairs has taken a really scrutinizing technique to licensing applications where any of the applicants were Caregivers. Many of those applications have actually been denied over the past several months due to the fact that the Board has located that there were failures to reveal by many of these caregivers concerning just how much cash they made, how they made it, and for failing to declare that income on a State or Federal Tax Return. Nevertheless, in a September 2018 posting, LARA and the BMMR published that all facilities that are running with municipal approval, but which have not received a State License, have to stop purchasing unlabeled and unauthorized medical marihuana on October 31, 2018. https://www.michigan.gov/lara/0,4601,7-154-79571_79784-479748–,00.html. Any marihuana purchased after the October 31, 2018 date by those facilities need to be correctly classified and coded as required by the policies, and must come from an appropriately State Licensed grower or processor. The caregivers may still grow, but they will have no methods through which to market their product lawfully to a provisioning facility or processor. The old "Caregiver Model" will, effectively, come to an end.

Outcomes and Repercussions

Some may argue that there are still licensed or unlicensed centers that are mosting likely to proceed buying from caregivers, in spite of the State mandate. To make sure, there may be some that take that risk.

Nonetheless, the State has demonstrated a dedication to enforcement and inspection. If the State were to determine that an applicant or a licensed center was still taking caretaker overages and offering them, the State would likely do something about it. If an applicant were to be caught taking part in this model, they would likely be denied asap by the Board. If a licensed facility were to be caught breaking this mandate, the State would likely move on with sanctions against that center's license, consisting of a suspension or cancellation of the license. Provided just how much those licenses are worth, and the expense of getting any one of the permitted facility licensing types, many owners will be really reluctant to take chances with the possible loss of their license, or expertise that their license will not be restored.

If you are a caregiver and do not know what to do come October 31, 2018, are a person thinking of getting a MMFLA license, or are a candidate who requires representation or has questions regarding how these modifications will certainly impact you, give us a call. We have the experience and expertise in the marijuana and marihuana law areas to assist address your inquiries and provide you the advice you require.

Cannabis Prosecution Policy Shift

AG Sessions Gets Rid Of Obama Administration Regulation Relating To Prosecution of Federal Marijuana Regulations. On Tuesday, Attorney General Jeff Sessions released a policy which directs local U.S. Attorneys to prosecute federal criminal offenses for cannabis law offenses, even in States where recreational and medicinal marijuana usage has been approved by the voters. The new policy directive is problematic for a variety of reasons, and should create worry for people that use medical marijuana in Michigan, or to those who distribute it.

Criminal Law Consequences. The policy modification could lead to serious difficulties to the Cannabis industry, that has been steadily growing over the past decade. Up until the policy revision on Tuesday, a growing number of States resisted Federal policies and prohibitions on cannabis use for any reason, and have passed medical marijuana regulations, as we have here in Michigan, or they have granted recreational use of cannabis, as Colorado and California have accomplished, as examples. Nevertheless, even though the legislation in Michigan permits the usage of Medical marijuana, those individuals who are presently allowed to possess, transport and use cannabis legally under State law, are specifically violating federal law, and those individuals could be prosecuted in Federal Court for their narcotics infractions.

Previously, the Obama Administration had produced a policy statement that, in States that had passed cannabis usage laws, the Federal Government would disregard, unless they discovered cannabis being sold on school properties or in violation of other public policy directives. The policy enabled the expansion of legalized usage of marijuana, both medical marijuana and recreational use cannabis, including here in Michigan. Now, there are serious worries that the expansion movement in other States will stop because of a concern that there may be a Federal crackdown on the marijuana industry. Given that there are central registries in States that have medical cannabis, and that in States that have permitted recreational use, corporate documents denoting businesses that are engaged in the cannabis industry, there are, rightfully many people who are afraid of arrest and, worst of all, Federal forfeiture of money and their plants.

Impact on Michigan. The impact to Michigan, like other States, is not completely ascertainable at this point. The question circles around the concern of whether the US Attorneys for the Eastern and Western District are interested in reapportioning limited resources to prosecute medical cannabis facilities. The U.S. Attorney's Office has a restricted budget and has to prioritize when and where to devote those resources. Lately, there has been a strong drive to target heroin, fentanyl, and human trafficking, all of which are significant concerns, specifically in the Eastern District which covers Wayne, Oakland and Macomb counties, as well as others.

Those facts indicate that it is not likely that the US Attorney will redirect those resources to begin aggressively prosecuting marijuana associated facilities.

However, there is a reason that the Medical Marijuana Facilities Licensing Application has a full-page disclaimer, implying that the candidate recognizes that the operation of their facility or usage of their license to take part in any way in the marijuana business, is not permitted by Federal Law and that the United States Government could prosecute such a company for criminal offenses. Before the policy position change released by AG Sessions last Tuesday, the odds of such prosecutions were limited. Now, however, Michigan Medical Marijuana Facilities Licensing Act candidates need to be familiar with the policy change, as they have a substantial amount of capital in jeopardy in not only acquiring the license, but in operating their establishment. Despite The Fact That Medical Marijuana Facilities are functioning in total compliance with Michigan Law, the operators, workers and financiers could all be subject to Federal prosecution.

Conflict of Laws and the 10th Amendment. Numerous people might rightfully shake their head in confusion at these issues. One view is that, Michigan voters have passed a law permitting the usage of marijuana under specific strongly regulated conditions. Why should the Federal Government have the ability to come in and tell the State of Michigan they can not permit the use of Medical Marijuana. The other perspective is that the Federal Government has said the usage of cannabis is unlawful and so, the States shouldn't have the ability to undermine those laws. Such is the age-old argument over Federalism and States' Rights. The solution is, the States have their own system of laws that they are allowed to execute, independent and apart from those passed and enforced by the Federal Government. The dualist system of laws is an outgrowth of the 10th Amendment's provisions, authorizing the States to have their own set of laws, an outcome of what is commonly called the "States' Rights" movement. Nevertheless, where Federal Law and State Law are in explicit disagreement, Federal Law may be executed, even if some States have conflicting laws, because of this dual system. Therefore, anyone applying for a facilities license under the Medical Cannabis Facilities Licensing Act, needs to not only take the waiver seriously, but needs to get in touch with a lawyer who can go over with you the possible criminal liability you may be subject to in Federal Court should you establish and operate any of the facilities authorized under the MMFLA.

Proposition One Passed! What's Next? What's Legal?

Proposition One Passed

On November 6, 2018, Michigan became the tenth state to legislate the leisure use of marihuana by its residents. The vote passed by a considerable margin and makes Michigan the only State in the Midwest that has actually allowed recreational use of marijuana. Now, we need to consider what happens next, and individuals need to be clear about what's legal today, and what's changing in the near future.

Please note: Despite The Fact That MICHIGAN HAS PASSED PROPOSAL ONE AND THE STATE WILL ALLOW POSSESSION OF MARIHUANA UNDER PARTICULAR SCENARIOS IT IS STILL ILLEGAL UNDER FEDERAL LAW.

You must consult with an attorney if you have any questions about how the conflict in between State and Federal law might affect you.

What's Next?

Now that Proposition One has passed, what occurs now? Well, firstly, the recreational use of cannabis in its variety of usable types will now be allowed, however within limits and legal limitations. Before that can happen, however, the vote from November 6, 2018 will need to be certified by the State. The law does not go into effect until 10 days after the State has actually officially certified the election results. That certification should take place at the latest by November 26, 2018. Presuming that the State takes that long, that indicates that the earliest date wherein recreational use can start would be December 6, 2018.

After December 6, 2018, people can grow up to twelve marijuana plants and have up to 2.5 ounces of usable cannabis on their individual (or as much as an overall of 10 ounces, so long as anything over 2.5 ounces remains in protected and locked container inside a home) without worry of arrest or prosecution. Nevertheless, there will not be any recreational marijuana sellers from which to purchase retail items for some time. The State has up to twelve months after the vote is certified to make guidelines and an application procedure for persons and organisations to begin looking for recreational marihuana facilities licenses. For at least two years after the release of that application and the guidelines for licensing those centers, only individuals who have been authorized for a Medical Marihuana Facilities License under the MMFLA for both a State and City license will be enabled to look for an industrial recreational marihuana license. After 2 years, the State has the option of opening it up for non- MMFLA applicants, or, they could leave that restriction in place.

However, the State might put out an application and rules for making an application for licenses, however where those licensees can operate is up to which towns are going to opt-in to the recreational law. Similar to with the MMFLA, municipalities will need to "opt-in" to the law, and draft regional ordinances that determine where the shops can be located and how many of them each city will permit within its borders. The majority of the folks who have dealt with this, including myself, feel that this procedure is most likely to begin even prior to the real application and guidelines are out at the State level, as a number of the communities that have actually chosen in for medical marihuana are going to wish to be prepared for their correctly operating companies to be ready to use and become certified as soon as possible. Other communities that have not opted-in for Medical Marihuana have been waiting to see what was going to occur with Proposal One before they did something about it with regard to picking which direction to go moving forward.

So, the fundamental "What's Next" plan looks like this:

Certify Election Results by November 26, 2018

Legal Recreational Usage and Ownership (within the borders set by statute) starts December 6, 2018

By December 6, 2019, State should release Regulations and Application for Recreational Commercial Licenses

Towns (Cities, Municipalities, Towns) Must Vote to Opt-In and pass Zoning and other Regulations

By December 6, 2021, State may act to allow non-MMFLA license holders to make an application for Rec

Licenses

What's Legal Now?

Today, no recreational ownership is legalized in Michigan. As noted formerly, having any amount of marihuana remains unlawful under Federal law, and if you are puzzled or require explanation on the impact of the conflict in between Michigan's position and the Federal Government's stance, please contact us. Until 10 (10) days AFTER the vote is certified, the possesion of marihuana is still restricted to members of the general public in Michigan. Till that time, you can still be prosecuted and detained for possesion of marihuana. If you are a medical marihuana card holder, and your registration is up to date, nothing has changed for you. You might still have medical marihuana as allowed by the MMMA and the MMFLA. When December 6, 2018 shows up (or earlier, if the vote is certified before November 26, 2018), adults twenty-one (21) and older will be enabled to have on their individual up to 2.5 ounces of usable marihuana without fear of prosecution or arrest. Persons twenty-one years of age and older might also grow up to twelve (12) marijuana plants on residential or commercial property they own, so long as it is kept in an enclosed, locked center on the property that is not available to individuals not lawfully able to possess or access marihuana. If you have questions about those requirements, please contact our office for an assessment. After that, the business side of things will take some time to materialize, as it did after the 2016 passage of the Medical Marihuana Facilities Licensing Act. Anticipate the State to take that maximum amount of time permitted by law to promulgate policies and best the application for these facilities.

The other thing that is entirely legal now, and suggested, is preparing. If you wish to get into the recreational commercial marketplace, you need to start preparing now. Our office is really knowledgeable about the licensing procedure, and the path to success in the current and emerging cannabis marketplace. Give us a call so that we can start dealing with you on a strategy to offer you the very best possible opportunity to obtain an industrial license in the leisure marihuana market.

Wet Marijuana Still Illegal Per MI COA

Earlier this month, the Court of Appeals, in a split decision, figured out that the Michigan Medical Marijuana Act does NOT protect caregivers or patients that remain in possession of wet marijuana that remains in the drying out procedure, from prosecution. The Courts ruling in the case of People v. Vanessa Mansour determined that since wet marijuana that was in the drying process was not usable cannabis, possession of wet cannabis was not protected by the MMMA.

The MMMA specifies a number of the terms of the act. The term usable marijuana is specifically defined in the MMMA. The act defines usable marijuana to indicate the following: "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, however does not consist of the seeds, stalks, as well as roots of the plant. The Court found that since the act chose to use the word "dried" before the remaining components, that suggested that wet, undried cannabis was not a component of what the protections of the act were indicated to shield. Therefore, anybody in the marijuana business of caregiving, who is growing under the MMMA for themselves or other registered qualifying individuals, remains in infraction of the legislation, if they have wet marijuana, no matter the function for which you have it. Even you remain in the process of drying out the cannabis, if you are raided and the marijuana is wet, you can be in trouble.

The ruling is fairly bothersome for a number of factors. Initially, any caregiver that is currently growing under the MMMA, will, at some point, have wet cannabis that is drying however not usable. Therefore, any caregiver should recognize that if you are in possession of wet, non-usable cannabis, and the cops show up, you can be apprehended as well as the Court of Appeals has identified that you can be prosecuted and also punished for possession with intent to deliver cannabis, which the immunity provisions of Section 4 and also Section 8 of the MMMA will certainly not protect you. Second, the issue develops concerns regarding the practicality of the caregiving model, and also produces a bothersome circumstance for caregivers applying under the Medical Marijuana Facilities Licensing Act (MMFLA) for a growing or processing license.

Knowing that you are caregiving, which the Courts are suggesting that a component of your growing process triggers you to commit, at minimum, a misdemeanor, produces prospective problems for the application review procedure. Additionally, if having wet cannabis cause for criminal arrest as well as prosecution, exactly how does that effect farmers as well as processors that are to be licensed under the MMFLA. Seemingly, both laws are not interlinked and so, there shouldn't be any type of issues. However, the MMFLA uses the same "usable" marijuana definition as the MMMA. Particularly, subsection (ff) of M.C.L. § 333.27102 specifies usable cannabis as follows: (ff) "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, but does not include the seeds, stalks, and roots of the plant.

As a result, it wouldn't be a stretch to see the Judiciaries expand that MMMA definition to the MMFLA. Such a ruling in the future could put a significant kink in the medical cannabis industry under the MMFLA, most likely as a result of a feasible chilling impact. The ruling clearly causes problems for registered caregivers, as well as, possibly, for MMFLA cultivators, needs to the Court expand this analysis to cover cannabis growing as well as processing under the MMFLA. Basically, due to the fact that "wet" undried marijuana, according to the Court, does not meet the interpretation of "usable" marijuana, if authorities were to come to the area as well as discover wet cannabis, you could be looking at possible criminal liability. If you are a caregiver as well as are intending to continue growing for your patients under the MMMA, and also you have questions regarding the possible liability you have under this new judgment, do not wait to call our office for a consultation.

legal

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

Thinking of starting a Medical Marihuana Grow to make sure that you can offer marijuana to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver that wants to take your product commercial on a larger range? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so legally, as long as you can successfully obtain a license from the State to do so. This can be a wonderful opportunity with several brand-new owners seeing significant levels of profit as well as success in the market. However, if you make this choice, you do need to ensure that you obtain a Michigan commercial grow license. Failing to do so will certainly cause your venture being, most likely, illegal and bring about court activity that will certainly paralyze your company before it starts.

Sadly, the Michigan commercial grow license application is a long, complicated and expensive process. Ask a medical marijuana lawyer, and also they will certainly tell you that you need to see to it that you are prepared. Let's look at the actions you will certainly have to take, the team you need to build as well as the position that you might find yourself in.

Who Can Apply?

The initial question to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. The bright side is that any person, an individual or a full company can apply for a license. Applications started in 2017, and there is currently no due date to finish the needed forms. Certainly, there are specific individuals, that, due to the fact that they can not fulfill the minimum monetary demands, or due to the fact that they have a disqualifying criminal conviction in their history, are averted from applying. Nevertheless, thinking you don't have a disqualifying criminal conviction, and you, or your group of financiers, fulfill the minimum financial needs, there are 2 major steps to the MMFLA licensing application process. The initial step will be completed whether you have a final location for your structure or not. However, if you have already picked a location before submitting your State application, something that we highly advise, you can finish 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 2 sections-- 401 and also 404 of the Medical Marihuana Facilities Licensing Act (M.C.L. 333.27401 et seq.) to refer to when determining who you need to legally disclose as well as whether they have a relevant business interest in your operation. This includes people such as the spouse of the individual as well as all corporate officers. This is among the reasons it is worth speaking with an MMMA attorney as it can be rather challenging to get all the information correct. The State will wish to do a deep dive into the backgrounds of not only all of the "interested parties," or members/owners of your marijuana business, but the State will also consider the backgrounds of every one 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. To put it simply, if there is one bad apple in the bunch, the State throws away the entire application. Consequently, it is essential to find out about the backgrounds of the persons you have in your investment group, before applying for your Medical Marihuana Facilities License. There are a great deal of things that a knowledgeable lawyer can do to help you prepare for your application, and also to ensure that any type of prospective problems with your application are recognized, disclosed or gotten ready for before the application is submitted. Nonetheless, this isn't the only reason why a lawyer will commonly be an essential and required hire.

Think about The Cost

Before your information 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 fee for your application. BMMR will certainly reject to progress with your application until this has been paid completely. As well as being pricey, this fee is non-refundable so you want to make certain that there are no issues with your application that might bring about it being rejected. An MMFLA attorney can guarantee that this holds true as well as help you navigate any type of challenging concerns. Additionally, before you can obtain State authorization for operation, you will also have to get a municipal or city approval. Each city or township will certainly likewise need you to finish an application and also you will have to pay an application fee there too. The application expense can vary depending on what the city wishes to charge, however, they can not charge more than $5,000.00. A lot of cities as well as townships are charging the maximum amount. In total, the application fees alone are most likely to be in excess of $10,000.00. That does not consist of the costs of ancillary services, such as accounting professionals, engineers, marketers and also various other solutions needed for your application to be complete.

As soon as you have collected and also paid the application fees, all applicants and also supplemental applicants will certainly have their finger prints taken. You may assume that if you already have actually had your fingerprints taken by local law enforcement this step can be missed. Nonetheless, BMMR will certainly decline finger prints unless they are asked for and collected by them with the licensing procedure. You will have to go to an approved place where your finger prints can be collected electronically and sent for review by the State.

Facility License

This is the second step and bear in mind, if you have already picked a location to grow marijuana, you can complete this step with the first. You need to be prepared to meet all the MMFLA rules. During this step, you will certainly need to have a business plan. Nonetheless, that plan must include particular things. You must have all of the parts 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 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 permits MMFLA companies to run. The MMFLA has strict policies for people as well as companies preparing to grow in a municipality. If you intend to grow in a community, it should have an ordinance that authorizes marihuana facility operations. Colloquially, the municipality should have "opted-in" to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities who have actually opted in to MMFLA), as well as it should have passed a regulatory ordinance that sets for the policies and standards for those facilities to run within the city or township. The full standards can be found in 205, yet if you do have any type of questions you need to contact your municipal authority. Or, alternatively, get your attorney to do this for you. As the application proceeds, BMMR will get in touch with applicants, providing information on any various other demands, including a pre-licensure inspection of your location or facility.

Approved

Finally, you might gain approval for your license. After you are informed of this, you will 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 predict exactly what it will be. Nonetheless, beginning in 2019, regardless of which license you get, anticipate the assessment to be imposed and also 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. Keep in mind, with a legal representative by your side, this process can be far easier, as well as you will certainly gain professional recommendations on exactly how to proceed correctly to make certain that your application is accepted. Even after you obtain approval, legal guidance is suggested to assure you stay on top of changes to the law and also regulations, and so that you can remain in compliance as well as keep your company open.

Here at Fowler & Williams, PLC, we specialize in assisting customers get MMFLA licenses and ensuring continuing compliance.

Should you decide to retain counsel to assist you on your licensing journey, give us a call.

After September 15, Can I Still be a Caregiver?

The Bureau of Medical Marijuana Regulation is persevering on their stance that all cannabis centers that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will have to shut down, and will receive 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 explained that any facility that continues to run after receipt of the cease and desist will very likely not be granted a license. Additionally, the State has set forth suggested Final Rules relating to Medical Marihuana Facilities licensing, which is going to enable or registered qualifying patients to get house shipments from provisioning centers (with limitation, of course) and will also permit online buying. So, where does that leave registered caregivers, who were anticipating to be able to continue to be relevant to their patients until 2021?

Traditional Model

The old for registered caregivers was rather simple. You were enabled to grow up to twelve plants for each client. You could have five clients, besides yourself. If the caregiver was also a patient, they could also grow twelve plants for personal usage also. So, a caregiver could cultivate an overall of seventy-two marihuana plants. A lot of caregivers produced far more usable marihuana from those plants than they could make use of for patients and individual usage. 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 not obtained a State license were allowed to continue operating and buying from registered caregivers. Those facilities were permitted to purchase caregiver excess for thirty days after obtaining their State license for stock. That suggested significant earnings for caregivers and also considerable supply for dispensaries.

After September 15, 2018

The troubles for registered caregivers only starts on September 15, 2018. All State licensed facilities that will remain open and operating can not buy any product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly forbidden from acquiring or selling any kind of item that is not produced by a State Licensed Cultivator or Processor that has actually had their item 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 Grower or Processor is subject to State sanctions on their license, consisting of short-term or permanent revocation of the license. Given the threat, licensed facilities are really unlikely to risk buying from a caregiver, offered the possible effects.

Further, the unlicensed facilities to whom caregivers have been continuing to offer to, even throughout the licensing procedure, will be closing down. Some might continue to run, but given the State's stance on facilities that do not follow their cease and desist letters being looked at very unfavorably in the licensing process, the market will certainly be drastically reduced, if not eliminated. Therefore, caregivers will certainly not have much recourse for offering their overages, and also will be limited only to their present clients.

New Administrative Rules

A hearing will be held on September 17, 2018 regarding the brand-new proposed final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules stop being effective. Those final recommended administrative rules allow for house delivery by a provisioning center, and will additionally allow managed online ordering. Those 2 things eliminate much of the role contemplated by caregivers under the brand-new rules. Patients would certainly still need them to visit the provisioning center to grab and deliver marijuana to clients that were too sick or that were disabled and could not reach 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 be able to place an order online and have the provisioning facility deliver it to them, essentially eliminating the requirement of a caregiver.

Final thought

For better or worse, the State is doing everything it can to get rid of caregivers under the brand-new administrative scheme, even before the intended removal in 2021 contemplated by the MMFLA. There are a lot of reasons the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is getting rid of the caregiver , and they are moving that process along with celerity. The State is sending the message that they want caregivers out of the industry as soon as possible, and they are developing guidelines to make sure that happens sooner rather than later. The caregiver model, while useful and essential 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 brand-new legalized era.