You may 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 allowable term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to informally as a "dispensary." The current policies no longer permit such companies 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 organisation where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to buy medical marihuana for medical usage. While a provisioning center can be a lucrative venture, there are a few things you to understand before you move forward.
Can You Transport Cannabis In A Private Car?
Presently, under Michigan law, the basic guideline is that possession and transport of marihuana in a vehicle is restricted by law, and subjects you to criminal penalties. 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. Marijuana may only transferred in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or individuals in the passenger compartment. You may also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for up to 5 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, 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 roadway, it can be moved as stated by LARA, BMMR under the Administrative rules.
How Much Cannabis Can You Provide?
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 also 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 operate a provisioning center, you will need 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 using twenty-four (24) software programs that are METRC compliant. Every client who goes into a provisioning center, you will need to use a point of sale system that has software that is compliant. Every customer who goes into a provisioning center must have their card run through the Statewide Monitoring Database to ensure that they have not already been given their maximum daily allotment 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 acquired by the patient at your provisioning center.
What License Do You Need?
You need a full license supplied by the state to run as a Michigan provisioning center. If you are growing cannabis, you will also need to make sure that you apply for a Michigan commercial grow license application. You may wish to speak with an MMFLA attorney, such as Fowler & Williams, PLC, about this to ensure that you are fully licensed, or you will be closed down. Most importantly, DO NOT start running your provisioning center without a State license being issued to you under the MMFLA. While the process of obtaining a license is complex and needs a significant amount of time and money, the profitability of these provisioning centers far outweighs the cost of acquiring one. If you can qualify for a license and make it through the application procedure 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 receive more than one license. This is useful for any business or person who wishes to set up a provisioning center and a grow or processor at the very same time. According to the law, there is nothing stopping you from doing this. Further, you can obtain multiple provisioning center licenses so that you can operate multiple provisioning centers in various cities. The licenses do not attach to the individual or the business that is applying, allowing you to utilize it anywhere you want. Rather, the licenses attach to the property you list on your application for the business. For that reason, if you wish to open numerous provisioning centers, you will need to submit numerous State applications. If you prefer to get different 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 should send separate applications for each license type, and need to fulfill the minimum monetary and background requirements independently 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 fees, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can differ the charges depending on which type of license you apply for. Generally, nevertheless, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you receive a State license, there are regulatory assessments that have to be paid annually, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 actually stated that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, regardless of the type of license issued. For now, nevertheless, the assessments will remain as noted above. You will likewise discover that there are other professional charges that you will have to pay in order to ensure 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 costs can vary significantly, and are hard to predict.
Needless to say, the application and licensing procedure is an costly 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 significant.
Should You Have A Attorney?
While not required, you should definitely make sure that you are obtaining suggestions from an MMFLA legal representative before you consider opening a Michigan provisioning center. It is essential that you get the best possible legal advice and that you are following all the regulations and requirements. Only an attorney experienced in handling 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 best opportunity at success. Failure to make sure that your application is complete, and that it provides support for your ability to currently comply and make sure future compliance with the Administrative rules, your application is much more likely to be rejected or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.
Just How Much Will This Business Cost?
You can anticipate the total start-up costs for this kind of organisation to be anywhere in between 400 and 500K, at a minimum. While the State needs a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not be sufficient, realistically, to begin 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 mandatory fees, costs, and expert services that you need to get to make sure that your application is precise and total, and to guarantee that you are currently in compliance with all laws and guidelines, along with making sure future compliance. This consists of everything from licensing to a complete group of staff members and much more. It's certainly not cheap, and you need to be prepared for a heavy financial 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 currently illegal to run one in the state of Michigan. Nevertheless, this could change, and that's why it is essential to speak to a medical marihuana attorney frequently, so that you are keeping up to date with modifications to the law. Marijuana law is an evolving and altering field, and as a result, there may come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.
What Are You Lawfully Able To Do?
As a provisioning center, your sole function is to supply safe medical marihuana to registered qualifying patients. You may only sell 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 proper labeling and tracking. You may not sell these items prior to your obtaining a license, unless you were operating with city approval prior to February 15, 2018 and you have already sent 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 two years after the State passes recreational cannabis facility policies and begins accepting licensing applications, only facilities licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be lawfully permitted to look for recreational marihuana licenses for the same activity. Hence, getting a provisioning center license under the MMFLA, offers you the opportunity to go into the recreational market, where others will not.
What Are The Requirements?
In order to request 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 likewise have to obtain an properly zoned structure in a city or township that has "opted-in" to the MMFLA to allow such centers to run within their limits. 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 that contains all of the required elements 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 adhere to the State's regulations now and in the future.
Conclusion
We hope this provides you with some of the info you need prior to opening a Michigan provisioning center. Needless to say, the procedure is costly, intricate and time consuming, however the benefit and ROI can be considerable. In reality, getting a proficient MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take the majority of the work off your plate.
If you want info, or wish to come in and talk about obtaining a provisioning center license, we would enjoy to have you come in for a consultation.
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