Overview of Medical Marijuana Licensing
Medical Marijuana Licensing
If you are looking to enter the Michigan cannabis industry, the first step will likely be to apply for a medical marijuana license. Except for microbusiness licenses and 100 plants recreational marijuana grow licenses, all Michigan recreational cannabis licenses first require that you obtain a Michigan medical marijuana license first. Below is an overview of the Michigan medical marijuana licensing process.
Where do I apply for a license?
The Department of Licensing and Regulatory Affairs accepts license applications in person at 2407 N Grand River Ave. Lansing, MI. However, most applicants apply
What license types were created?
Grower Class A - Grower license for 500 marijuana plants
Grower Class B - Grower license for 1,000 marijuana plants
Grower Class C - Grower license for 1,500 marijuana plants
Processor - License authorizes purchase of marijuana from a grower and sale of infused-products or marijuana to a provisioning center.
Secured Transporter - License authorizes storage and transportation of marijuana and associated money between facilities.
Provisioning Center - Licensee can sell marijuana to a qualified patient or primary caregiver.
Safety Compliance Facility - License authorizes the facility to receive marijuana from, test marijuana for, and return marijuana to only a marijuana facility
What are the fees for licenses?
The initial costs of a license at the state level include the application fee, which is paid when you submit your application, as well as the regulatory assessment, which is paid immediately prior to receiving your license. Additional costs at the state level are authorized under the Medical marijuana Facilities Licensing Act (MMFLA) and may be required but have rarely if ever been applied to applicants. An applicant may also need to pay a fee to its municipality of up to $5000.
State License Application Fee: The application fee is non-refundable and offsets the cost for LARA, the Michigan State Police (MSP), and/or contract costs for investigative services for conducting the background investigation of those applying for licenses.
The nonrefundable application fee, which must be submitted before an application will be processed, will be $6000.
State Additional Costs: If required, the applicant may need to pay additional costs. The MMFLA authorizes the following:
Late renewal fees as established by rule (Sec. 402(11))
3% tax on each provisioning center’s gross retail receipts (Sec. 601(1))
Actual costs of investigation and processing that exceed the application fee paid by an applicant (Sec. 401(5))
Is the state going to limit the number of licenses issued?
No. However, the local municipality has the authorization under MMFLA to restrict or limit the type and number of facilities licensed in their boundaries.
Requirements:
Entity/Individual Prequalification Documents
Completed Application
Copy of Applicant’s Gov’t Issued ID
Application Fee
Applicant’s Passport Quality Photograph Attestations
A – Applicant’s Acknowledgment, Agreement, & Consent (notarized)
B – Applicant’s Authorization to Release Information (notarized)
C – Applicant’s Verification & Affidavit of Full Disclosure (notarized)
D – Attestation & Disclosure of Submitter, if applicable (notarized)
E – Temporary Operation Attestation, if applicable (notarized)
F – Acknowledgment of Federal Law & Waiver (notarized)
Entity Information
DISCLOSURE 1 – Entity Information
Official Registration Document (e.g., Articles of Incorporation)
Copy of Bylaws or Other Governing Documents
Certificate of Good Standing
Approval to Conduct Business Transactions in Michigan
Trademark/Insignia Documents (if applicable)
Copy of Organizational Structure (if applicable
Authorizing Resolution (if applicable)
Certificate of Assumed Name (if applicable)
Ownership Interest
DISCLOSURE 2A – Ownership Interests
DISCLOSURE 2B – Ownership Interests Public Officials
DISCLOSURE 2C – True Party of Interest
DISCLOSURE 2D – marijuana Entity Ownership Interests
DISCLOSURE 2E – Other Interests
Financial
DISCLOSURE 3A – Financial Information
DISCLOSURE 3B – Real Property Ownership
DISCLOSURE 4 – Debt, Insolvency, or Bankruptcy Actions
DISCLOSURE 5 – Tax & Tax Compliance
CPA Attested Financial Statement Documenting Capitalization
Copy of Financial Institution Statements for Past 3 years
Income Tax Returns for Past 3 years
W2s and/or 1099s For Past 3 years
Copy of Documents Related to Property Ownership or Use
Copy of Notice of Tax Liability Due (if applicable)
Copy of Debt, Insolvency, Bankruptcy Order (if applicable)
Regulation
DISCLOSURE 6 – Governmental Regulation
Copy of Any Other Commercial Licenses (if applicable)
Copy of Any Comparable License from Other Jurisdictions
Criminal History
DISCLOSURE 7 – Criminal History
Evidence of Charge/Dismissal/Conviction/Expungement (if applicable)
Copy of Parole or Probation Information (if applicable)
Litigation
DISCLOSURE 8 – Litigation History
