Thinking of beginning a Medical Marihuana Grow to ensure that you can give cannabis to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver that wishes to take your product commercial on a bigger scale? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so lawfully, so long as you can successfully obtain a license from the State to do so. This can be an amazing possibility with lots of brand-new owners seeing tremendous degrees of earnings as well as success in the market. Nevertheless, if you make this choice, you do need to make certain that you get a Michigan commercial grow license. Failing to do so will certainly lead to your venture being, most likely, prohibited and also lead to court action that will certainly maim your business before it starts.
Regrettably, the Michigan commercial grow license application is a long, complex and pricey process. Ask a medical marijuana lawyer, as well as they will inform you that you need to ensure that you are prepared. Let’s take a look at the steps you will certainly have to take, the team you need to develop and the position that you may find yourself in.
Who Can Apply?
The first concern to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. The good news is that anybody, an individual or a full organisation can apply for a license. Applications began in 2017, and there is currently no deadline to finish the necessary forms. Naturally, there are particular people, who, since they can not fulfill the minimum financial demands, or due to the fact that they have a disqualifying criminal conviction in their history, are prevented from applying. Nonetheless, presuming you don’t have a disqualifying criminal conviction, as well as you, or your group of financiers, fulfill the minimal economic demands, there are two primary actions to the MMFLA licensing application process. The first step will be finished whether you have a final location for your building or not. However, if you have actually already picked a place before submitting your State application, something that we highly suggest, you can complete both steps at the very same time.
Pre-qualification is the very first step, and it begins with an extensive background check. There are two 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 divulge as well as whether they have a relevant business interest in your operation. This consists of 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 lawyer as it can be fairly difficult to get all the details correct. The State will certainly wish 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 also consider the histories of every one of those individual’s spouses too. Should anybody have a disqualifying criminal conviction in their past, or not be of “good moral character,” the State can refute the whole application. Simply put, if there is one bad apple in the bunch, the State throws out the entire application. Therefore, it is important to know about the backgrounds of the persons you have in your investment group, prior to applying for your Medical Marihuana Facilities License. There are a great deal of things that a knowledgeable attorney can do to aid you get ready for your application, as well as to ensure that any type of prospective concerns with your application are recognized, disclosed or planned for before the application is sent. Nonetheless, this isn’t the only reason an attorney will frequently be a crucial and necessary hire.
Consider The Price
Before your information can be evaluated by an expert 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 decline to move forward with your application until this has been paid in full. Along with being costly, this fee is non-refundable so you want to see to it that there are no problems with your application that could lead to it being rejected. An MMFLA lawyer can guarantee that this holds true and also help you navigate any kind of tricky concerns. Even more, before you can get State approval for operation, you will also have to get a municipal or city authorization. Each city or township will certainly also require you to finish an application and also you will certainly have to pay an application fee there as well. The application cost can vary depending on what the city wishes to charge, nonetheless, they can not charge greater than $5,000.00. Many cities as well as townships are charging the maximum amount. In total, the application costs alone are likely to be in excess of $10,000.00. That doesn’t include the costs of ancillary services, such as accounting professionals, engineers, marketing experts and also various other solutions essential for your application to be complete.
As soon as you have gathered and 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 had your finger prints taken by local law enforcement this action can be skipped. However, BMMR will not accept fingerprints unless they are asked for and also collected by them with the licensing process. You will certainly need to go to an authorized location where your finger prints can be collected digitally and sent for evaluation by the State.
This is the 2nd step and keep in mind, if you have already chosen an area to grow cannabis, you can complete this step with the first. You should be prepared to fulfill all the MMFLA rules. During this step, you will certainly need to have a business plan. Nevertheless, that plan must include specific things. You must have all of the components needed by the State: facility plan, security plan, marketing plan, staffing plan, technology plan, waste disposal plan (if applicable), and 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 must be located in a city or township that allows MMFLA services to run. The MMFLA has strict regulations for people and also services intending 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 needs to have “opted-in” to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities that have actually opted in to MMFLA), as well as it has to have passed a regulatory ordinance that sets for the policies and standards for those centers to operate within the city or township. The full guidelines can be located in 205, however if you do have any inquiries you need to contact your municipal authority. Or, conversely, get your legal representative to do this for you. As the application advances, BMMR will get in touch with applicants, supplying details on any other requirements, including a pre-licensure inspection of your location or facility.
Lastly, you may get 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 impossible to predict precisely what it will be. However, beginning in 2019, no matter which license you get, expect the assessment to be imposed and also for that assessment to be substantial.
We hope this helps you choose whether you are ready to apply for a Michigan commercial grow license. Bear in mind, with an attorney at hand, this process can be far much easier, and also you will obtain professional recommendations on exactly how to proceed correctly to make certain that your application is accepted. Even after you acquire approval, legal advice is suggested to guarantee you stay on top of adjustments to the legislation as well as policies, and so that you can stay in compliance and also keep your business open.
Here at Fowler & Williams, PLC, we concentrate on aiding clients obtain MMFLA licenses and guaranteeing continuing compliance.
Should you choose to retain counsel to aid you on your licensing journey, give us a call.