Michigan Marijuana Regulatory Agency Issues Emergency Rules
Filed on July 3, 2019, the MRA (Michigan Marijuana Regulatory Agency) released a set of emergency rules to cover the booming marijuana industry, the coming recreational aspect, and to potentially expand business opportunities. Some interesting notes include:
- Recreational establishments will not face the same financial requirements as medical businesses. Medical provisioning centers are required to have $150,000 - $500,000 in assets in order to be approved for a license, while recreational licenses can be issued regardless of capitol in order to ensure small start-ups have a place in the market.
- Recreational and medical marijuana can be sold in the same business, so long as the products are physically separated. Current medicinal facilities will get first crack at recreational licensing, and are expected to be accepting recreational customers (any adult 21 years of age and up) as soon as the end of the year.
- Licensing for marijuana use businesses (smoking lounges), as well as marijuana use event permits, at $1,000 license fee, with a tentative $1,000 annual renewal. The smallest of the small business licensing included in the ruleset, these permits will allow for BYOM (Bring Your Own Marijuana) lounges, and all manner of cannabis events and festivals. Outside of a private home, events and establishments with these licenses are the only places where smokers will be publicly permitted to partake.
- A provision designed to protect market supply that effectively forces the larger growers to sell outside of their ownership. Rule 33, section 8 reads: “A marihuana grower or a marihuana processor shall make reasonable efforts to sell or transfer marihuana products to a marihuana retailer not under common ownership or whose majority of ownership is not in common with either the marihuana grower or the marihuana processor to ensure that all marihuana establishments are properly serviced, to efficiently meet the demand for marihuana, and to provide for reasonable access to marihuana in rural areas. The agency may: (a) Issue an order to place a limitation on a marihuana grower or a marihuana processor specifically limiting the amount of marihuana product that may be sold to marihuana processors and marihuana retailers under common ownership or whose majority of ownership is in common with the marihuana grower or the marihuana processor. (b) Subject a licensee to sanctions or fines prescribed by Rule 20 for a violation of an order placing a limitation on a state license.”
- Licensing for micro-businesses at $8,000 for the license, with a $6,000 - $10,000 annual renewal fee. This license seems designed for the caregivers, allowing the holder to grow up to 150 plants, to process and package marijuana, the retail sale or transfer to an individual 21 and up, and to transfer to a testing facility, but does not allow the holder to sell product to other marijuana establishments.
- A new license, the “Excess Marihuana Grower”. At current, class A allows 100 plants, class B allows 500, and class C allows 2,000. The excess growers license will allow for up to five stacked class C licenses for a total of 10,000 plants.
To read the full 64 page emergency rules visit:
www.michigan.gov/documents/lara/Adult_Use_Marihuana_Establishments_659804_7.pdf
If you are confused on any aspect (do not worry, you are not alone) the MRA has an email where they are directing all questions, and doing their best to clarify:
MRA-adult-use-marijuana@michigan.gov
Irwin Proposes Bill to Expunge Criminal Cannabis Offenses
Sen. Jeff Irwin (D-Ann Arbor) proposed a bill mid July that would expunge the records of people convicted for both possession and use of marijuana. “Automatic expungement for all of our lowest-level cannabis offenders allows people to move on with their lives and making it automatic is essential because many people can’t afford an attorney, or the legal fees associated with an application”, he said. “Cannabis is now legal in Michigan and petty offenses in the past should be no barrier to getting back to work or school.” Also included in the bill is an avenue for those convicted of growing or selling to apply to ask a judge to remove their records, and a provision to grant expungements in instances where the convicted individual was caught with amounts that are now considered legal. “This is the next step in ending the unsuccessful prohibition of marijuana that incarcerated and punished Michigan residents unfairly for decades”, Sen. Irwin explained, “After last year’s mandate from voters, I am hopeful that a majority of legislators will vote to give Michigan residents back the opportunities that were unjustly taken from them.”
LARA Offers Tips for Provisioning Centers Thinking About Home Delivery
Home delivery has, in recent months, been added to the list of licensing options available to cannabis businesses in Michigan. In an effort to keep potential deliverers informed, the MRA (Marijuana Regulatory Agency) posted the LARA (Licensing and Regulatory Affairs) tip for licensees, which contains a link to the checklist and daily log created by the BMR (Bureau of Marijuana Regulation). The guidelines are, as described in the document, “very specific” and cover the following:
- Identifying patients and how they access online ordering systems
- Patient acknowledgement of release of information for home delivery services
- Online ordering system requirements
- Home delivery employee requirements
- Confirmation of patient identity, address, and valid patient status
- Sales documentation and daily/monthly limits
- Transport requirements, including vehicle, driver, product safety and security
- Documentation requirements, including transport manifests and daily logs
- Requirements regarding number of deliveries, payments, and hours of operation
- Requirements for emergency contingencies
Any provisioning center that wishes to deliver to patients is required to develop a procedure, using the BMR checklist as a guideline, and to submit that plan to the state for review and approval. To see the BMR checklist and get some idea as to whether or not home delivery is right for your provisioning center visit:
