Considering beginning a Medical Marihuana Grow to make sure that you can supply cannabis to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver that wants to take your item 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 might be a fantastic chance with many brand-new owners seeing significant levels of profit as well as success in the market. Nonetheless, if you make this decision, you do need to ensure that you obtain a Michigan commercial grow license. Failing to do so will result in your endeavor being, most likely, prohibited as well as result in court action that will paralyze your service before it starts.
However, the Michigan commercial grow license application is a long, complex as well as costly process. Ask a medical marijuana attorney, as well as they will tell you that you need to see to it that you are prepared. Let’s consider the steps you will certainly have to take, the team you need to build and the position that you may find yourself in.
Who Can Apply?
The initial inquiry to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. Fortunately is that any person, an individual or a full company can apply for a license. Applications started in 2017, and also there is presently no due date to complete the needed forms. Obviously, there are certain people, that, due to the fact that they can not satisfy the minimal monetary demands, or since they have a disqualifying criminal conviction in their background, are precluded from applying. However, assuming you do not have a disqualifying criminal conviction, as well as you, or your team of investors, meet the minimum financial demands, there are two primary steps to the MMFLA licensing application process. The first step will be completed whether you have a final location for your building or not. Nonetheless, if you have already selected an area before sending your State application, something that we extremely suggest, you can complete both actions at the exact same time.
Pre-qualification is the primary step, and it begins with an extensive background check. There are two sections– 401 and 404 of the Medical Marihuana Facilities Licensing Act (M.C.L. 333.27401 et seq.) to refer to when identifying who you need to legally disclose 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 among the reasons why it is worth consulting 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 additionally look into the histories of every one of those individual’s spouses too. Should anyone have a disqualifying criminal conviction in their past, or not be of “good moral character,” the State can reject the whole application. Simply put, if there is one bad apple in the bunch, the State throws out the whole application. As a result, it is essential to find out about the histories of the individuals you have in your investment group, before applying for your Medical Marihuana Facilities License. There are a great deal of things that an experienced lawyer can do to assist you prepare for your application, and to ensure that any prospective issues with your application are known, disclosed or gotten ready for before the application is sent. However, this isn’t the only reason an attorney will typically be a vital and necessary hire.
Consider 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 cost for your application. BMMR will certainly decline to move forward with your application until this has been paid completely. As well as being costly, this fee is non-refundable so you want to ensure that there are no problems with your application that could cause it being turned down. An MMFLA attorney can guarantee that this holds true and also help you navigate any difficult concerns. Better, before you can acquire State authorization for operation, you will certainly also need to get a municipal or city authorization. Each city or township will certainly additionally need you to finish an application and also you will certainly need to pay an application fee there as well. The application cost can range depending on what the city wants to charge, nevertheless, they can not charge greater than $5,000.00. Many cities and also townships are charging the maximum amount. In total, the application costs alone are most likely to be in excess of $10,000.00. That does not include the costs of ancillary services, such as accounting professionals, engineers, marketing experts and also various other services essential for your application to be total.
As soon as you have collected as well as paid the application fees, all applicants and supplemental applicants will certainly have their fingerprints taken. You could believe that if you currently have had your finger prints taken by local law enforcement this step can be avoided. However, BMMR will certainly decline fingerprints unless they are requested and collected by them with the licensing process. You will certainly have to go to an approved location where your fingerprints can be collected digitally and also submitted for evaluation by the State.
This is the second step and keep in mind, if you have already selected an area to grow marijuana, you can finish this step with the first. You must be prepared to fulfill all the MMFLA rules. During this step, you will need to have a business plan. Nevertheless, that plan needs to include particular things. You must have every one of the components required 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 stated 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 permits MMFLA organisations to operate. The MMFLA has strict guidelines for individuals as well as organisations intending to grow in a municipality. If you intend to grow in a district, it has to 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 who have actually opted in to MMFLA), and also it must have passed a regulatory ordinance that sets for the regulations and guidelines for those facilities to operate within the city or township. The complete guidelines can be discovered in 205, however if you do have any kind of concerns you need to call your municipal authority. Or, additionally, get your attorney to do this for you. As the application proceeds, BMMR will certainly speak to candidates, offering details on any kind of other demands, including a pre-licensure inspection of your location or facility.
Lastly, you might acquire approval for your license. After you are informed of this, you will 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 yearly, so it is difficult to anticipate specifically what it will be. Nevertheless, beginning in 2019, no matter which license you get, expect the assessment to be imposed and for that assessment to be substantial.
We hope this helps you make a decision 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 much easier, and you will certainly obtain experienced guidance on exactly how to proceed appropriately to make sure that your application is accepted. Even after you obtain approval, legal advice is suggested to assure you stay on top of adjustments to the law and also policies, and so that you can stay in compliance as well as keep your service open.
Here at Fowler & Williams, PLC, we specialize in aiding customers acquire MMFLA licenses and also ensuring continuing compliance.
Should you decide to retain counsel to assist you on your licensing journey, give us a phone call.