You might be thinking of 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, however only if you obtain municipal approval and a State issued operations license. "Provisioning Center" is the legally acceptable term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to colloquially as a "dispensary." The present guidelines 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 generally a company where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to purchase medical marihuana for medical usage. While a provisioning center can be a lucrative venture, there are a couple of things you to understand before you move forward.
Can You Transport Cannabis In A Personal Automobile?
Presently, under Michigan law, the general rule is that possession and transport of marihuana in a vehicle is forbidden by law, and subjects you to criminal penalties. Only registered qualifying patients and registered caregivers under the MMMA may transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Marijuana may only transported in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or persons in the traveler compartment. You might likewise not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers may transport usable marihuana for up to five patients (and themselves also if the caregiver is also a qualifying patient) or as much as 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, however, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their facility 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 transport of the marihuana will not take place on a public roadway, it can be moved as set forth by LARA, BMMR under the Administrative guidelines.
Just How Much Cannabis Can You Offer?
A licensed provisioning center under the MMFLA may not sell more than 2.5 ounces of marihuana daily to a registered qualifying patient. A provisioning center that is licensed may likewise offer 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 run a provisioning center, you will have to use 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 allows making use of twenty-four (24) software programs that are METRC compliant. Every consumer who sets foot in a provisioning center, you will have to use a point of sale system that has software that is compliant. Every customer who goes into a provisioning center needs to have their card run through the Statewide Monitoring Database to make sure that they have not already been given their maximum daily quantity of 2.5 ounces from another licensed provisioning center. A provisioning center should 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 purchased by the patient at your provisioning center.
What License Do You Need?
You need a full license given by the state to operate as a Michigan provisioning center. If you are growing marijuana, you will likewise need to make certain that you obtain 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 shut down. Most importantly, DO NOT begin operating your provisioning center without a State license being issued to you under the MMFLA. While the process of acquiring a license is intricate and requires a substantial amount of time and money, the success of these provisioning centers far surpasses the expense of obtaining one. If you can get approved for a license and make it through the application process to get a provisioning center license, you should do so before you begin operating.
Can You Get More Than One License?
Yes, you can apply and get approved for more than one license. This is useful for any business or person who wishes to establish 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. Even more, you can get several provisioning center licenses so that you can run several provisioning centers in various cities. The licenses do not connect to the individual or the business that is applying, enabling you to utilize it anywhere you want. Rather, the licenses connect to the property you list on your application for the business. For that reason, if you wish to open multiple provisioning centers, you will have to submit multiple State applications. If you want to acquire different types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, but you should send separate applications for each license type, and need to meet the minimum monetary and background requirements independently for each license type.
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 charges, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can vary the charges depending on which kind of license you apply for. Usually, nevertheless, they charge the maximum allowed, which is $5,000.00 per license application. Even more, after you get a State license, there are regulatory assessments that must be paid yearly, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 stated that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the kind of license issued. In the meantime, however, the assessments will remain as noted above. You will also discover that there are other professional charges that you will have to pay in order to guarantee 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 expenses can differ drastically, and are hard to predict.
Needless to say, the application and licensing procedure is an expensive venture, 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 considerable.
Should You Have A Lawyer?
While not required, you should definitely ensure that you are acquiring recommendations from an MMFLA attorney before you think about opening a Michigan provisioning center. It is very important that you get the very best possible legal advice and that you are following all the regulations and requirements. Only an lawyer experienced in managing cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can make sure that you have all the tools and guidance that you need to give your application the best chance at success. Failure to make sure that your application is complete, and that it provides support for your ability to presently comply and ensure future compliance with the Administrative rules, your application is much more likely to be rejected or denied, and your dream of opening a provisioning center brought to an unceremonious ending.
Just How Much Will This Business Cost?
You can expect the total start-up expenses for this kind of organisation to be anywhere 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 suffice, realistically, to begin the business. You will need to potentially purchase 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 obligatory fees, expenses, and professional services that you need to get to ensure that your application is precise and total, and to ensure that you are currently in compliance with all laws and guidelines, as well as ensuring future compliance. This includes everything from licensing to a full team of employees and much more. It's certainly not inexpensive, and you need to be prepared for a heavy 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 prohibited to run one in the state of Michigan. However, this might change, which's why it is very important to talk to a medical marihuana attorney regularly, so that you are keeping up to date with modifications to the law. Marijuana law is an evolving and changing field, and as a result, there might 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 items have actually been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not offer these products prior to your obtaining a license, unless you were operating with city approval prior to February 15, 2018 and you have already submitted an application to the State seeking a license.
Soon a modification in law will likely allow for recreational cannabis sales. If the ballot initiative passes, for the first two years after the State passes recreational marijuana facility guidelines and begins accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to get recreational marihuana licenses for the same activity. Hence, acquiring a provisioning center license under the MMFLA, offers you the opportunity to get in the recreational market, where others will not.
What Are The Requirements?
In order to obtain 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 get an appropriately zoned structure in a city or municipality that has "opted-in" to the MMFLA to allow such facilities to run within their limits. Whether your own it or lease it does not matter, however you need to have the building. After that, you will have to produce a business plan that contains all of the required aspects from the state, consisting of 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 before opening a Michigan provisioning center. Needless to say, the process is expensive, intricate and time consuming, but the benefit and ROI can be significant. In reality, getting a qualified MMFLA and mmma attorney, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take most of the work off your plate.
If you want info, or wish to come in and speak about making an application for a provisioning center license, we would love to have you come in for a consultation.
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