You may be thinking about 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 acquire municipal approval and a State issued operations license. "Provisioning Center" is the legally allowable term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was previously referred to informally as a "dispensary." The present guidelines no longer allow 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 essentially a business where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) can come to buy medical marihuana for medical use. While a provisioning center can be a rewarding venture, there are a couple of things you to know before you move forward.
Can You Transport Marijuana In A Private Vehicle?
Currently, under Michigan law, the basic rule is that possession and transport of marihuana in a automobile is prohibited 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 have to do so in strict compliance with the MMMA. Marijuana may only transferred 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 center that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located ( connected to or on the same property) and transportation of the marihuana will not happen on a public road, 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 each day 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 utilize 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 using twenty-four (24) software programs that are METRC compliant. Every customer who sets foot in a provisioning center, you will need to use a point of sale system that has software that is compliant. Every client who goes into a provisioning center needs to have their card run through the Statewide Monitoring Database to ensure that they have not already been provided their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center needs to also update the qualifying patient's profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was bought by the patient at your provisioning center.
What License Do You Need?
You need a full license supplied by the state to operate as a Michigan provisioning center. If you are growing marijuana, you will likewise need to make certain that you apply for a Michigan commercial grow license application. You might wish to talk to an MMFLA legal representative, such as Fowler & Williams, PLC, about this to ensure that you are fully licensed, or you will be shut down. Most importantly, DO NOT start operating your provisioning center without a State license being issued to you under the MMFLA. While the process of obtaining a license is complex 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 get through the application procedure to acquire a provisioning center license, you ought to do so before you start operating.
Can You Get More Than One License?
Yes, you can apply and receive more than one license. This is useful for any business or person who wishes to set up a provisioning center and a grow or processor at the very same time. According to the law, there is absolutely nothing stopping you from doing this. Even more, you can get several provisioning center licenses so that you can run several provisioning centers in different cities. The licenses do not connect to the individual or the business that is using, permitting you to use it anywhere you desire. Rather, the licenses connect to the property you provide on your application for the business. Therefore, if you wish to open multiple provisioning centers, you will need to send numerous State applications. If you desire to obtain various kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, however you must send separate applications for each license type, and must satisfy the minimum financial and background requirements separately for each license type.
Just 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 costs, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge different fees, and they can vary the costs depending on which kind of license you apply for. Typically, nevertheless, they charge the maximum permitted, which is $5,000.00 per license application. Even more, after you get a State license, there are regulatory assessments that have to be paid every year, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 actually stated that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the type of license issued. In the meantime, however, the assessments will remain as noted above. You will likewise find that there are other professional charges that you will have to pay in order to make sure that your application is complete, and that your business plan, with all of its necessary parts, is up to par with the State's application requests. Those expenses can differ significantly, and are difficult to predict.
Needless to say, the application and licensing process is an pricey undertaking, however 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 might be substantial.
Should You Have A Lawyer?
While not mandatory, you should certainly make certain that you are obtaining suggestions from an MMFLA legal representative before you consider opening a Michigan provisioning center. It is essential that you get the very best possible legal guidance 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 guarantee that you have all the tools and guidance that you need to give your application the very best opportunity at success. Failure to make certain that your application is complete, and that it offers support for your capability to currently comply and guarantee future compliance with the Administrative rules, your application is much more likely to be turned down or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.
Just How Much Will This Business Cost?
You can anticipate the total start-up costs for this type of business to be anywhere in between 400 and 500K, at a minimum. While the State requires a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not suffice, realistically, to start the business. You will need to potentially acquire 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 mandatory fees, costs, and expert services that you need to get to guarantee that your application is precise and complete, and to ensure that you are presently in compliance with all laws and policies, in addition to guaranteeing future compliance. This consists of everything from licensing to a full team of employees and much more. It's certainly not cheap, and you need to be prepared for a heavy investment. However, as noted above, the marketplace is big, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is presently prohibited to operate one in the state of Michigan. However, this could change, which's why it is essential to speak with a medical marihuana lawyer frequently, so that you are keeping up to date with changes to the law. Cannabis 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 allow for a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole purpose 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 products have been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not offer these products prior to your getting a license, unless you were running with city approval prior to February 15, 2018 and you have already submitted an application to the State looking for a license.
Soon a modification in law will likely enable recreational cannabis sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility policies and starts accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to look for recreational marihuana licenses for the same activity. Thus, obtaining a provisioning center license under the MMFLA, provides you the opportunity to enter the recreational market, where others will not.
What Are The Requirements?
In order to look for a provisioning center license, you need to guarantee that you do not have a disqualifying criminal conviction, and that you meet the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will also need to acquire an appropriately zoned building in a city or municipality that has "opted-in" to the MMFLA to permit such centers to operate within their limits. Whether your own it or lease it does not matter, but you must have the building. After that, you will have to produce a business plan which contains all of the required elements from the state, including 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 policies now and in the future.
Conclusion
We hope this supplies you with some of the info you need prior to opening a Michigan provisioning center. Needless to say, the process is pricey, intricate and time consuming, however the benefit and ROI can be substantial. In reality, acquiring a skilled MMFLA and mmma lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take most of the work off your plate.
If you want details, or want to come in and discuss getting a provisioning center license, we would love to have you come in for a consultation.
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