You may be considering 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, but only if you get municipal approval and a State issued operations license. "Provisioning Center" is the legally permissible term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to informally as a "dispensary." The existing regulations no longer permit such businesses 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 company where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to buy medical marihuana for medical usage. While a provisioning center can be a successful venture, there are a couple of things you to understand before you move forward.
Can You Transport Marijuana In A Personal Vehicle?
Presently, under Michigan law, the general guideline is that possession and transport of marihuana in a automobile is restricted by law, and subjects you to criminal penalties. Only registered qualifying patients and registered caregivers under the MMMA can transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Cannabis 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 guest compartment. You may also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers may transport usable marihuana for as much as 5 patients (and themselves as well if the caregiver is also a qualifying patient) or up to 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 (attached to or on the same property) and transportation of the marihuana will not take place on a public road, it can be moved as set forth by LARA, BMMR under the Administrative rules.
How Much Cannabis Can You Provide?
A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana daily to a registered qualifying patient. A provisioning center that is licensed may likewise sell to a registered primary caregiver, however not more than 2.5 ounces per qualifying patient attached to the caregiver's license. If you are licensed by the State to operate 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 uses a software program called METRC. The State permits the use of twenty-four (24) software programs that are METRC compliant. Every consumer who sets foot in a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every consumer who enters a provisioning center must have their card run through the Statewide Monitoring Database to ensure that they have not already been given their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center needs to 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 acquired by the patient at your provisioning center.
What License Do You Need?
You need a full license provided by the state to run as a Michigan provisioning center. If you are growing marijuana, you will likewise need to make sure that you obtain a Michigan commercial grow license application. You might wish to speak with 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 acquiring a license is intricate and requires a substantial amount of time and money, the profitability 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 obtain a provisioning center license, you ought to do so before you begin running.
Can You Get More Than One License?
Yes, you can apply and receive more than one license. This is useful for any business or individual who wishes to set up a provisioning center and a grow or processor at the same time. According to the law, there is nothing stopping you from doing this. Even more, you can get multiple provisioning center licenses so that you can operate numerous provisioning centers in various 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 list on your application for the business. Therefore, if you wish to open numerous 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 should submit different applications for each license type, and need to satisfy 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 fees, which can be up to $5,000.00 per application. Each municipality is different, and they can charge different fees, and they can differ the fees depending upon which kind of license you apply for. Usually, however, they charge the maximum permitted, which is $5,000.00 per license application. Even more, after you receive a State license, there are regulatory assessments that will need to be paid annually, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, regardless of the type 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 need 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 difficult to anticipate.
Needless to say, the application and licensing procedure is an expensive 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 roi could be significant.
Should You Have A Attorney?
While not mandatory, you should certainly make sure that you are obtaining suggestions from an MMFLA lawyer 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 dealing with 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 very best possibility at success. Failure to make certain that your application is complete, and that it offers support for your capability to presently comply and make sure 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.
How Much Will This Business Cost?
You can expect the overall start-up expenses for this type of organisation 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 buy 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, expenses, and professional services that you need to acquire to make sure that your application is accurate and complete, and to make sure that you are presently in compliance with all laws and policies, in addition to guaranteeing future compliance. This includes everything from licensing to a full group of staff members and much more. It's certainly not cheap, and you need to be prepared for a heavy investment. However, as noted above, the market is large, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is presently illegal to operate one in the state of Michigan. Nevertheless, this might change, which's why it is very important to speak with a medical marihuana lawyer routinely, so that you are keeping up to date with modifications to the law. Cannabis law is an evolving and altering field, and as a result, there may come a time where the MMFLA or the MMMA is amended to permit a mobile provisioning center.
What Are You Lawfully 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 items have actually been tested by a MMFLA licensed safety compliance facility with correct labeling and tracking. You may not sell these products prior to your getting 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 change in law will likely permit recreational marijuana 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 facilities licensed by the MMFLA to sell, grow, process, transport or test medical marihuana will be lawfully permitted to make an application for recreational marihuana licenses for the same activity. Hence, acquiring a provisioning center license under the MMFLA, provides you the chance to go into the recreational market, where others will not.
What Are The Requirements?
In order to request 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 likewise need to acquire an properly zoned building in a city or municipality that has "opted-in" to the mmfla to allow such facilities to run within their boundaries. Whether your own it or lease it does not matter, however you need to have the structure. After that, you will need to produce a business plan which contains all of the required elements 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 details you need prior to opening a Michigan provisioning center. Needless to say, the procedure is costly, intricate and time consuming, but the reward and ROI can be significant. In reality, getting a proficient MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take the majority of the work off your plate.
If you want info, or want to come in and speak about applying for a provisioning center license, we would enjoy to have you come in for a consultation.
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