Wet Marijuana Still Illegal Per MI COA

Previously this month, the Court of Appeals, in a split decision, determined that the Michigan Medical Marijuana Act does NOT protect caregivers or patients that are in possession of wet marijuana that is in the drying out process, from prosecution. The Judiciaries judgment in the case of People v. Vanessa Mansour established that since wet marijuana that remained in the drying process was not usable marijuana, possession of wet marijuana was not protected by the MMMA.

The MMMA defines most of the terms of the act. The term usable marijuana is specifically defined in the MMMA. The act defines usable marijuana to suggest the following: "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, but does not include the seeds, stalks, and also roots of the plant. The Court found that since the act chose to use the word "dried" before the remaining components, that suggested that wet, undried cannabis was not a component of what the protections of the act were implied to shield. As a result, anybody in the cannabis business of caregiving, that is growing under the MMMA for themselves or other registered qualifying clients, is in infraction of the law, if they have wet marijuana, no matter the objective for which you possess it. Even you remain in the procedure of drying the cannabis, if you are raided and the cannabis is wet, you could be in trouble.

The ruling is rather problematic for a variety of reasons. First, any caregiver that is currently growing under the MMMA, will, at some time, have wet cannabis that is drying however not usable. Therefore, any caregiver should comprehend that if you remain in possession of wet, non-usable cannabis, and the police show up, you can be detained and also the Court of Appeals has determined that you can be prosecuted and sentenced for possession with intent to deliver marijuana, which the immunity provisions of Section 4 and Section 8 of the MMMA will not protect you. Second, the matter creates concerns concerning the feasibility of the caregiving model, as well as likewise creates a problematic scenario for caregivers applying under the Medical Marijuana Facilities Licensing Act (MMFLA) for a growing or processing license.

Recognizing that you are caregiving, which the Courts are suggesting that a part of your cultivation procedure creates you to commit, at minimum, a misdemeanor, creates prospective troubles for the application review process. Additionally, if having wet cannabis cause for criminal apprehension as well as prosecution, exactly how does that influence growers and processors that are to be licensed under the MMFLA. Ostensibly, both statutes are not interlinked therefore, there shouldn't be any kind of concerns. However, the MMFLA uses the same "usable" marijuana definition as the MMMA. Particularly, subsection (ff) of M.C.L. § 333.27102 specifies usable cannabis as follows: (ff) "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, but does not include the seeds, stalks, and roots of the plant.

As a result, it wouldn't be a stretch to see the Judiciaries expand that MMMA interpretation to the MMFLA. Such a ruling later on can place a significant kink in the medical cannabis industry under the MMFLA, likely as an outcome of a possible chilling result. The judgment clearly causes concerns for registered caregivers, and also, potentially, for MMFLA farmers, needs to the Court increase this analysis to cover marijuana growing as well as processing under the MMFLA. Essentially, since "wet" undried marijuana, according to the Court, does not fulfill the meaning of "usable" marijuana, if authorities were to come to the location and also discover wet marijuana, you could be looking at possible criminal liability. If you are a caregiver and also are planning to continue growing for your patients under the MMMA, as well as you have inquiries about the potential obligation you have under this new ruling, do not wait to call our office for a consultation.

legal

Wet Marijuana Still Illegal Per MI COA

Previously this month, the Court of Appeals, in a split choice, established that the Michigan Medical Marijuana Act does NOT protect caregivers or patients who remain in possession of wet marijuana that is in the drying procedure, from prosecution. The Judiciaries ruling in the case of People v. Vanessa Mansour figured out that because wet cannabis that was in the drying out procedure was not usable marijuana, possession of wet cannabis was not protected by the MMMA.

The MMMA defines many of the terms of the act. The term usable marijuana is specifically defined in the MMMA. The act defines usable marijuana to mean the following: "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, yet does not consist of the seeds, stalks, as well as roots of the plant. The Court found that since the act chose to use the word "dried" before the remaining components, that suggested that wet, undried cannabis was not a part of what the protections of the act were implied to shield. As a result, anyone in the marijuana business of caregiving, that is growing under the MMMA for themselves or various other registered qualifying people, remains in violation of the legislation, if they have wet cannabis, regardless of the purpose for which you possess it. Even you are in the procedure of drying the cannabis, if you are raided and the marijuana is wet, you might be in trouble.

The ruling is rather troublesome for a variety of reasons. First, any caregiver that is presently growing under the MMMA, will, eventually, have wet marijuana that is drying out however not usable. As a result, any caregiver should comprehend that if you remain in possession of wet, non-usable marijuana, and the authorities arrive, you can be jailed and also the Court of Appeals has actually determined that you can be prosecuted and punished for possession with intent to deliver marijuana, and that the immunity provisions of Section 4 and also Section 8 of the MMMA will not protect you. Second, the issue creates questions about the practicality of the caregiving model, as well as likewise creates a bothersome circumstance for caregivers applying under the Medical Marijuana Facilities Licensing Act (MMFLA) for a growing or processing license.

Knowing that you are caregiving, and that the Courts are suggesting that a part of your cultivation procedure creates you to commit, at minimum, a misdemeanor, creates potential issues for the application review procedure. Additionally, if having wet marijuana cause for criminal apprehension and also prosecution, how does that influence cultivators and also processors who are to be licensed under the MMFLA. Ostensibly, both statutes are not interlinked and so, there shouldn't be any kind of issues. Nevertheless, the MMFLA uses the same "usable" marijuana definition as the MMMA. Particularly, subsection (ff) of M.C.L. § 333.27102 defines usable marijuana as follows: (ff) "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, but does not include the seeds, stalks, and roots of the plant.

For that reason, it wouldn't be a stretch to see the Judiciaries expand that MMMA interpretation to the MMFLA. Such a ruling down the road might place a major kink in the medical marijuana industry under the MMFLA, most likely as an outcome of a feasible chilling impact. The ruling clearly creates concerns for registered caregivers, and also, possibly, for MMFLA farmers, should the Court expand this reading to cover cannabis growing and processing under the MMFLA. Essentially, since "wet" undried marijuana, according to the Court, does not satisfy the meaning of "usable" cannabis, if authorities were to come to the place as well as discover wet cannabis, you might be looking at potential criminal liability. If you are a caregiver and are planning to proceed growing for your patients under the MMMA, and you have questions concerning the prospective responsibility you have under this new judgment, do not think twice to call our office for a consultation.

legal

October 31, 2018 Deadline for Caregivers and The Changing Marihuana Dynamic in Michigan

Caregivers and the DoDo

Cannabis and extinct birds would seemingly never turn up in any conversation. Nevertheless, in speaking to our marijuana clients, a number of them are asking about the feasibility of the Caregiver model, specifically as it was pushed for several years. What several in the industry have described as the "Caregiver Model" is going the way of the Do-Do bird on October 31, 2018. Halloween this year will be the extinction event for the caregiver model as several have actually understood it for several years here in Michigan. While Caregivers will certainly continue to have the ability to grow and offer to their registered patients, and for themselves, if they are additionally registered qualifying patients, the "gray market" where they were marketing their overages, and making a fairly good revenue, is coming to an end.

What was the "Caregiver Model?"

Under the old "Caregiver Model," a Registered Caregiver might grow up to seventy-two (72) marihuana plants, if they had 5 registered qualifying patients (the most you were enabled) and they were a registered patient also. Sometimes, several caregivers would collect at one area and grow their plants with each other, separated by paint lines on the floor, or in more innovative conditions, with each having a secured locked space within the bigger enclosed, locked center. Numerous Caregivers can create much more functional marihuana than their patients can make use of. Those caregivers would then sell their overages to dispensaries, many of which were running with municipal approval across the State. This "gray" marketplace resulted in substantial revenues for several caregivers and dispensary owners. Under Michigan's Medical Marihuana Facilities Licensing Act, however, caregivers were going to be phased out by 2021. Numerous Caregivers and market experts really felt that implied the "Caregiver Model" might remain to create those exact same earnings for another 2 or two and a half years. The State, however, had other plans.

The State's Response

The State of Michigan, nevertheless, had other plans for the upstart marijuana industry. First, the Bureau of Licensing and Regulatory Affairs has actually taken a very scrutinizing strategy to licensing applications where any of the candidates were Caregivers. Much of those applications have actually been denied over the past several months because the Board has located that there were failures to reveal by a number of these caregivers pertaining to how much cash they made, how they made it, and for failure to proclaim that earnings on a State or Federal Tax Return. Nonetheless, in a September 2018 posting, LARA and the BMMR published that all facilities that are operating with municipal approval, but which have actually not received a State License, need to stop buying unlabeled and unsanctioned medical marihuana on October 31, 2018. https://www.michigan.gov/lara/0,4601,7-154-79571_79784-479748–,00.html. Any type of marihuana purchased after the October 31, 2018 date by those centers must be correctly classified and coded as required by the policies, and must originate from an appropriately State Licensed grower or processor. The caregivers might still grow, but they will have no methods through which to market their product legitimately to a provisioning center or processor. The old "Caregiver Model" will, effectively, come to an end.

Results and Repercussions

Some might say that there are still licensed or unlicensed centers that are going to proceed buying from caregivers, regardless of the State mandate. To be sure, there might be some that take that danger.

Nonetheless, the State has actually demonstrated a commitment to enforcement and evaluation. If the State were to determine that an applicant or a licensed facility was still taking caretaker overages and marketing them, the State would likely take action. If a candidate were to be caught taking part in this model, they would likely be rejected immediately by the Board. If a licensed facility were to be caught violating this mandate, the State would likely move forward with sanctions against that facility's license, including a suspension or revocation of the license. Provided just how much those licenses are worth, and the price of acquiring any one of the permitted facility licensing types, most owners will be really resistant to take chances with the possible loss of their license, or understanding that their license will not be restored.

If you are a caregiver and do not recognize what to do come October 31, 2018, are an individual thinking about requesting a MMFLA license, or are a candidate who needs representation or has inquiries regarding exactly how these adjustments will certainly affect you, give us a call. We have the experience and expertise in the cannabis and marihuana law fields to aid answer your questions and supply you the support you require.

mra

October 31, 2018 Deadline for Caregivers and The Changing Marihuana Dynamic in Michigan

Caregivers and the DoDo

Cannabis and extinct birds would seemingly never turn up in any kind of conversation. Nevertheless, in consulting with our cannabis clients, many of them are inquiring about the practicality of the Caregiver model, specifically as it was pushed for several years. What many in the sector have referred to as the "Caregiver Model" is going the way of the Do-Do bird on October 31, 2018. Halloween this year will be the extinction event for the caregiver model as several have actually known it for several years here in Michigan. While Caregivers will continue to have the ability to grow and market to their registered patients, and for themselves, if they are additionally registered qualifying patients, the "gray market" where they were marketing their excess, and making a pretty good profit, is coming to an end.

What was the "Caregiver Model?"

Under the old "Caregiver Model," a Registered Caregiver can grow up to seventy-two (72) marihuana plants, if they had five registered qualifying patients (the most you were allowed) and they were a registered patient as well. In some cases, multiple caregivers would collect at one area and grow their crops together, divided by paint lines on the floor, or in more advanced scenarios, with each having a protected locked space within the bigger confined, locked center. Lots of Caregivers can generate far more useful marihuana than their patients could make use of. Those caregivers would certainly after that offer their excess to dispensaries, many of which were operating with municipal approval across the State. This "gray" marketplace caused considerable profits for numerous caregivers and dispensary owners. Under Michigan's Medical Marihuana Facilities Licensing Act, nevertheless, caregivers were mosting likely to be terminated by 2021. Lots of Caregivers and market experts really felt that suggested the "Caregiver Model" could remain to generate those exact same earnings for an additional two or two and a half years. The State, however, had other plans.

The State's Response

The State of Michigan, nonetheless, had other plans for the upstart cannabis sector. First, the Bureau of Licensing and Regulatory Affairs has actually taken a really scrutinizing technique to licensing applications where any of the candidates were Caregivers. Most of those applications have actually been refuted over the past several months because the Board has discovered that there were failings to divulge by many of these caregivers relating to just how much money they made, how they made it, and for failure to proclaim that revenue on a State or Federal Tax Return. Nevertheless, in a September 2018 posting, LARA and the BMMR published that all facilities that are operating with municipal approval, but which have actually not obtained a State License, need to stop purchasing unlabeled and unsanctioned medical marihuana on October 31, 2018. https://www.michigan.gov/lara/0,4601,7-154-79571_79784-479748–,00.html. Any kind of marihuana purchased after the October 31, 2018 date by those facilities should be appropriately identified and coded as required by the regulations, and must come from an appropriately State Licensed grower or processor. The caregivers may still grow, but they will certainly have no methods whereby to market their product lawfully to a provisioning center or processor. The old "Caregiver Model" will, effectively, come to an end.

Outcomes and Effects

Some may argue that there are still licensed or unlicensed centers that are mosting likely to continue buying from caregivers, in spite of the State mandate. To be sure, there might be some that take that threat.

However, the State has actually demonstrated a commitment to enforcement and examination. If the State were to identify that an applicant or a licensed center was still taking caretaker excess and offering them, the State would likely act. If a candidate were to be caught engaging in this model, they would likely be rejected asap by the Board. If a licensed center were to be caught breaching this mandate, the State would likely move on with sanctions against that facility's license, including a suspension or retraction of the license. Offered how much those licenses are worth, and the cost of obtaining any one of the allowed center licensing types, most owners will certainly be really reluctant to take chances with the possible loss of their license, or expertise that their license will certainly not be renewed.

If you are a caregiver and don't recognize what to do come October 31, 2018, are a person considering looking for a MMFLA license, or are an applicant who needs representation or has questions concerning how these modifications will influence you, give us a call. We have the experience and knowledge in the cannabis and marihuana regulation areas to assist address your concerns and provide you the guidance you require.

mra

10 Things You Need To Know Before Opening A Marihuana Provisioning Center

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.

10 Things You Need To Know Before Opening A Marihuana Provisioning Center

You might be thinking about opening 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 informally as a "dispensary." The present regulations 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 essentially a business 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 profitable endeavor, there are a few things you to understand before you move forward.

Can You Transport Cannabis In A Private Car?

Presently, under Michigan law, the general guideline is that possession and transport of marihuana in a car is prohibited by law, and subjects you to criminal charges. 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. 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 also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for as much as five patients (and themselves too 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 ( connected to or on the same property) and transport of the marihuana will not happen on a public roadway, it can be moved as stated by LARA, BMMR under the Administrative rules.

How Much Marijuana Can You Provide?

A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana each day to a registered qualifying patient. A provisioning center that is licensed may also sell 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 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 utilizes a software program called METRC. The State permits using twenty-four (24) software programs that are METRC compliant. Every client who goes into a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every consumer who goes into a provisioning center must have their card run through the Statewide Monitoring Database to guarantee that they have not already been provided their maximum daily quantity 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 acquired 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 ensure that you get a Michigan commercial grow license application. You might 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 obtaining a license is intricate and needs a significant amount of time and money, the profitability of these provisioning centers far surpasses the cost of getting 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 start operating.

Can You Get More Than One License?

Yes, you can apply and qualify for more than one license. This is useful for any business or person who wants to establish a provisioning center and a grow or processor at the exact same time. According to the law, there is absolutely nothing stopping you from doing this. Further, you can get numerous provisioning center licenses so that you can run numerous provisioning centers in various cities. The licenses do not attach to the person or the business that is applying, permitting you to utilize it anywhere you want. Rather, the licenses attach to the property you list on your application for the business. For that reason, if you wish to open multiple provisioning centers, you will need to send several State applications. If you prefer to get different types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, but you must submit different applications for each license type, and should meet the minimum financial and background requirements separately 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 different fees, and they can vary the charges depending on which type of license you apply for. Typically, however, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you get a State license, there are regulatory assessments that will need to be paid every year, both after issuance and each year after when the license is renewed.

In 2018, the assessments differ.

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, despite the type of license provided. In the meantime, however, the assessments will stay as noted above. You will also find that there are other professional costs that you will have to pay in order to ensure 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 considerably, and are hard to anticipate.

Needless to say, the application and licensing procedure is an pricey endeavor, 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 might be considerable.

Should You Have A Legal representative?

While not mandatory, you should definitely make certain that you are acquiring guidance from an MMFLA attorney before you think about opening a Michigan provisioning center. It  is necessary that you get the very best possible legal suggestions 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 ensure that you have all the tools and guidance that you need to give your application the very best possibility at success. Failure to make sure that your application is complete, and that it supplies support for your capability to presently comply and ensure future compliance with the Administrative rules, your application is far more likely to be declined or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.

How Much Will This Business Cost?

You can anticipate the total start-up fees for this type of business to be anywhere in 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 start 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, expenses, and professional services that you need to obtain to make sure that your application is precise and total, and to guarantee that you are presently in compliance with all laws and policies, along with ensuring future compliance. This consists of everything from licensing to a full team of staff members and much more. It's definitely 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. Nevertheless, this could change, and that's why it's important to talk to a medical marihuana lawyer frequently, so that you are keeping up to date with modifications to the law. Cannabis law is an evolving and altering field, and as a outcome, there may come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.

What Are You Legally Able To Do?

As a provisioning center, your sole function is to supply safe medical marihuana to registered qualifying patients. You might only sell marihuana or marihuana infused items that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the products 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 acquiring a license, unless you were operating with city approval prior to February 15, 2018 and you have actually already submitted an application to the State looking for a license.

Soon a change in law will likely permit recreational cannabis sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility regulations and starts accepting licensing applications, only facilities licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be lawfully allowed to get recreational marihuana licenses for the same activity. Therefore, acquiring a provisioning center license under the MMFLA, offers you the chance to get in the recreational market, where others will not.

What Are The Requirements?

In order to look for a provisioning center license, you need to ensure 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 have to acquire an appropriately zoned structure in a city or town that has "opted-in" to the mmfla to permit such facilities to run within their limits. Whether your own it or lease it does not matter, but you need to have the building. After that, you will need to produce a business plan which contains all of the necessary aspects 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 comply with the State's policies now and in the future.

Conclusion

We hope this offers you with some of the info you need prior to opening a Michigan provisioning center. Needless to say, the process is expensive, complex and time consuming, however the reward and ROI can be significant. In reality, getting a qualified 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 requesting a provisioning center license, we would love to have you come in for a consultation.

After September 15, Can I Still be a Caregiver?

The Bureau of Medical Marijuana Regulation is standing firm on their position that all marijuana centers that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will have to close down, and will get a cease and desist letter at that time. While the centers are not mandated to close down, the State Bureau of Licensing and Regulatory Affairs has explained that any facility that continues to operate after receipt of the cease and desist will likely not be given a license. Additionally, the State has set forth recommended Final Rules pertaining to Medical Marihuana Facilities licensing, which is going to enable or registered qualifying patients to get home shipments from provisioning centers (with restriction, of course) and will certainly additionally allow online ordering. So, where does that leave registered caregivers, that were anticipating to be able to stay relevant to their clients until 2021?

Traditional

The old model for registered caregivers was pretty simple. You were permitted to cultivate up to twelve plants for each client. You could have five patients, other than yourself. If the caregiver was also a client, they could also grow twelve plants for individual use too. So, a caregiver could grow a total amount of seventy-two marihuana plants. Many caregivers produced far more usable marihuana from those plants than they could use for patients and personal use. The caregivers would then sell their excess product to medical marihuana dispensaries.

Under the emergency rules, marihuana dispensaries that were operating with municipal authorization, but that had actually not gotten a State license were allowed to proceed operating as well as purchasing from registered caregivers. Those centers were permitted to acquire caregiver overages for thirty days after obtaining their State license for stock. That suggested significant profits for caregivers as well as substantial supply for dispensaries.

After September 15, 2018

The issues for registered caregivers only begins on September 15, 2018. All State licensed facilities that will continue to be open and operating can not buy any kind of product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly forbidden from acquiring or offering any kind of product that is not generated by a State Licensed Grower or Processor that has had their item tested and certified by a State Licensed Safety Compliance Facility. Any State Licensed Provisioning Center that is discovered to have product for sale that is not from a State Licensed Grower or Processor is subject to State sanctions on their license, including temporary or permanent revocation of the license. Given the threat, licensed facilities are extremely unlikely to risk purchasing from a caregiver, given the possible effects.

Even more, the unlicensed facilities to whom caregivers have been continuing to sell to, even throughout the licensing process, will be shutting down. Some may continue to operate, but given the State's position on centers that do not abide by their cease and desist letters being looked at very adversely in the licensing process, the market will certainly be significantly reduced, if not eliminated. Consequently, caregivers will not have much recourse for marketing their excess, and also will certainly be restricted only to their present clients.

New Administrative Rules

A hearing will be held on September 17, 2018 concerning the new recommended final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules stop being effective. Those final suggested administrative rules permit house delivery by a provisioning center, and will additionally allow controlled online buying. Those 2 things take away much of the function contemplated by caregivers under the brand-new policies. Patients would still require them to head to the provisioning center to get and deliver marijuana to clients that were too unwell or who were impaired and could not get to those licensed centers to get their medicinal cannabis. With this change to the administrative rules, such clients will no longer require a caregiver. They will have the ability to place an order online and have the provisioning facility deliver it to them, essentially eliminating the need of a caregiver.

Final thought

For better or worse, the State is doing everything it can to remove caregivers under the new administrative system, even before the intended elimination in 2021 contemplated by the MMFLA. There are a great deal of factors the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is eliminating the caregiver , and they are moving that process along with celerity. The State is sending the message that they want caregivers out of the industry as soon as possible, and they are developing guidelines to ensure that happens sooner rather than later. The caregiver model, while advantageous and necessary under the old Michigan Medical Marihuana Act structure, are now going the way of the Dodo. Like everything else, the Marihuana laws are evolving, and some things that have thrived in the past, won't make it to see the new legalized era.

After September 15, Can I Still be a Caregiver?

The Bureau of Medical Marijuana Regulation is persevering on their stance that all cannabis facilities that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will need to close down, and will receive a cease and desist letter at that time. While the centers are not mandated to close down, the State Bureau of Licensing and Regulatory Affairs has explained that any facility that continues to run after receipt of the cease and desist will most likely not be given a license. Additionally, the State has stated proposed Final Rules regarding Medical Marihuana Facilities licensing, which is going to permit or registered qualifying patients to get house shipments from provisioning centers (with constraint, obviously) and will additionally allow online ordering. So, where does that leave registered caregivers, who were expecting to be able to stay relevant to their patients up until 2021?

Traditional Model

The old for registered caregivers was rather straightforward. You were permitted to grow up to twelve plants for each client. You could have 5 patients, besides yourself. If the caregiver was also a patient, they could likewise grow twelve plants for personal usage also. So, a caregiver could cultivate a total amount of seventy-two marihuana plants. Many caregivers produced far more usable marihuana from those plants than they could utilize for clients and personal use. The caregivers would then sell their excess product to medical marihuana dispensaries.

Under the emergency rules, marihuana dispensaries that were operating with municipal approval, but that had actually not obtained a State license were permitted to proceed operating and also buying from registered caregivers. Those facilities were allowed to purchase caregiver overages for thirty days after obtaining their State license for supply. That meant significant profits for caregivers and considerable supply for dispensaries.

After September 15, 2018

The problems for registered caregivers only begins on September 15, 2018. All State licensed centers that will remain open and operating can not buy any kind of product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly banned from getting or offering any product that is not generated by a State Licensed Cultivator or Processor that has had their product tested and certified by a State Licensed Safety Compliance Facility. Any State Licensed Provisioning Center that is discovered to have product available that is not from a State Licensed Cultivator or Processor is subject to State sanctions on their license, including temporary or irreversible revocation of the license. Given the threat, licensed centers are really unlikely to take the chance of purchasing from a caregiver, given the potential repercussions.

Further, the unlicensed facilities to whom caregivers have been continuing to sell to, even during the licensing procedure, will be closing down. Some may continue to run, but given the State's stance on facilities that do not adhere to their cease and desist letters being looked at very adversely in the licensing process, the market will be significantly decreased, if not eliminated. Because of this, caregivers will certainly not have much option for selling their overages, and will be restricted only to their existing patients.

New Administrative Rules

A hearing will be held on September 17, 2018 concerning the new recommended final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules discontinue being effective. Those final proposed administrative rules enable house delivery by a provisioning center, and will likewise allow controlled online buying. Those two things remove much of the function contemplated by caregivers under the new policies. Patients would certainly still require them to visit the provisioning facility to pick up and deliver cannabis to patients that were too unwell or who were handicapped and could not reach those licensed facilities to obtain their medicinal marijuana. With this modification to the administrative rules, such clients will no longer require a caregiver. They will have the ability to place an order online and have the provisioning facility deliver it to them, basically getting rid of the necessity of a caregiver.

Verdict

For better or worse, the State is doing everything it can to remove caregivers under the new administrative plan, even prior to the intended elimination in 2021 contemplated by the MMFLA. There are a great deal of factors the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is eliminating the caregiver model, and they are moving that process along with celerity. The State is sending the message that they want caregivers out of the industry asap, and they are establishing rules to guarantee that happens sooner rather than later. The caregiver model, while helpful and necessary under the old Michigan Medical Marihuana Act structure, are now going the way of the Dodo. Like everything else, the Marihuana regulations are evolving, and some things that have flourished in the past, won't make it to see the new legalized era.