You might 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 acquire 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 previously 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 basically a business where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) can come to acquire medical marihuana for medical use. While a provisioning center can be a lucrative endeavor, there are a few things you to know before you move forward.
Can You Transport Marijuana In A Personal Automobile?
Currently, under Michigan law, the basic guideline 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. Cannabis may only transported in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or individuals in the passenger compartment. You may also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers may carry usable marihuana for as much as 5 patients (and themselves too 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, nevertheless, 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 ( 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 Cannabis Can You Supply?
A licensed provisioning center under the MMFLA may not sell more than 2.5 ounces of marihuana per day to a registered qualifying patient. A provisioning center that is licensed may likewise offer 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 need to utilize 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 customer who enters 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 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 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 bought 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 cannabis, you will likewise need to make certain that you get a Michigan commercial grow license application. You might wish to speak with an MMFLA legal representative, such as Fowler & Williams, PLC, about this to make sure that you are fully licensed, or you will be shut down. Most importantly, DO NOT start running your provisioning center without a State license being issued to you under the MMFLA. While the process of acquiring a license is complex and requires a substantial amount of time and money, the profitability of these provisioning centers far exceeds the expense of obtaining one. If you can get approved for a license and make it through the application procedure to obtain a provisioning center license, you must 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 individual who wishes to set up a provisioning center and a grow or processor at the exact same time. According to the law, there is nothing stopping you from doing this. Further, you can acquire numerous provisioning center licenses so that you can run numerous provisioning centers in different cities. The licenses do not attach to the individual or the business that is applying, enabling you to use it anywhere you desire. Rather, the licenses attach to the property you list on your application for the business. For that reason, if you wish to open numerous provisioning centers, you will need to send multiple State applications. If you desire to obtain different kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, but you need to submit separate applications for each license type, and need to meet the minimum financial and background requirements individually 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 as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can differ the charges depending on which type of license you apply for. Generally, however, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you get a State license, there are regulatory assessments that will need to be paid annually, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 stated that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, despite the type of license issued. For now, nevertheless, 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 essential parts, is up to par with the State's application requests. Those expenses can differ drastically, and are hard to anticipate.
Needless to say, the application and licensing procedure is an costly endeavor, 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 roi might be significant.
Should You Have A Attorney?
While not required, you should certainly make certain that you are getting recommendations from an MMFLA lawyer before you consider opening a Michigan provisioning center. It's important 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 chance at success. Failure to ensure that your application is complete, and that it supplies support for your capability to currently comply and guarantee future compliance with the Administrative rules, your application is much more likely to be rejected 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 kind of service to be anywhere 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 be sufficient, realistically, to begin 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 obligatory fees, expenses, and professional services that you need to get to guarantee that your application is precise and total, and to make sure that you are currently in compliance with all laws and policies, along with ensuring future compliance. This consists of everything from licensing to a complete group of staff members and much more. It's definitely not inexpensive, and you need to be prepared for a heavy financial investment. However, as noted above, the marketplace is large, 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 is very important to speak with a medical marihuana attorney frequently, so that you are keeping up to date with modifications to the law. Cannabis law is an evolving and changing field, and as a outcome, 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 function is to offer safe medical marihuana to registered qualifying patients. You might only offer marihuana or marihuana infused products that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the items have 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 running with city approval prior to February 15, 2018 and you have actually already submitted an application to the State seeking a license.
Soon a change in law will likely allow for 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 centers licensed by the MMFLA to sell, grow, process, transport or test medical marihuana will be legally allowed to look for recreational marihuana licenses for the same activity. Therefore, acquiring a provisioning center license under the MMFLA, offers 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 fulfill the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will also have to acquire an appropriately zoned structure in a city or town that has "opted-in" to the MMFLA to permit such centers to operate within their borders. 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 that contains all of the required 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 abide by the State's regulations now and in the future.
Conclusion
We hope this provides you with some of the information you need before opening a Michigan provisioning center. Needless to say, the process is expensive, complex and time consuming, but the reward and ROI can be substantial. In reality, getting a qualified MMFLA and MMMA lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take the majority of the work off your plate.
If you want information, or want 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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