You might be thinking of 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, but only if you get 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 existing policies 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 basically a company where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to purchase medical marihuana for medical use. While a provisioning center can be a profitable venture, there are a few things you to understand before you move forward.
Can You Transport Cannabis In A Personal Car?
Currently, under Michigan law, the general guideline is that possession and transport of marihuana in a car is restricted by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA can transport marihuana in a automobile. Even then, they have to do so in strict compliance with the MMMA. Cannabis may only carried in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or individuals in the guest compartment. You may likewise 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 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 transport of the marihuana will not take place on a public road, it can be moved as stated by LARA, BMMR under the Administrative rules.
Just How Much Marijuana Can You Supply?
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 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 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 permits the use of twenty-four (24) software programs that are METRC compliant. Every customer who sets foot in a provisioning center, you will have to use a point of sale system that has software that is compliant. Every customer who sets foot in 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 must 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 supplied by the state to operate as a Michigan provisioning center. If you are growing cannabis, you will also require to make sure that you get a Michigan commercial grow license application. You might wish to talk to an MMFLA legal representative, such as Fowler & Williams, PLC, about this to guarantee that you are fully licensed, or you will be closed 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 complicated and requires a considerable amount of time and money, the success of these provisioning centers far outweighs the cost of getting one. If you can get approved for a license and make it through the application process to acquire a provisioning center license, you ought to do so before you begin operating.
Can You Get More Than One License?
Yes, you can apply and get approved for more than one license. This is useful for any business or person who wants to establish 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 numerous provisioning center licenses so that you can run multiple provisioning centers in different cities. The licenses do not attach to the person or the business that is applying, enabling you to use it anywhere you desire. Rather, the licenses attach to the property you provide on your application for the business. Therefore, if you want to open several provisioning centers, you will need to send multiple State applications. If you prefer to obtain different types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, but you need to submit separate applications for each license type, and must meet the minimum financial and background requirements individually 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 charges, which can be up to $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can differ the charges depending on which kind of license you apply for. Usually, nevertheless, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you get a State license, there are regulatory assessments that have to be paid yearly, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, despite the type of license provided. For now, nevertheless, the assessments will remain as noted above. You will likewise discover that there are other professional costs that you will have to pay in order to guarantee 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 vary drastically, and are tough to predict.
Needless to say, the application and licensing procedure is an expensive venture, but in a market that is slated to do about $891,000,000.00 in annual sales this year, up from about $741,000,000.00 in 2017, the return on investment might be significant.
Should You Have A Lawyer?
While not mandatory, you should definitely ensure that you are obtaining suggestions from an MMFLA attorney before you think about opening a Michigan provisioning center. It's important that you get the 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 ensure that you have all the tools and guidance that you need to give your application the very best chance at success. Failure to make sure 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 rejected 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 expenses for this type 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 suffice, realistically, to start 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, costs, and expert services that you need to acquire to make sure that your application is accurate and complete, and to ensure that you are presently in compliance with all laws and regulations, in addition to making sure future compliance. This includes everything from licensing to a complete team of staff members and much more. It's definitely not cheap, and you need to be prepared for a heavy financial 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 currently unlawful to operate one in the state of Michigan. However, this could change, which's why it is necessary to speak with a medical marihuana attorney routinely, so that you are keeping up to date with changes to the law. Cannabis law is an evolving and changing field, and as a outcome, there may come a time where the MMFLA or the MMMA is amended to allow for a mobile provisioning center.
What Are You Lawfully Able To Do?
As a provisioning center, your sole function is to provide safe medical marihuana to registered qualifying patients. You might 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 items prior to your obtaining a license, unless you were operating with city approval prior to February 15, 2018 and you have already sent an application to the State looking for a license.
Soon a modification in law will likely permit recreational cannabis sales. If the ballot initiative passes, for the first two years after the State passes recreational cannabis facility guidelines and begins accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to make an application for recreational marihuana licenses for the same activity. Thus, acquiring 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 request 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 obtain an appropriately zoned building in a city or town 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 must have the building. After that, you will have to produce a business plan which contains all of the required components 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 offers you with some of the information you need before opening a Michigan provisioning center. Needless to say, the process is pricey, complicated and time consuming, however the benefit and ROI can be significant. In reality, obtaining 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 info, or wish to come in and speak about making an application for a provisioning center license, we would enjoy to have you come in for a consultation.
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