You may 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 permissible 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 current 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 generally a company 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 usage. While a provisioning center can be a profitable venture, there are a couple of things you to know before you move forward.
Can You Transport Marijuana In A Private Car?
Currently, under Michigan law, the general guideline is that possession and transport of marihuana in a automobile is forbidden 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 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 might likewise 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 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 street, it can be moved as set forth by LARA, BMMR under the Administrative rules.
How Much Marijuana Can You Supply?
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 likewise 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 need 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 allows the use of twenty-four (24) software programs that are METRC compliant. Every consumer who goes into a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every customer who sets foot in a provisioning center has to have their card run through the Statewide Monitoring Database to make sure that they have not already been provided their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center should also update the qualifying patient's profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was bought by the patient at your provisioning center.
What License Do You Need?
You need a full license given by the state to run as a Michigan provisioning center. If you are growing marijuana, you will also require to ensure that you get a Michigan commercial grow license application. You may want to speak with an MMFLA attorney, 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 begin running 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 considerable quantity of time and money, the profitability of these provisioning centers far outweighs the expense of getting one. If you can qualify for a license and get through the application procedure to obtain a provisioning center license, you need to do so before you start running.
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 wants to establish a provisioning center and a grow or processor at the same time. According to the law, there is absolutely nothing stopping you from doing this. Even more, you can acquire several provisioning center licenses so that you can operate numerous provisioning centers in different cities. The licenses do not connect to the individual or the business that is using, allowing you to utilize it anywhere you desire. Rather, the licenses attach to the property you provide on your application for the business. For that reason, if you want to open numerous provisioning centers, you will need to submit numerous State applications. If you desire to acquire various kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, but you should submit separate applications for each license type, and must satisfy 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 costs, 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 type of license you apply for. Typically, however, they charge the maximum enabled, which is $5,000.00 per license application. Even more, after you receive a State license, there are regulatory assessments that must be paid every year, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, despite the kind of license provided. In the meantime, nevertheless, the assessments will stay as noted above. You will likewise find 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 differ considerably, and are tough 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 considerable.
Should You Have A Attorney?
While not mandatory, you should certainly ensure that you are obtaining advice from an MMFLA attorney before you think about opening a Michigan provisioning center. It is essential that you get the very best possible legal suggestions 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 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 supplies support for your capability to currently comply and ensure future compliance with the Administrative rules, your application is a lot 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 anticipate the overall start-up expenses for this kind of company to be anywhere 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 be sufficient, realistically, to begin 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 obligatory fees, costs, and expert services that you need to get to make sure that your application is precise and complete, and to guarantee 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 cheap, and you need to be prepared for a heavy investment. Nevertheless, 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 run one in the state of Michigan. However, this might change, which's why it is very important to speak to a medical marihuana lawyer routinely, so that you are keeping up to date with modifications to the law. Marijuana law is an evolving and changing field, and as a result, there might come a time where the MMFLA or the MMMA is amended to permit a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole purpose is to provide safe medical marihuana to registered qualifying patients. You may only offer 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 modification in law will likely allow for recreational cannabis sales. If the ballot initiative passes, for the first two years after the State passes recreational cannabis facility policies and begins accepting licensing applications, only centers 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. Thus, getting 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 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 need to get an properly zoned building in a city or township that has "opted-in" to the MMFLA to permit such facilities to operate within their boundaries. Whether your own it or lease it does not matter, however you must have the building. After that, you will need to produce a business plan that contains all of the required components 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 comply with the State's policies now and in the future.
Conclusion
We hope this supplies you with some of the details you need before opening a Michigan provisioning center. Needless to say, the procedure is pricey, intricate and time consuming, however the benefit and ROI can be considerable. In reality, obtaining a skilled 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 details, or wish to come in and speak about requesting a provisioning center license, we would like to have you come in for a consultation.
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