You may 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 acquire municipal approval and a State issued operations license. "Provisioning Center" is the legally allowable 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 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 organisation where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to acquire medical marihuana for medical use. While a provisioning center can be a successful endeavor, there are a few things you to understand before you move forward.
Can You Transport Cannabis In A Private Vehicle?
Currently, under Michigan law, the general rule is that possession and transport of marihuana in a car is prohibited 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 have to do so in strict compliance with the MMMA. Marijuana 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 can transport usable marihuana for up to 5 patients (and themselves also 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, 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 occur on a public street, it can be moved as stated by lara, BMMR under the Administrative rules.
How Much Cannabis Can You Offer?
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 also offer 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 allows the use of twenty-four (24) software programs that are METRC compliant. Every customer who goes into a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every client who sets foot in a provisioning center must have their card run through the Statewide Monitoring Database to make sure that they have not already been provided their maximum daily quantity of 2.5 ounces from another licensed provisioning center. A provisioning center should 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 operate as a Michigan provisioning center. If you are growing marijuana, you will likewise require to make sure that you apply for a Michigan commercial grow license application. You might wish to speak to 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 acquiring a license is complicated and requires a significant amount of time and money, the success of these provisioning centers far exceeds the cost of acquiring one. If you can get approved for a license and make it through the application process to obtain a provisioning center license, you should do so before you begin operating.
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 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 several provisioning center licenses so that you can run multiple provisioning centers in various cities. The licenses do not attach to the individual or the business that is applying, permitting you to use it anywhere you want. Rather, the licenses attach to the property you provide on your application for the business. Therefore, if you wish to open multiple provisioning centers, you will have to send multiple State applications. If you prefer to get various types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, however you need to submit separate applications for each license type, and need to fulfill the minimum monetary 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 costs, which can be up to $5,000.00 per application. Each municipality is different, and they can charge different fees, and they can vary the charges depending upon which kind of license you apply for. Generally, nevertheless, they charge the maximum permitted, which is $5,000.00 per license application. Even more, after you get a State license, there are regulatory assessments that will need to be paid every year, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, regardless of the type of license provided. In the meantime, nevertheless, the assessments will remain as noted above. You will likewise find that there are other professional costs 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 considerably, and are hard to anticipate.
Needless to say, the application and licensing process is an pricey venture, 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 return on investment might be considerable.
Should You Have A Legal representative?
While not mandatory, you should certainly make certain that you are obtaining guidance from an MMFLA legal representative before you consider opening a Michigan provisioning center. It's important that you get the best possible legal suggestions and that you are following all the regulations and requirements. Only an lawyer experienced in handling 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 best opportunity at success. Failure to make certain that your application is complete, and that it provides support for your ability to currently comply and guarantee future compliance with the Administrative rules, your application is much more likely to be declined 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 overall start-up costs for this type of organisation 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 begin 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, costs, and professional services that you need to obtain to make sure that your application is accurate and complete, and to make sure that you are presently in compliance with all laws and guidelines, along with ensuring future compliance. This includes everything from licensing to a full team of staff members and much more. It's certainly 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 presently illegal to operate one in the state of Michigan. However, this could change, which's why it is very important to speak to a medical marihuana attorney regularly, so that you are keeping up to date with modifications to the law. Marijuana law is an evolving and altering field, and as a outcome, there might come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.
What Are You Lawfully Able To Do?
As a provisioning center, your sole function is to supply safe medical marihuana to registered qualifying patients. You might 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 been tested by a MMFLA licensed safety compliance facility with appropriate labeling and tracking. You may not sell these items prior to your acquiring 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 change 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 guidelines and starts accepting licensing applications, only centers licensed by the MMFLA to sell, grow, process, transport or test medical marihuana will be lawfully permitted to look for recreational marihuana licenses for the same activity. Hence, obtaining 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 get a provisioning center license, you need to guarantee that you do not have a disqualifying criminal conviction, and that you satisfy 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 township that has "opted-in" to the MMFLA to permit such facilities to run within their borders. Whether your own it or rent 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 necessary aspects 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 abide by the State's policies now and in the future.
Conclusion
We hope this offers you with some of the details you need before opening a Michigan provisioning center. Needless to say, the process is expensive, intricate and time consuming, however the reward and ROI can be substantial. In reality, acquiring a qualified MMFLA and MMMA attorney, 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 talk about making an application for a provisioning center license, we would enjoy to have you come in for a consultation.
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