You may be thinking about 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, 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 formerly referred to informally 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 venture, there are a couple of things you to know before you move forward.
Can You Transport Marijuana In A Private Vehicle?
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 penalties. 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 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 might likewise not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can carry usable marihuana for as much as five patients (and themselves also 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, 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 transportation of the marihuana will not occur on a public road, it can be moved as set forth by lara, BMMR under the Administrative guidelines.
Just How Much Cannabis 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 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 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 allows making use of twenty-four (24) software programs that are METRC compliant. Every client who enters a provisioning center, you will have to use a point of sale system that has software that is compliant. Every consumer 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 supplied their maximum daily allotment 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 supplied by the state to operate as a Michigan provisioning center. If you are growing cannabis, you will likewise require to make certain that you obtain a Michigan commercial grow license application. You may want to talk to an MMFLA attorney, such as Fowler & Williams, PLC, about this to guarantee 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 complex and needs a considerable quantity of time and money, the profitability of these provisioning centers far outweighs the expense of getting one. If you can get approved for a license and get through the application process to obtain a provisioning center license, you should do so before you begin 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 set up 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 get numerous provisioning center licenses so that you can run multiple provisioning centers in various 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 multiple provisioning centers, you will have to send several State applications. If you want to acquire 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 different applications for each license type, and must satisfy the minimum financial and background requirements independently 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 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 upon which kind of license you apply for. Usually, nevertheless, they charge the maximum allowed, which is $5,000.00 per license application. Even more, after you get a State license, there are regulatory assessments that will need to be paid yearly, both after issuance and each year after when the license is renewed.
In 2018, the assessments vary.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 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 said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the type of license provided. In the meantime, however, the assessments will remain as noted above. You will also find 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 needed parts, is up to par with the State's application requests. Those expenses can vary considerably, and are tough to predict.
Needless to say, the application and licensing process 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 could be considerable.
Should You Have A Legal representative?
While not required, you should certainly make certain that you are acquiring guidance from an MMFLA attorney before you think about opening a Michigan provisioning center. It's important that you get the best possible legal recommendations 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 guarantee that you have all the tools and guidance that you need to give your application the very best opportunity at success. Failure to make sure that your application is complete, and that it provides support for your ability to presently comply and guarantee future compliance with the Administrative rules, your application is a lot more likely to be rejected or denied, 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 costs for this kind of company 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 be sufficient, 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, expenses, and expert services that you need to get to guarantee that your application is accurate and total, and to guarantee that you are currently in compliance with all laws and regulations, along with making sure future compliance. This includes everything from licensing to a complete group of workers and much more. It's definitely not cheap, and you need to be prepared for a heavy investment. Nevertheless, as noted above, the market 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 might change, which's why it is essential to speak with a medical marihuana attorney 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 allow for 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 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 items 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 obtaining a license, unless you were running 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 enable recreational marijuana sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility regulations and begins accepting licensing applications, only centers licensed by the MMFLA to offer, 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 opportunity to get in the recreational market, where others will not.
What Are The Requirements?
In order to obtain a provisioning center license, you need to ensure 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 need to get an appropriately zoned structure in a city or municipality that has "opted-in" to the MMFLA to permit such facilities to run within their borders. Whether your own it or lease it does not matter, however you must 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 guidelines now and in the future.
Conclusion
We hope this offers you with some of the info you need before opening a Michigan provisioning center. Needless to say, the process is costly, complex and time consuming, but the benefit and ROI can be substantial. In reality, acquiring a proficient MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take most 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 love to have you come in for a consultation.
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