How to Open a Michigan Cannabis Delivery Service

Many of our clients ask us, “how can I open a cannabis delivery service/get a cannabis delivery license?”

Luckily, it’s not as in-depth as the initial cannabis licensing process.

However, it still requires strict compliance (and attorney guidance) to apply for and manage properly.

Below, we outline everything you and your business need to know before starting cannabis home delivery services.

Are you a cannabis retailer interested in offering home delivery services? Not sure how to start? Request a consultation.

Who Can Start a Cannabis Delivery Service?

Currently, cannabis delivery is an “add-on” license for licensed retailers; it’s not a stand-alone license.

Therefore, only licensed retailers (both medical and adult-use) can start cannabis delivery services.

However, they can only do so after approval by the Marijuana Regulatory Agency (MRA).

How Can I Get a Home Delivery License?

Before getting licensed for home delivery, your entity must draft policies and procedures.

The MRA must formally approve these plans prior to initiating home delivery services.

Watch the full episode on YouTube. Listen to full episode on Spotify.

Are you a cannabis retailer interested in offering home delivery services? Not sure how to start? Request a consultation.

Rules for Cannabis Delivery

Once your business is approved for delivery services, there are several rules you must follow.

To start, customer age verification is one of the most critical factors for home delivery compliance.

You must submit age verification policies (and receive approval) to the MRA prior to starting home delivery services.

Additionally, under state law, you must deliver the order to a residence.

Therefore, it can’t be anywhere else, such as a hotel, park, or business.

The driver must have a mode of communication, such as a cell phone, so that they can contact the customer and the business.

There’s another mandate that requires the geographic location of the vehicle.

This requires you to install a Global Positioning System (GPS) device in the vehicle. 

This way, the business can track and monitor the delivery for compliance.

Additionally, this is to ensure the safety of the driver, due to carrying regulated cannabis in their vehicle.

Are you a cannabis retailer interested in offering home delivery services? Not sure how to start? Request a consultation.

Can I Contract Home Delivery Services Out to a Third Party?

One of the main questions we receive from our clients is if they can contract out their home delivery service to an independent contractor.

The answer is no; your retailer’s employees must deliver the product, no one else. 

The amount limit is no more than 60 grams, while the value threshold caps at $5,000. 

Watch the full episode on YouTube. Listen to full episode on Spotify.

Are you a cannabis retailer interested in home delivery services? Not sure how to start? Request a consultation.

How to Keep Accurate Delivery Logs

According to state law, cannabis retailers that offer home delivery services must keep accurate and complete delivery logs.

In other words, every specific stop during the course of each delivery must exist in the log.

Then, you need to audit or disclose these logs to the MRA, , which should include:

• Order details (such as date and time, product ordered, etc).
• Signature acknowledgments
• Age verification/identification
• METRC tag of product

Additionally, you need to submit motor vehicle logs.

These belong to the driver of the establishment, or the vehicle your business specifically uses for home delivery. 

However, you must keep information regarding that vehicle in your business records for compliance purposes, such as:

• Vehicle make
• Vehicle model
• VIN
• License plate number
• Vehicle registration
• Proof of vehicle insurance

Before opening cannabis delivery services, you need to submit thorough standard operating procedures (SOPs) to the MRA.

This typically includes information regarding delivery routes, transactions, delivery driver policies and procedures, and much more. 

Watch the full episode on YouTube. Listen to full episode on Spotify.

Are you a cannabis retailer interested in home delivery services? Not sure how to start? Request a consultation.

Order Transactions

As a cannabis retailer approved for home delivery, you can take online orders as well as phone orders. 

The MRA allows these methods of order submission, using cash payment. 

That’s why the vehicle must have secure compartments, for both the product and amount of cash a driver has on them at any given time.

Need Help Opening a Cannabis Delivery Service?

The MRA will ask and review delivery logs during any inspection.

That’s why it’s critically important to comply with these fluid and complex laws.

As with any area of cannabis business, maintaining meticulous records is critical.

Failure to do so not only jeopardizes your business’ ability to continue delivery services, but your actual license itself. 

That’s why having an experienced and cannabis attorney is necessary for the present (and future) success of your business.

Are you a cannabis retailer interested in home delivery services? Not sure how to start? Request a consultation.