Commercial Adult Use Cannabis Grow Licenses in Michigan

Adult use commercial grow licenses/recreational cannabis growing licenses are one of the most sought after licenses in Michigan.

Below, we outline everything you need to know about adult-use grow licenses, from license types to finding a facility. 

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Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Types of Commercial Grow Licenses in Michigan

There are three different classes of adult-use cannabis growing licenses in the state of Michigan.

1. Class A: Up to 100 plants with a license fee of $1,200
2. Class B: Up to 500 plants with a license fee of $6,000
3. Class C: Up to 2,000 plants at a license fee of $24,000

Typically, Class C grow licenses are pursued by larger commercial developments.

Definition of Plant

These cannabis growing licenses allow for the allotted amount at any one time. 

For instance, for a Class A license, you can only possess 100 (or less) plants at once. 

For this purpose, it’s extremely important to understand the MRA’s definition of a plant for counting purposes. 

The CRA considers a marijuana plant one that’s larger than eight inches (length or width), and/or has a root structure. 

To keep compliance in check, the Cannabis Regulatory Agency (CRA) requires adult-use growers to tag every plant. 

The CRA is very strict about compliance and the failure to tag all plants, and plant material when harvested will result in up to a $10,000 fine. 

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Michigan Commercial Grow License Process

After the $3,000 application fee, there are two steps of the state’s cannabis business licensing application process:

• Step One – Applicant Qualification (financial and criminal background checks)

The Cannabis Regulatory Agency’s first order of business is to ensure that all facility owners will pass a background check. Their spouses must go through the background check process as well. In general, they’re looking for income tax compliance prohibited criminal offenses and history of non-compliance with professional regulatory agencies. Criminal convictions they’re looking for are ones that demonstrate a history or pattern of theft and dishonesty. Felonies a felony alone will not disqualify somebody there has to be a pattern that’s demonstrated. Also major controlled substance offenses will be considered particularly ones that involve the distribution of drugs to a minor or near a school. All owners, and their spouses, that own more than 10% equity in the facility will be subjected to a background check. Additionally, all managers of the facility, and their spouses, are required to perform step one of the application process.

This process takes approximately 60-90 days.

• Step Two – Facility Qualification

The second step of the application the state application process concerns the actual cannabis facility. The second step application is filed after the receipt of the certificate of occupancy from the municipality. The CRA will require several operational narratives along with a facility inspection to ensure compliance. One of the largest areas of compliance includes ensuring the floor plan is accurate and the security plan features required by the rules have been met. Also important are the presence of the required standard operating procedures and employee manual.

Upon completion and submission of this application passing they required on site facility inspections the invoice for the license fee will be submitted. Once the license fee is paid the facility will obtain its paper license and may operate. (They do not have to wait until the license is received, but once received it does have to be posted).

As of March of 2024, the average application processing time is 63 days.

There is also a separate municipal license application process that requires pre-qualification and final licensure as well.

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Additionally, step 2 narratives for adult-use grow facilities consists of:

• Location plans.
• Inventory and record-keeping plans.
• Marketing plans.
• Staffing plans.
• Technology plans. 

During the BFS inspection, they’ll review site plans and how your business plans to prevent or reduce fire hazards.

Regulatory Compliance for Fire Safety

For cultivation facilities larger than 12,000 sq. feet, there’s a requirement of sprinklers.

This is just one of the specific requirements for preventing large-scale fires.

Grow facilities are especially susceptible to fires, with the amount of equipment and chemicals required. 

Fire safety is yet another highly regulated area for marijuana growers in the state of Michigan to abide by.

Your facilities’ builder needs to be very familiar with all of these requirements.

This is not just to obtain licensure, but also to avoid unnecessary injury and damage in case a fire does happen. 

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

I’m a Caregiver. How Can I Become An Adult-Use Grower?

Lots of caregivers have expressed interest in obtaining adult-use cannabis growing licenses, particularly Class A and B license(s). 

The Class A license type was likely created to incentivize caregivers to increase their plant count. 

However, caregivers aren’t required to have BFS inspections. 

Another factor that differentiates caregivers from the commercial facilities is the product testing. 

Adult-use grow license holders are required to have their product tested at a safety compliance facility before selling or transferring it.

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Adult-Use Cannabis Growing License Operations

How do adult-use grow businesses operate?

As stated above, a licensee is allowed to have their plant count (or less) at any given time.

Additionally, every time a plant moves from room-to-room, it must be tracked and reported to the CRA.

For example, if a plant moves from the “flower” room to the drying  room, you must report that movement to the CRA. 

The protocol for documenting this movement is outlined in your technology plan with the use of METRC – the current software used by the CRA

Additionally, once there’s a harvest, the weight of that harvest must be reported to the CRA as well.

You’ll also weigh the product after the drying and curing process is complete.

You must report product movement, weight, etc. to the CRA through the METRC system.

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

How to Find a Commercial Grow Property

Finding a cultivation facility depends on what municipalities allow grow licenses.

There’s allowances for both indoor and outdoor facilities through a greenhouse, according to the specific municipality’s zoning ordinance.

Most grow facilities are in industrial zones where there’s going to be large facilities, expansive warehouse space.

Typically, they’re away from residential areas.

Additionally, there are agricultural zones in certain municipalities, where you’ll find large cultivation properties, large outdoor grows or greenhouse grows. 

There are exceptions to finding a location for your cannabis business.

Usually, you need to be 1,000 or 500 feet away from schools, parks, residential zones, libraries, churches, etc.

However, these exceptions are on a case-by-case basis. The municipality gets to decide the buffer zones. 

This is another thing that cannabis attorneys can determine for you; where exactly you can operate as a grow facility, and what’s the best location for you and your business.

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Vertical Integration for Michigan Commercial Grow Licensees

There are certain instances where you’ll see a vertically integrated cannabis business, such as a grower, a processor and a retailer, all operating as one business.

However, each type of license has to operate separate areas in their facility.

These areas must be distinguishable from one another, and they all must hold separate licenses. 

Therefore, you’ll have to file a step 2 for that cultivation facility, a separate step 2 for that processor, as well as a separate step 2 for the retailer. 

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Co-Location for Adult-Use Growers

As stated above, all of this is dependent on what your selected municipality will allow per their marijuana ordinances. 

Co-location is when all your cannabis businesses operate in one facility.

While this is extremely common, the municipality must allow it in their zoning ordinance.

Even when permitted, these licenses must operate separately.

Therefore, they each must have their own inventory procedure, such as having separate storage for the plant material.

This is so the CRA and METRC can accurately keep track of all plants in all stages at any given moment. 

If your businesses operate in the same building, you don’t need to have a secure transporter.

However, if they’re in different buildings or different parcels of property, then a secure transporter has to transfer the product from one facility to another. 

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

License Stacking

Another thing to keep in mind is whether the municipality allows stacking of cannabis growing licenses.

License stacking refers to possessing multiple class C grow licenses. Only Class C licenses may be stacked. 

As stated previously, an adult-use class C license allows for 2,000 plants. 

Per state law, you’re able to stack class C licenses to a maximum of five (5) class C licenses.

Therefore, you can have a maximum of 10,000 adult-use plants at any given time.

Additionally, if you combine this with medical class C grow licenses, you can potentially have a larger grow operation. 

You can also apply for an excess grower license, which allows for an additional 2,000 plants for each additional adult use class C license. 

All of this comprises license stacking.

Therefore, if you compliantly adhere to license stacking, you can have 10,000+ adult-use plants at any given moment.

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Can a Commercial Grower Transfer or Sell Their Product?

A commercial grower can transfer and sell their harvested product to other growers, processors and retailers. 

However, there are also a lot of growers that transfer their immature and mature plants to other growers.

A licensed secure transporter must transfer these plants, including clones. 

Some people believe that if they’re a clone, that they don’t have to have a license to sell it. 

However, this is untrue.

Selling or transferring any marijuana product, even if it’s a clone, requires a license. 

Additionally, growers can transfer/sell seeds and other genetic material to other growers. 

However, this type of product doesn’t require a secure transporter. 

It’s important to distinguish that adult-use growers can only sell to other adult-use marijuana facilities. This means that an adult-use grower can’t sell their product to a medical marijuana facility.

Additionally, growers can’t receive marijuana from a retailer. 

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

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.

Interested in Obtaining a Recreational Grow License?

There’s already ton of consumer demand for adult-use marijuana. In March of 2024 there was over $2,000.000.00 in AU sales to consumers. 

This is obvious as displayed in the continuous rise of Michigan’s retail sales since 2018. 

If anybody is looking for information on licensing, compliance or operations, as it relates to adult-use growers, please contact our team of experienced and proven cannabis attorneys today to schedule a consultation.

Do you want to apply for a Michigan commercial grow license? Need help finding a facility? Request a consultation.