Today on Nov. 1st, 2019, the Marijuana Regulatory Agency (MRA) began accepting adult-use applications for marijuana licensing under the Michigan Regulation and Taxation of Marihuana Act (MRTMA). This was passed by the voters of the state of Michigan in November 2018.
Similar to the process for medical marijuana application approval, the MRA will be utilizing a two-step application process:
- Prequalification, and
- Establishment Licensing
Step One – Prequalification
During step one – prequalification, the main applicant and supplemental applicants must submit applications to be reviewed by the MRA. During this step, background checks are completed on all applicants.
Current medical marijuana licensees who apply for adult-use licenses will be expedited through the application process if there are no changes in ownership.
Step Two – Establishment Licensing
During step two – licensing, the MRA will vet the proposed marijuana establishment, including, but not limited to:
- Business specifications,
- Proof of financial responsibility,
- Municipality information, and
- General employee information.
The physical marijuana establishment must also pass an MRA inspection within 60 days of submission of a complete application.
What would cause my application to be denied?
An applicant could have their license denied due to the following reasons:
- The applicant failed to correct a deficiency within five days of notification by the MRA in accordance with Rule 8.
- The applicant failed to receive a passing prelicensure inspection within 60 days of a complete application being submitted to the agency.
- The applicant has submitted an application containing false information.
- The applicant or anyone who will have ownership in the marijuana establishment has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marijuana establishment is unlikely to be operated with honesty and integrity.
- The applicant or anyone who will have ownership in the marijuana establishment has a conviction involving distribution of a controlled substance to a minor.
More potential reasons for denial are outlined in Rule 14 of the Adult-Use Emergency Rules.
Do I need to have a medical marijuana state operating license to be eligible for adult-use licenses?
The main applicant must possess a medical marijuana state operating license to be eligible for the following license types:
- Class B Marijuana Grower
- Class C Marijuana Grower
- Excess Marijuana Grower
- Marijuana Processor
- Marijuana Retailer
- Marijuana Secure Transporter
However, the main applicant does not need to possess a medical marijuana state operating license to be eligible for the following license types:
- Class A Marijuana Grower
- Marijuana Microbusiness
- Designated Consumption Establishment
- Marijuana Safety Compliance Facility
- Marijuana Event Organizer
- Temporary Marijuana Event
How do I get final approval?
An applicant cannot be issued a state license until all requirements outlined in the MRTMA and administrative rules are met. After establishment licensing is completed, an applicant will be required to pay an initial licensure fee for each license. Once the initial licensure fee is received, the license(s) will be issued.
Prospective licensees can visit Michigan.gov/MRA and click on the Adult-Use Marijuana link to see all of the information available to them to assist in the preparation of their application.
Contact a cannabis lawyer today
It’s vital to have an experienced cannabis attorney assist you with this process. Doing this will ensure that you are starting on the right foot in this exciting yet complex industry. Contact our team of skilled cannabis lawyers today!