MRA Releases Adult-Use Marijuana License Applications

Just today, the Marijuana Regulatory Agency (MRA) released detailed, step-by- step instructions for the adult-use marijuana license applications. These applications will start being accepted by the MRA on Nov. 1st. 

We have outlined what you need to know as a prospective adult-use marijuana licensee below:

What types of marijuana licenses are available?

As a refresher, here are the license types that do not require a medical marijuana state operating license:

• Class A Marijuana Grower
• Marijuana Microbusiness
• Designated Consumption Establishment
• Marijuana Safety Compliance Facility
• Marijuana Event Organizer
• Temporary Marijuana Event

However, the main applicant must possess a medical marijuana state operating license for the following license types:

• Class B Marijuana Grower
• Class C Marijuana Grower
• Excess Marijuana Grower
• Marijuana Processor
• Marijuana Retailer
• Marijuana Secure Transporter 

What is the application process? 

For adult-use marijuana license applications, the MRA will be enforcing a two-step application process. The two applications consist of:

1. Prequalification
2. Establishment Licensing

Step 1: Prequalification

During this step, background checks are completed on the main applicant and all supplemental applicants.

There is a $6,000 nonrefundable application fee for the main applicant, which is the entity or the individual seeking to hold the state license. The main applicant is required to submit a step one prequalification application.

Supplemental applicants can be entities or individuals. The definition of who is considered a supplemental applicant varies, depending on the business structure. Every supplemental applicant is required to submit a step one prequalification application, but only the main applicant needs to submit an application fee.

Step 2: Establishment Licensing

After the main applicant and all supplemental applicants have successfully achieved step one prequalification, the main applicant can submit step two licensing applications for the license type(s) it seeks to hold.

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
• General employee information

The physical marijuana establishment must pass an MRA inspection within 60 days of submission of a complete application.

When will I receive a final approval?

An applicant cannot be issued a state license until all requirements in the MRTMA and administrative rules are met. After establishment licensing (step 2) 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.

How can I be denied an adult-use marijuana license?

There are 17 potential reasons for license denial outlined in Rule 14 of the Adult-Use emergency rules, including the following:

• The applicant failed to correct a deficiency within five days of notification by the MRA in accordance with Rule 8 (application requirements; complete application)
• 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

MRA Contact Information

The MRA is available to assist and strongly encourages applicants to contact the MRA and ask questions prior to application submission via phone (517) 284-8599 or via email MRA-Adult-Use-Marijuana@Michigan.gov. 

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

It’s vital to have an experienced cannabis attorney assisting you with this process at this time. Contact our team today to schedule a consultation to get you started on the right foot in this exciting yet complex industry.