What to Do if You Were Denied a Municipal Cannabis License

Alongside the state of Michigan licensing application, there’s also the municipal cannabis application. But you discover a cannabis license denial. Is this a problem?

This application is critical, as it’s the last licensing application needed to start your cannabis business. 

However, what do you do if you’re denied a license in the municipality you wish to operate in?

Below, we detail the cannabis municipal license application process, what to do if you’re denied, and more.

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.

What to Expect During the Municipal License Application Process

Every municipality in Michigan has varying rules.

Therefore, you need to know what you’re getting into before applying for a local cannabis license.

When you know what the municipality expects of their cannabis business applicants, you can then submit your best application. 

This ultimately determines whether or not your application is approved for a license. 

Each municipality varies in how they choose who receives a license; some have a lottery, some have scoring criteria, while others have a “first come, first serve” selection process.

Knowing the process inside-and-out is something an experienced and proven cannabis attorney is especially privy to.

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

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.

What Should I Do If I’m Denied a Municipal Cannabis License?

But, what happens if you receive a municipal cannabis license denial? 

At this point, you should look at your situation and decide what direction you want to go in. 

While you can try again in an entirely different municipality, this could be extremely costly.

This is because every city has their own licensing and application fees.

Before going down this route, you should know that a municipal cannabis license denial is a preliminary decision.

It doesn’t mean that you’ve “actually” been denied, with no chance of approval after that. 

For example; maybe there’s only four (4) adult-use grow licenses that’ll be granted, and you come in close at fifth place. 

If you appeal, you could gain additional points on your application and move up, therefore granting you a license.

However, you could also appeal, gain additional points and still remain below the threshold needed to obtain a license.

Regardless, the appeal process is also costly in both time and money.

However, if you’re serious about your cannabis business, an appeal is worth it. 

This is why you need knowledgeable and experienced counsel for the appeal process.

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.

How to Appeal the Municipal Cannabis License Denial

When you file your formal appeal, you could earn less points, more points, or the same.

This depends on a variety of factors.

Keep in mind even if you’re one of the winning applicants, you can still appeal.

If you decide to appeal, you should be cognizant of the timeline.

Usually, the municipality specifies the amount of time it takes to go through the process, 

However, we can tell you this little secret; since the process is extremely competitive, it always takes longer.

Michigan cannabis municipal applications that were submitted as far back as January 2020 are still going through their appeal process.

This means that many of them still aren’t able to open for business.

Therefore, you understand that it’s going to take a little longer to open your business if you decide to appeal.

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

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.

What to Expect During the Appeal Process

During your municipal cannabis license denial appeal process, it’s a good idea for you and your business members to attend local meetings and get to know people there. 

It’s always helpful to have somebody in-the-know for your municipality. 

The appeal process will take place through the municipality’s court system, and will follow a specific time frame within which you must appeal. 

The appeal process is very similar to a court proceeding, in both the procedures and cost.

This form of litigation is becoming more common for cannabis business applicants, since the industry is growing more competitive. 

In fact, many court cases concerning the cannabis industry are subject to becoming case law; and appeal litigation is no exception.

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.

Denied a Municipal License? You Still Have Options

There are a lot more players in the cannabis industry now than ever.

Additionally, with more licensing restrictions lifted, there are more out-of-state applicants that you’ll compete against for a Michigan cannabis municipal application as well. 

If you’re at the point where you want to apply, or you’re at the point where you’re deciding whether or not to appeal, consider us at the Cannabis Legal Group.

You need an expert who’s been through it and knows how to successfully undertake the appeal process. 

It’s a process where you don’t want to learn “the hard way” the first time and make your own mistakes.

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

Received a municipal cannabis license denial in Michigan? Thinking about appealing? Request a consultation.