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Step One: Why Was My Cannabis Business Application Denied?

cannabis business application denied

Step one of your application has been submitted. After months of extensive document gathering and thorough preparation of your disclosures and attestations, your application is complete and ready for review. You anxiously anticipate approval of your application. Then, after wondering: “What’s taking so long?” “Why haven’t I heard back from the Bureau of Medical Marihuana Regulation?,” your cannabis business application gets denied.

Do you need help preparing and submitting your cannabis business application so it doesn’t get denied? Request a consultation now.

What Is The Application Process?

Initial Review

Bureau of Medical Marihuana Regulation (BMMR) conducts an initial review of the application, looking for completeness for the applicant, all supplemental applicants, and all supplemental entities – including officers, directors, managerial employees, persons with a direct/indirect ownership interest, spouses, and affiliated businesses.

Many applicants have dozens of supplemental applicants and each person is required to go through the complete background investigation.

Applicants often turn in over 1,000 pages of bank account statements and tax records.

The result is a very lengthy, complex review to properly conduct this initial document review.

Notice of Deficiencies and Deficiency Correction

When documents, disclosures or forms are missing, BMMR staff sends out deficiency notices as needed.

The applicant and BMMR staff communicate back and forth to help the applicant and the supplemental applicants reply with the information needed to correct the deficiency.

When a staff member from BMMR reaches out to applicants for additional information, or to advise of the next steps to take, it’s important that applicants respond quickly and accurately so their application isn’t unnecessarily delayed.

Criminal History Check and Financial Background Investigation

Once all deficiencies are resolved, BMMR staff requests the background investigation contractor and the Michigan State Police to complete their portion of the investigation.

BMMR Staff will also begin their in-depth investigation into the financial backgrounds.

The investigation looks at the following aspects for the applicant, all supplemental applicants, and all supplemental entities:

  • Criminal history
  • Ownership interests
  • Corporate documents
  • Business history
  • Property ownership
  • Capitalization (CPA attested)
  • Bank statements and tax records
  • Attestations
  • Regulatory compliance
  • Litigation history

Final Review and Summary

Once all deficiencies are corrected, BMMR staff compiles all of the information, conducts a final review of the entire application, and prepares a report summarizing the result of the background investigation.

This report, the application documents, and the investigative file are provided to the Medical Marihuana Licensing Board (MMLB) to review.

Once the MMLB approves an applicant for pre-qualification status, step one is complete.

What Can Applicants Do to Speed Up the Process?

While applications are handled in the order they were received, those applying for a state operating license can assist in moving their application through the process in an efficient manner by turning in applications that are as complete as possible and following up as quickly as possible on communications from the bureau regarding any deficiencies or questions.

For more information on how to submit a complete and thorough application to avoid delays, deficiencies or application denial please see The Top 5 Mistakes You Are Making when Completing Your Application

Do you need help preparing and submitting your cannabis business application so it doesn’t get denied? Request a consultation now.

Barton Morris
Barton Morris has been providing high-quality legal representation in the area of state and federal criminal defense for more than 20 years.
The Cannabis Legal Group has been providing our clients professional and quality legal assistance in all aspects of representation for years.

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