Thinking about beginning a Medical Marihuana Grow to ensure that you can provide marijuana to the medical marihuana market? Are you a Medical Marihuana Act licensed caregiver that intends to take your product commercial on a larger scale? Thanks to the Medical Marihuana Facilities Licensing Act, currently you can do so lawfully, as long as you can successfully acquire a license from the State to do so. This could be an amazing chance with lots of brand-new owners seeing incredible levels of earnings as well as success in the market. Nevertheless, if you make this choice, you do need to see to it that you obtain a Michigan commercial grow license. Failing to do so will certainly cause your venture being, more than likely, illegal as well as cause court action that will maim your service before it starts.
However, the Michigan commercial grow license application is a long, complicated and expensive process. Ask a medical marijuana lawyer, and they will certainly inform you that you need to see to it that you are prepared. Let's check out the steps you will need to take, the team you need to develop and also the position that you could find yourself in.
Who Can Apply?
The very first inquiry to ask yourself is whether or not you are eligible to apply for a Medical Marihuana Facilities license. The good news is that any individual, an individual or a full business can apply for a license. Applications started in 2017, and there is presently no due date to complete the necessary forms. Obviously, there are particular people, that, since they can not satisfy the minimal economic requirements, or because they have a disqualifying criminal conviction in their background, are averted from applying. However, presuming you don't have a disqualifying criminal conviction, and also you, or your team of capitalists, fulfill the minimum economic demands, there are two primary actions to the MMFLA licensing application process. The first step will be finished whether you have a final location for your structure or not. Nonetheless, if you have actually already selected an area before submitting your State application, something that we extremely advise, you can complete both actions at the same time.
Pre-qualification is the initial step, and it starts with an extensive background check. There are 2 sections-- 401 as well as 404 of the Medical Marihuana Facilities Licensing Act (M.C.L. 333.27401 et seq.) to refer to when determining who you need to legally disclose as well as whether they have a relevant business interest in your operation. This consists of individuals such as the spouse of the individual and also all corporate officers. This is one of the reasons that it is worth seeking advice from an MMMA attorney as it can be fairly difficult to get all the details correct. The State will certainly want to do a deep dive into the backgrounds of not only all of the "interested parties," or members/owners of your marijuana organisation, but the State will additionally consider the backgrounds of all of those person's spouses as well. Should any individual have a disqualifying criminal conviction in their past, or not be of "good moral character," the State can reject the entire application. Simply put, if there is one bad apple in the bunch, the State tosses out the whole application. Consequently, it is very important to learn about the histories of the persons you have in your investment group, prior to applying for your Medical Marihuana Facilities License. There are a lot of things that a seasoned attorney can do to help you prepare for your application, and also to guarantee that any type of potential issues with your application are recognized, revealed or gotten ready for before the application is submitted. However, this isn't the only reason an attorney will often be a crucial and necessary hire.
Consider The Expense
Before your information can be evaluated by an analyst from the Bureau of Licensing and Regulatory Affairs (LARA), Bureau of Medical Marihuana Regulation (BMMR), you need to pay a $6000 charge for your application. BMMR will certainly reject to move forward with your application until this has been paid in full. As well as being costly, this fee is non-refundable so you want to see to it that there are no problems with your application that could cause it being denied. An MMFLA lawyer can guarantee that this is the case and help you navigate any complicated issues. Further, before you can acquire State approval for operation, you will also need to get a municipal or city authorization. Each city or township will additionally need you to finish an application as well as you will certainly have to pay an application fee there also. The application price can range depending on what the city wishes to charge, nonetheless, they can not charge more than $5,000.00. Most cities as well as townships are charging the maximum amount. In total, the application fees alone are likely to be in excess of $10,000.00. That doesn't consist of the costs of ancillary services, such as accountants, designers, marketing professionals as well as various other solutions necessary for your application to be full.
Once you have collected as well as paid the application fees, all candidates and supplemental candidates will have their finger prints taken. You may think that if you currently have had your fingerprints taken by local law enforcement this action can be skipped. Nevertheless, BMMR will certainly decline fingerprints unless they are requested and also collected by them through the licensing procedure. You will need to go to an accepted place where your fingerprints can be collected digitally as well as sent for evaluation by the State.
This is the 2nd step and remember, if you have already chosen a place to grow marijuana, you can complete this step with the first. You need to be prepared to meet all the MMFLA rules. During this step, you will certainly need to have a business plan. Nevertheless, that plan has to include particular things. You must have all of the components required by the State: facility plan, security plan, marketing plan, staffing plan, technology plan, waste disposal plan (if applicable), as well as a record keeping plan. There are specific minimum requirements stated in the Administrative Rules that regulate MMFLA facilities, with which you must show your business is in compliance.
Your facility should be located in a city or township that permits MMFLA businesses to operate. The MMFLA has strict regulations for people and also businesses planning to grow in a municipality. If you want to grow in a municipality, it has to have an ordinance that authorizes marihuana facility operations. Colloquially, the municipality needs to have "opted-in" to the Medical Marihuana Facilities Licensing Act (list of Michigan municipalities who have opted in to MMFLA), and it should have passed a regulatory ordinance that sets for the rules and guidelines for those facilities to operate within the city or township. The complete standards can be located in 205, yet if you do have any kind of questions you need to call your municipal authority. Or, conversely, get your lawyer to do this for you. As the application advances, BMMR will certainly get in touch with applicants, offering information on any other demands, consisting of a pre-licensure inspection of your location or facility.
Lastly, you might get authorization for your license. After you are informed of this, you will certainly need to pay for a regulatory assessment. Currently, the regulatory assessments for 2018 are as follows:
Safety Compliance Facility and Secured Transporters-- $0.00.
Class A Grow License-- $10,000.
Class B Grow License-- $48,000.00.
Class C Grow License-- $48,000.00.
Processor and Provisioning Center-- $48,000.00.
Likely, the State will establish an across the board equivalent regulatory assessment for all licenses in 2019. Regulatory assessments are subject to change annually, so it is difficult to anticipate exactly what it will be. Nonetheless, beginning in 2019, regardless of which license you get, expect the assessment to be imposed and for that assessment to be significant.
We hope this helps you decide whether you are ready to apply for a Michigan commercial grow license. Keep in mind, with a lawyer at hand, this process can be much simpler, and also you will certainly get experienced advice on exactly how to proceed correctly to make sure that your application is accepted. Even after you obtain authorization, legal advice is suggested to assure you stay on top of modifications to the legislation and policies, and so that you can remain in compliance and keep your organisation open.
Here at Fowler & Williams, PLC, we specialize in aiding clients acquire MMFLA licenses as well as ensuring continuing compliance.
Should you decide to retain counsel to help you on your licensing journey, give us a phone call.