With recreational marijuana legal in Michigan as of late 2018, confusion still exists as to where and how consumers can purchase cannabis on the open market. License applications for recreational cannabis facilities, such as farms and dispensaries, will be available by December 2019.
In the meantime, cannabis businesses can apply for a medical marijuana facility license through the Michigan Department of Licensing and Regulatory Affairs.
Understanding categorization
Michigan medical marijuana facilities are grouped into several categories:
- Grower Class A: Up to 500 cannabis plants
- Grower Class B: Up to 1,000 cannabis plants
- Grower Class C: Up to 1,500 cannabis plants
- Processor: Can purchase cannabis and use it to make and sell infused products
- Secured transporter: Can store and transport cannabis and business-related proceeds
- Provisioning center: Can sell cannabis products to medical patients (dispensary)
- Safety compliance facility: Can test cannabis products provided by a licensed provisioning center
Each facility type must comply with specific licensing requirements.
Completing the online application
The state has developed a two-step process for new cannabis facilities. Step 1, prequalification, can begin while you are still seeking a location for your business. You can complete Step 2 once you have secured the location.
The application process is as follows.
- Complete the state’s Entity/Individual Prequalification Packet.
- Have other stakeholders mentioned in your EIPP submit a Supplemental Applicant Prequalification Packet.
- Include a passport-quality photo and a copy of your official government ID.
- Successfully pass the due diligence process, which includes review of financial and tax records and a complete criminal background check.
- Submit the one-time application fee of $6,000.
- Submit the regulatory assessment fee, an annual fee that varies based on the license type.
- Submit the License Qualification Application, Step 2, when you have found a location for your cannabis business.
Following these instructions closely will improve the chances of receiving a license. A business attorney with experience in the cannabis industry can help prepare your materials.
