You might be considering opening a marihuana provisioning center in Michigan. Now, after the passage of the Medical Marihuana Facilities Licensing Act or the MMFLA (M.C.L. 333.27401 et seq.) that is possible, but only if you get municipal approval and a State issued operations license. “Provisioning Center” is the legally allowable term under Michigan’s Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to informally as a “dispensary.” The existing regulations no longer permit such companies to be referred to legally as “dispensaries” and the State requires that they be referred to as marihuana provisioning centers. A provisioning center is generally a business where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to buy medical marihuana for medical usage. While a provisioning center can be a successful endeavor, there are a few things you to know before you move forward.

Can You Transport Cannabis In A Private Automobile?

Currently, under Michigan law, the basic rule is that possession and transport of marihuana in a vehicle is prohibited by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA may transport marihuana in a automobile. Even then, they must do so in strict compliance with the MMMA. Marijuana may only transferred in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or individuals in the traveler compartment. You might also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can carry usable marihuana for up to 5 patients (and themselves also if the caregiver is also a qualifying patient) or up to 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, nevertheless, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their facility that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located (attached to or on the same property) and transport of the marihuana will not happen on a public roadway, it can be moved as set forth by lara, BMMR under the Administrative guidelines.

How Much Cannabis Can You Supply?

A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana each day to a registered qualifying patient. A provisioning center that is licensed may likewise offer to a registered primary caregiver, however not more than 2.5 ounces per qualifying patient attached to the caregiver’s license. If you are licensed by the State to run a provisioning center, you will have to use a point of sale system that has software that is complaint with the Statewide Monitoring Database, which utilizes a software program called METRC. The State allows using twenty-four (24) software programs that are METRC compliant. Every client who enters a provisioning center, you will need to use a point of sale system that has software that is compliant. Every client who enters a provisioning center needs to have their card run through the Statewide Monitoring Database to ensure that they have not already been given their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center needs to also update the qualifying patient’s profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was bought by the patient at your provisioning center.

What License Do You Need?

You need a full license supplied by the state to run as a Michigan provisioning center. If you are growing cannabis, you will likewise require to ensure that you apply for a Michigan commercial grow license application. You might want to speak with an MMFLA lawyer, such as Fowler & Williams, PLC, about this to guarantee that you are fully licensed, or you will be shut down. Most importantly, DO NOT begin running your provisioning center without a State license being issued to you under the MMFLA. While the process of acquiring a license is complicated and needs a considerable amount of time and money, the success of these provisioning centers far surpasses the cost of obtaining one. If you can qualify for a license and make it through the application procedure to obtain a provisioning center license, you must do so before you start operating.

Can You Get More Than One License?

Yes, you can apply and receive more than one license. This is useful for any business or person who wishes to set up a provisioning center and a grow or processor at the same time. According to the law, there is absolutely nothing stopping you from doing this. Further, you can obtain multiple provisioning center licenses so that you can operate numerous provisioning centers in different cities. The licenses do not connect to the individual or the business that is using, allowing you to use it anywhere you desire. Rather, the licenses attach to the property you provide on your application for the business. Therefore, if you wish to open numerous provisioning centers, you will have to send multiple State applications. If you desire to obtain different types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one center, but you must send separate applications for each license type, and must satisfy the minimum financial and background requirements independently for each license type.

Just How Much Will A License Cost?

The cost for the license application to the State is $6,000.00 per application, regardless of license type applied for, including for a provisioning center. There are also municipal application fees, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can differ the costs depending on which type of license you apply for. Generally, however, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you receive a State license, there are regulatory assessments that have to be paid annually, both after issuance and each year after when the license is renewed.

In 2018, the assessments vary.

Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 0.00).

Class A Growers have a $10,000.00 regulatory assessment.

Class B and Class C Growers, Provisioning Centers and Processors have a $48,000.00 regulatory assessment.

The State has said that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, regardless of the kind of license issued. In the meantime, nevertheless, the assessments will stay as noted above. You will likewise find that there are other professional costs that you will need to pay in order to guarantee that your application is complete, and that your business plan, with all of its needed parts, is up to par with the State’s application requests. Those expenses can differ significantly, and are tough to anticipate.

Needless to say, the application and licensing procedure is an expensive undertaking, but in a market that is slated to do about $891,000,000.00 in annual sales this year, up from about $741,000,000.00 in 2017, the roi might be considerable.

Should You Have A Lawyer?

While not mandatory, you should certainly make sure that you are getting recommendations from an MMFLA legal representative before you consider opening a Michigan provisioning center. It’s important that you get the very best possible legal guidance and that you are following all the regulations and requirements. Only an attorney experienced in dealing with cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can make sure that you have all the tools and guidance that you need to give your application the best possibility at success. Failure to ensure that your application is complete, and that it provides support for your capability to presently comply and ensure future compliance with the Administrative rules, your application is much more likely to be turned down or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.

How Much Will This Business Cost?

You can expect the total start-up fees for this kind of service to be anywhere between 400 and 500K, at a minimum. While the State requires a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not suffice, realistically, to begin the business. You will need to potentially acquire land or property in an opted-in municipality. (Here is an up to date list of Michigan Municipalities currently opted-in to MMFLA) There will be obligatory fees, costs, and professional services that you need to get to guarantee that your application is precise and total, and to guarantee that you are presently in compliance with all laws and policies, along with guaranteeing future compliance. This includes everything from licensing to a complete team of workers and much more. It’s definitely not inexpensive, and you need to be prepared for a heavy financial investment. Nevertheless, as noted above, the market is big, and continuing to grow.

Can You Go Mobile?

No, you can not run a mobile provisioning center as it is currently illegal to operate one in the state of Michigan. Nevertheless, this might change, and that’s why it  is essential to speak to a medical marihuana attorney routinely, so that you are keeping up to date with changes to the law. Marijuana law is an evolving and altering field, and as a result, there may come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.

What Are You Lawfully Able To Do?

As a provisioning center, your sole function is to offer safe medical marihuana to registered qualifying patients. You may only offer marihuana or marihuana infused products that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the items have been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not offer these products prior to your acquiring a license, unless you were operating with city approval prior to February 15, 2018 and you have actually already sent an application to the State seeking a license.

Soon a change in law will likely permit recreational marijuana sales. If the ballot initiative passes, for the first two years after the State passes recreational cannabis facility guidelines and starts accepting licensing applications, only facilities licensed by the MMFLA to sell, grow, process, transport or test medical marihuana will be legally allowed to get recreational marihuana licenses for the same activity. Thus, getting a provisioning center license under the MMFLA, offers you the opportunity to go into the recreational market, where others will not.

What Are The Requirements?

In order to look for a provisioning center license, you need to make sure that you do not have a disqualifying criminal conviction, and that you fulfill the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will likewise have to obtain an appropriately zoned structure in a city or township that has “opted-in” to the MMFLA to permit such facilities to operate within their borders. Whether your own it or rent it does not matter, however you need to have the structure. After that, you will need to produce a business plan which contains all of the necessary elements from the state, consisting of a security plan, facility plan, marketing plan, staffing plan, technology plan, recordkeeping plan, waste disposal plan, and more, showing that you will comply with the State’s policies now and in the future.

Conclusion

We hope this offers you with some of the info you need before opening a Michigan provisioning center. Needless to say, the process is expensive, complex and time consuming, however the reward and ROI can be considerable. In reality, getting a qualified MMFLA and MMMA attorney, like Fowler & Williams, PLC, can help streamline and simplify the application procedure, and take the majority of the work off your plate.

If you want information, or wish to come in and talk about getting a provisioning center license, we would like to have you come in for a consultation.