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Michigan Marijuana Growing Laws Under Proposal 1

Proposal 1 is the legal framework that establishes the regulations for licensing and regulating marijuana businesses in Michigan; including cultivators, processors and dispensaries. The Michigan Legislature hopes that Proposal 1 “promotes and encourages participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition.” (https://www.michigan.gov/lara/0,4601,7-154-89334_72600_73836-365424–,00.html)

Within a residence, adults will be permitted to grow up to twelve marijuana plants and/or possess up to ten ounces of marijuana (provided that any amount greater than 2.5 ounces is stored under lock and key).  Violations of the law would result in civil infractions or criminal charges, depending on the severity of the offense. (See MMFLA).

Microgrower and Microbusinesses

The new regulatory law creates three classes of cultivator licenses: the Class A “microgrower” license will allow for the cultivation of up to 100 marijuana plants; the Class B license will allow for the cultivation of up to 500 plants; and the Class C license will allow for the cultivation of up to 2,000 plants.  While holding more than one license at a time is permitted under certain conditions, no one will be allowed to hold more than five grower licenses of any type at the same time through 2023. After that point, the cap is expected to be removed.

Microbusinesses–similar to microbreweries– are licensed to cultivate up to 150 marijuana plants for processing, packaging, and retail sale directly to consumers. Because the regulation encourages market participation from small businesses, it helps create economic opportunities for small local businesses and those disproportionately impacted by the marijuana prohibition.

Proposal 1 also gives municipalities the power to regulate, ban, or limit the number of marijuana businesses within their local community.

The plan would also change some marijuana-related crimes to civil infractions. However, the law still makes it illegal for anyone under the age of 21 to buy or use cannabis or marijuana products. As a result, regulations have been established to mandate that packaging notifies consumers when a product contains marijuana–whether that product is marijuana plant or a cannabis-infused product. Under Proposal 1, regulations on packing and marketing involve the labeling and packaging of marijuana and marijuana products, and the advertising and marketing of marijuana, marijuana products, and marijuana businesses. (https://www.michigan.gov/documents/lara/LARA_Tips_7-6-2018_627080_7.pdf) Additionally, the initiative requires all marijuana and marijuana products to be tested for safety and includes strict tracking requirements to ensure that marijuana is not diverted into the unregulated market. (https://www.michigan.gov/documents/lara/LARA_Tips_7-6-2018_627080_7.pdf)

Prior to submitting applications to the department of Licensing and Regulatory Affairs it is important to consult with an attorney. When considering whether to open a marijuana related business in Michigan it is important to consult with an attorney to ensure compliance with the MMMA and MRTMA. Great Lakes Bay Legal Consulting, Attorney Nathan J. Collison can assist individuals and business with licensing applications and CannaBusiness planing. Schedule a Consultation Today.

Attorney Nathan J. Collison is the 4th generation of his family to provide industry leading legal services in the Great Lakes Bay region, and Great Lakes Bay Legal Consulting continues that tradition. We build relationships based on your individual needs and goals. Our focus is on excellence, integrity, and you.