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One of the most important steps when considering getting involved in the marijuana industry in Michigan is deciding what type of CannaBusiness to open. The state is currently open to Medical Marijuana Facilities and on November 6, 2018, Michigan passed Proposal 1, a law that opened the state to recreational marijuana businesses.

Provisioning centers (dispensaries), Marijuana Cultivators; Marijuana Processors, Marijuana Testing Facilities, Marijuana Transporters

The Bureau of Medical Marihuana Regulation (BMMR) allows the following businesses to operate legally within the state: provisioning centers (dispensaries); marijuana cultivators; marijuana processors, marijuana testing facilities, and marijuana transporters. Proposal 1 establishes the legality of the same five types of businesses for recreational marijuana. Each type of business requires meeting and maintaining certain criteria, and failure to do so may even result in harsh consequences. (LARA)

The first category, the growing facility category, or the cultivator license category, establishes three different classifications based on volume. The Class A “microgrower” license will allow for the cultivation of up to 100 marijuana plants–and is designed to encourage small businesses to get involved in the marijuana industry. Next, 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. (LARA) Cultivators contract with dispensaries and manufacturers to provide marijuana for retail and use in edibles or other cannabis-infused products.

Next, business dubbed “processing centers” develop and manufacture products from the marijuana plant. Often times, that involves extracting cannabis oils for use in various products such as edibles. Processors contract with dispensaries to provide products to retail for customers, as well as contract with cultivators to grow the marijuana for use in manufacturing products. A provisioning center is often understood as a dispensary. Dispensaries contract with cultivators and manufactures of edible or infused products to grow and product marijuana products that will be sold in their business.

The fourth license option is for testing lab businesses. Testing labs largely involving testing cannabis products for any contaminants; essentially, testing labs are responsible for ensuring that products are up to industry health and safety regulations.

The final option is a secured transportation license. If any marijuana plant or cannabis product is moved from one CannaBusiness to another, a licensed third-party transportation company is required to facilitate the product’s transportation from location to location.

Some CannaBusiness Licenses are Allowed to Overlap or be Held Concurrently

Some CannaBusiness licenses are allowed to overlap or be held concurrently. The practice of operating multiple CannaBusinesses under multiple licenses in one location is called co-locating–multiple categories of CannaBusinesses are essentially co-existing in the same space. (https://www.legislature.mi.gov/(S(c3s5zd5pftjagsqxxpbqrutc))/mileg.aspx?page=getObject&objectName=mcl-Initiated-Law-1-of-2018)

For example, a grower license, a manufacturer license and a dispensary license may be allowed to co-locate; however, there are some requirements that must be followed in order to operate multiple licenses in one location. Many CannaBusiness owners see value in co-locating, although the initial costs may be a deterrent to some prospective entrepreneurs. The Michigan CannaBusiness is a new frontier that can be difficult to navigate–obtaining professional advice is highly recommended to ease the process and offer risk-management.

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.