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A Brief look into the Legal Landscaping for Recreational Adult-Use licensing procedure.

I will introduce you briefly to some of the laws and compliance that one must follow to obtain a Recreation Adult-use license in the State of Michigan. When I was doing my research through LARA, I realized there was an enormous amount of information I could breakdown for you. However that would be rather time consuming for the both of us. I hand picked a few that perhaps give an explanation as to why the opening of Recreational Adult-use has been so staggered throughout the State.

First lets put together a timeline of dates to remember.

October 03, 2019 Marijuana Regulatory Agency (M.R.A.) releases the step by step instructions for the two step application process for Adult-use Marijuana License.

November 01, 2019 the M.R.A will start accepting applications, applications are available online or paper application, online applications will automatically be moved quickly into the processing system. Two step process 1st step is pre-qualification, 2nd step is Establishment Licensing.

November 13, 2019 M.R.A. announces that the date you can begin Adult-use (if approved) is December 01, 2019.

December 01, 2019 Adult- use begins in one city of the State of Michigan. Ann Arbor which is fitting as they are the fore-fathering city for decriminalization of Marijuana, Ann Arbor has been putting on the Hash Bash since 1972.

Taking a look into the two step process of the application.

Step one Pre qualification

Main applicant and all supplemental applicants must submit step one applications for pre qualification for review by M.R.A. during this step background checks are completed on the main and all supplemental applicants. $6000 non refundable application fee for main applicant the entity or the individual seeking to hold the state license. The main applicant is required to submit the step one pre qualification application.

Supplemental applicants can be entities or individuals. The definition of who is considered supplemental applicants varies depending on business structure. Every supplemental applicant is required to submit a step one pre qualification application, but only the main applicant needs to submit an application fee.

It is important that the main applicant does not submit payment until all supplemental applications have been submitted. If payment is received before all supplemental applications are submitted a notice of deficiency will be sent stating that the main applicant has 5 days to submit all supplemental applications or the application is denied. The M.R.A will begin to process pre qualification applications once the $6000 pre qualifications application payment is received.

Step two Establishment Licensing

After the main applicant and all the supplemental applicants have successfully achieved step one Pre qualifications the main applicant can submit step two licensing application for the license type it seeks to hold. During step two the Establishment Licensing the M.R.A. will vet the proposed marijuana establishment including but not limited to: Business Specifications,Proof of Financial Responsibility,Municipality Information. General Employee Information. The physical marijuana establishment must pass an M.R.A. inspection within 60 days of submission of a complete application.

Applicants who are seeking licensure as a grower, processor, or a micro-business must pass a Bureau of Fire Service Plan Review, additionally all M.R.T.M.A Marijuana applicants except Marijuana Event and Marijuana Organizer must pass a B.F.S. inspection within 60 days of submission of a complete application. Due to the level of detail involved in step one and step two Adult-use license application process as well as the time sensitive nature of the process. The M.R.A.strongly recommends achieving step one before submitting a step two application.

Final Approval

An applicant cannot be issued a State License until all M.R.T.M.A and administrative rules are met. After Establishment licensing step two is completed an applicant will be required to pay an initial licensure fee for each license. Once the initial license fee is received the license will be issued.

Now we got the application process out of the way. Let's cover some rules and regulations, obviously there are more rules and regulations than I will be able to condense into a blog format. However I would like to give a brief tour of the legal landscaping of Adult-use Marijuana in the State of Michigan. I will start with some of the restrictions. Limits by purchase, daily for adult-use sale or transfer to qualifying adult may not exceed 2.5 ounces daily and no more than 10 ounces in a month.

A Marijuana retailer is prohibited from making a sale or transferring Marijuana to an adult under the age of 21 years old. The retailer must record the sale or transfer to a qualifying adult in the statewide monitoring system.

Taxes on Adult-use the M.R.T.M.A imposes an excise tax on marijuana retailers an marijuana micro-businesses licensed under the act at the rate of 10% of the sales price of Adult-use marijuana sold or transferred to anyone other than a marijuana establishment. The state specifies that the 10% excise tax is imposed in addition to all other taxes. 6% sales tax and the 10% excise tax make a grand total of 16% taxes on all marijuana products sold or transferred to Adult-use.

Let's talk about transferring Marijuana between the equivalent license of Medical and Adult-use. Provisioning centers may transfer up to 50% of each product type from medical that has been in inventory for a minimum of 30 days to their Adult-use Marijuana retail. All products must have passed test results entered in the statewide tracking system.

Products transferred from a Provisioning Center to a Marijuana retail shall not exceed the maximum THC concentrations allowed under M.R.T.M.A

What are the maximum THC concentrates allowed?

Gummies, baked goods, ect per serving no more than 10 mg, per package No more than 100 mg.

Topical products including lubricants, spa products, lotions, balms and rubs N/A

Products not listed are 10 mg per serving no more than 100 mg per package.

There are Health and Safety Guidelines as well when handling Marijuana products.

Handling Marijuana is subject to the standards in current Good Manufacturing Practice in manufacturing , packing or holding human food. Wash hands before handling Marijuana products. Contact surfaces must be sanitized adequately, treat contact surface by a process that is effective in destroying microorganisms and in substantially reducing numbers of undesirable microorganisms, but without adversely affecting the product or its safety for the consumer. Always wash hands with soap and water whenever necessary before work, after using the restroom, after touching eyes, nose or mouth. Ensure that employees cover their mouth when they cough or sneeze and wash hands afterwards. Minimize disease transmission by not allowing employees with any illness, infection, open lesion or other microbial contamination to come in contact with Marijuana products.

Obviously I only covered a few rules and regulations in the industry of strict and unambiguous compliance.If you are still reading this informative blog! I would like to let you all know we have completed our application process and have successfully passed our inspection for Adult-use please stay tuned as we receive all of our paperwork back and announce the date we can begin our Adult-use sales!

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