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Every year thousands of Michigan residents attempt to break into the cannabis market in hopes it will be a lucrative venture. Despite the industry growing by the day, many people still find themselves losing profits rather than gaining it. So, what separates the successful commercial or medical cannabis businesses from the rest? Well, the answer is remaining compliant with the state and local laws in order to obtain – and maintain – your company’s cannabis license.

Michigan has extensive rules and regulations on both the state and municipal level. These licensing and regulatory rules are susceptible to change and are likely to mature over time. If you wish to enter the cannabis industry, you will have to follow these rules to remain compliant throughout the whole process. That includes pre-qualification for a license, qualification for the actual license itself, and establishing procedures to ensure your business is fully compliant.

Failure to remain complaint with Michigan’s marijuana industry rules can result in sanctions including but not limited to license denial, fines, revocation, suspension, nonrenewal of your license, administrative holds, and even orders to cease operations. With so much at stake, it’s incredibly important you do everything you can to remain complaint throughout the whole licensing process and thereafter. The best way to achieve this is to hire an experienced Michigan cannabis lawyer knowledgeable in the field. They can guide you through the licensing and business set up process to ensure you’re not met with any unwelcome surprises.

Cannabis Business Lawyer in Bloomfield Hills, Michigan

Being a relatively newly legalized industry, the marijuana market is constantly advancing and changing in the state of Michigan. No matter what stage of the process you’re in, it’s not just important but vital you ensure you’re complaint throughout every step of the way. Protect your business and future endeavors by hiring J. Dallo of Dallo Law.

Dallo and his legal team can utilize his extensive experience in the commercial and medical marijuana industry to ensure you’re fully compliant with every single legal requirement or administrative rule set by the MRA. Get started the right way with your marijuana business by calling J. Dallo at (248) 283-7000 to set up your first consultation. Dallo Law, P.C. is located in Bloomfield Hills but accepts clients throughout the state of Michigan including Royal Oak, Clarkston, Southfield, Birmingham, Sterling Heights, Roseville, Eastpointe, Troy and Pontiac.

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Prequalification Requirements for a Marijuana License in Michigan

When applying for a commercial or medical marijuana business license, you’ll be required to remain in compliance with certain rules right off the bat. The first major part of the application will include a full criminal and financial background check. This rule applies to officers, directors, managerial employees, or any other person who holds direct or indirect ownership interest in the business. You must disclose the identity of anyone showing ownership interest in your business and failure to do so could result in possible sanctions.

Listed below is financial information you’ll be required to provide for both you and possible supplemental applicants if you wish to prequalify for a license.

  • Financial statements, pecuniary interest, any deposit of value of the applicant or made directly/indirectly to the applicant as well as financial account information such as funds, savings, checking, or other financial institution accounts
  • Any property ownership information such as deeds, rent, real estate trusts, purchase agreements, or institutional investors
  • Tax information
  • Disclosure of any true parties of interest as required in section 404.0 of the act
  • Disclosure of stockholders or other persons who may have 1% or greater beneficial interest in the proposed marijuana business
  • Sources and total amount of capitalization needed to operate and maintain the proposed marijuana business
  • CPA-attested financial statements, which does include foreign attested CPA statements, or the equivalent of one if applicable on capitalization
  • Any information supporting your financial ability to purchase and maintain liability and casualty insurance to remain in compliance
  • Any other possible documents, attestations, disclosures that may be requested by the Marijuana Regulatory Agency

As the main applicant for the license, you’ll be required to provide a $6,000 nonrefundable application fee payable to the State of Michigan. Supplemental applicants do not have to pay any fees but may be required to fill out additional forms based on their involvement in the company.

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Compliance Requirements for Marijuana Business Licenses in MI

After you’ve completely finished Step 1 (prequalification for a marijuana industry license), you will then move onto to the Step 2 (stablishment license application). If you were able to pass prequalification, then that means the state believes you’re eligible for a license based on your financial and criminal history. The Step 2 process will involve the Marijuana Regulatory Agency (MRA) reviewing and vetting your proposed marijuana establishment.

You must include all the following information to complete step 2 of the application.

  • A description of the type of cannabis facility
  • The anticipated number of employees
  • Projected or actual gross receipts
  • A business plan for the establishment
  • Proposed marijuana facility location
  • Security plan as required under Michigan law
  • A copy of the proposed marijuana facility plan
  • Confirmation of compliance with the municipal ordinance. Confirmation of compliance must be on an attestation form prepared by the department that contains the following:
    • Written confirmation that the municipality adopted the ordinance under section 205 of the Michigan Regulation and Taxation of Marihuana Act
    • A description of any zoning regulations that may apply to the facility
    • The signature of the clerk of the municipality or their designee attesting that the information stated in the document is true
  • Disclosure of the true party of interest
  • Disclosure of the beneficial interest
  • Additional information and documents requested by the Marijuana Regulatory Agency

In addition to submitting the information above, you will also have to pass an inspection by the MRA within 60 days of your applications submission. It’s incredibly important you do not submit a Step 2 application unless you are ready to pass an inspection by the MRA within 60 days. Failure to pass the inspection within the 60-day mark could result in your application’s denial. That is why it’s incredibly important you’re familiar with the rules for marijuana facilities and have prepared your own before submitting an application.

Certain licensees such as Class A marijuana growers, Class B marijuana growers, Class C marijuana growers, excess marijuana growers, marijuana processors, designated consumption establishments, and marijuana microbusinesses must also pass a Bureau of Fire Services (BFS) plan review as well.

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Marijuana Facility Plan Requirements

Applicants must submit a marijuana facility plan if they wish to remain compliant during the license process. The marijuana facility plan must include the following for approval:

  • What type of marijuana facility, location, description of the municipality, and information for any of the following if applicable:
    • Proof of common ownership
    • Stacked license
    • Temporary operation
    • Operation at the same location
  • A diagram of the facility including its size and dimensions, specifications, physical address, location of common entryways, doorways, or passageways
  • Floor plan and layout of the facility including maximum storage capabilities, number of rooms, dividing structures, fire walls, entrances, and exits
  • Means of egress including, but not limited to, delivery or transfer points
  • Construction details for structures and fire-related constructions for necessary walls
  • Building structure information such as if the building is new, pre-existing, free-standing or fixed.
  • Zoning information and classification
  • If the facility is located in a place where there are multiple tenants
  • Security plan for the proposed facility
  • Any other information requested by the department

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Additional Resources

Marijuana Regulatory Agency Response to COVID-19 – Visit the official website for the Michigan government to read the response by MRA to the COVID-19 pandemic. Access the site to see what new modifications have been made to the licensing process, how expired registry identification cards are now handled, and other relevant information.

LARA | Marijuana Regulatory Agency Rules – Visit the official website for the Marijuana Regulatory Agency (MRA) to take a look at their rules and regulations for cannabis facilities. Access the site to learn the compliance rules for storing marijuana products, tracking plants, labeling requirements, and other relevant information.

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Michigan Marijuana Lawyer in Oakland County

The intricacies of cannabis law are complicated and require the examination of a seasoned professional. If you’re interested in pursuing a license or simply maintaining your business lawfully, we suggest you contact J. Dallo of Dallo Law. He can assist you with any questions you may have and help you not just get started but exceed in the marijuana industry.

Call Dallo Law now at (248) 283-7000to set up your first consultation free. Dallo Law accepts clients throughout the greater Michigan area including Bloomfield Hills, Romeo, Utica, Troy, Pontiac, Sterling Heights, Mount Clemens, Roseville and Eastpointe.

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