The emergence of the cannabis industry was an exciting day for Michigan, but the state doesn’t allow anyone to simply start a business. You will first have to meet the rigorous license standards set by the Marijuana Regulatory Agency and the Michigan Regulation and Taxation of Marihuana Act. Licensing for the cannabis industry can take months and the competition for these licenses are stiff. That’s why it’s imperative you get it right the first time you submit your application, so you can begin building your business as soon as possible.
In order to obtain correct licensing in accordance with the MMFLA, you’ll likely need the help of an experienced Michigan cannabis business lawyer. An experienced attorney can work in conjunction with you to create an effective business plan, guide you through the license application one step at a time, assist you in preparing for a hearing or inspection, and do whatever possible to ensure you obtain a license quickly and legally. If you’re interested in pursuing a marijuana industry license, it’s within your best interest to consult an experienced marijuana lawyer in Michigan.
Marijuana Licensing Attorney in Bloomfield Hills
Are you interested in pursuing a license in the marijuana industry? If so, contact J. Dallo of Dallo Law, P.C.. Whether you’re looking for a license for your small business or want to acquire several licenses for your major corporation—J. Dallo of Dallo Law, P.C. has the skills and knowledge needed to help you. His years of experience in the marijuana industry, both commercial and medical, can provide you with guidance and the practical knowledge needed for a successful outcome.
You can set up your first consultation with an experienced Michigan cannabis licensing attorney today by calling Dallo Law, P.C. office at (248) 283-7000. We’re based in Bloomfield Hills and accept clients throughout the state of Michigan including Sterling Heights, Roseville, Pontiac, Troy, Royal Oak, Utica, Rochester, Novi and St. Claire Shores.
- What Are the Different Types of Marijuana Licenses in Michigan?
- How Expensive is a Marijuana License in Michigan?
- Additional Resources
What Are the Different Types of Marijuana Licenses in Michigan?
The state of Michigan has several different types of marijuana business licenses depending on what you’re interested in. All applicants will be required to submit CPA-attested financial statements to meet capitalization requirements, and some licenses will require additional information and inspections before a license can be procured. The following are the different licenses one can obtain in the state of Michigan.
- Growers – If you want to sell cannabis plants, seeds, or clones to a licensed grower, processor, provisioning center, or retailer, you’ll need a Grower license. In Michigan, Grower licenses are categorized based on the number of plants you’re allowed to cultivate. Growers are required to stay within their licensed plant count at all times and all their plants must be tracked by Metrc. The following are the different medical and adult-use marijuana grower licenses you can pursue:
- Medical Marijuana Grower Licenses
- Class A – 500 plants
- Class B – 1,000 plants
- Class C – 1,500 plants
- Adult-Use Marijuana Grower Licenses
- Class A – 100 plants
- Class B – 500 plants
- Class C – 2,000 plants
- Medical Marijuana Grower Licenses
- Excess Marijuana Grower – For those who wish to manufacture large amounts of marijuana, the Excess Marijuana Grower license is the one for you. In Michigan the maximum number of plants you can cultivate is 10,000, but with an excess grower license you can expand past this cap. To do this, you must first maximize recreational Grower licenses and have already been granted additional medical Grower licenses.
- Processor – Looking to produce marijuana-infused products such as distillates, vape, topicals or edibles? Then you’ll need to prepare for and obtain a Processor license. Processors are licensed to take marijuana plant material and turn it into a marijuana-infused product.
- Retailer / Provisioning Center License– You will need a specific Retailer license if you’d like to set up a marijuana dispensary or retail center in the state of Michigan. Those who obtain a retailer license are normally required to have other various licenses such as a Provisioning Center license. A Provisioning Center license allows retail stores to sell medical marijuana and medical marijuana infused products to patients and caregivers with valid registry cards. Often you will need both a retailer and provisioning center license to get your business off the ground since it’s difficult to succeed without catering to both markets.
- Secure Transporter – Transfers of marijuana or marijuana-infused products between one licensed facility to another must be handled by a licensed Secured Transporter. By obtaining this license, you can support other facilities in the supply chain and ensure the integrity of the Michigan cannabis industry by ensuring safe transportation of the product.
- Safety Compliance Facility – Testing laboratories for cannabis and cannabis-infused products must have a safety compliance facility license. To qualify, there must be at least one person employed as a laboratory manager with a degree relative to medical or laboratory science. There are different requirements for safety compliance facility licenses in both the commercial and medical cannabis market.
- Microbusiness – With the passage of MRTMA, Michigan residents can now apply to open a small marijuana business of their own with a Microbusiness license. This license allows you to sell and grow small amounts of cannabis to your community and is ideal for new entrepreneurs trying to break into the business. It’s important to note that a microbusiness license is exclusive to the adult-use marijuana market.
- Marijuana Event Organizer – The recreational marijuana market continues to grow in Michigan to the point that cannabis-related events are common in the state. Similar to brewery festivals or other alcohol-related events, businesses can participate in marijuana events and expand their clientele. If you as a cannabis business owner are thinking of throwing a marijuana-related event, you must obtain an Event Organizer license.
- Temporary Marijuana Event – If you only plan to allow people to consume or buy at a location for a limited time, then you can pursue a Temporary Marijuana Event license. The license allows retailers and microbusinesses to serve vendors and sell their products in designated areas.
How Expensive is it to Get a Marijuana License in Michigan?
The licensing process isn’t just long, it’s costly. You will need to pay various fees to both the Michigan Department of Licensing and Regulatory Affairs (LARA) as well as the Marijuana Regulatory Agency (MRA). The first big investment you’ll make is the $6,000 application fee required of all applicants. You will then be required to pay regulatory assessment fees once you’re licensed and then from then on annually to renew.
These assessment fees are set as follows:
- Class A Growers – $7,000
- Class B Growers – $14,000
- Class C Growers – $21,000
- Processors – $21,000
- Provisioning Centers – $13,125
In addition to assessment fees, you’ll need to meet the established capitalization requirements for all potential applicants. The documents must be CPA-attested and meet the following:
- Class A Growers – $150,000 ($37,500 in liquid assets)
- Class B Growers – $300,000 ($75,000 in liquid assets)
- Class C Growers – $500,000 ($125,000 in liquid assets)
- Provisioning Centers – $300,000 ($75,000 in liquid assets)
- Processors – $300,000 ($75,000 in liquid assets)
- Safety Compliance Facility – $200,000 ($50,000 in liquid assets)
- Secure Transporter – $200,000 ($50,000 in liquid assets)
In addition to the fees above, you’ll also be required to pay a licensing fee to the local municipality where your business is located. These fees cannot exceed $5,000 and are annual.
MRA | Michigan Marijuana Regulatory Agency – Visit the official website for the Michigan government to learn more about the Regulatory Agency for Marijuana. Access the site to learn about all the different types of licenses you can apply for, what each license does, the process for each license, COVID-19 updates and information regarding the marijuana business, and the social equity program for the Michigan cannabis business.
MRTMA | Michigan Regulation and Taxation of Marihuana Act – Visit the official website for Michigan legislature to read up on the Michigan Regulation and Taxation of Marihuana Act. Access the site to learn the age limit to consume marijuana legally, what’s required for a license, penalties for violations of these rules, and other relevant information.
Commercial & Medical Marijuana License Attorney in Michigan
It can take a long time to obtain a license in the marijuana industry, so it’s important you don’t waste any of it by making avoidable mistakes. Instead, be ahead of the curve with the counsel and guidance from J. Dallo of Dallo Law, P.C.. Michigan marijuana license attorney J. Dallo can help you with every step of the license process from prequalification to renewal. With his skills and knowledge, you can rest assured your license application is in the right hands.
Call J. Dallo at (248) 283-7000 to set up your first consultation today. Dallo Law, P.C. is located in the Bloomfield Hills area, but accepts clients all over including Rochester, Clarkston, Southfield, Royal Oak, Clinton Township, Warren, Sterling Heights, St. Clair Shores, Roseville, Eastpointe, Fraser, and Romeo.