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In order to obtain the correct licensing in accordance with the MMFLA, and to maintain a respected, lawful business, you need the help of an experienced cannabis lawyer. If you are ready to figure out the next step, our firm is here to provide the guidance and legal advisement you need.
Consider the Expense
The licensing process can be expensive. The Michigan Department of Licensing and Regulatory Affairs (LARA) has established the Marijuana Regulatory Agency (MRA) to handle all matters related to commercial cannabis business licensing.
The MRA has established two different categories of fees at the state level for medical marijuana businesses:
- First, there is a $6,000 application fee for all applicants.
- Second, there is an annual regulatory assessment fee, which is due upon licensure and then annually to renew.
The initial licensure fees are currently set as follows:
- Growers: Class A - $7,000, Class B - $14,000, Class C - $21,000
- Processors: - $21,000
- Provisioning Centers: - $13,125
- Secured Transporters: - $13,125
- Safety Compliance Facilities: - $0
The annual renewal fees will be based upon market share during the previous fiscal year. Fees are currently assessed on a tiered system as follows:
- Growers: Class A - $4,667-$9,333, Class B - $9,333-18,667, Class C - $14,000-$28,000
- Processors: $14,000-$28,000
- Provisioning Centers: $8,750-$17,500
- Secured Transporters: $8,750-$17,500
- Safety Compliance Facilities: $0
The MRA has also established capitalization requirements for all potential MMFLA applicants. According to the MRA, all applicants must submit CPA-attested financial statements to meet the following capitalization requirements:
- Class A - $150,000 ($37,500 in liquid assets)
- Class B - $300,000 ($75,000 in liquid assets)
- Class C - $500,000 ($125,000 in liquid assets)
- Processors - $300,000 ($75,000 in liquid assets)
- Provisioning Centers - $300,000 ($75,000 in liquid assets)
- Secure Transporter - $200,000 ($50,000 in liquid assets)
- Safety Compliance Facility - $200,000 ($50,000 in liquid assets)
In addition to the requirements above, applicants will also have to pay a licensing fee to the local municipality where their business will be located. This fee cannot exceed $5,000 annually.
BE PREPARED FOR THE BACKGROUND CHECK
Each investor who owns at least 10% of the applying business will have to disclose a comprehensive set of documents as part of the background investigation. These documents typically span several hundred to several thousand pages, depending on the investor and their financial history.
These required documents include:
- W2s, 1099s, and/or Schedule K-1s
- Tax Deficiency Notices
- Civil Litigation Records
- Criminal Records
- Commercial Licensing Documents
The Application Process Takes Time
The application process can be quite intensive overall. In order to protect their interests and get through the process quickly, applicants will need a team of professionals on their side. When you work with a professional attorney and other cannabis legal experts, it can help ensure you meet the rigorous and stringent licensing standards established by the state and local government. Most applicants will require the services of an attorney, an architect, a CPA, a commercial real estate agent, and licensed contractors.
If you’re interested in learning more about the application process for any of these licenses, contact the cannabis law attorneys at Grewal Law PLLC. The cannabis market presents a unique investment opportunity to be a part of a newly legalized industry with an already established customer base. Our cannabis law division is here to assist you with any questions that you may have to start your own licensed cannabis business.
Adult Use (Recreational) Cannabis Businesses
With Michigan voters’ enactment of the Michigan Regulation and Taxation of Marijuana Act (MRTMA) in November 2018, Michigan is poised to begin accepting applications for commercial businesses that seek to cultivate, manufacture, and sell cannabis for recreational use to those who are at least 21 years old.
Michigan’s Marijuana Regulatory Agency (MRA) began accepting applications for Adult Use Cannabis businesses on November 1, 2019. If you are interested in pursuing a license, contact our office for an introductory consultation. Please keep in mind that with the exception of the Microbusiness and the 100 plant Grower license, Michigan law requires that the business first be licensed for medical marijuana before the business can transition to recreational sales.
MICHIGAN BEGAN ACCEPTING APPLICATIONS FOR THE FOLLOWING LICENSES ON NOVEMBER 1, 2019:
- Class A – 100 plants
- Class B – 500 plants
- Class C – 2,000 plants
- Secure Transporter
- Safety Compliance Facility
IN ADDITION, THE MRA HAS AUTHORIZED THE FOLLOWING ADDITIONAL SPECIAL LICENSE TYPES:
- Designated Consumption Establishment
- Excess Marijuana Grower
- Marijuana Event Organizer
- Temporary Marijuana Event
If you’re interested in learning more about the application process for any of these licenses, contact the cannabis law attorneys at Grewal Law PLLC. The cannabis market presents a unique investment opportunity to be a part of a newly legalized industry with an already established customer base. Our cannabis law division is here to assist you with any questions that you may have to start your own dispensary.
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Our cannabis law attorneys at Grewal Law PLLC have been assisting entrepreneurs pursue licensure across the state of Michigan for years. We have extensive experience working with hopeful businesses, and we have the legal knowledge necessary to protect your interests and investments.
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