On March 21, 2019 the Bureau of Marijuana Regulation (BMR) released an advisory bulletin regarding intellectual property now allowing licensed facilities to use another company’s brands or recipes. Michigan medical marijuana licensed facilities can now enter into licensing and royalty agreements based on the number of units sold. The BMR will require a copy of the contract which must include the names of the individuals involved. This is good news for companies that have established brands and or unique recipes as they may now be able to capitalize on the brand or recipe without obtaining a license under the Michigan Medical Marijuana Facilities Licensing Act (MMFLA). If you have questions regarding either licensing a brand or obtaining an established brand call the Michigan Cannabis Lawyers at 517-512-8364.
Would you like free news, updates, and analysis regarding the Michigan Medical Marihuana Facility Licensing Act in Michigan? Marihuana Licensing is always changing and morphing. Get updated information on whats going on with the Michigan Cannabis Lawyers.
Today, March 1, 2019, Gov. Gretchen Whitmer issued an order effectively abolishing the Medical Marijuana Licensing Board. The Marijuana Regulatory Agency will take its place and oversee the regulation of both medical and recreational marijuana licensing. Gov. Whitmer was quoted saying, “All elements of this Agency have been designed to serve and better protect Michigan residents, and I’m eager to have a unified effort across state departments to make sure this process runs effectively and efficiently.”
The current plan is to have an Executive Director that is appointed by the Governor run the agency. The director would be limited to a 4 year term. The Agency would also be required to hold 4 public hearings each year to hear complaints and provide information to the public. This order will not go into effect until April 30, 2019. Until then, Republican legislators have 60 days to decide whether to object, veto, or accept the order.
The Michigan Cannabis Lawyers are excited about this new development in Michigan and are hopeful of the positive impact this change will make on the industry. If you are interested in obtaining a license for a marijuana facility or have questions about how the new order may affect you or your prospective business, call the Michigan Cannabis Lawyers at 517-512-8364.
Since recreational marijuana use has been legalized there have been attempts made by those in office to amend the newly passed initiative as well as the existing medical marijuana laws.
A recent House Bill was proposed and struck down that took aim at home cultivation and marijuana micro-businesses. House Bill 1243 was proposed by Republican Senator Arlan Meekhof on November 29. This Bill aimed to ban home cultivation by adults, which was approved by Michigan voters as part of Prop 1. Prop 1 provided in part that those over the age of 21 that are residents of Michigan may legally grow up to 12 marijuana plants in their home. In addition, HB 1243 attempted to derail micro-business licenses altogether. Marijuana micro-businesses are allowed to cultivate up to 150 marijuana plants, process marijuana, and conduct retail sales of marijuana to individuals 21 years or older.
The proposed bill also attempted to lower the excise tax on retail sales of marijuana products from 10% down to 3%, change how the tax revenue would have been distributed and create a licensing board similar to that used in medical marijuana facility licensing. This bill died on December 13, 2018.
Following the failed bill, Senator Meekhof then proposed amending the Medical Marihuana Facilities Licensing Act. Senate Bill 1262 was passed by exiting governor Rick Snyder on December 28, 2018, allowing minor investors in medical marijuana businesses to no longer have to undergo financial scrutiny during the application process. Prior to this bill passing, any investors involved in a medical marijuana business holding 1% or more equity were subject to a criminal and financial background check completed by LARA. This bill now allows an investor with a less than 10% ownership interest in the business, and who does not exercise control over any management aspects of the company to not have to complete a financial check. However, a criminal background check is still required.
Additionally, this bill amended the definition of who is considered an applicant during the application process. The MMFLA previously required that a person with any direct or indirect ownership interest in the business must go through a background check, the results of which could then disqualify the applicant. The passed bill no longer considers anyone with a less than 10% ownership interest in the company an applicant. Applicants still include spouses of each partner, limited partners, member or shareholder holding a substantial ownership interest.
The definition was further amended to allow transfers of ownership interest in the company so long as it is approved by the licensing board prior to the transfer and the transferee is considered an applicant under the new definition. This change would allow publicly traded corporations to operate more efficiently when shares are publicly traded so long as the traded amount is less than 10%.
Another notable change in the newly passed bill includes the added crimes related to operating a marijuana facility without a valid license. Beginning June 1, 2019, if a person violates that section by operating a marijuana facility without a license or on a revoked, suspended or lapsed license may be found guilty of a misdemeanor and face a fine not less than $10,000 or more than $25,000, or imprisonment of not more than a year, or both. If the violation of this section results in the death or serious injury of someone then the violator may be charged with a felony punishable by a fine or imprisonment for not more than 4 years.
A minor change made by the bill also allows a licensee to not be required to use a third party inventory system only if the statewide monitoring system is capable of allowing a licensee to access and enter information themselves.
All the aforementioned changes only apply to those applicants that submit an application for a medical marijuana license on or after January 1, 2019. If an applicant has already filed their application before this date these changes do not affect them.
While this bill focuses on medical marijuana sales in the state, its effects do reach into recreational marijuana in Michigan as well. The first recreational licenses to grow, manufacture and sell marijuana, excluding class A grows and micro-businesses, will be awarded to those who already have an operational medical facility license. The impact of these changes will be felt throughout the Michigan marijuana industry as more licenses are approved.
The Michigan Cannabis Lawyers are excited about the prospects of marijuana micro businesses and the niche markets that will develop in Michigan. If you’re interested in starting a marijuana microbusiness or have questions about how the new laws may affect you, call the Michigan Cannabis Lawyers at 517-512-8364.
A recent House Bill was proposed and struck down that took aim at home cultivation and marihuana microbusinesses. House Bill 1243 was proposed by Republican Senator Arlan Meekhof on November 29. This Bill aimed to ban home cultivation by adults, which was approved by Michigan voters as part of Prop 1. Prop 1 provided in part that those over the age of 21 that are residents of Michigan may legally grow up to 12 marihuana plants in their home. In addition, HB 1243 attempted to derail micro business licenses altogether. Maruhuana micro business are issued a micro license, which permits the licensee to vertically integrate the cultivation of up to 150 marihuana plants, processing of marihuana, and retail sale to individuals 21 years or older.
The proposed bill also attempted to lower the excise tax on retail sales of marijuana products from 10% down to 3%, change how the tax revenue would have been distributed and create a licensing board similar to that used in medical marijuana facility licensing. This bill died on December 13, 2018 and has, for now, alleviated some concern regarding a rewrite of the law currently in effect.
The Michigan Cannabis Lawyers are excited about the prospects of marihuana micro businesses and the niche markets that will develop in Michigan. If you’re interested in starting a marihuana microbusiness or have questions about how the new laws may affect you, call the Michigan Cannabis Lawyers at 517-512-8364.
The newly enacted law which legalized recreational marijuana in Michigan allows for individuals with marijuana-related felonies the opportunity to apply for licenses to operate marijuana businesses.
Section 8.1, subsection c, of the new marijuana statue states, “a prior conviction solely for a marijuana-related offense does not disqualify an individual who is otherwise eligible for licensure unless the offense involved the distribution of a controlled substance to a minor.”
Those that were precluded from obtaining a medical marijuana facility license may now have a path to operate a commercial recreational marijuana facility under the laws recently passed by voter initiative.
If you have a prior marijuana-related felony and want to know more about applying for a micro business license or any other type of license for recreational marijuana, call the Michigan Cannabis Lawyers at (517) 512-8364.
Michigan Marijuana Microbusiness
Marijuana Microbusiness is a type of licensing regulation utilized where the recreational use of marihuana has been legalized. Similar to microbreweries for the production and sale of alcohol, marihuana microbusinesses are independently owned businesses that grow, process and sell their own marihuana. By applying for a micro license, an individual 21 years of age or older may be allowed to grow, process, and sell marihuana to others 21 or older. This comes with certain limitations placed on the quantity the micro licensee may grow and to whom they may sell their product.
In the state of Michigan, a proposed initiative called the Michigan Regulation and Taxation of Marihuana Act (MRTMA) would allow an adult, 21 years of age or older, to apply for a license to operate a Michigan marihuana microbusiness.
Michigan Micro Grow License
A microbusiness, as defined in MRTMA, allows an individual to operate a marihuana business cultivating not more than 150 plants, processing, and packaging marihuana products made from plants they grew, and selling and transferring marihuana to individuals who are 21 years of age or older, but the licensee may not sell to or purchase from other marihuana establishments. Therefore, a licensee may not conduct business with another marihuana grower, processor, retailer, or any type of marihuana related business.
If you have been interested in getting into Michigan Marijuana Microbusiness industry and are excited about a new sector of that industry, contact the lawyers who stay on the cutting edge.
Call the Michigan Cannabis Lawyers today at 517-512-8364.
Today, Michigan announced that certain edible marihuana products are not fit for production under the state’s new regulations.
Some of the products that Michigan has decided not to allow include:
- Ice Cream
- Vegetable based jams and jellies
- Canned fruit or vegetable butters, such as apple butter
- Pies and cakes that require refrigeration
- Mike and dairy products
Some of the products that Michigan has decided to approve include:
- Ground and roasted coffee
- Confections and sweets that are made without alcohol
- Fruit jams and jellies that can be stored at room temperature
The landscape of Michigan’s legal framework is constantly evolving. To get in touch with the attorneys that stay one step ahead, call the Michigan Cannabis Lawyers at 517-512-8364.
On August 9, 2018, the Bureau of Medical Marihuana Regulation held a meeting to consider 25 applications for a medical marihuana facility license. On September 15, 2018, those businesses which are temporarily operating under Emergency Rule 19 will be forced to shut their doors unless they possess a valid operating license from the State of Michigan. At the conclusion of the meeting, 9 operating licenses were granted to various facilities. Although progress was made, Michigan citizens remain concerned about the potential lack of access to medical marihuana in the not too distant future. The Bureau of Licensing and Regulatory Affairs has repeatedly stated that the September 15, 2018 deadline will not be extended and that they anticipate reasonable access to medical marihuana across the state.
Here is a breakdown of the applications that were reviewed:
A. Pre-Qualification Applications
1. Applicant: DNVK Lapeer, Inc. File No: ERGA-17-000006; vote 5-0
2. Applicant: Harbor Farmz North, LLC, File No: ERGA-17-000015; vote 0-5.
3. Applicant: QPS Michigan Holdings, LLC, File No: ERGA-18-000062; vote 4-1.
4. Applicant: Amazing Budz, LLC, File No: ERGA-18-000068; vote 5-0
5. Applicant: MEM Gardens, LLC, File No: ERGA-18-000069; vote 5-0
6. Applicant: Green Labs, LLC, File No: ERGA-18-000111; vote 1-3
7. Applicant: Ann Arbor Provisioning Center, LLC, File No: ERGA-18-000135; vote 3-2
8. Applicant: TC MI AG, LLC, File No: ERGA-18-000275; vote 2-3
9. Applicant: TC MI MFG, LLC, File No: ERGA-18-000277; vote 0-5
10. Applicant: TC MI Ann Arbor 2, LLC, File No: ERGA-18-000497; vote 0-5
11. Applicant: Natural Caregivers, LLC, File No: ERGA-18-000170; vote 2-3
12. Applicant: Superior Cannabis Solutions, LLC, File No: ERGA-18-000179; vote 0-5
13. Applicant: LivWell Michigan, LLC dba LivWell Enlightened Health, File No: ERGA-18-000269; vote 5-0
14. Applicant: Holistic Research Group, Inc. File No: ERGA-18-000378; vote 0-5
15. Applicant: Great Lakes Natural Remedies, Inc. File No: ERGA-18-000452; vote 3-2
B. State Operating License Applications
1. Applicant: VB Chesaning, LLC, File No: ERGA-17-000024; vote 5-0
License(s): Processor, File No: PRA-18-000008 Prequalification status for a pending application granted on July 12, 2018
2. Applicant: Choice Labs, LLC, File No: ERGA-18-000039; vote 5-0
License(s): Provisioning Center, File No: PCA-18-000006 Prequalification status for a pending application granted on July 12, 2018
3. Applicant: Iron Laboratories, LLC, File No: ERGA-18-000138; vote 5-0
License(s): Safety Compliance Facility, File No: SCA-18-000003
4. Applicant: Brightmoore Gardens, LLC, File No: ERGA-18-000158; vote 2-3
License(s): Provisioning Center, File No: PCA-18-000023
5. Applicant: Blackrock Management, LLC dba 5 and Dime File No: ERGA-18- 000180; vote 4-1
License(s): Provisioning Center, File No: PCA-18-0000545 Prequalification status for a pending application granted on July 12, 2018
6. Applicant: Vendco Michigan, Inc. File No: ERGA-18-000191; vote 4-1
License(s): Provisioning Center, File No: PCA-18-000092
7. Applicant: Green Skies – Far West, LLC, File No: ERGA-18-000436; vote 4-1
License(s): Provisioning Center, File No: PCA-18-000098
8. Applicant: Green Skies –Hoover, LLC, File No: ERGA-18-000437; vote 4-1
License(s): Provisioning Center, File No: PCA-18-000099
9. Applicant: Green Skies – Healing Tree, LLC, File No: ERGA-18-000438; vote 4-1
License(s): Provisioning Center, File No: PCA-18-000100
10.Applicant: Precision Safety Innovation Laboratories, LLC dba PSI Labs, File No: ERGA-18-000466; vote 5-0
License(s): Safety Compliance Facility, File No: SCA-18-000005 Prequalification status for a pending application granted on July 12, 2018
August 10, 2018 – LARA released today an advisory bulletin on the topic of THCa “diamonds” – or isolate crystals – and their concerns with the safety of the creation process for these products. According to the BMMR, its observations of the creation process of THCa diamonds in Michigan raised safety concerns surrounding the cycle of pressurizing and venting containers to remove unwanted solvent gases during the THCa formation process.
BMMR stated today: “There is a significant potential for injury to persons, or damage to property, if an approved process is not followed. These gases must be released in a controlled and consistent manner, within a closed loop system, to capture released gases. Utilization of a hood system is not an acceptable means of controlling the flammable vapors.”
BMMR further states that applicants and licensed processors who utilize an unapproved method for creating THCa crystals could face sanctions, including, but not limited to, license denial, limitation, fines, revocation, suspension, nonrenewal, administrative holds, and orders to cease operations.
If you are an applicant for a processor license with questions about the compliance of your THCa SOP, contact one of our attorneys to schedule a consultation.
May 30, 2018
The department of Licensing And Regulatory Affairs (LARA) issued new emergency rules through the Bureau of Medical Marihuana Regulations (BMMR), that will help ensure medical marihuana patients will continue to have safe access to their medicine. The previous emergency rules would have required all currently operating medical marihuana facilities to close and cease operations if they had not received a state license by June 15 2018. This has been a concern for many patients and caregivers across the state as the BMMR and the Medical Marihuana Licensing Board (MMLB) have yet to approve any state licenses. It certainly seemed that without new emergency rules or some other intervention, medical marihuana patients and caregivers that rely on provisioning centers would be left without safe access to their much needed medicine. Luckily, Governor Snyder signed the new emergency rules which amends Rule 19 and now extends the deadline for licensure approval to September 15th.
Rule 19 now allows for those provisioning centers that were currently operating and had sent in MMFLA applications to the BMMR by February 15th to remain operating temporarily until either they are denied a license or September 15th of 2018. There is still some concern regarding temporary operation, as some board members have made statements about the legality of those who have previously operated without a license, and LARA in the press release announcing the new deadline for temporary operation stated, “Ultimately, licensure decisions will be made by the members of the MMLB, who may choose to consider unlicensed activity as part of the licensing criteria when deliberating on the overall application. Until a license is received from the state, the operation of a proposed medical marihuana facility should be considered a business risk by the operator”.
While the new emergency rules are good news for patients and those currently operating, it does little to speed up the licensing process and there is still no guarantee that any licenses will be issued by September 15th. Even if some licenses are issued, will there be enough licenses issued by the MMLB to cover patients and caregivers in each of the 63 municipalities that have opted into allowing provisioning centers under the MMFLA? It appears that LARA is working hard to accommodate patients by extending the deadline but isn’t taking the necessary steps to speed up the application process. If you have any questions involving the application process under the MMFLA or any recent announcements by the BMMR please call the Michigan Cannabis Lawyers at the Covert Law Firm at 517-512-8364.