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.
Hey Everybody its Josh Covert from the Michigan Cannabis Lawyers. I’m in at the office today had a little time to shoot a video so I thought I talked about Michigan Marijuana Microbusiness. I get a lot of questions about micro businesses!
Two Marijuana Speakeasies were raided by the police recently and shut down for not having a Michigan Marijuana License.
Call our office (517) 512-8364 or leave a comment below if you have questions about what you can do to prevent this happening to you.
Similar to microbreweries for the production and sale of alcohol, a Michigan marijuana microbusiness is an independently owned businesses that grow, process and retail sell their craft goods to those 21 years of age or older.
Although limitations exist on production quantity and outlet ability, marihuana microbusinesses are well poised to compete in Michigan’s recreational landscape.
The Michigan Regulation and Taxation of Marihuana Act (MRTMA) was passed by voter initiative in late 2018. The state is likely to start accepting applications for marihuana microbusiness in September 2019.
For those who want to turn their passion into a fully integrated business operation without the need for large-scale capital contribution, the marihuana microbusiness may be the perfect avenue to pursue.
If you’re looking to break into the cannabis market and want to strategically explore your options, give the Michigan Cannabis Lawyers a call at (517) 512-8364.
See Also:
3 Michigan Marijuana Microbusiness Tips
Josh Covert on Michigan Marijuana Microbusiness www.micannabislawyer.com
Can you license your existing marijuana brand or recipe? Bureau of Marijuana Regulation says yes.
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.
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.
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.
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.
See also:
Can you license your existing marijuana brand or recipe? Bureau of Marijuana Regulation says yes.
Michigan Marihuana Laws – Home Cultivation and Micro Business
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:
Some of the products that Michigan has decided to approve include:
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.
