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Wondering if you could get a marijuana microbusiness in Michigan? Check out our blog where we break it down and give you free Michigan microbusiness information.

CRA Public meeting scheduled for 09/14/22

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The Cannabis Regulatory Agency (CRA) will hold a public meeting on Wednesday September 14, 2022, at 9:30 A.M. For meeting information please see the Public Notice Announcement by clicking here.

The purpose of this public meeting is to hear complaints and receive the views of the public on CRA’s administration of the authorities, powers, duties, functions and responsibilities under Michigan’s marijuana laws.

Specifically, the CRA is seeking public input on the following topic:

The agency has been hearing concerns that the supply of marijuana produced by licensed growers exceeds, or may soon exceed, consumer demand. The concerns include that the wholesale price of flower is lower than the cost of production – or will be when harvests are highest in October. Background data from CRA monthly reports:

  • Between July 2021 and July 2022, the average retail price for an ounce of flower has declined 48% in the medical market (from $213.89 to $110.72) and 44% in the adult-use market (from $217.94 to $121.58).
  • Between July 2021 and July 2022, the number of plants being grown by medical and adult-use growers has increased as follows:
  • Immature plants – 48% (from 282,945 to 417,469).
  • Vegetative plants – 295% (from 228,611 to 903,115).
  • Flowering plants – 69% (from 309,554 to 521,997).
  • Between July 2021 and July 2022, the number of active grower licenses* has increased 65% and the number of active retail licenses** has increased 34%.

* Includes all medical and adult-use grower licenses of all classes, does not include microbusinesses or class A microbusinesses.

** Includes all medical provisioning centers and adult-use retailers, does not include microbusinesses or class A microbusinesses.

Questions for consideration:

  1. Would you support a change in the law to place a moratorium on the issuance of grow licenses? If so, under what conditions? If so, for what period of time?
  2. Should the agency eliminate the excess grower license established in the administrative rules, as authorized by Sec. 8(2)(a) of the MRTMA [MCL 333.27958(2)(a)]?
  3. Should the agency promulgate a rule as authorized by Sec. 9(3)(d)(3) of the MRTMA [MCL 333.27959(3)(d)(3)] to authorize an individual to hold an interest in more than five marijuana growers or in more than one marijuana microbusiness after January 1, 2023?

While the public hearing will be held in person, members of the public will also have the opportunity to attend, participate, and give public testimony via Zoom. The CRA encourages members of the public to participate and provide recommendations to the CRA.

 

Keep up to date on Michigan’s evolving licensed cannabis landscape by staying tuned to Michigan Cannabis Lawyers. Call us today at (517) 512-8364.

2021 Tax revenue sharing for Adult Use Retail and Microbusiness communities

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LANSING, Mich. – The Michigan Department of Treasury today announced that more than $42.2 million will be distributed among 163 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.

Next week, 62 cities, 15 villages, 33 townships and 53 counties will be receiving payments from the Marihuana Regulation Fund. For the state of Michigan’s 2021 fiscal year, this means each eligible municipality and county will receive more than $56,400 for every licensed retail store and microbusiness located within its jurisdiction.

“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”

Revenue was collected from 374 licensees among the state’s cities, villages and townships during the 2021 fiscal year. Some of these municipalities host more than one licensed retail store and microbusiness.

For the 2021 fiscal year, more than $111 million was collected from the 10% adult-use marijuana excise tax. In total, there was $172 million available for distribution from the fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the more than $42.2 million in disbursements to municipalities and counties, $49.3 million was sent to the School Aid Fund for K-12 education and another $49.3 million to the Michigan Transportation Fund.

In total, more than $1.1 billion in adult-use marijuana sales was reported for fiscal year 2021.

“It’s rewarding to see that the agency’s balanced regulatory approach is effectively protecting consumers while still allowing Michigan businesses to grow and thrive,” said MRA Executive Director Andrew Brisbo. “The funding provided directly to local governments – and the thousands of jobs created across the state – show that Michigan is leading the way in the cannabis industry.”

MRA announces updated Rules and fee levels

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Effective March 7, 2022, new MRA Rules, license type, and fee levels will be implemented. Please see below for details from Michigan’s MRA.

For up to the minute news, advice, and cutting edge legal representation, be sure to contact the Michigan Cannabis Lawyers at 517 512-8364.

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March 4, 2022 – In an effort to continue stimulating business growth while preserving safe consumer access to marijuana, the Marijuana Regulatory Agency (MRA) has updated the administrative rule sets, effective Monday, March 7, 2022. As a result of the update, there will be numerous changes occurring on the website and to the forms, applications, and various publications. Highlights of the rules and process changes are noted below.

License applicants are advised that the applications, step-by-step instructions, and other educational resources that were previously available on the MRA website for adult-use establishments and medical marijuana facilities are being updated to comply with the updated rule sets. Additionally, the MRA advisory and technical bulletins are being updated, as applicable.

Applicants and licensees are encouraged to obtain applications and forms directly from the website to ensure they are using the most up-to-date materials. Previous versions of the medical and adult-use applications will not be accepted. To ensure applications are processed as quickly and efficiently as possible, applicants are encouraged to submit applications through the online application portal, Accela Citizen Access (ACA). ACA is also being updated to be consistent with the updated rule sets and mirror the changes made to the paper applications.

Highlights of the Rule Changes

New Fees

  • The adult-use and medical marijuana application fees were lowered from $6,000 to $3,000.
  • Adult-use establishment renewal tiers were removed; licensees who have already been invoiced a renewal fee are to pay the fee as invoiced.
  • Medical marijuana facility renewal tiers were removed; this change will take effect for fiscal year 2023 (please refer to the regulatory assessment bulletin that outlined the fees for fiscal year 2022 for medical marijuana facilities).
  • See the Licenses rule set for the full list of new, lower fees for adult-use establishment licenses. Please visit the MRA website and click on the Laws, Rules, & Other Resources link.

New Adult-Use Class A Marijuana Microbusiness License

  • Initial licensure fee is $18,600 and allows a licensee to grow up to 300 plants.
  • Class A marijuana microbusinesses may purchase marijuana concentrate and marijuana-infused products from a processor.
  • Marijuana liability insurance will be required upon licensure and at renewal.

New Adult-Use Educational Research License

  • Applications will only be accepted from organizations that have been accredited by the Higher Learning Commission.
  • Licensees are required to have proof of DEA registration to operate.
  • License is valid for one year and does not carry an application fee, a licensure fee, or a renewal fee to operate.

Application Changes

  • The adult-use requirements for applicant disclosure have been updated to match medical requirements for applicant disclosure; those with less than 2.5% ownership interest are not required to be disclosed.
  • A definition of a trustee was added to the rules.
  • Added a rule that the MRA can administratively withdrawal applications that are over one year old and have had no determination made.
  • Renewal applications may be denied for failure to submit an annual financial statement as required.

Enforcement

  • Documents have been updated; those interested in licensure can find copies on the MRA website by clicking on the MRA Bulletins link and expanding the Technical Bulletins tab:
    • Prelicensure inspection checklist
    • 30-day inspection checklist
    • Semi-annual inspection checklist
    • SCF Inspection Report

Sampling & Testing

  • There have been significant updates to the requirements for sampling and testing of marijuana and marijuana product.
  • There have been modifications to allow more movement of product within the market prior to final, full, safety compliance testing being required.

Operations

  • Contactless and limited contact transactions – including curbside service and drive-thru operations – are allowed, with municipal approval.
  • Product that is required to be destroyed must be destroyed within 90 days.
  • There are updated requirements for Standard Operating Procedures (SOPs).

Declaratory Rulings

  • Set forth a complete rule set outlining the process and requirements for a Request for a Declaratory Ruling from the Agency.

Infused and Edible Products

  • Updated requirements for packaging and labeling of products.

Potential Service Interruption While Making System Changes

Due to the number of changes that need to be made across the MRA website and within ACA, the public may experience brief interruptions to service while the MRA makes these changes.

The MRA appreciates your understanding and patience while the necessary system changes are made.

For questions, please contact MRA-Adult-Use-Marijuana@Michigan.gov.

Michigan Marijuana Regulatory Agency Creates Rules for Marijuana-Infused Beverages

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The MRA just announced a process for licensed processors to obtain approval for marijuana-infused beverages.  The Technical Bulletin dated January 4, 2021 requires any licensed processor who is interested in creating a marihuana-infused beverage to submit a request to the MRA.  The request includes a number of documents such as confirmation that the processing facility is currently in the process of receiving Good Manufacturing Practices (GMP) certification and a complete Hazard Analysis Critical Control Points (HACCP) plan. The marijuana-infused beverage must be self stable and will be required to maintain potency over a three month period.  There also must be a research and development plan submitted to prove the shelf stability of the marijuana-infused beverages.

It will be interesting to see how marijuana processors figure out the potency issue known as THC leeching.   THC has been difficult for many processors to properly dose beverages because of the solubility of THC and the ability to absorb into many material such as the lining in aluminum cans.  The products will also be tested for sedimentation to ensure homogeneity.   This is also difficult with THC as it will often separate over time from the beverage.  It is exciting to see that soon Michigan cannabis consumers can enjoy marijuana-infused beverages.   It will be interesting to see which current beverage producers will be moving forward in the new marijuana-infused beverage industry.  It is expected that their experience with beverage manufacturing and GMP plans will give make them valued partners.  If you have any questions about the marijuana-infused beverage approval process call the Michigan Cannabis Lawyers at 517-512-8364.

 

Michigan Microbusiness Tips with Josh Covert of the Michigan Cannabis Lawyers www.micannabislawyer.com

3 Michigan Marijuana Microbusiness Tips

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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!

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Michigan MMFLA License www.micannabislawyers.com

Changes to Michigan MMFLA License May Affect Recreational Applicants

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Michigan MMFLA License Changes

Since recreational marijuana use is legalized, those in the office are attempting to amend the newly passed initiative as well as the existing medical marijuana laws.

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MMFLA Attorneys Say You Can Apply for a Marijuana License with a Felony

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Our Michigan cannabis MMFLA Attorneys say you can apply for a marijuana license with a felony.

Did you know: Michigan allows for individuals with marijuana-related felonies the opportunity to apply for licenses to operate a marijuana facility? Our MMFLA Attorneys are here to help you understand.

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Free Marijuana Microbusiness License Information

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Looking for Michigan micro grow license information? Click here

 

What is a Marijuana Microbusiness?

A Michigan Marijuana Microbusiness is a commercial cultivation license in Michigan. This is a type of license used for a small cannabis business. This regulation is 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.

Although limitations exist on production quantity and outlet ability, marihuana microbusinesses are well poised to compete in Michigan’s recreational landscape.

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 marijuana microbusiness.

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