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Overview of Medical Marijuana Licensing

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Medical Marijuana Licensing

If you are looking to enter the Michigan cannabis industry, the first step will likely be to apply for a medical marijuana license. Except for microbusiness licenses and 100 plants recreational marijuana grow licenses, all Michigan recreational cannabis licenses first require that you obtain a Michigan medical marijuana license first. Below is an overview of the Michigan medical marijuana licensing process.

Where do I apply for a license?

The Department of Licensing and Regulatory Affairs accepts license applications in person at 2407 N Grand River Ave. Lansing, MI.  However, most applicants apply

What license types were created?

License Type Description of License
Grower Class A Grower license for 500 marijuana plants
Grower Class B Grower license for 1,000 marijuana plants
Grower Class C Grower license for 1,500 marijuana plants
Processor License authorizes purchase of marijuana from a grower and sale of infused-products or marijuana to a provisioning center.
Secured Transporter License authorizes storage and transportation of marijuana and associated money between facilities.
Provisioning Center Licensee can sell marijuana to a qualified patient or primary caregiver.
Safety Compliance Facility License authorizes the facility to receive marijuana from, test marijuana for, and return marijuana to only a marijuana facility


What are the fees for licenses?

The initial costs of a license at the state level include the application fee, which is paid when you submit your application, as well as the regulatory assessment, which is paid immediately prior to receiving your license. Additional costs at the state level are authorized under the Medical marijuana Facilities Licensing Act (MMFLA) and may be required but have rarely if ever been applied to applicants. An applicant may also need to pay a fee to its municipality of up to $5000.

State License Application Fee: The application fee is non-refundable and offsets the cost for LARA, the Michigan State Police (MSP), and/or contract costs for investigative services for conducting the background investigation of those applying for licenses.

The nonrefundable application fee, which must be submitted before an application will be processed, will be $6000.

State Additional Costs: If required, the applicant may need to pay additional costs. The MMFLA authorizes the following:

  • Late renewal fees as established by rule (Sec. 402(11))
  • 3% tax on each provisioning center’s gross retail receipts (Sec. 601(1))
  • Actual costs of investigation and processing that exceed the application fee paid by an applicant (Sec. 401(5))

Is the state going to limit the number of licenses issued?

No. However, the local municipality has the authorization under MMFLA to restrict or limit the type and number of facilities licensed in their boundaries.

Requirements:

Entity/Individual Prequalification Documents

  •  Completed Application
  •  Copy of Applicant’s Gov’t Issued ID
  •  Application Fee
  •  Applicant’s Passport Quality Photograph Attestations
  • A – Applicant’s Acknowledgment, Agreement, & Consent (notarized)
  • B – Applicant’s Authorization to Release Information (notarized)
  • C – Applicant’s Verification & Affidavit of Full Disclosure (notarized)
  • D – Attestation & Disclosure of Submitter, if applicable (notarized)
  • E – Temporary Operation Attestation, if applicable (notarized)
  •  F – Acknowledgment of Federal Law & Waiver (notarized)

Entity Information

  • DISCLOSURE 1 – Entity Information
  • Official Registration Document (e.g., Articles of Incorporation)
  • Copy of Bylaws or Other Governing Documents
  • Certificate of Good Standing
  • Approval to Conduct Business Transactions in Michigan
  • Trademark/Insignia Documents (if applicable)
  • Copy of Organizational Structure (if applicable
  • Authorizing Resolution (if applicable)
  • Certificate of Assumed Name (if applicable)

Ownership Interest

  • DISCLOSURE 2A – Ownership Interests
  • DISCLOSURE 2B – Ownership Interests Public Officials
  • DISCLOSURE 2C – True Party of Interest
  •  DISCLOSURE 2D – marijuana Entity Ownership Interests
  • DISCLOSURE 2E – Other Interests

Financial

  • DISCLOSURE 3A – Financial Information
  • DISCLOSURE 3B – Real Property Ownership
  • DISCLOSURE 4 – Debt, Insolvency, or Bankruptcy Actions
  • DISCLOSURE 5 – Tax & Tax Compliance
  • CPA Attested Financial Statement Documenting Capitalization
  • Copy of Financial Institution Statements for Past 3 years
  • Income Tax Returns for Past 3 years
  • W2s and/or 1099s For Past 3 years
  • Copy of Documents Related to Property Ownership or Use
  • Copy of Notice of Tax Liability Due (if applicable)
  • Copy of Debt, Insolvency, Bankruptcy Order (if applicable)

Regulation

  • DISCLOSURE 6 – Governmental Regulation
  • Copy of Any Other Commercial Licenses (if applicable)
  • Copy of Any Comparable License from Other Jurisdictions

Criminal History

  • DISCLOSURE 7 – Criminal History
  • Evidence of Charge/Dismissal/Conviction/Expungement (if applicable)
  • Copy of Parole or Probation Information (if applicable)

Litigation

  • DISCLOSURE 8 – Litigation History

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