By: Scott F. Roberts
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MMFLA: An Overview of the Part 2 Application Process
Submitting a Part 1 application under the Medical Marihuana Facilities Licensing Act (MMFLA) can feel like a monumental task, but without proper assistance, the Part 2 application can be even more overwhelming. Do you copy a plan from the internet and hope for the best? Pay a company $5,000 to $10,000 for templates? With so little guidance out there, this can be a daunting and even scary process for medical marijuana companies.
Taking a step back, the Part 2 application is designed to focus on your specific marijuana business facility. It is expected that you have found a municipality that has “opted in” to the MMFLA and has granted your company a business license. It is also expected that you have put a significant amount of consideration into how your medical marijuana business will operate, including: specific location, insurance, staffing, marketing, technology, recordkeeping, and security.
For Part 2 applications, the focus of the application centers on business specifications. You will have to show extensive documentation. This documentation includes a lease or deed for the business property, employee information, and proof of financial responsibility – meaning that you can show enough money, either in cash, securities, insurance policies or bonds, to cover liability for bodily injury that may result from the manufacture, distribution, transportation or sale of adulterated marijuana products.
Further, every applicant will have to prepare a series of “plans” to explain to the Department of Licensing and Regulatory Affairs (LARA) the specifics of how your business will operate. These plans include:
- a “facility plan” as per Emergency Rule 8(2)(a)-(i), including a “security plan” under Rule 27, construction details, zoning information, and more.
- a “technology plan” describing any third-party systems being used to interface with the State of Michigan medical marijuana tracking system
- a “marketing plan” that outlines the applicant’s advertising and marketing plans
- an “inventory and recordkeeping plan” that shows how the business will acquire, store, and transport medical marijuana products, and how inventory records will be maintained.
- a “staffing plan” that describes the job descriptions, hiring procedures, employee training, storage of employee records, and day to day operations.
The level of detail required by the State of Michigan in drafting these Part 2 applications can make them extremely difficult for medical marijuana business owners. A medical marijuana business attorney who specializes in small businesses, rather than marijuana criminal law, would be a significant advantage to any applicant to help you navigate this process without jeopardizing your Part 1 prequalification approval.
Mr. Roberts is the founder and managing member of Scott Roberts Law, a Detroit-based Cannabis Business Law Firm founded in 2014. Scott has spent his entire career representing businesses and helping them comply with municipal, state and local regulations, as well as assisting on transactional corporate and real estate matters. Scott is an accomplished attorney, author and public speaker, having spoke at CannaCon, Cannabis Industrial Marketplace, CannabisAid, and 420 Canna Expo, to name a few. He has also taught Continuing Legal Education on Marijuana business matters, meaning other attorneys see him speak to learn about the nuances of cannabis business law.