The initial costs of a license at the state level include the application fee, the regulatory assessment. Additional costs at the state level are authorized under the Medical Marihuana Facilities Licensing Act (MMFLA) and may be required. An applicant may also need to pay a fee to its municipality of up to $5000.
Any municipality fee is not determined or collected by BMMR, applicants will need to find out this information from their local municipality.
Section 401(5) of the Medical Marihuana Facilities Licensing Act (MMFLA) requires the setting of application fee amounts for each category and class of license by rule.
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 Annual Regulatory Assessment: The regulatory assessment is due prior to the issuance of each license and may vary depending on the number of licenses anticipated to be issued. The regulatory assessment does not apply to safety compliance facilities.
This assessment offsets operational costs and other statutory mandates including LARA’s costs to implement the act. It also offsets the cost of medical-marihuana-related services provided to LARA by the Michigan Attorney General’s office, MSP, and the Dept. of Treasury. By statute, the assessment must also provide $500,000 annually to LARA for licensing substance abuse disorder programs in addition to five percent of the other state departments’ costs to the Michigan Department of Health and Human Services for substance abuse-related expenses.
LARA is currently determining the annual regulatory assessment for fiscal year 2018 for each of the five license categories authorized by MMFLA. Grower A licenses are capped, by statute, at $10,000. Grower B-C, Processor, Transporter, and Provisioning Center licenses will be dependent on the number of total licenses subject to assessment and could be as low as $10,000 or as high as $57,000. The exact amounts of the regulatory assessments are not available at this time.
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))
An applicant cannot obtain a license if any of the following is true:
The applicant is ineligible if he or she has knowingly submitted an application for a license under this act that contains false information.
The applicant cannot be a member of the Medical Marihuana Licensing Board.
The applicant is ineligible if he or she fails to demonstrate the ability to maintain adequate premises liability and casualty insurance for its proposed marihuana facility (an insurance policy that covers at a minimum of $100,000).
The applicant cannot hold an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government; or is employed by a governmental unit of this state. This subdivision does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.
The applicant, if an individual, is ineligible if he or she has been a resident of this state for less than a continuous 2-year period immediately preceding the date of filing the application. This requirement does not apply after June 30, 2018.
The applicant is ineligible if the Board determines he or she failed comply with section 205(1).
The applicant fails to meet other criteria established by rule.
The applicant is ineligible if he or she has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States (federal law) within the past 10 years or has been convicted of a controlled substance-related felony within the past 10 years.
The applicant is ineligible if he or she has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state within the past 5 years.
The applicant is ineligible if he or she has been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state within the past 5 years.
Does my criminal history prevent me from obtaining a license?
It depends on whether the following are true:
The applicant is ineligible if he or she has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States (federal law) within the past 10 years or has been convicted of a controlled substance-related felony within the past 10 years.
The applicant is ineligible if he or she has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state within the past 5 years.
The applicant is ineligible if he or she has been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state within the past 5 years.
The Board may take into consideration the following:
Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning, or had expunged any relevant criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations, regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise.
Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.
