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The Medical Marihuana Facilities Licensing Act (MMFLA) creates a state licensing system that provides licensees, certified public accountants, and financial institutions with immunity from prosecution for MMFLA-compliant marijuana-related activities. The MMFLA licenses and regulates medical marihuana growers, processors, provisioning centers, secure transporters, and safety compliance facilities.
The MMFLA “does not limit the medical purpose defense provided in . . .MCL 333.26428 . . . to any prosecution involving marihuana.” MCL333.27204.
A. Licensee Immunity
“Except as otherwise provided in [the MMFLA], if a person has been granted a state operating license and is operating within the scope of the license, the licensee and its agents are not subject to any of the following for engaging in activities described in [MCL333.27201(2)]:
(a) Criminal penalties under state law or local ordinances regulating marihuana.
(b) State or local criminal prosecution for a marihuana related offense.
(c) State or local civil prosecution for a marihuana related offense.
(d) Search or inspection, except for an inspection authorized under this act by law enforcement officers, the municipality, or the department.
(e) Seizure of marihuana, real property, personal property, or anything of value based on a marihuanarelated offense.
(f) Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau based on a marihuana-related offense.” MCL 333.27201(1).
B. Protected Activities
“The following activities are protected under [MCL 333.27201(1)] if performed under a state operating license within the scope of that license and in accord with [the MMFLA], rules, and any ordinance adopted under [MCL 333.27205294]:
(a) Growing marihuana.
(b) Purchasing, receiving, selling, transporting, or transferring marihuana from or to a licensee, a licensee’s agent, a registered qualifying patient, or a registered primary caregiver.
(c) Possessing marihuana.
(d) Possessing or manufacturing marihuana paraphernalia for medical use.
(e) Processing marihuana.
(f) Transporting marihuana.
(g) Testing, transferring, infusing, extracting, altering, or studying marihuana.
(h) Receiving or providing compensation for products or services.” MCL 333.27201(2).
C. Immunity for Owners and Lessors of Real Property
“Except as otherwise provided in [the MMFLA], a person who owns or leases real property upon which a marihuana facility is located and who has no knowledge that the licensee violated [the MMFLA] is not subject to any of the following for owning, leasing, or permitting the operation of a marihuana facility on the real property:
(a) Criminal penalties under state law or local ordinances regulating marihuana.
(b) State or local civil prosecution based on a marihuana-related offense.
(c) State or local criminal prosecution based on a marihuana-related offense.
(d) Search or inspection, except for an inspection authorized under this act by law enforcement officers, the municipality, or the department.
(e) Seizure of any real or personal property or anything of value based on a marihuana-related offense.
(f) Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau.” MCL333.27201(3).
D. Immunity for Certified Public Accountants
“Except as otherwise provided in [the MMFLA], a certified public accountant who is licensed under article 7 of the occupational code, . . . MCL 339.720 to [MCL] 339.736, is not subject to any of the following for engaging in the practice of public accounting as that term is defined in . . . MCL 339.720, for an applicant or licensee who is in compliance with [the MMFLA], rules, and the Michigan medical marihuana act:
(a) Criminal penalties under state law or local ordinances regulating marihuana.
(b) State or local civil prosecution based on a marihuana-related offense.
(c) State or local criminal prosecution based on a marihuana-related offense.
(d) Seizure of any real or personal property or anything of value based on a marihuana-related offense.
(e) Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau based on a marihuana-related offense.” MCL 333.27201(4).
E. Immunity for Financial Institutions
“Except as otherwise provided in [the MMFLA], a financial institution is not subject to any of the following for providing a financial service to a licensee under [the MMFLA]:
(a) Criminal penalties under state law or local ordinances regulating marihuana.
(b) State or local civil prosecution based on a marihuana-related offense.
(c) State or local criminal prosecution based on a marihuana-related offense.
(d) Seizure of any real or personal property or anything of value based on a marihuana-related offense.
(e) Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau based on a marihuana-related offense.” MCL 333.27201(5).
Medical marijuana application easier for some owners under bill headed to governor
Lansing — Legislation that would ease the application process for some medical marijuana businesses seeking Michigan operating licenses is headed to the governor’s desk after receiving approvals from the House Thursday.
The bills, which expand on abandoned House legislation, would exempt business owners with less than a 10 percent interest from the more rigorous financial background checks required of owners with greater shares.
The identities of every business owner would still be made known to the state, but those with less than a 10 percent interest would not need to go through more than a preliminary background check.
Publicly held companies would not need to name owners with less than 5 percent interest, according to the legislation.
Senate Majority Leader Arlan Meekhof of Grand Haven has said his bills are similar to other banking operations, and expand on legislation introduced by Rep. Klint Kesto of Commerce Township earlier in the lame-duck session.
Kesto’s bill would have exempted from disclosure on applications owners with a less than 5 percent interest.
The legislation is likely to help large and publicly owned companies and the state that would otherwise need to disclose then vet the backgrounds of thousands of owners.
The legislation stands to benefit companies such as New York City-based Acreage Holdings, which acquired Michigan-based medical marijuana business Blue Tire Holdings LLC this year.
The publicly traded company, whose board includes former U.S. House Speaker John Beohner of Ohio, told The Detroit News the existing law presented a challenge, but the company remained focused on its plan to acquire and develop properties for eventual clinic use.
LANSING — Investors with only a small ownership stake in marijuana businesses would escape financial scrutiny, under a bill that received final passage early Friday morning.
Currently, a person with any ownership stake in a marijuana business has to undergo a thorough financial and criminal background check by the state Department of Licensing and Regulatory Affairs or LARA.
The Senate passed a bill last week to change the investigation threshold to anyone with at least a 10 percent ownership interest. People with less than 10 percent interest in the business would still have to go through a criminal, but not a financial background check.
The bills — SB 1262 and 1263 — are intended to streamline the licensing process for state regulators, who have gotten bogged down with investigating businesses featuring dozens of owners.
The original House version of the bill would have put the investigation level at 5 percent, but decided to give final passage to the Senate version of the bill at 4 a.m. Friday morning on a 96-11 vote.
Lansing — Medical marijuana business owners would not need to disclose an arrest, charge, indictment or expunged conviction on applications for state operating licenses under legislation the Michigan House approved Tuesday.
The bill by Republican Rep. Klint Kesto of Commerce Township also would exempt those with less than five percent ownership in a medical marijuana business from being listed in the application and abiding by the same financial disclosure requirements assigned to other owners.
“If they own less than five percent, they’re not really decision makers; they’re really just investors,” Kesto said, noting the legislation would lessen the board’s burden and encourage investment in the state.
The bill addresses concerns that have arisen as the state licensing board has slogged through dozens of medical marijuana license applications, at times slowed by questions about decades-old arrests or dropped charges.
Arrested for or Charged with DUI or driving under the influence of “drugs”?… Contact Komorn Law 800-656-3557.
In addition to exempting applicants from reporting arrests or charges, the legislation would prohibit the board from considering an indictment, charge or arrest during the license determination. The legislation would still require applicants to disclose a conviction, guilty plea or forfeited bail.
“Rather than look at every contact with police, they look at the conviction,” Kesto said, bringing the industry more in line with a state effort to remove road blocks to employment.
In addition to exempting applicants from reporting arrests or charges, the legislation would prohibit the board from considering an indictment, charge or arrest during the license determination. The legislation would still require applicants to disclose a conviction, guilty plea or forfeited bail.
.If you have any questions or wish to get into the cannabis business industry, call my office to get started or we can also consult existing businesses to maximize profits and minimize risk 800-656-3557.
Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry as well as consulting and legal representation for Medical Maruhuana Patients and Caregivers.
If you or someone you know has been arrested as a result of Medical Marijuana, DUI, Drugs, Forfeiture, Criminal Enterprise or any other criminal charges please contact our office and ensure you’re defended by an experienced lawyer.
Attorney Michael Komorn is recognized as an expert on the Michigan Medical Marihuana Act. He is the President of the Michigan Medical Marijuana Association (MMMA), a nonprofit patient advocacy group which advocates for the rights of medical marijuana patients and their caregivers.
Contact us for a free no-obligation case evaluation 800-656-3557.
This page is for informational purposes only. Laws, regulations and the world change routinely, therefore we insist you consult an attorney for the most current legal information.