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.
This legislation was passed in 2008 allowing for individuals and their assigned card carrying caregivers to grow and possess marijuana in limited quantities, as long as they had a prescription from a doctor.
The legislation left a lot of items open for interpretation, creating many gray areas and legal misinterpretations that were twisted to the advantage of one party over another. Gray areas like this got many people in legal trouble, even when they were trying to operate within the rules.
To date, dispensaries have typically been operating outside of this law. Some municipalities have shut down dispensaries while others have allowed them to operate. The MMMA says it allows for caregivers to receive compensation for their expenses in growing and creating medicine.
The MMFLA was passed in 2016 in an attempt to provide the state with legal framework for marijuana businesses to operate.
By applying for a permit with the local municipality, and then applying for and getting approved for a license with the state, approved businesses will be allowed to operate under rules that the state has been evolving.
There are currently 5 basic license types that will be issued, Class A, B, or C Cultivation, Processing (Extraction, cooking, packaging, etc), Provisioning (Dispensary), Safety Compliance (Testing labs), and Secure Transportation.
These businesses will operate under restrictive state regulations. There will be several requirements like reporting every purchase and sale to the state, undergoing extensive background searches, and following specific packaging standards. There is also a substantial application process involved in this model, along with annual fees and many other requirements.
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.
Michigan has had the Medical Marihuna Act in effect since 2008 and which has generated opportunities for those interested in owning or working in a business involving Cannabis.
With the possibility of marijuana becoming legal for recreational use, the State of Michigan is going to require specialized licensing in multiple categories to operate a Marijuana business.
Komorn Law Can Help.
At Komorn Law we have helped many clients through this process of obtaining licensing for the Medical Marihuana Facilities Act (MMFLA).
An example of some of the licenses available and some that may become available include:
Provisioning Center Licensing
Grow Licenses
Cultivation Licenses
Infused Product Licensing
Occupation Licenses
Transportation Licenses
Our attorneys can clarify the licensing and regulatory requirements and/or concerns.
There are many rules and regulatory issues that we can assist and advise you to be a legal patient or caregiver. Our attorneys also can help your marijuana business maintain compliance and grow safely though the changing laws.
Law Enforcement and the court systems prey upon the confusion cause by the laws and regulations. Komorn Law has assisted many clients both before and after encounters with Law Enforcement or regulators.
Non-compliance means penalties.
Failure to comply with rules and regulations can result in a list if infractions or penalties or even possibly legal charges against you and/or your business. This can slow down or posibly shut down your business for good.
Being proactive and not reactive can save you a lot of money and wasted resources.
It’s important before rather than after to make sure that you comply with Michigan’s laws: Failure to do so could make your facility a more appealing objective for the federal government.
Contact us today for help in understanding Michigan’s medical marijuana laws and the proposed recreational marijuana licensing programs.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.
