Can you submit the entire application if you are still awaiting municipality approval?
Yes, you can submit the entire application (step 1 and step 2) at any time after December 15, 2017. However, a license cannot be granted until the business’ municipality has opted in to the MMFLA and an address can be identified.
How can people get information from the board and Department?
The Department’s website has information available on the Medical Marihuana Facilities Licensing Act and a person can sign up for updates at: www.michigan.gov/medicalmarihuana.
In addition, a person may contact the Bureau of Medical Marihuana Regulation (BMMR)
Can the Department clarify the intent of Rule 24(2)(c)?
Rule 24(2)(c) of the Emergency Administrative Rules filed on December 4, 2017 pertains to operation at a same location commonly referred to as co-location. For background purposes, pursuant to section 205 of the MMFLA a municipality has the authority to adopt an ordinance to limit the type or number of marihuana facilities within their boundaries. For clarification purposes, the intent behind Rule 24(2)(c) is that the applicant cannot circumvent the municipal ordinance or zoning regulation, which may limit the type or number of marihuana facilities under section 205 of the act, simply by operating at a same location.
Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.
(1) An applicant shall disclose the sources and total amount of capitalization to operate and maintain a proposed marihuana facility.
(2) The total amounts of capitalization based on the type of marihuana facility specified in the application for a state operating license are as follows:
(a) Grower: Class A – $150,000.00.
(b) Grower: Class B – $300,000.00.
(c) Grower: Class C – $500,000.00.
(d) Processor: $300,000.00.
(e) Provisioning Center: $300,000.00.
(f) Secure Transporter: $200,000.00.
(g) Safety Compliance Facility: $200,000.00.
(3) An applicant shall provide proof to the department of the capitalization amounts in subrule (2) of this rule from sources as follows:
(a) Not less than 25% is in liquid assets to cover the initial expenses of operating and maintaining the proposed marihuana facility as specified in the application. For purposes of this subdivision liquid assets include assets easily convertible to cash, including, but not limited to, cash, CDs, 401(k), stocks and bonds, and marihuana inventory that meet the all the following conditions:
(i) The marihuana inventory is possessed by an applicant who is a registered qualifying patient or registered primary caregiver or by an applicant who applies for a state operating license and possesses marihuana inventory in compliance with the Michigan medical marihuana act.
(ii) No more than 15 ounces of usable marihuana or 72 marihuana plants may be utilized as marihuana inventory in this subdivision or utilized towards the capitalization requirement under this subrule.
(b) Proof of the remaining capitalization to cover the initial expenses of operating and maintaining the proposed marihuana facility may include but is not limited to additional liquid assets as described in subdivision (a) of this subrule or equity in real property, supplies, equipment, fixtures or any other nonliquid asset.
(4) The applicant shall provide proof that there is no lien or encumbrance on the asset provided as a source of capitalization.
(5) The capitalization amounts and sources must be validated by CPA-attested financial statements. The applicant shall disclose any of the capitalization sources that are foreign and a foreign CPA or its equivalent shall attest to the validation and a domestic CPA shall attest that foreign validation.
Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.