LARA-MMFLA-Michigan communities that have opted in to the MMFLA

LARA-MMFLA-Michigan communities that have opted in to the MMFLA

Michigan communities that have opted in to the MMFLA

This is an unofficial document compiled by Bureau of Medical Marihuana Regulation staff for informational purposes only. This is a working document that may be revised. This document will be updated weekly.

Document Link

Updated as of 6/15/18

 


Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.

Contact Us For More Information.

800-656-3557

LARA-MMFLA-Michigan communities that have opted in to the MMFLA

LARA-MMFLA-financial institutions generally disfavor cannabis-what does the state have in place to accept fees and taxes

Since financial institutions generally disfavor cannabis businesses what procedure does the state have in place to accept fees and taxes?

 

The Department intends to allow the acceptance of fees online via credit card payment, or in person via cash, check or credit card. Questions regarding the methods by which taxes may be paid should be directed to the Michigan Department of Treasury.

 


Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.

Contact Us For More Information.

800-656-3557

LARA-MMFLA-Michigan communities that have opted in to the MMFLA

LARA-MMFLA-If you get licensed as an individual and then later create a company

If you get licensed as an individual and then later create a company with a different business structure, can that change be made to the license?

 

No. A change in a business organizational structure would require a new application.

 

 


Komorn Law has represented numerous clients through the legal chaos of starting up a business in the Michigan Medical Marihuana Industry.

Contact Us For More Information.

800-656-3557

LARA-MMFLA-Michigan communities that have opted in to the MMFLA

LARA-MMFLA-What will the costs be for a license

What will the costs be for a license?

 

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))
LARA-MMFLA-Michigan communities that have opted in to the MMFLA

LARA-MMFLA-Where can I find more information on each type of license

Where can I find more information on each type of license?

 

Details on each license category can be found in Part 5 of the Michigan Medical Marihuana Facilities Licensing Act, 2016 PA 281. Here:

Grower license: Section 333.27501

Processor license: Section 333.27502

Secure transporter license: Section 333.27503

Provisioning center license: Section 333.27504

Safety compliance facility license: Section 333.27505