Marijuana Regulatory Agency Announces Elimination of Caregiver Product

Marijuana Regulatory Agency Announces Elimination of Caregiver Product

March 2, 2020 – Today, the Marijuana Regulatory Agency (MRA) announced a phase-out process for the transfer of marijuana and marijuana products into the regulated market from caregivers. The phase-out process begins immediately and ends on September 30, 2020 with a final termination of all external marijuana transfers.

During the ongoing transition to a regulated market, the MRA has been committed to maintaining patient access to medical marijuana by allowing certain licensed facilities to continue to source product from caregivers without it resulting in disciplinary action against their licenses. Now, nearly 200 grower licenses and more than 25 processor licenses have been issued in the medical marijuana market. As more licenses have been issued and more plants grown and processed, the marijuana product produced by licensed facilities has resulted in an increase in the supply of medical marijuana to patients.

“We have always put patients first when we make decisions regarding medical marijuana,” said MRA Executive Director Andrew Brisbo. “This phase out process is an important next step in implementing the will of Michigan voters and making sure that patients continue to have access to their medicine.”

Licensed businesses will have nearly seven months to make the necessary plans to continue to maintain a sufficient supply of medical marijuana in Michigan. During this time, the MRA will work closely with licensees to build relationships and provide outreach and assistance during this transition period.

Phase One – Growers and Processors

The MRA gave notice in December, that – beginning on March 1, 2020 – growers and processors who obtain marijuana plants, concentrates, vape cartridges, or infused products from caregivers would be subject to disciplinary action.

Phase One of the phase-out process begins immediately and runs through May 31, 2020. During phase one, growers and processors licensed under the MMFLA who obtain marijuana flower – defined as bud, shake, and trim only – directly from a caregiver who produced the flower will not be subject to disciplinary action by the MRA under certain conditions.

Phase Two – Growers

Phase two begins on June 1, 2020 and ends on September 30, 2020. During phase two, growers licensed under the MMFLA who obtain marijuana flower – defined as bud, shake, and trim only – directly from a caregiver who produced the flower will not be subject to disciplinary action by the MRA under certain conditions.

During phase two, the total weight of marijuana flower that growers obtain from caregivers must be less than or equal to the total weight of marijuana flower that the licensee harvested (both wet and dry) between March 1, 2020 and May 31, 2020 plus the projected harvest weight (dry) of all plants that are in the flowering process on May 31, 2020.

Phase Two – Processors

Phase two begins on June 1, 2020 and ends on September 30, 2020. During phase two, processors licensed under the MMFLA who obtain marijuana flower – defined as bud, shake, and trim only – directly from a caregiver who produced the flower will not be subject to disciplinary action by the MRA under certain conditions.

During phase two, the total weight of marijuana flower that processors obtain from caregivers must be less than or equal to 50% of the total weight of marijuana flower the licensee obtained from caregivers between the dates of March 1, 2020 and May 31, 2020. The marijuana flower obtained from caregivers must be processed and may not be sold or transferred as marijuana flower.

End of Phase Out Process

The phase out process for caregiver product ends on September 30, 2020. A licensee who accepts an external transfer after September 30, 2020 will be subject to disciplinary action by the MRA.

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Marijuana Regulatory Agency Releases Licensing for Adult-Use Applications

Marijuana Regulatory Agency Releases Licensing for Adult-Use Applications

The Marijuana Regulatory Agency (MRA) released the application process for adult-use recreational marijuana business licenses. The MRA will begin accepting adult-use marijuana applications on November 1, 2019.

  • An overview of the licensing process
  • Step one and step two applications for new applicants and existing medical marijuana facility licensees
  • Detailed step-by-step instructions for the online applications
  • Instructions for new applicants and existing marijuana facility licensees for each license type
  • Application checklists
  • Detailed paper instruction booklet including step-by-step instructions for paper applications

While the MRA will accept paper applications, it is highly recommended that applicants use the online application, which has been specifically designed to ensure the efficient receipt of all necessary applicant information. Online applications will automatically be moved quickly into the processing system.

Two-Step Application Process

On November 1, 2019, the MRA will begin accepting applications for marijuana licensing under the Michigan Regulation and Taxation of Marihuana Act (MRTMA) which was passed by the voters of the state of Michigan in November 2018:

The MRA will be utilizing a two-step application process:

  1. Prequalification
  2. Establishment Licensing

Thinking of Starting a Cannabis or Hemp Business?

If you are thinking about starting a business in this industry you will need legal guidance and corporate counsel.  Contact our office or call Komorn Law at (248) 357-2550 to find out more information.

Step One – Prequalification

The main applicant and all supplemental applicants must submit step one applications for prequalification for review by the MRA. During this step, background checks are completed on the main applicant and all supplemental applicants.

There is a $6,000 nonrefundable application fee for the main applicant, which is the entity or the individual seeking to hold the state license. The main applicant is required to submit a step one prequalification application.

Supplemental applicants can be entities or individuals. The definition of who is considered a supplemental applicant varies, depending on business structure. Every supplemental applicant is required to submit a step one prequalification application but only the main applicant needs to submit an application fee.

It is important that the main applicant does not submit payment until all supplemental applications have been submitted. If payment is received before all supplemental applications are submitted, a notice of deficiency will be sent stating that the main applicant has five days to submit all supplemental applications or the application may be denied. The Marijuana Regulatory Agency will begin to process prequalification applications once the $6,000 prequalification application payment is received.

Step Two – Establishment Licensing

After the main applicant and all supplemental applicants have successfully achieved step one prequalification, the main applicant can submit step two licensing applications for the license type(s) it seeks to hold.

During step two licensing, the MRA will vet the proposed marijuana establishment, including, but not limited to:

  • Business specifications
  • Proof of financial responsibility
  • Municipality information
  • General employee information

The physical marijuana establishment must pass an MRA inspection within 60 days of submission of a complete application.

Applicants who are seeking licensure as a grower, processor, or a microbusiness must pass a Bureau of Fire Services (BFS) plan review. Additionally, all MRTMA marijuana applicants – except temporary marijuana events and marijuana event organizers – must pass a BFS inspection within 60 days of submission of a complete application. 

Due to the level of detail involved in the step one and step two adult-use application processes – as well as the time sensitive nature of the process – the MRA strongly recommends achieving step one prequalification before submitting a step two application. 

Final Approval 

An applicant cannot be issued a state license until all requirements in the MRTMA and administrative rules are met. After establishment licensing (step two) is completed, an applicant will be required to pay an initial licensure fee for each license. Once the initial licensure fee is received, the license(s) will be issued.

There are 17 potential reasons for license denial outlined in Rule 14 of the Adult-Use emergency rules, including the following:

  • The applicant failed to correct a deficiency within five days of notification by the MRA in accordance with Rule 8 (application requirements; complete application)
  • The applicant failed to receive a passing prelicensure inspection within 60 days of a complete application being submitted to the agency
  • The applicant has submitted an application containing false information
  • The applicant or anyone who will have ownership in the marijuana establishment has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marijuana establishment is unlikely to be operated with honesty and integrity
  • The applicant or anyone who will have ownership in the marijuana establishment has a conviction involving distribution of a controlled substance to a minor

License Types

To be eligible for the following license types, the main applicant does not need to possess a medical marijuana state operating license:

  • Class A Marijuana Grower
  • Marijuana Microbusiness
  • Designated Consumption Establishment
  • Marijuana Safety Compliance Facility
  • Marijuana Event Organizer
  • Temporary Marijuana Event

To be eligible for the following license types, the main applicant must possess a medical marijuana state operating license:

  • Class B Marijuana Grower
  • Class C Marijuana Grower
  • Excess Marijuana Grower
  • Marijuana Processor
  • Marijuana Retailer
  • Marijuana Secure Transporter 

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Social Equity (Adult-Use Marijuana)

Social Equity (Adult-Use Marijuana)

The Social Equity Program is available as a provision under MRTMA to promote and encourage participation in the marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement and to positively impact those communities.

Michigan Communities That Meet Criteria For The Social Equity Program

  • Albion
  • Benton Harbor
  • Detroit
  • East Lansing
  • Ecorse
  • Flint
  • Highland Park
  • Hamtramck
  • Inkster
  • Kalamazoo
  • Mt. Morris
  • Mt. Pleasant
  • Muskegon
  • Muskegon Heights
  • Niles
  • Pontiac
  • River Rouge
  • Saginaw
  • Ypsilanti

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Michigan Released Emergency Recreational Marijuana Rules For Establishments

Michigan Released Emergency Recreational Marijuana Rules For Establishments

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The release of the rules is intended to give local governments time to decide whether they want to ban adult-use marijuana businesses before the state Marijuana Regulatory Agency begins accepting business license applications. The emergency rules expire in six months.

“It provides clarity on the state’s approach on establishing the regulatory program and doing so in a way that is consistent as possible with the standards in the medical market that exist now, and doing so in a way that provides adequate time for municipalities to evaluate what we put in the rules and to make a determination on how the municipality wants to approach this new market before we start taking applications,” said agency Director Andrew Brisbo

Read the more here at MLive

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The rules outline how the new adult-use market will function and how the business license application process will work. It is also how the recreational and medical marijuana industries will interact.

The release of the rules is intended to give local governments time to decide whether they want to ban adult-use marijuana businesses before the state Marijuana Regulatory Agency begins accepting business license applications. The emergency rules expire in six months.

“It provides clarity on the state’s approach on establishing the regulatory program and doing so in a way that is consistent as possible with the standards in the medical market that exist now, and doing so in a way that provides adequate time for municipalities to evaluate what we put in the rules and to make a determination on how the municipality wants to approach this new market before we start taking applications,” said agency Director Andrew Brisbo

Read the more here at MLive

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Recreational marijuana smoking lounges, festivals and home delivery are soon to be allowed in Michigan. They are defined under a set of emergency rules state officials released.

These rules have defined the launch of the recreational cannabis market in Michigan. The release was signed Tuesday by Governor Gretchen Whitmer.

The rules outline how the new adult-use market will function and how the business license application process will work. It is also how the recreational and medical marijuana industries will interact.

The release of the rules is intended to give local governments time to decide whether they want to ban adult-use marijuana businesses before the state Marijuana Regulatory Agency begins accepting business license applications. The emergency rules expire in six months.

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The Marijuana Regulatory Agency (MRA) holds its first public meeting

The Marijuana Regulatory Agency (MRA) holds its first public meeting

The Marijuana Regulatory Agency (MRA) held its first public meeting on Thursday, June 13, 2019.  The meeting took place at the Williams Building, 525 West Ottawa Street, Lansing, Michigan in the First Floor Auditorium at 9:30 A.M.

The MRA is required to hold at least four public meetings each calendar year for the purpose of hearing complaints and receiving the views of the public regarding the administration of the authorities, powers, duties, functions, and responsibilities vested in the Agency.

The MRA intends to livestream the meeting on the Department of Licensing and Regulatory Affairs’ Facebook page for those who are unable to attend in person.

Andrew Brisbo speaks to a medical marijuana patient at the MRA meeting

Andrew Brisbo speaks to a medical marijuana patient at the Marijuana Regulatory Agency meeting

The purpose of this public hearing is to receive public comment on the MRA’s administration of the following statutes:

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