Michigan Expands The Social Equity Program

Michigan Expands The Social Equity Program

Jun 23, 2020 | Blog

May 19, 2020 – The Marijuana Regulatory Agency (MRA) announced today an expansion of the eligibility criteria to its social equity program, as well as increased benefits, further reduced fees, and enhanced eligibility for certain applicants. Beginning June 1, 2020, this expansion will increase the number of disproportionately impacted communities from 41 to 184 and will make it easier for individuals from those communities to qualify to participate in the program.

Expanded Communities

Section 8 of the Michigan Regulation and Taxation of Marijuana Act (MRTMA) requires the Marijuana Regulatory Agency (MRA) to develop a plan 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.

From the results of last year’s survey and workgroups, the MRA developed a Social Equity Program that identifies communities as eligible using two criteria: marijuana-related convictions and poverty rate.

Currently, communities which have marijuana-related convictions greater than the state median and have 30% or more of the population living below the federal poverty level are identified as disproportionately impacted communities. On June 1, 2020, communities with 20% or more of the population living below the federal poverty level will now qualify. This expansion will result in 184 disproportionately impacted communities. The complete list is available at the end of this document.

Fee Reduction: Eligibility Changes and Expansion

Effective June 1, 2020, applicants will no longer be required to live in a disproportionately impacted community to be eligible for a marijuana-related conviction fee reduction or a caregiver fee reduction. In addition, a 40% fee reduction has been added for applicants who have been convicted of a marijuana-related felony. Below are available fee reductions, effective June 1, 2020:
___________________________________________________________

Residency – 25% fee reduction for residency in a disproportionately impacted community for at least 5 cumulative years of the last 10 years.

Marijuana-Related Conviction – 25% fee reduction for having been convicted of a marijuana-related misdemeanor**
OR
40% fee reduction or having been convicted of a marijuana-related felony**

**Excluding distribution of a controlled substance to a minor

Caregiver – 10% fee reduction for registration as a primary caregiver under the Michigan Medical Marijuana Act for at least 2 years between 2008-2017
_______________________________________________________________

Effective June 1, 2020, applicants/licensees who qualify for the maximum fee reduction will now receive a 75% reduction in their application and annual licensing fees. An applicant can meet any of the above criteria and be eligible for the associated fee reduction, regardless of where they reside in Michigan.

Currently, fee reductions last indefinitely so long as the applicant/licensee remains eligible for the fee reductions and operates within a disproportionately impacted community. Beginning June 1, 2020, applicants/licenses may now operate outside of a disproportionately impacted community; if they choose to do so, the fee reductions will expire after the first two years of operation.

Application Assistance, Resources, Employment, and Training

The MRA’s social equity representatives will continue to assist individuals with completing the social equity application, which will allow the MRA to determine if the individual qualifies for participation in the program.

At this time, the social equity team will be providing remote application assistance to qualifying applicants applying for adult-use licenses. This will be available on a one-on-one basis as plans are made for a safe return to in-person sessions.

Later this year the MRA will host a job fair.  We are preparing to post job listings on our website and connect qualifying applicants with training resources that will help them develop the skills necessary for employment in the marijuana industry. 

List of Communities by County

Allegan: Fennville, Lee Township

Arenac: Alger, Sterling

Barry: Nashville

Bay: Bay City, Midland, Pinconning

Berrien: Benton Harbor, Berrien Spring, Coloma, Eau Claire, Niles, Oronoko Township, Sodus Township, Watervliet                                                                   

Branch: Bronson, Butler Township, Coldwater, Gilead Township, Quincy, Sherwood, Sherwood Township, Union City

Calhoun: Albion, Battle Creek, Springfield, Tekonsha, Tekonsha Township, Union City

Cass: Cassopolis, Dowagiac, Edwardsburg, Lagrange Township, Marcellus, Vandalia

Eaton: Charlotte, Vermontville

Emmet: McKinley Township, Wawatam Township

Genesee: Clio, Flint, Flint Township, Mt. Morris, Mt. Morris Township

Gratiot: Alma, Bethany Township, Breckenridge, Fulton Township, Perrinton, Seville Township, Wheeler Township

Hillsdale: Montgomery

Ingham: East Lansing, Lansing

Ionia: Ionia, Muir, Orleans Township, Ronald Township

Isabella: Coldwater Township, Fremont Township, Mt. Pleasant, Shepherd

Jackson: Hanover, Jackson, Springport

Kalamazoo: Galesburg, Kalamazoo

Kent: Cedar Springs, Grand Rapids

Lapeer: Clifford, Columbiaville, Imlay City, Lapeer

Lenawee: Adrian, Morenci

Macomb: Center Line, Mt. Clemens

Mecosta: Aetna Township, Barryton, Big Rapids, Deerfield Township, Fork Township, Mecosta, Millbrook Township, Morley, Sheridan Township, Stanwood, Wheatland Township

Monroe: Luna Pier

Montcalm: Carson City, Crystal Township, Edmore, Greenville, Home Township, Howard City, Lakeview, McBride, Pierson, Stanton

Muskegon: Holton Township, Muskegon, Muskegon Heights, Twin Lake

Newaygo: Beaver Township, Big Prairie Township, Bridgeton Township, Denver Township, Fremont, Grant, Hesperia, Lilley Township, Merrill Township, Newaygo, Troy Township, White Cloud, Wilcox Township

Oakland: Hazel Park, Pontiac, Royal Oak Township

Ogemaw: Horton Township, Prescott, Richland Township, Rose City, West Branch

Ottawa: Allendale Township

Roscommon: Higgins Township, Richfield Township, Roscommon, Roscommon Township, St. Helen

Saginaw: Bridgeport Township, Carrollton Township, Chapin Township, Chesaning, Kochville Township, Marion Township, Saginaw, Spaulding Township

Shiawassee: Owosso

St. Clair: Port Huron

St. Joseph: Sturgis, Sturgis Township, Three Rivers, White Pigeon Township

Tuscola: Akron, Caro, Dayton Township, Gagetown, Gilford Township, Kingston, Koylton Township, Mayville, Vassar, Vassar Township

Van Buren: Arlington Township, Bangor Township, Bloomingdale, Breedsville, Columbia Township, Covert Township, Decatur, Decatur Township, Hartford, Keeler Township, Lawrence, Mattawan, Paw  Paw, South Haven

Washtenaw: Ann Arbor, Ypsilanti

Wayne: Dearborn, Detroit, Ecorse, Hamtramck, Highland Park, Inkster, Melvindale, River Rouge, Wayne

Wexford: Antioch Township, Cadillac, Colfax Township, Mesick, Slagle Township

Source: https://www.michigan.gov/som/0,4669,7-192-47796-529549–,00.html

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Marijuana Regulatory Agency Announces Elimination of Caregiver Product

Marijuana Regulatory Agency Announces Elimination of Caregiver Product

Mar 4, 2020 | Uncategorized

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

Oct 4, 2019 | Blog, News

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)

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Jul 18, 2019 | Blog

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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