FAQ2018-11-21T20:51:42+00:00

FAQ

What insurance options do I have?2018-09-04T18:34:25+00:00

We have insurance products that range from general liability, product liability, building coverage, property coverage, finished stock, crop coverage, equipment breakdown, workers compensation, excess liability, commercial auto, cyber, and more!

What states can you write insurance in?2018-09-04T18:33:17+00:00

We can write insurance in all states.

Apply for coverage now.

What insurance is required by most states?2018-09-04T18:32:48+00:00

We are based in Michigan and the state requires general liability and product liability in the amount of $100,000 each. We are seeing that most states require the same types of policies – general liability and product liability, but limits required differ.

Will the city I am operating in require different types of insurance?2018-09-04T18:32:08+00:00

We are seeing that many of the cities and townships in Michigan are requiring higher limits of liability (often times $1,000,000 per occurrence/$2,000,000 aggregate). Others are following what is mandated by the state. It’s important to check with your own municipality to verify their requirements.

What insurance do you think is the most important to carry?2018-09-04T18:31:38+00:00

While we feel that every business is different, we feel the largest exposure in this industry could end up being product liability.

My city requires a bond. Can you help?2018-09-04T18:31:07+00:00

Absolutely! We have bonds available for marijuana clients.

Apply for a bond on our site to get started.

Learn more about how to apply for a marijuana surety bond right now.

What happens if I have a fire? Can the loss of my income be covered?2018-09-04T18:30:40+00:00

Yes – this can be covered on your policy.

You can insure my crops?2018-09-04T18:30:11+00:00

You bet! As long as the crop is an indoor or greenhouse grow, we can absolutely insure them!

I am a safety compliance facility. What kind of insurance do I need?2018-09-04T18:29:45+00:00

Safety compliance labs are held to the same requirements as other businesses. A professional liability policy will also be imperative to carry.

I transport cannabis products and money. Can I insure my cargo while in transit?2018-09-04T18:29:20+00:00

Yes, we can insure cargo in transit!

What happens if there is a data breach?2018-09-04T18:28:46+00:00

We have cyber coverage available to our clients.

Contact us to get started!

I operate my business under one entity but own the building under a separate entity. Can I insure everything on one policy?2018-09-04T18:28:12+00:00

No – the business would need a policy and the entity that owns the building would need a lessor’s risk policy to insure the building and general liability.

I don’t own any commercial vehicles so what happens if I send my employee to pick up lunch and they are in an accident?2018-09-04T18:27:26+00:00

We have coverage for hired and non-owned automobiles.

I am hiring employees. What kind of coverage do I need for them?2018-09-04T18:26:51+00:00

Workers compensation. We have competitive priced workers compensation carriers available.

Apply for Workers Compensation Coverage on our site to get started.

Okay – I’m sold! How do I get a quote?2018-09-04T18:26:03+00:00

We are happy you want to work with our agency.

You can apply online now!

Why do Michigan laws spell marijuana with an “h” instead of a “j”?2018-11-20T17:39:39+00:00

There are several reasons Michigan law spells marijuana with an “h” instead of a “j”.  While many in the industry refer to the botanical plant—cannabis, the spelling with a “j” is more common today.  But you will still see Michigan law using the “h” spelling.

The spelling of marihuana has a long history in the United States. Michigan’s history primarily starts from the spelling that was chosen for the Marihuana Tax Act of 1937. Michigan adopted its statutory definition of marijuana in the Public Health Code utilizing what was the current federal spelling (marihuana) at the time.

Because governing state laws spell marijuana with an “h,” the administrative rules in relation to marijuana laws and communication from the BMMR will use the spelling of Marihuana. An act of the Michigan Legislature would be required in order to change the spelling in the Michigan statutes, such as the Public Health Code or the newer marijuana laws.

What is a qualifying medical condition for a Michigan medical marijuana card?2018-11-20T18:15:33+00:00

A qualifying medical condition for a Michigan medical marijuana card includes but may not be limited to:

  • Cancer
  • Glaucoma
  • Positive status for human immunodeficiency virus
  • Acquired immune deficiency syndrome
  • Hepatitis C
  • Amyotrophic lateral sclerosis
  • Crohn’s disease
  • Agitation of Alzheimer’s disease
  • Nail-patella
  • Cachexia or wasting syndrome
  • Severe and chronic pain
  • Severe nausea
  • Seizures (including but not limited to that characteristic of epilepsy)
  • Severe and persistent muscle spasms, including but not limited to that characteristic of multiple sclerosis.
  • Any other medical condition or its treatment approved by the department, as provided for in section 6(k).

See section 3 of the MMMA for more information on medical conditions that qualify a person for the medical use of marijuana.

Does the address on my medical marijuana card application have to match my Michigan photo ID?2018-11-20T18:22:35+00:00

No, the MMMP only requires that a patient provide a valid mailing address located in the state of Michigan.

Can I rescind a physician certification that I already completed for a patient?2018-09-04T18:23:47+00:00

A certifying physician may notify the MMMP in writing if a patient has ceased to suffer from a debilitating medical condition. Upon receipt of the written notice from the certifying physician, the MMMP will notify the patient within 20 business days that his or her registry identification card is no longer valid. For more information, see MCL 333.26426(f) and R 333.119 of the administrative rules located at www.michigan.gov/mmp.

Who can certify a patient’s medical use of marihuana?2018-09-04T18:23:05+00:00

Only a Medical Doctor (MD) or Doctor of Osteopathic Medicine and Surgery (DO) who holds a current license to practice in the state of Michigan can complete and sign the physician certification for a qualifying patient.

How do I notify the MMMP that my patient has passed away?2018-09-04T18:18:07+00:00

Either you or your patient’s family must submit a true copy of your patient’s death certificate to the MMMP. They will then change the status of your deceased patient’s registry card to inactive.

The MMMP will then send you written notice that your caregiver registry card for this patient is no longer valid. Upon receipt of the written notice, you are required to destroy your caregiver registry identification card for this patient.

How can a caregiver withdraw from the program?2018-09-04T18:09:59+00:00

A caregiver must complete the Program Withdrawal Form. The form includes instructions and lists the supporting documentation the caregiver must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.  There is no fee to withdraw from the MMMP.

The MMMP will send the caregiver written notice that his or her registration status has been withdrawn. Upon receipt of the written notice, the caregiver is required to destroy his or her registry identification card. The MMMP will issue the caregiver’s patient(s) a new registry card without a designated caregiver.

How do I get a replacement registry identification card if mine is lost, stolen, or damaged?2018-09-04T18:09:00+00:00

You must complete and submit the Replace Lost or Stolen Card Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.

Replace Lost or Stolen Card Form fee is $10 (the $10 fee covers all replacement cards requested).

I have an active caregiver registry identification card(s) and I recently moved. How do I update my address on my registry card? How much is the fee?2018-09-04T18:08:24+00:00

You must complete the Change Name or Address Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.

It is your responsibility to notify your patient(s) that your address has changed. The MMMP will issue your patient(s) a new registry identification card with your updated address.

The fee for the Change Name or Address Form is $10 (the $10 fee covers all changes requested and all updated registry cards)

I have an active caregiver registry identification card and I recently was divorced/married and changed my name. How do I update my name on my registry card? How much is the fee?2018-09-04T18:16:47+00:00

You must complete the Change Name or Address Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.

It is your responsibility to notify your patient(s) that your name has changed. The MMMP will issue your patient(s) a new registry identification card with your updated name.

The fee for the Change Name or Address Form fee is $10 (the $10 fee covers all changes requested and all updated registry cards)

How can I remove a current patient? How much is the fee?2018-09-04T18:07:16+00:00

You must complete and submit the Remove Patient Form. The form includes instructions to complete the form and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.

The Michigan Medical Marihuana Program will send your patient written notice that you will no longer be his or her caregiver and issue him or her a new registry identification card without a designated caregiver.

The fee for the Remove Patient Form fee is $10 (if you are removing more than 1 patient, the $10 fee will cover all patients being removed)

When will my caregiver registry identification card expire?2018-09-04T18:06:41+00:00

Your caregiver registry identification card will expire on the same day as your patient’s registry identification card. Your expiration date is listed on your caregiver registry identification card.

Can I find out the status of my patient’s application if I contact the MMMP?2018-09-04T18:06:05+00:00

No. Due to the confidentiality requirements in the Michigan Medical Marihuana Act (MMMA), the state can only speak with the applicant/patient regarding the status of his or her application. The MMMA can be found on the MMMP website at www.michigan.gov/mmp.

Will I be notified if my patient removes me as his or her caregiver?2018-09-04T18:05:11+00:00

Yes. The MMMP will send you written notice that your registry identification card for that patient is no longer valid.  Upon receiving this notice, you are required to destroy your registry identification card for that patient.

Will I receive a registry identification card for each qualifying patient that designates me as his or her caregiver?2018-09-04T18:04:38+00:00

Yes. If both you and your patients meet the requirements of the Michigan Medical Marihuana Act, you will receive a separate registry identification card for each patient.

How much marihuana can I possess as a caregiver?2018-09-04T18:04:07+00:00

A primary caregiver who has been issued a registry identification card may possess cannabis in forms and amounts that do not exceed any of the following: For each qualifying patient to whom he or she is connected through the department’s registration process, a combined total of 2.5 ounces of usable cannabis and usable cannabis equivalents. For each registered qualifying patient who has specified that the primary caregiver will be allowed under state law to cultivate cannabis for the qualifying patient, 12 cannabis plants kept in an enclosed, locked facility. The primary caregiver is allowed any incidental amount of seeds, stalks, and unusable roots.

The following is considered by the state to be equivalent to 1 ounce of usable cannabis:

(1) 16 ounces of marihuana-infused product if in a solid form.

(2) 7 grams of marihuana-infused product if in a gaseous form.

(3) 36 fluid ounces of marihuana-infused product if in a liquid form.

For more information, see MCL 333.26424(b) and (c). The Michigan Medical Marihuana Act can be found on the MMMP website at www.michigan.gov/mmp.

How do I become a caregiver?2018-09-04T18:03:25+00:00

You must meet the requirements in the statutory definition of “caregiver” in MCL 333.26423(h). The Michigan Medical Marihuana Act (MMMA) can be found on the MMMP website at www.michigan.gov/mmp. Additionally, a patient must submit one of the following to designate you as their caregiver: A complete Application Packet (if the patient is within 60 days of his or her registry card expiring OR the person is not a current patient with an active registry card), a complete Add or Change Caregiver Form (if the patient already has an active registry card). Your $25 processing fee must be submitted with the patient’s Application Packet or Add or Change Caregiver Form (the patient must also submit a $10 fee – total fee is $35). Your valid state-issued driver license or personal identification card must also be submitted with the patient’s Application Packet or Add or Change Caregiver Form.  Note: We will not accept an expired driver license or personal identification card.

How do I notify the MMMP that my primary caregiver has passed away?2018-09-04T18:02:53+00:00

Either you or your caregiver’s family must submit a true copy of your caregiver’s death certificate. The state will then change the status of your deceased caregiver’s registry card to inactive.

The MMMP will issue you a new registry identification card without a designated caregiver.

When do I renew my registry identification card?2018-09-04T17:58:45+00:00

You may submit your renewal application beginning 60 days prior to the expiration date on your patient registry identification card.

Do I have to provide proof of my Michigan residency when I renew my registry identification card?2018-09-04T17:57:41+00:00

Yes. You must submit one of the following: A copy of your valid Michigan driver license, or a copy of your valid Michigan personal identification card, or a copy of your valid Michigan voter registration. Note: We will not accept an expired driver license or personal identification card. Note: If you submit a voter registration, you must also submit proof of identity for verification purposes. Proof of identity can be any government-issued document that shows both your name and date of birth.

How do I renew my registry identification card?2018-09-04T17:57:09+00:00

The process is the same as when you initially applied for a registry identification card. The MMMP Application Packet can be found on the MMMP website at www.michigan.gov/mmp.

How can a patient withdraw from the program?2018-09-04T17:56:35+00:00

You must complete the Withdrawal Form. The form includes instructions and lists the supporting documentation that must be submitted with the form. The form can be found on the MMMP website at www.michigan.gov/mmp. There is no fee to withdraw from the MMMP.

The MMMP will send written notice that a patient’s registration status has been withdrawn. Upon receipt of the written notice, the patient is required to destroy the registry identification card. If the patient has a caregiver, the MMMP sends the caregiver written notice that his or her caregiver registry identification card is no longer valid.

How do I get a replacement registry identification card if mine is lost, stolen, or damaged?2018-09-04T17:55:23+00:00

You must complete and submit the Request Replacement Card(s) Form. The form includes instructions and lists the supporting documentation that must be submitted with the form. The form can be found on the MMMP website at www.michigan.gov/mmp.

The fee for the Replace Lost or Stolen Card Form is $10 (the $10 fee covers all replacement cards requested).

I have an active patient registry identification card and I recently moved. How do I update my address on my registry card? How much is the fee?2018-09-04T17:54:24+00:00

If you are prior to your renewal period (more than 60 days before your card is due to expire), you must complete the Change Name or Address Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp. The fee for the Change Name or Address Form is $10 (the $10 fee covers all changes requested and all updated registry cards). If you are within your renewal period (less than 60 days before your card is due to expire), submit an application with the required supporting documents and your new address. The MMMP Application Packet can be found on the MMMP website at www.michigan.gov/mmp. The patient fee for renewal is $60. If designating a caregiver, include an additional $25 caregiver fee.

I have an active patient registry identification card and I recently divorced/married/changed my name. How do I update my name on my registry card? How much is the fee?2018-09-04T17:53:43+00:00

Prior to your renewal period (more than 60 days before your card is due to expire), you must complete the Change Name or Address Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp. The fee for the Change Name or Address Form is $10 (the $10 fee covers all changes requested and all updated registry cards). If you are within your renewal period (less than 60 days before your card is due to expire), submit an application with the required supporting documents and documentation of your legal name change. The MMMP Application Packet can be found on the MMMP website at www.michigan.gov/mmp. The patient fee for renewal is $60. If designating a caregiver, include an additional $25 caregiver fee.

I have an active patient registry identification card. How do I add a caregiver or change to a different caregiver? How much is the fee?2018-09-04T17:52:49+00:00

Prior to your renewal period (more than 60 days before your card is due to expire), you must complete the Add or Change Caregiver Form. The form includes instructions and lists the supporting documentation you must submit with the form. The form can be found on the MMMP website at www.michigan.gov/mmp. The Add or Change Caregiver Form fee is $35. If you are within your renewal period (less than 60 days before your card is due to expire), you must complete your renewal application and provide the required caregiver information and supporting documents. Your new card will reflect the changes you request in your application. Renewals and new applications are submitted using the same form. The MMMP Application Packet can be found on the MMMP website at www.michigan.gov/mmp. The patient application fee is $60. If designating a caregiver, include an additional $25 caregiver fee.

How do I remove my current caregiver? I want to grow and possess my own plants. How much is the fee?2018-09-04T17:51:47+00:00

You must complete and submit the Remove Caregiver Form. The form will include instructions to complete the form and lists the supporting documentation you must submit with the form. This form should only be used if you are not designating another person as your new caregiver and plan to grow and possess your own plants. The form can be found on the MMMP website at www.michigan.gov/mmp. The Michigan Medical Marihuana Program will send the caregiver written notice that he or she will no longer be your caregiver and will issue you a new registry identification card without a designated caregiver. The fee for the Remove Caregiver Form is $10.

When does a patient registry identification card expire?2018-09-04T17:51:17+00:00

A patient registry identification card expires on the first day of the month two (2) years after the date the card is issued. The expiration date is listed on the patient registry identification card.

Do I have to designate a primary caregiver?2018-09-04T17:50:16+00:00

If you are 18 years of age or older, you are not required to designate a caregiver. However, the state requires that the parent or legal guardian of a minor patient act as the minor patient’s caregiver according to MCL 333.26426(b). More information can be found in the Michigan Medical Marihuana Act on the MMMP website at www.michigan.gov/mmp.

Can someone else sign and date the application if the applicant is mentally or physically incapacitated?2018-09-04T17:49:19+00:00

Yes. A court-appointed legal guardian or Medical Durable Power of Attorney (MDPOA) with the authority to sign documents and make medical decisions can apply on behalf of the applicant. The legal guardian or MDPOA must submit legal documentation verifying that he or she is the legal guardian or MDPOA for the applicant. The documentation must clearly state the legal guardian or MDPOA has the authority to sign documents and make medical decisions for the applicant. If the MDPOA takes effect based on specific conditions, the individual designated as the MDPOA must submit proof that those conditions have been met. For example, if an MDPOA takes effect when a physician(s) determines the applicant is incapable of making his or her own decisions, the individual designated as the MDPOA must submit proof that a physician(s) has made that determination.

Is there a separate fee for the caregiver?2018-09-04T17:48:49+00:00

Yes. If a patient designates a caregiver, administrative rule R 333.111(2) requires that the caregiver pay a $25 processing fee. The administrative rules for the Michigan Medical Marihuana Program can be found on the MMMP website at www.michigan.gov/mmp.

I just mailed my Application Packet, but I forgot to include something important (application fee, proof of Michigan residency, physician certification). Can I send it in now?2018-09-04T17:48:15+00:00

No. You will receive a written response from the MMMP office that tells you how to resubmit your Application Packet with the required fees and supporting documents. Application Packets that are submitted without the required fee(s) and all required supporting documents are considered incomplete and must be denied following R 333.113(4) of the administrative rules. The administrative rules for the Michigan Medical Marihuana Program can be found on the MMMP website at www.michigan.gov/mmp.

Do I need to keep a copy of the documents (application form, physician certification form, or required supporting documents) I send to the MMMP?2018-09-04T17:47:39+00:00

Yes. It is strongly recommend that you retain copies of any documents you submit to the MMMP.

How long does it take to receive a registry identification card?2018-09-04T17:45:24+00:00

The state requires that the Michigan Medical Marihuana Program (MMMP) approve or deny an application within 15 business days of the date the application is received by the MMMP. MCL 333.26426(e) and administrative rule 333.113(4) require the MMMP to either issue a registry identification card or a denial letter within five (5) business days of the date the application is approved or denied. Therefore, the MMMP has up to 20 business days from the date an application is received to issue a registry identification card or denial letter. “Issue” means that the MMMP has printed and mailed the registry card or denial letter. The MMMA and the administrative rules for the MMMP can be found on the MMMP website at www.michigan.gov/mmp. Applicants should allow the United States Postal Service adequate time to deliver their registry identification card or denial letter. If you submitted your application more than 5 weeks ago and have not received your registry card or a denial letter, please contact the MMMP at 517-284-6400.

How do I register as a patient (over age 18) with the Michigan Medical Marihuana Program (MMMP)?2018-09-04T17:44:05+00:00

You must submit, in one envelope, a complete MMMP Application Packet, which can be found on the MMMP website at www.michigan.gov/mmp. The packet includes a complete Application Form, a complete Physician Certification Form, proof of Michigan residency, which means one of the following: (1) A copy of your valid Michigan driver license, or (2) A copy of your valid Michigan personal identification card, or (3) A copy of your valid Michigan voter registration. Note: We will not accept an expired driver license or personal identification card. Note:  If you submit a voter registration as proof of Michigan residency, you must submit proof of your identity. Proof of identity can be any government-issued document that includes your name and date of birth. The required patient application fee (check or money order made payable to: State of Michigan- MMMP) is $60. If designating a caregiver, include an additional $25 caregiver fee. Also if you are designating a caregiver, proof of the caregiver’s identity, which means one of the following: (1) A copy of the caregiver’s valid state-issued driver license, or (2) A copy of the caregiver’s valid state-issued personal identification card. Additionally include any other documents that are required per the instructions on the Application Form (see instructions on Application regarding legal guardianship and Medical Durable Power of Attorney).

Should I go to a third-party business to get or renew my medical marijuana card? Can my application and physician certification serve as a temporary registration card?2018-11-23T21:47:51+00:00

You can get a medical marijuana card through the Michigan Medical Marihuana Program (MMMP).  This is the state registry program that administers the Michigan Medical Marihuana Act (MMMA) of 2008.  The MMMP is a division within the Bureau of Medical Marihuana Regulation (BMMR).

Many applicants receive inaccurate information regarding the application process.  This results in their applications being delayed or denied. A business telling you that your application and physician certification serves as a temporary medical marijuana card is putting you at risk of arrest. According to the MMMA, a patient or caregiver must present their valid medical marijuana card and a valid state-issued photo ID to law enforcement to be protected from arrest. The BMMR recommends that applicants wait until they receive their card before engaging in the medical use of marijuana.

Patients or caregivers submitting an application or change form to the MMMP will need to read and follow the instructions for completing the form.  You should also include all required supporting documents listed in the instructions. If you are unsure about the instructions, you should call the MMMP before mailing the documents. It is important to only submit one application and its supporting documentation per envelope.

If you were denied and are reapplying, it is important to read and follow the instructions in the denial letter.  If you are unsure about the instructions, call the MMMP before mailing the documents. Date the new application on the date you sign it – do not backdate or use the same date on the application that was denied.

The MMMP does not recommend allowing other individuals or third parties to submit your applications or any other documents to the MMMP.  This makes you unable to determine when or if your application was submitted. The MMMP also does not recommend allowing other individuals or third parties to retain copies of your documents, state-issued ID, or any other personal documents.  This increases the possibility of fraudulent submissions.

Paper applications are available on the MMMP website. Those submitting an application or request for changes to his or her registration should only download forms from the MMMP’s website.  These documents are subject to change and the MMMP will always provide the most up-to-date forms.  New as of October 2018, you can now submit your application electronically through the website as well.  Submitting your application or renewing your card online still requires physician certification.  Check with your certifying physician to confirm that he or she has an online account before applying.

If you have additional questions regarding the MMMP’s application and registration process, their website can be found here.  You can also email LARA-BMMR-MMMPINFO@michigan.gov, or call 517-284-6400.

Do I have to be a resident of the state of Michigan to obtain a patient registry identification card?2018-09-04T17:41:11+00:00

Yes. The state requires that you submit a copy of one of the following as proof of Michigan residency: A copy of your valid Michigan driver license, or a copy of your valid Michigan personal identification card, or a copy of your valid Michigan voter registration. Note: If you submit a voter registration as proof of Michigan residency, you must submit proof of your identity for verification purposes. Proof of identity can be any government-issued document that includes your name and date of birth. Note: We will not accept an expired driver license or personal identification card. The MMMA can be found on the MMMP website at www.michigan.gov/mmp.

How do I register a minor (under the age of 18) with the Michigan Medical Marihuana Program (MMMP)?2018-09-04T17:36:33+00:00

The parent or legal guardian of a minor patient (under 18 years old) must submit, in one envelope, a complete MMMP Minor Application Packet, which can be found on our website at www.michigan.gov/mmp. This packet needs to include a complete Application Form, two (2) complete Physician Certification Forms signed by two (2) different physicians, a complete Declaration of Person Responsible Form, proof of parentage or legal guardianship (a copy of minor’s government-issued birth certificate), proof of Michigan residency for the minor’s parent or legal guardian, which means one of the following: (1) a copy of the parent or legal guardian’s valid Michigan driver license, or (2) a copy of the parent or legal guardian’s valid Michigan personal identification card, or (3) a copy of the parent or legal guardian’s valid Michigan voter registration. Note: If you submit a voter registration as proof of Michigan residency, you must submit proof of your identity for verification purposes. Proof of identity can be any government-issued document that includes your name and date of birth. Note: We will not accept an expired driver license or personal identification card. The required application fee is $85 (check or money order made payable to: State of Michigan- MMMP).

How much is the application fee?2018-09-04T17:40:13+00:00

The patient fee is $60. If designating a caregiver, include an additional $25 caregiver fee. The application fee should be a check or money order made payable to: State of Michigan- MMMP.

Do I have to be licensed to get a referral fee?2018-09-04T16:44:39+00:00

State law restricts what referral fees we can pay in each industry, and the real estate and insurance sectors are particularly strict. Contact us directly to discuss how we can work together in your state.

When do referrals get paid?2018-09-04T16:43:57+00:00

All referrals are issued within 7 days of the us receiving payment. With cannabis real estate transactions, payments are typically received on the day of closing, while marijuana insurance carriers can vary between 45 and 60 days from the effective date of a policy. Unlike some companies, we don’t make you wait an additional 30 days for payment.

I plan on seeking multiple licenses from LARA, do I have to pay the $6000 application fee for each license?2018-11-19T19:44:12+00:00

Applicants will need to pay the $6000 application fee for each separate prequalification submitted to the BMMR for review. Applicants will not need to pay the $6000 application fee for each separate step 2 submitted. However, applicants will need to pay the regulatory assessment for each step two, before the license can be issued.

Please see the following illustrative examples below for further clarity:

Example 1—One entity seeking multiple licenses (e.g., a grower and processor license)

The entity needs to complete one prequalification, and pay the $6000 application fee. The entity needs to complete a grower step 2 and a processor step 2. When the entity receives notification, the entity will need to pay a regulatory assessment for the grower license and a regulatory assessment for the processor license.

Example 2—Separate entities seeking to co-locate (e.g., a prospective grower, processor, and provisioning center)

Entity A, Entity B, and Entity C plan to co-locate as a grower, processor, and provisioning center respectively. Each entity will need to pay an application fee of $6000 and, after BMMR notification, will need to pay a regulatory assessment. So, Entity A will need to pay $6000 with its prequalification; Entity B will need to pay $6000 with its separate prequalification; Entity C will need to pay $6000 with its separate prequalification. A regulatory assessment will also need to be paid for each the grower, processor, and provisioning center license.

Who is a “managerial employee of the applicant?”2018-11-19T19:43:13+00:00

“Managerial employee” is not a term defined in the MMFLA although it is used as part of the definition of the term “applicant”. Considering the context in which this term is used, the Department intends to apply this term to those employees who have the ability to control and direct the affairs of the marihuana facility and/or have the ability to make policy concerning the marihuana facility. An employee who has supervisory duties, meaning those employees that carry out policy but don’t set or make policy or have the ability to control or direct the affairs of the marihuana facility, do not fall within the context of a “managerial employee” in the MMFLA. Additionally, an employee who has the title of “manager” is not a “managerial employee” in the context of the MMFLA if they do not have the ability to control or direct the affairs of the marihuana facility and/or they do not have the ability to set policy concerning the marihuana facility.

How does the application process work and who can apply for a license?2018-11-19T19:53:14+00:00

Anyone — individual or business — who feels that they can satisfy statutory and administrative rule requirements for a marihuana facility license may apply for a license. The BMMR will begin accepting applications on December 15, 2017. There is no deadline to complete the application process.

On December 15, 2017, LARA will begin accepting online or paper form applications, utilizing a two-step application process for medical marihuana facility licensing:

  1. Pre-Qualification
  2. License Qualification

This two-step process will allow applicants to begin the application process by completing step one before a location for the medical marihuana facility is established. If applicants have a location secured, they will have the option of submitting step one and step two materials at the same time.

Step One – Pre-Qualification

The first step is Pre-Qualification which includes a full background check of the applicant and all supplemental applicants. This includes – but is not limited to – individuals or businesses with an ownership interest (direct or indirect) in the applicant. As part of the Pre-Qualification (step one), applicants must disclose those individuals and businesses with an indirect or direct ownership interest. Applicants should refer to Sections 401 and 404 of the MMFLA to determine which individuals or businesses must be included in the disclosure.

Before an applicant’s Pre-Qualification (step one) materials can be reviewed, the applicant must pay the $6000 application fee. Until the $6000 application fee is paid, the BMMR will not be able to process the application. After the application is processed, the BMMR will notify applicants and supplemental applicants when and where fingerprints will be collected.  Local law enforcement agencies will not collect fingerprints for the BMMR and the BMMR will not accept fingerprint reports completed by applicants before the applicants are instructed to have their fingerprints collected.

Pre-Qualification (step one) may be completed before an applicant has a physical location for its business.

Step Two – License Qualification

The second step is the License Qualification. If applicants have a location secured, they will have the option of submitting step one and step two materials at the same time. License Qualification requires information specific to the physical location of the applicant’s business. An applicant cannot be issued a license until all requirements in the MMFLA and administrative rules are met.

Under Section 205 of the MMFLA, the Department cannot issue a license to a facility intending to operate in a municipality unless the municipality has enacted an ordinance authorizing marihuana facilities to operate within the municipal boundaries. An applicant’s physical location will need to be located in a municipality with an ordinance compliant with Section 205 requirements. Any questions about municipal ordinances should be directed toward the appropriate municipal authority.

While an application is being processed, BMMR staff will be in communication with applicants regarding additional requirements in statute or administrative rule, including pre-licensure investigation.

After notification of License Qualification (step two) approval from the BMMR, an applicant will need to pay a regulatory assessment for each license the applicant is issued.

Grower A license regulatory assessments are capped, by statute, at $10,000. The regulatory assessment for 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 amount of the regulatory assessment is not available at this time. There is no regulatory assessment for Safety Compliance Facilities.

Please help me with the terms. Who is an “applicant”? What is an “affiliate”? Who must file an application? Who is subject to the disclosures in the application process for a medical marihuana facility? What is a “true party of interest”?2018-11-19T20:03:28+00:00

Persons wanting to operate a medical marihuana facility in the state of Michigan must file an application for a medical marihuana facility license.

An “applicant” is defined as a person who applies for a state operating license. For purposes of ineligibility for a license (MMFLA section 402), the term “applicant” includes an officer, director, and managerial employee of the applicant and a person who holds any direct or indirect ownership interest in the applicant.

The term “affiliate” is only used in section 305 of the MMFLA and is defined as any person that controls, is controlled by, or is under common control with; is in a partnership or joint venture relationship with; or is a co-shareholder of a corporation, a co-member of a limited liability company, or a co-partner in a limited liability partnership with a licensee or applicant.

The term “affiliate” will no longer be used in the context of the license application. Persons who meet the statutory definition of “affiliate” are bound by the provisions applicable to affiliates found in Section 305 of the MMFLA. This term is completely unrelated to identifying persons who must disclose information in an application for a medical marihuana facility.

According to the MMFLA, those who are required to file disclosures in an application are as follows:

  • the applicant
  • an officer, director, and managerial employee of the applicant
  • any person who holds any direct or indirect ownership interest in the applicant
  • those persons who are a “true party of interest”

A “true party of interest” is defined as follows:

  • For an individual or sole proprietorship: the proprietor and spouse.
  • For a partnership and limited liability partnership: all partners and their spouses.
  • For a limited partnership and limited liability limited partnership: all general and limited partners and their spouses.
  • For a limited liability company: all members, managers, and their spouses.
  • For a privately held corporation: all corporate officers or persons with equivalent titles and their spouses and all stockholders and their spouses.
  • For a publicly held corporation: all corporate officers or persons with equivalent titles and their spouses.
  • For a multilevel ownership enterprise: any entity or person that receives or has the right to receive a percentage of the gross or net profit from the enterprise during any full or partial calendar or fiscal year.
  • For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or the bylaws and their spouses.

A “true party of interest” does not mean:

  • A person or entity receiving reasonable payment for rent on a fixed basis under a bona fide lease or rental obligation, unless the lessor or property manager exercises control over or participates in the management of the business.
  • A person who receives a bonus as an employee if the employee is on a fixed wage or salary and the bonus is not more than 25% of the employee’s pre-bonus annual compensation or if the bonus is based on a written incentive/bonus program that is not out of the ordinary for the services rendered.
Can you submit the entire application if you are still awaiting municipality approval?2018-11-19T20:06:00+00:00

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 chooses to opt-in to the MMFLA and an address can be identified.

Where do I go to submit my application?2018-11-19T20:08:19+00:00

The link to complete the application online will be posted on the State of Michigan’s website at www.michigan.gov/mmfl and will be available for application submissions on December 15, 2017. The Department will begin accepting applications in person on December 15th at 2407 N Grand River Ave. Lansing, MI.

How do attorneys or other entities submit materials on someone else’s behalf?2018-11-19T20:11:16+00:00

Third parties, such as CPAs, attorneys, etc., may create their own login for Accela, the facilities licensing application portal, and fill out applications and upload documents on behalf of their clients. Third parties will need to include documentation that establishes their authorization to submit on behalf of their clients.

Is it better to wait and submit full application (step 1 and 2) or submit step 1 right away while waiting for a municipality ordinance?2018-11-19T20:17:00+00:00

The application is designed to allow flexibility in the application process. Step 1 and Step 2 can be submitted at the same time or at separate times, whichever is most convenient for the applicant. For additional information on the application process please see the advisory bulletin posted on October 12, 2017.

Will I have to pay fees for background investigations based on the number of background investigations needed in my application?2018-11-19T20:19:14+00:00

No, the $6000 application fee includes the basic background investigations needed to process the application.

Can you pay fees online?2018-11-19T20:20:50+00:00

Yes, there will be an option to pay online upon completing each step of your application.

If an application is submitted and missing information can it be supplemented later?2018-11-19T20:25:59+00:00

It is possible to submit an application with incomplete information, however, no background investigations will begin until all required information is provided. The Department will issue a deficiency notice citing the incomplete information and provide give you a time frame in which to provide the information. A better option would be to save the incomplete application and submit it after you have completed it.

What is expected for a description in the comments box on the application?2018-11-19T20:30:00+00:00

There are multiple comments sections on the application for describing the contents of an attachment. As an example, if the attachment is a W-2, the description could include the year and the name of the entity or individual on the W-2.

Can I apply for a facility license if I have marijuana medical card?2018-11-19T20:32:54+00:00

Yes, you may apply for a facility license. Please refer to the BMMR advisory bulletin posted on November 17, 2017, for more information regarding that transition.

When uploading supporting documents for an entity, how do you determine which document is for which individual?2018-11-19T20:35:57+00:00

Applicants can indicate which document goes with which individual online via the description box on the supporting documentation portal or on the document being uploaded.

How should an applicant expect to receive communication from LARA during the application process and after licensure?2018-11-19T20:41:11+00:00

The applicant can expect communication to come from the Bureau of Medical Marihuana Regulation (BMMR) through Accela Citizen Access (ACA), which is the citizen user portal. The email communication will direct the applicant to view their dashboard on ACA for more information. An applicant may also receive correspondence or communication by mail and by telephone.

Do you have a list of Michigan municipalities that have opted in or are planning to?2018-11-19T20:51:11+00:00

Our team has compiled an extensive list of municipalities that have opted into the MMFLA.  This list and other resources regarding these municipalities can be found here.  We are constantly updating this list, so check back frequently for updates!

Can you apply without a business location?2018-11-19T20:52:45+00:00

An applicant can apply for licensure at any time after December 15, 2017. However, a license cannot be granted until an address can be identified.

Can an applicant have the online system provide correspondence to more than one person?2018-11-19T20:55:34+00:00

Yes, Accela allows for communication to multiple users.

When can I apply for my license? What are the different licenses I can apply for? When will LARA stop taking applications?2018-11-19T20:57:30+00:00

Beginning December 15, 2017, the Department of Licensing and Regulatory Affairs will begin taking applications for the following medical marijuana facility licenses:

  • Grower
  • Processor
  • Transporter
  • Provisioning Center
  • Safety Compliance Facility

There is no deadline for application submission.

What other things may potentially prevent an applicant from getting approved for a license?2018-11-19T21:02:52+00:00

The Board may take the following into consideration:

  • The integrity, moral character, and reputation; personal and business probity; financial ability and experience; and responsibility or means to operate or maintain a marijuana facility of the applicant and of any other person that either:
    • Controls, directly or indirectly, the applicant.
    • Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.
  • The financial ability of the applicant to purchase and maintain adequate liability and casualty insurance.
  • The sources and the total amount of the applicant’s capitalization to operate and maintain the proposed marijuana facility.
  • Whether the applicant has filed or had filed against it, a proceeding for bankruptcy within the past 7 years.
  • Whether the applicant has been served with a complaint or other notice filed with any public body regarding the payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.
  • Whether the applicant has a history of noncompliance with any regulatory requirements in this state or any other jurisdiction.
  • Whether at the time of application the applicant is a defendant in litigation involving its business practices.
  • Whether the applicant meets other standards in rules applicable to the license category.
  • Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning, or had expunged any relevant criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations.  This is regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise.
Can you upgrade your license from a grower A to B or C without completing a new application?2018-11-19T21:13:17+00:00

No, if no changes are made to the organizational structure, the prequalification step would not be repeated, but a new facility license application and required supporting documentation must be submitted.

Is the state going to limit the number of licenses issued?2018-11-19T21:19:48+00:00

No, however, the local municipality has the authority under the MMFLA to restrict or limit the type and number of facilities licensed in their boundaries.

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?2018-11-19T21:22:48+00:00

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

What are the costs for a license?2018-11-19T21:45:32+00:00

The initial costs of a marijuana facility license at the state level include an application fee and the regulatory assessment. There are also additional costs at the state level as authorized under the Medical Marihuana Facilities Licensing Act (MMFLA) that 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 the BMMR and 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.

According to LARA, this assessment offsets operational costs and other statutory mandates including LARA’s costs to implement the act. It also offsets the cost of medical-marijuana-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.

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.

Additional State 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))
Does my criminal history prevent me from obtaining a license?2018-11-19T21:50:52+00:00

It depends on whether the following are true:

  • The applicant is ineligible if he or she has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States (federal law) within the past 10 years or has been convicted of a controlled substance-related felony within the last 10 years.
  • The applicant is ineligible if he or she has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state within the past 5 years.
  • The applicant is ineligible if he or she has been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state within the past 5 years.

The Board may also take the following into consideration:

  • Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning, or had expunged any relevant criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations.  This is regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise.
What prohibits a person from obtaining a medical marijuana facility license?2018-11-19T22:01:30+00:00

An applicant cannot obtain a license if any of the following is true:

  • The applicant is ineligible if he or she has knowingly submitted an application for a license under this act that contains false information.
  • The applicant cannot be a member of the Medical Marihuana Licensing Board.
  • The applicant is ineligible if he or she fails to demonstrate the ability to maintain adequate premises liability and casualty insurance for its proposed marijuana facility (an insurance policy that covers at a minimum of $100,000).
  • The applicant cannot hold an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government; or is employed by a governmental unit of this state. This subdivision does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.
  • The applicant, if an individual, is ineligible if he or she has been a resident of this state for less than a continuous 2-year period immediately preceding the date of filing the application. This requirement does not apply as of June 30, 2018.
  • The applicant is ineligible if the Board determines he or she failed to comply with section 205(1).
  • The applicant fails to meet other criteria established by rule.
  • The applicant is ineligible if he or she has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States (federal law) within the past 10 years or has been convicted of a controlled substance-related felony within the past 10 years.
  • The applicant is ineligible if he or she has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state within the past 5 years.
  • The applicant is ineligible if he or she has been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state within the past 5 years.
Can a medical marijuana facility licensee work for any level of government?2018-11-20T15:06:05+00:00

An applicant is ineligible to receive a license if he or she holds an elective office of a governmental unit for the State of Michigan, another state, or a federal government; or is employed by a governmental unit of the State of Michigan. This does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.

Will my marijuana facility license expire and how often will I have to renew it?2018-11-20T15:13:02+00:00

Yes, a license is issued for a 1-year period.  To maintain your marijuana facility license, it will need to be renewed annually.

Where is there more information on each medical marijuana facility type?2018-11-20T15:21:30+00:00

Details on each medical marijuana facility 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

Can a registered caregiver work in a licensed medical marijuana facility and retain their caregiver status under the MMMA?2018-11-20T15:33:38+00:00

Licensees for certain license types cannot retain caregiver or patient status under the MMFLA.  These rules are as follows:

Grow and Processing Facilities

Grower and processor facility licensees are required under the MMFLA to have at least two years’ experience as a caregiver or have an active employee with that experience (this requirement ends on 12/31/21). However, a licensed grower or processor may not be a registered caregiver and may not employ a registered caregiver.

Secure Transporters

Secure transporters cannot be registered patients or caregivers.

Provisioning Centers and Safety Compliance Facilities

The MMFLA does not prohibit provisioning center and safety compliance facility licensees from being registered as patients or caregivers under the MMMA.  It also does not prohibit these facilities from employing patients or caregivers.

Canceling Your Patient or Caregiver Status

A licensee or an employee must submit the form to cancel their caregiver status within five business days. If a new employee is a caregiver, that person has five business days from their date of hire to submit the form to cancel caregiver status. The withdrawal form can be found at the Michigan Medical Marihuana Program website.

With the implementation of the MMFLA, can a person seeking medical marijuana certification do so in a dispensary or provisioning center?2018-11-20T15:46:12+00:00

A licensed provisioning center may not allow a physician to conduct a medical examination or issue a medical certification document on their licensed premises to obtain a registry identification card.

Unfortunately, applicants receive inaccurate information from third parties that result in their application for a registry identification card being delayed or denied. You should not allow other individuals or third parties to submit their applications – or any other documents – to the Michigan Medical Marihuana Program (MMMP) as you will be unable to determine when or if the application was submitted. Additionally, you should not allow other individuals or third parties to retain copies of documents, state-issued driver licenses, personal identification cards, or your voter registration as that increases the possibility of fraud and/or fraudulent submissions.

It is important to note that third-party business operations which tell patients that their application and physician certification serves as a temporary registration card are putting the applicants at risk of possible arrest.  A patient or caregiver must present their valid registry identification card and a valid driver license – or other valid, government-issued photo ID – to law enforcement to be protected from arrest. It is for this reason that the Bureau of Medical Marihuana Regulation (BMMR) recommends applicants wait until they receive their registry identification card before engaging in the medical use of marijuana.

It is best to apply directly with the MMMP.  For more information you can contact the department directly in one of three ways: online forms can be found here; questions can be emailed to LARA-BMMR-MMMPINFO@michigan.gov; or call 517-284-6400.

How can I get information from the board or the Department?2018-11-20T15:53:39+00:00

We are constantly updating our blog with information released from the BMMR and the department.  We also post meeting updates from the BMMR as they occur.  Check back frequently for these updates!

If you need to contact the board directly, you can visit their website here.  You can also contact the board by phone at 517-284-8599 or email LARA-MedicalMarihuana@michigan.gov

Since banks generally disfavor cannabis businesses how does the state accept fees and taxes?2018-11-20T15:57:49+00:00

According to LARA, 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.

Can medical marijuana facilities co-locate?2018-11-20T16:09:33+00:00

Certain medical marijuana facilities can co-locate.  Operation at the same location (or co-location) is allowed for grower, processor, and provisioning center licenses if specific requirements are meant:

  • The operation at the same location shall not be in violation of any municipal ordinances or zoning regulations.
  • The municipality shall not limit the type or number of marihuana facilities under section 205 of the MMFLA or prohibit the operation at the same location by local ordinance or zoning regulations.
    • For clarification purposes, the intent 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 the same location.
  • Each license has distinct and identifiable areas with designated structures that are contiguous and specific to the state operating license.
  • Have separate entrances and exits, inventory, record keeping, and point of sale operations, if applicable.
  • Operation of a state operating license at the same location that includes a licensed provisioning center shall have the entrance and exit to the licensed provisioning center and entire inventory physically separated from any of the other licensed marihuana facility or facilities so that persons can clearly identify the retail entrance and exit.
  • Any other requirements outlined in the emergency administrative rules or MMFLA.

A secure transport facility or safety compliance facility may not co-locate with a provisioning center, processing, or grow facility.

LARA recommends referring to Emergency Administrative rule 24 for additional information on co-location of facilities.

Who is creating the rules for medical marijuana facility licensing?2018-11-20T16:53:49+00:00

The rules for medical marijuana facilities are being drafted by the Department in consultation with the Medical Marihuana Licensing Board. Section 206 of the Medical Marihuana Facilities Licensing Act (MMFLA), requires the Department, in consultation with the Medical Marihuana Licensing Board, to promulgate rules to implement, administer, and enforce the MMFLA. This section also requires that the rules ensure the safety, security, and integrity of the operation of marihuana facilities, by including specific regulations.

What are the capitalization requirements for a medical marijuana facility applicant?2018-11-20T17:11:45+00:00

You are required to demonstrate capitalization amounts to operate and maintain the proposed marijuana facility as follows:

  1. Grower – Class A: $150,000
  2. Grower – Class B: $300,000
  3. Grower – Class C: $500,000
  4. Processor: $300,000
  5. Provisioning Center: $300,000
  6.  Secure Transporter: $200,000
  7. Safety Compliance Facility: $200,000

The capitalization sources can be demonstrated as follows:

  • At least 25% is liquid assets. Liquid assets are assets easily convertible to cash. Examples of liquid assets may include, cash, marijuana inventory (in compliance with the administrative rules), CD’s, 401(k), stocks, and bonds.
  • Remaining capitalization may be evidenced in either additional liquid assets or non-liquid forms, for example, equity in real property, supplies, equipment, and fixtures.
  • Evidence must be provided proving that there is no lien or encumbrance on the asset provided as a source of capitalization.

Additionally, the capitalization amounts and sources must be validated by CPA-attested financial statements.

LARA recommends referring to Emergency Administrative rule 11 for additional information on capitalization.

Can I stack marijuana grow licenses per the MMFLA?2018-11-20T17:17:26+00:00

A potential licensee may apply for and be granted multiple (“stacked”) class C grow licenses— each authorizing the grower to grow up to 1,500 marihuana plants—in a single location, subject to the following conditions:

  • A potential licensee that applies for stacked licenses will be subject to an additional application and regulatory assessment for each license.
  • Stacked licenses must be issued to the same applicant/licensee.
  • A licensee with stacked licenses must comply with all applicable local ordinances and zoning regulations.
  • A licensee with stacked licenses must identify and track all information in the statewide monitoring system under the appropriate license.
  • A licensee with stacked licenses is not required to operate each license in a separate, distinct working area.
As a grower or processor hiring a caregiver, can I transfer their marijuana into my company?2018-11-20T18:39:05+00:00

GROWERS:

Until December 31, 2018, for a period of 30 days after the issuance of a license, you may transfer any of the following possessed by an active employee who is a former caregiver:

  • Marijuana plants
  • Seeds
  • Seedlings

PROCESSORS:

Until December 31, 2018, for a period of 30 days after the issuance of a license, you may transfer any of the following possessed by an active employee who is a former caregiver:

  • Marijuana plants
  • Usable marijuana
Who can a grower sell marijuana product to?2018-11-20T19:01:51+00:00

A grower can sell marijuana product in a couple of different ways.  As a licensed grow facility, you have the option to sell marijuana flower to a licensed provisioning center.  Your other option is to sell your marijuana flower to a licensed processor.  A processor will, by extraction, turn the product into concentrates or edibles as allowed under the MMFLA.

What are Michigan’s regulations on extract production?2018-11-20T19:32:41+00:00

Michigan’s regulations on extract production are as follows:

For extractions or any aspect of cultivation using butane, propane, and carbon dioxide, the following must be met:

  • Flammable gases of varying materials may be used in multiple processes in cultivation or extraction and must meet the requirements in national fire protection association (NFPA) 90 A, NFPA 58, Appendix B of NFPA 58, NFPA 70 and the applicable parts of the international fuel gas code.
  • Processes that extract oil from marijuana plants and marijuana products using flammable gas or flammable liquid must have leak and/or gas detection measures. All equipment used in the detection of flammable and/or toxic gases must be approved by the BFS and may require construction and mechanical permits.
  • Marijuana facilities that have exhaust systems are regulated by NFPA 45, NFPA 91 and the applicable parts of the Michigan mechanical code.

LARA recommends referring to Emergency Administrative rule 24 for additional information on co-location of facilities.

How is your marijuana plant count determined?2018-11-20T19:49:55+00:00

The MMFLA defines a plant as any living organism that produces its own food through photosynthesis and has observable root formation or is in growth material.  Any plant that meets this definition is counted toward the licensee’s plant count.

The marijuana plant limit for each licensee is based on the type of license issued as follows:

  1. Class A – 500 plants
  2. Class B – 1000 plants
  3. Class C – 1500 plants
Tell me about the extra 3% tax paid at provisioning centers. Where does it go? What is it used for?2018-11-20T20:03:13+00:00

A 3% excise tax of a licensed provisioning center’s gross retail receipts, paid quarterly to the department of treasury. Taxes may be remitted through Michigan Treasury Online. Treasury field offices will accept cash payments under $2,000. All cash payments over $2,000 must be brought to the BMMR offices in Lansing. The 3% tax is deposited into the medical marijuana excise fund and must be allocated, upon appropriation, as follows:

  • 25% to municipalities in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the municipality.
  • 30% to counties in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the county.
  • 5% to counties in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the county. Money allocated under this subdivision must be used exclusively to support the county sheriffs and must be in addition to and not in replacement of any other funding received by the county sheriffs.
  • 30% to the state for deposit in the first responder presumed coverage fund
  • 5% to the Michigan commission on law enforcement standards for training local law enforcement officers.
  • 5% to the department of state police.

Due to the passing of the Michigan Regulation and Taxation of Marihuana Act (MRTMA), the 3% excise tax on medical marijuana will go away beginning 90 days after the effective date of MRTMA.  There will then be a 10% excise tax on adult-use marijuana through licensed marijuana retailers.

Are provisioning centers held accountable for educating medical marijuana patients who buy from their store?2018-11-20T20:15:11+00:00

The Michigan Department of Licensing and Regulatory Affairs (LARA), through the MMFLA and emergency administrative rules, does not require provisioning centers to educate patients. Local municipalities, however, may require a provisioning center to provide patient education.

Additional information on regulations of opted-in municipalities can be found here.

Is the fee for secure transporter services a pre-determined by the state?2018-11-20T20:22:54+00:00

No, secure transporters are responsible for determining their own fees for their services.

Can a secure transporter deliver product anywhere in the state or just within the city where it is licensed?2018-11-20T20:26:28+00:00

A secure transporter may travel through any municipality to transport marijuana product. For additional information, refer to the Emergency Administrative Rule 25(2).

What impact does the implementation of MMFLA have on patients or caregivers operating under the MMMA?2018-11-20T20:48:59+00:00

The Michigan Medical Marihuana Act of 2008 (MMMA) created the patient/caregiver model that remains in effect today.  The MMMA is unchanged by the Medical Marihuana Facilities Licensing Act of 2016 (MMFLA).  Under the 2008 law, registered patients can continue to grow their own medical marijuana or have a caregiver grow it for them.

The MMFLA did not change the possession limits for medical marijuana patients or caregivers. Possession limits are 2.5 ounces of usable marijuana product and 12 marijuana plants per patient in an enclosed, locked facility. The MMFLA does, however, give registered patients another method for acquiring their medicine.

Under the MMFLA, patients – in addition to growing their own medical marijuana – can buy it from a licensed facility or have a caregiver buy it for them.  However, both caregivers and patients are still subject to the daily purchasing limit at those facilities. For a registered patient, the current daily purchasing limit is 2.5 ounces per day. For a registered caregiver, the current daily purchasing limit is 2.5 ounces per day per patient with whom he or she is connected through the MMMP.

How did the passing of 2018 PA 10 affect growers, processors, and safety compliance facilities?2018-11-20T21:19:14+00:00

GROWERS

Generally speaking, growers can only sell marijuana products by means of a secure transporter. There are a couple instances where a secure transporter is not required for growers.  These are as follows:

  1. 2018 PA 10 authorizes the sale or transfer seeds, seedlings, or tissue cultures from a registered caregiver or another grower without using a secure transporter.
  2. 2018 PA 10 authorizes a grower to transfer marijuana directly to a processor or provisioning center if both of the following are met:
  • The processor or provisioning center occupies the same location as the grower and the marijuana is transferred using private property without public roadways.
  • The grower enters each transfer into the statewide monitoring system.

PROCESSORS

Generally speaking, a processor can only sell marijuana products by means of a secure transporter. There is an exception, though, where a secure transporter is not required.  2018 PA 10 authorizes a processor to transfer marijuana without using a secure transporter to a grower or provisioning center if both of the following are met:

  • The grower or provisioning center occupies the same location as the processor and the marijuana is transferred using private property without public roadways.
  • The processor enters each transfer into the statewide monitoring system.

SAFETY COMPLIANCE FACILITIES

2018 PA 10 authorizes a safety compliance facility to do the following without using a secure transporter:

  • Take marijuana from, test marijuana for, and return marijuana to a marijuana facility.
  • Collect a random sample of marijuana at a provisioning center, grower facility, or processing facility for testing.
How does state law treat CPA and financial institutions regarding their interactions with licensee under the MMFLA?2018-11-20T21:28:30+00:00

State law says that financial institutions and certified public accounts are not subject to any of the following for providing financial services to a licensee unless otherwise stated:

  • Criminal penalties under state law or local ordinances regulating marijuana.
  • State or local civil prosecution based on a marijuana-related offense.
  • State or local criminal prosecution based on a marijuana-related offense.
  • Seizure of any real or personal property or anything of value based on a marijuana-related offense.
  • Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau based on a marijuana-related offense.

“Financial institution” means any of the following:

  • A state or national bank.
  • A state or federally chartered savings and loan association.
  • A state or federally chartered savings bank.
  • A state or federally chartered credit union.
  • An insurance company.
  • An entity that offers any of the following to a resident of this state: a mutual fund account, a securities brokerage account, a money market account, a retail investment account.
  • An entity regulated by the Securities and Exchange Commission that collects funds from the public.
  • An entity that is a member of the National Association of Securities Dealers and that collects funds from the public.
  • Another entity that collects funds from the public.

“Financial service” means a deposit; withdrawal; transfer between accounts; exchange of currency; loan; extension of credit; purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument; or any other payment, transfer, or delivery by, through, or to a financial institution.

Can I hold a concealed pistol license and a medical marijuana facility license?2018-11-20T21:35:15+00:00

There are no restrictions in the MMFLA that prevent a CPL holder from obtaining a medical marijuana facility license.

How does the MMFLA impact the MMMP industry?2018-11-20T21:47:58+00:00

The Michigan Medical Marihuana Act, 2008 (MMMA) creates a patient/caregiver model that remains in effect and is unchanged by the Medical Marihuana Facilities Licensing Act (MMFLA), 2016. For patient/caregivers wishing to transition from that model and open a marijuana facility under the provisions of the MMFLA, LARA recommends referring to the advisory bulletin posted on November 17, 2017.

Can I get my fees back from the municipality I’m denied by the State of Michigan?2018-11-20T22:06:32+00:00

Under Section 205 of the MMFLA, a facility cannot operate unless a municipality has adopted regulatory and zoning ordinances. The municipality can establish an annual, nonrefundable fee of not more than $5,000.00.

The approval or authorization of a municipality does not guarantee that the business will be licensed by the State of Michigan. The business must be licensed by the state to sell medical marijuana. If the business is not granted a state license, it will not be able to operate. Regardless of state licensure, fees paid to the municipality would only be refundable if the municipality allows refunds.  For more information on your municipality’s regulations, we have compiled an extensive list of information that can be found here.

Why is marijuana testing required under the MMFLA?2018-11-20T22:21:31+00:00

Section 206 of the MMFLA requires that rules be established regarding testing standards, procedures, and requirements for marijuana sold through provisioning centers.  Additionally, section 504 of the MMFLA states that provisioning centers can only sell marijuana after it has been tested.  The Department is currently working on rules related to testing requirements and information.  We constantly are posting updates on the state’s regulatory process.  Check out our blog frequently for updates!

Can I buy plants or other marijuana product from caregivers?2018-11-21T18:12:45+00:00

The Medical Marihuana Facilities Licensing Act (MMFLA) does not change the patient/caregiver created by the MMMA.  The patient/caregiver model is still in effect. Registered primary caregivers may still grow for their assigned patients.  Caregivers may also purchase products from a provisioning center on behalf of their assigned patients.

Can a landlord transfer a lease to marijuana business owners who switch licenses?2018-11-21T20:22:31+00:00

The Medical Marihuana Facilities Licensing Act (MMFLA) does not prohibit landlords from transferring rental agreements or leases to marijuana businesses. However, a licensee must identify his or her facility location when applying for licensure.  Applying does not guarantee the applicant will be approved licensure.

What impact does the MMFLA have on caregiver center applicants in the pipeline in Detroit?2018-11-23T16:56:25+00:00

LARA  does not currently license caregiver centers. However, they do take license applications for provisioning centers. The Medical Marihuana Facilities Licensing Act specifies that a municipality (village, township or city) may adopt an ordinance that authorizes 1 or more types of marijuana facilities to operate.  For more information on marijuana regulations in specific municipalities, check out our extensive database.  We are constantly updating this list, so check back frequently for updates!

What is meant by sales of 1% or more interest in a medical marijuana license?2018-11-27T19:16:21+00:00

This is referring to selling or transferring ownership interest in a marijuana license.  The Medical Marihuana Facilities Licensing Act (MMFLA) states that each license is exclusive to the licensee. Because of this, prior to completion of a sale or transfer, you must receive approval of the Medical Marijuana Licensing Board.  The MMFLA stipulates that this applies to the transfer or sale of more than 1% ownership interest of the license.  Therefore, attempting to sell or transfer 1% or more of a marijuana license without the board’s approval is grounds for suspension or revocation of the license.

What disqualifies an employee from working at a marijuana facility?2018-12-14T15:31:51+00:00

The MMFLA does not require individual employees working in a licensed facility to be licensed themselves.  However, the law requires the holder of the license to conduct background checks on all prospective employees. If the background check indicates a pending charge or conviction within the past 10 years for a controlled substance-related felony, you must obtain written permission from the board to hire that prospective employee.