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Governor of Michigan Furnishes New Set of Rules Prior to the Medical Cannabis Licensing

Governor of Michigan Furnishes New Set of Rules Prior to the Medical Cannabis Licensing

December 06, 2017 Michigan

Rick Snyder, Governor of Michigan, has issued a list of provisional rules for regulating medical cannabis businesses. This measure has been taken just 10 days before Michigan starts accepting applications for MMJ licenses according to a new system of rules and regulations. The state will start to accept applications for MMJ licensing from December, 15.

These temporary regulations will remain in effect until the revised set of rules don’t get implemented. The newly introduced rules cover the domains of security prerequisites and promotional tactics. It also outlines the capital requirement necessary for cultivating, processing and selling of MMJ products. Logistics and testing of the products will also be regulated under the provisional rules.

Regarding the already existing MMJ dispensaries, the state had already outlined the guideline. All the current medical cannabis establishments can still operate while applying for a newly regulated state license, given that they have the endorsement of the local community where their business is located.

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Under the newly introduced regulation, businesses applying for licensing must exhibit capitalization in between $150,000 to $500,000, subjected to the extent of operations. It is also mandatory to have 25% of the capital in the form of liquid assets. These assets include hard cash, investment bonds and cannabis inventory.

To meet the capital requirements for licensing, applicants can’t use more than 72 cannabis foliage and 15 ounces of functional cannabis. Acquiring license will cost $6000 to the MMJ operators.

Licensees have to inform the state police, Department of Licensing and Regulatory Affairs and other local law enforcements of any loss of valuables and theft within a day. Businesses can be fined for an amount of $10,000 or the total amount of daily sells in case of any violation of rules. Individuals will be fined for up to $5,000 for breaking the rules.

Cultivating, processing and provisioning of the products can be managed from the same location if the local municipality allows it. However, visitor’s registry, separate entry and exit points and video supervision inside the establishment are the essential requirements.

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Advertising of MMJ products on public spaces such as sidewalks, parks and streets will remain prohibited. Under the new rules and regulations, MMJ provision centers will be subjected to 3% tax.

The multi-tiered licensing system in Michigan is being formulated under the previous year’s approved bill to regulate medical marijuana more strictly. The bill was introduced to clear the confusion regarding 2008’s voter-approved measure to legalized MMJ.

Importance of medical-use of marijuana in the state of Michigan can easily be gauged by the numbers. More than 265,000 patients have already enrolled with the state to cultivate their own medical cannabis or to get it from 42,000 listed caregivers who are only able to cater a very limited number of patients.

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Comment Section

One thought on “Governor of Michigan Furnishes New Set of Rules Prior to the Medical Cannabis Licensing

By Pene Murdoch on 10 December 2017

None of these people doing the licensing and law making seem to clearly know what they are doing. They make laws, re-do them, don't follow them, aren't clear about them so the dispensaries and growers are not clear, and then the police get involved and in my opinion they are unprofessional and rude. It makes citizens think the police are acting like a mafia gang. I'm in my 70s and have never seen such ridiculous confusion, constant meetings, and law making and changing over a plant. It's a sham as we here in Michigan see that the "powers" are trying to make it so that only the rich can grow, distribute, sell and control MJ in this state.

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