Closing the Gap

[dropcap class=”kp-dropcap”]I[/dropcap]n early 2019, Michigan’s medical cannabis industry faced a statewide dilemma because over 70 provisioning centers operating under temporary licenses were forced to shut down due to the inability to adhere to a strict deadline schedule. Moreover, only licensed commercial cannabis producers were permitted to supply cannabis, creating a giant shortage of medical cannabis for the state’s patient community. This eventually led leaders to respond with a stop-gap measure to allow the state’s medical cannabis industry to operate seamlessly, as best as possible.

The situation was dire, to say the least. In Ann Arbor, for instance, there are over 20 provisioning centers, but only seven have been able to obtain permanent licenses. The rest of the provisioning centers were forced to close early in the year, despite having a steady daily stream of patients.

On Jan. 15, Gov. Whitmer and Shelly Edgerton, the director of the Department of Licensing and Regulatory Affairs (LARA), asked Michigan’s medical cannabis licensing board to allow temporary operating facilities to reopen and allow them to acquire cannabis from caregivers. The next day, the Medical Marijuana Licensing Board (MMLB) extended the deadline, allowing unlicensed provisioning centers to temporarily reopen until March 31.

“LARA’s recommendation allowed temporarily operating facilities to reopen without it being an impediment to future licensure and also allowed licensed facilities to source product from caregivers without it resulting in disciplinary action.”

The MMLB response was formulated after dozens of patients complained that they could find access to medical cannabis. The rising tension forced LARA and the board to respond. “The Department of Licensing and Regulatory Affairs recommended that the Medical Marihuana Licensing Board adopt a resolution which would help maintain patient access to medical marijuana,” LARA spokesperson David Harns told CULTURE. “LARA’s recommendation allowed temporarily operating facilities to reopen without it being an impediment to future licensure and also allowed licensed facilities to source product from caregivers without it resulting in disciplinary action. The resolution passed by a 4-0 vote on January 16, 2019.”

Temporary Operating Facilities can continue to operate through March 31 if the applicant’s proposed facility is in a municipality that had an authorizing ordinance in place by Dec. 15, 2017, the applicant applied for a license no later than Feb. 15, 2018 and if the applicant notifies the department within one business day of becoming aware of any adverse reaction to a cannabis product sold or transferred. More restrictions apply.

Also through March 31, licensed provisioning centers can avoid disciplinary action if they obtain signed patient consent before selling any products that have not been tested, enter all inventory into the statewide monitoring system immediately, verify photo identification and if they notify LARA within one business day if any customer has an adverse reaction. Compliance with testing requirements is also a lingering problem for Michigan’s medical cannabis system.

Under the new extensions, licensed growers and processors also can avoid disciplinary action through March 31 if they follow similar compliance rules as provisioning centers and abide by inventory, testing and tracking rergulations. The updates were created to allow some leeway for businesses unable to comply with the full list of compliance rules.

The slew of changes will create a grace period that will allow several business types to put together their paperwork and requirements they need and remain open for the time being. Patients in the area are depending upon it. Time will tell if more extensions and grace periods are needed in the future to allow businesses with the right intentions to stay open.