LARA Extends Emergency Cannabis Rule Deadline

[dropcap class=”kp-dropcap”]E[/dropcap]xperts have warned Michigan’s medical cannabis industry about its trajectory toward chaos. It seems that the Department of Licensing and Regulatory Affairs (LARA) is finally listening.

The medical cannabis market for Michigan is estimated to reach $325 million to $425 million in sales. In an effort to avoid revenue losses to the black market, possible product shortages and general disruption, LARA announced on Sept. 11 that it will extend the Sept. 15 deadline for existing operators to receive a permanent medical cannabis license. The state currently has only seven dispensaries that are expected to service up to 290,000 patients in one of the nation’s largest markets. Now, Michigan dispensaries may continue operating until Dec. 15.

“We’ve heard a lot of concerns over the past month and we want to make sure those concerns are heard and considered and we take appropriate action,” Andrew Brisbo, director of the state medical cannabis regulatory bureau, said in a statement for The Detroit News.

During a meeting on Sept. 10, the Medical Marijuana licensing board approved 21 licenses, 12 of which were dispensaries. Thus far 19 dispensaries, seven growers, four processors, four testing facilities and three transporters have been approved for licenses. Patients, providers and lawmakers have all been appealing for an extension for more licenses.

Brisbo also announced that the state would increase the annual regulatory fee of every licensed operator. This year the fee has been $48,000 and it is expected to reach $66,000 in 2019. According to Brisbo, the fee was calculated based on the cost of regulating the industry and the amount of payments Michigan is expected to receive. The jump to a full year of operations from the 2018 fiscal year is the primary motivation.

The application for a state license in Michigan is a 10-step process. Businesses are first required to pay a $6,000 application fee before undergoing an in-depth financial and background check.  Michigan’s regulatory bureau is currently reviewing and processing hundreds of applications based on the 2016 licensing law which outlines that applicants must meet essential benchmarks, including, “high moral character, integrity and reputation.”

For more detail about the newly announced deadline extension, see LARA’s official press release here.