Making the Cut

[dropcap class=”kp-dropcap”]A[/dropcap]ll existing medical cannabis businesses in Michigan that wish to remain open must acquire local approval before obtaining a state license. Feb. 15 was the deadline of applications for a state license and the required prerequisites, but not all businesses proved ready for the cutoff date.

Last Dec. 4, 2017, The Department of Licensing and Regulatory Affairs (LARA) released emergency administrative rules for Michigan’s medical cannabis businesses. The Medical Marijuana Facility Licensing Act rules took effect on Dec. 15, 2017.

On Feb. 8, LARA released a time-sensitive reminder on changes to Michigan’s medical cannabis industry. The department reminded all Michigan medical cannabis license applicants that Feb. 15 was the last day that businesses with local approval could apply for a state license.

Under the emergency rules, proposed medical cannabis facilities that have continued to operate with local approval must cease operations if they are facing any of the following:

• A completed prequalification application—including the local attestation form—is not turned into LARA by Feb. 15, 2018.
• The applicant has been denied state licensure.
• The applicant has not been issued a state license by June 15, 2018.

Not completing the necessary steps could result in a phone call to the state police or to federal agents. “Noncompliance is grounds for disciplinary action and referral to law enforcement for unlicensed activity,” the reminder reads. “Until a license is received from the state, the operation of a proposed medical marihuana facility should be considered a business risk by the operator. Unlicensed activity may be forwarded to the Michigan State Police and the Attorney General.”

CULTURE reached out to LARA to get a better idea of how many businesses have taken the required steps for a state license. “The last available numbers are as of Feb. 3, 2018,” LARA Spokesperson David Harns told CULTURE. As of Feb. 3, 189 total applications had been submitted. Of those 189, 146 were for Prequalification, three for Grower A, two for Grower B, 21 for Grower C, six for a Processor, 10 for Provisioning Centers and one for a Safety Compliance Facility application. As of Feb. 3, 674 total online applications were still in the application process. Of those 674, 618 were for Prequalification, 15 for Grower A, five for Grower B, 11 for Grower C, seven for Processor, 12 for Provisioning Centers and six for a Secure Transporter application.

“Noncompliance is grounds for disciplinary action and referral to law enforcement for unlicensed activity.”

Clearly, not every medical cannabis business is going to make the cut.

There is no limit to the number of state licenses that can be issued, although nearly every local ordinance passed in a township, village or city places caps and restrictions on the number of licenses.

State licenses are expected to be considered for approval during the Michigan Medical Marihuana Licensing Board’s March 22 or April 19 scheduled meetings. Both meetings are scheduled to take place at the Michigan Library and Historical Center in Lansing, and many people are expected to attend. June 15 will be the final day that state licenses will be issued to existing businesses.