Michigan Releases Emergency Medical Cannabis Rules

The Department of Licensing and Regulatory Affairs (LARA) issued emergency administrative rules intended to implement the Medical Marihuana Facilities Licensing Act (MMFLA) on Monday, December 4. The emergency rules take effect once they are filed by the Secretary of State and will last for six months.

The highly anticipated guidelines came just in time for medical cannabis license applications to go live which is scheduled for December 15.

Some issues were clarified via the new emergency rules, which helps end Michigan’s “Wild West” days of medical cannabis regulation. “The rules do not demand that the secured transporter use an armored vehicle,” attorney Paula Givens told WZZM. “Everybody wants to know, ‘Can we do a drive-thru [dispensary]?’ No drive-thru [dispensary]. ‘Can we do a mobile delivery?’ No, your marijuana facility has to be at a fixed location.”

A controversial minimum capital requirement will apply, although liquid assets such as equipment or services can be figured into each business’ numbers in order to qualify. Many other details and requirements apply. Applicants must disclose their total amount of capitalization and the requirements are as follows:

(a) Grower: Class A – $150,000.00.

(b) Grower: Class B – $300,000.00.

(c) Grower: Class C – $500,000.00.

(d) Processor: $300,000.00.

(e) Provisioning Center: $300,000.00.

(f) Secure Transporter: $200,000.00.

(g) Safety Compliance Facility: $200,000.00.

Class C licenses can be stacked under Rule 22, which is generally viewed as unfavorable by small-sized cultivation operations because of the advantage it gives to larger corporations.

The emergency regulations offer a much clearer picture of what will happen after December 15 and how medical cannabis businesses in Michigan can overcome the hurdles in the application process. Fees, deadlines and other information that was previously found confusing have been dealt with in the new emergency regulations.