State of Limbo

Existing medical cannabis collectives across Michigan are currently in limbo after a statewide warning was issued about significant regulatory changes that will take place in mid-December. Many collective owners worry about what the punishment will be if current collectives remain open passed the deadline.

On September 12, the Department of Licensing and Regulatory Affairs (LARA) gave medical cannabis collectives across Michigan until December 15, 2017, to either close or risk obtaining a new license under Michigan’s new regulatory system, the Medical Marihuana Facilities Licensing Act (MMFLA). The department posted on its website that existing collectives would face “a potential impediment to licensure” if they continue to operate.

“Dispensary owners and patients have good reason to be concerned—they’ve been given a deadline for closure.”

Needless to say, the September 12 announcement ignited a firestorm of confusion, questions and downright anger from those in the medical cannabis industry.

The emergency rules are only a temporary solution. “Emergency rules are required before licenses can be issued,” Public Information Officer for LARA, David Harns, told CULTURE. “So the law requires that rules be put in place to govern the handing out of licenses. Not only the handing out [of licenses], but also going forward with how the industry will work. Since there won’t be time to get the permanent rules put in place before licenses need to be handed out in December, the emergency rules are going to be used as a temporary measure. It’s not as drastic as it sounds.” These emergency rules were enacted before the December 15 date in which licenses will be accepted. From there, the bureau will work alongside the board to finalize permanent rules. LARA doesn’t have a time frame for when those rules will be put in place, he said, but they will replace the emergency rules as soon as they are approved.

Andrew Brisbo, director of the Michigan’s Bureau of Medical Marijuana Regulation, stated that collectives that continue to operate would create a “business risk” for themselves. In addition, LARA officials believe that the three-month window is adequate time for patients and caregivers to find a way to preserve the continuity in their medication supply. Shutting down collectives is not in the business of LARA—that would be left up to local law enforcement.

But Michigan cannabis advocates, lawyers and business professionals say the rules could render patients without a place to obtain their medicine for months. “LARA is clear about its thoughts,” Roberta F. King, co-owner of Michigan-based firm Canna Communication, told CULTURE. “Dispensary owners and patients have good reason to be concerned—they’ve been given a deadline for closure. There’s a lag time that has to be considered too—license applications will be accepted on December 15, but won’t be issued the same day. We don’t know how long that process could take.”

Even after Michigan voters approved medical cannabis in the state, the law can still be hampered through leadership and legislation, and the restrictions could continue to grow. “An equal concern of mine is that among at least one of the MMFLA Board members, there is a movement to punish current dispensary owners for operating outside of the law.” King added. “That board member also suggested that those who operate dispensaries now should be excluded from applying for a license.”

Many collectives now face the option to abide by the emergency rules and close down pre-MMFLA operations before December 15 before they apply for licenses under the new regulatory system.