Michigan was one of the first states that legalized cannabis. In addition, medical cannabis was expanded upon during the summer of 2018 since the state authorized eleven new cannabis species for cannabis patients.
But what about cannabis in Michigan in 2021?
Let’s go over some of the facts cannabis businesses in Michigan should know.
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Michigan Dispensary Laws
Once you’ve decided to start a dispensary in Michigan, you’ll have to understand how Michigan dispensary law works.
The Taxation and Regulation of Marijuana Act were approved by Michigan’s voters in November 2018. Then, this famous state, Michigan, became a certified state, becoming the 10th state in the USA to legalize recreational cannabis.
Back in 2008, Michigan legalized medical marijuana. However, the state failed to provide dispensary allowances. Since the more legalization progress happened, and the state developed a framework for operating and licensing dispensaries of medical marijuana in Michigan. These dispensary operations are called “provisioning centers” in the state.
Marijuana Regulatory Agency
The newest legislation tasked the MRA – aka Michigan Marijuana Regulatory Agency – to oversee cannabis business licensing in Michigan. The agency declared to consider license applications for the first 24 months from the medical marijuana dispensary owners who are currently licensed.
However, at present, from March 2021, Michigan state started to receive applications for licensing recreational cannabis from entrepreneurs. These are the new business operators who just laid their hands in the industry for the first time or have never had a cannabusiness license before.
Some businesses have avoided taking part in the legal cannabis business of Michigan. However, as the pandemic has hit hard on the tax revenue, more people are showing interest in recreational cannabis.
Detroit, the largest city of Michigan, announced it wants to implement rules for useable and licensed marijuana for adults. However, the city also wants to maintain social equity to ensure everyone impacted by the War on Drugs will have their fair share and opportunity to enjoy the fruits of the cannabis sector.
This is where Detroit Legacy Applications come into play. These are the citizens of Detroit who have been living here for at least 13 years of the past 30 years and low-income applicants. The state decided to allocate half of the recreational cannabis licenses for the whole city to these potential cannabusiness operators.
Retail Cannabis Licensing in Michigan
Which state agency is responsible for all the cannabis licensing in Michigan?
The Michigan Marijuana Regulatory Agency, or MRA, is responsible for all the cannabis licensing in Michigan.
What is the process for obtaining a medical marijuana dispensary license in Michigan?
As stated before, Michigan dispensaries of medical cannabis are called “provisioning centers.” The process of obtaining a medical dispensary license consist of two-steps. First, you’ll have to prequalify. That includes a thorough background check of each person engaged with the license application process.
The next step involves qualifying for the medical dispensary license. You’ll have to give specific information for the license type you apply for, and applications for licenses must be submitted to the MRA. The MRA will then examine these applications carefully.
A physical inspection of proposed retail establishments is also conducted before approval. Applicants are required to pay a licensure fee at that time as well.
What are the costs surrounding applying for a medical marijuana provision center license in Michigan?
You’ll have to pay two fees for licensing a medical marijuana provisioning center in Michigan. The first fee in this process is the application fee, costing around $6,000. You’ll have to the fee before your application process begins.
Another fee is about an annual regulatory assessment. Again, you have to pay for this one before receiving your license in your hand.
So, this is some of the information you’ll need to start a cannabis business in Michigan. If you need help with this process or have any questions about licensing your business, feel free to reach out for assistance!
