10 Things You Need To Know Before Opening A Marihuana Provisioning Center

You might be considering starting a marihuana provisioning center in Michigan. Now, after the passage of the Medical Marihuana Facilities Licensing Act or the MMFLA (M.C.L. 333.27401 et seq.) that is possible, but only if you get municipal approval and a State issued operations license. "Provisioning Center" is the legally permissible term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was previously referred to informally as a "dispensary." The current policies no longer allow such companies to be referred to legally as "dispensaries" and the State requires that they be referred to as marihuana provisioning centers. A provisioning center is essentially a business where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) can come to acquire medical marihuana for medical use. While a provisioning center can be a lucrative venture, there are a few things you to know before you move forward.

Can You Transport Marijuana In A Private Car?

Presently, under Michigan law, the basic guideline is that possession and transport of marihuana in a car is restricted by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA can transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Cannabis may only transferred in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or persons in the traveler compartment. You might likewise not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for up to 5 patients (and themselves also if the caregiver is also a qualifying patient) or as much as 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, nevertheless, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their center that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located ( connected to or on the same property) and transport of the marihuana will not take place on a public street, it can be moved as stated by LARA, BMMR under the Administrative rules.

How Much Cannabis Can You Offer?

A licensed provisioning center under the MMFLA may not sell more than 2.5 ounces of marihuana per day to a registered qualifying patient. A provisioning center that is licensed may likewise offer to a registered primary caregiver, however not more than 2.5 ounces per qualifying patient attached to the caregiver's license. If you are licensed by the State to operate a provisioning center, you will have to use a point of sale system that has software that is complaint with the Statewide Monitoring Database, which utilizes a software program called METRC. The State allows making use of twenty-four (24) software programs that are METRC compliant. Every client who goes into a provisioning center, you will have to use a point of sale system that has software that is compliant. Every customer who goes into a provisioning center has to have their card run through the Statewide Monitoring Database to ensure that they have not already been provided their maximum daily allotment of 2.5 ounces from another licensed provisioning center. A provisioning center needs to likewise update the qualifying patient's profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was acquired by the patient at your provisioning center.

What License Do You Need?

You need a full license provided by the state to run as a Michigan provisioning center. If you are growing marijuana, you will likewise require to ensure that you obtain a Michigan commercial grow license application. You may want to talk to an MMFLA legal representative, such as Fowler & Williams, PLC, about this to guarantee that you are fully licensed, or you will be closed down. Most importantly, DO NOT begin running your provisioning center without a State license being issued to you under the MMFLA. While the process of obtaining a license is intricate and needs a substantial quantity of time and money, the profitability of these provisioning centers far exceeds the expense of obtaining one. If you can qualify for a license and make it through the application process to get a provisioning center license, you ought to do so before you begin operating.

Can You Get More Than One License?

Yes, you can apply and get approved for more than one license. This is useful for any business or person who wants to set up a provisioning center and a grow or processor at the same time. According to the law, there is nothing stopping you from doing this. Even more, you can obtain multiple provisioning center licenses so that you can operate numerous provisioning centers in various cities. The licenses do not attach to the individual or the business that is applying, permitting you to use it anywhere you want. Rather, the licenses connect to the property you provide on your application for the business. Therefore, if you want to open several provisioning centers, you will have to send several State applications. If you desire to obtain different kinds of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, however you need to submit separate applications for each license type, and must meet the minimum monetary and background requirements separately for each license type.

How Much Will A License Cost?

The cost for the license application to the State is $6,000.00 per application, regardless of license type applied for, including for a provisioning center. There are also municipal application costs, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge various fees, and they can vary the charges depending upon which kind of license you apply for. Typically, however, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you receive a State license, there are regulatory assessments that have to be paid annually, both after issuance and each year after when the license is renewed.

In 2018, the assessments differ.

Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 0.00).

Class A Growers have a $10,000.00 regulatory assessment.

Class B and Class C Growers, Provisioning Centers and Processors have a $48,000.00 regulatory assessment.

The State has said that beginning in 2019 there will be a standardized regulatory assessment that will apply to all license holders, no matter the kind of license issued. For now, nevertheless, the assessments will remain as noted above. You will also discover that there are other professional costs that you will need to pay in order to make sure that your application is complete, and that your business plan, with all of its required parts, is up to par with the State's application requests. Those expenses can vary significantly, and are hard to predict.

Needless to say, the application and licensing process is an pricey undertaking, however in a market that is slated to do about $891,000,000.00 in annual sales this year, up from about $741,000,000.00 in 2017, the return on investment might be considerable.

Should You Have A Attorney?

While not mandatory, you should certainly make certain that you are obtaining guidance from an MMFLA lawyer before you consider opening a Michigan provisioning center. It  is very important that you get the best possible legal guidance and that you are following all the regulations and requirements. Only an lawyer experienced in handling cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can make sure that you have all the tools and guidance that you need to give your application the best possibility at success. Failure to make certain that your application is complete, and that it provides support for your capability to currently comply and make sure future compliance with the Administrative rules, your application is far more likely to be declined or denied, and your dream of opening a provisioning center brought to an unceremonious ending.

How Much Will This Business Cost?

You can anticipate the overall start-up fees for this kind of service to be anywhere in between 400 and 500K, at a minimum. While the State needs a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not be sufficient, realistically, to begin business. You will need to potentially buy land or property in an opted-in municipality. (Here is an up to date list of Michigan Municipalities currently opted-in to MMFLA) There will be obligatory fees, expenses, and professional services that you need to get to guarantee that your application is accurate and complete, and to make sure that you are presently in compliance with all laws and policies, along with guaranteeing future compliance. This consists of everything from licensing to a complete group of employees and much more. It's certainly not inexpensive, and you need to be prepared for a heavy investment. However, as noted above, the market is large, and continuing to grow.

Can You Go Mobile?

No, you can not run a mobile provisioning center as it is presently illegal to operate one in the state of Michigan. However, this could change, which's why it  is very important to speak with a medical marihuana attorney routinely, so that you are keeping up to date with modifications to the law. Cannabis law is an evolving and changing field, and as a outcome, there might come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.

What Are You Lawfully Able To Do?

As a provisioning center, your sole function is to offer safe medical marihuana to registered qualifying patients. You may only offer marihuana or marihuana infused products that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the products have actually been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not sell these products prior to your acquiring a license, unless you were running with city approval prior to February 15, 2018 and you have actually already sent an application to the State looking for a license.

Soon a change in law will likely allow for recreational marijuana sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility guidelines and begins accepting licensing applications, only centers licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be legally allowed to obtain recreational marihuana licenses for the same activity. Hence, getting a provisioning center license under the MMFLA, provides you the chance to get in the recreational market, where others will not.

What Are The Requirements?

In order to request a provisioning center license, you need to guarantee that you do not have a disqualifying criminal conviction, and that you fulfill the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will likewise have to acquire an appropriately zoned building in a city or municipality that has "opted-in" to the MMFLA to permit such facilities to operate within their boundaries. Whether your own it or rent it does not matter, but you need to have the building. After that, you will need to produce a business plan that contains all of the necessary aspects from the state, including a security plan, facility plan, marketing plan, staffing plan, technology plan, recordkeeping plan, waste disposal plan, and more, showing that you will adhere to the State's regulations now and in the future.

Conclusion

We hope this supplies you with some of the info you need prior to opening a Michigan provisioning center. Needless to say, the procedure is pricey, complex and time consuming, however the benefit and ROI can be significant. In reality, getting a skilled MMFLA and MMMA lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take most of the work off your plate.

If you want info, or want to come in and speak about making an application for a provisioning center license, we would enjoy to have you come in for a consultation.

provision center