state seal of Michigan, we now have adult-use marijuana in the state

Michigan Adult-Use Marijuana Ramps Up. Time to Act!

It’s almost here! Less than a month to go until applications can be submitted to the Marijuana Regulatory Agency (MRA) for licensure under the Michigan Adult-Use Marijuana Law. The Emergency Rules are in place.  If all goes according to the Agency’s plans, and Executive Director Brisbo’s statements, applications will be accepted by the MRA starting on Friday, November 1, 2019.  Who will be the first to hit the “send” button at one second after midnight?

Keep in mind, only Medical Marijuana Facility Licensing Act (MMFLA) licensees and applicants for Class A Grow and for Micro Business licenses may hit that button then.

We expect to see much more activity in Michigan’s Adult-Use marijuana scene in the next four weeks for sales of 10 percent or less interests in the existing MMFLA licenses or those which might yet be licensed in October, as well as sales of existing licensees to pre-qualified entities and individuals.  There will be a lot of jockeying to be first in line for Michigan’s Adult-Use Marijuana  License.

With respect to the Michigan Regulation and Taxation of Marijuana Act (MRTMA) did you know:

  • That home delivery of adult-use marijuana product is allowable, and that “home delivery” includes delivery to a Designated Consumption Establishment.
  • There are no minimum capitalization requirements for Adult-Use Licenses.
  • The Agency is required by law to make a decision on each licensing application within 90 days of receiving a complete application. The Agency suggests using the two-step application submission process akin to MMFLA in order to avoid triggering the 90 days by sending in a Part 2 without it being “complete.”
  • Every Adult-Use Application will have to have a Social Equity Plan submitted with it. This is applicable even if the facility location is not in one of the designated communities.  Consultants are available to assist in preparation of the Plans if you are not willing or able to do so.
  • Even though the MRTMA Prop 1 law limits Class C Grower licenses to five by one owner, the Emergency Rules allow that number to be exceeded under what is now known as the Excess Grower License.
  • A MRTMA provision prohibits consuming marijuana in a public place or smoking marijuana where prohibited by the person who owns, occupies, or manages the property. If you own a condominium, can you smoke on the “common elements” since you are an owner of them?
  • Does MRTMA override the provision of the MMMA amendment which allows a Landlord to restrict smoking in a leased apartment or house?
  • Keep in mind, MRTMA specifically provides, “that a lease agreement may not prohibit a tenant from lawfully possessing and consuming marijuana by means other than smoking.” But what about a condominium association, a homeowner’s association or the developer of either, or an Airbnb?  Wait until the courts face this one, especially the Landlord/Tenant courts.yes to Prop 1 logo, which was used to legalize adult-use marijuana in Michigan

Bulletin:  Yesterday afternoon the Agency issued the MRTMA application forms and a related handbook.  This industry is now ready to roll.  If you are an MMFLA licensee and have not yet seen those materials, contact the state or one of the Cannalex attorneys.  If you are thinking about obtaining a MRTMA license in the future, you should look at those materials now to be prepared when the time comes for submission of the application forms.  Keep in mind for planning purposes, the State can reduce the two-year lockout down to one year so it might be that on November 1, 2020 the State may begin accepting MRTMA licenses from everyone.  Plan ahead.  If you need assistance give us a call.