The State of Michigan has passed acts HB4209 & HB4827, developing a controlled system concerning the cultivation and distribution of marijuana. These acts implement a highly regulated system that includes: seed-to-sale tracking throughout the cultivation process, transportation, and sale to legal medical marijuana patients.
Licenses under the new law will be available late 2017. With the passing of HB4209, the Medical Marijuana Facilities Licensing Act mandates municipalities to establish and pass ordinances regarding the establishment and operation of medical marijuana facilities in their respective communities before the state will license facilities there.
All medical marijuana facilities will be licensed by the State of Michigan; all marijuana will be tracked from seed to sale; all licensees are required to employ security systems, as well as inventory control systems that have the ability to provide the state with real time access; all marijuana will be tested for safety; retail locations will be connected to a real time state inventory tracking system that will monitor the purchase of marijuana to ensure it does not exceed state limitations; all marijuana licenses owners will be subject to thorough background checks; and all marijuana is to be transported by a Secure Transporter licensee that will be responsible for security, traceability, and accountability of the product under the most stringent of state rules.
The Department of Licensing and Regulatory Affairs, LARA, has been tasked with creating administrative rules to ensure public safety and confidentiality as marijuana licenses are issued. LARA has established the Michigan Medical Marihuana Program, a state registry program within the Special Programs Division in the Bureau of Professional Licensing and Regulatory Affairs.
More on Municipalities
Because municipalities are required to pass legislation regarding the establishment of medical marijuana facilities, they will have ultimate control of the establishment of said facilities in areas under their jurisdiction.
For instance, a municipality can decline the establishment of all and any medical marijuana facilities. Similarly, they can regulate it as well—allowing growing and processing licenses, but refusing dispensaries.
Seed-to-Sale Tracking
All marijuana is to be tracked, as the Medical Marijuana Facilities Licensing Act puts it, from “seed to sale.”
Subsequently, the new laws require the tracking of all marijuana on a 24/7, 365 days-a-year basis to ensure that only registered patients are purchasing marijuana and that their purchases coincide with state limitations.
Michigan Medical Marihuana Program—LARA
As mentioned earlier, LARA has established the Michigan Medical Marihuana Program, a state registry program within the Special Programs Division in the Bureau of Professional Licensing and Regulatory Affairs. The division will be responsible for the issuing of licenses and the regulation of marijuana growth, processing, testing, and transportation.
Furthermore, the division will be responsible for enforcing the regulatory system as established for the latter as they relate to the Medical Marijuana Facilities Licensing Act. Despite having significant sovereignty over the creation of rules to enforce the regulations established by the MMFLA, the act specifically denies the division to create any sort of limitation on the number or type of licenses that may be issued—this authority is left to the individual municipalities.
The Five Licenses
There are five licenses that can be issued under the Medical Marijuana Facilities Licensing Act:
1. Grower
Class A: 1 to 500 plants
Class B: 500 to 1,000 plants
Class C: 1,000 to 1,500 plants
2. Processor (Extraction/Manufacturing)
3. Provisioning Center (Dispensaires)
4. Secure Transportation
5. Safety Compliance Facility (Independent Testing Laboratory)
Recall that municipalities may approve one, none, or all types of marijuana facilities. Under the MMFLA, no medical marijuana facility is to be issued a license until the municipality has adopted legislation authorizing that particular facility.
Additionally, a grower’s license applicant will not receive state approval unless located in an area zoned for Industrial or Agricultural use, or in an unzoned area.
The act does not outline zoning requirements for Processors, Provisioning Centers, Secure Transporters, or Safety Compliance Facilities, nor is the state expected to provide municipalities with guidelines for the establishment of regulations as they relate to zoning ordinances.
Upon receiving an application for a medical marijuana facility, the state will request the following from the municipality: the local ordinance that authorizes the marijuana facility, any zoning regulations applicable to the proposed facility, and a description of any violation of the authorizing or zoning ordinance by the applicant, if any.
Also, applicants wishing to operate a medical marijuana facility must notify the municipality by registered mail within ten days of submitting an application to the state.
Local Revenue
The Medical Marijuana Facilities Licensing Act constructs the Medical Marijuana Excise Fund, too. As a result, 60% of the funds are disseminated locally—municipalities in which medical marijuana facilities are located are allocated 25%, the remaining 35% is received by the counties in which facilities reside, 5% specifically designated to the County Sheriff.
The Future of Medical Marijuana Regulations
The State of Michigan is in the midst of creating a framework to establish the following:
- Standards for facilities and equipment.
- Minimum levels of insurances for licensees
- Operating regulations for each classification of license that ensures health, safety, and security of the product and facility operations.
- Testing standards.
- Minimum qualifications and restrictions for persons involved in the operation of marijuana facilities.
- Standards for the cultivation, manufacturing, secure transportation, storage, and sale of marijuana.
- Packaging and labeling standards.
- Daily purchase limitations.
- Advertising and marketing restrictions.
- Maximum THC limitations for infused products (edibles, extracts).
- Waste management, quality control, and chain of custody standards.
- Statewide tracking of all marijuana.
Qualifying Patients
The Michigan Medical Marijuana Act specifically defines a “qualifying patent.” Describing them as a person who has been diagnosed by a physician as having a debilitating medical condition. The following medical conditions qualify as “debilitating” under the MMMA:
Specifically listed:
- Cancer
- Glaucoma
- HIV
- Hepatitis C
- Amyotrophic lateral sclerosis (ALS, commonly known as Lou Gehrig’s disease)
- Crohn’s disease
- Alzheimer’s disease
- Nail-patella syndrome
Not specifically listed, but authorized:
- Cachexia (wasting syndrome)
- Chronic pain
- Multiple sclerosis
- Seizures
- Severe and persistent muscle spasms
Attorney Todd L. Levitt has handled hundreds of cannabis related cases over his 23 year career. His experience in handling criminal cases has allowed him to develop a unique and unmatched expertise in all areas regarding marijuana law, particularly in the state of Michigan. His continuous study of marijuana law and his commitment to staying up to date with the latest developments in the industry engenders a knowledge of cannabis that separates him from the everyday lawyer. Whether it be a case that needs defending or you seek to enter the business of cannabis, Attorney Todd L. Levitt provides you with the expertise necessary to get on the right track.
For a free consultation, call Attorney Todd L. Levitt at 989-772-6000.