How to Start a Marijuana Business in Michigan
What type of business can I legally operate?
Governor Snyder signed into law the “medical marihuana facilities licensing act” which allows an individual or corporation to apply for one of the following:
- A grower license authorizes the grower to grow not more than the following number of marihuana plants under the indicated license class for each license the grower holds in that class: (a) Class A – 500 marihuana plants.
(b) Class B – 1,000 marihuana plants.
(c) Class C – 1,500 marihuana plants.
(2) A processor license authorizes purchase of marihuana only from a grower and sale of marihuana-infused products or marihuana only to a provisioning center. A processor license authorizes the processor to transfer marihuana only by means of a secure transporter.
(3) A secure transporter license authorizes the licensee to store and transport marihuana and money associated with the purchase or sale of marihuana between marihuana facilities for a fee upon request of a person with legal custody of that marihuana or money. It does not authorize transport to a registered qualifying patient or registered primary caregiver.
(4) A provisioning center license authorizes the purchase or transfer of marihuana only from a grower or processor and sale or transfer to only a registered qualifying patient or registered primary caregiver. All transfers of marihuana to a provisioning center from a separate marihuana facility shall be by means of a secure transporter. A provisioning center license authorizes the provisioning center to transfer marihuana to or from a safety compliance facility for testing by means of a secure transporter.
(5) A safety compliance facility license authorizes the facility to receive marihuana from, test marihuana for, and return marihuana to only a marihuana facility.
Hire an attorney who specializes in Cannabis Law. The cost you would pay to hire a lawyer up front would pale in comparison to what it could cost you down the road for non-compliance.
Demographics: Local municipalities have control over how many facilities will operate in their respective communities. Again, an experienced lawyer can work with local zoning and planning commissioners. Landlords may or may not be willing to lease to cannabis businesses. Also, the law sets restrictions regarding how close your business can operate within schools and neighborhoods.
Brand Identity: Create a brand for your business model that the public comes to trust as quality and professional. Branding involves developing a name for your business or product that customers will become familiar with. You are giving birth to an idea that will represent your values and come to symbolize your business. Designing a logo is one of the most important parts of launching a new business. Together, with the logo, you will need a web presence which includes a web site, social media and other mediums to promote your new brand. A few law firms, such as, Levitt Law Firm, will assist you with all your business needs including branding. Attorney, Todd L. Levitt, taught brand identity and marketing at Central Michigan University College of Business. Levitt’s firm, will assist you in obtaining a license and all your corporate needs. Visit www.centralmichiganlawyer.com.
Do I qualify for a license?
An applicant is ineligible to receive a license if any of the following circumstances exist:
(a) The applicant has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States within the past 10 years or has been convicted of a controlled substance-related felony within the past 10 years.
(b) Within the past 5 years the applicant has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state or been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state.
(c) The applicant has knowingly submitted an application for a license under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant fails to demonstrate the applicant’s ability to maintain adequate premises liability and casualty insurance for its proposed marihuana facility.
(f) The applicant holds an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government; or is employed by a governmental unit of this state. This subdivision does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.
(g) The applicant, if an individual, has been a resident of this state for less than a continuous 2-year period immediately preceding the date of filing the application. The requirements in this subdivision do not apply after June 30, 2018.
(h) The board determines that the applicant is not in compliance with section 205(1).
(i) The applicant fails to meet other criteria established by rule.
(3) In determining whether to grant a license to an applicant, the board may also consider all of the following:
(a) The integrity, moral character, and reputation; personal and business probity; financial ability and experience; and responsibility or means to operate or maintain a marihuana facility of the applicant and of any other person that either:
(i) Controls, directly or indirectly, the applicant.
(ii) Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.
(b) The financial ability of the applicant to purchase and maintain adequate liability and casualty insurance.
(c) The sources and total amount of the applicant’s capitalization to operate and maintain the proposed marihuana facility.
(d) Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning, or had expunged any relevant criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations, regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise.
(e) Whether the applicant has filed, or had filed against it, a proceeding for bankruptcy within the past 7 years.
(f) Whether the applicant has been served with a complaint or other notice filed with any public body regarding payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.
(g) Whether the applicant has a history of noncompliance with any regulatory requirements in this state or any other jurisdiction.
(h) Whether at the time of application the applicant is a defendant in litigation involving its business practices.
(i) Whether the applicant meets other standards in rules applicable to the license category.
(4) Each applicant shall submit with its application, on forms provided by the board, a passport quality photograph and 1 set of fingerprints for each person having any ownership interest in the marihuana facility and each person who is an officer, director, or managerial employee of the applicant. The department may designate an entity.
With over 22 years of experience with marihuana law, Levitt Law Firm can help you and your new business flourish by providing the follow services:
- All Required Compliance Documents and Standard Operating Procedures
- Articles of Incorporation Set-Up
- Assistance with Banking, Accounting and Financial Transactions
- Brand Creation, Identity and Management
- Business Corporation Entity
- Business and Operations Consulting
- Business Development and Planning
- Compliance with State Law
- Compliance with Local Municipal Zoning and Ordinances
- Corporate Operating Agreements
- Cultivation Quality Control and Testing
- Employee Background Checks
- Internal Management and Employment Agreements
- Legal Representation
- Marketing, Branding and Search Engine Optimization
- Michigan Department of Health Registration
- Obtaining a Federal Tax Employment Number
- Obtaining a Marijuana Business License in Compliance with Marijuana Laws
- Security Planning in Compliance with Marijuana Law
- Training Programs for Employees
- Transportation Logistics and Distribution Services
- Website Servicing
Entering and traversing the world of business can be difficult. By contacting Attorney Todd L. Levitt, and attorney Robert J. Piziali, you’re providing your business with the opportunity to flourish in Michigan’s ever-growing marijuana industry. Call Levitt Law firm at 989-772-6000 for a free consultation.