Wednesday, August 21st, 2019
On July 3, 2019, the Marijuana Regulatory Agency (MRA) issued emergency administrative rules to implement the Michigan Regulation and Taxation of Marijuana Act (MRTMA). MRTMA, as passed by Michigan voters in 2018, authorizes individuals of twenty-one years of age or more to:
While recreational use has been legal in Michigan since December 6, 2018, there still are not any legal recreational dispensaries in the state. Up until recently, the state did not have any rules or regulations in place to permit the growth, manufacturing, or sale of recreational marijuana. However, MRA’s recently released Emergency Rules change that.
Now, the MRA is set up to start accepting and processing adult-use licensing applications in November. That means that cities and townships have until November 1st to opt out of having recreational sales establishments. As of June, nearly 600 Michigan communities had already banned adult-use marijuana businesses. This number is likely to increase between now and November as local governments make final decisions.
Recreational marijuana businesses will not be able to set up shop in areas that have already or choose to opt out before November 1st. For areas that do not opt out, adult-use marijuana businesses will need to comply with the MRA’s two-step application process. The first step, pre-qualification, allows applicants to determine if they have state approval before they invest in property, buildings, or equipment. The second step, license application, will allow applicants to indicate which type of adult-use marijuana establishment license is being sought and must include plans for a marijuana establishment located in a municipality that does not have an ordinance in place which would preclude the business.
Here are a few key take-aways from the Emergency Rules:
New license options include:
Businesses should take great care to follow the new licensing requirements. The Emergency Rules will be in effect for at least six months. If you need assistance with your business ventures in this new market, please contact us.
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