Prop One Passed and I Want A License to Sell Recreational Marihuana – What Do I Have to Do?

Recreational Cannabis Licenses

So, the citizens have spoken and now recreational marihuana possession and usage are going to be legal in Michigan (they’re not quite yet, as detailed in our blog site Proposal One Passed! What’s Next? What’s Legal?). Bear in mind, the passage of Proposal One does not change the fact that marijuana is still a schedule one drug, and it is illegal to have or utilize marihuana for any factor under Federal Law, and doing so could result in Federal charges. While that is unlikely to happen, it is still a possibility, and everybody must know it just the same. Beginning December 6, 2018 (though it might be a few days quicker depending on when the vote is officially certified by the State), people twenty-one (21) and older can possess and use cannabis, as long as you remain within the requirements of the brand-new statute. Nevertheless, the genuine concern for many company owner and investors has become, how do I get a commercial license in Michigan’s recreational marijuana market? Much of that response is still murky, however there are methods to guarantee preparedness when entering the marketplace.

What We understand

Proposal One has actually set out some basic requirements for obtaining licensing. First, the State has 1 year from the date the vote is certified to release administrative rules and guidelines, in addition to an application for commercial recreational cannabis licenses. For at least two years after the application and guidelines are released, the State will only consider applications from individuals or company entities that have actually acquired a commercial license in the medical marihuana market under the Medical Marihuana Facilities Licensing Act (MMFLA). There

will be 6 (6) license types under Proposal One’s plan: growers, processors, retail stores, safety compliance facilities, secured transporters and a brand-new marihuana microbusiness. There will be 3 classes of recreational marihuana grow licenses, allowing growers a specific number of plants depending upon class type. Proposal One will also permit stacking comparable license types, along with certain various license types together at one area, as is allowed under the MMFLA. The new license type, the marihuana microbusiness, will allow for owners to acquire one license for a marihuana microbusiness (though that may alter after three years). The microbusiness license will permit the growing of up to one-hundred (100) plants, a small processing facility, and a retail store at the same area. However, under the language of Proposal One, the store will not have the ability to bring in marihuana to process or offer from other retailers, growers or processors, and will not be able to sell its items any where else. We also know that, in reality, it will be at least a year before the State starts issuing any licenses.

What’s Still Up in the Air?

The vital concerns that stay unanswered include the regulatory structure the State will eventually put into place relating to commercial recreational licenses, and which towns are going to opt- in with regard to allowing these facilities within their boundaries. There is a great deal of speculation about the recreational application process and recreational cannabis administrative guidelines, and the probability that they will be similar to what is presently in place for commercial medical marihuana licenses. The State has actually not formally specified a position or provided any information about what they plan to do in this regard. While it is a solid bet that the rules the State has developed for medical marihuana facilities licensing will be influential on the final regulations relating to recreational commercial licensing, the better bet is that there will be additional regulations and requirements that are not discovered in the present medical licensing structure that will be added to the recreational licensing structure.

Further complicating things is that, similar to the MMFLA, cities, towns and villages will need to individually opt-in to Proposal One’s plan and affirmatively accept that they desire recreational cannabis businesses within their municipal boundaries. Each of the opted-in towns will then have to develop regulations to figure out zoning, areas and variety of these facilities that they are willing to permit. While numerous cities that have opted-in to the MMFLA and likely will also opt-in to Proposal One and recreational marihuana facilities, not all of them will. As a result, preparing in this regard is likewise important. Understanding which municipalities opted-in on their own vote, and which ones were opted-in by voter initiative. Until cities, towns and towns begin taking affirmative action to opt-in or out, which is most likely to begin prior to the issuance of State publication of the application and policies, where these facilities will be allowed to find will be up in the air.

What Can I Do Now to Help My Chances

Most importantly, start dealing with your strategy now. Even if you do not have a medical marihuana facilities license yet, there is time to get one, even prior to the State starts accepting applications for recreational licenses. Partnering with us, or even another experienced company, gives you the best opportunity, due to the fact that we can take a seat with you, explain the legal roadmap you will have to browse, and discuss finest practices and procedures to utilize to put you in the best position to acquire both a medical marihuana and a recreational marihuana facilities license. The procedure will not be easy. Planning now and getting everything prepared, and adjusting as the guidelines change and municipalities choose whether to opt-in or opt-out, will give you the very best chance for a license. A number of the businesses that have not received licenses in the medical marihuana industry have actually stopped working because of bad planning and failures to effectively disclose either monetary background problems or criminal history problems. Great preparation, beforehand, can avoid those mistakes and guarantee that your license is

evaluated rapidly and without the issues that we have actually seen in applications sent by other offices on behalf of clients.

The best thing you can do, is schedule an assessment and talk about how you can put your strategy together. There is a definite path, with stringent borders, that leads to getting a license in Michigan. A skilled partner, like us, can help you figure out those requirements, and present you in the very best light possible when it pertains to consideration of your application. We can also assist prepare you beforehand for execution of recreational licensing, and can assist begin preparing you now, for what will be happening down the road.