The Medical Marijuana Facilities Licensing Act (MMFLA; PA 281 of 2016) establishes a regulatory framework around medicinal marihuana, treating it like the commodity it is. The regulatory framework draws on elements of the regulatory structures in place for alcohol under the Michigan Liquor Control Code and for gaming under the Michigan Gaming Control and Revenue Act. Under the MMFLA, businesses can grow, transport, test, process, and sell medical marihuana, as long as they are sited in and permitted by an approving municipality, obtain a state license, and follow the legal requirements set forth in the Act.
Employee restrictions – Licensee employers are required to perform a background check on prospective employees. If this check indicates that a prospective employee has a pending charge or conviction for a controlled substance-related felony within the past 10 years, the licensee must obtain permission from the Board before hiring the prospective employee.
Transfer of license ownership – A license is a revocable privilege granted by the State of Michigan, not a property right. Licenses are exclusive to the licensee. Attempted transfer, sale, or conveyance of an interest of more than 1% must be approved by the Board.
License Term and Renewal – Licenses are issued for a 1-year period, renewed annually.
Allows for the sale of marihuana and marihuana-infused products to patients and caregivers. A Provisioning Center is a licensed commercial entity that purchases marihuana from a grower or processor and sells, supplies, or provides marihuana to patients, directly or through the patient’s caregiver. The term includes any commercial property where marihuana is sold at retail to patients or caregivers.
Assessed a 3% state excise tax on gross sales receipts
Provisioning Center License Requirements
Applicant, and each investor in the Provisioning Center must not have an interest in a secure transporter or safety compliance facility.
Before all sales, must identify whether the patient or caregiver holds a valid, current, unexpired, and unrevoked registry identification card and that the sale will not exceed the daily purchasing limit and the maximum THC levels for medical edibles.
No sale of alcohol or tobacco on the premises.
Not allow a physician to conduct medical examinations or issue medical certification documents on the premises for purposes of obtaining a registry identification card.
Allows for the storage and transportation of marijuana between licensed facilities. A Secure Transporter is a licensed commercial entity that stores, transfers, and transports marihuana between separate marihuana facilities for a fee. Only these entities can transport marihuana in the regulated system. A transporter does not transport marihuana to a patient or caregiver.
Secure Transporter License Requirements
Cannot have an interest in any other type of license
Cannot be a qualifying patient or primary caregiver
Each driver must have a chauffeur’s license
Must not employ anyone who has a felony conviction or has been released from incarceration for a felony within the past 5 years
Must not employ anyone who has a misdemeanor conviction involving controlled substances within the past 5 years
A Safety Compliance Center is a licensed commercial entity that receives marihuana from a marihuana facility or a registered primary caregiver, tests it for contaminants and for tetrahydrocannabinol and other cannabinoids, returns the test results, and may return the marihuana to the marihuana facility.
Safety Compliance Center License Requirements
Must be accredited by an entity approved by the Board
Cannot have an interest in any other type of license
Equipped to perform necessary tests
Have a secure laboratory space
Employ at least 1 staff member with a relevant advanced degree in medical or laboratory science
A Processor is a licensed commercial facility that purchases marihuana from a grower and extracts resin from the marihuana or creates a marihuana-infused product for sale and transfer in packaged form to a provisioning center.
Processor License Requirements
A processor cannot be a registered caregiver or employ someone who is registered caregiver
A processor cannot have an interest in a secure transporter or a safety compliance facility.
A Grower is licensed to cultivate, dry, trim, or cure and package marihuana for sale to a processor or provisioning center. A Grower cannot be a registered primary caregiver. There are three levels of Grower license based on the amount of product grown.
Grower License Requirements
Applicant, and each investor in the grower, must not have an interest in a secure transporter or safety compliance facility
Must employ an individual with a minimum of 2 years’ experience as a caregiver (This restriction ends after December 31, 2021)
The licensee must not be an active caregiver and must not employ an active caregiver
Cultivation must occur in industrial or agricultural zoned areas, or in unzoned areas that meet local ordinance requirements
Regulatory Assessment – The Act creates a regulatory assessment, collected annually from all licensees except safety compliance facilities. The assessment is allocated in proportion to all licensees.
Marihuana Regulatory Fund – The Act creates a regulatory fund to be used to support the implementation, administration, and enforcement of the MMFLA.
Monitoring – The Act requires the creation of a Statewide Monitoring System, which is designed for law enforcement and state personnel to do the following on a 24 hour basis:
The Act requires all licensees to adopt and use a Third-Party Inventory Control and Tracking System capable of interfacing with the statewide monitoring system to allow the licensee to enter or access information in the system as required in the act and rules. The tracking system must have the capability to track:
Protected Activities – In general, a person granted a state operating license who is operating within the scope of the license, and the licensee’s agents, will not be subject to state or local criminal penalties regulating marihuana; state or local criminal or civil prosecution for marihuana-related offenses; certain searches or inspections; seizure of marihuana, real or personal property, or anything of value based on a marihuana-related offense; or license or other sanctions by a business, occupational, or professional licensing board or bureau based on a marihuana-related offense. However, a marihuana facility, and all articles of property within it, are subject to examination at any time by a local police agency or the Michigan State Police.
Medical Marihuana Licensing Board – The Act creates a 5-member Medical Marihuana Licensing Board within LARA. The Board is responsible for granting and denying applications, conducting meetings, working with LARA to promulgate rules, oversee facilities, investigate issues, disciplinary action against licensees, and determining the application fees and regulatory assessments. The Board cannot cap the number of licenses issued by the State.
On May 26, 2017, Governor Snyder made the first appointments to the Board: