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Learn your next steps in your cannabis business. You can see the button on the lower right works even on desktop. The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Ensure that you mention precisely the cannabis product that you want to sell and its properties. How do I update my name on my registry card? Unlicensed sale of any amount of marijuana is a felony. However, if your business is involved in any of the following activities defined in PA 547 of 2014, as amended, a license would be required: Processing - Converting raw industrial hemp into a marketable form. Also, many times there are, apart from the States laws, local regulations that you have to pay attention too. The application fees are around $6,000. The state tax requirements in medical marijuana in Michigan is 6% sales and use tax. Dont miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them. How do I update my address on my registry card? Although medical marijuana has been legal in Michigan since 2008, there was no allowance for dispensaries; however, the new legislation set up a framework for the licensing and operating of medical marijuana dispensaries, which Michigan refers to as provisioning centers, along with adult-use retail stores. The term provisioning center includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers. What this means is that these companies, and many larger private companies, value dispensaries strictly on revenue or sometimes EBIDTA multiples. 50% of the licenses have been reserved for Detroit legacy applicants who have lived in the city for 10 of the past 30 years and may have a marijuana conviction or for 13 of the past 30 years and are categorized as low-income. Avoid showing up to a cannabis dispensary without a meeting. If you grow hemp and want to sell harvested hemp to a licensed hemp or marijuana processor, you may do so under your grower registration. At Michigan Cannabis Properties, we work with data driven consultants that can come in and drive additional revenue to your dispensary in anticipation of eventually selling your dispensary. Beginning March 1, 2021, the MRA will end the requirement to hold a medical Provisioning Center license first, and open applications to everyone, with discounts for social equity qualifying applicants. A provisioning center may offer home delivery once the facility's delivery procedures have been provided to and approved by the MRA. In Michigan, the location is essential for the prosperity of your business since many local municipalities can choose to ban or limit the number of businesses. As with most things in life, timing is key; this is the same for the cannabis real estate industry, yet it is one of the most overlooked factors in determining the price you will get for your dispensary. This will likely change in when this Act is updated. Who is eligible to be an employee for a licensed facility? Once approved for a license, the initial licensure fee for an adult-use marijuana retailer is $25,000. Unless you got $100,000 plus to get state-licensed, get City approval buy a property and set up a grow. May a medical secure transporter or safety compliance facility licensee hold an ownership interest in an adult-use grower A, grower B, grower C, processor, microbusiness, or retail establishment? Is the Annual Financial Statement (AFS) report required to cover medical licenses, adult use licenses, or both? Of course, this very well may happen again. This one year old industry has annual cannabis-related sales estimated at $730 million to $875 million only in 2020, and the estimations for the following years dont disappoint either. Get updates & insights on cannabis retail regulations, trends, and technology. If you do, you may have been much better off just selling before opening, as you may have gotten a higher sale price with less investment and less hassle. How should the Annual Financial Statement report be compiled for a licensee who has multiple licenses? What is the timeline to process an adult-use application? How do I add a caregiver or change to a different caregiver? Dispensaries in a seemingly better general location may have sold for less than dispensaries in worse locations, and vice versa. Make it as easy, seamless, and convenient for them as possible. As of Dec. 1, 2019, Michiganders are able to purchase cannabis for recreational adult-use ("recreational cannabis"). Must my Annual Financial Statement (AFS) report include the financial dealings of the previous ownership that occurred during the reporting period? Can you change the license type, or number of license(s) you are prequalified for without submitting a new application? However, there is a method to the madness, as certain Michigan dispensaries knew how to best position themselves for eventual sale, or best structure the sale, while many others do not. Anyone under the age of 21 must provide a Michigan medical marijuana card. What if I do not submit my Annual Financial Statement (AFS) report by the deadline? Without disclosing all of the tricks of the trade, the data reflects that one key item is to bring in strong brands that have been proven to drive business sales, such as MKX or Platinum Vapes, as well as specialty products that excite consumers. No misdemeanors involving controlled substances within five years, No local ordinance violations within five years, Any past issue with law enforcement or legal violations, not including traffic violations. a question thats on every cannabis entrepreneurs mind. We know Detroit is looking to go adult-use, but the city cant seem to get out of its own way. The state had allowed caregivers to sell their excess cannabis to the retail market. Keep the plan accurate to make your dispensary business more successful in the long run. Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. If I change the ownership on my medical prequalification, do I need to update capitalization? Michigan adult-use cannabis retailers must: Every regulated cannabis market has its own tracking and reporting requirements. However, local municipalities may reduce this distance requirement or impose additional location requirements as they see fit. Culinary Cannabis. Can I hold a CPL license and a medical marijuana state operating license? For example, it can range from $128/sq ft to $393/sq ft. On the other hand, if you are limited to leasing the property, monthly costs for a marijuana store might run between $3,500 and $10,000 or even higher. No person shall act as a dispensary without a license issued by the Department of Consumer Protection. Will being a registered patient/caregiver affect my ability to receive an adult-use establishment license? We offer secure online consultations for long-distance patients and are . How do I update my address on my registry card? Can convicted felons apply for a license? What should I be paying for marijuana where I live? Is there a separate fee for the caregiver? These costs are not related to compliance, build out, payroll, or any of the other start up costs for your dispensary (provisioning center) in Michigan. The sale of less than 5 kilograms is punishable by up to 4 years in prison and a maximum fine of $20,000. If you or your product manufacturers are selling or marketing industrial hemp, including already processed forms of hemp oils and powders, to Michigan dispensaries, a processor-handler license is required for all that are doing so. And many of those . For retailers is $25.000 for new licences, while for provisioning centers is $44.000. What are the most common types of capitalization used in a CPA Attestation? As the legalized recreational marijuana industry continues to grow in Michigan, more and more businesses are opening for business. However, finding the best bang for your buck when it comes to marketing your business does require amixture of the right knowledge and legal experience. And they will need to be renewed annually, which includes a fee of a similar amount. The Michigan Regulation and Taxation of Marihuana Act, or "MRTMA", created a new license type for the Michigan recreational cannabis marketthe microbusiness license. The adult-use market launched on Dec. 1, 2019. Can I submit my Step 2 application at the same time as Step 1? Ohio Governor John Kasich signed HB 523 into law in June 2016, allowing for the medicinal use of marijuana by those who have a doctor's prescription. We do not have a written agreement or contract. You can see the button on the lower right works even on desktop. If you or someone you know is interested in knowing more about medical marijuana in Massachusetts and how it can benefit your overall health, call Inhale MD today at (617) 477-8886. It starts to add up real quick for just the business aspect let alone your grow inputs, https://www.michigan.gov/mra/0,9306,7-386-83746---,00.html. When filing an amendment should the entity's operating agreement/bylaws be signed? The Michigan Marijuana Regulatory Agency, or MRA for short. The buyer, on the other hand, saved half a million in upfront costs, which they could use to fully stock the inventory and for working capital. You will not need the license for sampling and testing alone. Does the MMFLA provide any protection for CPAs and financial institutions whose clients are licensed by or pursuing licensure with the state under the MMFLA? Do I have to be a caregiver for 2 years before I apply for a license under the Michigan Regulation and Taxation of Marihuana Act (MRTMA)? As has been said, unless you are a licensed cultivator, you cannot sell to dispensaries. Click "Search." 4. I plan on seeking multiple licenses from the Agency, do I have to pay the $6,000 application fee for each license? Marketing - Promoting or selling industrial hemp or an industrial hemp commodity or product, including but not limited to, efforts to advertise and gather information about the needs or preferences of potential consumers and suppliers. My Processor-Handler license expired November 30, 2021, and I have not been able to submit a renewal application yet. How do I register a minor (under the age of 18) with the Michigan Medical Marijuana Program (MMMP)? For instance, if a consumer is at home, they can possess up to 10 ounces of marijuana. From organic to exotic and everything in between, dispensaries.com has one of the most extensive list of pot cultivators on the market. The Basic Steps to Making Money Selling to Dispensaries. Feb 1, 2023. To get a marijuana business set up in Michigan, youll need to be aware of the laws and how to get licensed. In certain circumstances, they may even do it free of charge to you since we can sometimes negotiate arrangements where we pay them directly through MCP as they help drive a higher sales price, which in turn means my company gets a bigger commission. I am a vertically integrated licensee. I'm a current/prospective medical marijuana patient. While this is OK for other industries, the Michigan Medical Marijuana industry is different. The state tax requirements for medical marijuana in Michigan is 6% sales and use tax. Youll be required to provide the same information you submitted during the pre-qualification phase, with information regarding the municipality in which youll operate. The application fee must be paid before the application can be processed. Do we need a processor-handler licenser? A great location can attract a lot of interest, with groups doing their best to estimate their sales at that location and basing their offer on those estimations. Michigan restaurants and bars will now be allowed to sell to-go alcoholic beverages, thanks to a new package of bills signed by Gov. Can a Medical Marijuana Facility Licensing Act (MMFLA) licensee apply for any adult-use license type? Only sell product to individuals aged 21 years or older after the product has been tested and bears the required retail label, Enter all transactions, current inventory, and other required information into the statewide monitoring system through a third-party inventory control and tracking system such as Cova POS, Verify customers are 21 years of age or older by means of a government-issued photo ID, Verify that the sale will not exceed the transaction limits, Verification of age and validity of medical marijuana patient card, Retention of a record of the date, time, quantity, and price of each sale or transfer of cannabis, Determination of whether a particular sale or transfer will exceed the permissible limit, All cannabis plants, products, packages, purchase totals, waste, transfers, conversions, sales, and returns, Lot and batch information throughout the entire chain of custody, Complete batch recall that clearly identifies all required criteria pertaining to the specific batch subject to the recall, ID scanner for age and patient card verification, Integrated inventory and sales tracking and reporting, Built-in product equivalency conversions and purchase limit enforcement. Many of these same dispensaries are now receiving offers at a fraction of what they were receiving in 2018. This applies to both physical and online sales activities. A marijuana establishment can apply for a license as a designated consumption site. To sell marijuana to any person. Recreational use: Legal. Everything you need to know about opening a retail cannabis location in Michigan. The second step includes a review of the proposed retail establishment, including a physical inspection, as well as payment of the licensure fee once approved. Oklahoma Dispensary Laws/Washington Dispensary Laws/Colorado Dispensary Laws/California Dispensary Laws/Maine Dispensary Laws/Missouri Dispensary Laws/Michigan Dispensary Laws/Illinois Dispensary Laws/Nevada Dispensary Laws/Montana Dispensary Laws/Alaska Dispensary Laws / New Jersey Dispensary Laws. Don't drive while consuming or immediately afterward. It is required by many municipalities before even applying for a local permit. As another example, River Rouge area dispensaries are likely to have their sales cannibalized once Lincoln Park and Ecorse dispensaries open up to recreational marijuana. Many 8 Mile dispensaries were seeing eight figure offers. Michigan Cities Allowing Marijuana Businesses Aside from the licensing application documents required in Section 7, there currently are no recordkeeping requirements for hemp processor-handlers. Website links: This can really skyrocket expenses for a burgeoning business. If a wholesaler, distributor, or retailer wishes to sell topical lotions or tinctures with CBD (and less than 0.3% THC with no health claims, nutritional/caloric values), do they have to possess a processor-handler license? Do not try to pitch cannabis products to dispensaries in another state. A designated caregiver must purchase medical marijuana for patients under the age of 18. I have questions about my Growers License who do I contact? Yes. All rights reserved. How are tags produced for seed-to-seed tracking? I want to grow and possess my own plants. A business plan for a marijuana dispensary requires knowledge about the right location and proper requirements at the place of operation. operating under the MRTMA; or both. Besides the cost of opening a dispensary, other expenses exist - and these will impact your profit margin. Class A is a Grower license for 500 marijuana plants, Class B is a Grower license for 1,000 marijuana plants, and. The attempted transfer, sale, or other conveyance of interest without Agency approval is grounds for suspension, revocation, or other appropriate sanction, A Class A Grower is a type of license available in Michigan for growing up to 500 marijuana plants. When you work out the numbers, the seller would have received closer to $1.15M, or an extra $300,000, with seller financing. Applying for an Adult-Use License? And here's a pro tip: Definitely don't wait in line at the dispensary, then waste the budtender's time by trying to engage about the best way to reach the cannabis buyer. If the product is from out of state, has the lab and the product met that state's requirements for licensure, lab accreditation, and testing? The Board had previously set, when the law first passed in 2019, as requirements for dispensary owners the following criteria: However, they are currently amending the requirements set on their webpage, which could potentially mean that they are making some changes to the applicability of those wanting to get a Cannabis license in Michigan. Does this qualify me for an adult-use marijuana establishment license? How is your plant count determined as it affects your growing limited as a Class A, B, or C Grower Licenses? I am unable to follow a procedure as specified. I am a Certified Public Accountant (CPA) conducting the Agreed-Upon Procedures report. Do I still need to report this on P8 Schedule of Outsourced Services? Those prices are then getting passed on to customers. Go to one of Michigan's many recreational weed dispensaries, located throughout the state. As a Michigan cannabis real estate broker, I have worked on deals on the seller side where I was shocked to discover that anyone would agree to pay that amount. Below, weve provided answers to as many questions as possible concerning cannabis retail licensing and dispensary laws in Michigan, and we will continue to update this page regularly as new details emerge. They could go from license application requirements, to the local-wide limit of accepted number of dispensaries in the zone. By the beginning of 2020, both Illinois and Michigan dispensaries will be freely selling marijuana. Think of selling to a dispensary as you would with any product to a store. Watch out for real estate costs, which can really become the largest aspect of the provisioning center. Yes. I know you need a license to grow, however, since I will be the one selling would I need a license myself? Prior to that, the state had very strict marijuana laws for non-medical users. Business specifications may include an estimated open date for your dispensary; Proof of premises ownership or a lease agreement; Estimated gross annual income; A marijuana facility plan; A cannabis retail marketing plan; A cannabis product inventory and record keeping plan. How do I register as a patient (over age 18) with the Michigan Medical Marijuana Program (MMMP)? Marijuana dispensaries in Michigan are permitted to sell both medicinal and recreational marijuana to anyone over the age of 21 with a valid I.D. May a medical grower, processor, or provisioning center facility hold an ownership interest in an adult-use secure transporter, safety compliance facility, or a microbusiness establishment? These are the costs for New York cannabis dispensary real estate: Buying a property outright can vary wildly. Do such products need to be registered? How do I know if my Annual Financial Statement (AFS) Report has been approved? Can my application and physician certification serve as a temporary registration card? You want to make sure to have the assistance of an experienced licencing lawyer that helps you prevent unnecessary risks. Billboards and Weedmaps can be good tools, but there are others at your disposal as well. Additional fees may be imposed at the municipal level; check with your local municipality to find out more. As an example, we were working on a deal where the cash out price was $850,000, and the seller financed price was $1M, with about 30% down, a three year carry at 7% interest rate, and final balloon payment at the end of the three-year term. I utilize another company to handle a type of service necessary for the operation of my licensed entity. A microbusiness license allows the holder to grow up to 150 plants, process flower into marijuana products such as edibles and extracts, and sell direct to the consumer, all with one MRTMA license. Also, during the process, you will need to submit a site plan that covers everything from the building layout to security to trash management, and you may need to lobby for approval. Do not pitch products with incorrect labeling. Wisconsin is now an island surrounded by a sea of legal pot, with medical marijuana being allowed in Minnesota and recreational use legal in Canada, Michigan and, most recently, Illinois. This is also known as 'Step 1' of the state licensing process in Michigan. 1. How long does it take to receive a registry identification card? PUBLISHED DECEMBER 18, 2020 - UPDATED JANUARY 29, 2021. Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. Marijuana retailers in Michigan may sell cannabis and cannabis products including flower, concentrates, edibles, infused products, seeds, and clones. According to Marijuana Business Daily's Marijuana Business Factbook, the average marijuana dispensary makes $974 in revenue per square foot of space. Can I submit one Annual Financial Statement (AFS) report that includes all my licensees that are commonly owned? We can help you receive top dollar for your Michigan dispensary property. If anyone could give me a run down of everything that goes into the process of selling into dispensaries, it would be greatly appreciated. The beginning costs of a Michigan marijuana growing license includes a non-refundable application fee, as well as a regulatory assessment. Also note, the business receiving the cleaned seeds is also involved in the processing aspect and would require a processor-handler license. Stay productive once you start your business. What should I do? Adults aged 21 and older may purchase no more than 2.5 ounces of cannabis or equivalent product in a single transaction, with no more than 15 grams in the form of cannabis concentrate. Do I still need to report this on P8 Schedule of Management, Services, and Other Agreements? Be aware that public consumption is still punishable by a fine of up to $100, so if you light up, do it on your own private property. Michigan Medical Marijuana Program (Patients/Caregivers), Verify a Medical Marijuana Facility License, Verify an Adult-Use Establishment License, Metrc - Statewide Marijuana Monitoring System. If you want to learn how to open a Marijuana Provision Center in Michigan or apply for any adult use marijuana grower, processor, or transporter licenses, here is all the information you need. Not only that, but you can draft the purchase and sale documents such that you are not only OK if the buyer stops making payments, but you actually may hope they do as you can take back your property, keep the money theyve already paid, and sell it again! If a current application is under review by the Agency, can I change the ownership? Do I have to designate a primary caregiver? As a processor or a grower, if I hire a caregiver, may I transfer their marijuana into my company? Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. What are all the required licensing and certifications required for me to legally distribute marijuana to provisioning centers? Opening a cannabis dispensary in Michigan requires more than application forms. After that only licensed grows by the state of Michigan with approval of the city that they're growing in will be able to sell to dispensaries. I am a licensed hemp processor and assume I need to record weight of incoming hemp shipments and the weight of products that we produce from hemp. Thanks! There are many market opportunities you have to research, take into consideration the zone youll be operating too. The creation of a business plan that leads you to profit and, eventually, success is essential to getting the most out of the dispensary business in any State, Michigan is certainly not the exception. Detroit finally announced the rules for allowing licensed adult-use marijuana sales with a conscious effort toward giving social equity applicants a fair opportunity as well. In March 2020 the Marijuana Regulatory Agency announced a phase-out process to end external transfers to the regulated market, which included products grown and processed by caregivers. While seller financing is not for everyoneand sellers need to make sure they have well drafted legal documents protecting their interestsit can be a good strategy to get a higher sales price. Strict attention to compliance issues and regulations is required to apply for a permit to grow hemp in Michigan. Not a bad deal if you ask me. It takes you from hiring a lawyer who specializes in Michigan's cannabis laws & regulations to help . In addition to medical marijuana dispensaries, beginning January 1, 2020, recreational dispensaries will also be allowed to apply for licenses to sell adult-use cannabis to the public. You should probably budget about $500,000 to be on the safe side. Cannabis Regulatory Agency Licensing & Statistical Reports, Statewide Marijuana Monitoring System Information - Metrc, Apply, amend, renew an adult-use establishment license, Apply, amend, renew a medical marihuana facility license, Apply, amend, renew a patient or caregiver medical marijuana card, Apply for or renew a Social Equity application, File a petition for the medical marijuana review panel, Approved grants and the grant approval process, Licensees that have had disciplinary actions taken against them, Tips for licensees, technical or advisory bulletins, The number of previously approved applications or licenses, https://dev.michigan.local/som/json?sc_device=json, Annual Financial Statement Questions for FY23, Annual Financial Statement Questions for FY20 and FY21. In order to sell marijuana to Michigan dispensaries, you need a grower or processor license under the MMFLA or MRTMA, which are Michigan's two marijuana facility licensing laws. Yes. What will the costs be for a state operating license? If you are looking to sell your dispensary, give the experts atMichigan Cannabis Propertiesa call to set up a free consultation. If youre already operating a company just call us. Many of the customers coming from the northern suburbs found it easier to go to Ferndale or Hazel Park after they'd approved green zone operations, rather than drive the extra couple of miles to Detroit; which was further magnified by Detroits botched first recreational roll out. How should my payroll be reported on the P5 Schedule of Payroll Taxes? Can licensed Michigan provisioning centers accept visiting qualifying marijuana patient cards? When will my caregiver registry identification card expire? View Department pages to learn more about working in state government, connect with us on social media and contact department Equity and Inclusion Officers. Discounts of up to 75% are also available to applicants belonging to a disproportionately impacted community on licensing fees and properties owned by the city land bank. There are new developments in the security sector that are offering dispensaries piece-of-mind. Do I still need to report this on Schedule of Expenditures Service Vendors? This page is informational only and should not be considered legal advice. Everyone involved in your business will have a background check during this phase. Michigans Marijuana Tracking Act requires the establishment of a statewide monitoring system that can integrate with third-party inventory control and tracking systems such as Covas Cannabis Dispensary POS Software in order to allow: Additionally, Michigan's Adult-Use Marijuana Emergency Rules state that licensees must use a third-party inventory control and tracking system that is capable of interfacing with the statewide monitoring system to track: Michigan has chosen Metrc as its official statewide marijuana monitoring system.