Michigan Medical Marijuana Dispensary Laws
Michigan Medical Marijuana Dispensary Laws – Michigan is one of the few states in U.S, which has legalized both medical and recreational marijuana. The latter became legal in 2018 itself, while medical marijuana was accepted much before.
Michigan Cannabis Dispensary Laws
Michigan medical marijuana dispensary laws: Table of contents
- History of Medical Marijuana laws in Michigan
- Michigan Marijuana Regulatory Agency
- Process of applying for medical marijuana dispensary license in Michigan
- Process of applying for adult-use dispensary license in Michigan
- Costs involved in applying for medical marijuana dispensary license in Michigan
- Costs involved in applying for recreational marijuana dispensary license in Michigan
- Can medical cannabis and recreational cannabis be sold in the same dispensary?
- Taxes to be imposed on dispensaries in Michigan
- Safe places to purchase medical marijuana in Michigan
- Restrictions on delivery of medical marijuana
- Qualifying conditions to purchase medical marijuana
- Michigan medical marijuana patient possession limits
- Application process for patients to obtain registry identification card
- Registry Identification Card
- Cannabis tracking and reporting requirements in Michigan cannabis dispensaries
- Zencanna Cannabis POS Software compliant with Michigan’s cannabis tax reporting requirements
Michigan Medical Marijuana Dispensary Laws and Licensing
History of Medical Marijuana laws in Michigan
Although the legal possession of medical marijuana was allowed since 2008, there was no legal permission to dispensaries to sell the same.
When Michigan voters approved the Michigan Compassionate Care Initiative or the Michigan Medical Marijuana Act, with 63% in 2008, they had legalized medical use of cannabis for only very seriously ill patients, that too with a doctor’s approval.
This proposal had allowed only the medical patients and caregivers to cultivate medical marijuana within the permissible range. It was much later that a legal framework was established, allowing licensing and operating of medical marijuana dispensaries, also known as “provisioning centers” in Michigan.
Michigan Marijuana Regulatory Agency
The regulatory body, the Michigan Marijuana Regulatory Agency or MRA, is responsible for looking into the cannabis business licensing. However, it doesn’t look into the recreational cannabis business licensing (it has started taking in applications since 1st November, 2019). The agency, apparently for the first two years will accept license applications from dispensaries, who have a current valid license as medical marijuana operators.
Process of applying for medical marijuana dispensary license in Michigan
Cannabis business set ups can apply for a license through Michigan Department of Licensing and Regulatory affairs. However, license applications for recreational facilities will be available from December, 2019.
Michigan medical marijuana facilities are grouped into certain categories and each facility type is supposed to comply with the licensing requirements.
- Grower class A: up to 500 marijuana plants
- Grower class B: up to 1000 marijuana plants
- Grower class C: up to 1500 marijuana plants
- Processor: allowed to purchase and use it to make cannabis infused products.
- Secured transporter: allowed to store and transport marijuana and business-related proceeds.
- Provisioning center: allowed to sell cannabis products to patients
- Safety compliance facility: allowed to test cannabis products provided by a licensed provisioning center.
Process of online application needs to be done in the following steps by prospective licensing facilities.
- The first step is to complete the state’s entity/individual prequalification packet.
- The other stakeholders in the EIPP, should submit a supplemental applicant prequalification packet.
- Submit a passport-size photo, along with a copy of government ID
- Go through the criminal background check, along with reviewing of financial and tax records.
- Submit the one-time application fee of $6000
- Also submit the regulatory assessment fee, which will depend on the license type.
- You will need to submit the license qualification application, when you have found the location for your marijuana dispensary set up.
Process of applying for adult-use dispensary license in Michigan
For recreational dispensary license, MRA will accept applications from only people who currently hold a medical marijuana operating license. Gradually, after a span of two years, MRA will accept online applications of adult-use marijuana in the same way as medical marijuana applications. The process will involve two steps.
- The first step will be pre-qualification, including the submission of all application materials, background checks and payment of application fee.
- The second step will be to review the proposed retail establishment through a physical inspection and payment of license fee (post approval of the establishment).
Costs involved in applying for medical marijuana dispensary license in Michigan
- There are 2 costs associated for medical marijuana dispensary license in Michigan. The first one is an application fee of $6000, which is required before the processing of application begins.
- The second cost is an annual regulatory assessment fee that has to be paid before the license is issued. From October 1st, 2019 till September 30th, 2020, the regulatory assessment fee for a new provisioning center license is $44,000.
Costs involved in applying for recreational marijuana dispensary license in Michigan
- For recreational marijuana license, the costs are again split into two kinds. The first one is $6000 towards application fee and
- the second one is the initial licensure fee (to be paid once approved for a license), which is $25,000.
Can medical cannabis and recreational cannabis be sold in the same dispensary?
Michigan is already accepting recreational marijuana business applications and very soon, as early as the 1st of December, 2019, dispensaries in Michigan will host the sales of adult-use marijuana as well.
- In Michigan, a marijuana dispensary can sell both medical and recreational marijuana, as long a clear physical segregation of the two kinds of products are kept at the dispensary.
- A marijuana dispensary will also have to follow all the regulations that go in the sale of each of those products. This will include labeling, customer verification procedures, permissible possession and sale limits, tax treatments etc.
Taxes to be imposed on dispensaries in Michigan
- Medical cannabis in Michigan is subject to 6% standard state sales tax, with an additional 3% excise tax.
- Recreational cannabis will be subject to a 15% excise tax along with the standard state sales tax.
Safe places to purchase medical marijuana in Michigan
Medical cannabis may be purchased by certified patients (with state-approved medical marijuana patient card) from provisioning centers (state-licensed). As per MMFLA (Michigan Marijuana Facilities Licensing Act), provisioning center is any commercial property that allows cannabis sale to registered qualifying patients or registered primary caregivers. In short, provisioning center is reserved for licensing facilities in compliance with Michigan medical marijuana laws.
Restrictions on delivery of medical marijuana
- A provisioning center can allow delivery of medical marijuana, provided the delivery procedures are provided to and approved by MRA (Marijuana Regulation Act).
- Orders should be made through a secure website, which authenticates access by a registered qualifying patient.
- Medical marijuana is allowed for home delivery to qualifying patients, even at locations, which do not have permission for dispensaries.
Qualifying conditions to purchase medical marijuana
The following list of conditions make a patient eligible for purchasing medical marijuana.
- Hepatitis C
- Amyotrophic Lateral Sclerosis
- Crohn’s Disease
- Alzheimer’s disease
- Post-traumatic stress disorder
- Obsessive Compulsive Disorder
- Nail Patella
- Rheumatoid Arthritis
- Spinal cord injury
- Parkinson’s disease
- Tourette’s disease
- Chronic pain
- Cerebral palsy
- A chronic disease with severe muscle spasms, nausea, seizures, severe pain and cachexia
Medical marijuana patient possession limits
As per Michigan medical marijuana law,
- Patients must be 18 or more to qualify for medical cannabis as per current MMPS (Michigan Medical Marijuana Program).
- Caregivers need to be 21 years of age or older and he/she has to be listed on the patient’s registry application. Caregivers should not have any record of any conviction of a violent or drug related felony. Primary caregivers must not have committed a felony of any kind over the last 10 years. Also, at any point of time, a primary caregiver should not have more than 5 patients in their care.
- Medical patients can purchase up to 2.5 ounces of cannabis or equivalent product daily, but the monthly limit should not exceed more than 10 ounces of marijuana or equivalent product.
- up to 1 ounce/28.35 grams of marijuana infused product. However, as per the new law, adults older than 21 years of age, from 6th December, 2019, will be allowed to have a higher limit of medical cannabis, irrespective of their medical status.
- 7 grams of marijuana infused product in gaseous form
- 36 fluid ounces/1.06 liters of marijuana infused product in liquid form
- Other than patients, primary caregivers are also allowed to possess medical marijuana in permissible limits. Both patients and caregivers are allowed to have 12 cannabis plants at a time. However, the home-grown marijuana plants need to be inside an enclosed, locked space.
- A patient/caregiver, if needs more than 12 plants, will have to further apply for a Michigan commercial grow license.
Application process for patients to obtain registry identification card
Application for medical marijuana certification in Michigan involves the following steps.
- Patients should have a recommendation from a qualified physician.
- Patients are required to fill MMMP Michigan medical marijuana application form and submit it, along with physician’s written recommendation and proof of Michigan residency (valid driver’s license/ personal ID card/signed voter registration).
- Once the patients obtain registry identification card, they will be allowed to possess, grow/cultivate and purchase medical cannabis.
Registry Identification Card
- The fee for registry ID card is $60, an additional $25 for a designated caregiver.
- Patients need to submit the additional charges of a caregiver, along with a copy of the caregiver’s state-issued identification.
- Designated caregivers get an ID card, which has the same duration/expiry date as the patient’s registry card.
- Certified medical patients outside Michigan may use medical cannabis in Michigan, as long as their home state gives them permission for reciprocity.
Cannabis tracking and reporting requirements in Michigan cannabis dispensaries
Michigan’s Marijuana Tracking Act requires marijuana dispensaries to integrate with third party inventory control and tracking systems, which are in sync with statewide monitoring system. The tracking system will look into the
- Verification of age and validity of medical marijuana patient card
- Retention of a record of the date, time, quantity and price of each cannabis sale/transfer
- Ensure that every sale/transfer of cannabis is within the permissible limit.
Michigan’s adult-use marijuana emergency rules implies that all licensees must use third party inventory control and tracking system, which syncs in with state monitoring system, to track
- Seed-to-sale cannabis plants, monitor the products, packages, purchases, waste, transfers, conversions, sales and returns.
- Batch information of the marijuana strain/product throughout the entire chain of care.
- Complete batch recall that clearly identifies all required criteria pertaining to the specific batch that has been recalled.
Zencanna Cannabis POS Software compliant with Michigan’s cannabis tax reporting requirements
Michigan’s official statewide marijuana monitoring system is METRC and Zencanna’s Cannabis POS software is compliant with this mode of inventory control and tracking system.
To be more precise, Zencanna’s POS retail software will assist with
- ID scanning for age and patient card verification
- Smart integrations with METRC, BIOTRACKTHC and other third-party vendors assist with inventory, sales and tax reporting
- Zencanna’s POS has integrations that will sync with cannabis dispensary’s accounting and payroll system.
- The most unique offering of Zencanna’s point-of-sale is its tax automation feature, which automates tax calculations and remittance, forcing the dispensaries to stay state-specific tax compliant always.