Mandisa Risk
New Member
In 2008, Michigan voters voted to legalize marijuana for recreational use. Since 2008, dispensaries have been regulated for operation on a city or township level, and the city of Detroit was more welcoming to the cannabis industry than any other city in Michigan. On the busy street of 8 mile in Detroit it seems like the neon green cross is on every other building for miles. The dispensaries have not been allowed to apply for a business license and so were not paying state taxes. This put the dispensaries in a gray area with the state.-Legal or not the cannabis industry in Michigan and especially in Detroit has been very lucrative.-In September of 2016 a bill was passed to grant licenses to dispensaries, cultivators, labs, extractors and transporters. Due to this bill the Licensing and Regulatory Affairs (LARA) is accepting applications on December 15, 2017 for business licenses. The state passing a bill to accept licenses is great news for both the dispensaries and the state. The dispensaries will no longer have to look over their shoulder in fear of being shut down due to operating without a license and the state will receive tax revenue from the industry. However, the honeymoon came to an end when LARA also required dispensaries to shut down their operations effective on that same date of December 15, 2017 or risk being denied a business license. Even still with this plan the licenses will not be granted until the first quarter of 2018. This leaves a potential 3 month gap where the dispensaries will not be generating any revenue and more importantly patients can't get their medication. A number of dispensaries have shut their doors already in an attempt to curry favor with the state. Most dispensaries are remaining open to try and make as much revenue as they can before being out of business for an undetermined amount of time. While being out of commission for a few months will temporarily hurt Michigan's cannabis industry, it is very important that if you are looking to re-open or start a cannabis operation that you fully understand the regulations. Unfortunately many cannabis operations may not be granted licenses and for some dispensaries December 15th will be their last day in business.
On September 21, 2017 the state did answer a big question that many in Michigan's cannabis industry has been asking since 2016 when the state passed the bill to grant licenses: can one location have multiple licenses?
LARA made the decision that a location is allowed to operate multiple licenses if it meets the following criteria;
The Department authorizes the licenses to operate at the same location-
The facility must have separate working areas,-entrances,-exits,-point of sale operations-and-record keeping systems in place for each license.--
The co-location is in keeping with local ordinance or zoning regulations.--
The licensees comply with all local and state regulations for building inspection, fire-safety-and public health standards.-
This is great news for Michigan's cannabis businesses. This means a business can buy just one building and as long as it fits the above requirements their whole operation with multiple licenses can be ran out of one location instead of multiple locations. This will reduce cost and increase profits making the industry more attractive to businesses and investors.
As the December 15th deadline approaches, it is slowly being revealed and realized how the future of Michigan's cannabis industry will look. As chaotic and uncertain Michigan's cannabis industry is presently, I am excited about the direction it is headed and the possibilities and opportunities it can provide to my home state.
Please be prepared and don't wait until the last minute to enter into this exciting new chapter of Michigan's cannabis industry!
If you are to apply to any of the five licenses, please make sure you review-House Bill 420.
