MunicipalLicensingMedicalMarihuanaFacilities LicensingAct
June9th Detroit,MI
BY: CRAIG ARONOFF, ESQ.
ThreeNewMedicalMarijuanaLaws
1.MarijuanaTrackingActPublicAct282of2016/MCL§ 333.27901etseq.
2.AmendedMichiganMedicalMarihuanaAct(MMMA)InitiatedLaw1of2008/MCL§ 333.26421etseq.
3.MedicalMarijuanaFacilitiesLicensingAct(MMFLA)PublicAct281of2016/MCL§ 333.27101etseq.
EffectiveDates◦ ApprovedbyGovernoronSeptember21,2016,effectiveDecember20,2016◦ MedicalMarihuanaLicensingBoardappointedMay31,2017◦ LARAtoAcceptLicenseApplications onDecember15,2017
MarijuanaTrackingActPublic Act282of2016/MCL§ 333.27901 etseq.
CreatesaStatewideMonitoringSystemto:◦ TrackMarijuanaandMarijuanaProductinCommercialTrade
◦ MonitorCompliancewithLawsAuthorizingMMJCommercialTraffic
◦ IdentifyThreatstoHealthfromParticularBatchesofMMJ(Recall)
◦ RequireThoseinCommercialTradeofMMJtoSubmitCertainInformationforEntry
intotheSystem;
◦ ProvideRemediesforAnyViolation
MarijuanaTrackingActPublic Act282of2016/MCL§ 333.27901 etseq.
Purpose:• PreventFraud,AbuseandUnlawful/ProhibitedActivitiesAssociatedwithTradeofMMJ,and
• AdministerandEnforceMMFLAandMMMA.
MarijuanaTrackingActPublic Act282of2016/MCL§ 333.27901 etseq.
EstablishesaStatewideMonitoringSystemforthe“SeedtoSale”TrackingofMarijuana
StatewideTrackingSystem=Internet-Based,StatewideDatabasethatisAvailableona24-HourBasisto:• Licensees,• LawEnforcement,and• AuthorizedStateDepartmentsandAgencies.
MarijuanaTrackingActPublicAct282of2016/MCL§ 333.27901 etseq.
ForEVERY SaleorTransferofMMJ,theStateMonitoringSystemWillTrack:
Date,Time&Quantity
SystemWillVerify,inRealTime:• ValidityofPatientIDCards,• TransferLimits,and• TransfersAmongLicensees.
MarijuanaTrackingActPublic Act282of2016/MCL§ 333.27901 etseq.
ReceivesandIntegratesInformationofThird-PartyInventoryControlRequiredbytheMMFLA(continued):
ProvidetotheMMJLicensingDepartment:
1. TotalDailySales
2. TotalMMJPlantsinProduction
3. TotalMMJPlantsDestroyed
4. TotalInventoryAdjustments
AmendedMichiganMedicalMarihuanaAct(MMMA)InitiatedLaw1of2008/MCL§ 333.26421 etseq.
AddstotheDefinitionof“UsableMarijuana”tonowinclude“marijuanainfusedproduct.”• TopicalFormulation• Tincture• Beverage• EdibleSubstance
SimilarProductContainingUsableMarijuanaIntendedforHumanConsumptioninaMannerOtherThanSmokeInhalation
UnregulatedvsRegulated
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
CreatesFive(5)MMJLicensesinMichigan
1.Grower(500,1,000or1,500Plants)2.Processor(Extraction/Manufacturing)3.ProvisioningCenter(Dispensary)4.SecureTransportation(UniqueAmongMMJStates)5.SafetyComplianceFacility(Testing).
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
KeyProvisionsoftheMMFLA:•AuthorizesSalesofMMJAmongLicensees
•TransfersMadeSolelybyLicensedSecureTransporter
•EnterAllTransactions&InventoryIntoStatewideMonitoring System
•LimitsonCommonOwnership(TransportationandTesting)
•EmployeeQualifications– BackgroundCheck:ControlledSubstanceFelonywithinPast10Years(RulesMayRequireEmployeeLicense)
•LiabilityInsurance:$100,000•QualificationsforOwnership:
o CriminalHistory(Felonies/Misdemeanors)o TruePartyofInterest
- Direct/IndirectOwnership- Spouse
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MedicalMarijuanaLicensingBoard• 5membersappointedbytheGovernor• Nomorethan3canbemembersofthesamepoliticalparty• BoardappointedMay31,2017• Termof4years
Board’sDuties:Thelicensing,regulatingandenforcingaregulatorysystemestablishedforthegrowth,processing,testingandtransportationofmedicalmarijuanaundertheMMFLA.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
AdministrativeRulesandRegulations– LicensingDepartment&Board• Standardsforfacilitiesandequipment,includingtestingstandards;• Operatingregulationsforeachlicense(health,safety,securityofproduct&facility)• MinimumqualificationandrestrictionsforpersonsinvolvedintheoperationofMMJfacilities;• Standardsforthecultivation,manufacturing,securetransportation,storageandsaleofMMJ;• Packagingandlabelingstandards;• Marketingandadvertisingrestrictions;• THCstandardsforinfusedproducts;• Wastemanagement,qualitycontrol,andchainofcustodystandards;and• TheadministrationofthestatewidetrackingofallMMJtransfers.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
The Medical Marijuana Licensing Board has no authority toestablish any limit on the number or type of licenses thatmay be granted.
ThisAuthorityisReservedforMunicipalities.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MunicipalitiesHaveanIntegral RoleinImplementingtheMMFLA
Under the Medical Marihuana Facilities Licenses Act (MMFLA) NOmarijuana facility will be licensed by the State of Michigan unlessand until the “municipality has adopted an ordinance thatauthorized that type of facility.” Section 205(1).
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MunicipalitiesCanAdoptOrdinanceAllowing:• Some• All• NoneoftheMMJFacilitiesPermittedbytheMMFLA.
NoOrdinance=NoMMJBusinessesWillbeLicensed
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
Ordinance+Zoning
LicenseApplicantsMustBeLocatedinMunicipalityAuthorizingUse+
LicenseApplicantsPropertyMustbeProperlyZoned
Grower:Industrial/Agricultural/UnzonedOtherLicensees:ZoningNotSpecified.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MMJLicenseApplicantsMustNotifyMunicipalities
Applicants for a license to operate a MMJ facility pursuant to theMMFLA must, within 10 days of submitting an application to the State,notify the local municipality of such application by registeredmail.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
StateWillNotifyMunicipalitiesSection205(1)oftheMMFLAprovidesthatwhentheStatereceivesanyapplicationforthelicensureofaMMJfacilityitrequeststhefollowingfromthelocalmunicipality:
Copyofthelocalordinancethatauthorizesthemarijuanafacility;
Copyofanyzoningregulationsapplicabletotheproposedmarijuanafacility;and
AdescriptionofanyviolationoftheauthorizingorzoningordinancebytheApplicant.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
ForthcomingAdministrativeRulesNotExpectedtoProvideGuidancetoMunicipalitiesastotheContentorNatureofAuthorizingand/orZoningOrdinances.
RulesWillNotProhibitLocalGovernmentsfromEstablishingTheirOwnLicensingRequirements.ManyCitiesHaveTheirOwnMMJDepartmentstoRegulateLocalLicenses:• Colorado:Denver,Boulder,Aurora,ColoradoSprings,Pueblo
OtherStatesWhereMMJLegal:Illinois,Oregon,California,Arizona,Washington,Alaska,Nevada,Hawaii
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MMFLAAuthorizes&CapsAnnualLicensingFee
“Amunicipalordinancemayestablishanannual,nonrefundablefeeofnotmorethan$5,000onalicenseetohelpdefrayadministrativeandenforcementcostsassociatedwiththeoperationofamarijuanafacilityinthemunicipality.”Section205(3).ForEachLicense.ShouldnotincludeSitePlanReviews&OtherBuilding&Zoningfees
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
City/Municipality25%
County30%
State30%
Sheriff'sOffice5%
Michigan StatePolice5%
PoliceTraining5%
TAXBREAKDOWN
City/Municipality
County
State
Sheriff'sOffice
MichiganStatePolice
PoliceTraining
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
MedicalMarijuanaExciseTaxFund
Fundedby3%taxongrossretailsales:•30%toCountiesinWhichMMJFacilitiesLocated(Proportion)•25%toMunicipalitiesinWhichFacilitiesLocated(Proportion)•5%toCountiesExclusivelyforCountySheriffs(Proportion)•Remainder:30%toState;5%toMICommissiononLawEnforcement;5%StatePolice.
MedicalMarijuanaFacilities LicensingAct(MMFLA)Public Act281of2016/MCL§ 333.27101 etseq.
JobCreationJobCreation
FTE’sAvg.WageperHour
CultivationClassA
500-plants
CultivationClassB
1,000-plants
CultivationClassC
1,500-plants
ProcessingLab
TestingLabSecure
Transporter(Distributor)
ProvisioningCenter(Retail)
Executives $60.00+ 1.0 1.0 2.0 1.0 1.0 1.0 1.0
Management $35.00 2.0 3.0 4.0 2.0 2.0 3.0 2.0
AdministrativeSupport
$20.00 2.0 3.0 4.0 2.0 2.0 4.0 2.0
LineWorkers $15.00 10.0 20.0 30.0 8.0 4.0 6.0 10.0
Maintenance $15.00 1.0 2.0 2.0 1.0 1.0 1.0 1.0
Security $17.00 2.0 2.0 3.0 1.0 1.0 4.0 2.0
TotalFTE’s 17.0 31.0 45.0 15.0 11.0 19.0 18.0
Avg.EstimatedWages
$732,160 $1,225,120 $1,811,680 $669,760 $544,960 $869,440 $767,520
Source:Strata BusinessServices
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