Table of Contents
- Cannabis Cultivation Regulations
- Types of Michigan Growers Licenses
- Michigan Commercial Grow License Application Requirements
- Seed to Sale Cannabis Compliance in Michigan
The current Michigan marijuana laws were established in 2018 after voters approved the legalization of adult-use cannabis cultivation and distribution in the state. Michigan now has over 500 medical/recreational cannabis dispensaries that are supported by more than 1,000 licensed growers.
The Michigan adult-use cannabis industry recently surpassed $1 billion in yearly retail sales, making it one of the largest marijuana markets in the country and still growing.
Below is a general overview of what you need to know to obtain a Michigan cannabis license and keep your registered organization compliant from seed to sale.
Table of Contents
For organizations and cultivation facilities looking to enter Michigan’s cannabis market, the Cannabis Regulatory Agency (CRA) is the governing body that regulates the state’s adult-use and medical marijuana establishments and licensees. Here are some of the most crucial rules and regulations that registered organizations and cannabis grow facilities will need to be aware of:
Licensing Process – There are two steps to obtaining your Michigan cannabis license: 1) prequalification and 2) final licensure. To get pre-qualified, all main and supplemental applicants must complete a background check and provide a $6,000 non-refundable application fee.
Product Quality – For cannabis cultivators and processors, every plant must be entered into Metrc, the Michigan seed-to-sale tracking system. This allows the plant to be tracked for quality control at different stages in the process, from initial growth to drying and curing, to the eventual retail sale.
Labeling & Safety – All cannabis products that are processed at a licensed cultivation facility must be labeled with:
The state of Michigan requires a separate application and fee for each license. For instance, if you plan to cultivate up to 2,000 cannabis plants, process the plant, and sell retail products at a provisioning center, you’ll need three separate licenses—even if the facilities are located at the same address. In terms of cultivation licenses, they come in three different classes, with stipulations designated between medical/recreational growers:
In addition, registered organizations can apply for licenses that relate to other aspects of the Michigan cannabis industry, including:
The Michigan Department of Licensing and Regulatory Affairs (LARA) uses a two-step program for issuing licenses to cannabis operators:
Step 1: Pre-Qualification
Fill out the Entity/Individual Pre-Qualification packet. In terms of documentation, you’ll need a passport-type photo, a copy of your government-issued ID, and other supporting documents noted in the packet. The process will entail a full background check, all supplemental applications, and a non-refundable fee of $6,000 at the time of filing.
Step 2: License Application
At this stage, the prospective organization will specify the municipality in which they’ll operate and the type of license they are applying for (grower, processor, provisioning center, etc.). Other business information may also be needed, such as an estimated open date; proof of premise ownership or lease agreement; estimated gross annual income; and a facility and marketing plan.
The statewide, mandatory tracking system that Michigan uses is called Metrc. This system serves as the document of record for all cannabis plants grown, processed, and sold by Michigan cannabis license holders. By using serialized tags attached to every plant, Metrc facilitates tracking through every stage of the process and plays an essential role in cannabis organizations staying fully compliant with the Michigan marijuana laws.
As helpful as the Metrc tracking system is in maintaining statewide compliance and quality control, it’s not the only tool that a registered organization or cultivator has at their disposal. Seed-to-Sale software, for instance, like the robust ERP offered by 365 Cannabis, can deliver a much more complete business management solution, helping to reduce human error, ensure timely and accurate reporting, and facilitate compliance.
This article is meant to be a guideline for your reference and is not legal advice. Read more about Michigan cannabis laws here, and be sure to prepare your application with a cannabis business consultant and/or law firm.