As a processor or a grower, if I hire a caregiver, may I transfer their marijuana into my company? Several dispensaries have been licensed and approved, however several cities and townships have banned adult-use sales, or have not yet opted in to allow sales. Billboards and Weedmaps can be good tools, but there are others at your disposal as well. 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. Each license is exclusive to the license type issued and to the licensee. How Much Does It Cost to Open a Dispensary in Michigan To get a provisioning center or retailer license in Michigan the application fee is $6.000. To be a Rec grower here you have to have your location approved, cameras and security system. Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. How are tags produced for seed-to-seed tracking? The beginning costs of a Michigan marijuana growing license includes a non-refundable application fee, as well as a regulatory assessment. I utilize another company to handle a type of service necessary for the operation of my licensed entity. For both the medical marijuana program and recreational marijuana program, the licenses available in Michigan are: Michigans Department of Licensing and Regulatory Affairs (LARA) is the agency in charge of issuing licenses to cannabis operators. Not anymore. The term provisioning center includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers. Only dispensaries with a designated consumption site license can have smoking lounges or otherwise allow consumption of marijuana products on-site. Handling - Possessing, storing, or transporting industrial hemp on premises owned, operated, or controlled by a registered grower or a licensed processor-handler. Bud Trimmer: Budtrimmers prune and trim marijuana and make about $25,000-$30,000 per year. 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. Who can apply for a license and is there an age requirement? While the dispensary market in2018 and early 2019 was hot and will heat back up in the future, market data from late 2019 and 2020 shows that sale practically ground to a halt. Michigan adult-use cannabis retailers must: Every regulated cannabis market has its own tracking and reporting requirements. Can I transfer a marijuana license from one entity to another? Once results are returned, click "Home Delivery" in order to bring all "Home Delivery-approved" Provisioning Centers to the top of the list. They could go from license application requirements, to the local-wide limit of accepted number of dispensaries in the zone. Dispensaries: Compassionate care centers will be licensed by the state. The Basic Steps to Making Money Selling to Dispensaries. What documentation is required when applying for a medical marijuana state operating license? How much is the fee? How do I update my address on my registry card? It is always best if renewal paperwork is received by the department as one complete packet. Put another way, thats about 35% more money in the sellers pocket compared to a straight cash out offer. What do we need to do to sell our ingredients to product manufacturers that sell to Michigan dispensaries? Avoid showing up to a cannabis dispensary without a meeting. Medical marijuana sales: Purchases are. Visit MDARD's hemp resources page to learn about requirements concerning human food and beverage, labeling, weights, and measures, and more. Does the Agency allow licensing stacking? 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. Scott Levin | slevin@mlive.com. As the legalized recreational marijuana industry continues to grow in Michigan, more and more businesses are opening for business. Ohio. So, what drives the valuation of these dispensaries? If your application passes the prequalification step, then you will enter the second phase. How should those disbursements be reported on the P3 Schedule of Disbursements? That license is described in the Industrial Hemp Research and Development Act, Public Act 547 of 2014, as amended, and requires any person who is processing, handling, brokering, or marketing industrial hemp to be licensed as a processor-handler. But with the industry growing as fast as the medical and recreational cannabis industry in this legalized midwest state, the results of getting a license may be worth it. What do we need to do to sell our ingredients to product manufacturers that sell to Michigan dispensaries? 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. Transfers of product between my licenses are not recorded as revenue in my general ledger. What is the Annual Financial Statement (AFS) reporting period? Unfortunately, there are no clear answers here, as the city may not even grant adult-use licenses to all the existing dispensaries and the timeline for the city licensing recreational dispensaries is unclear. The state tax requirements in medical marijuana in Michigan is 6% sales and use tax. 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. Am I eligible for an adult-use marijuana establishment license? Here, a quick word to the wise: you need to be VERY careful with text message marketing of both medical and recreational marijuana. Gretchen Whitmer on Wednesday. How can I invest in marijuana facilities in Michigan? The Department of Licensing and Regulatory Affairs has great diversity of licenses and regulation within its oversight. Yes, you can sell your medical CBD and THC products to your favorite dispensaries by approaching them over the phone with a complete briefing about your cannabis product. The act allows adults of 21 years and older to possess up to: 2.5 ounces of cannabis flower in public, or 10 ounces at home. Will I need a physical location for my business, or can I use my personal address until I find a location? Here is all the information you need. What are all the required licensing and certifications required for me to legally distribute marijuana to provisioning centers? To sell marijuana to any person. Who is a "managerial employee" of the applicant? A provisioning center may offer home delivery once the facility's delivery procedures have been provided to and approved by the MRA. Is there a limit on how many times an entity can change ownership? Am I able to use another hemp processor's product (for example, CBD isolate) to create my own hemp product to sell? If you are intending to sell an already processed or finished industrial hemp product, you are required to obtain a processor-handler license. Am I required to submit an Annual Financial Statement (AFS) report if my license has been closed or not renewed? Can I apply for a state operating license if I have a medical marijuana card? || attorney & consultant marketing - collateral base firm, Developed By WorldWin Coder Pvt Ltd & Stumari. 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. What impact does the MMFLA have on patients or caregivers operating under the MMMA? You're taking their product and benefitting from it - again, a question for an attorney as this is out of CRA's regulatory authority. One of the most overlooked factors affecting the final sale price of dispensary listings in the Michigan cannabis real estate industry is timing. There is another category, covered in section 15.4 of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). 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. Under state law, cannabis retail establishments cannot be located in areas zoned exclusively for residential use or within 1,000 feet of any school for grades K-12. Well share how we did it if you complete the form. 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. Among states with legalized medical cannabis, Oklahoma had the largest number of dispensary licenses as of summer of 2021. 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. In the drop down menu for "License Type," select "Provisioning Center - License." 3. How should I submit my Annual Financial Statement (AFS) report? Medical marijuana can be delivered to the home of any registered qualifying patient, even if the patient's jurisdiction does not allow dispensaries. The total fees range from $4000 to $40,000 depending on the class you are applying for. The Michigan Regulation and Taxation of Marihuana Act, or "MRTMA", created a new license type for the Michigan recreational cannabis marketthe microbusiness license. 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. What this means is that these companies, and many larger private companies, value dispensaries strictly on revenue or sometimes EBIDTA multiples. o Michigan.gov/IndustrialHemp (main page) Here's a list of Michigan's Recreational Marijuana Dispensaries: Ann Arbor Healing - 3720 Washtenaw Ave, Ann Arbor MI 48104 Arbors Wellness - 321 E. Liberty St., Ann Arbor MI 48104 Battle Creek Provisioning - 1525 W. Michigan Avenue Suite 11 & 13, Battle Creek MI 49037 Battle Spring - 2245 W. Columbia Suite 119 & 120, Battle Creek MI 49015 Yes, a marijuana establishment in Michigan can sell both medical marijuana and adult-use recreational cannabis, provided those products are physically separated in the store. Keep in mind that with just a few exceptions, it's generally illegal to consume cannabis in public. Think of selling to a dispensary as you would with any product to a store. Another consideration when valuing a dispensary is whether the dispensary is medicali.e. What is considered an exception on the Annual Financial Statement (AFS) report? But that is coming to an end real fast. Could you provide clarification on excess marijuana grower licenses? Does this qualify me for an adult-use marijuana establishment license? For an adult-use marijuana retail store you should apply for a retailer license that allows you to sell marijuana and other marijuana products, including plants and seedlings. Hemp-derived topical lotions and tinctures with a THC concentration of 0.3% or less may lawfully be marketed and sold in Michigan with this license. Michigan's MRA began accepting adult-use cannabis facility license applications on November 1, 2019 only from persons currently holding a medical marijuana operating license. A designated caregiver must purchase medical marijuana for patients under the age of 18. The state had allowed caregivers to sell their excess cannabis to the retail market. Marijuana retailers in Michigan may sell cannabis and cannabis products including flower, concentrates, edibles, infused products, seeds, and clones. Michigan Cities Allowing Marijuana Businesses Should I submit my full application (Step 1 and 2) together? There are two fees associated with the adult-use marijuana retail license in Michigan. Recreational cannabis will be subject to a 15 percent excise tax on top of the standard sales tax. Since your processor-handler license is now expired, processing, handling, brokering, or marketing industrial hemp without this license is a violation of the state's Industrial Hemp Research and Development Act. Do not try to pitch cannabis products to dispensaries in another state. The Cannabis Regulatory Agency will establish Michigan as the national model for a regulatory program that stimulates business growth while preserving safe consumer access to cannabis. 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. Several Michigan dispensaries have been sued for sending out text messages under the TCPA. In the public markets, cannabis companies tend to be valued based on revenue or occasionally EBIDTA (i.e. Feb 1, 2023. How can a caregiver withdraw from the program? I just mailed my Application Packet, but I forgot to include something important (application fee, proof of Michigan residency, physician certification).