cannabis flowers, soon to be legal in Michigan

Nine Things to Know About Medical Marijuana Licensing in Michigan

It’s coming fast—the December 15 date when medical marijuana license applications begin to be accepted in Michigan. We’ve been reading all the documents, letters and notes and offer here some of the most important things to keep in mind if you are a cannabis entrepreneur. And as LARA often mentions, guidelines are subject to change.

1)   Licensing will be in two phases—there will be a pre-application portion, which will allow people to move through making an application while securing a location for their enterprise. With many municipalities still finalizing opt-in ordinances, this two-part process makes sense. If all of your materials ready to go, you can apply and complete both phases at once.

2)   In phase one, applicants will undergo a background check that is going to be rigorous. The background investigation includes, but is not limited to: a review of the applicant’s criminal and financial history, a review of previous compliance regarding regulation and taxation and a look at your business litigation history, if you have one. You’ll also consent to allow the state to do a background check—for which you’ll pay up to $8000. You’ll be fingerprinted and don’t forget that the State of Michigan wants its licensees to be of good moral character.

3)   You’ll need to have a municipality to lined up your business before you can go very far in the process. This is a critical part of your start up business—not every city, village or township in Michigan is willing to change its ordinances to allow marijuana businesses, if you have a location already working through an ordinance, that’s great. If you don’t, finding a locale where businesses are welcome should be your primary task. And the upside is, there are lots of municipalities in Michigan and not all have made decisions on this topic.

4)   You’ll need some serious start up capital for that license. The licenses—whether you are growing, testing, processing, transporting or provisioning will be priced on how many applications there are. The more applications, the less expensive it will be. Large scale growers should plan to give the State of Michigan between $8000 (many of applicants) and $57,000 (few applicants). Your municipality will also take no more than $5,000 of your money for it’s part of licensing. Small growers (Class A licenses) will pay no more than $10,000. Other fees are yet to be determined.

5)   Recently released (within 10 years) felons need not apply. You won’t be considered for a license. People who have been convicted of a misdemeanor in the last five years are likely not to get a license if it is drug related or involves theft dishonesty or fraud.

6)   Elected officials on the state level in Michigan (and any other state or federal government, for that matter) and Michigan State employees are ineligible to apply for a license. Indian tribe elected officials and employees may apply as well as precinct delegates.

three jars full of cannabis flower7)   For growers who want to go big—more than 1500 plants, you will be able to stack your Class C 1500 plant license. Apply (and pay for) multiple licenses. The state hasn’t said how many Class C licenses can be stacked, but this provision could allow for some very large operations.

8) The State of Michigan is allowing co-location of cannabis operations. That means a grower can also have a processing business and a provisioning center in the same location. It’s a great move for entrepreneurs who want to grow, make edibles and have a retail business. It will also be allow secure transportation. This complete package is very appealing and allows for better control of one’s business.

9)   In phase two of the application process, after you’ve been background checked, every licensee will need to present plans for information technology, staffing, marketing, inventory, security and recordkeeping.

That marketing plan part—we’re here for you.  Canna Communication has deep experience in creating strategic marketing plans. We are a communications firm dedicated solely to cannabis and are passionate about helping you grow your business!

What is it About a Marijuana Dispensary?

As Michigan moves toward medical marijuana licensing in December, municipalities are determining if they want an ordinance allowing marijuana businesses in their jurisdiction. Any city, village or township can adopt an ordinance to allow medical marijuana businesses to operate, or they can do nothing, in which case businesses cannot locate there. To have a business, there needs to be a zoning ordinance.

Communities around Michigan hearing from advocates and opponents. This opt in/opt out process is a good way for cannabis champions and entrepreneurs to build a case for medical marijuana.

chalkboard menu in a dispensary
(Ok, so strain names don’t help with cannabis credibility).

Over the last few months, we’ve observed a worrisome public view of dispensaries. It seems that these retail entities are the target of scorn and blame about all things perceived as negative about cannabis.

Through no fault of their own, Michigan dispensaries are unlicensed, unregulated and seemingly unwanted by everyone other than their patients. Police shut them down on a regular basis and a member of the MMFLA board announced in July he’d like to see them all gone by September 15. Luckily, that decision was not in his purview—and the shops that provide specific and vital medicine to thousands of patients are still open for business until December 15, unless a bill moving through the House and Senate is approved. This important bill would block dispensary closure.

What is it about Marijuana dispensaries that troubles people?

cannabis flowerPerhaps is it the obviousness of a storefront dispensary that bothers people. It’s one thing to quietly acknowledge that more than 280,000 Michigan residents hold cards and use medical marijuana, it’s another to see a store in your local business district. There it is, in plain sight, where people might have to address their personal biases about marijuana use, confront outdated viewpoints and possibly say not in my back yard. There is no shame in cannabis provisioning and a regulated, secure dispensary should be treated with the same respect as any small business operation.

Negative attitudes might also rest with people not believing that marijuana is medicine. Either from personal-use experience or having been fed propaganda about cannabis, some individuals have difficulty suspending the belief that marijuana is simply getting high. For people with Crohn’s Disease, epilepsy, PTSD, chronic pain and cancer, it’s anything but recreational. Marijuana is a life-saving and life-improving medicine.  

Locked Up and Safer Than a Liquor Store

Here’s what shouldn’t trouble people—that your kids or a stoner who wants to party can walk in and obtain marijuana at a dispensary near you. In Michigan, a dispensary requires all people who enter the premises do so with a state issued card to buy medicine. No one, other than a card-carrying patient (with a matching photo ID) can legally go beyond the lobby of a dispensary. In most facilities you can’t even see products until you’re admitted.

Dispensaries are truly not a threat to any community, but an asset to people needing medicine.

The Time to act is now!

People have the opportunity to do three things to help make change: 1) Contact your local municipality and see where they stand on a medical marijuana ordinance, let them know why you think medical marijuana businesses are good for your community. 2) Call your Michigan State Representative or Senator and ask for their support of HB# 5014 to keep Michigan’s dispensaries open. 3) Post your views and story about cannabis on your social network with the hashtag #bebraveforcannabis

Michigan Medical Marijuana: What Happens if You Don’t Ask.

We recently did some work for a client who wanted to know which municipalities around the Muskegon area were adopting pro-medical marijuana ordinances. As Michigan moves toward licensing cannabis businesses at the end of 2017, the process for those who want to grow, transport, process, test or operate a dispensary, marijuana licensing begins with the approval of local cities, villages or townships.

To say the least, there are many municipalities in Michigan. Muskegon County alone has 27. We also included in our research, nearby counties—cherry-picking the larger cities and villages. In all, we contacted about 35 mayors, managers, supervisors and planning leaders.

yes, no, maybe

Some of our responses were pointed: “No.” You can tell from that sort of response that digging deeper is a lost cause. Asking the commission/council if they are interested in learning more about medical marijuana is going to elicit the same response.

This example was an interesting take on how it was handled: “[name redacted] Township is not considering opting into a medical marijuana ordinance. This question was posed, along with others, in a recent survey the township included with summer tax bills. Sixty-six percent of respondents were not in favor of such an ordinance in Township.” I give them credit for having a discussion and a proxy vote.

In our research, we found at least four communities that were taking a wait and see approach. They’re giving it a year or so to see how things work out around the state. We discovered three municipalities that were actively in the processes of moving ordinances forward. One we knew about, the other two were surprises—and right between the two surprise locations was another municipality that sent me its ordinance banning everything but using medical marijuana in your own home!

help from our friends

Intel from another municipality in Newaygo County came from an Iraq war veteran. He told me of his struggle to convince his fellow commissioners to accept medical marijuana businesses in their community. After an hour and a half discussion, he was voted down. His was only yes vote. He directed me to two other locations where the sentiments were more cannabis-friendly in that county. He was spot on.

My point here is—if you don’t ask you’ll never know the reality of a situation and asking can make a difference. Three separate municipalities gave me strong “maybe” responses. They told me they were looking into it, and talking with their local health departments, police chiefs and would like more information. Where are the marijuana advocates in those places?

To those who want to have medical marijuana in their communities—now is the time to act. This issue isn’t dead and isn’t impossible, but you have to show up and speak out.  If you are a patient, the time to call or email your commission/council is now.

If you want to create a medical marijuana business where you live or nearby—timing is everything and time itself is running out.