Michigan Grower License Requirements:
The Michigan Cannabis Regulatory Agency (CRA) offers three classes of licenses to prospective businesses interested in operating an adult-use cannabis cultivation facility in the Great Lakes State. Each class is capped at the number of marijuana plants licensees are allowed to cultivate. Class A licenses are allowed to cultivate up to 100 plants, Class B – 500 plants, and Class C – 2,000 plants. This guide will help you determine which grower license class may be right for you and the application requirements and process.
Michigan Grower License Process:
The licensing process for an adult-use marijuana facility in Michigan is a two-step process.
Step 1 is the submission of a prequalification application. During the prequalification process, the CRA will determine whether the applicant entity and owners are eligible for licensure under the requirements of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). A non-refundable $3,000 application fee is required at the time of submitting the prequalification application.
Step 2 of the licensing process is the submission of the marijuana establishment license application. The CRA will review the submitted documentation and determine whether the applicant satisfies all criteria for licensure. Upon approval applicants will be required to pay a license fee of $1,200 for Class A growers, $6,000 for Class B growers, and $24,000 for Class C growers.
Approval of the Prequalification Application:
This prequalification of the application will be valid for a period of two years. The marijuana establishment license application must be submitted during this time. Once a Step 2 application is officially submitted businesses must pass a facility inspection within 60 days. Businesses are strongly encouraged not to submit their Step 2 application until the facility is fully built out and ready to be operational. Both applications for Step 1 and Step 2 can be submitted concurrently however, failure to pass a facility inspection may result in the denial of the application.
Inspection checklists of the requirements may be found on the CRA website. Additionally, applicants will have a 5-day window to respond to any deficiencies in their application. Given the short window, it is essential to ensure your application fulfills all the Agency’s requirements before submitting it.
Michigan Grower License Requirements
To obtain an adult-use marijuana establishment grower license in the State of Michigan you must fulfill the requirements in the state’s two-step licensing process.
Step 1 – Prequalification Application
The prequalification application consists of a disclosure and background check of the Main Applicant and associated Supplemental Applicants. The Main Applicant is the entity or individual who will directly own the cannabis license. Depending on the ownership structure of the Main Applicant individuals may need to be disclosed as a Supplemental Applicants. Supplemental Applicants include:
- Individuals with a direct or indirect ownership interest greater than 10% in the Main Applicant;
- Entities with a direct or indirect ownership interest greater than 10% in the Main Applicant;
- Managerial employees who control or direct the affairs of the marijuana establishment; and
- Spouses of Supplemental Applicants.
What is the required documentation during prequalification?
Supporting documentation regarding the disclosed entities is also required. Review the instructions carefully to ensure all applicable information is provided. The CRA has provided a guidance document for Step 1 which can be found here.
During Step 1 an in-depth background check will be conducted to determine if any disqualifying criminal history or other circumstances for licensure exist. Some disqualifying circumstances include:
- Convictions involving the distribution of a controlled substance to a minor;
- Convictions involving fraud, theft, or dishonesty;
- Applicable tax delinquencies or infringements; and
- Failure to demonstrate the ability to meet the rules and standards to hold a marijuana establishment license (insufficient capital, history of regulatory noncompliance, etc.).
A full list of the eligibility criteria can be found in the Marihuana License Rule Set here.
Step 2 – Marijuana Establishment License Application
The marijuana establishment license application consists of reviewing detailed information and documentation of the cannabis business and its intended operations. These requirements include, but are not limited to:
- Information about the local municipality where the facility is located;
- Lease agreement or deed showing legal right to occupy and use the business premises;
- Facility floor plan;
- Business plan including technology, marketing, staffing, inventory, and recordkeeping plans; and
- Proof of financial responsibility including insurance policies, and minimum capitalization for the specified license type.
The amount of capitalization a business must possess is dependent on the license type sought. Capitalization for Class A growers is $150,000, Class B growers are $300,000, and Class C growers is $500,000.
Review the requirements carefully to ensure your application is complete and your facility is prepared to pass an inspection within 60 days of submission. The application and checklist for the Step 2 application can be found here.
How we can help you get a Michigan Cannabis License:
At Cannabis License Experts, we provide you with the guidance to plan your cannabis business, acquire funding, navigate the legal requirements, and acquire the appropriate cannabis license for your operations.
As cannabis legalization in the U.S. develops, more and more licensed producers, cultivators, and retailers will be needed to meet the demands of consumers. Cannabis License Experts offers support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, Preventive Control Plans (PCPs), and more. Contact us today to discover how we can license and legalize your cannabis business to meet federal and state regulations.