The legalization of marijuana in Michigan has been a popular subject for the past few years. And with the new Michigan Recreational Laws that were released in July of this year, the rules and regulations for the use and selling of recreational marijuana have changed.

Last year, Michigan residents voted for the sale of recreational use by those over 21. With these regulations, adults could grow a maximum of 12 marijuana plants in their home. Despite this legislation being passed, the marijuana could still only be bought by those with a medical marijuana card.

If you’re interested in starting a recreational or medical marijuana business in Michigan, here are the top 10 facts that you might not know regarding Michigan Recreational Laws:

 

Michigan’s Marijuana Regulatory Agency will begin accepting applications for businesses on November 1st

The application laid out by the MRA will cover individuals that are looking to sell marijuana recreationally. Recommended to be completed online, the application will consist of two steps – including pre-qualification and establishment licensing. During the first step, individuals will have a thorough background check and will be charged a non-refundable application fee of $6000 (after all of the applications have been correctly submitted.
The establishment licensing step will consist of the MRA vetting the business. This will include an examination of finances, specifications, employee information, etc.

The Licensing Process Carries A Fee

As well as having to pay for a non-refundable application fee, businesses will have to pay an initial license fee. This fee will depend on how big their business is/will be and is decided based on a tiered structure. For example, a provisioning center will have to pay a new license fee of $44,00 and a Class A grower, $10,000. Once applying for the license the exact fee will become clear.

Bigger Business Might Benefit More

Under the new law, Michigan businesses are able to hold up to five large-scale grow licenses. A new license type which is called ‘excess grow’, it’s designed for larger businesses that are operating in the recreational and medical market that want to increase their production.

They Are Paving The Way For Marijuana Micro Businesses

Marijuana micro businesses are starting to take over. Allowing for vertical integration, they are permitted to grow up to an impressive 150 plants – a lot more than is possible in residential homes. Having the ability to process, package and sell the marijuana to customers, it’s a big movement that will impact those with recreational marijuana businesses in Michigan.

The Social Equity Program Will Have an Impact on Businesses

The MRA has recently announced a development in their Social Equity Program which was designed to encourage residents to participate in recreational marijuana. This will have a large impact on businesses as it will help to increase the number of customers visiting shops and purchasing the product.

It Might Be Easier To Open A Recreational Business Compared To A Medical Establishment.

This is because medical establishments will have to prove to state regulators that they have between $200,000 and $500,00 in financial assets whereas, although businesses must disclose their finances, they don’t necessarily need a certain amount in the bank. Also, the licensing fees for recreational businesses are lower than those of medical establishments.

There is An Overlap Between Old and New Regulations.

As the regulations are still being defined, there is a lap between the new and old regulations – making it more difficult for those looking to start a recreational business before December of this year.

December = When The State Finalizes Regulations and Licenses.

It’s important to know that the state has until December 6 to finalize the regulations and licenses for recreational marijuana shops.

It Still Won’t Be Legal To Smoke in Public.

Even after the new recreational laws have been finalized, residents will only be able to smoke in private. In addition to this, recreational business owners of marijuana can prohibit the smoking of the product on their premises.

It Won’t Be Available Everywhere in Michigan.

This is an important fact that will impact where you set up your business. After the vote was cast, it was declared that there were certain communities that passed on the decision to have recreational businesses in their location (506 to be exact). If the community does change its mind, it’s likely that the prospect of business will arise quickly – however, it’s not guaranteed. So before you start to set up your business, it’s important that you check the legality of the shop in that community.

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