If you’re in the process of setting up a marijuana business in Michigan, or you have designs on creating a new company, you may be exploring your options. If you’ve done research into different business models, it’s likely that you have come across vertical integration. Within the sphere of the marijuana industry, vertical integration usually involves both cultivating and dispensing, but is it a good idea, and does it represent the right approach for your new venture?
In 2018, President Donald Trump took steps to legalize the sale of hemp-derived products via the Farm Bill; a set of measures designed to make it easier for entrepreneurs to sell products containing CBD. But while it is legal to sell marijuana in some states, the Food and Drug Administration recently warned that is not yet legal to sell CBD-containing foods, cosmetics or dietary supplements.
Michigan has passed a revised marijuana framework, which comprises five types of marijuana licenses. If you’re thinking of setting up a business that dispenses either medical or recreational marijuana in Michigan, it’s essential to be aware of changes in legislation and to familiarize yourself with the different types of license set out by LARA.
2018 PA 10 is a set of rules that clarifies and updates the existing regulations concerning Michigan marijuana transportation for growers, processors, and safety compliance facilities. The purpose of the law is to provide more details about situations in which a secure transporter may not be required. The thrust of the new rules is to help to streamline operations of all stakeholders in the industry and, ultimately, cut overall costs.
There are several different types of licenses available to commercial marijuana growers in Michigan. Each license is intended for an operation with a specific purpose, including growing, selling and processing, transporting, provisioning and safety and compliance. There are also different types of grow licenses, which are Class A, B and C. Anyone who wishes to apply for a license needs to ensure they are applying for the correct license that corresponds to their business model. Below you can find information about the different types of commercial grow license.
Day 1 was such an exciting day for Fowler & Williams, PLC! Aimee and Dan attended the first ever CIMP in Birch Run, MI. We had the pleasure of meeting a lot of like-minded industry professionals from all over the world and many curious minds looking to break into Michigan’s growing industry. We didn’t get too much coverage because we spent most of the day answering questions and educating event attendees.