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.
Class A, B and C Licenses
Commercial grow licenses for marijuana include Class A, B and C licenses. These set out how many marijuana plants the operation is allowed to have. A Class A license allows the business to have 500 plants, a Class B license allows 1,000 plants and a Class C license permits the grower to have 1,500 marijuana plants.
Buying, Selling and Transferring Marijuana
Commercial grow licenses have stipulations about how licensees can purchase and sell marijuana. The sale of marijuana to the grower is only allowed with the use of a secure transporter unless otherwise stated elsewhere in the rules. Growers can transfer marijuana to a processor or provisioning center without using a secure transporter if it is in the same location and doesn’t require the use of public roads and if each transfer is entered in the statewide monitoring system. The license authorizes the grower to sell marijuana, other than seeds, seedlings, tissue cultures and cuttings, to a licensed processor or provisioning center. They must do this using a secure transporter.
Another regulation states that any holder of a grower license must not have any interest in a secure transporter or safety compliance facility. Until 31 December 2021, growers need to have or have as an employee someone who has at least two years of experience as a registered primary caregiver. However, neither the license holder or their employees should currently be a registered primary caregiver. The grower needs to enter all transactions, current inventory, and other information into the statewide monitoring system.
Upgrading a License
Some commercial marijuana growers might wish to upgrade their license from one class to another. To do so, it is necessary to apply for a license again. There is no need to repeat the prequalification step if there are no changes to the organizational structure, but a new facility license application is required, along with the correct supporting documentation.
Other Types of License
There are other types of license for marijuana businesses that might not be growing marijuana, or that might both grow and serve another purpose. These are licenses for processors, transporters and provisioning centers, as well as safety compliance facilities. It’s important to apply for the right type of license, whether it means choosing the correct one for your business model or selecting the right grower license from the A, B and C level licenses.