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Under the new administrative rules for the MMFLA there is a specific section that addresses the transition period for MMFLA license holders. Rule 20 (included below) specifically references a transition period of 30 days in which marihuana products can be entered into the statewide monitoring system from the time a license is issued. Rule 20. Transition period. (1) To ensure the safety, security, and integrity of the operation of marihuana facilities, there is a transition period consisting of 30 calendar days during which marihuana product can be entered into the statewide monitoring system to ensure statewide tracking beginning on the day a state operating license is issued to a licensee for the first time except for additional licenses issued to the same license holder for a stacked license after a first license is issued. (2) Within the 30-calendar-day period, a licensee shall do all of the following: (a) Record all marihuana product in the statewide monitoring system during this 30-calendar-day period as prescribed by the act and these rules. (b)Tag or package all inventory that has been identified in the statewide monitoring system as prescribed by the act and these rules. (c) Comply with all testing requirements as prescribed by the act and these rules. (3) After the 30-calendar-day period, any marihuana product that has not been identified in the statewide monitoring system under these rules and the act is prohibited from being onsite at a marihuana facility. (4) A violation of this rule may result in sanctions or fines, or both. (5) At any time during this 30-calendar-day period and thereafter, a marihuana facility is subject to an inspection under Rule 16. Does this mean that any outside products (most likely produced by caregivers; plants, concentrates, and flower) would be allowed to be transitioned into the licensing system as long as they are tagged and meet testing requirements? This would be extremely beneficial to the transition to ensure that there is an uninterrupted supply of marihuana to patients, who rely upon dispensaries. Individuals applying for licenses or involved with such entities should still proceed with extreme caution as this rule does not legalize transfers of plants, concentrates, or flower from one caregiver to another or from a caregiver to a license holder and admitting to possession of a larger amount than 1 caregiver is allowed to carry at once or admitting to receiving a transfer from a caregiver may be incriminatory on both the license holder and the caregiver. The question that still remains is that when an individual at a facility identifies 1,500 fully grown plants in their facility 1 day after receiving a license, is the state going to want to know where that came from? Given the fact that caregivers are given a 5 day window to relinquish their caregiver status once approved for licensing and license holders are allowed a 30 day window to tag and test all items into the seed to sale tracking software, the question of what a transitioning caregiver should do is definitely a question to consider. See below link for entire administrative rules: http://komornlaw.com/wp-content/uploads/2017/12/Emergency_Rules_Medical_Marihuana_Facilities_Licensing_Act_607643_7.pdf Follow this thread as more insight and commentary will be provided daily on the emergency administrative rules and other rulings in relation to the MMFLA.
Below I have attached a link to all of the administrative rules that were released by LARA in relation to the MMFLA. This definitely provides some clarity and insight into what potential license applicants can expect through the process, while operating their facilities, and in their interactions with the state. http://www.michigan.gov/documents/opt/Emergency_Rules_Medical_Marihuana_Facilities_Licensing_Act_607643_7.pdf
The purpose of this bulletin is to advise municipalities (cities, townships, and villages) of the Bureau of Medical Marihuana Regulation’s (BMMR) intentions regarding municipality authorization of medical marihuana facilities. This bulletin is only for advisory purposes and is subject to change. Under the Medical Marihuana Facility Licensing Act (MMFLA), MCL 333.27101 et seq., a municipality has the discretion to adopt an ordinance authorizing one or more types of marihuana facilities to operate within its boundaries. An applicant that is located in a municipality without an authorizing ordinance is ineligible for state marihuana facility licensure. The Bureau intends to rely on the local municipality’s authorizing ordinance to determine whether an applicant is in compliance with relevant provisions of the MMFLA. Information that will be considered includes the following: The types of marihuana facilities (growers, processors, provisioning centers, safety compliance facilities, and/or secure transporters) allowed to operate in the municipality. If applicable, the maximum number of each type of marihuana facility allowed to operate in the municipality. Any zoning regulations that apply to marihuana facilities within the municipality, including whether licensees may apply for special use permits. More information regarding municipalities and the MMFLA: Municipalities shall not impose regulations regarding the purity or pricing of marihuana. Municipalities shall not impose regulations that conflict with statutory regulations for licensing marihuana facilities. There is no deadline for municipalities to adopt authorizing ordinances. Municipalities are not required to “opt out” or prohibit marihuana facilities within their boundaries. This bulletin does not constitute legal advice and is subject to change. It is intended to be advisory only, in anticipation of the Department of Licensing and Regulatory Affairs’ promulgation of emergency rules consistent with statutory requirements. Potential licensees are encouraged to seek legal counsel to ensure their licensure applications and operations comply with the Medical Marihuana Facilities Licensing Act and associated administrative rules. http://www.michigan.gov/documents/lara/ADVISORY_BULLETIN_-_Municipal_Authorization_FINAL_604557_7.pdf
Some clarity provided on fee structure for the licensing process, but nothing finite as they have only provided a range of potential fees. September 12, 2017 - At a meeting of the Medical Marihuana Licensing Board later today, the Department of Licensing and Regulatory Affairs (LARA) will inform the board members regarding several oversight issues and the implementation of the regulatory framework for the new Medical Marihuana Facility Licensing Act (MMFLA). LARA, in consultation with the board, has sole authority to promulgate rules and emergency rules as necessary to implement, administer, and enforce the MMFLA. LARA will notify the board of its intent to submit emergency rules necessary for the initial implementation of the MMFLA. The emergency rules – expected to be submitted in November – will further establish regulatory policies, including the application and licensing process and the fee structure. LARA is currently working with the board to develop permanent rules. Existing Facilities LARA consulted with the Michigan Attorney General’s office regarding facilities and dispensaries currently in operation and determined that any regulatory action will require an administrative rule. The department’s intent for the emergency rules is to consider any operation of a facility – that would otherwise need to be licensed under the MMFLA – as a potential impediment to licensure if continued after December 15, 2017. LARA will begin accepting license applications for all facilities on that date. This applies to all facilities defined under MMFLA. This approach will allow existing operations to wind down while also giving adequate time for patients to establish connections to caregivers to help ensure continuity of access. Fee Structure MMFLA requires LARA, in consultation with the board, to set the application fee and the annual regulatory assessment for each license. LARA will notify the board of its intent to submit emergency rules related to the following fee structure: The Application Fee is non-refundable and offsets the cost for LARA, the Michigan State Police (MSP), and/or contract costs for investigative services in order to conduct the background investigation of those applying for licenses. The nonrefundable application fee – which must be submitted with the application – will likely be in the $4,000 to $8,000 range, depending on the number of applications received. The annual Regulatory Assessment offsets operational costs and other statutory mandates including LARA’s costs to implement the act. It also offsets the cost of medical-marihuana-related services provided to LARA by the Michigan Attorney General’s office, MSP, and the Dept. of Treasury. By statute, the assessment must also provide $500,000 annually to LARA for licensing substance abuse disorder programs in addition to five percent of other state departments’ costs to the Michigan Department of Health and Human Services for substance abuse-related expenses. LARA is currently determining the annual regulatory assessment for fiscal year 2018 for each of the five license categories authorized by MMFLA. Grower A licenses are capped, by statute, at $10,000. Grower B-C, Processor, Transporter, and Provisioning Center licenses will be dependent on the number of total licenses subject to assessment and could be as low as $10,000 or as high as $57,000. The regulatory assessment does not apply to safety compliance facilities.