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Michigan will allow one-stop shopping for some medical marijuana businesses

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The medical marijuana business is expected to explode next year when the state begins to hand out licenses, and rules released Thursday by the Department of Licensing and Regulatory Affairs could prove to be even more profitable for some budding marijuana entrepreneurs.

LARA said in an advisory that one person could apply for three of the licenses — grower, processor and dispensary — and locate all of those businesses in one facility.

“It’s something that we’ve had a lot of inquiries about,” said David Harns, spokesman for LARA, as people looking to get involved in the medical pot business get ready for Dec. 15, when applications for licenses will become available from the state.

The people seeking licenses will still have to go through approval processes in their home cities and the state, which will include background checks. And, if approved, they’ll have to ensure that there are separate work space areas, entrances and exits for each of the licensed categories.

 

And they won’t be able to apply for the other two categories of licenses — secure transport and testing of the medical marijuana, Harns said.

The consolidation of the business makes sense, said Amir Makled, an attorney for the Detroit dispensary Advanced Wellness.

“They’re collateral-type businesses, and this way, the patient can see what they’re going to purchase and go next door and buy it,” he said. “Some of my clients have a much larger facility, and they’ll be able to put in a smaller grow area to use up all their space.”

Jerry Millen has gotten preliminary approval for his Green House dispensary in Walled Lake and is waiting to open until the state licenses become available. If he gets a license to sell medical marijuana from the state, he’d like to pursue growing and processing licenses eventually.

“In a perfect world, dispensaries will start to open their own grows so they can be more vertically integrated,” he said. “If you come up with a good product, why not dispense it yourself.”

But they’ll all have to wait.

At a meeting of the Medical Marijuana Licensing Board last week, LARA officials said that in order to start with a fresh slate, the dispensaries that are operating now should close down by Dec. 15 or risk their chance for a license from the state.

Some dispensaries, like Advanced Wellness, have already voluntarily shut down so they don’t jeopardize their chances at a license. Others, like Millen’s Green House, have their storefronts ready to go, but are waiting to open until the state begins handing out licenses during the first quarter of 2018.

 

“I do everything in baby steps,” Millen said.

LARA still is developing the rules that will govern the medical marijuana business, including the production and packaging of non-smokable forms of cannabis, like marijuana-infused brownies, candies and oils.

A group, the Coalition to Regulate Marijuana Like Alcohol, also is collecting petition signatures in an effort to put the legalization of marijuana for recreational use on the November 2018 ballot. If that gets before voters and passes, the medical marijuana business, which is expected to generate $711 million in sales, would likely grow to more than $1 billion, according to industry estimates.

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3 hours ago, bobandtorey said:

 

 

 

 

A group, the Coalition to Regulate Marijuana Like Alcohol, also is collecting petition signatures in an effort to put the legalization of marijuana for recreational use on the November 2018 ballot. If that gets before voters and passes, the medical marijuana business, which is expected to generate $711 million in sales, would likely grow to more than $1 billion, according to industry estimates.

I'm curious why medical sales would go up if it were legalized recreationally. It would seem a rec market would take away from medical sales.

Guessing the author meant marijuana business not medical marijuana business

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I think the articles author was referring to the greater commercial availability of medical once large operations are able to operate. The rapid growth in MMMA patient's over the past few years will fuel commercial sales. The expansion in the patient base is outpacing any increase in the caregiver population. 

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September 21, 2017 – The State of Michigan’s Department of Licensing and Regulatory Affairs (LARA) released an advisory bulletin today to inform and advise prospective medical marihuana licensees regarding co-location of medical marihuana facilities. The bulletin is for advisory purposes only and is subject to change.

The Bureau of Medical Marihuana Regulation intends to allow for co-location in a single facility; a potential licensee may apply for – and be granted – the following licenses:

  • Grower
  • Processor
  • Provisioning Center

It is the intention of LARA that multiple licenses will be allowed to co-locate in the same facility if the following conditions are met:

  • For each license assigned to the same location, the facility must have separate working areas, separate entrances and exits, separate point of sale operations (if applicable), and separate record keeping systems. Each entity’s license must be posted on the wall in its distinct working area.
  • The municipality in which the facility is located must not have passed local ordinance or zoning regulations limiting the operation of co-located licenses.
  • The licensee is compliant with all local and state regulations regarding building inspection, fire safety, and public health standards.
  • The Department has specifically authorized the licensees to operate at the same location.

When deciding whether to pursue co-location of licenses, potential licensees should take into consideration that there may be additional inspections and/or permits required for co-located licenses. Also, each grower, processor, and provisioning center will require its own separate application, regulatory assessment, and license.

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.

More information on the BMMR can be found at the bureau’s website: www.michigan.gov/bmmr.

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