Official Administrative Rules for Facilities Licensing Act

[Michael Komorn]

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.

 

[semicaregiver]

Every day there is some fascinating conundrum presented by LARA/BMMR.   The other day there was a post indicating that LARA was willing to accept 72 plants as nearly 100% of the liquid assets requirement for a 500 plant license.  The idea was that you had 72 ready to harvest plants each with 7 ounces valued at $300/z (LARA's #'s).   This would represent $144,000 of your $150K capitalization.   Curious how this plays out when you submit your application showing that you are ready to harvest 30+ pounds and they then turn you down.  Do then then arrest you for being over your 15z limit?

[Guest Josh_Colton]

I would definitely be of the opinion that any individual who applies for a license should avoid listing any caregiver plants, usable marihuana or any other marihuana infused products as part of their capitalization. Nothing good can come from the scenario described above. 

[bobandtorey]

I sure can agree to that it can't be good 

[Guest Josh_Colton]

Fascinating how no matter how much rush there has been to be the first person in the door, none of that matters when the state provides a bunch of last minute rules in the application instructions, emergency rules, and the application itself. Patience has become a must have virtue.  

https://www.freep.com/story/news/2017/12/15/medical-marijuana-michigan/953853001/

[semicaregiver]

The really big winners will be the existing dispensaries that are licensed locally.  

The locally licensed dispensaries now have until 2/15 to submit an application. Assuming that all the other non-locally licensed dispensaries close, the dispensaries in Detroit and Ann Arbor will have the market to themselves.   At the same time they can continue to buy from their existing sources until they get their license.  The net result could be a 4-6 month market place of only a handful of operating dispensaries that will be able to operate outside the BMMR rules that apply to state licensed dispensaries.  

 

[shishka]

54 minutes ago, semicaregiver said:

The really big winners will be the existing dispensaries that are licensed locally.  

The locally licensed dispensaries now have until 2/15 to submit an application. Assuming that all the other non-locally licensed dispensaries close, the dispensaries in Detroit and Ann Arbor will have the market to themselves.   At the same time they can continue to buy from their existing sources until they get their license.  The net result could be a 4-6 month market place of only a handful of operating dispensaries that will be able to operate outside the BMMR rules that apply to state licensed dispensaries.  

 

Pretty much what we have had for the last what, 5-8 years.

[kevinjoseph]

I would be of the assessment that any person who applies for a permit ought to abstain from posting any parental figure plants, usable marihuana or some other marihuana injected items as a feature of their capitalization. No good thing can emerge out of the situation portrayed previously.

[shishka]

2 hours ago, kevinjoseph said:

I would be of the assessment that any person who applies for a permit ought to abstain from posting any parental figure plants, usable marihuana or some other marihuana injected items as a feature of their capitalization. No good thing can emerge out of the situation portrayed previously.

I don’t know, last month or the month before a dude was approved for a class A and his capitalization attestation included 72 plants and a picture of a pile of cash. 

You never know.