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MMFLA Regulatory Assessment Fees Announced for 2021


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As required by Section 603 (read below) of the Medical Marihuana Facilities Licensing Act (MMFLA), the amount of the regulatory assessment fee for licensed medical marijuana facilities are determined annually. 

The fees have to be paid by those approved for a license by the Marijuana Regulatory Agency (MRA) before being issued or renewal.

The MRA issues renewals and licenses and the regulatory costs are now distributed amongst more contributors into the regulatory fund. 

The MRA bulletin can be read below or viewed here


MRA – ADVISORY BULLETIN August 17, 2020

Medical Marihuana Facilities Licensing Act Regulatory Assessments for Fiscal Year 2021

The amount of the regulatory assessment for licensed medical marijuana facilities is determined annually as required by Section 603 of the Medical Marihuana Facilities Licensing Act and must be paid by those persons approved for licensure by the Marijuana Regulatory Agency (MRA) prior to issuance or renewal of each state operating license. As the market is maturing and the MRA continues to issue new licenses and renew existing licenses, regulatory costs are now spread across more payers into the marijuana regulatory fund. This has resulted in a significant reduction to the regulatory assessments for Fiscal Year 2021 (beginning October 1, 2020 and ending September 30, 2021)

MMFLA-Final_COMM_Approval-Regulatory_Ass

Each new license issued will pay the new license regulatory assessment listed above and each renewal license will pay the renewal regulatory assessment listed above based upon their market share during the previous fiscal year, as defined by Rule 420.7. To expedite the renewal process, all new licenses issued to existing licensees will be prorated so that the expiration date for all licenses held by a licensee will have the same expiration date as the licensee’s initial state operating license.

End


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Medical Marihuana Facilities Licensing Act (MMFLA)

SECTION 603

333.27603 Regulatory assessment.
Sec. 603. (1) A regulatory assessment is imposed on certain licensees as provided in this section. All of the
following shall be included in establishing the total amount of the regulatory assessment established under
this section:


(a) The department’s costs to implement, administer, and enforce this act, except for the costs to process
and investigate applications for licenses supported with the application fee described in section 401.
(b) Expenses of medical-marihuana-related legal services provided to the department by the department of
attorney general.
(c) Expenses of medical-marihuana-related services provided to the department by the department of state
police.
(d) Expenses of medical-marihuana-related services provided by the department of treasury.
(e) $500,000.00 to be allocated to the department for expenditures of the department for licensing
substance use disorder programs.
(f) An amount equal to 5% of the sum of the amounts provided for under subdivisions (a) to (d) to be
allocated to the department of health and human services for substance-abuse-related expenditures including,
but not limited to, substance use disorder prevention, education, and treatment programs.
(g) Expenses related to the standardized field sobriety tests administered in enforcing the Michigan vehicle
code, 1949 PA 300, MCL 257.1 to 257.923.
(h) An amount sufficient to provide for the administrative costs of the Michigan commission on law
enforcement standards.


(2) The regulatory assessment is in addition to the application fee described in section 401, the tax
described in section 601, and any local licensing fees.


(3) The regulatory assessment shall be collected annually from licensed growers, processors, provisioning
centers, and secure transporters. The regulatory assessment for a class A grower license shall not exceed
$10,000.00.
(4) Beginning in the first year marihuana facilities are authorized to operate in this state, and annually

thereafter, the department, in consultation with the board, shall establish the total regulatory assessment at an
amount that is estimated to be sufficient to cover the actual costs and support the expenditures listed in
subsection (1).


(5) On or before the date the licensee begins operating and annually thereafter, each grower, processor,
provisioning center, and secure transporter shall pay to the state treasurer an amount determined by the
department to reasonably reflect the licensee’s share of the total regulatory assessment established under
subsection (4).

333.27604 Marihuana regulatory fund.


Sec. 604.

(1) The marihuana regulatory fund is created in the state treasury.


(2) The application fee collected under section 401 and the regulatory assessment collected under section
603 shall be deposited in the marihuana regulatory fund. The state treasurer shall direct the investment of the
fund. The state treasurer shall credit to the fund interest and earnings from fund investments.


(3) Money in the marihuana regulatory fund at the close of the fiscal year shall remain in the fund and shall
not lapse to the general fund.


(4) The department shall be the administrator of the marihuana regulatory fund for auditing purposes.


(5) Except as provided in section 603(1)(d) and (e), the department shall expend money from the
marihuana regulatory fund, upon appropriation, only for implementing, administering, and enforcing this act.

333.27605 Use of money from Michigan marihuana registry fund.


Sec. 605.

The department may use any money appropriated to it from the marihuana registry fund created
in section 6 of the Michigan medical marihuana act, 2008 IL

1, MCL 333.26426, for the purpose of funding the operations of the department and the board in the initial implementation and subsequent administration and enforcement of this act.


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