Every year, thousands of Michigan cultivators start new ventures and become productive agricultural community members. Michigan law requires all potential cultivators to obtain a license for those who are just getting started. Whether you are starting up a dispensary or cultivating your crops for personal consumption, here are seven important facts about the Michigan cultivation license that you should know.
What is a Michigan Cultivation License?
A Michigan cultivation license specifies exactly what a cultivator may and may not do. Whether you are a dispensary or a personal cultivator, you must follow the rules outlined in your state license. According to the Department of Licensing and Regulatory Affairs (LARA), “Cultivation facilities have many requirements under state law and rules. These include security, record keeping, reporting, and inspections by LARA.”
How Do You Apply for the michigan cultivation license?
If you are applying for your first cultivation license, or if you need to apply for renewal due to an expired license, be prepared to provide detailed information about your business plan. Additionally, you will need to pay a non-refundable application charge and your license fee. LARA requires all applicants to submit their application and payment by mail. After all relevant information has been received and processed, LARA will send out a licensing structure for review. If the cultivator is comfortable with the licensing system, they will sign and return it to LARA within 30 days.
Here Are the Five Things You Should Know about Michigan Cultivation License:
1. The Individual Who Holds the License Must Be Responsible for the Activities of the Cultivation Facility
The person(s) who holds or will hold the cultivation facility license must be named on the application and sign it. If you are a corporation, your president and treasurer must sign on behalf of your organization. If you are a limited liability company (LLC), one member should sign on behalf of your LLC. Additionally, all shareholders, partners, or members in a corporation or limited liability company must consent to the application by signing their names on lines 9 through 11 of section A of your application (page 2).
2. The Individual Who Holds the License Must Meet All Requirements
According to state law, cultivators must be 21 years of age or older to obtain a license. However, all corporation or limited liability company members must meet this requirement. Additionally, any person(s) involved in the cultivation process must receive authorization from a local municipality before applying for a license. Another important requirement for all applicants is that they cannot have any felony convictions within the last 10 years, according to Section 823(c) of the Michigan Medical Marihuana Act.
3. The Licensee Must Meet Security Requirements and Restrictions
In addition to the requirements above, cultivators must also meet several security requirements. For instance, all cultivation facilities must have an active burglar alarm on the premises and armed guards who can patrol the site throughout the night. Furthermore, cultivators may not allow the cultivation of marijuana within 200 feet of any school grounds unless they obtain a variance from local authorities. Cultivators must also follow the rules regarding storing dried marijuana flowers, leaves, and other products as determined by LARA.
4. There Are Licensing Fees for Each Cultivation Facility
Following Section 27 of the Michigan Medical Marihuana Act, all cultivators must pay an application fee of $4,000 (plus $250 for each additional location) and a regular annual license fee of $10,000 for each business location. This fee is due before LARA reviews your application. Furthermore, LARA has the authority to charge up to $5,000 per day for late fees if your application is not complete within 30 days of submission.
5. The Facility Owner Must Meet Record-Keeping Requirements
Lastly, the owner of each cultivation facility must keep detailed records of all marijuana on the premises. These records include but not limited to. The dates and amounts of marihuana transfers within and outside of the facility, the dates and quantities distributed or sold to patients or caregivers, and the date and quantities destroyed. In addition to these requirements, cultivators must keep all other documentation as determined by LARA.
What Are the Renewal Requirements of michigan cultivation license?
If you have a current cultivation license and want to renew it, be sure to submit your application on time. LARA requires all renewal applicants to submit their application and payment by mail. Once LARA has received your renewal application, they will send out a licensing structure for review. If the cultivator is comfortable with the licensing system, they will sign and return it to LARA within 30 days.
How Much Does the michigan cultivation license Cost?
The cost of a cultivation license varies depending on whether or not a business is already licensed in Michigan or if they are applying for their first license. If a Michigan business is already approved, it will cost them $1,000. If they are applying for their first license, it will cost them $2,000.
Where Can I Get the michigan cultivation license?
Permissions granted only to individuals who can legally operate a commercial cannabis business in Michigan. Licensed facilities must renew their licenses every two years, or they will lose their rights. All potential licensees should apply online at michigan.gov/licensing/ and use the application form LARA has provided on their website.
What Does the michigan cultivation license Do?
A cultivation license specifies exactly what a cultivator may and may not do. Whether starting up a dispensary or cultivating your crops for personal consumption, you must follow the rules outlined in your state license. According to the Department of Licensing and Regulatory Affairs (LARA), “Cultivation facilities have many requirements under state law and rules. These include security, record keeping, reporting, and inspections by LARA.”
Although the Michigan licensing structure is very stringent, it is a necessary step because of the large number of marijuana businesses operating in the state. It’s important to understand that obtaining a license does not give you free rein over anything. The cultivators still required to follow local zoning laws and regulations. If you are still unsure of your state’s laws or if you have any other questions, contact a local attorney or the Department of Licensing and Regulatory Affairs directly.