Michigan Officials Release Rules for Adult-Use Cannabis Business License Applications

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Michigan’s Marijuana Regulatory Agency (MRA) has released instructions on how to apply for adult-use cannabis business licenses ahead of a Nov. 1 start date for accepting the applications.

Beginning Nov. 1, the state will begin accepting license applications from prospective cultivators, retailers, “consumption establishments,” and “marijuana event organizers” and “temporary marijuana events,” according to an MLive.com report.

Applicants can visit the MRA’s website to access an overview of the licensing process, as well as online applications, step-by-step instructions for applying online and more.

The MRA will also accept paper applications, although it recommends applicants use the online system for faster processing, MLive.com reported.

The application process consists of two steps, according to the news outlet: prequalification and establishment licensing. The prequalification stage includes background checks and a $6,000 nonrefundable application fee. Once an applicant secures prequalification, he or she will be vetted by the MRA and will be required to provide business specifications, proof of financial responsibility, information on local regulations and employee information, as well as submit to an inspection of the facility, according to MLive.com.

The MRA outlines several potential reasons for license denial, including failing prelicensure inspection and failed background checks, MLive.com reported.

As the Nov. 1 date nears for the opening of applications, many Michigan communities have opted out of allowing adult-use businesses within their borders. Just over 50 percent of the state’s 1,773 municipalities have opted to ban the facilities as of Sept. 27, according to a Crain’s Detroit Business report.

When Michigan voters approved adult-use cannabis legalization in November 2018, a provision in the law allowed communities to opt out of hosting adult-use businesses—those who take no action will automatically become legal grounds for cannabis companies to set up shop, Crain’s Detroit Business reported. There is no deadline for municipalities to opt out, and many communities consider the opt-outs temporary as they wait for more clarity around the state’s adult-use cannabis law, according to the news outlet.

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