How should those disbursements be reported on the P3 Schedule of Disbursements? Need a few pounds down in wv to Combat the opiate problem. As with most things in life, timing is key; this is the same for the cannabis real estate industry, yet it is one of the most overlooked factors in determining the price you will get for your dispensary. Retail Innovation Labs LLC Trading as Cova Software. Recreational cannabis in Michigan was legalized in November of 2018. An overview of the medical and recreational marijuana laws in Michigan. Of course, itll depend on what type of cannabis license you want to get for your operation. Dispensaries: Compassionate care centers will be licensed by the state. Detroit finally announced the rules for allowing licensed adult-use marijuana sales with a conscious effort toward giving social equity applicants a fair opportunity as well. It is our goal to be one of the best legal resources for cannabis real estate industry. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer. Possessing or using any amount of marijuana meant jail time and growing small amounts of marijuana was a felony with up to four years in jail. How much is the fee? Who can apply for a license and is there an age requirement? Here, a quick word to the wise: you need to be VERY careful with text message marketing of both medical and recreational marijuana. Every person, from an investor to an employee, will be background checked throughout the process. Medical marijuana can be delivered to the home of any registered qualifying patient, even if the patient's jurisdiction does not allow dispensaries. For dispensary buyers, seller financing can save a lot of up-front money, which can instead be used to build out the inventory and stock shelves. If anyone could give me a run down of everything that goes into the process of selling into dispensaries, it would be greatly appreciated. Since this Gen X is the busiest generation of cannabis consumers, the most successful way to market your cannabis dispensary to this demographic is to add convenience to their purchase journey. Some municipalities have opted to restrict or prohibit the opening of retail stores. The Michigan Marijuana Regulatory Agency, or MRA, is tasked with overseeing cannabis business licensing. As a Michigan cannabis real estate broker, I have worked on deals on the seller side where I was shocked to discover that anyone would agree to pay that amount. Dont miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them. 4. Requirements for processing hemp in Michigan can be found in the Industrial Hemp Research and Development Act, PA 547 of 2014, as amended. But timing your sale can also be important with respect to yourspecific municipality and location. It costs $10.000 in-licenses fees, plus the application fees that are an additional $6.000. You may also need to get approved and licensed by your municipality. However, when it was open, the revenue numbers were rather dismal as the partners seemed to have opened it just for the sake of opening, without making much of an attempt to market or proactively drive sales. How to Open a Dispensary in MI: Licensing and Permitting. I own multiple licensees that have common ownership. What percentage of sales tax are medical facilities required to pay? There are two fees associated with the adult-use marijuana retail license in Michigan. The industry is getting a lot of attention for its impressive growth in such a short amount of time. If a current application is under review by the Agency, can I change the ownership? The state, If you have been arrested for driving under the influence of cannabis in Illinois, you need to contact an Illinois cannabis DUI attorney as soon, Copyright 2023 | All rights Reserved This can really skyrocket expenses for a burgeoning business. How do I know if my Annual Financial Statement (AFS) Report has been approved? You should know that for the first two years, the. Launch our Search utility. Can a bar or restaurant be licensed to allow adults to use marijuana on the premises? The U.S. federal government still prohibits the use of . After that only licensed grows by the state of Michigan with approval of the city that they're growing in will be able to sell to dispensaries. Marijuana possession in Michigan is not illegal. If you wait too long, and those new dispensaries start cannibalizing your business, then you may end up getting a purchase price substantially less than what you would have gotten if youd listed your dispensary for sale before the cityaccepted those licenses or ordinances. Can I have more than one marijuana microbusiness? Can I submit an incomplete prequalification application? What is the timeline to process an adult-use application? There are three different ways that a medical or adult-use cannabis dispensary can send daily compliance reports from their point of sale to Metrc: 1. To renew your expired processor-handler license, you are required to submit your completed renewal application, along with the license renewal fee, and all required documentation. Must my Annual Financial Statement (AFS) report include the financial dealings of the previous ownership that occurred during the reporting period? That's especially so in states like California, where recreational cannabis recently became legal. Detroit finally. You must have an active pharmacist license in good standing issued by the Department of Consumer . The buyer, on the other hand, saved half a million in upfront costs, which they could use to fully stock the inventory and for working capital. Michigan Cities Allowing Marijuana Businesses Can I submit my Step 2 application at the same time as Step 1? Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. Many 8 Mile dispensaries were seeing eight figure offers. What impact does the MMFLA have on patients or caregivers operating under the MMMA? But that is coming to an end real fast. Am I required to submit an Annual Financial Statement (AFS) report if my license has been closed or not renewed? There are two fees associated with the provisioning center licensing process. Can a person seeking certification for medical marijuana do so in a provisioning center? Is there a separate fee for the caregiver? Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. Billboards and Weedmaps can be good tools, but there are others at your disposal as well. As the legalized recreational marijuana industry continues to grow in Michigan, more and more businesses are opening for business. Why is marijuana sometimes spelled with an "h" and other times spelled with a "j"? This applies to both physical and online sales activities. The second step is license qualification, which includes providing more information specific to the type of license sought in this case, a provisioning center license. The Board had previously set, when the law first passed in 2019, as requirements for dispensary owners the following criteria: However, they are currently amending the requirements set on their webpage, which could potentially mean that they are making some changes to the applicability of those wanting to get a Cannabis license in Michigan. Late fees apply on license renewals ( MMFLA Section 333.27402 (11)) Cost to Open a Dispensary. While this can be important, it doesnt really have as much relevance as some may think as the numbers really determine the value on the cannabis real estate market. How much is the fee? All of our seeds are lab tested for genetic quality, hand picked just for you, and shipped directly to your door in . Can I rescind a physician certification that I already completed for a patient? My business "cleans" hemp seed for a registered industrial hemp grower. A provisioning center may offer home delivery once the facility's delivery procedures have been provided to and approved by the MRA. Today, there. A seed cleaner is involved in part of the process of converting raw hemp to a marketable form and would therefore need the processor-handler license. Obviously, you can start with a call to the dispensary. My business is developing an in-field THC testing kit, and we will collect hemp samples to test the efficacy of the kit. No, youll need to pay with separate checks as these application types are not processed by the same agency. Since the consultants we work with tend to do a lot of business with the bigger Michigan cannabis brands, oftentimes we find that they can help negotiate lower wholesale prices for these products, which can improve both revenueandmargin. If youre already operating a company just call us. What documentation is required when applying for a medical marijuana state operating license? Does product have to go from a grower to a processor or can a grower sell product directly to a provisioning center? Just show your valid driver's license, passport, or state-issued I.D. While this is OK for other industries, the Michigan Medical Marijuana industry is different. When you work out the numbers, the seller would have received closer to $1.15M, or an extra $300,000, with seller financing. But Michigan regulators felt it was necessary to phase out caregiver contributions, to spur investment in licensed grow facilities. It is the dispensary's job to identify the best products for their target market, which requires communication with grow ops, product samples, laboratory testing and more. 300 Great Oaks Blvd, Suite 300-022 Albany NY, 12203, How To Get a Commercial Marijuana Growers License in Michigan, MICHIGAN PRE-QUALIFICATION MARIJUANA LICENSE, How to Apply for a New York Cannabis License, How to Apply for A Cannabis Retailer License in Minnesota, Illinois Cannabis DUI Lawyer What You Need to Know, Washington Social Equity Cannabis License Application, Illinois Cannabis Dispensary Application 2023 | Social Equity License Lottery, How to raise funds for your cannabis company. What do I do? Licenses are given out for marijuana cultivators, processors, testing facilities, transporters, and, of course, dispensaries. Business specifications may include an estimated open date for your dispensary; Proof of premises ownership or a lease agreement; Estimated gross annual income; A marijuana facility plan; A cannabis retail marketing plan; A cannabis product inventory and record keeping plan. The MRA follows the same two-step application process for adult-use marijuana licensing. PUBLISHED DECEMBER 18, 2020 - UPDATED JANUARY 29, 2021. The average Medical Marijuana Growers salary in Michigan is between $43,530 and $64,077. However, barriers, such as prohibition, make seed cultivation tricky. If you are looking to sell your dispensary, give the experts atMichigan Cannabis Propertiesa call to set up a free consultation. Additional fees may be imposed at the municipal level; check with your local municipality to find out more. Take the city of Detroit, which unsuccessfully tried to opt-in a few months ago with an adult-use ordinance with certain provisions that certainly seemed to be unconstitutional, along with a poison pill that threw out the entire ordinance if any provision was found unlawful. Dont miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them. For both the medical marijuana program and recreational marijuana program, the licenses available in Michigan are: Michigans Department of Licensing and Regulatory Affairs (LARA) is the agency in charge of issuing licenses to cannabis operators. Among states with legalized medical cannabis, Oklahoma had the largest number of dispensary licenses as of summer of 2021. However, you should take some common-sense steps and consider speaking with an attorney to advise you. Will my license expire and how often will I have to renew my license? mixture of the right knowledge and legal experience, Land contracts and mortgages back to the seller are shockingly common, Choosing the Right Location for Your Cannabis Business, How to Sell Your Dispensary for Top Dollar, How To Make Your Cannabis Property Listing More Attractive: ATTACHING MUNICIPAL PERMITS. In the drop down menu for "License Type," select "Provisioning Center - License." 3. Broker - Engaging or participating in the marketing of industrial hemp by acting as an intermediary or negotiator between prospective buyers and sellers. In addition to medical marijuana dispensaries, beginning January 1, 2020, recreational dispensaries will also be allowed to apply for licenses to sell adult-use cannabis to the public. Does this qualify me for an adult-use marijuana establishment license? How do I get a replacement registry identification card if mine is lost, stolen, or damaged? Contact the Michigan Department of Agriculture and Rural Development (MDARD): Phone Number: 800-292-3939 Everything you need to know about opening a retail cannabis location in Michigan. 300 Great Oaks Blvd, Suite 300-022 Albany NY, 12203, How To Open a Marijuana Dispensary in Michigan. Avoid showing up to a cannabis dispensary without a meeting. View Department pages to learn more about working in state government, connect with us on social media and contact department Equity and Inclusion Officers. The first is an application fee of $6,000, which must be submitted before the application can be processed. Below is an updated listing for non-residents purchasing out-of-state medical cannabis and recreational marijuana. Can a microbusiness obtain plants from a caregiver? What should I do? Cannabis licenses in every state of the United States tend to be a tricky situation, Michigan is not the exception. Earnings Before Interest, Depreciation, Taxation and Amortization), but not profits. I am a licensed hemp processor and assume I need to record weight of incoming hemp shipments and the weight of products that we produce from hemp. Does the Agency allow licensing stacking? However, equally important to note is that this percentage varies in . Who can certify a patient's medical use of marijuana? The Cannabis Regulatory Agency will establish Michigan as the national model for a regulatory program that stimulates business growth while preserving safe consumer access to cannabis. Class A is a Grower license for 100 marijuana plants, Class B is a Grower license for 500 marijuana plants, and, Allows applicants to begin the application process while still seeking a location for the proposed marijuana facility, It starts by filing an Entity/Individual Pre-qualification Packet. Dont be one of them. In March 2020 the Marijuana Regulatory Agency announced a phase-out process to end external transfers to the regulated market, which included products grown and processed by caregivers. How should my payroll be reported on the P5 Schedule of Payroll Taxes? Once all information is received and confirmed to be correct, your license will be issued. Michigan's MRA began accepting adult-use cannabis facility license applications on November 1, 2019 only from persons currently holding a medical marijuana operating license. Of course, oftentimes the real estate is held in a separate holding company but that does not mean you do not need that money. Press question mark to learn the rest of the keyboard shortcuts. Is there a limit on how many times an entity can change ownership? This is why it is so important to know how to comply with all regulations governing its use. Where should I submit my amendment documents? Anyone over the age of 21 can buy weed legally in Michigan, no matter what state or country you are from. As a Michigan cannabis real estate broker, I have worked on deals on the seller side where I was shocked to discover that anyone would agree to pay that amount. Can I use one check to pay for my hemp Grower Registration and hemp Processor-Handler license? Another consideration when valuing a dispensary is whether the dispensary is medicali.e. After that only licensed grows by the state of Michigan with approval of the city that they're growing in will be able to sell to dispensaries. Adult-use retail sales: Purchases are subject to a 16% cannabis excise tax in addition to a 5.6% statewide retail sales tax, bringing the total to 21.6%. Everyone involved in your business will have a background check during this phase. Watch out for additional taxes at the municipal level. I am a Certified Public Accountant (CPA) conducting the Agreed-Upon Procedures report. Sales began Dec. 1, 2019. What may potentially prevent an applicant from getting approved for a state operating license? If you want to learn how to open a Marijuana Provision Center in Michigan or apply for any adult use marijuana grower, processor, or transporter licenses, here is all the information you need. Feminized Seeds Growing Cannabis Seeds in Michigan For the most part growing cannabis seeds is easy. If you are in a city and doing great numbers but know many neighboring cities that you draw customers from are on the verge of granting new licenses or passing an MMFLA or MRTMA ordinance, then you may want to think about selling before that happens.