Cannabis in Michigan

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Cannabis in Michigan

If you're a proud citizen of Michigan and love cannabis, then this article is for you. The state has seen a lot of progress over the years, and the cannabis sector has become well-established rather fast. It’s all exciting news in this state, and cannabis in Michigan in 2021 has been nothing short of successful, despite the pandemic.

In Michigan, you can have legal cannabis for recreational use and for medical use. Recreational cannabis was legalized in November 2018 by Michigan Voters in the Michigan Regulation and Taxation of Marijuana Act after having passed with an impressive majority of votes at 56%.

Michigan Dispensary Laws
Cannabis has been legal for medical use since 2008 following a 63% vote in favor of it. After that, the Michigan Compassionate Care Initiative formalized the law, but dispensaries were still not permitted.

However, the latest legislation came with a new framework for operating and licensing medical marijuana dispensaries and retail stores for adults. Michigan named them "provisioning centers."

Marijuana Regulatory Agency
The MRA (Marijuana Regulatory Agency) is responsible for looking after the cannabis business licensing in Michigan. Upon legalizing cannabis, the state announced that the agency would be accepting application for the first 24 months from those who already hold a medical marijuana operator license.

As days passed, things advanced. Starting from March 2021, the MRA is now accepting applications for licensing recreational cannabis from new or old entrepreneurs who didn’t have a medical marijuana license in the past.

Some municipalities have initially refused to participate in Michigan's legal cannabis sector. However, many of them consider allowing recreational cannabis now, especially after the pandemic's impact on tax revenue.

Michigan's largest city, Detroit, has been doing all it can to ensure that residents from all demographics have an opportunity to participate in its thriving marijuana industry. The announcement is meant for those who believe Michigan needs a fair share distribution of licenses and permits throughout the different neighborhoods – without sacrificing any social justice or equality among its people.

Detroit announced another term idea: Detroit Legacy Applicants. This action will reserve 50% license opportunities within their community geared explicitly towards individuals residing in Detroit for more than 13 years over the last 30 years.
Below we are observing some observing other questions concerning cannabis in the Great Lake State.

What’s the process of getting a marijuana retail license in Michigan?
The MRA has begun to accept applications for the adult-use cannabis license since November 1, 2019. In the beginning, people only with the license of medical marijuana operations could apply.

However, from March 1, 2021, the Michigan Regulatory Agency stopped this specific application requirement and opened it to all people. People who qualified for Social Equity are being offered discounts on the applications, as well.

The MRA conducts a two-step process for finalizing the application. This same process goes for opening provisioning centers.

The first step is prequalification, including information submission, thorough background check, and the application fee. Then, the agency goes for a review of the retail proposal, which involves a physical investigation. Once approved, applicants have to pay the fee.

How much does it cost to apply for an adult-use marijuana retail license in Michigan?
For you or your company to be eligible for one of the sought-after positions operating legally in the marijuana market of Michigan, there are two fees in the process. Firstly, you have to pay a fee of $6000 in advance before being able to start applying. If approved, then another fee must also be paid at this stage: around $25,000 per license.

Depending on sales compared against other license holders annually, you may have to pay a renewal fee between $30,000 - $50,000. Business owners may have additional expenses based on their municipal level as well.

Paying those fees might seem like a lot of money, but it's worth the investment – especially if you want to operate in Michigan’s legal cannabis sector.

Becoming an adult-use marijuana licensee in Michigan is no small feat. These hefty fees are only fair to pay as they ensure that license holders adhere to the strict regulations set by state law.

With the recent legalization of medical and recreational marijuana in Michigan, now is an excellent time for would-be cannabis business operators looking to enter this industry. However, ensure you know all the laws that govern commercial cannabis production and sales before opening up a shop, as per law enforcement, could shut down your operations not long after you start!

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