Michigan on Tuesday extended the deadline for dozens of existing medical cannabis dispensaries to receive permanent state licenses, an effort to try to ensure the MMJ market continues without turmoil.
The emergency rule adopted by the state extends a Sept. 15 deadline to Dec. 15.
Over the past year, the state has extended deadlines several times for existing medical marijuana businesses to apply and receive a license, or close.
Last December, the state gave businesses until Feb. 15 to turn in initial applications, and a June 15 deadline to receive their state license. But that deadline has since been extended twice, at least for some applicants.
Here’s what you need to know about the situation:
- The state already approved 19 dispensary licenses under its new, stricter regulatory regime.
- Another 108 existing MMJ businesses – the vast majority of which are dispensaries – will be allowed to remain open another three months while their applications continue to be reviewed. These are businesses that filed the state’s facility license application (Step 2) of their applications by June 15.
- A group of 98 applicants that failed to file Step 2 by June 15 or didn’t submit the second phase of paperwork at all will be required to close after Sept. 15 or will be issued cease-and-desist letters.
“It’s definitely possible that not all of them are currently operating,” said David Harns, spokesman for the Michigan Department of Licensing and Regulatory Affairs.
Marijuana Business Factbook 2018 projects MMJ sales could hit $325 million-$425 million this year, depending on the amount of disruption that occurs during the transition to the new regulatory system.