Michigan’s proposed medical marijuana regulations could very well force some existing companies out of business if they lack the financial cushion needed to secure a new license.
The proposed rules would require companies to have up to $500,000 to get a business permit.
According to MLive.com, the state’s Department of Licensing and Regulatory Affairs recommended marijuana businesses have the following amounts of start-up capital to receive a license:
- Grower class A (500 plants) – $150,000
- Grower class B (1,000 plants) – $300,000
- Grower class C (1,500 plants) – $500,000
- Processor – $300,000
- Provisioning center – $300,000
- Secure transporter – $200,000
- Safety compliance facility – $200,000
It’s not clear whether the Department of Licensing and Regulatory Affairs might lower the proposed capital requirements. The department is still seeking public comment on the proposed requirements.
MLive.com reported the department looked at capitalization levels in other states as well as other industries, including gambling and alcohol, when determining the figures.
The board will meet again on Nov. 28 and take license applications starting on Dec. 15.
