Michigan unveils license instructions for $1.4B adult-use cannabis market

Michigan regulators released detailed instructions on how businesses can apply for adult-use cannabis licenses beginning Nov. 1.

There are no statewide caps on licenses for a market expected to launch next year, but municipalities can restrict the number.

Marijuana Business Daily projects Michigan could generate $1.4 billion-$1.7 billion in annual sales within several years of the launch.

But the numbers may depend on how many municipalities opt-out.

Nearly 1,000 of the state’s 1,773 communities have at least for the time being decided to ban retail stores in their areas.

License types for those that don’t possess a medical marijuana operating license include:

  • Grower
  • Microbusiness
  • Social consumption establishment
  • Safety compliance facility
  • Marijuana event organizer
  • Temporary marijuana event

For those with an MMJ operating license, there are grower, processor, retailer and transporter licenses available.

Michigan’s Marijuana Regulatory Agency will use a two-step process:

  1. Prequalification
  2. “Establishment licensing” involving strict vetting

There is a $6,000 nonrefundable application fee for the main applicant, which is the entity or the individual seeking to hold the state license.

Social-equity applicants qualify for reduced fees.

Applicants seeking grower, processor or microbusiness licenses must pass a Bureau of Fire Services plan review.

For more details on the application process, click here.

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5 comments on “Michigan unveils license instructions for $1.4B adult-use cannabis market
  1. IQof2 on

    This is an interesting approach, concerning Microbusiness.

    There are no limits on licenses issued by the state, but municipalaties can limit the number.

    A licensee can have up to 150 plants, process into concentrate, make edibles, and sell them to the public at the retail level. Sales to other businesses are not allowed.

    This differs greatly from the Illinois program which places an impenetrable barrier between cultivators and the retail level.

    There is also a 2 year ban preventing non-residents from applying for a Microbusiness license. Which is wonderful. Both of me approve!!

  2. Danny Oberman on

    Why would anyone spend (non refundable)$6000.- only to find that the municipality where he /she was planning to open shop, has changed their mind and opted out.
    Once again the uncertainty gives a tailwind to the blackmarket- making it even harder for the legit licence holder.

    • Ruth A Cook on

      Join your council. Encourage like minded individuals to do the same. In return for about three hours a month of voting to keep the city water and lights on you get to control the ordinances you care about. The $6000.00 is the max a municipality is allowed to charge. Your council could vote to lower the fee.

  3. Glenda on

    I agree with Danny Oberman just to hand over $6000.00 non refundable dollars is just crazy knowing that the black market community has the upper hand in that case well them and the state .

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