Michigan Cultivation License and Marijuana Laws
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The legality of marijuana in Michigan has undergone frequent changes over the past 11 years.
From medical caregivers in 2008 to the first recreational dispensaries opening their doors in 2019, cannabis has come a long way in Michigan, making it the 10 th state in the U.S. to legalize recreational cannabis.
Nonetheless, it is more difficult than ever to secure a Michigan cultivation license.
Below, we’ve provided high-level overviews of the Michigan cultivation license and marijuana laws.
Table of Contents
Michigan Marijuana Laws for Growers
A Michigan commercial marijuana growing license allows individuals to sell marijuana seeds or plants only through a secure transporter. In addition, it allows them to sell marijuana to a provisioning center or a processor.
Eligibility and regulations for a Michigan cultivation license include many moving parts, such as no safety compliance facility or a secure transporter. This means that an individual cannot also have these types of Michigan cultivation licenses if they have a grower’s license.
Michigan grower licensees must have an active employee who has two years’ experience at the minimum as a registered primary caregiver. The licensee cannot be a registered primary caregiver.
Marihuana vs. Marijuana
In the early 1900s, Michigan adopted its statutory definition of marihuana in the Public Health Code, utilizing the then-current federal spelling, marihuana.
Although updating something as simple as a single letter in spelling may seem like an easy task, extensive legislation would be required to change the spelling in Michigan for legal communication and statutes. Informal, non-legal documents will use modern marijuana spelling.
Types of Michigan Grow Licenses
There are two types of commercial grow licenses in Michigan, each with three classes depending on the number of cannabis plants you intend to cultivate.
- Medical grower classes: A (500 plants), B (1000 plants), and C (1500 plants)
- Recreation grower classes: A (100 plants), B (500 plants), and C (2000 plants)
The adult-use program also permits a microbusiness license. Equivalent licenses with common ownership will be allowed to operate at the same location, without separation, if the operation is not in violation of any local ordinances, regulations, or limits. Separate entrances, exits, point of sale areas, and operations will not be required.
Michigan Commercial Grow License Cost
The initial costs of a license at the state level include the application fee and the regulatory assessment. Additional costs at the state level are authorized under the Medical Marijuana Facilities Licensing Act (MMFLA) and may be required. An applicant may also need to pay a fee to its municipality of up to $5000.
State License Application Fee
The application fee is non-refundable and offsets the cost for LARA, the Michigan State Police (MSP), and/or contract costs for investigative services for conducting the background investigation of those applying for licenses.
The nonrefundable application fee is $6000.
State Annual Regulatory Assessment
The regulatory assessment is due prior to the issuance of each license and may vary depending on the number of licenses anticipated to be issued. The regulatory assessment does not apply to safety compliance facilities.
Grower A licenses are capped, by statute, at $10,000. Grower B and Grower C licenses will be dependent on the number of total licenses subject to assessment and could be as low as $10,000 or as high as $66,000. The exact amounts of the regulatory assessments are not available currently.
Michigan Commercial Grow License Application Requirements
Applying for a commercial grow license in Michigan is a long and tedious process.
To ensure you are filling everything out correctly and going above and beyond the requirements, we strongly suggest hiring a knowledgeable consultant and/or attorney. This will have the appropriate experience in the cannabis industry and can help you throughout the entire process.
There are two steps to the application; pre-qualification and license qualification.
In the pre-qualification stage, a thorough background check will be carried out. A background check is conducted on the main applicant and supplemental applicants, such as individuals with an ownership interest in the applicant.
This stage also looks at the financial fitness of the applicants to determine if they meet the minimum financial requirements for the grow license they are seeking. Additionally, to ensure that the financial backgrounds of the applicants are in order and do not have unexplainable sources of funds or transactions.
License Qualification Stage
The license qualification stage of the application process requires the applicant to outline what type of license they are applying for. Additionally, the applicant must submit where their facility will be located, and how they plan to run their business.
As part of this step, cultivators must submit an extremely detailed cannabis cultivation business plan. The plan includes extensive outlines for security, facilities, staffing, technology, recordkeeping, and waste disposal at minimum to be complete.
Marijuana Compliance in Michigan
The legal authority for marijuana is the Department of Licensing and Regulatory Affairs (LARA). The State of Michigan does not restrict the number of licenses, but cities and towns can regulate, ban, or limit the number of marijuana businesses in their community.
Read more about Michigan marijuana regulations.
- Read the rules onmedical regulations.
- Find more information aboutrecreational regulations.
- Learn more about theemergency regulationsadded July 2019.
State Tracking System
Michigan has contracted Metrc as the mandatory regulatory tracking system. Metrc is a seed-to-sale marijuana tracking system that uses serialized tags attached to every plant—and labels attached to wholesale packages—to track marijuana inventory. Tags are attached to a plant to facilitate tracking through different stages of growth. Additionally, the tag tracks the drying and curing processes, and eventual retail sale.
365 Cannabis is a validated third-party vendor for Metrc in Michigan. 365 Cannabis offers inventory control and tracking that is capable of interfacing with Metrc to track:
- All cannabis plants, products, packages, purchase totals, waste, transfers, conversions, sales, and returns
- Lot and batch information throughout the entire chain of custody
- Complete batch recall that clearly identifies all required criteria pertaining to the specific batch subject to the recall
We encourage you to always check the Department of Licensing and Regulatory Affairs website for the most up-to-date information.
Schedule a demo to see 365 Cannabis’ Metrc integration in action.
Keep up with the ever-changing legalities of marijuana in Michigan! Learn about Michigan cultivation license and marijuana laws from 365 Cannabis.
Growing marijuana in Michigan: Here’s what to know about the law
You can grow up to 12 plants indoors
Dave Bartkowiak Jr., Digital Managing Editor
DETROIT – As of Dec. 6, 2018 it is legal to grow your own marijuana in the state of Michigan.
According to the new Michigan law, a person who is at least 21 years old is allowed no more than 2.5 ounces of marijuana within his or her place of residence unless any excess marijuana is stored in a container or area equipped with locks “or other functioning security devices that restrict access to the contents of the container or area.”
That’s how the law reads.
Of course, while growing and using is legal, law enforcement officials are reminding residents that marijuana will be treated like alcohol: You can’t drive while under the influence, and using it openly in public can get you arrested.
But how much can you grow and where can you grow it?
Legal adults in Michigan are allowed to grow up to 12 marijuana plants inside their residence. That’s according to the proposal language that was approved.
According to the new law, individuals are not allowed to grow marijuana:
That means you’re going to want to be growing indoors, or outside in a shed or grow house. Keep in mind this is Michigan — the weather changes rapidly.
Meanwhile, medical marijuana caregivers in Michigan are still allowed up to five patients registered to him or her and can grow up to 12 plants for each of them. If the caregiver is also a patient and has five patients, he or she can grow up to 72 marijuana plants. Medical marijuana growers will emphasize the importance of having enough plants to serve a patient, or multiple patients, adequately with the correct strains at the correct times. This is where it can get complicated. Moreover, if you ever hear a grower use the term “cloning,” then you know they’ve been through the process extensively.
Michigan is first in Midwest
Michigan is the first state in the Midwest to legalize recreational marijuana. Here are the other states where recreational marijuana is legal and when it was made legal:
Growing marijuana in Michigan compared to other states
Michigan is one of only two states, the other being Alaska, where households are allowed to grow 12 marijuana plants. Most of those states listed above allow only six plants per household.
In Alaska, households are allowed to grow 12 plants if at least two adults (21 and older) live in the household. In Michigan, any household with at least one adult 21 and older is allowed to grow 12 plants.
That makes Michigan’s household marijuana cultivation law the least strict out of all of the states.
State issues marijuana sales licenses
The state’s Department of Licensing and Regulatory Affairs (LARA) needs to issue the appropriate licenses for anyone who wants to start a recreational marijuana business.
Here are the license types that are offered:
If you’re looking to grow some plants at your house for you, then you’re looking for the Class A license.
By the way . here’s why you may see the state spell marijuana as ‘marihuana’
LARA offers the following explanation for why you may see the department refer to marijuana as “marihuana,” substituting the “j” for an “h”:
The spelling of marijuana has a long history in the United States. Michigan’s history primarily starts from the spelling that was chosen for the Marihuana Tax Act of 1937. Michigan adopted its statutory definition of marijuana in the Public Health Code, utilizing the then current federal spelling, marihuana.
As governing state laws spell marihuana with an “h,” BMR legal communication and references to statutes in relation to the Michigan Medical Marihuana Act or the Michigan Medical Facilities Licensing Act or the Michigan Regulation and Taxation of Marihuana Act – and the corresponding administrative rules will use an “h” in the spelling of Marihuana. In non-formal communication, “j” will generally be used.
An act of the Michigan Legislature would be required in order to change the spelling of marijuana in the Michigan statutes, such as the Public Health Code or the newer marijuana laws.
For more coverage of marijuana in Michigan, go here.
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As of Dec. 6, 2018 it is legal to grow your own marijuana in the state of Michigan.