Michigan Releases Medical Cannabis Emergency Administrative Rules

Michigan’s unregulated medical cannabis program will be moving forward.  The state’s Licensing and Regulatory Affairs has released Emergency Rules that will be in effect for the next six months after being filed with the Secretary of State today. The Medical Marihuana Facilities Licensing Act took effect in late 2016, giving the state authority to license and regulate all aspects of production and distribution. The law required implementation of a regulatory framework by December 15, 2017.

To date, no administrative rules have been promulgated under the authority granted to the department, in consultation with the Board that has been created within the department. Specifically, there are no current administrative rules to ensure the safety, security, and integrity of the operation of marihuana facilities. Pursuant to section 401 of the act, beginning December 15, 2017, persons may apply to the Board created within the department for state operating licenses in the categories of class A, B, or C grower, processor, provisioning center, secure transporter, and safety compliance facility. The Board is required to review all applications for licensure, issue or deny issuance of a license, and inform each applicant of the Board’s decision. If issuance is denied, the Board is required, upon request, to provide a public investigative hearing. In addition, any party aggrieved by an action of the Board suspending, revoking, restricting, or refusing to renew a license, or imposing a fine, shall be given a hearing before the Board upon request. There are no administrative rules currently in place that will provide for the implementation of these requirements as specified in the act.

The Bureau of Medical Marihuana Regulation oversees the process. The 33-page regulations include 51 rules, including the application procedure and requirements, capitalization requirements ranging from $150K to $500K for growers and $200K to $300K for other types of licenses, operational requirements, testing procedures and rules on edibles, including a 50mg THC cap per serving and 500mg per package (1000mg for capsules, suppositories and patches).

Breaking News by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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