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Cannabis in Michigan

Michigan residents voted to legalize medical marijuana (spelled “marihuana” in Michigan statues) in 2008, but it wasn’t until 2016 that the legislature expanded the program to include licensing and regulating medical cannabis businesses. In 2018, voters approved a ballot initiative to legalize adult-use cannabis.

The state’s Marijuana Regulatory Agency within the Michigan Department of Licensing and Regulatory Affairs (LARA) began accepting license applications on November 1, 2019, and sales of recreational cannabis at licensed dispensaries (referred to as “provisioning centers”) are expected to begin in 2020.

Overview of Key Michigan Cannabis Laws

Is medical cannabis allowed? Yes

Is adult-use cannabis allowed? Yes

Personal Laws

Adults age 21 and older in Michigan can possess and grow cannabis for medical and recreational use within certain limits. They can also give away up to 2.5 ounces of cannabis without remuneration.

Personal Possession

Possession outside the Residence: Up to 2.5 ounces of cannabis flower and/or up to 15 grams of concentrates

Possession within the Primary Residence: Up to 10 ounces (any amount above 2.5 ounces must be stored under lock and key)

Non-Michigan Resident Purchases and Possession: Allowed but out-of-state medical cannabis patients can only buy medical cannabis within Michigan if their home state offers reciprocity with Michigan.

Personal Growing

Adults age 21 and over may grow up to 12 cannabis plants within their residences under certain limitations and following specific security requirements.

Medical Cannabis Patient Qualification and Registry

Patients are required to register for a Patient Registry Card. They must have a qualifying condition and receive a medical marijuana recommendation from the treating doctor. In addition, patients may designate one caregiver over the age of 21. Caregivers may only work with five patients.

Qualifying medical conditions include:

  • Alzheimer’s disease
  • Amyotrophic Lateral Sclerosis
  • Arthritis
  • Autism
  • Cachexia or wasting syndrome
  • Cancer
  • Cerebral palsy
  • Colitis
  • Chronic pain
  • Crohn’s disease
  • Glaucoma
  • HIV or AIDS
  • Inflammatory Bowel Disease
  • Hepatitis C
  • Nail patella
  • Nausea
  • Obsessive compulsive disorder (OCD)
  • Parkinson’s
  • Post-traumatic stress disorder (PTSD)
  • Rheumatoid arthritis
  • Seizures
  • Severe and persistent muscle spasms
  • Spinal cord injury
  • Tourette’s syndrome
  • Ulcerative colitis

Business Laws

Vertical integration or “license stacking” is allowed, which means a company can hold multiple licenses across the Michigan supply chain (e.g., both cultivation and dispensary licenses), but there are some limitations. For example, if an applicant controls a microbusiness license, they may not also control a grower, processor, or retailer license. Furthermore, no entity can hold more than five grower licenses of any type at the same time, but this rule could be lifted after January 1, 2023.

Businesses may operate medical and adult-use cannabis facilities in the same location. There is no state limit to the number of licenses issued, but local municipalities can limit the type and number of licenses within their boundaries. Residency is required to apply for some cannabis business licenses in Michigan. In addition, a social equity program is in place to benefit license applicants from communities that have been disproportionately impacted by marijuana prohibition.

Home deliver is allowed in Michigan. Furthermore, business licenses must be renewed annually (except temporary event licenses). Renewal fees for all licenses except Event Organizer and Designated Consumption Establishment have a three-tiered renewal fee based on the grow weight of products transferred by the license holder in the previous year.  These fees range from $3,000 to $50,000 depending on the business type. The renewal fee for Event Organizer and Designated Consumption Establishment licensees is $1,000.

License Types

  1. Cultivator Licenses
  2. Processor Licenses
  3. Retailer Licenses
  4. Microbusiness Licenses
  5. Secure Transporter Licenses
  6. Safety Compliance Facility Licenses
  7. Marijuana Event Organizer Licenses
  8. Temporary Marijuana Event Licenses
  9. Designated Consumption Establishment Licenses

License Fees

Cultivator: $6,000 application fee and $4,000 license fee for a Class A Grower license to grow up to up to 100 plants; $8,000 license fee for a Class B Grower license to grow up to 500 plants; $40,000 license fee for a Class C Grower license to grow up to 2,000 plants; $40,000 license fee for an Excess Grower license for a business that holds five stacked Class C Grower licenses under the adult-use program and two or more Class C Grower licenses under the medical cannabis statue.

Processor: $6,000 application fee and $40,000 license fee

Retailer: $6,000 application fee and $25,000 license fee

Microbusiness: $6,000 application fee and $8,000 license fee

Secure Transporter: $6,000 application fee and $25,000 licensing fee

Safety Compliance Facility: $6,000 application fee and $25,000 licensing fee

Marijuana Event Organizer: $1,000 licensing fee

Temporary Marijuana Event: $500 per day of the event if there will be no sales at the event; $500 per day of the event plus $500 per licensed retailer/microbusiness participating if there will be sales at the event

Designated Consumption Establishment: $1,000 license fee

License Timeline

Michigan began accepting applications for business licenses under the state’s adult-use cannabis program on November 1, 2019. For 24 months after the state begins accepting applications, the department may only accept applications for Class A Grower and Microbusiness licenses from Michigan residents. In addition, for 24 months after the state begins accepting applications, the department may only accept applications for Retailer, Processor, Class B Grower, Class C Grower, or Secure Transporter licenses from individuals who already hold a state license through the medical cannabis program.

Testing

Testing by licensed Safety Compliance Facilities is required of all cannabis sold in Michigan.

Training

Michigan does not require specific training for cannabis license holders or employees.

Learn More about Cannabis in Michigan and How to Work or Start a Business in the Michigan Cannabis Industry

Leafy Green Agency offers a variety of certification seminars for people who want to start businesses, find jobs, get promotions, or invest in the cannabis industry in Michigan and across the country. Follow the link to register for an upcoming seminar.

Sources and More Information

Data current as of 11/14/19.