DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
MARIJUANA REGULATORY AGENCY
MARIHUANA LICENSES
Filed with the secretary of state on
These rules take
effect immediately upon filing with the secretary of state unless adopted under
section 33, 44, or 45a(6)(9) of the administrative procedures act
of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under
these sections become effective 7 days after filing with the secretary of
state.
(By authority conferred on the executive director of the marijuana regulatory agency by section 206 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27206, sections 7 and 8 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957 and 333.27958, and Executive Reorganization Order No. 2019-2, MCL 333.27001)
R 420.1, R 420.3, R 420.4, R 420.5, R 420.6, R 420.7, R 420.8, R 420.10, R 420.12, R 420.13, R 420.14, R 420.18, R 420.19, R 420.20, R 420.21, R 420.23, R 420.25, R 420.26, R 420.27, and R 420.28 of the Michigan Administrative Code are amended, R 420.11a, R 420.27a, and R 420.27b are added, and R 420.9 is rescinded, as follows:
R 420.1 Definitions.
Rule 1. (1) As used in these rules:
(a) “Acts” refers to the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, when applicable.
(b) “Agency” means the marijuana regulatory agency.
(c) "Applicant" means a person who applies for a marihuana license, subject to paragraphs (i) and (ii) of this subdivision:
(i) For purposes of this definition, an applicant includes a managerial employee of the applicant, a person holding a direct or indirect ownership interest of more than 10% in the applicant, and the following for each type of applicant:
(A) For an individual or sole proprietorship: the proprietor and spouse.
(B) For a partnership and limited liability partnership: all partners and their spouses.
(C) For a limited partnership and limited liability limited partnership: all general and limited partners, not including a limited partner holding a direct or indirect ownership interest of 10% or less who does not exercise control over or participate in the management of the partnership, and their spouses.
(D) For a limited liability company: all members and managers, not including a member holding a direct or indirect ownership interest of 10% or less who does not exercise control over or participate in the management of the company, and their spouses.
(E) For a privately held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, all stockholders, not including those holding a direct or indirect ownership interest of 10% or less, and their spouses.
(F) For a publicly held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, all stockholders, not including those holding a direct or indirect ownership interest of 10% or less, and their spouses.
(G) For a multilevel ownership enterprise: any entity or person that receives or has the right to receive more than 10% of the gross or net profit from the enterprise during any full or partial calendar or fiscal year.
(H) For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or the bylaws and their spouses.
(I) For a trust,:
trustees, any individual or body able to control and direct the affairs of
the trust, and any beneficiary who receives or has the right to receive
more than 10% of the gross or net profit of the trust during any full or
partial calendar or fiscal year and their spouses.
(ii) For purposes of this definition, an applicant does not include:
(A) A person who provides financing to an applicant or licensee under a bona fide financing agreement at a reasonable interest rate unless the person exercises control over or participates in the management of the marihuana business.
(B) A franchisor who grants a franchise to an applicant, if the franchisor does not have the right to receive royalties based upon the sale of marihuana or marihuana-infused products by the applicant who is a franchisee. Nothing in this subrule shall be construed to preclude a franchisor from charging an applicant who is a franchisee a fixed fee. As used in this definition, the terms “franchise,” “franchisor,” and “franchisee” have the meanings set forth in section 2 of the franchise investment law, 1974 PA 269, MCL 445.1502.
(C) A person receiving reasonable payment for rent on a fixed basis under a bona fide lease or rental obligation unless the person exercises control over or participates in the management of the marihuana business.
(D) A person receiving reasonable payment under a licensing agreement or contract approved by the agency concerning the licensing of intellectual property including, but not limited to, brands and recipes.
(E) A person who receives a percentage of profits as an employee if the employee does not meet the definition of “managerial employee” and the employee does not receive more than 10% of the gross or net profit from the licensee during any full or partial calendar or fiscal year.
(F) A person who receives a bonus as an employee if the employee is on a fixed wage or salary and the bonus is not more than 25% of the employee’s pre-bonus annual compensation or if the bonus is based upon a written incentive/bonus program that is not out of the ordinary for the services rendered.
(d) “Building” means a combination of materials forming a structure affording facility, establishment, or shelter for use or occupancy by individuals or property. Building includes a part or parts of the building and all equipment in the building. A building does not include a building incidental to the use for agricultural purposes of the land on which the building is located.
(e) “Bureau of fire services” or “BFS” means the bureau of fire services in the department of licensing and regulatory affairs.
(f) “Common ownership” means 2
or more state licenses or 2 or more equivalent licenses held by one person under
the Michigan rRegulation and tTaxation of mMarihuana
aAct.
(g) “Complete application”
means an application that includes all of the information required in R 420.2 through
to R 420.5 and R 420.7 through to R 420.110.
(h) “Department” means the department of licensing and regulatory affairs.
(i) “Designated consumption
establishment” means a commercial space that is licensed by the agency and
authorized to permit adults 21 years of age and older to consume marihuana
products at the location indicated on the state license issued under the
Michigan rRegulation and tTaxation of mMarihuana
aAct.
(j) “Director” means the director of the department of licensing and regulatory affairs or his or her designee.
(k) “Employee” means a person performing work or service for compensation. “Employee” does not include individuals providing trade or professional services who are not normally engaged in the operation of a marihuana business.
(l) “Equivalent licenses” means any of the following held by a person:
(i) A marihuana grower
license of any class issued under the Michigan rRegulation and tTaxation
of mMarihuana aAct and a grower license, of any
class, issued under the medical marihuana facilities licensing act.
(ii) A marihuana processor
license issued under the Michigan rRegulation and tTaxation
of mMarihuana aAct and a processor license issued
under the medical marihuana facilities licensing act.
(iii) A marihuana retailer
license issued under the Michigan rRegulation and tTaxation
of mMarihuana aAct and a provisioning center
license issued under the medical marihuana facilities licensing act.
(iv) A marihuana secure
transporter license issued under the Michigan rRegulation and tTaxation
of mMarihuana aAct and a secure transporter license
issued under the medical marihuana facilities licensing act.
(v) A marihuana safety
compliance facility license issued under the Michigan rRegulation
and tTaxation of mMarihuana aAct and
a safety compliance facility license issued under the medical marihuana
facilities licensing act.
(m) “Excess marihuana grower” means a license issued to a person holding 5 class C marihuana grower licenses and licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.
(n) “Immature plant” means a nonflowering marihuana plant that is no taller than 8 inches from the growing or cultivating medium and no wider than 8 inches produced from a cutting, clipping, tissue culture, or seedling that is in a growing or cultivating medium or in a growing or cultivating container.
(o) “Limited access area” means a building, room, or other contiguous area of a marihuana business where marihuana is grown, cultivated, stored, weighed, packaged, sold, or processed for sale and that is under the control of the licensee.
(op)
“Managerial employee” means those employees who have the ability to control and
direct the affairs of the marihuana business or have the ability to make policy
concerning the marihuana business, or both.
(pq) “Marihuana
business” means a marihuana facility under the medical marihuana facilities
licensing act, or a marihuana establishment under the Michigan rRegulation
and tTaxation of mMarihuana aAct, or
both.
(qr) “Marihuana
business location plan” means a marihuana facility plan under the medical
marihuana facilities licensing act, or a marihuana establishment plan under the
Michigan rRegulation and tTaxation of mMarihuana
aAct, or both.
(rs) “Marihuana
establishment” means a location at which a licensee is licensed to operate
a marihuana grower, marihuana safety compliance facility, marihuana processor,
marihuana microbusiness, marihuana retailer, marihuana secure transporter, or
any other type of marihuana-related business licensed to operate by the
agency under the Michigan rRegulation and tTaxation
of mMarihuana aAct.
(st) “Marihuana
event organizer” means a person licensed to apply for a temporary marihuana
event license under these rules.
(tu) “Marihuana
facility” means a location at which a licensee is licensed to operate under the
medical marihuana facilities licensing act.
(uv) “Marihuana
license” means a state operating license issued under the medical marihuana
facilities licensing act, or a state license issued under the Michigan rRegulation
and tTaxation of mMarihuana aAct, or
both.
(vw) “Marihuana
product” means marihuana or a marihuana-infused product, or both, as those
terms are defined in the acts unless otherwise provided for in these rules.
(wx) “Marihuana
tracking act” means the marihuana tracking act, 2016 PA 282, MCL 333.27901 to
333.27904.
(xy) “Marihuana
transporter” means a secure transporter under the medical marihuana facilities
licensing act or a marihuana secure transporter under the Michigan rRegulation
and tTaxation of mMarihuana aAct, or
both.
(yz) “Medical
marihuana facilities licensing act” or “MMFLA” means the medical marihuana
facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.
(zaa) “Michigan
mMedical mMarihuana aAct” means the
Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430.
(aabb)
“Michigan rRegulation and tTaxation of mMarihuana
aAct” or “MRTMA” means the Michigan Regulation and Taxation of
Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.
(bbcc)
“Proposed marihuana business” means a proposed marihuana establishment under
the Michigan rRegulation and tTaxation of mMarihuana
aAct or a proposed marihuana facility under the medical marihuana
facilities licensing act, or both.
(dd) “Restricted access area” means a designated and secure area at a marihuana business where marihuana products are sold, possessed for sale, or displayed for sale.
(ccee) “These
rules” means the administrative rules promulgated by the agency under the authority
of the medical marihuana facilities licensing act, the marihuana tracking act,
the Michigan rRegulation and tTaxation of mMarihuana
aAct, and Executive Reorganization Order No. 2019-2, MCL
333.27001.
(ddff) “Same
location” means separate marihuana licenses that are issued to multiple
marihuana businesses that are authorized to operate at a single property but
with separate business suites, partitions, or addresses.
(eegg) “Special
license” means a state license as described under section 8 of the Michigan rRegulation
and tTaxation of mMarihuana aAct, MCL
333.27958, and issued pursuant to section 9 of that act, MCL 333.27959.
(ffhh) “Stacked
license” means more than 1 marihuana license issued to a single licensee to
operate as a class C grower as specified in each license at a marihuana
business under the medical marihuana facilities licensing act, or under the
Michigan rRegulation and tTaxation of mMarihuana
aAct, or both.
(ggii) “Tag” or
“RFID tag” means the unique identification number or Radio Frequency
Identification (RFID) issued to a licensee by the agency statewide
monitoring system for tracking, identifying, and verifying marihuana
plants, marihuana products, and packages of marihuana product in the statewide
monitoring system.
(hhjj) “Temporary
marihuana event license” means a state license held by a marihuana event
organizer under the Michigan regulation and taxation of marihuana act, for an
event where the onsite sale or consumption of marihuana products, or both, are
authorized at the location indicated on the state license.
(2) Terms defined in the acts have the same meanings when used in these rules unless otherwise indicated.
R 420.3 Application procedure; requirements.
Rule 3. (1) A person shall apply for a marihuana license
on the form created by the agency and pay a accompanied by the nonrefundable
application fee at the time the application is submitted. as
prescribed in these rules. The applicant shall answer each Each
question on the application must be answered by the applicant, under
oath, in its entirety. and aAll attestations,
disclosures, and information requested and required by the agency, the acts,
and these rules must be submitted in the application. Failure to comply with
these rules and the application requirements in the acts is grounds for denial
of the application.
(2) A person may submit a partial application under these rules on the condition that it is to prequalify to complete the remaining application requirements. This application has a pending status until all application requirements in these rules are completed, or the agency denies the partial or complete application. The agency shall not issue a marihuana license at this stage of the application process. The finding of prequalification status for a pending application is valid for 2 years after the agency issues a notice of prequalification status. After 2 years has expired, the applicant may be required to submit a new application and pay a new nonrefundable application fee.
(3) A partial application filed to obtain prequalification status may be administratively withdrawn if the application was filed and has been pending for more than 1 year. After a partial application has been administratively withdrawn, the applicant may be required to submit a new application and pay a new nonrefundable application fee.
(34) The agency may request additional
disclosures and documentation to be furnished to the agencyfrom an
applicant. The applicant shall submit the information requested by the
agency within 5 days pursuant to R. 420.5 or the application may be
denied.
(5) The agency may administratively withdraw an application for a marihuana license that was submitted and has been pending for more than 1 year. After an application has been administratively withdrawn, the applicant may be required to submit a new application.
(6) The agency may administratively withdraw an amendment to any application or marihuana license if the applicant or licensee fails to respond or submit documentation to cure all deficiencies within 30 days after notice of the deficiency.
R 420.4 Application requirements; financial and criminal background.
Rule 4. (1) Each applicant shall disclose the identity of any other person who controls, either directly or indirectly, the applicant, including, but not limited to, date of birth, government issued identification, and any other documents required by the agency.
(2) Each applicant shall disclose the financial
information required in the acts and these rules on a form created by the
agency, which may includinge the following:
(a) For an applicant seeking licensure under the medical
marihuana facilities licensing actMMFLA, required information may
includes, but is not limited to, all of the following:
(i) Financial statements regarding all of the following:
(A) A pecuniary interest.
(B) Any deposit of value of the applicant or made directly or indirectly to the applicant, or both.
(C) Financial accounts including, but not limited to,
all of the following: funds, savings, checking, or other accounts including all
applicable account information, such as the name of the financial institution,
names of the account holders, account type, account balances, and a list of all
loans types specified by the agency, amounts, securities, or lender
information.
(ii) Property ownership information, including, but not limited to, deeds, leases, rental agreements, real estate trusts, or purchase agreements.
(iii) Tax information, including, but not limited to, W-2 and 1099 forms, and any other information required by the agency.
(iv) Disclosure by the applicant of the identity of any other person who meets either of the following:
(A) Controls, directly or indirectly, the applicant.
(B) Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.
(v) Each applicant shall disclose all shareholders
holding a direct or indirect interest of greater than 5%, officers, and
directors in the proposed marihuana facility.
(vi) The sources and total amount of the applicant’s
capitalization to operate and maintain the proposed marihuana facility in
compliance with R 420.11.
(vii) A financial statement attested by a
certified public accountant (CPA), on a form created by the agency, including a
foreign-attested CPA statement, or its equivalent if applicable on
capitalization pursuant to R 420.11.
(viii) Information on the financial ability of
the applicant to purchase and maintain adequate liability and casualty
insurance in compliance with R 420.10.
(ixviii) Any other documents, disclosures,
or attestations created or requested by the agency that are not inconsistent
with the acts or these rules.
(b) For an applicant seeking licensure under the Michigan
regulation and taxation of marihuana act MRTMA required
information includes, but is not limited to, all of the following may
be required:
(i) Tax information, including, but not limited to:
(A) W-2 forms for the most recent tax year.
(B) 1099 forms for the most recent tax year.
(ii) Any other information relevant to the application for licensure required by the agency.
(3) Each applicant shall disclose all shareholders
holding a direct or indirect interest of greater than 5%, officers, and
directors in the proposed marihuana establishment. Each applicant shall
disclose the identity of every person having a 2.5% or greater ownership
interest in the applicant with respect to which the license is sought.
(a) If the disclosed entity is a trust, the applicant shall disclose the names and addresses of the beneficiaries.
(b) If the disclosed entity is a privately held corporation, the names and addresses of all shareholders, officers, and directors.
(c) If the disclosed entity is a publicly held corporation, the names and addresses of all shareholders holding a direct or indirect interest of greater than 5%, officers, and directors.
(d) If the disclosed entity is a partnership or limited liability partnership, the names and addresses of all partners.
(e) If the disclosed entity is a limited partnership or limited liability limited partnership, the names of all partners, both general and limited.
(f) If the disclosed entity is a limited liability company, the names and addresses of all members and managers.
(4) Each applicant shall disclose the applicant’s business organizational documents filed with this state, any other state, local county, or foreign entity, if applicable, including proof of registration to do business in this state and certificate of good standing from this state, any other state, or foreign entity, if applicable.
(5) Each applicant shall disclose to the agency criminal and financial background information and regulatory compliance as provided under the acts and these rules on a form created by the agency.
(6) Each applicant shall provide written consent to a criminal and financial background investigation as authorized under the acts and these rules.
(7) Each applicant shall provide an attestation acknowledging that sanctions may be imposed for violations on a licensee while licensed or after the marihuana license has expired, as provided in the acts and these rules.
(8) Each applicant shall provide an attestation affirming a continuing duty to provide information requested by the agency and to cooperate in any investigation, inspection, inquiry, or hearing.
(9) Each applicant shall disclose any noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to fraud, environmental, food safety, tobacco, alcohol, labor, employment, worker’s compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.
(10) Each applicant shall disclose any application or issuance of any commercial license or certificate issued in this state or any other jurisdiction that meets the requirements under the acts and these rules.
(11) Each applicant shall provide any other documents or attestations created by, or make any disclosures requested by, the agency that are not inconsistent with the acts or these rules.
(12) An applicant shall submit in the application any information requested and required by the acts and these rules.
(13) Each applicant seeking licensure under the medical
marihuana facilities licensing actMMFLA must submit one set of
fingerprints to the department of state police in accordance with section 402
of the MMFLA, MCL 333.27402.
(14) Each applicant seeking licensure under the Michigan
regulation and taxation of marihuana act MRTMA shall provide an
attestation acknowledging that the applicant must have a physical structure for
the marihuana establishment and pass the prelicensure inspection within 60 calendar
days of submitting a complete application being submitted to
the agency. Failure to pass the prelicensure inspection within 60 calendar days
of submitting the complete application being submitted to the
agency may result in the application begin denied in accordance with R 420.12.
(15) An applicant shall provide an attestation signed by a representative of the department of treasury and the applicant, verifying that the applicant is not delinquent in the payment of sales, excise, or any other taxes.
(16) An applicant seeking licensure under the Michigan
regulation and taxation of marihuana act MRTMA shall provide a
social equity plan detailing a plan to promote and encourage participation in
the marihuana industry by people from communities that have been
disproportionately impacted by marihuana prohibition and enforcement and to
positively impact those communities.
R. 420.5 Application requirements; complete application.
Rule 5. (1) A complete application for a marihuana license
must include all the information specified in these rules required in
R 420.2 to R 420.4, R 420.7 to R 420.10, and all of the following:
(a) A description of the type of marihuana business that includes all of the following:
(i) An estimate or actual number of employees.
(ii) The projected or actual gross receipts.
(iii) A business plan.
(iiiiv) The proposed location of the
marihuana business.
(iv) A security plan, as required under the acts and these rules.
(b) A copy of the proposed marihuana business location plan as required under R 420.8.
(c) An applicant shall pass the prelicensure
inspection as determined by the agency and as required in R 420.9.
(c) The disclosure of both of the following persons:
(i) For an applicant seeking licensure under the MMFLA, persons that have a beneficial interest as required in section 303(1)(g) of the MMFLA, MCL 333.27303.
(ii) For an applicant seeking licensure under the MRTMA, persons who have a direct or indirect ownership interest in the marihuana establishment.
(d) For an applicant seeking licensure under the MMFLA,
cConfirmation of municipal compliance with any municipal
ordinances the municipality may have adopted under the medical marihuana
facilities licensing act, or the Michigan regulation and taxation of marihuana
act, whichever act is applicable. For purposes of these rules, confirmation of
compliance must be on an attestation form preparedprovided by
the agency that contains includes all of the following:
(i) For an applicant seeking licensure under the
medical marihuana facilities licensing act, wWritten affirmation
that the municipality has adopted an ordinance under section 205 of the MMFLA, MCL
333.27205, including, if applicable, a description of any limitations on
the number of each type of marihuana facility.
(ii) For an applicant seeking licensure under the
Michigan regulation and taxation of marihuana act, verification that the
municipality has not adopted an ordinance prohibiting marihuana establishments.
(iii) For an applicant seeking licensure under
the medical marihuana facilities licensing act, A description
of any regulations within the municipality that apply to the proposed marihuana
business.
(iiiv) The date and signature of the clerk
of the municipality or his or her designee on the attestation form attesting
that the information stated in the document is correct.
(iv) The date and signature of the applicant.
(vi) The name and address of the proposed marihuana
business facility name and address.
(vi) The license type of the proposed marihuana facility.
(vii) Attestation that the applicant will report any
changes that occur with municipal ordinances or zoning regulations that
relate to the proposed marihuana facility, any municipal facility approvals, or
any violations of a municipal or zoning regulation. approvals, the
municipal ordinance, or any violations of a municipal or zoning ordinance will
be reported to the agency.
(e) For an applicant seeking licensure under the MRTMA, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:
(i) The name and address of the proposed marihuana establishment.
(ii) The license type or the proposed marihuana establishment.
(iii) The municipality where the proposed marihuana establishment is located.
(iv) The contact information for the municipality including the following at a minimum:
(A) The name of the clerk of the municipality or his or her designee.
(B) The telephone number of the clerk of the municipality or his or her designee.
(C) The email address of the clerk of the municipality or his or her designee.
(D) The mailing address of the clerk of the municipality or his or her designee.
(v) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana establishment.
(vi) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.
(vii) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana establishment, any municipal establishment approvals, or any violations of a municipal or zoning regulation.
(viii) The date and signature of the applicant.
(e) The disclosure of the following persons:
(i) For an applicant seeking licensure under the
medical marihuana facilities licensing act, persons that have a beneficial
interest as required in section 303(1)(g) of the MMFLA, MCL 333.27303.
(ii) For an applicant seeking licensure under the
Michigan regulation and taxation of marihuana act, persons who have a direct or
indirect ownership interest in the marihuana establishment.
(2) Each applicant shall provide any additional information and documents requested by the agency not inconsistent with the acts and these rules.
(3) Each applicant shall provide any other documents, disclosures, or attestations created or requested by the agency that are not inconsistent with the acts and these rules.
(4) If the agency identifies a deficiency in an application, the agency shall notify the applicant and the applicant shall submit the missing information or proof that the deficiency has been corrected to the agency within 5 days of the date the applicant received the deficiency notice.
(5) The failure of an applicant to correct a deficiency within 5 days of notification by the agency may result in the denial of the application. An applicant denied under this subrule is not barred from reapplying by submitting a new application and application fee.
R 420.6 State license under the Michigan regulation and taxation of marihuana act; issuance;
qualifications; ineligibility.
Rule 6. (1) The agency shall not
issue a state license under the Michigan regulation and taxation of
marihuana act MRTMA until a complete application is submitted, the fees
required under these rules are paid, and the agency determines that the
applicant is qualified to receive a state license under the acts and these
rules. to a qualified applicant whose application has been approved for
issuance and who pays the required licensure or excess background investigation
fees within 10 days of the state license being approved for issuance. An
applicant under MRTMA must pay initial licensure fees within 10 calendar days
of approval of the state license or within 90 calendar days of submitting a
complete application, whichever date is first. Failure to pay the fees required
under R 420.7 may result in be grounds for the a denial of
state license.
(2) An applicant is ineligible to receive a state license if any of the following circumstances exist:
(a) The applicant has a prior conviction that involved distribution of a controlled substance to a minor.
(b) The applicant has
knowingly submitted an application for a state license under the Michigan
regulation and taxation act MRTMA that contains false information.
(c) The applicant is an
employee, advisor, or consultant of the agency involved in the implementation,
administration, or enforcement of the Michigan regulation and taxation of
marihuana act MRTMA or these rules pursuant to section 7 of the Michigan
regulation and taxation of marihuana actMRTMA, MCL 333.27957.
(d) The applicant holds an
elective office of a governmental unit of this state, another state, or the
federal government; is a member of or employed by a regulatory body of a governmental
unit in this state, another state, or the federal government;, or
is employed by a governmental unit of this state. This subdivision does not
apply to an elected officer of or employee of a federally recognized Indian
tribe or to an elected precinct delegate. This subdivision does not
apply to any of the following:
(i) An elected officer of or employee of a federally recognized Indian tribe.
(ii) An elected precinct delegate.
(iii) The spouse of a person who applies for a state license unless the spouse’s position creates a conflict of interest or is within any of the following:
(A) The marijuana regulatory agency.
(B) A regulatory body of a governmental unit in this state, another state, or the federal government that makes decisions regarding adult-use marijuana.
(e) The applicant, if an
individual, is not a resident of this state on the date of filing the
application for a class A marihuana grower or for a marihuana microbusiness
license. The requirements in this subdivision do not apply after December 6,
2021.
(f) The applicant does not
hold a state operating license pursuant to the MMFLA and is applying for a
marihuana retailer, marihuana processor, class B marihuana grower, class C
marihuana grower, or a marihuana secure transporter license under the Michigan
regulation and taxation of marihuana act and these rules. The requirements in
this subdivision do not apply after December 6, 2021.
(ge) The agency
determines the municipality in which the applicant’s proposed marihuana
establishment will operate has adopted an ordinance that prohibits marihuana
establishments or that the proposed establishment is noncompliant with an
ordinance adopted by the municipality under consistent with section
6 of the Michigan regulation and taxation of marihuana actMRTMA,
MCL 333.27956.
(hf) The
applicant will hold an ownership interest in both a marihuana safety compliance
facility or in a marihuana secure transporter and in a marihuana grower, a
marihuana processor, a marihuana retailer, or a marihuana microbusiness,
or a class A marihuana microbusiness in violation of section 9 of the Michigan
regulation and taxation of marihuana actMRTMA, MCL 333.27959.
(ig) The
applicant will hold an ownership interest in both a marihuana microbusiness
or a class A marihuana microbusiness and in a marihuana grower, a marihuana
processor, a marihuana retailer, a marihuana safety compliance facility, or a
marihuana secure transporter, in violation of section 9 of the Michigan
regulation and taxation of marihuana actMRTMA, MCL 333.27959.
(jh) The applicant
will hold an ownership interest in more than 5 marihuana growers or in more
than 1 marihuana microbusiness or class A marihuana microbusiness, in violation
of section 9 of the Michigan regulation and taxation of marihuana actMRTMA,
MCL 333.27959.
(ki) The
applicant fails to meet other criteria established in these rules.
(3) In determining whether to grant a state license to an applicant, the agency may also consider all of the following:
(a) Whether the applicant or anyone meeting the definition of applicant has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana establishment is unlikely to be operated with honesty and integrity.
(b) Whether the applicant has been served with a complaint or other notice filed with any public body regarding payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.
(c) Whether the applicant has a history of noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to, fraud, environmental, food safety, labor, employment, worker’s compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.
(d) Whether the applicant meets other standards in rules applicable to the state license category.
(4) The agency shall review all
applications for state licenses and shall inform each applicant of the
agency’s decision.
(5) An applicant or licensee has a continuing duty to provide information requested by the agency and to cooperate in any investigation, inquiry, or hearing conducted by the agency.
(6) A marihuana license is a revocable privilege granted by the agency and is not a property right. Granting a marihuana license does not create or vest any right, title, franchise, or other property interest. A licensee or any other person shall not lease, pledge, borrow, or loan money against a marihuana license.
R 420.7 Application; fees; assessment.
Rule 7. (1) At the beginning of
each state fiscal year, the agency may increase the fees collected under the Michigan
regulation and taxation of marihuana actMRTMA by 10% in order to pay
for implementation, administration, and enforcement of that act and these
rules.
(2) An applicant for a marihuana
license shall submit an application that is accompanied by the nonrefundable
application fee of $63,000 upon initial application.
(3) If the costs of the investigation and processing the application exceed the application fee, the applicant shall pay the additional amount.
(4) Additional fees for state licenses under MRTMA are listed in table 1:
TABLE 1
State License Type |
Initial Licensure and Renewal Fees |
|
Class A Marihuana Grower |
|
|
Class B Marihuana Grower |
|
|
Class C Marihuana Grower |
|
|
Designated Consumption Establishment |
$1,000 |
|
Excess Marihuana Grower |
|
|
Marihuana Event Organizer |
$1,000 |
|
Marihuana Microbusiness |
$8, |
|
Class A Marihuana Microbusiness |
$18,600 |
|
Marihuana Processor |
|
|
Marihuana Retailer |
$ |
|
Marihuana Safety Compliance Facility |
$ |
|
Marihuana Secure Transporter |
$ |
|
Temporary Marihuana Event |
See R 420.26 |
|
Marihuana Educational Research |
N/A |
|
(5) The agency shall establish
and publish annually the regulatory assessment for licensees under the medical
marihuana facilities licensing actMMFLA pursuant to section 603 of
the MMFLA, MCL 333.27603.
(6) The renewal fees for
marihuana grower, excess marihuana grower, and marihuana processor licenses are
determined by the gross weight transferred by the licensee. The agency shall
determine whether the gross weight transferred by the licensee is in the top
third, middle third, or bottom third for gross weight transferred in that
fiscal year compared against all other licensees for the license held. The
licensee shall then pay the corresponding fee outlined in subrule (4) of this
rule.
(7) The renewal fees for
marihuana retailers, and marihuana microbusiness licenses, are determined
by the gross retail sales by the licensee. The agency shall determine whether
the gross retail sales made by the licensee is in the top third, licensees for
the license held. The licensee shall then pay the corresponding fee outlined
in subrule (4) of this rule.
(8) The renewal fee for a
marihuana secure transporter license is determined by the net weight
transported by the licensee. The agency shall determine whether the net weight
transported by the licensee is in the top third, middle third, or bottom third
for net weight transported in that fiscal year compared against all other
marihuana secure transporter licensees. The licensee shall then pay the
corresponding fee outlined in subrule (4) of this rule.
(9) The renewal fee for
marihuana safety compliance facilities is determined by the number of tests
completed by the licensee. The agency shall determine whether the number of
tests completed by the licensee is in the top third, middle third, or bottom
third for number of tests completed in that fiscal year compared against all
other marihuana safety compliance facilities. The licensee shall then pay the
corresponding fee outlined in subrule (4) of this rule.
(106) An
applicant shall pay the initial licensure fees or regulatory assessment, if
applicable, on or before the date the licensee begins operating and the renewal
fee annually thereafter, pursuant to these rules.
(117) The agency
shall not issue a marihuana license until a complete application is submitted,
the fees required under these rules are paid, and the agency determines that
the applicant is qualified to receive a marihuana license under the acts and
these rules. An applicant under the MRTMA must pay initial licensure fees within
10 calendar days of approval of the marihuana license or within 90 calendar
days of submitting a complete application being submitted,
whichever date is first. An applicant under the MMFLA must pay initial
licensure fees within 10 calendar days of approval of the marihuana license. An
applicant must pay renewal fees upon submission of the application for renewal.
Failure to pay the required fee may be grounds for the denial of a marihuana license
in accordance with R 420.12.
R 420.8 Marihuana business location plan.
Rule 8. (1) An applicant shall submit a marihuana business location plan for the proposed marihuana business as required in these rules and upon request by the agency. Upon the request of the agency, an applicant or licensee may be required to submit a revised marihuana business location plan.
(2) The marihuana business
location plan must include, but is not limited to,at a minimum, all
of the following:
(a) The type of proposed marihuana business, the location of the marihuana business, a description of the municipality where the marihuana business will be located, and any of the following, if applicable:
(i) A statement in the
marihuana business location plan that a combination of marihuana licenses
will operate as separate marihuana businesses at the same location, as provided
under these rules.
(ii) A statement in the marihuana business location plan that the applicant has or intends to apply to stack a marihuana license at the proposed marihuana business as provided under these rules.
(iii) A marihuana business
location plan submitted for For an applicant seeking licensure under
the Michigan regulation and taxation of marihuana actMRTMA, and
these rules must include a statement in the marihuana business location
plan that equivalent licenses will operate at the same location.
(b) A diagram of the marihuana
business including, but not limited to, that includes, at a minimum, all
of the following:
(i) The proposed marihuana business’s size and dimensions.
(ii) Specifications of the marihuana business.
(iii) Physical address.
(iv) Location of common
entryways, doorways, or and passageways.
(v) Public entries and exits.
(vi) Limited access areas and
restricted access areas within the marihuana business.
(vii) An indication of the distinct areas or structures for separate marihuana businesses at the same location as provided in these rules.
(viii) Areas designated for contactless and limited contact transactions, if the marihuana business is a marihuana sales location.
(c) A detailed floor plan and layout that includes, at a minimum, all of the following:
(i) Dimensions of the marihuana business including interior and exterior rooms.
(ii) Maximum storage capabilities.
(iii) Number of rooms.
(iv) Dividing structures.
(v) Fire walls.
(vi) Entrances and exits.
(vii) Locations of hazardous material storage.
(viii) Quantities of hazardous materials, such as chemical, flammable/combustible liquids and gases, and the expected daily consumption of the hazardous materials.
(d) Means of egress, including, but not limited to, delivery and transfer points.
(e) Construction details for structures and fire-rated construction for required walls.
(f) Building structure information, including, but not limited to, new, pre-existing, freestanding, or fixed.
(g) Building type information, including, but not limited to, commercial, warehouse, industrial, retail, converted property, house, mercantile building, pole barn, greenhouse, laboratory, or center.
(h) Zoning classification and zoning information.
(i) If the proposed marihuana business is in a location that contains multiple tenants and any applicable occupancy restrictions.
(j) A proposed security plan that demonstrates the proposed marihuana business meets the security requirements specified in these rules.
(k) Any other information required by the agency if not inconsistent with the acts and these rules.
(3) Any changes or modifications to the marihuana business location plan under this rule must be reported to the agency and may require preapproval by the agency.
(4) The agency may provide a copy of the marihuana business location plan to the BFS, local fire department, Michigan state police, local law enforcement, and building officials for use in review and planning.
(5) The agency may reinspect the marihuana business to verify the plan at any time during the business’s hours of operation and may require that the plan be resubmitted upon renewal.
R 420.9 Prelicensure
investigation; proposed marihuana establishment inspection. Rescinded.
Rule 9. (1) An applicant for
a marihuana license shall submit to a prelicensure physical inspection of a
proposed marihuana business, as determined by the agency.
(2) The agency shall
establish an inspection process to confirm that the applicants and proposed
marihuana businesses meet the requirements of the acts and these rules.
(3) The agency shall
investigate an applicant in accordance with the acts and these rules.
(4) The agency, through its
investigators, agents, auditors, or the state police shall conduct inspections
and examinations of an applicant and a proposed marihuana business in
accordance with the acts and these rules.
(5) An applicant shall
submit proof to the agency of both of the following:
(a) A certificate of use
and occupancy as required pursuant to section 13 of the Stille-DeRossett-Hale
single state construction code act, 1972 PA 230, MCL 125.1513, and these rules.
If this certificate is not available, the agency may accept alternative
documentation from the building authority.
(b) If applicable, a fire
safety inspection as specified in these rules.
R 420.10 Proof of financial responsibility; insurance.
Rule 10. (1) Before a marihuana license is issued or renewed, the licensee or renewal applicant shall file a proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused products on the form prescribed by the agency, for an amount not less than $100,000.00. If the proof required in this subrule is a bond, the bond must be in a format acceptable to the agency.
(2) In addition to the requirements in subrule (1) of this rule, a marihuana transporter shall show proof of auto insurance, vehicle registration, and registration as a commercial motor vehicle, as applicable, for any vehicles used to transport marihuana product as required by the acts and these rules.
(3) For an applicant seeking
licensure for a marihuana event organizer license under the Michigan
regulation and taxation of marihuana actMRTMA, proof of financial
responsibility for liability for bodily injury is not required for a
marihuana event organizer license. A marihuana event organizer licensee
shall file a proof of financial responsibility for liability for bodily
injury when applying for a temporary marihuana event license or proof that each
marihuana microbusiness, class A marihuana microbusiness, and marihuana
retailer participating in the temporary marihuana event has coverage for
liability for bodily injury when applying for a temporary marihuana event
license.
(4) In addition to the proof
of financial responsibility requirements contained in subrule (1) of this rule,
a renewal applicant or licensee holding a license under the medical
marihuana facilities licensing act MMFLA shall also carry commercial
general liability insurance covering premises liability for an amount not less
than $100,000.00. An applicant shall provide proof of commercial general
liability insurance covering the premises liability to the agency no later than
60 days after a state operating license is issued or renewed.
R 420.11a Prelicensure investigation; proposed marihuana business inspection.
Rule 11a. (1) An applicant for a marihuana license shall submit to and pass a prelicensure physical inspection of a proposed marihuana business, prior to licensure, as determined by the agency.
(2) The agency shall establish an inspection process to confirm that the applicants and proposed marihuana businesses meet the requirements of the acts and these rules.
(3) The agency shall investigate an applicant pursuant to the acts and these rules.
(4) The agency, through its investigators, agents, auditors, or the state police shall conduct inspections and examinations of an applicant and a proposed marihuana business pursuant to the acts and these rules.
(5) An applicant shall submit to the agency proof of both of the following:
(a) A certificate of use and occupancy as required pursuant to section 13 of the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1513, and these rules. If this certificate is not available, the agency may accept alternative documentation from the building authority. The requirement of this subrule is not applicable to temporary marihuana event applicants.
(b) If applicable, a fire safety inspection as specified in these rules.
R 420.12 Denial of a marihuana license; additional reasons.
Rule 12. (1) The agency may deny a license if If an
applicant fails to comply with the applicable act or these rules, a
marihuana license may be denied by the agency as provided under the applicable act
and these rules.
(2) In addition to the reasons for denial in the acts, the
agency may deny a marihuana license may be denied by the agency for
the following reasons:
(a) The applicant’s marihuana business location plan does not fully comply with the acts or these rules.
(b) The applicant’s proposed marihuana business or marihuana business is substantially different from the marihuana business location plan pursuant to R 420.8 and these rules.
(c) The agency is unable to access the proposed marihuana business for prelicensure agency inspection or the applicant denied the agency access to the proposed marihuana business.
(d) The applicant made a material misrepresentation on the application.
(e) The applicant failed to correct a deficiency within 5 days of notification by the agency in accordance with the acts and these rules.
(f) The applicant failed to satisfy the provide
confirmation of municipal compliance y a municipality in accordance
with the acts and these rules as required under R 420.5(1)(d) or (e).
(g) The applicant’s proposed marihuana establishment is in a municipality that has adopted an ordinance prohibiting marihuana establishments or the proposed marihuana establishment does not comply with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.
(gh) The applicant is operating or was
operating a proposed marihuana business without a marihuana license.
(hi) The applicant has knowingly submitted
an application containing false information.
(ij) The applicant has failed to pay
required fees pursuant to these rules.
(jk) The applicant has failed to comply
with these rules and the application requirements pursuant to these rules.
(kl) The applicant has been delinquent with
the payment of taxes required under federal, state, or local law for 1 or more
years.
(lm) The applicant fails to provide
notifications or reports to the agency pursuant to these rules.
(mn) The applicant or anyone meeting the
definition of applicant has a pattern of convictions involving dishonesty,
theft, or fraud that indicate the proposed marihuana business is unlikely to be
operated with honesty and integrity.
(no) For an applicant seeking licensure
under the Michigan regulation and taxation of marihuana actMRTMA,
the applicant failed to receive a passing a prelicensure
inspection within 60 days of submitting a complete application being
submitted to the agency.
(op) For an applicant seeking licensure
under the Michigan regulation and taxation of marihuana actMRTMA,
the applicant or anyone meeting the definition of applicant has a conviction
involving distribution of a controlled substance to a minor pursuant to section
8 of the MRTMA, MCL 333.27958.
(pq) For an applicant seeking licensure
under the Michigan regulation and taxation of marihuana actMRTMA,
the applicant holds a state operating license under the MMFLA and has failed to
file or is delinquent in the payment of the sales tax required under the gGeneral
sSales tTax aAct, 1933 PA 167, MCL
205.51 to 205.78, or the excise tax required under section 601 of the MMFLA,
MCL 333.27601.
(qr) For an applicant seeking licensure
under the Michigan regulation and taxation of marihuana actMRTMA,
the applicant holds a state license and has failed to file or is delinquent in
the payment of the sales tax required under the gGeneral sSales
tTax aAct, 1933 PA 167, MCL 205.51 to 205.78, or
the excise tax required under section 13 of the MRTMA, MCL 333.27963.
(s) The applicant failed to pass the prelicensure inspection required under R 420.11a.
(t) The applicant or licensee has filed an amendment to the application for a marihuana license seeking to add an individual or entity to the application or license that is not eligible or suitable for licensure, or the amendment is not eligible for licensure as it fails to comply with the acts and these rules.
(u) The applicant or licensee was previously required to file an annual financial statement under the MMFLA and these rules and failed to file the annual financial statement.
R 420.13 Renewal of marihuana license.
Rule 13. (1) A marihuana license is issued for a 1-year
period and is renewable annually. A licensee shall apply to renew a marihuana
license on a form established by the agency. The licensee shall pay the
required fee upon submission of the application for renewal. The marihuana
license may be renewed no more than 90 calendar days before the
expiration of the marihuana license, if the licensee has submitted the renewal
form required by the agency and, if applicable, the licensee has paid any
additional background investigation charge assessed by the agency under these
rules. The agency applicant shall include on the renewal form, a
statement requesting renewal of the marihuana license and all of the following information:
(a) To the extent that information has changed or not been previously reported, updated
personal, business, and financial information, as the agency
may require, related to the eligibility of the licensee to continue to hold the
marihuana license for which renewal is requested under the acts and these
rules. For a licensee seeking renewal under the medical marihuana
facilities licensing act MMFLA, required information may also be
related to the suitability and general fitness of the licensee and include,
without limitation, information regarding the identification, integrity, moral
character, reputation, relevant business experience, ability, probity, and
financial experience, ability, and responsibility business probity;
financial ability and experience; and responsibility or means to operate or
maintain a marihuana facility of the licensee and each person required to
be qualified for renewal of the license under the MMFLA. To the extent that
the information has changed or has not been previously reported, updated
information on the marihuana business is required.
(b) A statement under oath by the licensee that the information provided in the licensee’s
annual renewal form is current, complete, true, and accurate, and that the licensee has fulfilled its obligation under the acts and these rules to notify the agency of any change in information provided in its original marihuana license application and subsequent annual renewal form or forms previously filed, if applicable.
(c) For an applicant seeking renewal of a license under
the MMFLA, confirmation of municipal compliance on an attestation form provided
by the agency that includes all of the following Aattestation
by the municipality on a form created by the agency
regarding a licensee who submits an application for marihuana license renewal
which shall include, but not be limited to, both of the following:
(i) A description of any violation, if applicable,
of an ordinance or a zoning regulation adopted pursuant to section 205 of the medical
marihuana facilities licensing actMMFLA, MCL 333.27205, or section
6 of the Michigan regulation and taxation of marihuana act, MCL 333.27956, committed
by the licensee, but only if the violation relates to activities licensed under
the acts or these rules.
(ii) Whether there has been a change to an ordinance or
a zoning regulation adopted pursuant to section 205 of the medical marihuana
facilities licensing actMMFLA, MCL 333.27205, or section 6 of the
Michigan regulation and taxation of marihuana act, MCL 333.27956, since the
marihuana license was issued to the licensee and a description of the change.
(iii) The date and signature of the clerk of the municipality or his or her designee.
(iv) The date and signature of the applicant.
(v) The name and address of the marihuana facility.
(vi) The license type of the marihuana facility.
(d) For an applicant seeking renewal of a license under the MRTMA, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:
(i) A description of any violation, if applicable, of an ordinance or a zoning regulation consistent with section 6 of the MRTMA, MCL 333.27956, committed by the licensee, but only if the violation relates to activities licensed under the act or these rules.
(ii) Whether there has been a change to an ordinance or a zoning regulation consistent with section 6 of the MRTMA, MCL 333.27956, since the marihuana license was issued to the licensee and a description of the change.
(iii) The following information for the municipality where the marihuana establishment is located, including, at a minimum, all of the following:
(A) The name and address of the marihuana establishment.
(B) The license type of the marihuana establishment.
(C) The municipality where the marihuana establishment is located.
(D) The contact information for the municipality, including, at a minimum, all of the following:
(I) The name of the clerk of the municipality or his or her designee.
(II) The telephone number of the clerk of the municipality or his or her designee.
(III) The email address of the clerk of the municipality or his or her designee.
(IV) The mailing address of the clerk of the municipality or his or her designee.
(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana establishment.
(v) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.
(vi) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the marihuana establishment, any municipal establishment approvals, or any violations of a municipal or zoning regulation.
(vii) The date and signature of the applicant.
(de) An attestation by the licensee that
the licensee’s annual renewal form provides all information and documentation
required by the agency to establish that the licensee is eligible, qualified,
and suitable to have its marihuana license renewed and is ready and able to
continue conducting its marihuana business in compliance with the acts and
these rules throughout the new 1-year time period for which the license is to
be renewed.
(ef) Other relevant information and
documentation that the agency may require to determine the licensee’s
eligibility to have its marihuana license renewed under the licensing standards
of the acts and these rules.
(2) Failure to comply with any of the provisions of the acts and these rules may result in the nonrenewal of a marihuana license. The agency shall not renew a marihuana license unless the agency determines, as part of the license renewal, that each person required by the acts and these rules to meet licensing standards is eligible, qualified, and suitable under the relevant licensing standards.
(3) The licensee shall meet the requirements of the acts and any other renewal requirements set forth in these rules.
(4) The agency may refuse to renew a marihuana license and
issue a notice of nonrenewal if the licensee fails to apply for renewal in
accordance with section 402 of the medical marihuana facilities licensing
actMMFLA, MCL 333.27402, as applicable, and this rule. In addition,
the agency may refuse to renew a marihuana license and issue a notice of
nonrenewal if the agency determines, after reviewing the licensee’s annual
renewal form, that the marihuana license should not be renewed because the
licensee’s annual renewal form does not provide the information and
documentation required by the agency to determine that the licensee is
eligible, qualified, and suitable to continue to be licensed and ready and able
to continue conducting its marihuana business in compliance with the acts and
these rules.
(5) The agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the licensee has failed to submit an annual financial statement required under the acts and these rules for the marihuana license it is renewing or for a previously held marihuana license.
(56) If a license renewal application for a
license under the medical marihuana facilities licensing act MMFLA is
not submitted by the license expiration date, the license may be renewed within
60 days after its expiration date upon submission of the required application,
payment of the required fees, and satisfaction of any renewal requirements.
The licensee may continue to operate during the 60 calendar days after
the license expiration date if the licensee submits the renewal application to
the agency and complies with the other requirements for renewal.
(67) The agency shall send a renewal notice
to the last known address of a licensee on file with the agency. The failure of
a licensee to notify the agency of a change of address does not extend the
expiration date of a license and may result in disciplinary action.
(78) A marihuana licensee who is served with
a notice of nonrenewal may request a hearing pursuant to these rules.
(89) If the licensee does not request a
hearing in writing within 21 calendar days after service of the notice
of nonrenewal, the notice of nonrenewal becomes the final order of the agency.
(910) A person who has not applied for
marihuana license renewal for any and all licenses that are due for renewal
shall cease and desist operation and is subject to any sanctions or fines, or
both, in accordance with pursuant to the acts and these rules.
R 420.14 Notification and reporting.
Rule 14. (1) Applicants have a continuing duty to provide the agency with up-to-date contact information and shall notify the agency in writing of any changes to the mailing addresses, phone numbers, electronic mail addresses, and other contact information they provide the agency.
(2) Applicants shall report to the agency any changes to the marihuana business operations that are required in the acts and these rules, as applicable.
(3) Applicants shall report to the agency any proposed
material changes to the marihuana business before making a material change that
may require prior authorization by the agency. Material changes include, but
are not limited toat a minimum, the following:
(a) Change in owners, officers, members, or managers.
(b) Change of processing machinery or equipment.
(c) A description of a violation of an ordinance or a
zoning regulation adopted pursuant to section 205 of the medical marihuana facilities
licensing act, MCL 333.27205, or section 6 of the Michigan regulation and
taxation of marihuana act, MCL 333.27956, committed by the licensee, but only
if the violation relates to activities licensed under the acts, the Michigan
medical marihuana act, and these rules.
(dc) The addition or removal of persons
named in the application or disclosed.
(ed) Change in entity name.
(fe) Any attempted transfer, sale, or
conveyance of an interest in a marihuana license.
(gf) Any change or modification to the
marihuana business before or after licensure that was not preinspected,
inspected, or part of the marihuana business location plan or final inspection
including, but not limited to, at a minimum, all of the
following:
(i) Operational or method changes requiring inspection under these rules.
(ii) Additions or reductions in equipment or processes at a marihuana business.
(iii) Increase or decrease in the size or capacity of the marihuana business.
(iv) Alterations of ingress or egress.
(v) Changes that impact security, fire safety, and building safety.
(4) An applicant shall notify the agency within 1 3
business days of becoming aware of or within 1 3
business days of when the applicant should have been aware of any of the
following:
(a) Adverse reactions to a marihuana product sold or
transferred by any licensee.
(ba) Criminal convictions, charges, or
civil judgments against an applicant in this state or any other state, federal,
or foreign jurisdiction.
(cb) Regulatory dDisciplinary
action taken against an applicant by this state or any other state, federal, or
foreign jurisdiction, including any pending action.
(5) The applicant shall notify the agency within 10 calendar days of the initiation or conclusion of any new judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, that involve the applicant.
(6) The applicant shall notify the agency within 10 calendar days of receiving notification of an alleged violation of an ordinance or a zoning regulation adopted pursuant to section 205 of the MMFLA, MCL 333.27205, or section 6 of the MRTMA, MCL 333.27956, committed by the applicant, but only if the violation relates to activities licensed under the acts, the Michigan Medical Marihuana Act, and these rules.
(7) The applicant shall notify the agency and the BFS within 1 business day following the occurrence of an unwanted fire.
(8) The licensee shall notify the agency within 10 business days of the appointment of a court-appointed personal representative, guardian, conservator, receiver, or trustee of the licensee.
(69) Failure to provide notifications or
reports to the agency pursuant to this rule may result in sanctions or fines,
or both.
R 420.18 Changes to licensed marihuana business.
Rule 18. (1) Any change or modification to the marihuana business after licensure is governed by the standards and procedures set forth in these rules and any regulations adopted pursuant to the acts. Any material change or modification to the marihuana business must be approved by the agency before the change or modification is made.
(2) Any change of a location of a marihuana business after licensure requires notification to the agency prior to the change of location, must be approved by the agency, requires a new marihuana license application under these rules, and may include, but is not limited to, all of the following:
(a) Additional application fees.
(b) Additional inspections by the agency or BFS.
(c) Initial licensure fees or regulatory assessment, as applicable, or both.
(3) A licensee shall produce written documentation from
the municipality approving the proposed new marihuana business location, and
confirmation of compliance with any municipal ordinances the municipality
adopted under the acts. For purposes of these rules, confirmation of
compliance must be on an attestation form prepared by the agency that contains
all of the information required in these rules.
R 420.19 Communities disproportionately impacted by marihuana prohibition.
Rule 19. (1) Pursuant to section
8 of the Michigan regulation and taxation of marihuana actMRTMA,
MCL 333.27958, the agency shall establish a plan that promotes and encourages
participation in the marihuana industry by people from communities that have
been disproportionately impacted by marihuana prohibition and enforcement and
to positively impact those communities.
(2) The agency shall publish all
of the following information about the plan which must include,
but not be limited to, all of the following:
(a) The criteria used to select communities that have been disproportionately impacted by marihuana prohibition and enforcement.
(b) Based on the selection criteria, a list of the communities that have been disproportionately impacted by marihuana prohibition and enforcement.
(c) The requirements persons in those communities must meet to utilize services and resources offered through the plan.
(d) The services and resources that are available to those communities and qualifying persons residing in and planning to operate a marihuana establishment in those communities selected in subdivision (b) of this subrule.
(e) Specific goals and objectives for the plan.
(3) The agency shall collect data to measure its progress towards achieving the specific goals and objectives outlined in subrule (2)(e) of this rule.
(4) The agency shall publish a list of services and resources offered through the plan, which must include, but not be limited to, all of the following:
(a) Education and outreach to the communities and potential applicants from the community.
(b) Waiving or reducing The
waiver or reduction of fees for qualified applicants from the communities.
(c) Increased assistance with the application process for applicants from these communities.
(d) Coordinating Coordination
of communities’, applicants’, and licensees’ utilization of resources that
will allow participation in the marihuana industry.
R 420.20 Financial Statements
statements.
Rule 20. (1) Each licensee
under the Michigan regulation and taxation of marihuana act MRTMA shall
transmit to the agency financial statements of the licensee’s total operations.
The financial statements shall be reviewed by a certified public accountant in
a manner and form prescribed by the agency. The certified public accountant must
be licensed in this state under article 7 of the occupational code, 1980 PA
299, MCL 339.720 to 339.736. The compensation for the certified public
accountant shall must be paid directly by the licensee to the
certified public accountant. The agency shall issue an advisory bulletin to
instruct licensees on the time and manner in which to submit the financial
statements. Financial statements must be prepared so they include all
required information for each license held by the licensee.
(2) A marihuana educational research licensee is not required to file an annual financial statement.
R 420.21 Special licenses; eligibility.
Rule 21. (1) A person may apply to the agency for a
special license as described under section 8 of the Michigan regulation and
taxation of marihuana actMRTMA, MCL 333.27958, and issued pursuant
to section 9 of the act, MCL 333.27959, and these rules. A person may apply to
the agency for a special license in any of the following categories:
(a) Designated consumption establishment license. A designated consumption establishment license is valid for 1 year.
(b) Excess marihuana grower license. An excess marihuana grower license is valid for 1 year.
(c) Marihuana event organizer license. A marihuana event organizer license is valid for 1 year.
(d) Temporary marihuana event license. A temporary marihuana event license is valid for a minimum of 1 day and ends on the date specified on the state license.
(e) Marihuana educational research license. A marihuana educational research license is valid for 1 year.
(f) A class A marihuana microbusiness license. A class A marihuana microbusiness license is valid for 1 year.
(2) An applicant shall meet the requirements of the Michigan
regulation and taxation of marihuana act MRTMA and these rules to be
eligible for a special license.
(3) A person that who allows consumption of
marihuana products on the premises of a non-residential location and charges a
fee for entry, sells goods or services while individuals are consuming on the
premises, or requires membership for entry shall acquire a designated
consumption establishment or temporary marihuana event license.
R 420.23 Excess marihuana grower license.
Rule 23. (1) An applicant for an excess marihuana grower license
is subject to and shall meet the requirements of the Michigan regulation and
taxation of marihuana act MRTMA and these rules.
(3) An excess marihuana grower license shall mayonly
be issued only to a person who holds 5 stacked class C marihuana grower
licenses issued by the agency under the Michigan regulation and taxation of
marihuana act MRTMA and at least 2 grower class C licenses issued by
the agency under the MMFLA.
(4) A person may apply for an excess marihuana grower license on the form created by the agency accompanied by the nonrefundable application fee as prescribed in these rules. An application for an excess marihuana grower license must be made under oath on a form provided by the agency and must contain information as prescribed by the agency.
(5) An applicant for an excess marihuana grower license shall pay applicable fees required under these rules.
(6) The agency may determine an applicant is ineligible or
deny an application for the reasons specified in these rules, as applicable.
(7) The agency shall set the total marihuana plant count for an excess marihuana grower license in increments of 2,000 marihuana plants not in excess of the total marihuana plants permitted under grower class C licenses held under the MMFLA.
(8) Payment of the initial licensure fee must be received prior to issuance of the state license. In determining the initial licensure fee for an excess marihuana grower license, the initial licensure fee of a class C marihuana grower license is assessed on the excess marihuana grower license at every 2,000 marihuana plant increment authorized by the state license.
(9) An excess marihuana grower licensee is subject to all requirements
for a marihuana grower as provided for in the Michigan regulation and
taxation of marihuana act MRTMA and these rules, as applicable.
(10) An applicant shall pay the initial licensure fee for
an excess grower license within 10 calendar days of approval or within
90 calendar days of submitting a complete application being
submitted, whichever date is first.
(11) An applicant for an excess grower license is not
required to pay the application fee under these rules. A marihuana
grower’s application for an excess grower license is exempt from the
application fee of $6,000 under these rules.
R 420.25 Temporary marihuana event license; application; operations.
Rule 25. (1) A temporary marihuana event license shall
mayonly be issued only to a person who holds a marihuana
event organizer license issued by the agency.
(2) Violations of the requirements applicable to temporary marihuana events may result in disciplinary action against the marihuana event organizer license or any other licenses held by a licensee participating in the temporary marihuana event and responsible for a violation of the MRTMA or these rules.
(3) A temporary marihuana event license must mayonly
be issued only for a single day or up to 7 consecutive days. A temporary
marihuana event license must may not be issued for more than 7
days.
(4) An application for a temporary marihuana event license must be submitted to the agency not less than 90 calendar days before the first day of the temporary marihuana event.
(5) A temporary marihuana event may only be held only
at a venue expressly approved by a municipality for the purpose of holding a
temporary marihuana event.
(6) A temporary marihuana event may be held only if the applicant is expressly approved by a municipality to hold a temporary marihuana event where sales to, or consumption of marihuana by, persons 21 years of age or older will occur.
(67) An application for a temporary
marihuana event license must be made under oath on a form provided by the
agency and must contain information as prescribed by the agency, including, but
not limited to at a minimum, all of the following:
(a) The name of the applicant. Applicants who are individuals shall provide both the first and last name of the individual. Applicants that are business entities shall provide the legal business name of the applicant.
(b) The marihuana event organizer license number and license
number of any other each marihuana establishment license held by the
applicant.
(c) The address of the location where the temporary marihuana event will be held.
(d) The name of the temporary marihuana event.
(e) A diagram of the physical layout of the temporary
marihuana event. The diagram that must clearly indicates
all each of the following:
(i) Where the temporary marihuana event will be
taking take place on the location grounds.
(ii) All entrances and exits that will be used by participants during the event.
(iii) All marihuana consumption areas.
(iv) All marihuana retail areas where marihuana products will be sold.
(v) All areas where Where marihuana waste
will be stored.
(vi) All areas where marihuana products will be stored.
(vii) The specific location of each marihuana retailer or marihuana microbusiness or class A marihuana microbusiness licensee who will be participating in the event. Each marihuana retailer or marihuana microbusiness or class A marihuana microbusiness licensee participating in the event must be identified with an assigned temporary marihuana event location number.
(f) The dates and hours of operation for which the
proposed temporary marihuana event license is being sought. A
temporary marihuana event license is required for any date in which the
applicant engages in onsite marihuana product sales or allows onsite marihuana
product consumption.
(g) Contact information for the applicant’s
designated primary contact person regarding for the temporary
marihuana event license, including the individual’s name, title,
address, phone number, and email address of the individual.
(h) Contact information for a the designated
contact person or persons who shall must be onsite at the event,
and reachable by telephone at all times that the event is occurring.
(i) Written attestation on a form provided by the
agency from the municipality authorizing the applicant to
engage in onsite marihuana sales to, and onsite consumption by, persons 21
years of age or older at the temporary marihuana event at the proposed location.
For an applicant seeking licensure for a temporary marihuana event, confirmation
of municipal compliance on an attestation form provided by the agency that
includes all of the following:
(i) The name and address of the proposed temporary marihuana event.
(ii) The municipality where the proposed temporary marihuana event is located.
(iii) The contact information for the municipality including, at a minimum, all of the following:
(A) The name of the clerk of the municipality or his or her designee.
(B) The telephone number of the clerk of the municipality or his or her designee.
(C) The email address of the clerk of the municipality or his or her designee.
(D) The mailing address of the clerk of the municipality or his or her designee.
(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed temporary marihuana event.
(v) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.
(vi) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed temporary marihuana event, any municipal approvals, or any violations of a municipal or zoning regulation.
(vii) Attestation by the applicant describing if the applicant will engage in onsite marihuana sales to, and allow onsite consumption by, person 21 years of age or older at the temporary marihuana event.
(viii) The date and signature of the applicant.
(j) A list of all licensees and employees that who
will be providing onsite sales of marihuana products at the temporary marihuana
event. If the list of licensees and employees participating in the temporary
marihuana event changes after the application is submitted or after the
temporary marihuana event license is issued, the applicant shall submit an
updated list and an updated diagram to the agency not less than 72 hours before
the event. Licensees not on the list submitted to the agency shall may
not participate in the temporary marihuana event.
(k) A responsible operations plan that includes a detailed explanation of how employees will monitor and prevent over-intoxication, underage access to the designated consumption establishment, the illegal sale or distribution of marihuana or marihuana products within the consumption establishment, and any other potential criminal activity on the premises.
(78) An applicant for a temporary marihuana
event shall pay all required fees before the agency issues a temporary
marihuana event license.
(89) The licensed marihuana event organizer
shall hire or contract for licensed security personnel to provide security
services at the licensed temporary marihuana event. All security personnel
hired or contracted for by the licensee shall be at least 21 years of age, and be
present on the licensed event premises at all times marihuana products are
available for sale or marihuana consumption is allowed on the licensed event
premises. The security personnel shall not engage in the consumption of
marihuana products before or during the event.
(910) A licensed marihuana event organizer
shall maintain a clearly legible sign, not less than 7” x 11” 7 by 11
inches in size reading, “No Persons Under 21 Allowed” at or near each
public entrance to any area where the sale or consumption of marihuana products
is allowed. The lettering of the sign shall be not less than 1 inch in height.
(101) The marihuana event organizer licensee
shall ensure that access to the event is restricted to persons 21 years of age
or older and ensure that marihuana sales or consumption is not visible from any
public place or non-age-restricted area.
(112) The marihuana event organizer
licensee, who holds the temporary marihuana event license, is responsible for
ensuring that all rules and requirements for the onsite consumption of
marihuana products are followed.
(123) The marihuana event organizer licensee
shall ensure that all marihuana waste generated at a temporary marihuana event is
collected and disposed of in accordance with the requirements of these rules,
as applicable.
(134) A licensed marihuana event organizer
and all other licensees participating in a temporary marihuana event are
required to comply with all other applicable requirements in the Michigan
regulation and taxation of marihuana act MRTMA and these rules and
any municipal ordinances.
(145) The agency may require the marihuana
event organizer and all participants to cease operations without delay if in
the opinion of the agency or law enforcement it is necessary to protect the
immediate public health and safety of the people of this state. Upon
notification from the agency that the event is to cease operations, the
marihuana event organizer shall immediately stop the event and all participants
shall must be removed from the premises within the time frame
provided by the agency.
(156) Upon notification from the agency, the
marihuana event organizer shall immediately expel from the event any person
selling marihuana products without a marihuana retailer, or
marihuana microbusiness, or class A marihuana microbusiness license
issued by the agency. The marihuana event organizer or their his or
her representative shall remain with the person being expelled from the
premises at all times until he or she vacates the premises. If the person does
not vacate the premises, the agency may inform the marihuana event organizer
that the event must cease operations. Upon notification from the agency that
the event is to cease operations, the marihuana event organizer shall immediately
stop the event and all participants shall must be removed from
the premises within the time frame provided by the agency.
R 420.26 Temporary marihuana event fee.
Rule 26. (1) Each marihuana event organizer licensed to hold a temporary marihuana event in this state shall pay an initial licensure fee that consists of both of the following:
(a) For temporary marihuana events that do not include the sale of marihuana products, a $500.00 fee for each day of the scheduled event to cover the agency’s enforcement and compliance costs.
(b) For temporary marihuana events that include the sale of marihuana products:
(i) A $500.00 fee for each licensee authorized to sell marihuana product at the event to cover the agency’s enforcement and compliance costs.
(ii) A $500.00 fee for each day of the temporary marihuana event to cover the agency’s enforcement and compliance costs.
(2) If a licensee scheduled to attend an event withdraws from the event prior to the first day of the event, the marihuana event organizer may request a refund for that portion of the fees paid to the agency to cover the enforcement and compliance costs for that licensee.
(3) A marihuana event organizer’s application
for a temporary marihuana event license is exempt from the applicant is
not required to pay an application fee of $6,000 under these rules.
R 420.27 Temporary marihuana event sales.
Rule 27. (1) A marihuana event organizer licensee shall ensure that access to the area where marihuana sales are allowed is restricted to persons 21 years of age or older.
(2) Only persons age 21 years of age or
older may purchase and consume marihuana products at a temporary marihuana
event. Prior to selling marihuana products to a customer, the licensee making
the sale shall confirm, using valid identification as specified in the Michigan
regulation and taxation of marihuana act MRTMA and these rules, the
age and identity of the customer.
(3) All sales of marihuana products at a temporary
marihuana event must shall occur in a retail area as designated
in the premises diagram required in these rules.
(4) Each sale at a temporary marihuana event must be
performed by a licensed marihuana retailer, or a marihuana
microbusiness, or a class A marihuana microbusiness that is authorized
to sell marihuana products to customers. The marihuana event organizer may also
sell marihuana products at the temporary marihuana event if the marihuana event
organizer separately holds a separate state license as a
marihuana retailer, or a marihuana microbusiness, or a class
A marihuana microbusiness.
(5) Licensed marihuana retailers, or
marihuana microbusinesses, or class A marihuana microbusinesses shall only
conduct sales activities only within their specifically assigned area,
identified in the diagram of the physical layout of the temporary marihuana
event.
(6) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary marihuana event site.
(7) Licensed marihuana retailers, or
marihuana microbusinesses, or class A marihuana microbusinesses must
shall prominently display their temporary marihuana event location
number and state license number within plain sight of the public.
(8) All sales at a temporary marihuana event must occur on the dates stated on the state license and must occur at the location stated on the state license. All onsite sales of marihuana products must comply with the hours of operation requirements in these rules.
(9) The marihuana products sold onsite at a temporary
marihuana event must be transported to the site of the temporary marihuana
event by a licensed secure transporter in compliance with the Michigan
regulation and taxation of marihuana act and these rules. A licensed
transporter is not required if less than 15 ounces of marihuana or 60 grams of
concentrate is being transported at one 1 time.
(10) Except small amounts of products used for display,
all marihuana products for sale at a temporary marihuana event must be stored
in a secure, locked container that is not accessible to the public. Marihuana
products being stored by a licensee at a temporary marihuana event must not
be left unattended.
(11) All marihuana products made available for sale at a
temporary marihuana event by a licensee must comply with all requirements of the
Michigan regulation and taxation of marihuana act MRTMA and these
rules for the sale and tracking of marihuana products. This includes, but is
not limited to at a minimum, all of the following:
(a) Identifying marihuana product from licensees’ inventory at the marihuana establishment that will be transported for sale at the event using a marihuana secure transporter or an agent of the licensee to the temporary marihuana event.
(b) Tracking in the statewide monitoring system any sales of marihuana product at the event in accordance with the requirements of these rules.
(c) Tracking in
the statewide monitoring system any marihuana product that is not sold at the
event and is being returned to the marihuana establishment’s inventory
at its permanent location. If more than 15 ounces of marihuana or 60 grams of
concentrate is being transported at one 1. time, it must
be transported using a marihuana secure transporter.
R 420.27a Marihuana educational research license.
Rule 27a. (1) A marihuana educational research license authorizes a licensee to do all of the following:
(a) Obtain marihuana from a marihuana establishment.
(b) Produce marihuana products.
(c) Perform research on marihuana and marihuana products.
(d) Dispose of marihuana and marihuana products.
(2) A licensee holding a marihuana educational research license shall apply for the necessary registration from the United States Drug Enforcement Administration (DEA). A licensee must provide proof of registration to the agency before engaging in any licensed activity.
(3) An application for a marihuana educational research license must be made under oath on a form provided by the agency. A complete application for a marihuana educational research license must contain the information required in these rules and information regarding the marihuana educational research license including, at a minimum, all of the following:
(a) A research plan including, at a minimum, all of the following:
(i) A written plan for documenting all individuals who will have access to the location and marihuana or marihuana products.
(ii) Detailed description and documentation of affiliation with a degree or certificate program offered by an institution of higher learning accredited by the Higher Learning Commission.
(iii) A brief description of the research that will be conducted.
(iv) A written plan to ensure secure delivery and receipt of marihuana at the licensed location.
(v) A written plan to ensure the safe storage of marihuana at the licensed location.
(vi) A written plan for the tracking of marihuana quantities at the licensed location.
(vii) A written plan for the disposal of marihuana after research.
(viii) A floor plan of the location.
(b) For an applicant seeking licensure for a marihuana educational research license, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:
(i) The name and address of the proposed marihuana educational research license.
(ii) The municipality where the proposed marihuana educational research license is located.
(iii) The contact information for the municipality including, at a minimum, all of the following:
(A) The name of the clerk of the municipality or his or her designee.
(B) The telephone number of the clerk of the municipality or his or her designee.
(C) The email address of the clerk of the municipality or his or her designee.
(D) The mailing address of the clerk of the municipality or his or her designee.
(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana educational research license.
(v) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.
(vi) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana educational research license, any municipal approvals, or any violations of a municipal or zoning regulation.
(vii) The date and signature of the applicant.
(c) A certificate of use and occupancy pursuant to R 420.208 in which the authorized activities of the marihuana educational research license are to be conducted.
(d) Any other documents required by the agency that are not inconsistent with the acts and these rules.
(4) An applicant for a marihuana educational research license shall provide notification and report to the agency in writing within 24 hours when he or she became aware of or should have become aware of all of the following:
(a) Loss of institutional affiliation.
(b) Loss of institutional accreditation.
(c) Loss or restriction of DEA registration.
(d) Theft, loss, diversion, or criminal activity at the licensed location.
(5) A marihuana educational research licensee shall maintain and provide upon request of the agency a written schedule for disposal of marihuana and marihuana products after it has concluded research on that item.
(6) A marihuana educational research licensee shall accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required by the agency.
(7) A marihuana educational research licensee shall not sell or transfer marihuana or marihuana products to a marihuana establishment or to a marihuana customer.
(8) A marihuana educational research licensee shall designate and enter into the statewide monitoring system administrative users pursuant to R 420.602(2)(b) and (c) as required by the agency.
(9) A marihuana educational research licensee shall prohibit marihuana or marihuana products grown, produced, or obtained under the license to be consumed or sampled on the licensed premises unless the licensee is approved to engage in a research study under R 420.510(11) or the licensee obtains express written permission from the agency.
R 420.27b Class A marihuana microbusiness.
Rule 27b. (1) An applicant for a class A marihuana microbusiness license is subject to and shall meet the requirements of the MRTMA and these rules.
(2) An application for a class A marihuana microbusiness license must be made under oath on a form provided by the agency and must contain information as prescribed by the agency.
(3) An applicant for a class A marihuana microbusiness license shall pay applicable fees as required under these rules.
(4) The agency may determine that an applicant is ineligible for a license or may deny an application for the reasons specified in these rules, as applicable.
(5) Payment of the initial licensure fee must be received prior to issuance of the state license.
(6) A class A marihuana microbusiness licensee is subject to all requirements for a marihuana microbusiness as provided for in the MRTMA and these rules, unless modified in these rules.
(7) An applicant shall pay the initial licensure fee for a class A marihuana microbusiness license within 10 calendar days of approval or within 90 calendar days of submitting a complete application, whichever date is first.
R 420.28 Renewal; notifications; inspections and investigations; penalties; sanctions; fines; sale
or transfer.
Rule 28. (1) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, and marihuana event organizer license are issued for a 1-year period and may be renewed. An applicant for renewal must meet the requirements, as applicable, and apply in the manner prescribed in these rules.
(2) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, and marihuana event organizer applicant or licensee are subject to the notification and reporting requirements specified in these rules, as applicable.
(3) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer licensee or licensee participating in a temporary marihuana event shall comply with the notification requirements for theft, loss, or criminal activity pertaining to marihuana product under these rules, as applicable.
(4) An applicant for or a licensed designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer are subject to the inspections and investigations specified in these rules, as applicable.
(5) An applicant for or a licensed designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer are subject to these rules regarding violations, sanctions, and fines.
(6) A licensee selling marihuana products at a temporary marihuana event shall comply with the requirements of these rules regarding the sale or transfer of marihuana.
(7) A licensee selling marihuana products at a temporary marihuana event shall comply with the requirements of these rules regarding purchasing limits in a single transaction.