On Wednesday, Michigan Governor Gretchen Whitmer signed a set of emergency rules that detail rules regarding licensing applications and the difference between the state’s adult-use and medicinal marijuana systems.
The following are the additions/alterations made to to the proposed recreational industry rules and requirements:
1) The state has done away with the initial capital requirement for entrepreneurs, which was set at $150,000- $500,000, as it was proving to be a prohibitive step for many looking to tap into the industry.
2) A 3-tier system will also be introduced for fair ‘fee pricing’, implying large-scale businesses would have to pay a higher rate as compared to the small to medium-scale companies. Earlier, the fee was set at flat $66,000 for all businesses.
3) The new regulations aim to set up smoking lounges at retailers and special events, provided that these venues don’t sell other refreshments (food and alcoholic beverages).
4) Growers wishing to cultivate no more than 150 plants can process and sell marijuana from the same address.
5) Under the new rules, recreational marijuana license applications submitted by companies already holding a medical marijuana license will be given a higher priority.
Welcoming the new rules, Josh Hovey, the spokesperson for Michigan Cannabis Industry Association told the media: ““We are happy that there are no capitalization requirements, which should help make licenses more accessible to small-business owners, and there is a high demand for on-site consumption and marijuana-friendly special events, so we also are thankful that there will be licensing available for businesses that serve this need.”
In order to make the market a fair place for disadvantaged communities, the state’s Marijuana Regulation Authority is planning to release its social equity plan by the end of this month.
The expiration date for the aforementioned rules is in half a year; however, the regulations won’t take effect for months. Thus, in a way, the new rules and regulations were released primarily so that local jurisdictions can make an informed decision on whether they will be the site of recreational marijuana businesses or not.