Cannabiz Law Blog

In a recent blog post, we reported that the Michigan Department of Licensing and Regulatory Affairs (LARA) determined that unlicensed medical cannabis dispensaries that had not yet had their applications for licenses needed to close by Dec. 31, 2018, or risk having their continued operation be considered against them. We noted that there were rumors that Gov. Gretchen Whitmer’s new administration would consider a reprieve, but there were no guarantees.

On Jan. 15, LARA reversed course, proposing that facilities that are temporarily operating while their applications are pending may continue to operate through March 31. Those facilities must have applied for a license no later than Feb. 15, 2018, is operating in a municipality that had an authorizing ordinance in place by Dec. 15, 2017, and the applicant provides one business day notice if it becomes aware of any adverse reaction to its product.

Licensed provisioning centers may accept product from a registered caregiver or a temporarily operating entity if it obtains a signed consent form from the patient recognizing that he or she is purchasing untested product, enters all of its inventory into the statewide monitoring system, confirm that the patient holds a valid medical card, enter all sales into the statewide monitoring system, not exceed daily purchasing limits and provide one business day notice of any adverse reactions to product sold.

Licensed growers or processors must enter all product as inventory in the statewide monitoring system, tag or package all inventory, restrict transfers of product to that which has been tested in full compliance with the statutes and regulations and provide one business day notice of any adverse reactions to product sold or transferred.

The Michigan Marihuana Licensing Board (MMLB) considered LARA’s proposal at its Jan. 16, meeting. Per LARA’s Facebook page, LARA’s recommendation was adopted by a 4-0 vote. So, applicants’ hopes that they could continue to provide patients with medical cannabis after Dec. 31, 2018 while their applications were pending turned out to be more than just wishful thinking.