“In the business world, bad news is usually good news –
for somebody else.”
First, the good news. Earlier today, the Department of Licensing and Regulatory Affairs (LARA) announced it would recommend that at the March meeting of the Michigan Medical Licensing Board (Board), the Board adopt a resolution to allow licensed growers and processors to accept cannabis from caregivers in order to maintain sufficient supplies while the industry ramps up production.
The growers and processors must put the product received from caregivers into the statewide monitoring system and test it before moving to provisioning centers.
LARA also indicated that accepting caregiver product will not jeopardize growers and processor licenses. The ability to acquire product from caregivers will continue until such time as LARA determines that there exists sufficient supply for the market.
Now, the bad news. Presently unlicensed medical cannabis dispensaries were allowed to remain open until March 31, while they waited for approvals for their pending applications. Many of these facilities were expecting (maybe, hoping) that the deadline for closing would be extended further. If they were, they’ll be disappointed.
The LARA announcement also provides that the March 31 drop dead date is final. Temporarily operating facilities must close on that date. LARA intends to send cease and desist letters for facilities that remain open in April. Further, continued operation will likely negatively impact pending license applications.
So, the good news is that product should be available to patients while the medical cannabis industry gets up to speed. The bad news is that many currently open operations will need to close while their applications are pending.
Hopefully, under the new Marijuana Regulatory Agency, the application process will speed up and more provisioning centers will be available for patients.
- Senior Attorney
A senior attorney in Plunkett Cooney’s Bloomfield Hills office, Saulius K. Mikalonis leads the firm's Environment, Energy and Resources Law and Cannabis Law industry groups.
Mr. Mikalonis focuses his practice on all aspects of ...
Add a comment
SubscribeRSS Plunkett Cooney LinkedIn Page Plunkett Cooney Twitter Page Plunkett Cooney Facebook Page
- Regulatory Law
- Medical Marijuana
- Zoning and Planning
- Tax Law
- Environmental Legislation
- Environmental Regulation
- Public Policy
- Internal Revenue Service (IRS)
- Commercial Real Estate
- Environmental Liability
- Environmental Protection Agency
- Business Torts
- Commercial Liability
- Business Risk Management
- Banking Law
- Solid Waste
- Can Zoning Ordinances Stunt Cannabis Growth?
- Biden, Democrats Reject Cannabis Legalization for Party Platform but Back Decriminalization
- Michigan Regulatory Agency Updates COVID-19 Guidance for Cannabis Industry
- Michigan Requires Cannabis Businesses to Operate in Manner That Limits Spread of COVID-19
- Federal COVID-19 aid to Currently ‘Essential but not Eligible’ Cannabis Businesses may be Forthcoming
- Federal Treasury Inspector General Report Indicates Need for More Tax Compliance Efforts, Cannabis Business Guidance
- Michigan Governor Deems Cannabis Businesses as ‘Essential’ During COVID-19 Outbreak
- Simple Rules for Cannabis Possession in Michigan
- 2020 Presidential Election may be Best Chance to win Voter Approval for Local Cannabis Ballot Proposals
- Court Says no tax Deductions for Legally Operating Cannabis Business