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Medical Marihuana RegulationFacilities Licensing, Tracking & Regulatory Responsibilities
BackgroundIn September 2016, the Michigan Legislature passed and the Governor subsequently signed into law three bills (House Bills 4209, 4827 and 4210, being Public Acts 281-283 respectively) that will create a regulatory framework for medical marihuana facilities. This establishes a support structure for medical marihuana provisioning centers, growers, processors, securetransporters,and safety compliance facilities. It also creates a statewide monitoring system for the tracking,inventory,and verification of medical marihuana and allows for the manufacture and use of marihuana-infused products. This regulatory framework must be implemented by December 15, 2017.
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
IT InfrastructureStatewide Monitoring SystemSystem for tracking, inventory, and verification of medical marihuana.System will allow for verification of patient status as current and active.SelectedFranwellInc. as the vendor,METRCsystem.Implementation scheduled to begin in early May.Licensing SystemCustomer portal and backend system for applications, renewals, fee assessments, inspections, investigations, compliance, and license verification.LARA will leverage an existing enterprise solution being utilized by the Bureau of Construction Codes, Bureau of Fire Services, and Bureau of Professional Licensing.Implementation beganinApril.
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
Administrative Rules – Section 206Standards for marihuana facilities and associated equipmentMinimum levels of insuranceOperating regulationsQualifications and restrictions for participating/involved personsStandards, procedures, andrequirements for testing, quality control, chain of custody, waste product disposal, chemical storage, transportation, storage, and labeling (prohibition on appealing to minors)Levy and collection of fines for violationsPrescribe use of the statewide monitoring systemDaily purchasing limitsMarketing and advertising restrictionsMaximum THC levels for infused productsHealth standards for preparation of consumable productsRestrictions on edible product shapes that would appeal to minors
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
MunicipalitiesOrdinance to authorize facilities must be adoptedMay adopt other ordinances, including zoning, cannot impose regulations regarding purity or pricing or conflicting with statutory regulationsProvide to LARA within 90 days after notice of application from an applicant:Copy of authorizing zoning ordinanceCopy of any zoning regulations that applyDescription of any violation of local ordinance or zoning regulations related to activities licensed under theMMFLA
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
LARA Regulatory ResponsibilitiesGranting/denying licenses in a reasonableorderGood moral character and financial background checks for applicants, including all direct/indirect owners, beneficiaries, shareholders, officers, directors, partners, members andmanagersStatewide prelicensure and routine facility compliance inspections and audits.Collecting fees andfinesStatewide administrative complaintinvestigationsAdministrativehearingsDisciplinary compliancemonitoringBoard and Advisory Panel support and administrativefunctionsCustomerserviceConducting publicmeetingsAnnual renewals, regulatory assessment collections, and financial statementreviewsKey performance indicatoranalyticsIT system support and maintenance.
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
Medical Marihuana Licensing BoardMembers5 members, appointed by the Governor (with input from the Senate Majority Leader and the Speaker of the House), to administer the Act.Members have not been appointed.ResponsibilitiesIssuinglicenses, revoking/suspending licenses,levying fines,and investigating individuals who are applying for licensure or complaints received about someone who holds a license.
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
Medical Marihuana Advisory PanelMembersState agencies – LARA, MSP, AG, MDARD, DHHSLocals – townships, cities and villages, counties, sheriffs, local policeLicensees – growers, processors, provisioning centers, safety compliance facilities, secure transporters, physician, registered patient or primary caregiverResponsibilitiesPublic meetings at least 2x per yearMake recommendations to the board on rule promulgationAs requested by board or department, make recommendations on administration, implementation, and enforcement
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act
LARA ImplementationMeeting with stakeholdersReviewingbestpracticesin other statesInitiating implementation of IT systemsDeveloping preliminary language for emergency administrative rules for the Board’s considerationResearching potential external resources and partnerships for specialized processes: grow facility inspections, processor inspections (food safety), criminal and financial background investigations
Medical Marihuana Facilities Licensing Act & Marihuana Tracking Act
Medical Marihuana Excise Fund:Includes revenue from a 3% excise tax on provisioning center sales, and all other charges associated with Public Act 281 of 2016 (not including revenue from the application fees, the regulatory assessment, and any local licensing fees).Key Highlights of the Excise Tax Distribution:The majority of the excise tax revenue generated (60%) will go to support local units of government and by statue is distributed in proportion to the number of marihuana facilities in a municipality or county.The remainder ofthe excise tax revenue generated (40%) will be allocated to the Michigan Commission on Local Law Enforcement Standards for local law enforcement training, the Dept. of State Police for enforcement activities, and the Dept. of Licensing and Regulatory Affairs for the First Responder Presumed Coverage Fund to support cancer claims of eligible firefighters.
State Budget Office Analysis, Medical Marihuana Regulatory and Licensing Framework, February 8, 2017
For additional information and to sign up for updates please visit:
Medical Marihuana Facilities Licensing Act &Marihuana Tracking Act





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Senate Appropriations Committee Meeting -