The Michigan Commercial Grow License is one of the most highly coveted licenses in the state. This is because it allows the holder to legally cultivate and sell cannabis.
According to Michigan law, possessing marijuana is not legal unless a person has a valid medical prescription and has registered as a medical marijuana card holder. However, a certified caregiver in the State of Michigan is also permitted to have marijuana on hand, as allowed under the Michigan Medical Marijuana Act, M.C.L. SS333.26421 et seq.
In spite of the general federal prohibitions against marijuana, Michigan has approved legislation known as Medical Marijuana Facilities Licensing Act, M.C.L SS333.27101 et seq. The provisions of that act permit to establish medical marijuana growers to supply to the industry of medical cannabis. But equally important to note is that Michigan legalized recreational marijuana in 2018 and as such, has made commercial grow licenses available.
If you’re considering getting an MMFLA Business License, it’s essential to know how Michigan law impacts your operation’s ability to obtain a license. Keep reading to learn more about Commercial Grow License options in Michigan now.
Need help obtaining a Commercial Grow License in Michigan? Contact us now to speak with one of our experts and take the first step to obtaining your license today.
Options for a Michigan Commercial Grow License in 2022
Qualifying for a Commercial Grow License in 2022 means that applicants must meet a number of conditions. You’ll need to get a criminal background check to prove you haven’t had any offenses that would disqualify you from getting a license.
If you don’t disclose your criminal history to the board, your risk of being denied is heightened. This is the reason why applications are frequently denied.
On another note, Michigan has a few options for Commercial Grow Licenses, including the following:
Michigan Class A Grower License Requirements
The Class A Grower License in Michigan is the most restrictive in terms of the number of cannabis plants that can be cultivated. A Class A license holder is only allowed to grow up to 100 plants. The application fee for a Class A license is $1,200.
To qualify for a Class A Grower License in Michigan, applicants must have a minimum capital investment of $150,000. This is the sum of money that could be invested in the business. You’ll need this in relatively liquid assets to ensure you can exchange them for cash if need be.
Michigan Class B Grower License Requirements
The Class B Grower License in Michigan is less restrictive than a Class A license, allowing holders to grow up to 500 plants. The application fee for a Class B license is $6,000.
To qualify for a Class B Grower License in Michigan, applicants must have a minimum capital investment of $300,000. This is the total amount of money that you could invest in the business, including the cost of real estate, equipment, and supplies.
Michigan Class C Grower License Requirements
For those considering the Class C Grower License, you’ll need to have a minimum capital investment of $150,000. The application fee for this license is $24,000.
With a Class C Grower License in Michigan, license holders are allowed to grow up to 1,500 plants. But these licenses are stackable, meaning you can stack up to 5 licenses for a total of 7,500 plants.
Michigan Commercial Grow License Application Details
For those interested in applying for a Michigan grow license, it’s possible to apply by submitting your application in paper form or online. Two steps are required involved in the application, which is the pre-qualification and qualifying for the license.
The first step can be performed before you have a location for your business. Thus, you do not need to acquire the location before you can begin applying for your commercial growers license.
The forms aren’t so straightforward and are only the start of your application. While the application process and associated forms are complicated, it’s usually best to discuss your application with a CPA who has the knowledge and experience to help you apply for your commercial cannabis grower license.
As you work on the pre-qualification stage for your application, you’ll need to obtain an extensive background check for yourself as the primary applicant, as well as other applicants. This includes all businesses and individuals with ownership interests examined within the application.
The background check highlights the criminal histories of all applicants via State as well as Federal Databases to make sure none of the applicants have criminal convictions that would disqualify them.
In accordance with MMFLA, several infractions or conditions are disqualifying. Be aware that M.C.L. SS333.27402 states:
An applicant is not eligible to obtain the license if one of the following situations are true:
- The person was convicted or released from prison for an offense under Michigan law, or any other state or the United States over the last 10 years, or was found guilty of a controlled substance-related felony at some point over the last 10 years.
- At some time over the last five years, the applicant was found guilty of a misdemeanor that involved an illegal substance, dishonesty, fraud, or theft, in any of the states, or was revealed to be responsible for breaking a local ordinance with an illegal substance in any state, dishonesty, fraud, or theft that’s a misdemeanor within the state.
- The person applying has filed the application to obtain a license pursuant to this act, but the application contains incorrect information.
- The person applying is a board member.
- The applicant is unable to prove that they can keep sufficient insurance coverage for premises liabilities and casualties for the marijuana facility they plan to operate.
- The applicant is a holder of a government position in the governing unit of the state of Michigan, another state, or in the Federal government. Or the applicant is a member or employed by the regulatory agency of the governmental entity within this state. This subdivision is not applicable to an elected officer or an employee of the federally-recognized Native American tribe, or the elected delegate of a precinct.
- The applicant is someone who has been a Michigan resident for fewer than two years continuously prior to the date of the filing. This subdivision’s requirements will not be applicable following June 30, 2018.
- The Board finds that the applicant isn’t in conformity in accordance with the provisions of section 205(1).
- The person applying does not meet the other requirements set forth by the state’s rules.
The pre-qualification phase also analyzes applicants’ financial health, along with the financial health of their spouses, for determining if the applicants achieve the financial requirements necessary in order to obtain their growing license. The goal here is also to confirm that the financial histories of applicants are accurate and they don’t have unproven sources of money or transactions.
It’s important to note that the Administrative Emergency Rules that handle the licensing process have established minimal funding requirements for every one of the grower license categories.
For an A Class Growers License, applicants need to show $150,000 in assets attested, with $37,500 being liquid. If the license the applicant is working to get is Class B, applicants need to show $300,000 in assets attested, with $75,000 of that liquid. To obtain a class C license, applicants need to show $500,000 and $125,000 that is liquid.
These capital requirements are minimums; however, without the attestation showing assets that achieve these minimums, a license is not granted.
Michigan Commercial Growers License Application Fees
There’s a fee that must be paid by the State of Michigan before the application is processed. Each type of commercial growers license costs $6,000, regardless of the kind of license you’re applying to obtain.
You’ll also need to consider the fees for municipal licensing, which must be paid to the majority of cities in which facilities are allowed to be built. The majority of municipalities have a $5,000 non-refundable fee. But there are some municipalities that charge less.
The fee for the State is payable either in cash in person or online. Keep in mind that the method and location for your payment will differ from city to city. Some cities allow online payments while others require in-person payments by cash, credit card, or check.
Commercial Grow License Approval in Michigan
After all minimum requirements are satisfied and you’ve completed the first step, the BMMR will submit the license to the Medical Marihuana Licensing Board (MMLB). If the MMLB accepts your license application, you will be required to pay a fee to get a regulatory assessment for every license you obtain.
The Board has now implemented a fee for assessing regulatory compliance at $48,000.00 in 2018 for cultivators in Class B and Class C. The assessment for growers in Class A costs $10,000.00.
Andy Brisbo the head of the Bureau for Medical Marijuana Regulation, spoke on how the Bureau is pushing to create a standard regulatory assessment for all license types by 2019. The Board could change its stance, increasing or reducing the regulatory assessment demands for each commercial cultivation license, with the potential for variations between the classes of grow licenses.
MI Commercial Grow License FAQ
How much does it cost for a Commercial Grow License in Michigan?
Getting a Commercial Grow License in MI will cost a minimum of $6,000. This does not include the cost of the attestation or regulatory assessment.
How do you become a licensed grower in Michigan?
Becoming a licensed Michigan cannabis cultivator involves paying the necessary application fees, getting a background check, meeting the qualifications, having capital to invest in your operation, and more.
How many plants can a Class A grower have in Michigan?
Class A growers in Michigan are allowed to cultivate up to 100 plants. However, if that’s not enough, you can get a Class B grower to grow up to 500 plants.
How many plants can you grow with a growers license in Michigan?
This all depends on the license. Class A growers in Michigan are able to cultivate up to 100 plants legally. But Class B growers can cultivate up to 500 plants. The next level of licensure is Class C, which permits cultivation operations up to 1,500 plants. When stacked, Class C can allow up to 7,500 plants.