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Creation of the Medical Marijuana Licensing Board

With the rise of medical marijuana as an alternative to traditional medicine, there has been an uptick in legislation and regulatory bodies that provide order in the industry. The Department of Licensing and Regulatory Affairs (LARA) will regulate medical marijuana sales. In addition, a new Medical Marijuana Licensing Board will play an important part in the regulation of medical marijuana businesses. The partial reason for the creation of the Michigan medical marijuana licensing board is so that they can review business license applications.

However, it is important to note that the Board will not be allowed to promulgate a rule establishing a limit on the number or type of marihuana facility licenses that may be granted.  This is both good and bad; good because this means there will be little opportunity to form a medical marijuana monopoly, but bad because, just as in states like Utah, no limit ultimately means lower prices. If you want to know to know more about the Michigan medical marijuana licensing board and your rights as a business owner, get in touch with a skilled medical marijuana lawyer today.

Role of the Medical Marijuana Board

One of the reasons for the creation of the Michigan medical marijuana licensing board is in order to streamline the application process. The Board will have the authority to approve applications and grant licenses for people who want to establish legitimate medical marijuana dispensing businesses. The Board will provide oversight of marijuana facilities through inspectors, agents, and auditors and through the state police or attorney general.

Using these agents, the Board will certify revenue, conduct investigations into the operation of marijuana facilities and will be responsible for promoting the security, and integrity of the operation of marijuana facilities. The Board will hold open meetings and will assist the state's governor and legislature through their review of the patterns of marijuana transfers under this act.  This review of the tracking database will be used in and for the administration and enforcement of this act.

Taxes and Other Fees

Taxes and other fees will apply to medical marijuana businesses. These taxes and fees must comply with Michigan's sales tax. In addition, there will be a 3% tax at the register for patients using new provisioning centers. Businesses are also subject to additional fees. Businesses applying for a license must also pay fees as part of the application process. There are also investigation and processing fees not covered by the application fee.

Once licensed, license holders must also pay an assessment fee every year. This includes an annual, nonrefundable fee (of up to $5,000) to be set by, and paid to, their local municipality. These fees are used to offset administrative and enforcement costs associated with the operation of a marijuana facility in the municipality.

Finally, in evaluating medical marijuana business owners need to consider the fees associated with violating one of the statutes or laws in the running of their business. The business owner will be protected from prosecution of marijuana related crimes, but only if they comply with the regulations outlined in their license. They may face fines and other consequences if they violate the terms of their license.

Consulting an Attorney

The creation of the Michigan medical marijuana licensing board is a step forward in the legitimization of the medical marijuana industry; however, the establishment of a board is not always enough to protect your rights. If you are in the process of applying for a license, or you are operating an already established and licensed business contact a qualified medical marijuana lawyer. A seasoned attorney can use their knowledge and experience to protect you, your business, and your rights.

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