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Eligibility for a Commercial Marijuana License

Attaining a medical marijuana license is typically the first step in legitimizing a medical marijuana business. However, before you start that process, it is important that you learn more about eligibility for a commercial Michigan marijuana license, and what steps you can take to make sure that you are eligible for a commercial medical marijuana license. An experienced medical marijuana attorney can be a vital source of information. If you want to apply for a license but are not sure whether you are eligible, or if you have any other questions, contact a lawyer that can help.

Factors for Eligibility

If a person wants to get a marijuana license, they should make sure that they are eligible before they spend the time and money applying. An individual will be considered ineligible for applying for this license if:

  • They have been convicted of a felony within the past 10 years
  • They have been convicted of a misdemeanor involving theft, dishonesty, or a controlled substance
  • They previously filed an application for a grower's license that the business owner knew contained false information
  • They are a member of the Medical Marijuana Licensing Board
  • They are an elected official
  • They cannot provide proper premises liability or casualty insurance

Other factors that will be taken into consideration include:

  • Whether they have applied for bankruptcy in the past seven years
  • If they have a history of tax issues
  • If they have ever skipped bail
  • If they have a prior history of business problems
  • If they have ever been charged with a crime
  • Their financial situation
  • Their moral character

If someone thinks that they can meet the requirements for eligibility for a commercial Michigan marijuana license, then the first thing that person must do is prepare their application for a license. In this regard, they will be an applicant.

The law provides that an applicant is a person who applies for a state operating license. Also, the Act indicates that the term person can refer to an individual, corporation, limited liability company, partnership, limited partnership, limited liability partnership, limited liability limited partnership, trust, or other legal entity. Because business entities may also apply for licenses, the Act also uses the term applicant, to refer to an officer, director, or managerial employee of the applicant.

The state of Michigan is carefully evaluating all individuals who might have an interest in the medical marijuana business, so the Act also uses the term applicant when referring to a person who holds any direct or indirect ownership interest in the applicant (if not an individual).

Preparing an Application

Beginning December 20, 2017, a person may apply to the board for state operating licenses in the categories of class A, B, or C grower. The application shall be made under oath on a form provided by the board and shall contain a large amount of information. Once someone has determined their eligibility for a commercial Michigan marijuana license, they can begin the application process by providing their name, business address, business telephone number, social security number, and, if applicable, federal tax identification number.

If the business is a corporation, then the application must disclose the names and addresses of all shareholders, officers, and directors. If an individual intends to form a partnership or limited liability partnership, then the application must include names and addresses of all partners. Information regarding any licenses a person may hold in other states, or that have been revoked or denied or suspended in other states must also be included. Individuals must also disclose any information relative to legal issues they have ever had paying their taxes or not paying their taxes.

Disclosing Felonies and/or Substance Control Related Misdemeanors

Individuals must also disclose if they have ever been indicted, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning any felony or controlled-substance-related misdemeanor, not including traffic violations.

They must also include the date, the name and location of the court, arresting agency, and prosecuting agency, the case caption, the docket number, the offense, the disposition, and the location and length of incarceration.

Final Application Steps

Tthe application will require business owners to include a description of the type of marijuana facility that they envision, the anticipated or actual number of employees, and projected or actual gross receipts. This should all be included in the business plan and can be copied from it to the application.

Finally, if the board determines that the applicant is qualified to receive a license under this act then the applicant must pay both the nonrefundable application fee required under the regulatory assessment established by the board for the first year of operation. If they meet all the requirements and are not excluded for any reason, then the board shall issue them a license.

If you have any questions about eligibility for a commercial Michigan marijuana license or need help applying for a license, speak with a Michigan medical marijuana attorney today.

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