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Litigation Blog.
The seasoned lawyers and litigators at The Rubinstein Law Firm are here to share their insights with you.

Thinking about applying for a recreational marijuana business license?

Michigan has officially entered a new era. As of Nov. 1, 2019, residents can apply for recreational marijuana business licenses, opening the door for pot-related clubs, cannabis events and even microbusinesses.

Not that it will be simple. There are a number of different licenses available, each with its own rules and regulations. Here’s a brief overview for anyone interested in getting into the legal recreational marijuana business.

From small growers to event organizers

According to a report from the Detroit Free Press, the new recreational marijuana rules introduce six new licenses that do not require someone to already possess a medical marijuana license. This means any interested entrepreneur can apply. These six licenses include:

  • Class A Grower ($4,000) – Allows the holder to grow up to 100 plants, which can be sold to retailers and processors.
  • Marijuana microbusiness ($8,000) – The holder can grow up to 150 plants, which can then be sold to individuals 21 and up.
  • Designated consumption establishment ($1,000) – This license lets someone open a club where people can consume marijuana.
  • Marijuana event organizer ($1,000) – For those who want to hold a pot-related event, such as a competition or meeting.
  • Temporary marijuana event ($500 per day minimum) – This lets an event organizer include the sale or consumption of marijuana products during its run. You also need an event organizer license.
  • Marijuana testing facility ($25,000) – Allows for the testing of recreational marijuana.

Establishing and operating a business

Applying for a recreational marijuana-related business license isn’t necessarily simple. There are a number of steps you need to take if you’re interested, with instruction booklets and checklists to help guide you. The state’s regulatory agency will then prequalify certain applicants before fully vetting the proposal, including:

  • Detailed plans and specifications
  • Proof of financial responsibility
  • Any applicable local rules
  • Employee and worker info
  • If there is a physical space in the plan, a fire inspection

If the regulatory agency doesn’t like what it sees, it can reject your application. That’s why it’s important to go into the process as prepared as possible, with full consideration for any needed contracts, commercial leases, permits and legal concerns.

You wouldn’t want to put the time and energy into applying for a recreational marijuana business license, only to be left high and dry.