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What will the costs be for a state operating license?

What will the costs be for a state operating license?

The initial costs of a license at the state level include the application fee and the regulatory assessment fee. Additional costs at the state level are authorized under the Medical Marihuana Facilities Licensing Act (MMFLA) and may be required.

Any municipality fee is not determined or collected by CRA. Applicants will need to find out this information from their local municipality.

Section 401(5) of the Medical Marihuana Facilities Licensing Act (MMFLA) requires the setting of application fee amounts for each category and class of license by rule.

  1. Application Fee: The application fee is non-refundable and offsets the cost for LARA, the Michigan State Police (MSP), and/or contract costs for investigative services for conducting the background investigation of those applying for licenses.

The nonrefundable application fee, which must be submitted before an application will be processed, will be $3,000.

  1. Annual Regulatory Assessment: The regulatory assessment is due prior to the issuance of each license and may vary depending on the number of licenses anticipated to be issued. The regulatory assessment does not apply to safety compliance facilities.

This assessment offsets operational costs and other statutory mandates including LARA’s costs to implement the act. It also offsets the cost of medical-marijuana-related services provided to LARA by the Michigan Attorney General’s office, MSP, and the Dept. of Treasury. By statute, the assessment must also provide $500,000 annually to LARA for licensing substance abuse disorder programs in addition to five percent of the other state departments’ costs to the Michigan Department of Health and Human Services for substance abuse-related expenses.

The regulatory assessment is set annually by bulletin and can be found on this page.

  1. Additional Costs: If required, the applicant may need to pay additional costs. The MMFLA authorizes the following:
    1. Late renewal fees as established by rule (Section 402(11))
    2. Actual costs of investigation and processing that exceed the application fee paid by an applicant (Section 401(5))