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Michigan's New Emergency Rules Require Unlicensed Operation of Medical Marihuana Facilities to End on October 31, 2018

Media Contact: LARA Communications 517-373-9280

The Dept. of Licensing and Regulatory Affairs (LARA) has issued new emergency administrative rules to continue the implementation of the Medical Marihuana Facilities Licensing Act (MMFLA). These rules will ensure:

  • Continued access for medical marihuana patients

  • The integrity of the marihuana facilities licensing process

  • A necessary transition to state-licensed medical marihuana safety standards

Under the new rules, proposed medical marihuana facilities that would otherwise require a state operating license under the MMFLA may continue to operate with local approval until October 31, 2018 without impacting the applicant’s eligibility for licensure.

These emergency rules, while in effect, supersede:

  • Rule 19 of the 5/30/18 Emergency Rules

  • The entirety of the 9/11/18 Emergency Rules

Under these new emergency rules, an applicant that has been denied licensure – even if that denial is subject to appeal – or has not been issued a state operating license by October 31, 2018, must cease and desist any temporary operation. Any temporary operation after October 31, 2018 is considered unlicensed activity and may result in a referral to law enforcement, the Michigan State Police and/or the Department of Attorney General.

Applicants who have been temporarily operating with local authorization – and have been issued a state operating license by October 31, 2018 – must do the following within a 30-calendar-day transition period beginning the day a state operating license is received:

  • Record, tag, and/or package all marihuana product in the licensee’s possession in accordance with the statewide monitoring system.

  • If licensed as a grower or processor, comply with all testing requirements as prescribed by the MMFLA and the 5/30/18 Emergency Rules prior to transferring marihuana product.

  • If licensed as a provisioning center, obtain a signed written acknowledgement from caregivers/patients consenting to the sale or transfer of marihuana product. Prior to sale or transfer, verify the patient/caregiver has a valid driver license or government-issued identification card, holds a valid registry identification card, and is not over the purchasing limits as prescribed in Rule 41 of the 5/30/18 Emergency Rules.

Under these new emergency rules, after the 30-calendar-day period has elapsed, any marihuana product that was not acquired in compliance with the MMFLA and the 5/30/18 Emergency Rules – from a licensed marihuana facility – must be destroyed in accordance with Rule 36 of the 5/30/18 Emergency Rules.

All temporary operators should consider transition plans to licensure and the impact they may have on their current business operation. Temporary operators who have not yet filed the facility portion of their application are almost certainly not going to be presented to the Medical Marihuana Licensing Board at the meeting on October 18, 2018.

At any time during this 30-calendar-day period and thereafter, a marihuana facility is subject to an inspection by the department, through its investigators, agents, auditors, or the state police. These rules are set to expire November 30, 2018.

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