What may potentially prevent an applicant from getting approved for a state operating license?

An applicant is ineligible to receive a state operating license if any of the following circumstances exist:

  • The applicant has been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States within the past 10 years or has been convicted of a controlled substance-related felony within the past 10 years.
  • Within the past 5 years the applicant has been convicted of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state or been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state.
  • The applicant has knowingly submitted an application for a license under this act that contains false information.
  • The applicant fails to demonstrate the applicant's ability to maintain adequate premises liability and casualty insurance for its proposed marihuana facility.
  • The applicant holds an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government; or is employed by a governmental unit of this state. This subdivision does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.
  • The Agency determines that the applicant is not in compliance with section 205(1).
  • The applicant fails to meet other criteria established by rule.


In determining whether to grant a license to an applicant, the Agency may also consider all of the following:

  • The integrity, moral character, and reputation; personal and business probity; financial ability and experience; and responsibility or means to operate or maintain a marihuana facility of the applicant and of any other person that meets either of the following:
    • Controls, directly or indirectly, the applicant.
    • Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.
  • The financial ability of the applicant to purchase and maintain adequate liability and casualty insurance.
  • The sources and total amount of the applicant's capitalization to operate and maintain the proposed marihuana facility.
  • Whether the applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning, or had expunged any relevant criminal offense under the laws of any jurisdiction, either felony or misdemeanor, not including traffic violations, regardless of whether the offense has been expunged, pardoned, or reversed on appeal or otherwise.
  • Whether the applicant has filed, or had filed against it, a proceeding for bankruptcy within the past 7 years.
  • Whether the applicant has been served with a complaint or other notice filed with any public body regarding payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.
  • Whether the applicant has a history of noncompliance with any regulatory requirements in this state or any other jurisdiction.
  • Whether at the time of application the applicant is a defendant in litigation involving its business practices.
  • Whether the applicant meets other standards in rules applicable to the license category.


Please see Section 402 of the MMFLA.