Michigan’s Marijuana Regulatory Company Introduces Tier-Primarily based Price System


Regulators in Michigan introduced on Thursday that license charges for authorized medical marijuana companies within the state might be transitioning to a tier-based system starting on October 1. Underneath the plan, most companies would see a discount in charges or no change, though some corporations will find yourself paying extra.

Andrew Brisbo, the director of the Marijuana Regulatory Company, mentioned that medical marijuana corporations will now pay license charges based mostly on their measurement.

“We wish to make the charges fairly associated to the scale of the operation, so companies are paying an equitable share,” mentioned Brisbo.

Underneath the rules at the moment in place, small cultivation operations can apply for a Class A license, which carries a payment of $10,000 as soon as the grower has been authorized by the state. Different medical marijuana companies pay $66,000, up from the unique $48,000 payment that went into impact in July 2018. Hashish testing labs will not be required to pay a license payment.

Underneath the brand new tiered system that goes into impact on October 1, the Class A growers license payment of $10,000 won’t change. Different companies can pay charges based mostly on a three-tier system. New licensees can pay the middle-tier payment when they’re initially authorized by the state.

Class B growers can pay license charges of $24,000, $30,000, or $36,000 based mostly the scale of the operation. Class C growers and processors can pay $45,000, $56,000, or $67,000. Provisioning facilities (dispensaries) and safe transporters can pay $36,000, $44,000, or $52,000.

Brisbo mentioned that the brand new charges had been set to cowl the prices of regulating the state’s medical marijuana trade.

“We attempt to set the charges merely to offset the charges of our company and the opposite prices in-built from the MMFLA (Medical Marihuana Amenities Licensing Act),” Brisbo mentioned.

Leisure Pot License Charges Decrease

State regulators have additionally launched the license charges for companies to take part in Michigan’s authorized leisure pot market, which launches later this 12 months. These license charges will truly be decrease than the charges for medical marijuana companies. For instance, medical marijuana provisioning facilities can pay $36,000 to $52,000 to resume their license whereas an analogous license for a leisure cannabis store will price $20,000 to $30,000 to resume.

Brisbo mentioned that the discrepancy in charges for leisure cannabis and medical marijuana companies is because of state guidelines that require some medical marijuana licensing charges to be diverted to exterior packages. The funds go to the state well being division to help substance abuse packages, to the Michigan State Police for normal area sobriety testing and police coaching, and to the Division of Licensing and Regulatory Affairs for licensing substance use dysfunction packages.

The Marijuana Regulatory Authority will start accepting license functions for leisure cannabis companies on November 1.


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