After a seven-year struggle debating how to regulate the industry, Michigan began accepting medical marijuana business license applications this December.  The five-tier regulatory system is still being developed, but the Michigan Medical Marijuana Licensing Board is expecting to award licenses as early as the first quarter of 2018.  Applications are 48 pages and cost $6,000 to apply.

There are two options for applicants: pre-qualification or license qualification.  Pre-qualification allows businesses to apply before receiving approval from the community in which they want to be located, or if a location hasn’t been chosen. License qualification includes all information, including location and approval from a community with an ordinance allowing medical marijuana businesses.

Until more permanent rules are finalized, a series of 51 emergency rules regulating topics such as advertising, security, and capital requirements will be in effect for at least 6 months.

  • Licensees will need capitalization from $150,000 to $500,000, depending on business type.  Twenty five percent of the capital must be in liquid assets, such as cash, inventory, or investments; and no more than 15 ounces of usable marijuana or 72 plants may be used to meet capital requirements.
  • Businesses must notify the Department of Licensing and Regulatory Affairs (LARA), state police, and local law enforcement within 24 hours of any theft.
  • Growers, processors and provisioning centers can operate out of the same location if municipality allows it and if there are “distinct and identifiable areas” with separate entrances and exits. Video surveillance and visitor logs are also required.
  • Advertising marijuana products is prohibited if publicly visible from any streets, sidewalks, parks or other public places.
  • Individuals violating any rules can be fined $5,000 and businesses face whichever is greater: a $10,000 fine or an amount equaling daily gross receipts.

Already, over 265,000 patients have registered within Michigan to grow or obtain medical marijuana from the 42,000 registered caregivers.  As of now, caregivers can only supply a limited number of people, however with these new laws, more businesses growing, processing, selling, transporting, and testing marijuana are to be expected.

If you are one of the many entrepreneurs getting into the cannabis business you’ll also need to obtain the appropriate insurance coverage. For assistance finding the right coverage for your unique situation feel free to reach out to our team here at

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