What Michigan's Recreational Marijuana Rules Mean For Microbusinesses

The Emergency Rules issued by the Marijuana Regulatory Agency under the Michigan Regulation and Taxation of Marijuana Act (“MRTMA”) were released on July 3rd, 2019. These eagerly anticipated emergency regulations set forth the rules of the road that Michigan microbusinesses to comply with when operating a marijuana microbusiness facility.

One of the biggest takeaways is that each part of the microbusinesses’ operation will be regulated as if it was a licensed marijuana facility in the same way as the equivalent recreational licensee holder. To illustrate, the rules applicable to recreational marijuana retailers—also known as dispensaries—are also applicable to the marijuana retail portion of the microbusiness. In other words, there are no special exceptions or special treatment for microbusinesses. This is in contrast to the special treatment given to larger cultivation facilities, who are able to obtain an “excess marijuana grower license” that excepts them from the 5 Class C limitation found in the MRTMA statute.

The practical effect of trea musting microbusinesses like the other license types is that the costs to start up a microbusiness will be significant.  Because they have to comply with all requirements applicable to the licensed activities they are engaging in, compliance costs will include not just legal and licensing fees but also substantial property buildout costs.

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