DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
MARIJUANA REGULATORY AGENCY  
MARIHUANA LICENSES  
(By authority conferred on the executive director of the marijuana regulatory agency by section  
206 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27206, sections 7  
and 8 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957  
and 333.27958, and Executive Reorganization Order No. 2019-2, MCL 333.27001)  
R 420.1 Definitions.  
Rule 1. (1) As used in these rules:  
(a) “Acts” refers to the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101  
to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL  
333.27951 to 333.27967, when applicable.  
(b) “Agency” means the marijuana regulatory agency.  
(c) "Applicant" means a person who applies for a marihuana license, subject to paragraphs (i)  
and (ii) of this subdivision:  
(i) For purposes of this definition, an applicant includes a managerial employee of the applicant,  
a person holding a direct or indirect ownership interest of more than 10% in the applicant, and the  
following for each type of applicant:  
(A) For an individual or sole proprietorship: the proprietor and spouse.  
(B) For a partnership and limited liability partnership: all partners and their spouses.  
(C) For a limited partnership and limited liability limited partnership: all general and limited  
partners, not including a limited partner holding a direct or indirect ownership interest of 10% or  
less who does not exercise control over or participate in the management of the partnership, and  
their spouses.  
(D) For a limited liability company: all members and managers, not including a member  
holding a direct or indirect ownership interest of 10% or less who does not exercise control over  
or participate in the management of the company, and their spouses.  
(E) For a privately held corporation: all corporate officers or persons with equivalent titles and  
their spouses, all directors and their spouses, all stockholders, not including those holding a direct  
or indirect ownership interest of 10% or less, and their spouses.  
(F) For a publicly held corporation: all corporate officers or persons with equivalent titles and  
their spouses, all directors and their spouses, all stockholders, not including those holding a direct  
or indirect ownership interest of 10% or less, and their spouses.  
(G) For a multilevel ownership enterprise: any entity or person that receives or has the right to  
receive more than 10% of the gross or net profit from the enterprise during any full or partial  
calendar or fiscal year.  
(H) For a nonprofit corporation: all individuals and entities with membership or shareholder  
rights in accordance with the articles of incorporation or the bylaws and their spouses.  
(I) For a trust: trustees, any individual or body able to control and direct the affairs of the trust,  
and any beneficiary who receives or has the right to receive more than 10% of the gross or net  
profit of the trust during any full or partial calendar or fiscal year and their spouses.  
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(ii) For purposes of this definition, an applicant does not include:  
(A) A person who provides financing to an applicant or licensee under a bona fide financing  
agreement at a reasonable interest rate unless the person exercises control over or participates in  
the management of the marihuana business.  
(B) A franchisor who grants a franchise to an applicant, if the franchisor does not have the right  
to receive royalties based upon the sale of marihuana or marihuana-infused products by the  
applicant who is a franchisee. Nothing in this subrule shall be construed to preclude a franchisor  
from charging an applicant who is a franchisee a fixed fee. As used in this definition, the terms  
“franchise,” “franchisor,” and “franchisee” have the meanings set forth in section 2 of the franchise  
investment law, 1974 PA 269, MCL 445.1502.  
(C) A person receiving reasonable payment for rent on a fixed basis under a bona fide lease or  
rental obligation unless the person exercises control over or participates in the management of the  
marihuana business.  
(D) A person receiving reasonable payment under a licensing agreement or contract approved  
by the agency concerning the licensing of intellectual property including, but not limited to, brands  
and recipes.  
(E) A person who receives a percentage of profits as an employee if the employee does not  
meet the definition of “managerial employee” and the employee does not receive more than 10%  
of the gross or net profit from the licensee during any full or partial calendar or fiscal year.  
(F) A person who receives a bonus as an employee if the employee is on a fixed wage or salary  
and the bonus is not more than 25% of the employee’s pre-bonus annual compensation or if the  
bonus is based upon a written incentive/bonus program that is not out of the ordinary for the  
services rendered.  
(d) “Building” means a combination of materials forming a structure affording facility,  
establishment, or shelter for use or occupancy by individuals or property. Building includes a part  
or parts of the building and all equipment in the building. A building does not include a building  
incidental to the use for agricultural purposes of the land on which the building is located.  
(e) “Bureau of fire services” or “BFS” means the bureau of fire services in the department of  
licensing and regulatory affairs.  
(f) “Common ownership” means 2 or more state licenses or 2 or more equivalent licenses held  
by one person under the Michigan Regulation and Taxation of Marihuana Act.  
(g) “Complete application” means an application that includes all of the information required in  
R 420.2 to R 420.5 and R 420.7 to R 420.10.  
(h) “Department” means the department of licensing and regulatory affairs.  
(i) “Designated consumption establishment” means a commercial space that is licensed by the  
agency and authorized to permit adults 21 years of age and older to consume marihuana products  
at the location indicated on the state license issued under the Michigan Regulation and Taxation  
of Marihuana Act.  
(j) “Director” means the director of the department of licensing and regulatory affairs or his or  
her designee.  
(k) “Employee” means a person performing work or service for compensation. “Employee”  
does not include individuals providing trade or professional services who are not normally engaged  
in the operation of a marihuana business.  
(l) “Equivalent licenses” means any of the following held by a person:  
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(i) A marihuana grower license of any class issued under the Michigan Regulation and Taxation  
of Marihuana Act and a grower license, of any class, issued under the medical marihuana facilities  
licensing act.  
(ii) A marihuana processor license issued under the Michigan Regulation and Taxation of  
Marihuana Act and a processor license issued under the medical marihuana facilities licensing act.  
(iii) A marihuana retailer license issued under the Michigan Regulation and Taxation of  
Marihuana Act and a provisioning center license issued under the medical marihuana facilities  
licensing act.  
(iv) A marihuana secure transporter license issued under the Michigan Regulation and Taxation  
of Marihuana Act and a secure transporter license issued under the medical marihuana facilities  
licensing act.  
(v) A marihuana safety compliance facility license issued under the Michigan Regulation and  
Taxation of Marihuana Act and a safety compliance facility license issued under the medical  
marihuana facilities licensing act.  
(m) “Excess marihuana grower” means a license issued to a person holding 5 class C marihuana  
grower licenses and licensed to cultivate marihuana and sell or otherwise transfer marihuana to  
marihuana establishments.  
(n) “Immature plant” means a nonflowering marihuana plant that is no taller than 8 inches from  
the growing or cultivating medium and no wider than 8 inches produced from a cutting, clipping,  
tissue culture, or seedling that is in a growing or cultivating medium or in a growing or cultivating  
container.  
(o) “Limited access area” means a building, room, or other contiguous area of a marihuana  
business where marihuana is grown, cultivated, stored, weighed, packaged, sold, or processed for  
sale and that is under the control of the licensee.  
(p) “Managerial employee” means those employees who have the ability to control and direct  
the affairs of the marihuana business or have the ability to make policy concerning the marihuana  
business, or both.  
(q) “Marihuana business” means a marihuana facility under the medical marihuana facilities  
licensing act, or a marihuana establishment under the Michigan Regulation and Taxation of  
Marihuana Act, or both.  
(r) “Marihuana business location plan” means a marihuana facility plan under the medical  
marihuana facilities licensing act, or a marihuana establishment plan under the Michigan  
Regulation and Taxation of Marihuana Act, or both.  
(s) “Marihuana establishment” means a marihuana grower, marihuana safety compliance facility,  
marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter,  
or any other type of marihuana-related business licensed by the agency under the Michigan  
Regulation and Taxation of Marihuana Act.  
(t) “Marihuana event organizer” means a person licensed to apply for a temporary marihuana  
event license under these rules.  
(u) “Marihuana facility” means a location at which a licensee is licensed to operate under the  
medical marihuana facilities licensing act.  
(v) “Marihuana license” means a state operating license issued under the medical marihuana  
facilities licensing act, or a state license issued under the Michigan Regulation and Taxation of  
Marihuana Act, or both.  
(w) “Marihuana product” means marihuana or a marihuana-infused product, or both, as those  
terms are defined in the acts unless otherwise provided for in these rules.  
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(x) “Marihuana tracking act” means the marihuana tracking act, 2016 PA 282, MCL 333.27901  
to 333.27904.  
(y) “Marihuana transporter” means a secure transporter under the medical marihuana facilities  
licensing act or a marihuana secure transporter under the Michigan Regulation and Taxation of  
Marihuana Act, or both.  
(z) “Medical marihuana facilities licensing act” or “MMFLA” means the medical marihuana  
facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.  
(aa) “Michigan Medical Marihuana Act” means the Michigan Medical Marihuana Act, 2008 IL  
1, MCL 333.26421 to 333.26430.  
(bb) “Michigan Regulation and Taxation of Marihuana Act” or “MRTMA” means the Michigan  
Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.  
(cc) “Proposed marihuana business” means a proposed marihuana establishment under the  
Michigan Regulation and Taxation of Marihuana Act or a proposed marihuana facility under the  
medical marihuana facilities licensing act, or both.  
(dd) “Restricted access area” means a designated and secure area at a marihuana business where  
marihuana products are sold, possessed for sale, or displayed for sale.  
(ee) “These rules” means the administrative rules promulgated by the agency under the authority  
of the medical marihuana facilities licensing act, the marihuana tracking act, the Michigan  
Regulation and Taxation of Marihuana Act, and Executive Reorganization Order No. 2019-2,  
MCL 333.27001.  
(ff) “Same location” means separate marihuana licenses that are issued to multiple marihuana  
businesses that are authorized to operate at a single property but with separate business suites,  
partitions, or addresses.  
(gg) “Special license” means a state license as described under section 8 of the Michigan  
Regulation and Taxation of Marihuana Act, MCL 333.27958, and issued pursuant to section 9 of  
that act, MCL 333.27959.  
(hh) “Stacked license” means more than 1 marihuana license issued to a single licensee to operate  
as a class C grower as specified in each license at a marihuana business under the medical  
marihuana facilities licensing act, or under the Michigan Regulation and Taxation of Marihuana  
Act, or both.  
(ii) “Tag” or “RFID tag” means the unique identification number or Radio Frequency  
Identification (RFID) issued to a licensee by the statewide monitoring system for tracking,  
identifying, and verifying marihuana plants, marihuana products, and packages of marihuana  
product in the statewide monitoring system.  
(jj) “Temporary marihuana event license” means a state license held by a marihuana event  
organizer under the Michigan regulation and taxation of marihuana act, for an event where the  
onsite sale or consumption of marihuana products, or both, are authorized at the location indicated  
on the state license.  
(2) Terms defined in the acts have the same meanings when used in these rules unless otherwise  
indicated.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.2 Licensure; application; background investigation; consent to inspections,  
investigations, and audits; disclosure of confidential records; interest in other state license;  
fee; additional costs.  
Page 4  
Rule 2. (1) A person may apply to the agency for marihuana licenses and special licenses as  
provided in the acts and these rules.  
(2) The agency shall use information provided on the application as a basis to conduct a thorough  
background investigation on the applicant. The agency shall notify the applicant of a deficiency  
and provide instructions for submitting a complete application. The applicant shall timely respond  
to the notice of the deficiency in accordance with R. 420.5.  
(3) An applicant must provide written consent to investigations of compliance, regular  
inspections, examinations, searches, seizures, and auditing of books and records and to disclosure  
to the agency and its agents of otherwise confidential records, including tax records held by any  
federal, state, or local agency, or credit bureau or financial institution, while applying for or  
holding a marihuana license as authorized under the acts and these rules.  
(4) An applicant must certify that the applicant does not have any interest in any other marihuana  
license that is prohibited under the acts.  
(5) A nonrefundable application fee must be paid at the time of filing to defray the costs  
associated with the background investigation conducted by the agency. The agency shall set the  
amount of the application fee for each category and class of license by rule. If the costs of the  
investigation and processing the application exceed the application fee, the applicant shall pay the  
additional amount to the agency. All information, records, interviews, reports, statements,  
memoranda, or other data supplied to or used by the agency in the course of its review or  
investigation of an application for a marihuana license under the acts shall be disclosed only in  
accordance with the acts.  
History: 2020 AACS.  
R 420.3 Application procedure; requirements.  
Rule 3. (1) A person shall apply for a marihuana license on the form created by the agency and  
pay a nonrefundable application fee at the time the application is submitted. The applicant shall  
answer each question on the application, under oath, in its entirety. All attestations, disclosures,  
and information requested and required by the agency, the acts, and these rules must be submitted  
in the application. Failure to comply with these rules and the application requirements in the acts  
is grounds for denial of the application.  
(2) A person may submit a partial application under these rules on the condition that it is to  
prequalify to complete the remaining application requirements. This application has a pending  
status until all application requirements in these rules are completed, or the agency denies the  
partial or complete application. The agency shall not issue a marihuana license at this stage of the  
application process. The finding of prequalification status for a pending application is valid for 2  
years after the agency issues a notice of prequalification status. After 2 years has expired, the  
applicant may be required to submit a new application and pay a new nonrefundable application  
fee.  
(3) A partial application filed to obtain prequalification status may be administratively withdrawn  
if the application was filed and has been pending for more than 1 year. After a partial application  
has been administratively withdrawn, the applicant may be required to submit a new application  
and pay a new nonrefundable application fee.  
(4) The agency may request additional disclosures and documentation from an applicant. The  
applicant shall submit the information requested by the agency within 5 days pursuant to R. 420.5  
or the application may be denied.  
Page 5  
(5) The agency may administratively withdraw an application for a marihuana license that was  
submitted and has been pending for more than 1 year. After an application has been  
administratively withdrawn, the applicant may be required to submit a new application.  
(6) The agency may administratively withdraw an amendment to any application or marihuana  
license if the applicant or licensee fails to respond or submit documentation to cure all deficiencies  
within 30 days after notice of the deficiency.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.4 Application requirements; financial and criminal background.  
Rule 4. (1) Each applicant shall disclose the identity of any other person who controls, either  
directly or indirectly, the applicant, including, but not limited to, date of birth, government issued  
identification, and any other documents required by the agency.  
(2) Each applicant shall disclose the financial information required in the acts and these rules on  
a form created by the agency, which may include the following:  
(a) For an applicant seeking licensure under the MMFLA, required information may include, but  
is not limited to, all of the following:  
(i) Financial statements regarding all of the following:  
(A) A pecuniary interest.  
(B) Any deposit of value of the applicant or made directly or indirectly to the applicant, or both.  
(C) Financial accounts including, but not limited to, all of the following: funds, savings,  
checking, or other accounts including all applicable account information, such as the name of the  
financial institution, names of the account holders, account type, account balances, and a list of all  
loans types specified by the agency, amounts, securities, or lender information.  
(ii) Property ownership information, including, but not limited to, deeds, leases, rental  
agreements, real estate trusts, or purchase agreements.  
(iii) Tax information, including, but not limited to, W-2 and 1099 forms, and any other  
information required by the agency.  
(iv) Disclosure by the applicant of the identity of any other person who meets either of the  
following:  
(A) Controls, directly or indirectly, the applicant.  
(B) Is controlled, directly or indirectly, by the applicant or by a person who controls, directly  
or indirectly, the applicant.  
(v) The sources and total amount of the applicant’s capitalization to operate and maintain the  
proposed marihuana facility in compliance with R 420.11.  
(vi) A financial statement attested by a certified public accountant (CPA), on a form created by  
the agency, including a foreign-attested CPA statement, or its equivalent if applicable on  
capitalization pursuant to R 420.11.  
(vii) Information on the financial ability of the applicant to purchase and maintain adequate  
liability and casualty insurance in compliance with R 420.10.  
(viii) Any other documents, disclosures, or attestations created or requested by the agency that  
are not inconsistent with the acts or these rules.  
(b) For an applicant seeking licensure under the MRTMA all of the following may be required:  
(i) Tax information, including, but not limited to:  
(A) W-2 forms for the most recent tax year.  
(B) 1099 forms for the most recent tax year.  
Page 6  
(ii) Any other information relevant to the application for licensure required by the agency.  
(3) Each applicant shall disclose the identity of every person having a 2.5% or greater ownership  
interest in the applicant with respect to which the license is sought.  
(a) If the disclosed entity is a trust, the applicant shall disclose the names and addresses of the  
beneficiaries.  
(b) If the disclosed entity is a privately held corporation, the names and addresses of all  
shareholders, officers, and directors.  
(c) If the disclosed entity is a publicly held corporation, the names and addresses of all  
shareholders holding a direct or indirect interest of greater than 5%, officers, and directors.  
(d) If the disclosed entity is a partnership or limited liability partnership, the names and addresses  
of all partners.  
(e) If the disclosed entity is a limited partnership or limited liability limited partnership, the  
names of all partners, both general and limited.  
(f) If the disclosed entity is a limited liability company, the names and addresses of all members  
and managers.  
(4) Each applicant shall disclose the applicant’s business organizational documents filed with this  
state, any other state, local county, or foreign entity, if applicable, including proof of registration  
to do business in this state and certificate of good standing from this state, any other state, or  
foreign entity, if applicable.  
(5) Each applicant shall disclose to the agency criminal and financial background information  
and regulatory compliance as provided under the acts and these rules on a form created by the  
agency.  
(6) Each applicant shall provide written consent to a criminal and financial background  
investigation as authorized under the acts and these rules.  
(7) Each applicant shall provide an attestation acknowledging that sanctions may be imposed for  
violations on a licensee while licensed or after the marihuana license has expired, as provided in  
the acts and these rules.  
(8) Each applicant shall provide an attestation affirming a continuing duty to provide information  
requested by the agency and to cooperate in any investigation, inspection, inquiry, or hearing.  
(9) Each applicant shall disclose any noncompliance with any regulatory requirements, all legal  
judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated,  
pending, or concluded, against the applicant, that are related to business operations, including, but  
not limited to fraud, environmental, food safety, tobacco, alcohol, labor, employment, worker’s  
compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.  
(10) Each applicant shall disclose any application or issuance of any commercial license or  
certificate issued in this state or any other jurisdiction that meets the requirements under the acts  
and these rules.  
(11) Each applicant shall provide any other documents or attestations created by, or make any  
disclosures requested by, the agency that are not inconsistent with the acts or these rules.  
(12) An applicant shall submit in the application any information requested and required by the  
acts and these rules.  
(13) Each applicant seeking licensure under the MMFLA must submit one set of fingerprints to  
the department of state police in accordance with section 402 of the MMFLA, MCL 333.27402.  
(14) Each applicant seeking licensure under the MRTMA shall provide an attestation  
acknowledging that the applicant must have a physical structure for the marihuana establishment  
and pass the prelicensure inspection within 60 calendar days of submitting a complete application  
Page 7  
to the agency. Failure to pass the prelicensure inspection within 60 calendar days of submitting  
the complete application to the agency may result in the application begin denied in accordance  
with R 420.12.  
(15) An applicant shall provide an attestation signed by a representative of the department of  
treasury and the applicant, verifying that the applicant is not delinquent in the payment of sales,  
excise, or any other taxes.  
(16) An applicant seeking licensure under the MRTMA shall provide a social equity plan  
detailing a plan to promote and encourage participation in the marihuana industry by people from  
communities that have been disproportionately impacted by marihuana prohibition and  
enforcement and to positively impact those communities.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R. 420.5 Application requirements; complete application.  
Rule 5. (1) A complete application for a marihuana license must include all the information  
required in R 420.2 to R 420.4, R 420.7 to R 420.10, and all of the following:  
(a) A description of the type of marihuana business that includes all of the following:  
(i) An estimate or actual number of employees.  
(ii) A business plan.  
(iii) The proposed location of the marihuana business.  
(iv) A security plan, as required under the acts and these rules.  
(b) A copy of the proposed marihuana business location plan as required under R 420.8.  
(c) The disclosure of both of the following persons:  
(i) For an applicant seeking licensure under the MMFLA, persons that have a beneficial interest  
as required in section 303(1)(g) of the MMFLA, MCL 333.27303.  
(ii) For an applicant seeking licensure under the MRTMA, persons who have a direct or indirect  
ownership interest in the marihuana establishment.  
(d) For an applicant seeking licensure under the MMFLA, confirmation of municipal compliance  
on an attestation form provided by the agency that contains includes all of the following:  
(i) Written affirmation that the municipality has adopted an ordinance under section 205 of the  
MMFLA, MCL 333.27205, including, if applicable, a description of any limitations on the number  
of each type of marihuana facility.  
(ii) A description of any regulations within the municipality that apply to the proposed  
marihuana business.  
(iii) The date and signature of the clerk of the municipality or his or her designee on the  
attestation form attesting that the information stated in the document is correct.  
(iv) The date and signature of the applicant.  
(v) The name and address of the proposed marihuana business facility name and address.  
(vi) The license type of the proposed marihuana facility.  
(vii) Attestation that the applicant will report any changes that occur with municipal ordinances  
or zoning regulations that relate to the proposed marihuana facility, any municipal facility  
approvals, or any violations of a municipal or zoning regulation.  
(e) For an applicant seeking licensure under the MRTMA, confirmation of municipal compliance  
on an attestation form provided by the agency that includes all of the following:  
(i) The name and address of the proposed marihuana establishment.  
(ii) The license type or the proposed marihuana establishment.  
Page 8  
(iii) The municipality where the proposed marihuana establishment is located.  
(iv) The contact information for the municipality including the following at a minimum:  
(A) The name of the clerk of the municipality or his or her designee.  
(B) The telephone number of the clerk of the municipality or his or her designee.  
(C) The email address of the clerk of the municipality or his or her designee.  
(D) The mailing address of the clerk of the municipality or his or her designee.  
(v) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed  
marihuana establishment.  
(vi) Confirmation that the applicant is in compliance with any ordinance the municipality has  
adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.  
(vii) Attestation that the applicant will report any changes that occur with municipal ordinances  
or zoning regulations that relate to the proposed marihuana establishment, any municipal  
establishment approvals, or any violations of a municipal or zoning regulation.  
(viii) The date and signature of the applicant.  
(2) Each applicant shall provide any additional information and documents requested by the  
agency not inconsistent with the acts and these rules.  
(3) Each applicant shall provide any other documents, disclosures, or attestations created or  
requested by the agency that are not inconsistent with the acts and these rules.  
(4) If the agency identifies a deficiency in an application, the agency shall notify the applicant  
and the applicant shall submit the missing information or proof that the deficiency has been  
corrected to the agency within 5 days of the date the applicant received the deficiency notice.  
(5) The failure of an applicant to correct a deficiency within 5 days of notification by the agency  
may result in the denial of the application. An applicant denied under this subrule is not barred  
from reapplying by submitting a new application and application fee.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.6 State license under the Michigan regulation and taxation of marihuana act;  
issuance; qualifications; ineligibility.  
Rule 6. (1) The agency shall not issue a state license under the MRTMA until a complete  
application is submitted, the fees required under these rules are paid, and the agency determines  
that the applicant is qualified to receive a state license under the acts and these rules. An applicant  
under MRTMA must pay initial licensure fees within 10 calendar days of approval of the state  
license or within 90 calendar days of submitting a complete application, whichever date is first.  
Failure to pay the fees required under R 420.7 may be grounds for the denial of state license.  
(2) An applicant is ineligible to receive a state license if any of the following circumstances exist:  
(a) The applicant has a prior conviction that involved distribution of a controlled substance to a  
minor.  
(b) The applicant has knowingly submitted an application for a state license under the MRTMA  
that contains false information.  
(c) The applicant is an employee, advisor, or consultant of the agency involved in the  
implementation, administration, or enforcement of the MRTMA or these rules pursuant to section  
7 of the MRTMA, MCL 333.27957.  
(d) 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  
Page 9  
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 any of the following:  
(i) An elected officer of or employee of a federally recognized Indian tribe.  
(ii) An elected precinct delegate.  
(iii) The spouse of a person who applies for a state license unless the spouse’s position creates  
a conflict of interest or is within any of the following:  
(A) The marijuana regulatory agency.  
(B) A regulatory body of a governmental unit in this state, another state, or the federal  
government that makes decisions regarding adult-use marijuana.  
(e) The agency determines the municipality in which the applicant’s proposed marihuana  
establishment will operate has adopted an ordinance that prohibits marihuana establishments or  
that the proposed establishment is noncompliant with an ordinance consistent with section 6 of the  
MRTMA, MCL 333.27956.  
(f) The applicant will hold an ownership interest in both a marihuana safety compliance facility  
or in a marihuana secure transporter and in a marihuana grower, a marihuana processor, a  
marihuana retailer, or a marihuana microbusiness, or a class A marihuana microbusiness in  
violation of section 9 of the MRTMA, MCL 333.27959.  
(g) The applicant will hold an ownership interest in both a marihuana microbusiness or a class  
A marihuana microbusiness and in a marihuana grower, a marihuana processor, a marihuana  
retailer, a marihuana safety compliance facility, or a marihuana secure transporter, in violation of  
section 9 of the MRTMA, MCL 333.27959.  
(h) The applicant will hold an ownership interest in more than 5 marihuana growers or in more  
than 1 marihuana microbusiness or class A marihuana microbusiness, in violation of section 9 of  
the MRTMA, MCL 333.27959.  
(i) The applicant fails to meet other criteria established in these rules.  
(3) In determining whether to grant a state license to an applicant, the agency may also consider  
all of the following:  
(a) Whether the applicant or anyone meeting the definition of applicant has a pattern of  
convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana  
establishment is unlikely to be operated with honesty and integrity.  
(b) 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.  
(c) Whether the applicant has a history of noncompliance with any regulatory requirements, all  
legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether  
initiated, pending, or concluded, against the applicant, that are related to business operations,  
including, but not limited to, fraud, environmental, food safety, labor, employment, worker’s  
compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.  
(d) Whether the applicant meets other standards in rules applicable to the state license category.  
(4) The agency shall review all applications for state licenses and inform each applicant of the  
agency’s decision.  
(5) An applicant or licensee has a continuing duty to provide information requested by the agency  
and to cooperate in any investigation, inquiry, or hearing conducted by the agency.  
(6) A marihuana license is a revocable privilege granted by the agency and is not a property right.  
Granting a marihuana license does not create or vest any right, title, franchise, or other property  
Page 10  
interest. A licensee or any other person shall not lease, pledge, borrow, or loan money against a  
marihuana license.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.7 Application; fees; assessment.  
Rule 7. (1) At the beginning of each state fiscal year, the agency may increase the fees collected  
under the MRTMA by 10% in order to pay for implementation, administration, and enforcement  
of that act and these rules.  
(2) An applicant for a marihuana license shall submit an application that is accompanied by the  
nonrefundable application fee of $3,000.  
(3) If the costs of the investigation and processing the application exceed the application fee, the  
applicant shall pay the additional amount.  
(4) Additional fees for state licenses under MRTMA are listed in table 1:  
TABLE 1  
State License Type  
Initial  
Licensure  
and Renewal Fees  
$1,200  
$6,000  
Class A Marihuana Grower  
Class B Marihuana Grower  
Class C Marihuana Grower  
$24,000  
Designated Consumption Establishment $1,000  
Excess Marihuana Grower  
Marihuana Event Organizer  
Marihuana Microbusiness  
$24,000  
$1,000  
$8,300  
Class A Marihuana Microbusiness  
Marihuana Processor  
Marihuana Retailer  
Marihuana Safety Compliance Facility  
Marihuana Secure Transporter  
Temporary Marihuana Event  
Marihuana Educational Research  
$18,600  
$24,000  
$15,000  
$15,000  
$15,000  
See R 420.26  
N/A  
(5) The agency shall establish and publish annually the regulatory assessment for licensees under  
the MMFLA pursuant to section 603 of the MMFLA, MCL 333.27603.  
(6) An applicant shall pay the initial licensure fees or regulatory assessment, if applicable, on or  
before the date the licensee begins operating and the renewal fee annually thereafter, pursuant to  
these rules.  
(7) The agency shall not issue a marihuana license until a complete application is submitted, the  
fees required under these rules are paid, and the agency determines that the applicant is qualified  
to receive a marihuana license under the acts and these rules. An applicant under the MRTMA  
must pay initial licensure fees within 10 calendar days of approval of the marihuana license or  
within 90 calendar days of submitting a complete application, whichever date is first. An applicant  
under the MMFLA must pay initial licensure fees within 10 calendar days of approval of the  
Page 11  
marihuana license. An applicant must pay renewal fees upon submission of the application for  
renewal. Failure to pay the required fee may be grounds for the denial of a marihuana license in  
accordance with R 420.12.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.8 Marihuana business location plan.  
Rule 8. (1) An applicant shall submit a marihuana business location plan for the proposed  
marihuana business as required in these rules and upon request by the agency. Upon the request  
of the agency, an applicant or licensee may be required to submit a revised marihuana business  
location plan.  
(2) The marihuana business location plan must include, at a minimum, all of the following:  
(a) The type of proposed marihuana business, the location of the marihuana business, a  
description of the municipality where the marihuana business will be located, and any of the  
following, if applicable:  
(i) A statement that a combination of marihuana licenses will operate as separate marihuana  
businesses at the same location, as provided under these rules.  
(ii) A statement in the marihuana business location plan that the applicant has or intends to apply  
to stack a marihuana license at the proposed marihuana business as provided under these rules.  
(iii) For an applicant seeking licensure under the MRTMA, a statement that equivalent licenses  
will operate at the same location.  
(b) A diagram of the marihuana business that includes, at a minimum, all of the following:  
(i) The proposed marihuana business’s size and dimensions.  
(ii) Specifications of the marihuana business.  
(iii) Physical address.  
(iv) Location of common entryways, doorways, and passageways.  
(v) Public entries and exits.  
(vi) Limited access areas and restricted access areas.  
(vii) An indication of the distinct areas or structures for separate marihuana businesses at the  
same location as provided in these rules.  
(viii) Areas designated for contactless and limited contact transactions, if the marihuana  
business is a marihuana sales location.  
(c) A detailed floor plan and layout that includes, at a minimum, all of the following:  
(i) Dimensions of the marihuana business including interior and exterior rooms.  
(ii) Maximum storage capabilities.  
(iii) Number of rooms.  
(iv) Dividing structures.  
(v) Fire walls.  
(vi) Entrances and exits.  
(vii) Locations of hazardous material storage.  
(viii) Quantities of hazardous materials, such as chemical, flammable/combustible liquids and  
gases, and the expected daily consumption of the hazardous materials.  
(d) Means of egress, including, but not limited to, delivery and transfer points.  
(e) Construction details for structures and fire-rated construction for required walls.  
(f) Building structure information, including, but not limited to, new, pre-existing, freestanding,  
or fixed.  
Page 12  
(g) Building type information, including, but not limited to, commercial, warehouse, industrial,  
retail, converted property, house, mercantile building, pole barn, greenhouse, laboratory, or center.  
(h) Zoning classification and zoning information.  
(i) If the proposed marihuana business is in a location that contains multiple tenants and any  
applicable occupancy restrictions.  
(j) A proposed security plan that demonstrates the proposed marihuana business meets the  
security requirements specified in these rules.  
(k) Any other information required by the agency if not inconsistent with the acts and these rules.  
(3) Any changes or modifications to the marihuana business location plan under this rule must be  
reported to the agency and may require preapproval by the agency.  
(4) The agency may provide a copy of the marihuana business location plan to the BFS, local fire  
department, Michigan state police, local law enforcement, and building officials for use in review  
and planning.  
(5) The agency may reinspect the marihuana business to verify the plan at any time during the  
business’s hours of operation and may require that the plan be resubmitted upon renewal.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.9 Rescinded.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.10 Proof of financial responsibility; insurance.  
Rule 10. (1) Before a marihuana license is issued or renewed, the licensee or renewal applicant  
shall file a proof of financial responsibility for liability for bodily injury to lawful users resulting  
from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated  
marihuana-infused products on the form prescribed by the agency, for an amount not less than  
$100,000.00. If the proof required in this subrule is a bond, the bond must be in a format acceptable  
to the agency.  
(2) In addition to the requirements in subrule (1) of this rule, a marihuana transporter shall show  
proof of auto insurance, vehicle registration, and registration as a commercial motor vehicle, as  
applicable, for any vehicles used to transport marihuana product as required by the acts and these  
rules.  
(3) For an applicant seeking licensure for a marihuana event organizer license under the  
MRTMA, proof of financial responsibility for liability for bodily injury is not required. A  
marihuana event organizer licensee shall file a proof of financial responsibility for liability for  
bodily injury when applying for a temporary marihuana event license or proof that each marihuana  
microbusiness, class A marihuana microbusiness, and marihuana retailer participating in the  
temporary marihuana event has coverage for liability for bodily injury when applying for a  
temporary marihuana event license.  
(4) In addition to the proof of financial responsibility requirements contained in subrule (1) of  
this rule, a renewal applicant or licensee holding a license under the MMFLA shall also carry  
commercial general liability insurance covering premises liability for an amount not less than  
$100,000.00. An applicant shall provide proof of commercial general liability insurance covering  
Page 13  
the premises liability to the agency no later than 60 days after a state operating license is issued or  
renewed.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.11 Capitalization requirements; medical marihuana facilities licensing act.  
Rule 11. (1) An applicant for initial licensure under the medical marihuana facilities licensing act  
shall disclose the sources and total amount of capitalization to operate and maintain a proposed  
marihuana facility.  
(2) The total amounts of capitalization based on the type of marihuana facility specified in the  
application for a state operating license are as follows:  
(a) Grower - Class A: $150,000.00.  
(b) Grower - Class B: $300,000.00.  
(c) Grower - Class C: $500,000.00.  
(d) Processor: $300,000.00.  
(e) Provisioning Center: $300,000.00.  
(f) Secure Transporter: $200,000.00.  
(g) Safety Compliance Facility: $200,000.00.  
(3) An applicant under the MMFLA shall provide proof to the agency of the capitalization  
amounts specified in subrule (2)(a) to (g) of this rule from both of the following sources:  
(a) Not less than 25% is in liquid assets to cover the initial expenses of operating and maintaining  
the proposed marihuana facility, as specified in the application. As used in this subdivision, "liquid  
assets" include assets easily convertible to cash, including, but not limited to, cash, certificates of  
deposit, 401(k) plans, stocks, and bonds.  
(b) Proof of the remaining capitalization to cover the initial expenses of operating and  
maintaining the proposed marihuana facility may include, but is not limited to, additional liquid  
assets as described in subdivision (a) of this subrule or equity in real property, supplies, equipment,  
fixtures, or any other nonliquid asset.  
(4) The applicant shall provide proof that there is no lien or encumbrance, except for a mortgage  
encumbering the real property, on the asset provided as a source of capitalization. For purposes  
of this subrule, if the encumbrance is a mortgage on the real property then the applicant shall  
disclose the value of the equity of the real property less any mortgage.  
(5) The capitalization amounts and sources must be validated by Certified Public Accountant  
(CPA) attested financial statements. The applicant shall disclose any of the capitalization sources  
that are foreign and a foreign CPA or its equivalent shall attest to the validation, and a domestic  
CPA shall attest to that foreign validation.  
History: 2020 AACS.  
R 420.11a Prelicensure investigation; proposed marihuana business inspection.  
Rule 11a. (1) An applicant for a marihuana license shall submit to and pass a prelicensure physical  
inspection of a proposed marihuana business, prior to licensure, as determined by the agency.  
(2) The agency shall establish an inspection process to confirm that the applicants and proposed  
marihuana businesses meet the requirements of the acts and these rules.  
(3) The agency shall investigate an applicant pursuant to the acts and these rules.  
Page 14  
(4) The agency, through its investigators, agents, auditors, or the state police shall conduct  
inspections and examinations of an applicant and a proposed marihuana business pursuant to the  
acts and these rules.  
(5) An applicant shall submit to the agency proof of both of the following:  
(a) A certificate of use and occupancy as required pursuant to section 13 of the Stille-DeRossett-  
Hale single state construction code act, 1972 PA 230, MCL 125.1513, and these rules. If this  
certificate is not available, the agency may accept alternative documentation from the building  
authority. The requirement of this subrule is not applicable to temporary marihuana event  
applicants.  
(b) If applicable, a fire safety inspection as specified in these rules.  
History: 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.12 Denial of a marihuana license; additional reasons.  
Rule 12. (1) The agency may deny a license if an applicant fails to comply with the applicable act  
or these rules.  
(2) In addition to the reasons for denial in the acts, the agency may deny a marihuana license for  
the following reasons:  
(a) The applicant’s marihuana business location plan does not fully comply with the acts or these  
rules.  
(b) The applicant’s proposed marihuana business or marihuana business is substantially different  
from the marihuana business location plan pursuant to R 420.8 and these rules.  
(c) The agency is unable to access the proposed marihuana business for prelicensure agency  
inspection or the applicant denied the agency access to the proposed marihuana business.  
(d) The applicant made a material misrepresentation on the application.  
(e) The applicant failed to correct a deficiency within 5 days of notification by the agency in  
accordance with the acts and these rules.  
(f) The applicant failed to provide confirmation of municipal compliance as required under R  
420.5(1)(d) or (e).  
(g) The applicant’s proposed marihuana establishment is in a municipality that has adopted an  
ordinance prohibiting marihuana establishments or the proposed marihuana establishment does  
not comply with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.  
(h) The applicant is operating or was operating a proposed marihuana business without a  
marihuana license.  
(i) The applicant has knowingly submitted an application containing false information.  
(j) The applicant has failed to pay required fees pursuant to these rules.  
(k) The applicant has failed to comply with these rules and the application requirements pursuant  
to these rules.  
(l) The applicant has been delinquent with the payment of taxes required under federal, state, or  
local law for 1 or more years.  
(m) The applicant fails to provide notifications or reports to the agency pursuant to these rules.  
(n) The applicant or anyone meeting the definition of applicant has a pattern of convictions  
involving dishonesty, theft, or fraud that indicate the proposed marihuana business is unlikely to  
be operated with honesty and integrity.  
(o) For an applicant seeking licensure under the MRTMA, the applicant failed a prelicensure  
inspection within 60 days of submitting a complete application to the agency.  
Page 15  
(p) For an applicant seeking licensure under the MRTMA, the applicant or anyone meeting the  
definition of applicant has a conviction involving distribution of a controlled substance to a minor  
pursuant to section 8 of the MRTMA, MCL 333.27958.  
(q) For an applicant seeking licensure under the MRTMA, the applicant holds a state operating  
license under the MMFLA and has failed to file or is delinquent in the payment of the sales tax  
required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax  
required under section 601 of the MMFLA, MCL 333.27601.  
(r) For an applicant seeking licensure under the MRTMA, the applicant holds a state license and  
has failed to file or is delinquent in the payment of the sales tax required under the General Sales  
Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 13 of the  
MRTMA, MCL 333.27963.  
(s) The applicant failed to pass the prelicensure inspection required under R 420.11a.  
(t) The applicant or licensee has filed an amendment to the application for a marihuana license  
seeking to add an individual or entity to the application or license that is not eligible or suitable for  
licensure, or the amendment is not eligible for licensure as it fails to comply with the acts and these  
rules.  
(u) The applicant or licensee was previously required to file an annual financial statement under  
the MMFLA and these rules and failed to file the annual financial statement.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.13 Renewal of marihuana license.  
Rule 13. (1) A marihuana license is issued for a 1-year period and is renewable annually. A  
licensee shall apply to renew a marihuana license on a form established by the agency. The  
licensee shall pay the required fee upon submission of the application for renewal. The marihuana  
license may be renewed no more than 90 calendar days before the expiration of the marihuana  
license, if the licensee has submitted the renewal form required by the agency and, if applicable,  
the licensee has paid any additional background investigation charge assessed by the agency under  
these rules. The applicant shall include on the renewal form, a statement requesting renewal of  
the marihuana license and all of the following information:  
(a) To the extent that information has changed or not been previously reported, updated  
personal, business, and financial information, as the agency may require, related to the eligibility  
of the licensee to continue to hold the marihuana license for which renewal is requested under the  
acts and these rules. For a licensee seeking renewal under the MMFLA, required information may  
also be related to the business probity; financial ability and experience; and responsibility or means  
to operate or maintain a marihuana facility of the licensee and each person required to be qualified  
for renewal of the license under the MMFLA. To the extent that the information has changed or  
has not been previously reported, updated information on the marihuana business is required.  
(b) A statement under oath by the licensee that the information provided in the licensee’s  
annual renewal form is current, complete, true, and accurate, and that the licensee has fulfilled its  
obligation under the acts and these rules to notify the agency of any change in information provided  
in its original marihuana license application and subsequent annual renewal form or forms  
previously filed, if applicable.  
(c) For an applicant seeking renewal of a license under the MMFLA, confirmation of municipal  
compliance on an attestation form provided by the agency that includes all of the following:  
Page 16  
(i) A description of any violation of an ordinance or a zoning regulation adopted pursuant to  
section 205 of the MMFLA, MCL 333.27205 committed by the licensee, but only if the violation  
relates to activities licensed under the acts or these rules.  
(ii) Whether there has been a change to an ordinance or a zoning regulation adopted pursuant to  
section 205 of the MMFLA, MCL 333.27205since the marihuana license was issued to the licensee  
and a description of the change.  
(iii) The date and signature of the clerk of the municipality or his or her designee.  
(iv) The date and signature of the applicant.  
(v) The name and address of the marihuana facility.  
(vi) The license type of the marihuana facility.  
(d) For an applicant seeking renewal of a license under the MRTMA, confirmation of municipal  
compliance on an attestation form provided by the agency that includes all of the following:  
(i) A description of any violation, if applicable, of an ordinance or a zoning regulation consistent  
with section 6 of the MRTMA, MCL 333.27956, committed by the licensee, but only if the  
violation relates to activities licensed under the act or these rules.  
(ii) Whether there has been a change to an ordinance or a zoning regulation consistent with  
section 6 of the MRTMA, MCL 333.27956, since the marihuana license was issued to the licensee  
and a description of the change.  
(iii) The following information for the municipality where the marihuana establishment is  
located, including, at a minimum, all of the following:  
(A) The name and address of the marihuana establishment.  
(B) The license type of the marihuana establishment.  
(C) The municipality where the marihuana establishment is located.  
(D) The contact information for the municipality, including, at a minimum, all of the following:  
(I) The name of the clerk of the municipality or his or her designee.  
(II) The telephone number of the clerk of the municipality or his or her designee.  
(III) The email address of the clerk of the municipality or his or her designee.  
(IV) The mailing address of the clerk of the municipality or his or her designee.  
(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed  
marihuana establishment.  
(v) Confirmation that the applicant is in compliance with any ordinance the municipality has  
adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.  
(vi) Attestation that the applicant will report any changes that occur with municipal ordinances  
or zoning regulations that relate to the marihuana establishment, any municipal establishment  
approvals, or any violations of a municipal or zoning regulation.  
(vii) The date and signature of the applicant.  
(e) An attestation by the licensee that the licensee’s annual renewal form provides all information  
and documentation required by the agency to establish that the licensee is eligible, qualified, and  
suitable to have its marihuana license renewed and is ready and able to continue conducting its  
marihuana business in compliance with the acts and these rules throughout the new 1-year time  
period for which the license is to be renewed.  
(f) Other relevant information and documentation that the agency may require to determine the  
licensee’s eligibility to have its marihuana license renewed under the licensing standards of the  
acts and these rules.  
(2) Failure to comply with any of the provisions of the acts and these rules may result in the  
nonrenewal of a marihuana license. The agency shall not renew a marihuana license unless the  
Page 17  
agency determines, as part of the license renewal, that each person required by the acts and these  
rules to meet licensing standards is eligible, qualified, and suitable under the relevant licensing  
standards.  
(3) The licensee shall meet the requirements of the acts and any other renewal requirements set  
forth in these rules.  
(4) The agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the  
licensee fails to apply for renewal in accordance with section 402 of the MMFLA, MCL  
333.27402, as applicable, and this rule. In addition, the agency may refuse to renew a marihuana  
license and issue a notice of nonrenewal if the agency determines, after reviewing the licensee’s  
annual renewal form, that the marihuana license should not be renewed because the licensee’s  
annual renewal form does not provide the information and documentation required by the agency  
to determine that the licensee is eligible, qualified, and suitable to continue to be licensed and  
ready and able to continue conducting its marihuana business in compliance with the acts and these  
rules.  
(5) The agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the  
licensee has failed to submit an annual financial statement required under the acts and these rules  
for the marihuana license it is renewing or for a previously held marihuana license.  
(6) If a license renewal application for a license under the MMFLA is not submitted by the license  
expiration date, the license may be renewed within 60 days after its expiration date upon  
submission of the required application, payment of the required fees, and satisfaction of any  
renewal requirements. The licensee may continue to operate during the 60 calendar days after the  
license expiration date if the licensee submits the renewal application to the agency and complies  
with the other requirements for renewal.  
(7) The agency shall send a renewal notice to the last known address of a licensee on file with  
the agency. The failure of a licensee to notify the agency of a change of address does not extend  
the expiration date of a license and may result in disciplinary action.  
(8) A marihuana licensee who is served with a notice of nonrenewal may request a hearing  
pursuant to these rules.  
(9) If the licensee does not request a hearing in writing within 21 calendar days after service of  
the notice of nonrenewal, the notice of nonrenewal becomes the final order of the agency.  
(10) A person who has not applied for marihuana license renewal for any and all licenses that are  
due for renewal shall cease and desist operation and is subject to any sanctions or fines, or both,  
pursuant to the acts and these rules.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.14 Notification and reporting.  
Rule 14. (1) Applicants have a continuing duty to provide the agency with up-to-date contact  
information and shall notify the agency in writing of any changes to the mailing addresses, phone  
numbers, electronic mail addresses, and other contact information they provide the agency.  
(2) Applicants shall report to the agency any changes to the marihuana business operations that  
are required in the acts and these rules, as applicable.  
(3) Applicants shall report to the agency any proposed material changes to the marihuana business  
before making a material change. Material changes include, at a minimum, the following:  
(a) Change in owners, officers, members, or managers.  
(b) Change of processing machinery or equipment.  
Page 18  
(c) The addition or removal of persons named in the application or disclosed.  
(d) Change in entity name.  
(e) Any attempted transfer, sale, or conveyance of an interest in a marihuana license.  
(f) Any change or modification to the marihuana business before or after licensure that was not  
preinspected, inspected, or part of the marihuana business location plan or final inspection  
including, at a minimum, all of the following:  
(i) Operational or method changes requiring inspection under these rules.  
(ii) Additions or reductions in equipment or processes at a marihuana business.  
(iii) Increase or decrease in the size or capacity of the marihuana business.  
(iv) Alterations of ingress or egress.  
(v) Changes that impact security, fire safety, and building safety.  
(4) An applicant shall notify the agency within 3 business days of becoming aware of or within  
3 business days of when the applicant should have been aware of any of the following:  
(a) Criminal convictions, charges, or civil judgments against an applicant in this state or any  
other state, federal, or foreign jurisdiction.  
(b) Disciplinary action taken against an applicant by this state or any other state, federal, or  
foreign jurisdiction, including any pending action.  
(5) The applicant shall notify the agency within 10 calendar days of the initiation or conclusion  
of any new judgments, lawsuits, legal proceedings, charges, or government investigations, whether  
initiated, pending, or concluded, that involve the applicant.  
(6) The applicant shall notify the agency within 10 calendar days of receiving notification of an  
alleged violation of an ordinance or a zoning regulation adopted pursuant to section 205 of the  
MMFLA, MCL 333.27205, or section 6 of the MRTMA, MCL 333.27956, committed by the  
applicant, but only if the violation relates to activities licensed under the acts, the Michigan  
Medical Marihuana Act, and these rules.  
(7) The applicant shall notify the agency and the BFS within 1 business day following the  
occurrence of an unwanted fire.  
(8) The licensee shall notify the agency within 10 business days of the appointment of a court-  
appointed personal representative, guardian, conservator, receiver, or trustee of the licensee.  
(9) Failure to provide notifications or reports to the agency pursuant to this rule may result in  
sanctions or fines, or both.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.15 Notifications of diversion, theft, loss, or criminal activity.  
Rule 15. (1) Applicants shall notify the agency and local law enforcement authorities within 24  
hours of becoming aware of or within 24 hours of when the applicant should have been aware of  
the theft or loss of any marihuana product or criminal activity at the marihuana business.  
(2) Failure to notify as required under subrule (1) of this rule may result in sanctions or fines, or  
both.  
History: 2020 AACS.  
R 420.16 Inspection; investigation  
Page 19  
Rule 16. (1) The agency shall do all of the following with respect to inspections and investigations  
of applicants, licensees, proposed marihuana businesses, and marihuana business operations:  
(a) Oversee and conduct inspections through its investigators, agents, auditors, or the state police  
of proposed marihuana businesses and marihuana businesses to ensure compliance with the acts  
and these rules.  
(b) Inspect and examine marihuana businesses and proposed marihuana businesses.  
(c) Inspect, examine, and audit records of the licensee.  
(2) The agency may investigate individuals employed by proposed marihuana businesses and  
marihuana businesses.  
(3) As authorized by the acts, a licensee may not refuse the agency access to the marihuana  
business during the hours of operation. The agency may access the marihuana business without a  
warrant and without notice to the licensee during the marihuana business's hours of operation.  
(4) The agency may place an administrative hold on a marihuana product and order that no sales  
or transfers occur during an investigation for an alleged violation or violation of the acts or these  
rules.  
(5) The agency may inspect, examine, and audit relevant records of the licensee. If a licensee fails  
to cooperate with an investigation, the agency may impound, seize, assume physical control of, or  
summarily remove records from a proposed marihuana business or marihuana business as  
authorized under the acts and these rules.  
(6) The agency may eject or exclude, or authorize the ejection or exclusion of, an individual from  
a proposed marihuana business or marihuana business if that individual violates the acts, a final  
order, or these rules.  
(7) The agency may take any reasonable or appropriate action to enforce the acts and these rules.  
(8) This rule does not limit the application of any other remedies or sanctions that are available  
through local, state, and federal laws, the acts, and these rules.  
(9) As used in this rule, “record” means books, ledgers, documents, writings, photocopies,  
correspondence, electronic storage media, electronically stored records, money receptacles,  
equipment in which records are stored, including data or information in the statewide monitoring  
system, or any other document that is used for recording information.  
History: 2020 AACS.  
R 420.17 Stacked license.  
Rule 17. (1) A licensee holding a license as a grower under the medical marihuana facilities  
licensing act, or a marihuana grower under the Michigan regulation and taxation of marihuana act,  
or both, may apply to stack class C licenses at a marihuana business specified in the marihuana  
license application. The licensee shall pay a separate initial licensure fee or regulatory assessment,  
as applicable, for each marihuana license issued and stacked and may be subject to additional fees  
under these rules.  
(2) A licensee that has been issued stacked licenses is subject to all the requirements of the acts  
and these rules.  
History: 2020 AACS.  
R 420.18 Changes to licensed marihuana business.  
Page 20  
Rule 18. (1) Any change or modification to the marihuana business after licensure is governed  
by the standards and procedures set forth in these rules and any regulations adopted pursuant to  
the acts. Any material change or modification to the marihuana business must be approved by the  
agency before the change or modification is made.  
(2) Any change of a location of a marihuana business after licensure requires notification to the  
agency prior to the change of location, must be approved by the agency, requires a new marihuana  
license application under these rules, and may include, but is not limited to, all of the following:  
(a) Additional application fees.  
(b) Additional inspections by the agency or BFS.  
(c) Initial licensure fees or regulatory assessment, as applicable, or both.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.19 Communities disproportionately impacted by marihuana prohibition.  
Rule 19. (1) Pursuant to section 8 of the MRTMA, MCL 333.27958, the agency shall establish a  
plan that promotes and encourages participation in the marihuana industry by people from  
communities that have been disproportionately impacted by marihuana prohibition and  
enforcement and to positively impact those communities.  
(2) The agency shall publish all of the following information about the plan:  
(a) The criteria used to select communities that have been disproportionately impacted by  
marihuana prohibition and enforcement.  
(b) Based on the selection criteria, a list of the communities that have been disproportionately  
impacted by marihuana prohibition and enforcement.  
(c) The requirements persons in those communities must meet to utilize services and resources  
offered through the plan.  
(d) The services and resources that are available to those communities and qualifying persons  
residing in and planning to operate a marihuana establishment in those communities selected in  
subdivision (b) of this subrule.  
(e) Specific goals and objectives for the plan.  
(3) The agency shall collect data to measure its progress towards achieving the specific goals and  
objectives outlined in subrule (2)(e) of this rule.  
(4) The agency shall publish a list of services and resources offered through the plan, which must  
include, but not be limited to, all of the following:  
(a) Education and outreach to the communities and potential applicants from the community.  
(b) The waiver or reduction of fees for qualified applicants from the communities.  
(c) Increased assistance with the application process for applicants from these communities.  
(d) Coordination of communities’, applicants’, and licensees’ utilization of resources that will  
allow participation in the marihuana industry.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.20 Financial statements.  
Rule 20. (1) Each licensee under the MRTMA shall transmit to the agency financial statements  
of the licensee’s total operations. The financial statements shall be reviewed by a certified public  
accountant in a manner and form prescribed by the agency. The certified public accountant must  
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be licensed in this state under article 7 of the occupational code, 1980 PA 299, MCL 339.720 to  
339.736. The compensation for the certified public accountant must be paid directly by the licensee  
to the certified public accountant. The agency shall issue an advisory bulletin to instruct licensees  
on the time and manner in which to submit the financial statements. Financial statements must be  
prepared so they include all required information for each license held by the licensee.  
(2) A marihuana educational research licensee is not required to file an annual financial statement.  
PART 2. SPECIAL LICENSES UNDER THE MICHIGAN REGULATION AND TAXATION  
OF MARIHUANA ACT  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
PART 2. SPECIAL LICENSES UNDER THE MICHIGAN REGULATION AND  
TAXATION OF MARIHUANA ACT  
R 420.21 Special licenses; eligibility.  
Rule 21. (1) A person may apply to the agency for a special license as described under section 8  
of the MRTMA, MCL 333.27958, and issued pursuant to section 9 of the act, MCL 333.27959,  
and these rules. A person may apply to the agency for a special license in any of the following  
categories:  
(a) Designated consumption establishment license. A designated consumption establishment  
license is valid for 1 year.  
(b) Excess marihuana grower license. An excess marihuana grower license is valid for 1 year.  
(c) Marihuana event organizer license. A marihuana event organizer license is valid for 1 year.  
(d) Temporary marihuana event license. A temporary marihuana event license is valid for a  
minimum of 1 day and ends on the date specified on the state license.  
(e) Marihuana educational research license. A marihuana educational research license is valid  
for 1 year.  
(f) A class A marihuana microbusiness license. A class A marihuana microbusiness license is  
valid for 1 year.  
(2) An applicant shall meet the requirements of the MRTMA and these rules to be eligible for a  
special license.  
(3) A person who allows consumption of marihuana products on the premises of a non-residential  
location and charges a fee for entry, sells goods or services while individuals are consuming on  
the premises, or requires membership for entry shall acquire a designated consumption  
establishment or temporary marihuana event license.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.22 Designated consumption establishment license.  
Rule 22. (1) An applicant for a designated consumption establishment license is subject to and  
shall meet the requirements of the Michigan regulation and taxation of marihuana act and these  
rules.  
(2) A person may apply for a designated consumption establishment license on the form created  
by the agency accompanied by the nonrefundable application fee as prescribed in these rules. An  
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application for a designated consumption establishment license must be made under oath on a form  
provided by the agency. A complete application for a designated consumption establishment  
license must contain the information required in these rules and information regarding the  
designated consumption establishment including, but not limited to, all of the following:  
(a) A designated consumption establishment plan for the proposed consumption establishment.  
Upon the request of the agency, an applicant or licensee may be required to submit a revised  
designated consumption establishment plan. The plan must include a diagram of the designated  
consumption establishment including, but not limited to, all of the following:  
(i) The proposed establishment’s size and dimensions.  
(ii) Specifications of the designated consumption establishment.  
(iii) Physical address.  
(iv) Location of common entryways, doorways, or passageways.  
(v) Means of public entry or exit.  
(vi) An indication of the distinct areas or structures for separate marihuana establishments at the  
same location as provided in these rules.  
(b) A detailed floor plan and layout that includes all of the following:  
(i) Dimensions of the consumption establishment including interior and exterior rooms.  
(ii) Number of rooms.  
(iii) Dividing structures.  
(iv) Fire walls.  
(v) Entrances and exits.  
(vi) Locations of hazardous material storage, if applicable.  
(vii) Means of egress.  
(c) Construction details for structures and fire-rated construction for required walls.  
(d) Building structure information, including but not limited to, new, pre-existing, freestanding,  
or fixed.  
(e) Building type information, including, but not limited to, commercial, warehouse, industrial,  
retail, converted property, house, building, mercantile building, pole barn, greenhouse, laboratory,  
or center.  
(f) Zoning classification and zoning information.  
(g) If the proposed designated consumption establishment is in a location that contains multiple  
tenants, any applicable occupancy restrictions.  
(h) A business plan that includes a description of the proposed hours of operation.  
(i) Proof of possession of the premises where the proposed designated consumption  
establishment will be located and, if the premises are leased, written permission from the owner  
of the premises approving the applicant’s use of the designated consumption establishment for  
marihuana consumption.  
(j) A responsible operations plan that includes a detailed explanation of how employees will  
monitor and prevent over-intoxication, underage access to the designated consumption  
establishment, the illegal sale or distribution of marihuana or marihuana products within the  
consumption establishment, and any other potential criminal activity on the premises.  
(k) A documented employee training that addresses all components of the responsible operations  
plan.  
(l) A marihuana product destruction and waste management plan that meets the requirements of  
these rules, as applicable, for destroying and disposing of marihuana waste left at the marihuana  
establishment.  
Page 23  
(m) Any other information required by the agency if not inconsistent with the Michigan  
regulation and taxation of marihuana act and these rules.  
(3) The agency may provide a copy of the marihuana establishment plan to the BFS, local fire  
department, building officials, the Michigan state police, and local law enforcement for use in pre-  
incident review and planning.  
(4) An applicant shall pay the fees required under these rules.  
(5) An applicant is subject to the prelicensure investigation and proposed establishment  
inspection required under these rules.  
(6) An applicant is subject to the proof of financial responsibility and insurance requirements  
under these rules.  
(7) A designated consumption establishment shall have the following characteristics:  
(a) A smoke-free area for employees to monitor the marihuana consumption area.  
(b) A ventilation system that directs air from the marihuana consumption area to the outside of  
the building through a filtration system sufficient to remove visible smoke, consistent with all  
applicable building codes and ordinances, and adequate to eliminate odor at the property line, if  
consumption by inhalation is permitted.  
(c) A location physically separated from areas where smoking is prohibited and where smoke  
does not infiltrate into nonsmoking areas or buildings.  
(8) The agency may determine an applicant is ineligible or deny an application for the reasons  
specified in these rules, as applicable.  
History: 2020 AACS.  
R 420.23 Excess marihuana grower license.  
Rule 23. (1) An applicant for an excess marihuana grower license is subject to and shall meet the  
requirements of the MRTMA and these rules.  
(2) An excess marihuana grower license authorizes sale of marihuana, other than seeds, seedlings,  
tissue cultures, immature plants, and cuttings, to a marihuana processor or marihuana retailer.  
(3) An excess marihuana grower license may be issued only to a person who holds 5 stacked class  
C marihuana grower licenses issued by the agency under the MRTMA and at least 2 grower class  
C licenses issued by the agency under the MMFLA.  
(4) A person may apply for an excess marihuana grower license on the form created by the agency  
accompanied by the nonrefundable application fee as prescribed in these rules. An application for  
an excess marihuana grower license must be made under oath on a form provided by the agency  
and must contain information as prescribed by the agency.  
(5) An applicant for an excess marihuana grower license shall pay applicable fees required under  
these rules.  
(6) The agency may determine an applicant is ineligible or deny an application for the reasons  
specified in these rules.  
(7) The agency shall set the total marihuana plant count for an excess marihuana grower license  
in increments of 2,000 marihuana plants not in excess of the total marihuana plants permitted under  
grower class C licenses held under the MMFLA.  
(8) Payment of the initial licensure fee must be received prior to issuance of the state license. In  
determining the initial licensure fee for an excess marihuana grower license, the initial licensure  
fee of a class C marihuana grower license is assessed on the excess marihuana grower license at  
every 2,000 marihuana plant increment authorized by the state license.  
Page 24  
(9) An excess marihuana grower licensee is subject to all requirements for a marihuana grower  
as provided for in the MRTMA and these rules, as applicable.  
(10) An applicant shall pay the initial licensure fee for an excess grower license within 10  
calendar days of approval or within 90 calendar days of submitting a complete application,  
whichever date is first.  
(11) An applicant for an excess grower license is not required to pay the application fee under  
these rules.  
History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.  
R 420.24 Marihuana event organizer license.  
Rule 24. (1) A marihuana event organizer is not authorized to engage in the operations of a  
marihuana establishment licensee without first obtaining the appropriate licenses.  
(2) A person may apply for a marihuana event organizer license on the form created by the agency  
accompanied by the application fee as prescribed in these rules. An application for a marihuana  
event organizer license shall be made under oath on a form provided by the agency and shall  
contain information as prescribed by the agency.  
(3) An applicant for a marihuana event organizer license is subject to and shall meet the  
requirements of these rules, as applicable.  
(4) An applicant for a marihuana event organizer license shall pay the nonrefundable application  
fee and any other fees required under these rules.  
(5) The agency may determine an applicant is ineligible or deny an application for the reasons  
specified in these rules, as applicable.  
History: 2020 AACS.  
R 420.25 Temporary marihuana event license; application; operations.  
Rule 25. (1) A temporary marihuana event license may be issued only to a person who holds a  
marihuana event organizer license issued by the agency.  
(2) Violations of the requirements applicable to temporary marihuana events may result in  
disciplinary action against the marihuana event organizer license or any other licenses held by a  
licensee participating in the temporary marihuana event and responsible for a violation of the  
MRTMA or these rules.  
(3) A temporary marihuana event license may be issued only for a single day or up to 7  
consecutive days. A temporary marihuana event license may not be issued for more than 7 days.  
(4) An application for a temporary marihuana event license must be submitted to the agency not  
less than 90 calendar days before the first day of the temporary marihuana event.  
(5) A temporary marihuana event may be held only at a venue expressly approved by a  
municipality for the purpose of holding a temporary marihuana event.  
(6) A temporary marihuana event may be held only if the applicant is expressly approved by a  
municipality to hold a temporary marihuana event where sales to, or consumption of marihuana  
by, persons 21 years of age or older will occur.  
(7) An application for a temporary marihuana event license must be made under oath on a form  
provided by the agency and must contain information as prescribed by the agency, including, at a  
minimum, all of the following:  
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(a) The name of the applicant. Applicants who are individuals shall provide both the first and  
last name of the individual. Applicants that are business entities shall provide the legal business  
name of the applicant.  
(b) The marihuana event organizer license number and license number of any other marihuana  
establishment license held by the applicant.  
(c) The address of the location where the temporary marihuana event will be held.  
(d) The name of the temporary marihuana event.  
(e) A diagram of the physical layout of the temporary marihuana event that clearly indicates each  
of the following:  
(i) Where the temporary marihuana event will take place on the location grounds.  
(ii) All entrances and exits that will be used by participants during the event.  
(iii) All marihuana consumption areas.  
(iv) All marihuana retail areas where marihuana products will be sold.  
(v) All areas where marihuana waste will be stored.  
(vi) All areas where marihuana products will be stored.  
(vii) The specific location of each marihuana retailer or marihuana microbusiness or class A  
marihuana microbusiness licensee who will be participating in the event. Each marihuana retailer  
or marihuana microbusiness or class A marihuana microbusiness licensee participating in the event  
must be identified with an assigned temporary marihuana event location number.  
(f) The dates and hours of operation for the proposed temporary marihuana event. A temporary  
marihuana event license is required for any date in which the applicant engages in onsite marihuana  
product sales or allows onsite marihuana product consumption.  
(g) Contact information for the designated primary contact person for the temporary marihuana  
event license, including the individual’s name, title, address, phone number, and email address.  
(h) Contact information for the designated contact person or persons who must be onsite at the  
event, and reachable by telephone at all times that the event is occurring.  
(i) For an applicant seeking licensure for a temporary marihuana event, confirmation of  
municipal compliance on an attestation form provided by the agency that includes all of the  
following:  
(i) The name and address of the proposed temporary marihuana event.  
(ii) The municipality where the proposed temporary marihuana event is located.  
(iii) The contact information for the municipality including, at a minimum, all of the following:  
(A) The name of the clerk of the municipality or his or her designee.  
(B) The telephone number of the clerk of the municipality or his or her designee.  
(C) The email address of the clerk of the municipality or his or her designee.  
(D) The mailing address of the clerk of the municipality or his or her designee.  
(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed  
temporary marihuana event.  
(v) Confirmation that the applicant is in compliance with any ordinance the municipality has  
adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.  
(vi) Attestation that the applicant will report any changes that occur with municipal ordinances  
or zoning regulations that relate to the proposed temporary marihuana event, any municipal  
approvals, or any violations of a municipal or zoning regulation.  
(vii) Attestation by the applicant describing if the applicant will engage in onsite marihuana  
sales to, and allow onsite consumption by, person 21 years of age or older at the temporary  
marihuana event.  
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