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.

Page 1

Courtesy of Michigan Administrative Rules

(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:

Page 2

Courtesy of Michigan Administrative Rules

(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.

Page 3

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

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

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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

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

Page 21

Courtesy of Michigan Administrative Rules

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

Page 22

Courtesy of Michigan Administrative Rules

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

Courtesy of Michigan Administrative Rules

(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

Courtesy of Michigan Administrative Rules

(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:

Page 25

Courtesy of Michigan Administrative Rules

(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.

Page 26

Courtesy of Michigan Administrative Rules

(viii) The date and signature of the applicant.

(j) A list of all licensees and employees who will be providing onsite sales of marihuana products

at the temporary marihuana event. If the list of licensees and employees participating in the

temporary marihuana event changes after the application is submitted or after the temporary

marihuana event license is issued, the applicant shall submit an updated list and an updated

diagram to the agency not less than 72 hours before the event. Licensees not on the list submitted

to the agency may not participate in the temporary marihuana event.

(k) 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.

(8) An applicant for a temporary marihuana event shall pay all required fees before the agency

issues a temporary marihuana event license.

(9) The licensed marihuana event organizer shall hire or contract for licensed security personnel

to provide security services at the licensed temporary marihuana event. All security personnel

hired or contracted for by the licensee shall be at least 21 years of age, and be present on the

licensed event premises at all times marihuana products are available for sale or marihuana

consumption is allowed on the licensed event premises. The security personnel shall not engage in

the consumption of marihuana products before or during the event.

(10) A licensed marihuana event organizer shall maintain a clearly legible sign, not less than 7

by 11 inches in size reading, “No Persons Under 21 Allowed” at or near each public entrance to

any area where the sale or consumption of marihuana products is allowed. The lettering of the sign

shall be not less than 1 inch in height.

(11) The marihuana event organizer licensee shall ensure that access to the event is restricted to

persons 21 years of age or older and ensure that marihuana sales or consumption is not visible

from any public place or non-age-restricted area.

(12) The marihuana event organizer licensee, who holds the temporary marihuana event license,

is responsible for ensuring that all rules and requirements for the onsite consumption of marihuana

products are followed.

(13) The marihuana event organizer licensee shall ensure that all marihuana waste generated at a

temporary marihuana event is collected and disposed of in accordance with the requirements of

these rules, as applicable.

(14) A licensed marihuana event organizer and all other licensees participating in a temporary

marihuana event are required to comply with all other applicable requirements in the MRTMA

and these rules and any municipal ordinances.

(15) The agency may require the marihuana event organizer and all participants to cease

operations without delay if in the opinion of the agency or law enforcement it is necessary to

protect the immediate public health and safety of the people of this state. Upon notification from

the agency that the event is to cease operations, the marihuana event organizer shall immediately

stop the event and all participants must be removed from the premises within the time frame

provided by the agency.

(16) Upon notification from the agency, the marihuana event organizer shall immediately expel

from the event any person selling marihuana products without a marihuana retailer, marihuana

microbusiness, or class A marihuana microbusiness license issued by the agency. The marihuana

event organizer or his or her representative shall remain with the person being expelled from the

premises at all times until he or she vacates the premises. If the person does not vacate the premises,

Page 27

Courtesy of Michigan Administrative Rules

the agency may inform the marihuana event organizer that the event must cease operations. Upon

notification from the agency that the event is to cease operations, the marihuana event organizer

shall immediately stop the event and all participants must be removed from the premises within

the time frame provided by the agency.

History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.

R 420.26 Temporary marihuana event fee.

Rule 26. (1) Each marihuana event organizer licensed to hold a temporary marihuana event in

this state shall pay an initial licensure fee that consists of both of the following:

(a) For temporary marihuana events that do not include the sale of marihuana products, a $500.00

fee for each day of the scheduled event to cover the agency’s enforcement and compliance costs.

(b) For temporary marihuana events that include the sale of marihuana products:

(i) A $500.00 fee for each licensee authorized to sell marihuana product at the event to cover

the agency’s enforcement and compliance costs.

(ii) A $500.00 fee for each day of the temporary marihuana event to cover the agency’s

enforcement and compliance costs.

(2) If a licensee scheduled to attend an event withdraws from the event prior to the first day of

the event, the marihuana event organizer may request a refund for that portion of the fees paid to

the agency to cover the enforcement and compliance costs for that licensee.

(3) A marihuana event organizer applicant is not required to pay an application fee.

History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.

R 420.27 Temporary marihuana event sales.

Rule 27. (1) A marihuana event organizer licensee shall ensure that access to the area where

marihuana sales are allowed is restricted to persons 21 years of age or older.

(2) Only persons 21 years of age or older may purchase and consume marihuana products at a

temporary marihuana event. Prior to selling marihuana products to a customer, the licensee making

the sale shall confirm, using valid identification as specified in the MRTMA and these rules, the

age and identity of the customer.

(3) All sales of marihuana products at a temporary marihuana event shall occur in a retail area as

designated in the premises diagram required in these rules.

(4) Each sale at a temporary marihuana event must be performed by a licensed marihuana retailer,

a marihuana microbusiness, or a class A marihuana microbusiness that is authorized to sell

marihuana products to customers. The marihuana event organizer may also sell marihuana

products at the temporary marihuana event if the marihuana event organizer holds a separate state

license as a marihuana retailer, a marihuana microbusiness, or a class A marihuana microbusiness.

(5) Licensed marihuana retailers, marihuana microbusinesses, or class A marihuana

microbusinesses shall conduct sales activities only within their specifically assigned area,

identified in the diagram of the physical layout of the temporary marihuana event.

(6) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary

marihuana event site.

Page 28

Courtesy of Michigan Administrative Rules

(7) Licensed marihuana retailers, marihuana microbusinesses, or class A marihuana

microbusinesses shall prominently display their temporary marihuana event location number and

state license number within plain sight of the public.

(8) All sales at a temporary marihuana event must occur on the dates stated on the state license

and must occur at the location stated on the state license. All onsite sales of marihuana products

must comply with the hours of operation requirements in these rules.

(9) The marihuana products sold onsite at a temporary marihuana event must be transported to

the site of the temporary marihuana event by a licensed secure transporter in compliance with the

Michigan regulation and taxation of marihuana act and these rules. A licensed transporter is not

required if less than 15 ounces of marihuana or 60 grams of concentrate is transported at 1 time.

(10) Except small amounts of products used for display, all marihuana products for sale at a

temporary marihuana event must be stored in a secure, locked container that is not accessible to

the public. Marihuana products stored by a licensee at a temporary marihuana event must not be

left unattended.

(11) All marihuana products made available for sale at a temporary marihuana event by a licensee

must comply with all requirements of the MRTMA and these rules for the sale and tracking of

marihuana products. This includes, at a minimum, all of the following:

(a) Identifying marihuana product from licensees’ inventory at the marihuana establishment that

will be transported for sale at the event using a marihuana secure transporter or an agent of the

licensee to the temporary marihuana event.

(b) Tracking in the statewide monitoring system any sales of marihuana product at the event in

accordance with the requirements of these rules.

(c) Tracking in the statewide monitoring system any marihuana product that is not sold at the

event and is returned to the marihuana establishment’s inventory at its permanent location. If more

than 15 ounces of marihuana or 60 grams of concentrate is transported at 1 time, it must be

transported using a marihuana secure transporter.

History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.

R 420.27a Marihuana educational research license.

Rule 27a. (1) A marihuana educational research license authorizes a licensee to do all of the

following:

Obtain marihuana from a marihuana establishment.

Produce marihuana products.

Perform research on marihuana and marihuana products.

Dispose of marihuana and marihuana products.

(2) A licensee holding a marihuana educational research license shall apply for the necessary

registration from the United States Drug Enforcement Administration (DEA). A licensee must

provide proof of registration to the agency before engaging in any licensed activity.

(3) An application for a marihuana educational research license must be made under oath on a

form provided by the agency. A complete application for a marihuana educational research license

must contain the information required in these rules and information regarding the marihuana

educational research license including, at a minimum, all of the following:

(a) A research plan including, at a minimum, all of the following:

(i) A written plan for documenting all individuals who will have access to the location and

marihuana or marihuana products.

Page 29

Courtesy of Michigan Administrative Rules

(ii) Detailed description and documentation of affiliation with a degree or certificate program

offered by an institution of higher learning accredited by the Higher Learning Commission.

(iii) A brief description of the research that will be conducted.

(iv) A written plan to ensure secure delivery and receipt of marihuana at the licensed location.

(v) A written plan to ensure the safe storage of marihuana at the licensed location.

(vi) A written plan for the tracking of marihuana quantities at the licensed location.

(vii) A written plan for the disposal of marihuana after research.

(viii) A floor plan of the location.

(b) For an applicant seeking licensure for a marihuana educational research license, 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 educational research license.

(ii) The municipality where the proposed marihuana educational research license 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

marihuana educational research license.

(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 marihuana educational research license, any

municipal approvals, or any violations of a municipal or zoning regulation.

(vii) The date and signature of the applicant.

(c) A certificate of use and occupancy pursuant to R 420.208 in which the authorized activities

of the marihuana educational research license are to be conducted.

(d) Any other documents required by the agency that are not inconsistent with the acts and these

rules.

(4) An applicant for a marihuana educational research license shall provide notification and report

to the agency in writing within 24 hours when he or she became aware of or should have become

aware of all of the following:

(a) Loss of institutional affiliation.

(b) Loss of institutional accreditation.

(c) Loss or restriction of DEA registration.

(d) Theft, loss, diversion, or criminal activity at the licensed location.

(5) A marihuana educational research licensee shall maintain and provide upon request of the

agency a written schedule for disposal of marihuana and marihuana products after it has concluded

research on that item.

(6) A marihuana educational research licensee shall accurately enter all transactions, current

inventory, and other information into the statewide monitoring system as required by the agency.

(7) A marihuana educational research licensee shall not sell or transfer marihuana or marihuana

products to a marihuana establishment or to a marihuana customer.

Page 30

Courtesy of Michigan Administrative Rules

(8) A marihuana educational research licensee shall designate and enter into the statewide

monitoring system administrative users pursuant to R 420.602(2)(b) and (c) as required by the

agency.

(9) A marihuana educational research licensee shall prohibit marihuana or marihuana products

grown, produced, or obtained under the license to be consumed or sampled on the licensed

premises unless the licensee is approved to engage in a research study under R 420.510(11) or the

licensee obtains express written permission from the agency.

History: 2022 MR 5, Eff. Mar. 7, 2022.

R 420.27b Class A marihuana microbusiness.

Rule 27b. (1) An applicant for a class A marihuana microbusiness license is subject to and shall

meet the requirements of the MRTMA and these rules.

(2) An application for a class A marihuana microbusiness license must be made under oath on a

form provided by the agency and must contain information as prescribed by the agency.

(3) An applicant for a class A marihuana microbusiness license shall pay applicable fees as

required under these rules.

(4) The agency may determine that an applicant is ineligible for a license or may deny an

application for the reasons specified in these rules, as applicable.

(5) Payment of the initial licensure fee must be received prior to issuance of the state license.

(6) A class A marihuana microbusiness licensee is subject to all requirements for a marihuana

microbusiness as provided for in the MRTMA and these rules, unless modified in these rules.

(7) An applicant shall pay the initial licensure fee for a class A marihuana microbusiness license

within 10 calendar days of approval or within 90 calendar days of submitting a complete

application, whichever date is first.

History: 2022 MR 5, Eff. Mar. 7, 2022.

R 420.28 Renewal; notifications; inspections and investigations; penalties; sanctions; fines;

sale or transfer.

Rule 28. (1) A designated consumption establishment, class A marihuana microbusiness,

marihuana educational research license, and marihuana event organizer license are issued for a 1-

year period and may be renewed. An applicant for renewal must meet the requirements, as

applicable, and apply in the manner prescribed in these rules.

(2) A designated consumption establishment, class A marihuana microbusiness, marihuana

educational research license, and marihuana event organizer applicant or licensee are subject to

the notification and reporting requirements specified in these rules, as applicable.

(3) A designated consumption establishment, class A marihuana microbusiness, marihuana

educational research license, or marihuana event organizer licensee or licensee participating in a

temporary marihuana event shall comply with the notification requirements for theft, loss, or

criminal activity pertaining to marihuana product under these rules, as applicable.

(4) An applicant for or a licensed designated consumption establishment, class A marihuana

microbusiness, marihuana educational research license, or marihuana event organizer are subject

to the inspections and investigations specified in these rules, as applicable.

Page 31

Courtesy of Michigan Administrative Rules

(5) An applicant for or a licensed designated consumption establishment, class A marihuana

microbusiness, marihuana educational research license, or marihuana event organizer are subject

to these rules regarding violations, sanctions, and fines.

(6) A licensee selling marihuana products at a temporary marihuana event shall comply with the

requirements of these rules regarding the sale or transfer of marihuana.

(7) A licensee selling marihuana products at a temporary marihuana event shall comply with the

requirements of these rules regarding purchasing limits in a single transaction.

History: 2020 AACS; 2022 MR 5, Eff. Mar. 7, 2022.

R 420.29 Severability.

Rule 29. If any rule or subrule of these rules, in whole or in part, is found to be invalid by a court

of competent jurisdiction, such decision will not affect the validity of the remaining portion of

these rules.

History: 2020 AACS.

Page 32

Courtesy of Michigan Administrative Rules

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

MARIJUANA REGULATORY AGENCY

MARIHUANA LICENSEES

(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 420.101 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) “Another party” or “other party” means an individual or company with which a licensee

contracts to use the individual’s or company’s intellectual property or to utilize management or

other services provided by the individual or company.

(d) "Applicant" means a person who applies for a marihuana license, subject to paragraphs (i)