DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

MARIJUANA REGULATORY AGENCY

MARIHUANA OPERATIONS

Filed with the secretary of state on March 7, 2022

These rules take effect immediately upon filing with the secretary of state unless adopted under

section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL

24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after

filing with the secretary of state.

(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 420.201, R 420.202, R 420.203, R 420.204, R 420.205, R 420.206, R 420.207, R 420.208, R

420.209, R 420.210, R 420.211, R 420.212, R 420.213, and R 420.214 of the Michigan

Administrative Code are amended, and R 420.206a, R 420.207a, R 420.214a, R 420.214b, and R

420.214c are added, as follows:

R 420.201 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) “Administrative hold” means a status given to marihuana product by the agency during an

investigation into alleged violations of the acts and these rules. This status includes no sale or

transfer of the marihuana product until the hold is lifted.

(c) “Agency” means the marijuana regulatory agency.

(d) "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.

November 5, 2021

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(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.

(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.

(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.

(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) “Batch” means all marihuana product of the same variety that has been processed together

and exposed to substantially similar conditions throughout processing.

(f) “Building” means a combination of materials forming a structure affording a facility, an

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.

(g) “Bureau of fire services” or “BFS” means the bureau of fire services in the department of

licensing and regulatory affairs.

(h) “Common ownership” means 2 or more state licenses or 2 or more equivalent licenses held

by 1 person under the Michigan Regulation and Taxation of Marihuana Act.

(i) “Cultivator” refers to both a grower under the medical marihuana facilities licensing act and

a marihuana grower under the Michigan Regulation and Taxation of Marihuana Act.

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(j) “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.

(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:

(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) “Final form” means the form a marihuana product is in when it is available for sale by a

marihuana sales location, not including consumer packaging. For marihuana products intended

for inhalation, final form means the marihuana concentrate in an e-cigarette or a vaping device.

(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) “Inactive ingredients” means binding materials, dyes, preservatives, flavoring agents, and

any other ingredient that is not derived from the plant Cannabis sativa L.

(p) “Laboratory” refers to both a safety compliance facility under the medical marihuana

facilities licensing act and a marihuana safety compliance facility under the Michigan Regulation

and Taxation of Marihuana Act.

(q) “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.

(r) “Marihuana business” refers to both a marihuana facility under the medical marihuana

facilities licensing act and a marihuana establishment under the Michigan Regulation and

Taxation of Marihuana Act.

(s) “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.

(t) “Marihuana customer” refers to a registered qualifying patient or registered primary

caregiver under the medical marihuana facilities licensing act, or an individual 21 years of age or

older under the Michigan Regulation and Taxation of Marihuana Act, or both.

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(u) “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.

(v) “Marihuana event organizer” means a person licensed to apply for a temporary marihuana

event license under these rules.

(w) “Marihuana facility” means a location at which a licensee is licensed to operate under the

medical marihuana facilities licensing act.

(x) “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.

(y) “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.

(z) “Marihuana sales location” refers to a provisioning center under the medical marihuana

facilities licensing act or a marihuana retailer, or marihuana microbusiness, or class A marihuana

microbusiness under the Michigan Regulation and Taxation of Marihuana Act, or both.

(aa) “Marihuana tracking act” means the marihuana tracking act, 2016 PA 282, MCL

333.27901 to 333.27904.

(bb) “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.

(cc) “Medical marihuana facilities licensing act” or “MMFLA” means the medical marihuana

facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.

(dd) “Michigan Medical Marihuana Act” means the Michigan Medical Marihuana Act, 2008

IL 1, MCL 333.26421 to 333.26430.

(ee) “Michigan Regulation and Taxation of Marihuana aAct” or “MRTMA” means the

Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.

(ff) “Producer” refers to both a processor under the medical marihuana facilities licensing act

and a marihuana processor under the Michigan Regulation and Taxation of Marihuana Act.

(gg) “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.

(hh) “Records of formulation” means the documentation that includes at a minimum: the

ingredients, recipe, processing in order to be shelf stable, Certificates of Analysis for any

ingredient used, and description of the process in which all ingredients are combined to produce

a final form.

(ii) “Restricted access area” means a designated and secure area at a marihuana business where

marihuana products are sold, possessed for sale, and or displayed for sale.

(jj) “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.

(kk) “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.

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(ll) “Source documentation” means an original document that contains the details of a

marihuana business transaction.

(mm) “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.

(nn) “Tag” or “RFID tag” means the unique identification number or Radio Frequency

Identification (RFID) issued to a licensee by the agency statewide monitoring system for

tracking, identifying, and verifying marihuana plants, marihuana products, and packages of

marihuana product in the statewide monitoring system.

(oo) “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 during the dates indicated on the state license.

(2) Terms defined in the acts have the same meanings when used in these rules unless otherwise

indicated.

R 420.202 Adoption by reference.

Rule 2. (1) The following codes, standards, or regulations of nationally recognized

organizations or associations are adopted by reference in these rules:

(a) National fire protection association (NFPA) standard 1, 2021 edition, entitled “Fire

Code,” is adopted by reference as part of these rules. Copies of the adopted provisions are

available for inspection and distribution from the National Fire Protection Association, 1

Batterymarch Park, P.O. Box 9101, Quincy, Massachusetts, 02169, telephone number 1-800-

344-3555, for the price of $114.50.

(b) National fire protection association (NFPA) standard 58, 2020 edition, entitled “Liquified

Petroleum Gas Code,” is adopted by reference as part of these rules. Copies of the adopted

provisions are available for inspection and distribution from the National Fire Protection

Association, 1 Batterymarch Park, P.O. Box 9101, Quincy, Massachusetts, 02169, telephone

number 1-800-344-3555, for the price of $70.50.

(2) The standards adopted in subrule (1) of this rule are available for inspection and distribution

at the agency, located at 2407 North Grand River Avenue, Lansing, Michigan, 48906. Copies of

these standards may be obtained from the agency at the cost indicated in subrule (1)(a) and (b) of

this rule, plus shipping and handling.

R 420.203 Marihuana licenses; licensees; operations; general.

Rule 3. (1) A marihuana license and a stacked license as described in these rules are limited to

the scope of the marihuana license issued for that type of marihuana business that is located

within the municipal boundaries connected with the marihuana license.

(2) A licensee shall comply with all of the following:

(a) Except as provided in R 420.204 and R 420.205, a marihuana business must be partitioned

from any other marihuana business or activity, any other business, or any dwelling.

(b) A marihuana business shall not allow onsite or as part of the marihuana business any of the

following:

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(i) Sale, consumption, or serving of food except as provided in these rules unless the business

is a designated consumption establishment or a temporary marihuana event that has obtained any

required authorizations from other federal, state, or local agencies.

(ii) Consumption, use, or inhalation of a marihuana product unless the licensee has been

granted a designated consumption establishment or temporary marihuana event license under the

MRTMA, and these rules.

(c) A marihuana business must have distinct and identifiable areas with designated structures

that are contiguous and specific to the marihuana license.

(d) A marihuana business must have separate entrances and exits, inventory, record keeping,

and point of sale operations, if applicable.

(e) Access to a marihuana business’s restricted and limited access areas is restricted to the

licensee, employees of the licensee, escorted visitors, and the agency. A marihuana sales

location, a marihuana microbusiness, or a class A marihuana microbusiness may grant access as

provided in R 420.206(9) to customers to a dedicated point of sale area.

(f) Licensee records must be maintained as follows and made available to the agency upon

request:

(i) A licensee shall maintain accurate and comprehensive financial records for each license

that clearly documents the licensee’s income and expenses. Applicable supporting source

documentation must be maintained, including, but not limited to, all of the following:

(A) Cash logs.

(B) Sales records.

(C) Purchase of inventory.

(D) Invoices.

(E) Receipts.

(F) Deposit slips.

(G) Cancelled checks.

(H) Employee compensation records.

(I) Tax records.

(ii) Bulk financial deposits or transactions must be traceable to the individual transactions that

comprise the bulk deposit or transaction.

(iii) Licensee records must be maintained for at least 4 years, except in instances of

investigation or inspection by the agency in which case the licensee shall retain the records until

such time as the agency notifies the licensee that the recordings may be destroyed.

(g) The marihuana business must be at a fixed location. Mobile marihuana businesses are

prohibited. Any sales or transfers of marihuana product by mail order or on consignment are

prohibited.

(h) A marihuana license must be framed under a transparent material and prominently

displayed in the marihuana business.

(3) A marihuana business shall comply with all of the following:

(a) The natural resources and environmental protection act, 1994 PA 451, MCL 324.101 to

324.90106. The agency may publish guidance in cooperation with the department of

environment, great lakes, and energy.

(b) Any other operational measures requested by the agency that are not inconsistent with the

acts and these rules.

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R 420.204 Operation at same location.

Rule 4. (1) A licensee that has any combination of marihuana licenses may operate separate

marihuana businesses at the same location. For purposes of this rule, a stacked license is

considered a single marihuana business.

(2) To operate at the same location subject to subrule (1) of this rule, a licensee shall meet all of

the following requirements:

(a) The agency has authorized the proposed operation at the same location.

(b) The operation at the same location is not in violation of any local ordinances or regulations.

(c) The operation at the same location does not circumvent a municipal ordinance or zoning

regulation that limits the marihuana businesses under the acts.

(d) The licensee of each marihuana business operating at the same location under this rule shall

do all the following:

(i) Apply for and be granted separate marihuana licenses and pay the required fees for each

marihuana license.

(ii) Have distinct and identifiable areas with designated structures that are on the same parcel

or a contiguous parcel and specific to the marihuana license.

(iii) Have separate inventory, record keeping, and point of sale operations.

(iv) Post each marihuana license on the wall in its distinct area and as provided in these rules.

(v) Obtain any additional inspections and permits required for local or state building

inspection, fire services, and public health standards.

(vi) Comply with the provisions in the acts and these rules.

(3) Operation of a marihuana license at the same location that includes a licensed marihuana

sales location must have the entrance and exit to the licensed marihuana sales location and entire

inventory physically separated from any of the other licensed marihuana businesses so that

individuals can clearly identify the sales entrance and exit.

(4) Operation of marihuana licenses at the same location may include a combined space for the

following purposes:

(a) Complying with R 420.214a.

(b) Storage of marijuana and marijuana products in final form.

(c) A designated area under 420.602(5).

(d) Loading and unloading marijuana product.

(e) Storage of the physical media or storage device on which surveillance recordings are stored

under R 420.209(10).

(5) A laboratory may be co-located with an existing accredited laboratory that is not licensed by

the MRA, with agency approval, if the following criteria are met:

(a) The existing laboratory performs analytical scientific testing in a laboratory environment,

and the testing methods are recognized by an accrediting body.

(b) Testing of marihuana product is performed separately from other materials.

(c) All marihuana product is stored separately from any other materials located at the site for

testing.

R 420.205 Equivalent licenses; operation at same location.

Rule 5. (1) A person that holds equivalent licenses with common ownership under the acts may

operate those equivalent licenses at the same location.

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(2) To operate equivalent licenses at the same location, all of the following requirements must

be met:

(a) The agency has authorized the proposed operation at the same location.

(b) The operation at the same location is not in violation of any local ordinances or regulations.

(c) The operation at the same location does not circumvent a municipal ordinance or zoning

regulation that limits the marihuana businesses under the acts.

(d) The person operating the equivalent licenses at the same location under this rule shall do all

the following:

(i) Apply for and be granted a separate state license and a state operating license and pay the

required fees for each license.

(ii) Post each state license and state operating license on the wall in its distinct area and as

provided in these rules.

(iii) Obtain any additional inspections and permits required for local or state building

inspection, fire services, and public health standards, if applicable.

(iv) Comply with the provisions in the acts and these rules.

(3) A licensee with common ownership of a marihuana retailer and a provisioning center and

operating equivalent licenses at the same location shall physically separate the entire inventories

and the items on display for sale so that individuals may clearly identify medical marihuana

products from adult-use marihuana products.

(4) A licensee with common ownership of a marihuana retailer and a provisioning center and

operating the equivalent licenses at the same location shall not bundle a product subject to the

excise tax in section 13 of the MRTMA, MCL 333.27963, in a single transaction with a product

or service that is not subject to the tax imposed by that section.

(5) A person who holds equivalent licenses with common ownership under the acts and

operates at the same location is not required to have any of the following:

(a) Separate business suites, partitions, or addresses.

(b) Separate entrances and exits.

(c) Distinct and identifiable areas with designated structures that are contiguous and specific to

the state license and the state operating license.

(d) Separate point of sale area and operations.

R 420.206 Marihuana business; general requirements.

Rule 6. (1) A cultivator shall not operate a marihuana business unless either of the following

conditions is met:

(a) The cultivator operations are within a building that meets the security requirements and

passes the inspections in these rules and has a building permit pursuant to R 420.208 and these

rules.

(b) The cultivator operations are within a building, except that cultivation may occur in an

outdoor area, if all of the following conditions are met:

(i) The outdoor area containing the cultivation of marihuana plants is contiguous with the

building, fully enclosed by fences or barriers that ensure that the plants are not visible from a

public place without the use of binoculars, aircraft, or other optical aids, and the fences are

secured and comply with the applicable security measures in these rules, including, but not

limited to, locked entries only accessible to authorized persons or emergency personnel.

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(ii) After the marihuana is harvested, all drying, trimming, curing, or packaging of marihuana

occurs inside the building meeting all the requirements under these rules.

(iii) The building meets the security requirements and passes the inspections in these rules and

has a building permit pursuant to R 420.208 and these rules.

(2) A cultivator who has obtained good agricultural collection processes certification may sell

immature plants to a marihuana sales location under the allowances published by the agency.

(3) The agency shall publish a list of approved chemical residue active ingredients for

cultivators to use in the cultivation and production of marihuana plants and marihuana products

to be sold or transferred in accordance with the acts or these rules.

(4) The agency shall publish a list of banned chemical residue active ingredients that are

prohibited from use in the cultivation and production of marihuana plants and marihuana

products to be sold or transferred in accordance with the acts or these rules.

(5) A marihuana secure transporter under the MRTMA shall have a primary place of business

as its marihuana business that operates in a municipality that has not adopted an ordinance

prohibiting marihuana businesses from operating within its boundaries under section 6 of the

MRTMA, MCL 333.27956, and these rules, and its marihuana business must comply with the

requirements prescribed by the MRTMA, these rules, and any municipal ordinances that meet

the requirements of section 6 of the act, MCL 333.27956.

(6) A secure transporter under the MMFLA shall have a primary place of business as its

marihuana facility that operates in a municipality that has adopted an ordinance that meets the

requirements of section 205 of the act, MCL 333.27205, and the rules, and its marihuana facility

must comply with the requirements prescribed by the MMFLA and these rules.

(7) A marihuana transporter shall hold a separate license for every marihuana transporter

location. A marihuana transporter may travel through any municipality to transport a marihuana

product. A marihuana transporter shall comply with all of the following:

(a) The marihuana transporter may take physical custody of the marihuana or money, but legal

custody belongs to the transferor or transferee.

(b) A marihuana transporter shall not sell or purchase marihuana products.

(c) A marihuana transporter shall transport any marihuana product in a locked, secured, and

sealed container that is not accessible while in transit. The container must be secured by a locked

closed lid or door, or sealed by tamper-proof tape or equivalent provided the means of sealing

the product would alert the receiving facility that the product had been tampered with at some

point from the time it departed the shipping facility. A marihuana transporter of marihuana

product from separate marihuana businesses shall not comingle the marihuana product. All

marihuana products must be labeled in accordance with these rules and kept in separate

compartments or containers within the main locked, secured, and sealed container. If the

marihuana transporter transports money associated with the purchase or sale of marihuana

product between businesses, the marihuana transporter shall lock the money in a sealed container

kept separate from the marihuana product and only accessible to the licensee and its employees.

(d) A marihuana transporter shall log and track all handling of money associated with the

purchase or sale of marihuana between marihuana businesses. These records must be maintained

and made available to the agency upon request.

(e) A marihuana transporter shall have a route plan and manifest available for inspection by the

agency to determine compliance with the acts and these rules. A copy of the route plan and

manifest must be carried with the marihuana transporter during transport between marihuana

businesses. A marihuana transporter is subject to administrative inspection by a law enforcement

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officer at any point during the transportation of marihuana product pursuant to these rules. A

marihuana transporter shall carry a copy of a route plan and manifest in the transporting vehicle

and shall present them to a law enforcement officer upon request.

(f) A marihuana transporter shall not possess marihuana product that is not on a manifest.

(g) A marihuana transporter shall follow the manifest.

(h) A marihuana transporter shall store vehicles at its primary place of business. If a marihuana

transporter stores a vehicle that does not contain marihuana or marihuana product at a location

that is not its primary place of business, it shall indicate that in its business plan.

(i) A marihuana transporter transferring marihuana product to a marihuana business shall

remain onsite until the marihuana product is weighed and accepted or rejected before leaving the

marihuana business.

(j) A marihuana transporter shall not maintain custody of the marihuana product for more than

96 hours unless permission is otherwise sought and granted by the agency, which will be

reviewed on a case-by case basis.

(k) A marihuana transporter shall identify and record all vehicles with the agency and have the

required vehicle registration with the secretary of state as required under state law. A marihuana

transporter’s vehicles are subject to inspection at any time by the agency to determine

compliance with the acts or these rules.

(8) A laboratory shall comply with all of the following:

(a) Provide written notice to the agency within 7 days of a laboratory manager no longer being

employed at the facility.

(b) Designate an interim laboratory manager within 7 days of the laboratory manager’s

departure. The interim laboratory manager must meet either of the following requirements:

(i) The interim laboratory manager must meet at least 1 of the qualifications for a laboratory

manager.

(ii) The interim laboratory manager must have, at minimum, a bachelor’s degree in 1 of the

natural sciences and 3 years of full-time laboratory experience in a regulated laboratory

environment, performing analytical scientific testing in which the testing methods were

recognized by an accrediting body. A combination of education and experience may substitute

for the 3 years of full-time laboratory experience.

(c) Hire a permanent laboratory manager within 60 calendar days from the date of the previous

laboratory manager’s departure, unless the laboratory receives a written waiver from the agency.

A laboratory may submit a waiver request to the agency to receive an additional 60 calendar days

to hire a permanent laboratory manager if the laboratory submits a detailed oversight plan along

with the waiver request.

(9) A marihuana sales location must have a separate room that is dedicated as the point of sale

area for the transfer or sale of marihuana product as provided in the acts and these rules. The

marihuana sales location shall keep marihuana products behind a counter or other barrier to

ensure that a customer does not have direct access to the marihuana products. A marihuana sales

location may also have a designated area for contactless or limited contact transactions.

(10) A marihuana business shall label all marihuana products with the ingredients of the

product, in descending order of predominance by weight.

(11) All non-marihuana inactive ingredients must be clearly listed on the product label. Inactive

ingredients, other than botanically derived flavonoids, terpenoids, and terpenes that are

chemically identical to the terpenes derived from the plant Cannabis sativa L., must be approved

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by the FDA for the intended use, and the concentration must be less than the maximum

concentration listed in the FDA Inactive Ingredient database for the intended use.

(12) A marihuana business producing marihuana products shall maintain records of formulation

and make them available to the agency upon request.

(13) All ingredients containing cannabinoids, whether naturally occurring or synthetically

derived, that are added to marihuana or marihuana products must be from a source licensed to

grow, handle, and produce cannabinoids under a license issued by a governmental authority and

entered into the statewide monitoring system.

(14) When combining marihuana and marihuana product into another marihuana product, each

form of marihuana and marihuana product being combined must have passing safety compliance

test results in the statewide monitoring system prior to the creation of the new combined product.

(15) A marihuana business shall comply with random compliance checks upon the request of

the agency. The agency or its authorized agents may collect a random sample of a marihuana

product from a marihuana business or designate a laboratory to collect a random sample of a

marihuana product in a secure manner to test that sample for compliance.

(16) The agency may update or issue new standards as necessary to protect the health, safety,

and welfare of consumers and the public. A marihuana business shall comply with all new or

updated standards issued by the agency within 6 months of their adoption by the agency unless

there is an identifiable public health or safety risk.

(17) A marihuana business transferring marihuana product to or receiving marihuana product

from a marihuana transporter shall initiate the procedures to transfer or receive the marihuana

product within 30 minutes of the marihuana transporter’s arrival at the marihuana business.

R 420.206a Standard operating procedures.

Rule 6a. (1) A marihuana business must have up-to-date written standard operating procedures

on site at all times.

(2) Standard operating procedures must be made available to the agency upon request.

(3) Standard operating procedures must detail the marihuana business operations and activities

necessary for the marihuana business to comply with the acts and these rules.

(4) If the agency determines that any standard operating procedure contains inaccurate

information or does not comply with these rules and safe food management guidelines, as

applicable, the licensee may be required to correct the practice immediately and update the

standard operating procedures within 1 business day.

R 420.207 Marihuana delivery; limited circumstances.

Rule 7. (1) A marihuana sales location licensee may engage in the delivery of a marihuana

product for sale or transfer to marihuana customers upon approval by the agency of the

licensee’s delivery procedures.

(2) A marihuana sales location licensed under the MMFLA that engages in delivery shall

establish procedures as specified in this rule to allow an employee of the marihuana sales

location to deliver a marihuana product to a patient at the patient’s residential address.

(3) A marihuana sales location licensed under the MRTMA that engages in delivery shall

establish procedures as specified in this rule to allow an employee of the marihuana sales

location to deliver a marihuana product to an individual 21 years of age or older at a residential

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address or at the address of a designated consumption establishment provided at the time the

order was placed.

(4) All of the following apply to the marihuana delivery procedures established by a marihuana

sales location:

(a) For the purposes of this rule only, a marihuana sales location may accept an online order

request of a marihuana product and payment for the order that will be delivered only to the

physical residence of the registered qualifying patient as provided in this rule, or to a residential

address or the address of a designated consumption establishment provided by an individual 21

years of age or older as provided in this rule.

(b) The marihuana sales location shall create a marihuana delivery procedure that is subject to

inspection and examination including, but not limited to, record keeping and tracking

requirements. The agency may publish guidelines on the required procedure.

(c) All marihuana delivery employees shall meet the requirements in R 420.602 and are

employees, as defined in R 420.601(1)(d), of the marihuana sales location.

(5) A marihuana sales location that has received authorization under subrule (1) of this rule

shall comply with all of the following:

(a) The marihuana sales location shall verify that the sale or transfer to marihuana customers is

in accordance with these rules.

(b) The marihuana delivery employee may take payment upon delivery and shall deliver the

marihuana product.

(c) The amount of marihuana product that may be delivered is limited to the daily and monthly

purchase limits of the registered qualifying patient as provided in these rules; or to the single

transaction purchase limits for individuals 21 years of age or older as provided in these rules.

(d) The marihuana sales location shall record all transactions in the statewide monitoring

system as required in the acts and these rules.

(e) An employee of the marihuana sales location shall make marihuana deliveries only to 1 of

the following:

(i) Subject to paragraph (ii) of this subdivision, a registered qualifying patient.

(ii) A registered primary caregiver if the registered qualifying patient is a minor. If the

registered qualifying patient is a minor, delivery must be made only to his or her registered

primary caregiver.

(iii) An individual 21 years of age or older.

(f) A marihuana delivery employee shall verify that the person taking delivery is the registered

qualifying patient or the registered primary caregiver of a registered qualifying patient who is a

minor, who has been recorded in the statewide monitoring system, or the individual 21 years of

age or older who placed the order.

(g) The authorization granted to a marihuana sales location pursuant to subrule (1) of this rule

may be denied, suspended, or withdrawn by the agency. The marihuana sales location may be

subject to other sanctions and fines as provided in the acts and these rules.

(6) A marihuana sales location shall maintain records of all of the following that must be made

available to the agency upon request:

(a) For a marihuana sales location licensed under the MMFLA, confirmation that the

marihuana customer presented his or her valid driver’s license or government issued

identification bearing a photographic image of the marihuana customer along with his or her

marihuana registry card, or temporary marihuana registry card, to verify that he or she is the

patient or, if the registered qualifying patient is a minor, the registered primary caregiver.

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(b) For a marihuana sales location licensed under the MRTMA, confirmation that the

marihuana customer presented his or her valid driver’s license or government issued

identification bearing a photographic image of the marihuana customer to verify that the

marihuana customer is 21 years of age or older at the time of delivery.

(c) Validation that the address for marihuana delivery of a marihuana product is the residential

address of the registered qualifying patient, or the residential address or address of a designated

consumption establishment provided by the customer at the time the order for the marihuana

product was placed.

(d) Maintenance of the following records for any motor vehicle used for marihuana delivery

and the making of the records available to the agency upon request:

(i) Vehicle make.

(ii) Vehicle model.

(iii) Vehicle color.

(iv) Vehicle identification number.

(v) License plate number.

(vi) Vehicle registration.

(vii) Proof of vehicle insurance.

(e) Documentation that the marihuana customer has consented to the marihuana delivery of the

marihuana product. The consent must include an acknowledgement by the marihuana customer

for the release of information necessary in fulfilling the home delivery.

(f) Verification, by a licensee under the MMFLA, in the statewide monitoring system that the

registered qualifying patient holds a valid, current, unexpired, and unrevoked registry

identification card as required in these rules.

(7) A marihuana delivery employee shall carry a physical or electronic copy of all of the

following information and shall make these records available to the agency upon request:

(a) The employee identification number required under these rules.

(b) The marihuana sales location licensee license number.

(c) The address of the marihuana sales location licensee.

(d) Contact information of the marihuana sales location licensee.

(e) A copy of the marihuana sales location marihuana delivery log as required in subrule (13)

of this rule.

(8) A marihuana delivery employee shall have access to a secure form of communication with

the marihuana sales location licensee, such as a cellular telephone, at all times in the vehicle or

on his or her person.

(9) A marihuana delivery employee shall comply with all the following:

(a) During marihuana delivery, the marihuana delivery employee shall maintain a physical or

electronic copy of each marihuana delivery request and shall make the marihuana delivery

request available to the agency upon request.

(b) A marihuana delivery employee shall not leave a marihuana product in an unattended

motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm

system.

(c) A marihuana delivery employee’s vehicle must contain a global positioning system (GPS)

device for identifying the geographic location of the delivery vehicle. The device must be either

permanently or temporarily affixed to the delivery vehicle while the delivery vehicle is in

operation, and the device must remain active and in the possession of the delivery employee at

all times during delivery. At all times, the marihuana sales location must be able to identify the

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geographic location of all marihuana delivery vehicles and marihuana delivery employees who

are making marihuana deliveries for the marihuana sales location and shall provide that

information to the agency upon request.

(d) A marihuana delivery employee shall not carry marihuana product in the delivery vehicle

with a value in excess of $5,000.00 at any time. The value of marihuana products carried in the

delivery vehicle for which a delivery order was not received and processed by the licensed

retailer prior to the delivery employee departing from the marihuana sales location may not

exceed $3,000.00. For the purposes of this subrule, the value of marihuana products must be

determined using the current retail price of all marihuana products carried by, or within the

delivery vehicle of, the marihuana delivery employee.

(e) A marihuana delivery employee of a marihuana sales location may not be employed as a

marihuana delivery employee for more than 1 marihuana sales location.

(f) A marihuana delivery employee shall not leave the marihuana sales location with marihuana

products without at least 1 delivery order that has already been received and processed by the

marihuana sales location.

(g) Before leaving the marihuana sales location, the marihuana delivery employee must have a

delivery inventory ledger, which may be maintained electronically, of all marihuana products

provided to him or her. For each marihuana product, the delivery inventory ledger must include

the following:

(i) The type of marihuana product.

(ii) The brand name.

(iii) The retail value.

(iv) The tag number associated with the product in the statewide monitoring system.

(v) The weight, volume, or other accurate measure of the marihuana product.

(h) All marihuana product prepared for an order that was received and processed by the

marihuana sales location prior to the marihuana delivery driver departing from the marihuana

sales location must be clearly identified on the inventory ledger.

(i) After each delivery, the delivery inventory ledger must be updated to reflect the current

inventory in possession of the marihuana delivery employee.

(j) The marihuana delivery employee shall maintain a log that includes all stops from the time

he or she leaves the marihuana sales location to the time that he or she returns to the marihuana

sales location, and the reason for each stop. The log must be turned in to the marihuana sales

location when the marihuana delivery employee returns to the marihuana sales location. The

marihuana sales location must maintain the log for a minimum of 1 year from the date of

delivery and make it available upon request by the agency. The log may be maintained

electronically.

(k) Immediately upon request by the agency the marihuana delivery employee shall provide all

of the following:

(i) All delivery inventory ledgers from the time the marihuana delivery employee left the

marihuana sales location up to the time of the request.

(ii) All delivery request receipts for marihuana product carried by the driver, in the delivery

vehicle, or any deliveries that have already been made to customers.

(iii) The log of all stops from the time the marihuana delivery employee left the marihuana

sales location up to the time of the request.

(l) If a marihuana delivery employee does not have any delivery request to be performed for a

30-minute period, the marihuana delivery employee shall not make any additional deliveries and

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shall return to the marihuana sales location. Upon returning to the marihuana sales location, all

undelivered marihuana products must be returned to inventory and all necessary inventory and

statewide monitoring system records must be updated as appropriate.

(10) A marihuana retailer licensed under the MRTMA, in making deliveries, shall not transport

more than 15 ounces of marihuana or more than 60 grams of marihuana concentrate at 1 time

pursuant to section 11 of the MRTMA, MCL 333.27961.

(11) A marihuana sales location shall ensure that marihuana deliveries are completed in a

timely and efficient manner as provided on the marihuana delivery request and log. All

marihuana deliveries must occur within the business hours of the marihuana sales location.

Marihuana product for marihuana delivery must be stored within a secured compartment that is

clearly marked and latched or locked in a manner to keep all contents secured within.

(12) The process of marihuana delivery begins when the marihuana delivery employee leaves

the marihuana sales location’s licensed marihuana business with the marihuana product for

delivery. The process of marihuana delivery ends when the delivery employee returns to the

marihuana sales location’s licensed marihuana business after delivering the marihuana product to

the marihuana customer.

(13) A marihuana sales location shall maintain a record of each delivery of a marihuana product

in a marihuana delivery log, which may be a hard copy or electronic format, and make

the marihuana delivery log available to the agency upon request. For each delivery, the

marihuana delivery log must record all of the following:

(a) The date and time that the delivery began and ended.

(b) The name of the marihuana delivery employee.

(c) The amount of marihuana product allowed to be possessed for delivery.

(d) The tag number of the marihuana product and the name of the strain of that marihuana

product.

(e) The signature of the individual who accepted delivery.

(14) A marihuana sales location shall notify the agency, state police, or local law enforcement

of any theft, loss of marihuana product, or criminal activity as provided in these rules. A

marihuana sales location shall report to the agency and law enforcement, if applicable, any other

event occurring during marihuana delivery that violates the marihuana delivery procedure as

provided in this rule, including marihuana delivery vehicle accidents and diversion of marihuana

product.

R 420.207a Contactless and limited contact transactions.

Rule 7a. (1) A marihuana sales location may designate an area for contactless or limited contact

transactions unless prohibited by an ordinance adopted by the municipality where the marihuana

sales location is located.

(2) Contactless or limited contact transaction include, but are not limited to the following:

(a) Curbside service.

(b) Drive through window service.

(3) A marihuana sales location may accept online or telephonic orders for marihuana product

and payment for the order that will be picked up at the marihuana sales location.

(4) The designated area for contactless or limited contact transactions must be identified in the

marihuana business location plan.

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(5) A marihuana sales location operating a contactless or limited contact transaction must have

a written standard operating procedure in place and be made available to the agency upon

request.

(6) Contactless or limited contact transactions must be completed during normal business hours.

(7) A marihuana sales location using a designated area for contactless or limited contact

transactions must have in place an anti-theft policy, procedure, or automatic capability.

(8) The designated area for contactless or limited contact transactions must comply with R

420.209.

(9) The contactless and limited contact transaction must comply with R 420.505 and R 420.506.

(10) Marihuana being transferred during a contactless or limited contact transaction must be in

an opaque bag and the contents must not be visible to the general public upon pick up.

R 420.208 Building and fire safety.

Rule 8. (1) An applicant’s proposed marihuana business and a licensee’s marihuana business

are subject to inspection by a state building code official, state fire official, or code enforcement

official to confirm that no health or safety concerns are present.

(2) A state building code official, or his or her authorized designee, may conduct prelicensure

and post-licensure inspections to ensure that applicants and licensees comply with the Stille-

DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531;

the skilled trades regulation act, 2016 PA 407, MCL 339.5101 to 339.6133; 1967 PA 227, MCL

408.801 to 408.824; and 1976 PA 333, MCL 338.2151 to 338.2160.

(3) An applicant or licensee shall not operate a marihuana business unless a permanent

certificate of occupancy has been issued by the appropriate enforcing agency. A temporary

certificate of occupancy may be accepted, at the discretion of the agency. Before a certificate of

occupancy is issued, work must be completed in accordance with the Stille-DeRossett-Hale

single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. An applicant or

licensee shall comply with both of the following:

(a) An applicant or licensee shall obtain a building permit for any building utilized as a

proposed marihuana business or marihuana business as provided in the acts and these rules. The

issuance, enforcement, and inspection of building permits under the acts remains with the

governmental entity having jurisdiction under the Stille-DeRossett-Hale single state construction

code act, 1972 PA 230, MCL 125.1501 to 125.1531.

(b) An applicant or licensee shall obtain a building permit for a change of occupancy for an

existing building to be utilized as a proposed marihuana business or marihuana business as

provided in the acts and these rules.

(4) An applicant or licensee shall not operate a marihuana business unless the proposed

marihuana business or marihuana business has passed the prelicensure fire safety inspection by

the BFS. The state fire marshal, or his or her authorized designee, may conduct prelicensure and

post-licensure inspections of a marihuana business. An applicant or licensee shall comply with

all of the following:

(a) A BFS inspection may be conducted at any reasonable time to ensure fire safety

compliance. A BFS inspection may be annual or biannual and may result in the required

installation of fire suppression devices or other means necessary for adequate fire safety pursuant

to state standards.

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(b) The BFS may require a marihuana business to obtain operational permits, including, but not

limited to, any of the following:

(i) Carbon dioxide systems used in beverage dispensing applications, amended for cultivation

use and extraction.

(ii) Compressed gases.

(iii) Combustible fibers.

(iv) Flammable and combustible liquids.

(v) Fumigation and insecticidal fogging.

(vi) Hazardous materials.

(vii) High piled storage (high rack system cultivation).

(viii) Liquefied petroleum (LP) gas.

(c) For specific installation or systems, BFS may require marihuana businesses to obtain

construction permits, including, but not limited to, any of the following:

(i) Building construction.

(ii) Electrical, mechanical, plumbing, boiler, and elevator.

(iii) Compressed gases.

(iv) Flammable and combustible liquids.

(v) Hazardous materials.

(vi) Liquified petroleum (LP) gas.

(vii) Automatic fire extinguishing/suppression systems.

(viii) Fire alarm and detections systems.

(ix) Related equipment found during fire safety inspections.

(5) The state fire marshal, or their authorized designee, may conduct a BFS fire safety

inspection of a marihuana business, at any reasonable time to ensure compliance with the NFPA

1, 2021 edition, entitled “Fire Code,” which is adopted by reference in R 420.202. A licensee

shall comply with the NFPA 1 as adopted and the following additional requirements:

(a) Ductwork must be installed in accordance with the Michigan mechanical code, R

408.30901 to R 408.30998.

(b) Suppression systems outlined in NFPA 1 and the Michigan mechanical code, R 408.30901

to R 408.30998, must be installed if required to meet the suppression needs within a marihuana

establishment.

(c) Producers, cultivators, laboratories, marihuana microbusinesses, and class A marihuana

microbusinesses shall implement appropriate exhaust ventilation systems to mitigate noxious

gasses or other fumes used or created as part of any production process or operations. Exhaust

and ventilation equipment must be appropriate for the hazard involved and must comply with

NFPA 1 and Michigan mechanical code, R 408.30901 to R 408.30998.

(6) In addition to meeting all the requirements in subrules (1) to (5) of this rule, cultivators,

producers, marihuana microbusinesses, class A marihuana microbusinesses, and designated

consumption establishments shall also comply with all of the following:

(a) Permit the agency or its authorized agents, or state fire marshal or his or her authorized

designee, to enter and inspect a cultivator, producer, marihuana microbusiness, class A

marihuana microbusiness, and designated consumption establishments at any reasonable time.

(b) Have a fire safety inspection conducted, in addition to any inspections required under the

acts and these rules, if any of the following occur:

(i) Modifications to the grow areas, rooms and storage, extraction equipment and process

rooms, or marihuana-infused product processing equipment within a marihuana business.

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(ii) Changes in occupancy.

(iii) Material changes to a new or existing cultivator, producer, marihuana microbusiness,

class A marihuana microbusiness, or designated consumption establishment including changes

made prelicensure and post-licensure.

(iv) Changes in extraction methods and processing or grow areas and building structures.

(c) Ensure that extractions using compressed gases of varying materials including, but not

limited to, butane, propane, and carbon dioxide that are used in multiple processes in cultivation

or extraction meet all of the following:

(i) Flammable gases of varying materials may be used in multiple processes in cultivation or

extraction and must meet the requirements in NFPA 58 and the international fuel gas code.

(ii) Processes that extract oil from marihuana plants and marihuana products using flammable

gas or flammable liquid must have leak or gas detection measures, or both. All extraction

equipment used in the marihuana business and equipment used in the detection of flammable or

toxic gases, or both, must be approved by the BFS and may require construction permits.

(iii) Marihuana businesses that have exhaust systems must comply with the NFPA 1 and the

Michigan mechanical code, R 408.30901 to R 408.30998.

(7) The requirements of this rule do not apply to a marihuana event organizer applicant or

licensee under the MRTMA.

(8) An applicant for a temporary marihuana event is subject to review and inspection, if

applicable, by BFS, which includes, but is not limited to, all of the following:

(a) A site plan must be provided. BFS shall review the site plan in accordance with the NFPA

1.

(b) The temporary marihuana event location may be subject to a physical inspection, as

determined by the agency.

R 420.209 Security measures; required plan; video surveillance system.

Rule 9. (1) An applicant for a marihuana license to operate a proposed marihuana business shall

submit a security plan that demonstrates, at a minimum, the ability to meet the requirements of

this rule.

(2) A licensee shall ensure that any person at the marihuana business, except for employees of

the licensee, are escorted at all times by the licensee or an employee of the licensee when in the

limited access areas and restricted access areas at the marihuana business.

(3) A licensee shall securely lock the marihuana business, including interior rooms as required

by the agency, windows, and points of entry and exits, with commercial-grade, nonresidential

door locks or other electronic or keypad access. Locks on doors that are required for egress must

meet the requirements of NFPA 1, local fire codes, and the Michigan building code, R

408.30401 to R 408.30499.

(4) A licensee shall maintain an alarm system at the marihuana business. Upon request, a

licensee shall make available to the agency all information related to the alarm system,

monitoring, and alarm activity.

(5) A licensee shall have a video surveillance system that, at a minimum, consists of digital or

network video recorders, cameras capable of meeting the recording requirements in this rule,

video monitors, digital archiving devices, and a color printer capable of delivering still photos.

(6) A licensee shall ensure the video surveillance system does all the following:

(a) Records, at a minimum, the following areas:

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(i) Any areas where marihuana products are weighed, packed, stored, loaded, and unloaded for

transportation, prepared, or moved within the marihuana business.

(ii) Limited access areas and security rooms. Transfers between rooms must be recorded.

(iii) Areas storing a surveillance system storage device with not less than 1 camera recording

the access points to the secured surveillance recording area.

(iv) The entrances and exits to the building, which must be recorded from both indoor and

outdoor vantage points.

(v) The areas of entrance and exit between marihuana businesses at the same location if

applicable, including any transfers between marihuana businesses.

(vi) Point of sale areas where marihuana products are sold and displayed for sale.

(vii) Areas where marihuana or marihuana products are destroyed.

(b) Records images effectively and efficiently of the area under surveillance with a minimum

of 720p resolution.

(7) A licensee shall ensure that each camera is permanently mounted and in a fixed location.

Each camera must be placed in a location that allows the camera to clearly record activity

occurring within 20 feet of all points of entry and exit on the marihuana business and allows for

the clear and certain identification of any person, including facial features, and activities,

including sales or transfers, in all areas required to be recorded under these rules.

(8) A licensee shall have sufficient lighting to meet the video surveillance system requirements

of this rule.

(9) A licensee shall have cameras that record when motion is detected at the marihuana

business and record images that clearly and accurately display the time and date.

(10) A licensee shall secure the physical media or storage device on which surveillance

recordings are stored in a manner to protect the recording from tampering or theft.

(11) A licensee shall keep surveillance recordings for a minimum of 30 calendar days, except in

instances of investigation or inspection by the agency in which case the licensee shall retain the

recordings until the time as the agency notifies the licensee that the recordings may be destroyed.

(12) Surveillance recordings of the licensee are subject to inspection by the agency and must be

kept in a manner that allows the agency to view and obtain copies of the recordings at the

marihuana business immediately upon request. The licensee shall also send or otherwise provide

copies of the recordings to the agency upon request within the time specified by the agency.

(13) A licensee shall maintain a video surveillance system equipped with a failure notification

system that provides notification to the licensee of any interruption or failure of the video

surveillance system or video surveillance system storage device.

(14) A licensee shall maintain a log of the recordings, which includes all of the following:

(a) The identity of the employee or employees responsible for monitoring the video

surveillance system.

(b) The identity of the employee who removed any recording from the video surveillance

system storage device and the time and date removed.

(c) The identity of the employee who destroyed any recording.

(15) The requirements of this rule do not apply to the following license types under the

MRTMA:

(a) A designated consumption establishment applicant or licensee.

(b) A marihuana event organizer applicant or licensee.

(c) A temporary marihuana event applicant or licensee.

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R 420.210 Prohibitions.

Rule 10. (1) Except for designated consumption establishments or temporary marihuana events

licensed under the MRTMA, a marihuana business must not have marihuana products that are

not identified and recorded in the statewide monitoring system pursuant to these rules. A licensee

shall not transfer or sell a marihuana product that is not identified in the statewide monitoring

system pursuant to these rules.

(2) Except for a designated consumption establishment or temporary marihuana event licensed

under the MRTMA, a marihuana business must not have any marihuana product without a batch

number or identification tag or label pursuant to these rules. A licensee shall immediately tag,

identify, or record as part of a batch in the statewide monitoring system any marihuana product

as provided in these rules.

(3) A licensee shall not reassign or subsequently assign a tag to another package that has been

associated with a package in the statewide monitoring system.

(4) A licensee shall not allow a physician to conduct a medical examination or issue a medical

certification document at a marihuana business for the purpose of obtaining a registry

identification card.

(5) A violation of these rules may result in sanctions or fines, or both, in accordance with the

acts and these rules.

R 420.211 Marihuana product destruction and waste management.

Rule 11. (1) A marihuana product that is to be destroyed or is considered waste must be

rendered into an unusable and unrecognizable form through grinding or another method as

determined by the agency that incorporates the marihuana product waste with 1 or more of the

following types of non-consumable solid waste so that the resulting mixture is not less than 50%

non-marihuana product waste:

(a) Paper waste.

(b) Plastic waste.

(c) Cardboard waste.

(d) Food waste.

(e) Grease or other compostable oil waste.

(f) Fermented organic matter or other compost activators.

(g) Soil.

(h) Other waste approved in writing by the agency.

(2) Marihuana plant waste, including roots, stalks, leaves, and stems that have not been

processed with a solvent must be rendered into an unusable and unrecognizable form through

grinding or another method as determined by the agency that incorporates the marihuana plant

waste with 1 or more of the following types of compostable waste so that the resulting mixture is

not less than 50% non-marihuana plant waste:

(a) Food waste.

(b) Yard waste.

(c) Vegetable based grease or oils.

(d) Other compostable wastes approved by the agency.

(3) A licensee shall manage all waste that is hazardous waste pursuant to part 111 of the natural

resources and environmental protection act, 1994 PA 451, MCL 324.11101 to 324.11153.

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(4) A marihuana product rendered unusable and unrecognizable and, therefore, considered

waste, and marihuana plant waste must be recorded in the statewide monitoring system.

(5) A licensee shall not sell marihuana waste, marihuana plant waste, or marihuana products

that are to be destroyed, or that the agency orders destroyed.

(6) A licensee shall dispose of marihuana product waste and marihuana plant waste in a secured

waste receptacle using 1 or more of the following methods that complies with applicable state

and local laws and regulations:

(a) A licensed municipal solid waste landfill.

(b) A registered composting facility that has specific approval under part 115 of the natural

resources and environmental protection act, 1994 PA 451, MCL 324.11501 to 324.11554, to

accept the material.

(c) An anaerobic digester that has specific approval under part 115 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.11501 to 324.11554, to accept the

material.

(d) An in-state municipal solid waste or hazardous waste incinerator that has been permitted

under part 55 of the natural resources and environmental protection act, 1994 PA 451, MCL

324.5501 to 324.5542.

(7) A licensee shall dispose of wastewater generated during the cultivation of marihuana and

the processing of marihuana products in a manner that complies with applicable state and local

laws and regulations.

(8) A licensee shall maintain accurate and comprehensive records regarding marihuana product

waste, and marihuana plant waste that accounts for, reconciles, and evidences all waste activity

related to the disposal. The agency may publish guidance on marihuana product waste

management.

(9) As used in this rule, “unrecognizable” means marihuana product rendered indistinguishable

from any other plant material.

(10) Under the MRMTA, a licensed marihuana microbusiness, class A marihuana

microbusiness, or marihuana retailer who participates in a temporary marihuana event shall

destroy and dispose of any marihuana product that is considered waste, and any marihuana plant

waste, resulting from the licensee’s activities during the event according to the applicable

provisions in this rule.

(11) Except for the marihuana product waste specified in subrule (10) of this rule, a marihuana

event organizer who holds a temporary marihuana event under the MRTMA is responsible for

destroying and disposing of any marihuana product waste and marihuana plant waste that results

from the event. All marihuana waste must be rendered unusable and unrecognizable and

disposed of in accordance with this rule and in compliance with all applicable state and local

laws and regulations.

(12) Under the MRMTA, a licensed designated consumption establishment shall destroy and

dispose of any marihuana product left at the establishment that is considered waste and any

marihuana plant waste, in accordance with this rule and in compliance with all applicable state

and local laws and regulations. The designated consumption establishment shall maintain a log

of any marihuana product that is considered waste, and marihuana plant waste, which must

include a description of the waste and the amount and the manner in which it was disposed. The

designated consumption establishment licensee shall make the log available to the agency upon

request.

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(13) Nothing in these rules prohibits a grower, with agency approval, from disposing of

marihuana plant waste as compost feedstock or in another organic waste method at their

marihuana business in compliance with part 111 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.11101 to 324.11153.

R 420.212 Storage of marihuana product.

Rule 12. (1) All marihuana products must be stored at a marihuana business in a secured

limited access area or restricted access area and must be identified and tracked consistently in the

statewide monitoring system under these rules.

(2) All containers used to store marihuana products for transfer or sale between marihuana

businesses must be clearly marked, labeled, or tagged, if applicable, and enclosed on all sides in

secured containers. The secured containers must be latched or locked in a manner to keep all

contents secured within. Each secured container must be identified and tracked in accordance

with the acts and these rules.

(3) All chemicals or solvents must be stored separately from marihuana products and kept in a

closed container in locked storage areas.

(4) Marihuana-infused products, edible marihuana products, or materials used in direct contact

with the marihuana-infused products or edible marihuana products, must have separate storage

areas from toxic or flammable materials.

(5) Marihuana products not in final packaging must be stored separately from other types of

marihuana product in compliance with these rules.

(6) A marihuana sales location shall store all marihuana products for transfer or sale behind a

counter or other barrier separated from stock rooms.

(7) A laboratory shall establish an adequate chain of custody and instructions for sample and

storage requirements.

(8) A licensee shall ensure that any stock or storage room meets the security requirements of

these rules and any other applicable requirements in the acts and these rules.

R 420.213 Marihuana microbusiness and class A marihuana microbusiness operation.

Rule 13. As applicable, a marihuana microbusiness and class A marihuana microbusiness

licensee shall operate the corresponding areas of a marihuana microbusiness or class A

marihuana microbusiness in compliance with the operation requirements of a marihuana retailer,

a marihuana grower, or a marihuana processor as provided for in MRTMA and these rules. A

marihuana microbusiness and class A marihuana microbusiness, if engaging in delivery, shall

operate in accordance with R 420.207.

R 420.214 Transfer of marihuana between equivalent licenses.

Rule 14. (1) The agency may authorize licensees who hold equivalent licenses under the

MRTMA with common ownership to transfer marihuana product between the inventory of their

marihuana facility and the inventory of their marihuana establishment.

(2) The following licensees who hold the following equivalent licenses with common

ownership may accept the transfer of medical marihuana product under subrule (1) of this rule:

(a) Class A marihuana growers.

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(b) Class B marihuana growers.

(c) Class C marihuana growers.

(d) Marihuana processors.

(e) Marihuana retailers.

(3) The agency shall publish a specific start date, end date, and other requirements for the

transfer of marihuana product between equivalent licenses.

(4) A licensee shall transfer marihuana product between equivalent licenses with common

ownership in accordance with these rules and any requirements published by the agency.

(5) A licensee shall track the transfer of product between equivalent licenses with common

ownership in the statewide monitoring system in accordance with these rules and any

requirements published by the agency. Marihuana plants transferred pursuant to this rule count

towards the authorized total amount of marihuana plants for a licensed cultivator.

(6) Marihuana product transferred to an equivalent license with common ownership may only

be sold or transferred in accordance with the acts and these rules.

(7) A licensee in receipt of transferred marihuana product shall track the marihuana product

sold or transferred in accordance with these rules.

R 420.214a Internal analytical testing.

Rule 14a. (1) A licensee may designate a space to perform internal analytical testing on

marihuana or a marihuana product grown or produced by the marihuana business, if all of the

following are met:

(a) The designated internal analytical testing space is fully partitioned from all other licensed

activities at the marihuana business.

(b) The designated internal analytical testing space complies with all of the requirements of R

420.209.

(c) If a licensee with a designated space for internal analytical testing is co-located with

another licensee, product from only 1 license may be in the designated space at a time.

(d) Internal analytical testing may be performed only on a product grown, harvested, or

processed by licensees under common ownership.

(2) All marihuana or a marihuana product used for internal analytical testing must be identified,

recorded, and tracked consistently in the statewide monitoring system.

(3) All marihuana or a marihuana product used for internal analytical testing must have a batch

number or an identification tag or label as assigned by the statewide monitoring system affixed

to it.

(4) No marihuana or marihuana product other than samples for testing may be stored in the

internal analytical testing space.

(5) Marihuana or a marihuana product that has undergone internal analytical testing must be

disposed of in compliance with R 420.211.

(6) Results of internal analytical testing may not be entered into the statewide monitoring

system.

(7) Any batch of marihuana or a marihuana product that has undergone internal analytical

testing must undergo full safety compliance testing, with passing test results entered into the

statewide monitoring system, prior to being sold or transferred.

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(8) Any batch of marihuana or a marihuana product that has undergone internal analytical

testing must undergo full safety compliance testing, with failing test results entered into the

statewide monitoring system, prior to making a request for remediation.

(9) The results of internal analytical testing may not be used to label a product under R 420.504.

R 420.214b Adverse reactions.

Rule 14b. (1) A licensee shall notify the agency within 1 business day of becoming aware or

within 1 business day of when the licensee should have been aware of any adverse reactions to a

marihuana product sold or transferred by any licensee.

(2) A licensee shall enter into the statewide monitoring system within 1 business day of

becoming aware of or within 1 business day of when the licensee should have been aware of any

adverse reactions to a marihuana product sold or transferred by any licensee.

R 420.214c Product returns.

Rule 14c. (1) A marihuana sales location may accept the return of marihuana product that is

reported to have caused an adverse reaction or is determined to be defective.

(2) A marihuana sales location must have a written policy for the return of marihuana product

that contains, at a minimum, the following:

(a) Product returned to a marihuana sales location must be tracked consistently in the statewide

monitoring system as waste in compliance with R 420.211.

(b) Product returned to a marihuana sales location must be destroyed in compliance with R

420.211 within 90 calendar days of when the marihuana business became aware of the fact that

the product must be destroyed.

(c) Product returned to a marihuana sales location cannot be re-sold, re-packaged, or otherwise

transferred to a customer or another marihuana business.

(d) Product returned to a marihuana sales location is prohibited from being returned to the

marihuana sales location by way of a delivery driver.

(e) A marihuana sales location that does not comply with these rules may be subject to

disciplinary proceedings.

(f) A marihuana retailer may return a marihuana product that is past its expiration date to the

marihuana processor who produced the marihuana product for destruction instead of destroying

the marihuana product.