DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
MARIJUANA REGULATORY AGENCY  
MARIHUANA SALE OR TRANSFER  
Filed with the secretary of state on June 22, 2020  
These rules take effect immediately upon filing with the secretary of state unless adopted under  
section 33, 44, or 45a(6) 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 marihuana 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 420.501, R 420.502, R 420.503, R 420.504, R 420.505, R 420.506, R 420.507, R 420.508, R  
420.509, R 420.510, and R 420.511 are added to the Michigan Administrative Code as follows:  
R 420.501 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) “Batch” means all marihuana product of the same variety that has been processed together  
and exposed to substantially similar conditions throughout processing.  
(e) “Cultivator” means a grower under the medical marihuana facilities licensing act or a  
marihuana grower under the Michigan regulation and taxation of marihuana act, or both.  
(f) “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.  
(g) “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.  
(h)"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.  
March 12, 2020  
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(i) “Internal product sample” means a sample of products possessed by a cultivator, producer,  
or marihuana sales location that is provided directly to an employee for the purpose of ensuring  
product quality and making determinations about whether to sell the marihuana product.  
(j) “Laboratory” refers to a safety compliance facility under the medical marihuana facilities  
licensing act or a marihuana safety compliance facility under the Michigan regulation and  
taxation of marihuana act, or both.  
(k) “Marihuana business” refers to 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.  
(l) “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.  
(m) “Marihuana equivalent” means usable marihuana equivalent as that term is defined in  
section 3(o) of the Michigan medical marihuana act, MCL 333.26424.  
(n) “Marihuana establishment” means a location at which a licensee is licensed to operate 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 to operate by the agency under the Michigan regulation and taxation of  
marihuana act.  
(o) “Marihuana facility” means a location at which a licensee is licensed to operate under the  
medical marihuana facilities licensing act.  
(p) “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.  
(q) “Marihuana sales location” refers to a provisioning center under the medical marihuana  
facilities licensing act, or a marihuana retailer or marihuana microbusiness under the Michigan  
regulation and taxation of marihuana act, or both.  
(r) “Marihuana tracking act” means the marihuana tracking act, 2016 PA 282, MCL 333.27901  
to 333.27904.  
(s) “Medical marihuana facilities licensing act” or “MMFLA” means the medical marihuana  
facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.  
(t) “Michigan medical marihuana act” means the Michigan Medical Marihuana Act, 2008 IL 1,  
MCL 333.26421 to 333.26430.  
(u) “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.  
(v) “Package tag” means an RFID tag supplied through the statewide monitoring system for the  
purpose of identifying a package containing a marihuana product.  
(w) “Plant” means that term as defined in section 102 of the MMFLA, MCL 333.27102, unless  
otherwise defined in these rules.  
(x) “Producer” means a processor under the medical marihuana facilities licensing act or a  
marihuana processor under the Michigan regulation and taxation of marihuana act, or both.  
(y) “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.  
(z) “Tag” or “RFID tag” means the unique identification number or Radio Frequency  
Identification (RFID) issued to a licensee by the agency for tracking, identifying, and verifying  
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marihuana plants, marihuana products, and packages of marihuana products in the statewide  
monitoring system.  
(aa) “Trade sample” means a sample of marihuana products provided to licensees by a  
cultivator or producer for the purpose of determining whether to purchase the marihuana product.  
(2) Terms defined in the acts have the same meanings when used in these rules unless otherwise  
indicated.  
R 420.502 Tracking identification; labeling requirements; general.  
Rule 2. (1) All marihuana products sold or transferred between marihuana businesses must have  
the tracking identification numbers that are assigned by the statewide monitoring system affixed,  
tagged, or labeled and recorded, and any other information required by the agency, the acts, and  
these rules.  
(2) To ensure access to safe sources of marihuana products, the agency, if alerted in the  
statewide monitoring system, may place an administrative hold on marihuana products, recall  
marihuana products, issue safety warnings, and require a marihuana business to provide  
information material or notifications to a marihuana customer at the point of sale.  
(3) A marihuana business shall not sell or transfer marihuana product that has been placed on  
administrative hold, recalled, or ordered to be destroyed.  
(4) A marihuana business must verify in the statewide monitoring system, prior to any sale or  
transfer, that the marihuana product has not been placed on an administrative hold, recalled, or  
ordered to be destroyed.  
R 420.503 Marihuana plant; tracking requirements  
Rule 3. Before a marihuana plant is sold or transferred, a package tag must be affixed to the plant  
or plant container and enclosed with a tamper proof seal that includes all of the following  
information:  
(a) Business or trade name, licensee number, and the RFID package tag assigned by the statewide  
monitoring system that is visible.  
(b) Name of the strain.  
(c) Date of harvest, if applicable.  
(d) Seed strain, if applicable.  
(e) Universal symbol, if applicable.  
R 420.504 Marihuana product sale or transfer; labeling and packaging requirements.  
Rule 4. (1) Before a marihuana product is sold or transferred to or by a marihuana sales location,  
the container, bag, or product holding the marihuana product must be sealed and labeled with all  
of the following information:  
(a) The name and the state license number of the producer, including business  
or trade name, and tag and source number as assigned by the statewide monitoring system.  
(b)The name and the marihuana license number of the licensee that packaged the product,  
including business or trade name, if different from the producer of the marihuana product.  
(c) The unique identification number for the package or the harvest, if applicable.  
(d) Date of harvest, if applicable.  
(e) Name of strain, if applicable.  
(f) Net weight in United States customary and metric units.  
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(g) Concentration of Tetrahydrocannabinol (THC) and cannabidiol (CBD) as reported by the  
laboratory after potency testing along with a statement that the actual value my vary from the  
reported value by 10%.  
(h) Activation time expressed in words or through a pictogram.  
(i) Name of the laboratory that performed any test, any associated test batch number, and any  
test analysis date.  
(j) The universal symbol for marihuana product published on the agency’s website.  
(k) A warning that states all the following:  
(i) "It is illegal to drive a motor vehicle while under the influence of marihuana."  
(ii) “National Poison Control Center 1-800-222-1222.”  
(iii) For products being sold by a licensee under the medical marihuana facilities licensing act  
that exceed the maximum THC levels allowed for products sold under MRTMA, “For use by  
registered qualifying patients only. Keep out of reach of children.”  
(iv) For all other products being sold by a licensee “For use by individuals 21 years of age or  
older or registered qualifying patients only. Keep out of reach of children.”  
(2) An edible marihuana product sold by a marihuana sales location shall comply with R  
420.403(7).  
R 420.505 Sale or transfer; marihuana sales location.  
Rule 5. (1) A marihuana sales location may sell or transfer marihuana or a marihuana product to  
a marihuana customer if all of the following are met:  
(a) The marihuana product has not been placed on administrative hold, recalled, or ordered to  
be destroyed.  
(b) The licensee confirms that the marihuana customer presented his or her valid driver’s  
license or government-issued identification card that bears a photographic image of the  
qualifying patient or primary caregiver, under the medical marihuana facilities licensing act; or  
bears a photographic image and proof that the individual is 21 years of age or older, under the  
Michigan regulation and taxation of marihuana act.  
(c) The licensee determines the completed transfer or sale will not exceed the purchasing limit  
prescribed in R 420.506.  
(d) Any marihuana product that is sold or transferred under this rule has been tested in  
accordance with R 420.305 and is labeled and packaged for sale or transfer in accordance with R  
420.504.  
(e) A licensee selling marihuana product pursuant to the medical marihuana facilities licensing  
act verifies with the statewide monitoring system that the registered qualifying patient or  
registered primary caregiver holds a valid, current, unexpired, and unrevoked registry  
identification card.  
(2) A marihuana sales location shall enter all transactions, current inventory, and other  
information required by these rules in the statewide monitoring system in compliance with the  
acts and these rules. The marihuana sales location shall maintain appropriate records of all sales  
or transfers under the acts and these rules and make them available to the agency upon request.  
(3) A provisioning center licensed under the medical marihuana facilities licensing act may sell  
or transfer a marihuana product to a visiting qualifying patient if all of the following are met:  
(a) The licensee verifies that the visiting qualifying patient has a valid unexpired medical  
marihuana registry card, or its equivalent issued in another state, district, territory,  
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commonwealth, or insular possession of the United States that allows the medical use of  
marihuana.  
(b) The licensee confirms that the visiting qualifying patient presented his or her valid driver  
license or government-issued identification card that bears a photographic image of the visiting  
qualifying patient.  
(c) The licensee determines, if completed, that any transfer or sale will not exceed the  
purchasing limit prescribed in R 420.506.  
(d) Any marihuana product that is sold or transferred under this rule has been tested in  
accordance with R 420.305 and is labeled and packaged for sale or transfer in accordance with R  
420.504.  
(e) As used in this subrule, “visiting qualifying patient” means that term as defined in section 3  
of the Michigan medical marihuana act, MCL 333.26423.  
(4) A marihuana retailer or microbusiness licensed under the Michigan regulation and taxation  
of marihuana act is not required to retain information from customers other than the following:  
(a) Payment method.  
(b) Amount of payment.  
(c) Time of sale.  
(d) Product quantity.  
(e) Other product descriptors.  
R 420.506 Purchasing limits; transactions; marihuana sales location  
Rule 6. (1) Before the sale or transfer of marihuana product to a registered qualifying patient or  
registered primary caregiver, under the medical marihuana facilities licensing act, the licensee  
shall verify in the statewide monitoring system that the sale or transfer does not exceed either of  
the daily purchasing limits as follows:  
(a) For a registered qualifying patient, an amount of marihuana product that does not, in total,  
exceed 2.5 ounces of marihuana or marihuana equivalent per day.  
(b) For a registered primary caregiver, an amount of marihuana product that does not, in total,  
exceed 2.5 ounces of marihuana or marihuana equivalent per day for each registered qualifying  
patient with whom he or she is connected through the agency’s registration process.  
(2) Before the sale or transfer of marihuana product to a registered qualifying patient or registered  
primary caregiver, under the medical marihuana facilities licensing act, the licensee shall verify in  
the statewide monitoring system that the sale or transfer does not exceed the monthly purchasing  
limit of 10 ounces of marihuana product per month to a qualifying patient, either directly or  
through the qualifying patient’s registered primary caregiver.  
(3) A marihuana retailer, under the Michigan regulation and taxation of marihuana act, is  
prohibited from making a sale or transferring marihuana to an adult 21 years of age or older in a  
single transaction that exceeds 2.5 ounces, except that not more than 15 grams of marihuana may  
be in the form of marihuana concentrate.  
(4) A marihuana sales location may sell no more than 3 immature plants to a marihuana customer  
per transaction.  
R 420.507 Marketing and advertising restrictions.  
Rule 7. (1) A marihuana product may only be advertised or marketed in a way that complies with  
all municipal ordinances, state law, and these rules that regulate signs and advertising.  
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(2) Marihuana product must not be advertised in a way that is deceptive, false, or misleading. A  
person shall not make any deceptive, false, or misleading assertions or statements on any  
marihuana product, sign, or document provided.  
(3) Marihuana product marketing, advertising, packaging, and labeling must not contain any  
claim related to health or health benefits, unless a qualified health claim has received and complies  
with a Letter of Enforcement Discretion issued by the United States Food and Drug Administration  
(FDA), or the health claim has been approved under the significant scientific agreement standard  
by the FDA.  
(4) Marihuana product must not be advertised or marketed to members of the public unless the  
person advertising the product has reliable evidence that no more than 30 percent of the audience  
or readership for the television program, radio program, internet website, or print publication, is  
reasonably expected to be under the age listed in subrules (7) and (8) of this rule. Any marihuana  
product advertised or marketed under this rule must include the warnings listed in R 420.504(1)(k).  
(5) 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, is responsible for any marketing or advertising undertaken by either party to the  
agreement.  
(6) A marihuana product under the medical marihuana facilities licensing act must be marketed  
or advertised as “medical marihuana” for use only by registered qualifying patients or registered  
primary caregivers.  
(7) A marihuana product under the medical marihuana facilities licensing act must not be  
marketed or advertised to minors aged 17 years or younger. Sponsorships targeting individuals  
aged 17 years or younger are prohibited.  
(8) A marihuana product under the Michigan regulation and taxation of marihuana act must be  
marketed or advertised as “marihuana” for use only by individuals 21 years of age or older.  
(9) A marihuana product under the Michigan regulation and taxation of marihuana act must not  
be marketed or advertised to individuals under 21 years of age. Sponsorships targeting individuals  
under 21 years of age are prohibited.  
R 420.508 Trade samples.  
Rule 8. (1) The following licensees may provide trade samples:  
(a) A cultivator may provide samples of marihuana products to a producer or a marihuana sales  
location.  
(b) A producer may provide samples of marihuana products to a producer or marihuana sales  
location.  
(2) The transfer of trade samples does not require the use of a secure transporter under the  
MMFLA or a marihuana secure transporter under the MRTMA if the amount of trade samples  
does not exceed either:  
(a) 15 ounces of marihuana.  
(b) 60 grams of marihuana concentrate.  
(3) Trade samples must not be sold to another licensee or consumer.  
(4) Any sample provided to another licensee or received by a licensee must be recorded in the  
statewide monitoring system.  
(5) Any trade samples provided under this rule must be tested in accordance with these rules  
prior to being transferred to another licensee.  
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(6) A licensee is limited to providing the following aggregate amounts of trade samples to another  
licensee in a 30-day period:  
(a) 2.5 ounces of marihuana.  
(b) 15 grams of marihuana concentrate.  
(7) Any sample given to a licensee must have a label containing the following in a legible font:  
(a) A statement that reads: “TRADE SAMPLE NOT FOR RESALE” in bold, capital letters  
attached to the trade sample.  
(b) All other information required in R 420.403.  
(8) A licensee who receives a trade sample may distribute the trade sample to its employees to  
determine whether to purchase the marihuana product.  
R 420.509 Internal product samples.  
Rule 9. (1) A cultivator, producer, marihuana sales location, or marihuana microbusiness may  
provide internal product samples directly to its employees for the purpose of ensuring product  
quality and making determinations about whether to sell the marihuana product.  
(2) Internal product samples may not be transferred or sold to another licensee or consumer.  
(3) Any internal product sample provided under this rule must be recorded in the statewide  
monitoring system.  
(4) A cultivator is limited to providing a total of 1 ounce of internal product samples to each of  
their employees in a 30-day period.  
(5) A producer is limited to providing a total of 2 grams of marihuana concentrate and marihuana  
infused products with a total THC content of 2000 mgs of internal product samples to each of their  
employees in a 30-day period.  
R 420.510 Product development.  
Rule 10. (1) A cultivator or producer may engage in product development. No other marihuana  
business may engage in product development.  
(2) A cultivator may designate marihuana plants for product development. Any marihuana plants  
designated for product development count towards the authorized total amount of marihuana  
plants for a cultivator and must be tracked in the statewide monitoring system.  
(3) A producer may designate marihuana concentrate for product development. Any marihuana  
concentrates designated for product development must be tracked in the statewide monitoring  
system.  
(4) A licensee engaged in product development may submit their product development inventory  
to a laboratory for research and development testing in accordance with these rules.  
(5) Disciplinary action shall not be taken against a licensee for failed research and development  
test results on their product development inventory.  
(6) A licensee authorized under this rule to engage in product development may transfer its  
product development inventory to its employees for consumption. A licensee shall have product  
development inventory tested pursuant to R 420.304 and R 420.305 before transfer to its  
employees. The licensee shall not transfer or sell product development inventory to a marihuana  
sales location until after test results in the statewide monitoring system indicate a passed test. Any  
product development inventory that is not properly transferred to an employee must be destroyed  
pursuant to these rules.  
(7) The inventory designated for product development may not be consumed or used on the  
premises of the licensee.  
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(8) A licensee shall not transfer or sell inventory designated for product development to a  
marihuana sales location, or to a marihuana customer, until after test results in the statewide  
monitoring system indicate a passed test.  
(9) A licensee authorized under this rule to engage in product development may also engage in  
a research study with a college, university, or hospital approved by the United States Food and  
Drug Administration and sponsored by a non-profit organization or researcher within an academic  
institution researching marihuana. A licensee’s participation in a research study must be approved  
by the agency.  
(10) A licensee participating in an approved research study shall track all marihuana product  
involved in the research study in the statewide monitoring system.  
R 420. 511 Severability.  
Rule 11. 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.  
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