DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
MARIJUANA REGULATORY AGENCY  
MARIHUANA HEARINGS  
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 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 420.701, R 420.702, R 420.703, R 420.704, R 420.705, R 420.706, R 420.707, R 420.708, and  
R 420.709 are added to the Michigan Administrative Code as follows:  
R 420.701 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 procedures act” means the administrative procedures act of 1969, 1969 PA  
306, MCL 24.201 to 24.328.  
(c) “Agency” means the marijuana regulatory agency.  
(d) “Contested case hearing” means an administrative hearing conducted by an administrative  
law judge within the Michigan office of administrative hearings and rules on behalf of the  
agency in accordance with the acts and these rules.  
(e) “MAHS general hearing rules” means the administrative hearing rules promulgated by the  
Michigan office of administrative hearings and rules set forth in R 792.10101 to R 792.10137 of  
the Michigan administrative code.  
(f) “Marihuana business” means a marihuana facility under the medical marihuana facilities  
licensing act or a marihuana establishment under the Michigan regulation and taxation of  
marihuana act, or both.  
(g) “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.  
(h) “MOAHR” means the Michigan office of administrative hearings and rules within the  
department of licensing and regulatory affairs.  
(i) “Public investigative hearing” means a hearing in which an applicant has an opportunity to  
present testimony and evidence to establish eligibility for a marihuana license.  
November 26, 2019  
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(j) “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.  
(2) Terms defined in the acts have the same meanings when used in these rules unless  
otherwise indicated.  
R 420.702 Hearing procedures; scope and construction of rules.  
Rule 2. (1) These rules apply to hearings under the jurisdiction of the agency involving 1 or  
more of the following:  
(a) The denial of a marihuana license.  
(b) Licensing actions.  
(c) A complaint by a licensee.  
(2) These rules are construed to secure a fair, efficient, and impartial determination of the  
issues presented in a manner consistent with due process.  
(3) If the rules do not address a specific procedure, the MAHS general hearing rules, the  
Michigan court rules, and the contested case provisions of sections 71 to 87 of the administrative  
procedures act, MCL 24.271 to 24.287, apply.  
R 420.703 Public investigative hearing  
Rule 3. (1) An applicant that is denied a marihuana license by the agency may request a public  
investigative hearing in writing within 21 days of service of notice of the denial.  
(2) After the agency receives notice of an applicant’s request for a public investigative hearing,  
the agency shall provide an opportunity for this hearing at which the applicant may present  
testimony and evidence to establish suitability for a marihuana license.  
(3) The parties shall be given reasonable notice of the public investigative hearing in writing.  
The notice must include all of the following information:  
(a) A statement of the date, hour, place, and nature of the hearing.  
(b) A statement of the legal authority and jurisdiction under which the hearing is to be held.  
(c) A short and plain statement of the issues involved, and reference to the pertinent sections  
of the act and rules involved.  
(d) A short description of the order and manner of presentation for the hearing.  
(4) Not less than 2 weeks before the hearing, the agency shall post notice of the public  
investigative hearing at its business office in a prominent place that is open and visible to the  
public.  
(5) The agency, or 1 or more administrative law judges designated and authorized by the  
agency, shall conduct and preside over the public investigative hearing and shall do all of the  
following:  
(a) Administer oaths or affirmations to witnesses called to testify at the hearing.  
(b) Receive evidence in the form of testimony and exhibits.  
(c) Establish and regulate the order of presentation and course of the public investigative  
hearing; set the time and place for continued hearings; and fix the time for filing written  
arguments, legal briefs, and other legal documents.  
(d) Accept and consider relevant written and oral stipulations of fact and law that are made  
part of the hearing record.  
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(6) Upon timely request of the applicant or the agency in accordance with the Michigan court  
rules, the agency or the agency’s designated administrative law judge may issue subpoenas  
duces tecum for the production of books, ledgers, records, memoranda, electronically retrievable  
data, and other pertinent documents and administer oaths and affirmations to witnesses as  
appropriate to exercise and discharge the powers and duties under the act.  
(7) During the public investigative hearing, the applicant and the agency must be given a full  
opportunity to present witnesses, cross-examine witnesses, and present all relevant evidence  
regarding the applicant’s eligibility and suitability for licensure.  
(8) The applicant shall at all times have the burden of establishing, by clear and convincing  
evidence, its eligibility and suitability for licensure under the acts and these rules.  
(9) The agency shall record the public investigative hearing stenographically or by other  
means, to adequately ensure preservation of an accurate record of the hearing.  
(10) Following the public investigative hearing, the agency shall affirm, reverse, or modify in  
whole or in part the denial of a marihuana license.  
(11) The agency’s decision to affirm, reverse, or modify in whole or in part the denial of a  
marihuana license must be based on the whole record before the agency and not be limited to  
testimony and evidence submitted at the public investigative hearing.  
(12) The agency’s decision to affirm, reverse, or modify in whole or in part the denial of a  
marihuana license must be reduced to writing and served upon the applicant and agency within a  
reasonable time.  
R 420.704 Hearing on disciplinary proceedings actions.  
Rule 4. (1) A licensee who has been notified of a marihuana license violation, or of the  
agency’s intent to suspend, revoke, restrict, or refuse to renew a marihuana license or impose a  
fine, may be given an opportunity to show compliance with the requirements before the agency  
taking action as prescribed by these rules.  
(2) A licensee aggrieved by an action of the agency to suspend, revoke, restrict, or refuse to  
renew a marihuana license, or to impose a fine, may request a contested case hearing in writing  
within 21 days after service of notice of the intended action.  
(3) Upon receipt of a timely request, the agency shall provide the licensee an opportunity for a  
contested case hearing in accordance with sections 71 to 87 of the administrative procedures act,  
MCL 24.271 to 24.287, and the MAHS general hearing rules.  
(4) The contested case hearing must be conducted by an administrative law judge within the  
Michigan office of administrative hearings and rules.  
(5) Upon timely request of the licensee or the agency in accordance with the Michigan court  
rules, an assigned administrative law judge may issue subpoenas duces tecum for the production  
of books, ledgers, records, memoranda, electronically retrievable data, and other pertinent  
documents, and administer oaths and affirmations to witnesses as appropriate to exercise and  
discharge the powers and duties under the acts and these rules.  
(6) The agency has the burden of proving, by a preponderance of the evidence, that sufficient  
grounds exist for the intended action to suspend, revoke, restrict, or refuse to renew a state  
license, or to impose a fine, or summarily suspend a state license.  
R 420.705 Summary suspension.  
Rule 5. (1) If the agency summarily suspends a marihuana license without notice or hearing  
upon a determination that the safety or health of patrons or employees is jeopardized by  
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continuing the marihuana business’s operation, a post-suspension hearing must be held promptly  
to determine if the suspension should remain in effect, in accordance with section 92 of the  
administrative procedures act, MCL 24.292, and the MAHS general hearing rules.  
(2) At the post-suspension hearing, the agency has the burden of proving by a preponderance of  
the evidence that the summary suspension should remain in effect because the safety or health of  
patrons or employees is jeopardized by continuing the marihuana business’s operation.  
(3) Immediately after the post-suspension hearing, the administrative law judge shall issue a  
written order granting or denying dissolution of the summary suspension.  
(4) If the licensee fails to appear at the post-suspension hearing, the administrative law judge  
shall find that the safety or health of patrons or employees is jeopardized by continuing the  
marihuana business’s operation and continue the order of summary suspension.  
(5) The record created at the post-suspension hearing becomes a part of the record at any  
subsequent hearing in the contested case.  
R 420.706 Complaint by licensee.  
Rule 6. (1) In accordance with the Michigan medical marihuana facilities licensing act, and these  
rules, a licensee may file a written complaint with the agency regarding any investigative  
procedures of this state that he or she believes to be unnecessarily disruptive of the marihuana  
facility operations, as provided in section 302 of the act, MCL 333.27302.  
(2) The agency may delegate to a subcommittee of the agency the authority to hear, review, or  
rule on a licensee complaint.  
(3) The agency or its subcommittee may delegate authority to an administrative law judge to hear  
a licensee’s complaint as a contested case in accordance with sections 71 to 79 of the APA, MCL  
24.271 to 24.279, and the MAHS general hearing rules.  
(4) As the complaining party, a licensee has the burden of proving by a preponderance of the  
evidence that the investigative procedures of the agency unnecessarily disrupted its marihuana  
facility operations.  
R 420.707 Proposal for decision.  
Rule 7. Following an opportunity for a public investigative hearing or contested case hearing  
and closure of the record after submission of briefs, if any, the administrative law judge shall  
prepare and serve upon the parties a proposal for decision containing proposed findings of fact  
and conclusions of law, in accordance with section 81 of the APA, MCL 24.281.  
R 420.708 Final order.  
Rule 8. (1) The agency shall consider the entire public investigative or contested case record  
and may affirm, reverse, or modify all or part of the proposal for decision.  
(2) The agency’s decision must be reduced to writing and served upon the licensee within a  
reasonable time.  
(3) The review decision or order of the agency following an opportunity for hearing is deemed  
to be the final agency decision or order for purposes of judicial review under chapter 6 of the  
APA, MCL 24.301 to 24.306.  
R 420.709 Severability.  
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Rule 9. 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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