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The harm that will result is that there are no codified consequences for licensees who are not in compliance with a
statute and/or rules related to the operation of their marihuana business. This could impact the health, safety, and
welfare of marihuana product consumers because not all licensees may be held accountable for their noncompliance in
a similar fashion.
A. What is the rationale for changing the rules instead of leaving them as currently written?
The rationale for creating these rules is because there are currently no administrative rules that cover this topic.
8. Describe how the proposed rules protect the health, safety, and welfare of Michigan citizens while promoting a
regulatory environment in Michigan that is the least burdensome alternative for those required to comply.
The proposed rules create consistent consequences for licensees who are found to be non-compliant with a statute
and/or administrative rule as it pertains to the operation of their marihuana business. This also helps with transparency
of the agency’s processes for licensees who are non-compliant.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
There are no rules in the affected rule set that are obsolete or unnecessary.
10. Please provide the fiscal impact on the agency (an estimate of the cost of rule imposition or potential savings
for the agency promulgating the rule).
There will be no fiscal impact on the agency. The agency already manages both medical marihuana facilities
licensing and adult-use marihuana licensing.
11. Describe whether or not an agency appropriation has been made or a funding source provided for any
expenditures associated with the proposed rules.
No appropriations have been made to any governmental units because of these rules. No additional expenditures are
anticipated or intended with the proposed rules.
12. Describe how the proposed rules are necessary and suitable to accomplish their purpose, in relationship to the
burden(s) the rules place on individuals. Burdens may include fiscal or administrative burdens, or duplicative
acts.
The rules must ensure the safety, security, and integrity of the operation of marihuana businesses. Any burdens would
be in place as required by the MMFLA, MTA, and MRTMA. The application/licensing process requires
documentation, fingerprinting, etc. That will be at a financial and administrative cost. There are rules required for the
use of a statewide monitoring system which will place a burden on the individual but is statutorily required. These
items are already in place so there will be no increased burden.
A. Despite the identified burden(s), identify how the requirements in the rules are still needed and reasonable
compared to the burdens.
The rules must ensure the safety, security, and integrity of the operation of marihuana facilities. Any burden is
reasonable in the proposed rules as it complies with the statutory requirement for its consideration.
13. Estimate any increase or decrease in revenues to other state or local governmental units (i.e. cities, counties,
school districts) as a result of the rule. Estimate the cost increases or reductions for other state or local
governmental units (i.e. cities, counties, school districts) as a result of the rule. Include the cost of equipment,
supplies, labor, and increased administrative costs in both the initial imposition of the rule and any ongoing
monitoring.
There are no anticipated increases or decreases in revenues or costs to other state or local government units as a result
of the proposed rules. Any local or state change to revenue may occur via the statutory provisions as it concerns how
the funds, fees, or taxes are allocated or expended. The agency is required to set an application fee pursuant to the
MMFLA and MRTMA and has set the fee at $6,000 to offset the background investigations, administration of the
licensing application, etc. The other statutorily imposed fee is the annual regulatory assessment/renewal fee set forth
in the MMFLA and MRTMA which will be deposited in the marihuana regulatory fund.
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school
district by the rules.
These rules do not impose any duties/responsibilities on cities, counties, towns, villages, or school districts, other
than the current duties to adopt ordinances to opt-in to allow medical marihuana facilities if they choose, or to opt out
of adult-use marihuana establishments if they choose.
A. Describe any actions that governmental units must take to be in compliance with the rules. This section should
include items such as record keeping and reporting requirements or changing operational practices.
There are no anticipated actions that a governmental unit must take to comply with these proposed rules.
MCL 24.245(3)