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24. Estimate the ability of small businesses to absorb the costs without suffering economic harm and without
adversely affecting competition in the marketplace.
There are no expected costs to a small business that will cause economic harm to a small business or the marketplace
as a result of the proposed rules.
25. Estimate the cost, if any, to the agency of administering or enforcing a rule that exempts or sets lesser
standards for compliance by small businesses.
The proposed rules apply to all applicants and licensees, regardless of size or geographic location. Therefore,
exempting or setting lesser compliance standards for small businesses could create a potential threat to health and
safety of the state of Michigan.
26. Identify the impact on the public interest of exempting or setting lesser standards of compliance for small
businesses.
The proposed rules apply to all applicants and licensees, regardless of size or geographic location. Therefore,
exempting or setting lesser compliance standards for small businesses could create a potential threat to health and
safety of the state of Michigan.
27. Describe whether and how the agency has involved small businesses in the development of the proposed rules.
The agency worked with the Medical Marihuana Licensing Board (Board) in the development of the proposed rules.
Workgroups were also conducted that were comprised with varying levels of business owners, from small or large
businesses and members of the public and they made recommendations to the Board. Small businesses were not
exclusively included or excluded by the very nature of being a small business.
A. If small businesses were involved in the development of the rules, please identify the business(es).
Small business was involved in the development of rules only in as much as making recommendations during the
workgroups to the Board and not specifically to the agency on specifics concerning the proposed rules.
28. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.
The MMFLA and MRTMA require the agency to promulgate rules that ensure the safety, security, and integrity of the
operation of marihuana businesses. The statutes also require licensees to comply with standards and requirements for
marihuana businesses. There are costs associated with the statutory requirements implemented through the proposed
rules. This is an existing program, so the actual costs are already in place. These rules will not increase or decrease
the compliance costs.
A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the
proposed rules.
The rules apply to applicants and licensees. There could be additional businesses or groups affected by, bear the cost
of, or directly benefit from the proposed rules. Examples may be CPAs, lab equipment companies, surveillance
equipment companies, third-party integrators, and point of sale companies.
B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses
and groups. Be sure to quantify how each entity will be affected.
These proposed rules will not cause the licensees to have to invest in new equipment, supplies, labor, or accounting.
Additional recordkeeping will be required for records of formulation for marihuana product intended for inhalation.
An addtional cost will be incurred for testing marihuana product intended for inhalation.
29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or
the public). Include the costs of education, training, application fees, examination fees, license fees, new
equipment, supplies, labor, accounting, or recordkeeping.
There will be license fees set at application for all marihuana business types. An annual regulatory
assessment/renewal fee will be imposed as well. The application fee for both an adult-use and medical marihuana
facility is the same as it was previously ($6,000.00). The regulatory fee for adult-use establishments is set by rule and
did not change. The annual regulatory assessment under MMFLA is determined by the agency on an annual basis.
The current assessments (FY 2020) are as follows:
Grower Class A: $10,000 (new); $10,000 (top tier); $10,000 (middle tier); $10,000 (bottom tier)
Grower Class B: $30,000 (new); $36,000 (top tier); $30,000 (middle tier); $24,000 (bottom tier)
Grower Class C: $56,000 (new); $67,000 (top tier); $56,000 (middle tier); $45,000 (bottom tier)
Processor: $56,000 (new); $67,000 (top tier); $56,000 (middle tier); $45,000 (bottom tier)
Provisioning Center: $44,000 (new); $52,000 (top tier); $44,000 (middle tier); $36,000 (bottom tier)
Secure Transporter: $44,000 (new); $52,000 (top tier); $44,000 (middle tier); $36,000 (bottom tier)
MCL 24.245(3)