C. What is the desired outcome?
The desired outcome is to achieve greater consistency in the authorized licenses’ operational areas for marihuana
related business for medical marihuana facilities and adult-use establishments and create new licenses to assist the
industry in continuing to grow.
7. Identify the harm resulting from the behavior that the proposed rules are designed to alter and the likelihood
that the harm will occur in the absence of the rule.
The harm that will result is that businesses are not operated consistently across licenses and across the MMFLA and
MRTMA. Businesses will not be able to continue to operate or begin operating compliantly. Businesses may fail.
There is also a risk that licensees will not be subject to the same criteria. This will affect consumer safety, if all
businesses are not held to the same standards. In the absence of these rule changes this harm is likely to occur on a
A. What is the rationale for changing the rules instead of leaving them as currently written?
The rationale for changing these rules is to create greater consistency in licensing practices and authority for all
marihuana businesses to operate. This cannot be done with the rules as currently written.
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 rule changes help ensure that eligible individuals who obtain licenses to grow, process, test, transport,
and sell marihuana products to residents of the state of Michigan will be treated consistently across the medical and
adult-use licenses. The proposed rule changes contain specific criteria to ensure that individuals who are issued
licenses are treated equally and that it is easier for them to be compliant with all of the administrative rules regulating
marihuana businesses, including safety testing standards that protect the public health, safety, and welfare.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
These rules are updating the Marihuana Licensees Rule Set (R 420.101 to R 420.113). The proposed rule changes do
not make any other rules obsolete, unnecessary, or proper for rescission.
Fiscal Impact on the Agency
Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, i.e. hiring additional staff,
higher contract costs, programming costs, changes in reimbursements rates, etc. over and above what is currently
expended for that function. It does not include more intangible costs for benefits, such as opportunity costs, the value of
time saved or lost, etc., unless those issues result in a measurable impact on expenditures.
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 rule changes. No additional
expenditures are anticipated or intended with the proposed rule changes.
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
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 businesses. Any burden is
reasonable in the proposed rule changes as it complies with the statutory requirement for its consideration.