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The desired outcome is to protect the public health, safety, and welfare of marihuana users, both medical marihuana
patients, and adult-use consumers by ensuring that product is sold according to the required standards, not marketed in
a false, deceptive manner, or to minors, includes all statutorily required items on labels, and that medical and adult-use
businesses have greater clarity regarding trade samples and internal samples and engage in approved research and
development.
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 marihuana product will be marketed inappropriately, sold inconsistently, and
businesses will not have the opportunity to develop the best products for the consumers. This could impact the health,
safety, and welfare of marihuana product consumers.
A. What is the rationale for changing the rules instead of leaving them as currently written?
The rationale for changing these rules it to create greater consistency in the sale, marketing, and product of marihuana
products through trade samples, internal samples, and research and development. 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 create consistent requirements for marketing marihuana products that hold a person
accountable for marketing. They create greater clarity relating to research and develop surrounding marijuana and its
use. They provide increased clarity relating to trade samples, and internal samples, so that product can be crafted to
best satisfy patients and adult-use consumer needs.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
These rules are updating the Marihuana Sale or Transfer Rule Set (R 420.501 to R 420.511). 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
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 businesses. Any burden is
reasonable in the proposed rule changes as it complies with the statutory requirement for its consideration.
MCL 24.245(3)