RIS-Page 6
The majority of the changes being made are organizational or are codifying existing requirements. These changes
will not increase compliance costs. Improved organization and clarity may reduce compliance costs. Specific
substantive changes may increase compliance costs for some businesses and reduce compliance costs for others or
have a mixed effect.
A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the
proposed rules.
Licensed marijuana businesses in Michigan. Specifically, retailers, class A marihuana microbusinesses, designated
consumption establishments, and marihuana event organizers will directly benefit from the proposed rules.
Depending on their current SOPs, cultivators and producers may need to adjust processes to comply with additional
requirements for reporting in the statewide monitoring system, and producers may need to adjust processes to comply
with new rules designed to improve consumer safety, for example, new rules requiring serving sizes be more clear
and certificates of analysis be maintained for all non-marijuana ingredients used in consumables, something currently
required in MDARD rule..
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.
It is unlikely that the proposed rules will require licensees to purchase new equipment. Additional time and
recordkeeping may be required. The cost of these new requirements will vary based on characteristics unique to each
business. For example, costs to submit additional types of changes to a marihuana business will vary depending on
the frequency and volume of changes a business makes. The costs to reconcile revenue monthly and audit inventory
will vary based on the size of the business and the quality of records kept. Additional testing may be required.
Licensees that do not currently operate surveillance systems with web-based access may have to update their
equipment.
27. 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.
Statewide compliance costs are difficult to estimate. Depending on the license type, specific business plans and
goals, and the efficiency of a business’ processes, costs could be significantly reduced or modestly increased.
Proposed changes that could increase costs include:
- Requiring licensees to reconcile revenue monthly and perform physical audits of inventory every 6 months.
Recordkeeping costs will vary depending on the size of the business and the efficiency of processes.
- Requiring licensees to enter additional information into the statewide monitoring system, including the specific
location of marihuana, product expiration dates, the amount of raw product used in processing, and new items.
Recordkeeping costs will vary depending on the size of the business and the efficiency of processes.
- Requiring growers to have one employee obtain pesticide applicator certification from MDARD. The application
fee is $75.
- Requiring licensees to better indicate serving sizes and doses. Costs will vary depending on a business’ existing
practices and the option they choose to comply.
- Requiring licensees to provide the agency with access to the surveillance system may require a licensee that does
not currently operate a system with web-based access to upgrade their system capabilities. Compliance costs will
vary depending on the capabilities of the existing surveillance system and any upgrades required.
- Requiring all marihuana transferred to processors to undergo testing will increase costs for growers. Costs will vary
by licensee and depend on the quantities shipped to processors use in creating infused or extracted products.
A. How many and what category of individuals will be affected by the rules?
Different license types will have different requirements. As of September 2024, there were the following number of
active licenses (note, one business can hold multiple licenses): medical grower A – 28, medical grower B – 13,
medical grower C – 1858, medical processor – 113, medical provisioning center – 183, medical secure transporter –
19, medical safety compliance facility – 20, adult-use (AU) grower A – 11, AU grower B – 113, AU grower C – 840,
AU excess grower – 67, AU processor – 277, AU retailer – 835, AU class A microbusiness – 12, AU microbusiness –
7, AU secure transporter – 22, AU safety compliance facility – 22, AU designated consumption establishment – 3,
AU educational research license – 1, AU marihuana event organizer – 45.
MCL 24.245(3)