Advance Notice: Briefs

New state rules smooth the road for recreational pot businesses

By: - July 3, 2019 5:25 pm
Updated 3:58 p.m., 7/5/19

New rules announced Wednesday by the Michigan Department of Licensing and Regulatory Affairs (LARA) will make it easier for upstart pot businesses to open their doors.

LARA announced it will scrap the minimum capital requirements that had been in place, among other measures. Local communities will have four months to take stock of the new rules before deciding if they want to opt out of the licensing of marijuana businesses.

Shops will now be required to file fewer financial documents as part of their license applications, as well. The new rules also allow retailers to deliver to “designated consumption establishments” and registered marijuana cardholders’ homes, according to a statement from LARA.*

The rules will be in effect for six months, and could be extended by another six months as the newly established Marijuana Regulatory Agency (MRA) rolls out permanent rules for the growing market.

The MRA will begin accepting license applications on Nov. 1.

Michigan residents will be allowed to apply to organize marijuana-based events, establish businesses where people will be allowed to smoke pot or consume food infused with marijuana, and apply for licenses to exceed the state limits on commercial growing, as long as they match that with medicinal growing.

“The release of the rules today provides local municipalities and prospective licensees with the information they need to decide how they want to participate in this new industry,” said MRA Executive Director Andrew Brisbo. “These rules set Michigan’s marijuana industry on a path for success while ensuring safety for marijuana consumers.

*This story was updated to accurately reflect the new marijuana delivery rules.

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Michael Gerstein
Michael Gerstein

Michael Gerstein is a former Advance reporter covering the Governor's office, criminal justice and the environment.