The legalization of marijuana has undergone many changes over the last 11 years in the state of Michigan. Medical marijuana was legalized in 2008 in Michigan through the Michigan Compassionate Care Initiative, which was passed with 63% of voters. This made Michigan the 13th state in the country and the first state in the Midwest
to legalize marijuana for medical use. In 2019, Michigan became the 10th state in the country to legalize cannabis for adult recreational use.
Michigan Cannabis Cultivation Laws Can Be Complex
Entrepreneurs who wish to begin a commercial marijuana cultivation business must secure the appropriate Grower License. Grower licenses are available in Michigan for both medical use and recreational use and allow cultivation of marijuana to sell to other commercial businesses. Navigating the laws for Michigan marijuana growers, the types of grow licenses, the application process including fees and compliance can be challenging to say the least.
Early language regarding marijuana adopted the original federal statutory spelling of ‘Marihuana’, whereas more recent informal documents will reference the modern spelling of ‘Marijuana’. It all means the same and there is no cause for alarm at the different spellings.
Laws for Michigan Marijuana Growers
Obtaining a commercial marijuana growing license in Michigan allows the grower to sell marijuana plants or seeds through a secure transporter only. A commercial growing license also allows for the sale of marijuana to a processor or provisioning center.
There are many moving parts to a Michigan cultivation license including regulations and eligibility. An individual cannot have a license as a secure transporter or safety compliance facility and also have a grower’s license.
Requirement for a Caregiver
Part of obtaining a Michigan grower license includes the requirement to have a registered primary caregiver with at least two years of experience on staff as an employee.
Types of Cannabis Cultivation Licenses in Michigan 
It is important to choose the right type of license for your business needs whether you plan to cultivate marijuana for the medical industry or for adult use recreational purposes, or both. A Grower license in Michigan allows for the sale of:
- Marijuana seeds, seedlings, clones, or plants to other licensed growers
- Marijuana flower to licensed provisioning centers, retailers, and processors
- Leftover marijuana biomass, plant material, to licensed processors
Grower licenses are issued based on the plant count and all growers must abide by their licensed plant counts at all times. As part of Michigan marijuana laws, all plants must be recorded and tracked in the statewide monitoring system, Metrc.
Two types of commercial Grower licenses are available in Michigan whether cultivating marijuana for medical use or recreational use, each with varying levels of classes depending on the number of plants the business intends to cultivate.
Medical grower license types:
- Class A – 500 Plants
- Class B – 1,000 Plants
- Class C – 1,500 Plants (Note: only Class C licenses can be stacked at the same location.)
Recreational adult use grower license types:
- Class A – 100 Plants
- Class B – 500 Plants
- Class C – 2,000 Plants (Note: Class C licenses are the only Grower licenses that can be stacked at the same location.)
An adult-use recreational grower license also allows for a micro business license, allowing for operation at the same location as equivalent licenses with common ownership. As long as the business is not in violation of any local limits, regulations, or ordinances, separate areas for point-of-sale, exits and entrances as well as operations are not required.
Costs of Cannabis Cultivation License in Michigan
The costs of applying for a commercial grow license in the state of Michigan include application fees and assessment, with additional costs that may be required under the Medical Marijuana Facilities Licensing Act (MMFLA). An application fee may be required to the municipality and could be up to $5000.
A nonrefundable state license application fee offsets the cost of the Marijuana Regulatory Agency, and costs associated for investigative services including background checks of applicants by the Michigan State police. This nonrefundable state application fee is $6000.
Regulatory assessment fees are due prior to the issuing of licenses but do not apply to safety compliance facilities. Fees are capped by statute for grower A licenses at $10,000, with grower B and C licenses subject to assessment with fees ranging from $10,000 to as high as $66,000.
Pre-Qualification and License Qualification Stages
There are two stages to applying for a Michigan cannabis cultivation license, which is a long and tedious process.
During the prequalification stage, a thorough background check is conducted on the applicant as well as any additional applicants that have an interest of co ownership in the business. The prequalification stage includes a thorough background check as well as a financial review of all applicants ensuring that they are financially sound, and no suspicious sources of unexplained income exist.
There in the license qualification stage applicants are required to submit a business plan including the type of license they are seeking, the location of their facility in the plan for running the business. A cannabis cultivation plan must include detail regarding facility operations, layout and map of the facility, a plan for transportation, security, record-keeping, staffing, technology, and waste disposal.
There is no restriction on the number of licenses as regulated by the state of Michigan, although towns and cities can regulate, limit or ban the number of cannabis operations in their community.
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