“A grower license authorizes the grower to grow not more than the following number of marihuana plants under the indicated license class for each license the grower holds in that class:
(a) Class A – 500 marihuana plants.
(b) Class B – 1,000 marihuana plants.
(c) Class C – 1,500 marihuana plants.” MCL 333.27501(1).
A grower license authorizes:
•the sale of marihuana plants to a grower only by means of a secure transporter, MCL 333.27501(2);
•the sale or transfer of seeds, seedlings, or tissue cultures to a grower from a registered primary caregiver or another grower is permitted without using a secure transporter, MCL 333.27501(2);
•a grower to transfer marihuana without using a secure transporter to a processor or provisioning center if “[t]he processor or provisioning center occupies the same location as the grower and the marihuana is transferred using only private real property without accessing public roadways,” and “[t]he grower enters each transfer into the statewide monitoring system,” MCL 333.27501(3);
•the sale of marihuana, other than seeds, seedlings, tissue cultures, and cuttings, to a processor or provisioning center, MCL 333.27501(4); and
•except as provided in MCL 333.27501(2)-(3) and MCL 333.27505,338 the grower to transfer marihuana only by means of a secure transporter. MCL 333.27501(5).
“To be eligible for a grower license, the applicant and each investor in the grower must not have an interest in a secure transporter or safety compliance facility.” MCL 333.27501(6).
“Until December 31, 2018, for a period of 30 days after the issuance of a grower license and in accord with rules, a grower may transfer [marihuana plants, seeds, and seedlings] that are lawfully possessed by an individual formerly registered as a primary caregiver who is an active employee of the grower[.]” MCL 333.27501(7).
“A grower shall comply with all of the following:
(a) Until December 31, 2021, have, or have as an active employee an individual who has, a minimum of 2 years’ experience as a registered primary caregiver.
(b) While holding a license as a grower, not be a registered primary caregiver and not employ an individual who is simultaneously a registered primary caregiver.
(c) Enter all transactions, current inventory, and other information into the statewide monitoring system as required in [the MMFLA], rules, and the marihuana tracking act.” MCL 333.27501(8).
“A grower license does not authorize the grower to operate in an area unless the area is zoned for industrial or agricultural uses or is unzoned and otherwise meets the requirements established in [MCL 333.27205(1)339].” MCL 333.27501(9).
A processor license authorizes:
•purchase of marihuana only from a grower;
•sale of marihuana-infused products or marihuana only to a provisioning center or another processor;
•except as provided in MCL 333.27502(2) and MCL 333.27505,340 transfer of marihuana only by means of a secure transporter; and
•transfer of marihuana without using a secure transporter to a grower or provisioning center if “[t]he grower or provisioning center occupies the same location as the processor and the marihuana is transferred using only private real property without accessing public roadways,” and “[t]he processor enters each transfer into the statewide monitoring system” MCL 333.27502(1)-(2).
“To be eligible for a processor license, the applicant and each investor in the processor must not have an interest in a secure transporter or safety compliance facility.” MCL 333.27502(3).
“Until December 31, 2018, for a period of 30 days after the issuance of a processor license and in accord with rules, a processor may transfer [marihuana plants and usable marihuana] that are lawfully possessed by an individual formerly registered as a primary caregiver who is an active employee of the processor[.]” MCL 333.27502(4)
“A processor shall comply with all of the following:
(a) Until December 31, 2021, have, or have as an active employee an individual who has, a minimum of 2 years’ experience as a registered primary caregiver.
(b) While holding a license as a processor, not be a registered primary caregiver and not employ an individual who is simultaneously a registered primary caregiver.
(c) Enter all transactions, current inventory, and other information into the statewide monitoring system as required in [the MMFLA], rules, and the marihuana tracking act.” MCL 333.27502(5).
“A secure transporter license authorizes the licensee to store and transport marihuana and money associated with the purchase or sale of marihuana between marihuana facilities for a fee upon request of a person with legal custody of that marihuana or money.” MCL 333.27503(1). A secure transporter license “does not authorize transport to a registered qualifying patient or registered primary caregiver.” Id. “If a secure transporter has its primary place of business in a municipality that has adopted an ordinance under [MCL 333.27205] authorizing that marihuana facility, the secure transporter may travel through any municipality.” MCL 333.27503(1).
“To be eligible for a secure transporter license, the applicant and each investor with an interest in the secure transporter must not have an interest in a grower, processor provisioning center, or safety compliance facility and must not be a registered qualifying patient or a registered primary caregiver.” MCL 333.27503(2).
“A secure transporter shall enter all transactions, current inventory, and other information into the statewide monitoring system as required in [the MMFLA], rules, and the marihuana tracking act.” MCL 333.27503(3).
“A secure transporter shall comply with all of the following:
(a) Each driver transporting marihuana must have a chauffeur’s license issued by this state.
(b) Each employee who has custody of marihuana or money that is related to a marihuana transaction shall not have been convicted of or released from incarceration for a felony under the laws of this state, any other state, or the United States within the past 5 years or have been convicted of a misdemeanor involving a controlled substance within the past 5 years.
(c) Each vehicle must be operated with a 2-person crew with at least 1 individual remaining with the vehicle at all times during the transportation of marihuana.
(d) A route plan and manifest must be entered into the statewide monitoring system, and a copy must be carried in the transporting vehicle and presented to a law enforcement officer upon request.
(e) The marihuana must be transported in 1 or more sealed containers and not be accessible while in transit.
(f) A secure transporting vehicle must not bear markings or other indication that it is carrying marihuana or a marihuana-infused product.” MCL 333.27503(4).
“A secure transporter is subject to administrative inspection by a law enforcement officer at any point during the transportation of marihuana to determine compliance with [the MMFLA].” MCL 333.27503(5).
D.Provisioning Center License
A provisioning center license authorizes:
•the purchase or transfer of marihuana only from a grower or processor;
•the sale or transfer of marihuana only to a registered qualifying patient or registered primary caregiver; and
•the transfer of marihuana to or from a safety compliance facility for testing by means of a secure transporter or as provided in MCL 333.27505. MCL 333.27504(1)-(2).
“Except as otherwise provided in [MCL 333.27505] and [MCL 333.27504(1)] all transfers of marihuana to a provisioning center from a separate marihuana facility must be by means of a secure transporter.” MCL 333.27504(1). “A transfer of marihuana to a provisioning center from a marihuana facility that occupies the same location as the provisioning center does not require a secure transporter if the marihuana is transferred to the provisioning center using only private real property without accessing public roadways.” MCL 333.27504(1).
“To be eligible for a provisioning center license, the applicant and each investor in the provisioning center must not have an interest in a secure transporter or safety compliance facility.” MCL 333.27504(3).
“A provisioning center shall comply with all of the following:
(a) Sell or transfer marihuana to a registered qualifying patient or registered primary caregiver only after it has been tested and bears the label required for retail sale.
(b) Enter all transactions, current inventory, and other information into the statewide monitoring system as required in this act, rules, and the marihuana tracking act.
(c) Before selling or transferring marihuana to a registered qualifying patient or to a registered primary caregiver on behalf of a registered qualifying patient, inquire of the statewide monitoring system to determine whether the patient and, if applicable, the caregiver hold a valid, current, unexpired, and unrevoked registry identification card and that the sale or transfer will not exceed the daily and monthly purchasing limit established by [the Cannabis Regulatory Agency341] under [the MMFLA].
(d) Not allow the sale, consumption, or use of alcohol or tobacco products on the premises.
(e) Not allow a physician to conduct a medical examination or issue a medical certification document on the premises for the purpose of obtaining a registry identification card.” MCL 333.27504(4).
E.Safety Compliance Facility License
“In addition to transfer and testing authorized in [MCL 333.27203342], a safety compliance facility license authorizes the safety compliance facility to do all of the following without using a secure transporter:
(a) Take marihuana from, test marihuana for, and return marihuana to only a marihuana facility.
(b) Collect a random sample of marihuana at the marihuana facility of a grower, processor, or provisioning center for testing.” MCL 333.27505(1).
“A safety compliance facility must be accredited by an entity approved by the [Cannabis Regulatory Agency343] by 1 year after the date the license is issued or have previously provided drug testing services to this state or this state’s court system and be a vendor in good standing in regard to those services.” MCL 333.27505(2). “The board may grant a variance from this requirement upon a finding that the variance is necessary to protect and preserve the public health, safety, or welfare.” Id.
“To be eligible for a safety compliance facility license, the applicant and each investor with any interest in the safety compliance facility must not have an interest in a grower, secure transporter, processor, or provisioning center.” MCL 333.27505(3).
“A safety compliance facility shall comply with all of the following:
(a) Perform tests to certify that marihuana is reasonably free of chemical residues such as fungicides and insecticides.
(b) Use validated test methods to determine tetrahydrocannabinol, tetrahydrocannabinol acid, cannabidiol, and cannabidiol acid levels.
(c) Perform tests that determine whether marihuana complies with the standards the board establishes for microbial and mycotoxin contents.
(d) Perform other tests necessary to determine compliance with any other good manufacturing practices as prescribed in rules.
(e) Enter all transactions, current inventory, and other information into the statewide monitoring system as required in this act, rules, and the marihuana tracking act.
(f) Have a secured laboratory space that cannot be accessed by the general public.
(g) Retain and employ at least 1 staff member with a relevant advanced degree in a medical or laboratory science.” MCL 333.27505(4).
F.Third-Party Inventory Control and Tracking
“Except as otherwise provided in MCL 333.27207(2),344 a licensee shall adopt and use a third-party inventory control and tracking system that is capable of interfacing with the statewide monitoring system to allow the licensee to enter or access information in the statewide monitoring system as required under [the MMFLA] and rules.” MCL 333.27207(1). Several specific capabilities are required by statute for whatever inventory control and tracking system a licensee adopts. Id.
338.MCL 333.27505 addresses safety compliance facilities. See Section 8.11(E).
339.MCL 333.27205(1) prohibits the issuance of “a state operating license to an applicant unless the municipality in which the applicant’s proposed marihuana facility will operate has adopted an ordinance that authorizes that type of facility.” MCL 333.27205 also allows a municipality to adopt other ordinances relating to marihuana facilities within its jurisdiction, including zoning regulations, and sets forth the information a municipality permitting marihuana facilities must send to the Marijuana Regulatory Agency (MRA). MCL 333.27205 references the Medical Marihuana Licensing Board and the Department of Licensing and Regulatory Affairs (LARA). However, Executive Order No. 2019-07, compiled at MCL 333.27001, abolished the board and created the MRA as a Type I agency within LARA, transferring all of the “authorities, powers, duties, functions, and responsibilities” of the board and LARA under the MMFLA to the MRA. MCL 333.27001. The MRA was renamed the Cannabis Regulatory Agency by Executive Order No. 2022-1, which provides that “a reference to the Marijuana Regulatory Agency will be deemed to be a reference to the [Cannabis Regulatory] Agency.”
340.MCL 333.27505 addresses safety compliance facilities. See Section 8.11(E).
341.MCL 333.27504 references the Medical Marihuana Licensing Board. However, Executive Order No. 2019-07, compiled at MCL 333.27001, abolished the board and created the Marijuana Regulatory Agency (MRA), transferring “all of the authorities, powers, duties, functions, and responsibilities” of the board under the Medical Marihuana Facilities Licensing Act to the MRA. MCL 333.27001. The MRA was renamed the Cannabis Regulatory Agency by Executive Order No. 2022-1, which provides that “a reference to the Marijuana Regulatory Agency will be deemed to be a reference to the [Cannabis Regulatory] Agency.”
342.“A registered qualifying patient or registered primary caregiver is not subject to criminal prosecution or sanctions for purchasing marihuana from a provisioning center if the quantity purchased is within the limits established under the [MMMA]. A registered primary caregiver is not subject to criminal prosecution or sanctions for any transfer of 2.5 ounces or less of marihuana to a safety compliance facility for testing.” MCL 333.27203.
343.MCL 333.27505 references the Medical Marihuana Licensing Board. However, Executive Order No. 2019-07, compiled at MCL 333.27001, abolished the board and created the Marijuana Regulatory Agency (MRA), transferring “all of the authorities, powers, duties, functions, and responsibilities” of the board under the Medical Marihuana Facilities Licensing Act to the MRA. MCL 333.27001. The MRA was renamed the Cannabis Regulatory Agency by Executive Order No. 2022-1, which provides that “a reference to the Marijuana Regulatory Agency will be deemed to be a reference to the [Cannabis Regulatory] Agency.”
344.Use of a third-party inventory control is unnecessary if the statewide monitoring system allows licensees to access or enter information without the use of a third-party inventory control and tracking system. MCL 333.27207(2).