Michigan: MMFLA Fees Explained

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(image via Marijuana Politics)

The state-based fee structure for businesses applying for licensing under the state’s Medical Marihuana Facilities Licensing Act was explained in some detail during the Licensing Board’s September 12 meeting at Hawk Hollow Country Club in Bath Township, Michigan.

State-based fees fall into three different categories: Application Fees, Licensing Fees and a Regulatory Assessment.

APPLICATION FEES: This is a fee which applies to all businesses which submit an application, in all categories. It covers the essential background checks and processing of the applications. This will range from $4,000 – 8,000.

LICENSING FEES: These are fees assessed at different levels for each different business type and their sub-divisions. The only Licensing Fee which is known at this time is the fee for a 500-plant cultivation license, which is established in the language of the MMFLA at $10,000. Fees for processors, transporters, distribution centers, testing labs and cultivation sites of 1,000 and 1,500 plant sizes are not known at this time.

REGULATORY ASSESSMENT: The new MMFLA businesses have to pay the state of Michigan for all the expenses they accrue during the operation and enforcement of the program. The bill from the Attorney General’s office, the Michigan State Police and other agencies- plus a half-million dollars to LARA for running the program- are tallied up and the total amount due is divided up among the licensees across the state, which is why it is called an Assessment instead of a Fee.

The assessment is adjusted each year to reflect the changing costs of the program as it expands. For Fiscal Year 2018 the Assessment will be between $10,000 – $57,000 per applicant, based on the number of applications approved, per BMMR Director Andrew Brisbo.

Some of the other expenses any MMFLA licensee will encounter: costs associated with enrolling in the Franwell Inc. seed-to-sale program; local fees, of which one fee is capped at $5,000 per licensee; costs associated with background checks on potential key employees.

Read about the September 12th meeting of the Licensing Board and heard Director Brisbo explain the fee structure at the story below.

Source: The Social Revolution

Rick Thompson
About Rick Thompson 85 Articles
Current member of the Boards of Directors of: Michigan Comprehensive Cannabis Law Reform Committee (MILegalize), Michigan NORML; founding member, Michigan ASA, Public Relations Director, Michigan Association of Compassion Centers (defunct)