COMPLIANCE IN THE GREAT LAKE STATE - Cannabis Regulations for Michigan Businesses
Oct 17th 2022
Recreational cannabis was introduced to the Michigan market after voters approved the proposal by a 56-44 margin on November 6, 2018. As the 10th state in the nation to offer recreational sales, and the first midwestern state, Michigan is already seeing healthy growth and has established the state as a key player in the cannabis industry, with medical and recreational cannabis sales breaking a new record in July 2022 when the state reached nearly $210 million in sales.
The Marijuana Legalization Process In Michigan
Medical marijuana was legalized by Proposition 203 in 2010 by the narrowest margin of 50.1% in favor. It’s no wonder it took ten more years for recreational marijuana to be legalized, even as the surrounding states began doing so in 2012 and 2016.
Proposition 207 passed in 2020 with 60% of the vote and cleared the way for recreational cannabis consumption and sale in the state the following year.
Michigan Cannabis Laws
Who can legally sell cannabis in Michigan?
Anyone above the age of 21 with a clean criminal record can apply for a state license which will allow them to operate a dispensary within Michigan. The nonrefundable application fee is $3,000, and additional fees are dependent upon the license type. The process includes a background check, and requires a good deal of information from the applicant which proves a business plan is in place. For example, just to start, you will need to provide the following information for the application:
(a) A description of the type of marihuana establishment that includes all of the following:
(i) An estimate of or actual number of employees.
(ii) The projected or actual gross receipts.
(iii) A business plan.
(iv) The proposed location of the marihuana establishment.
(v) A security plan, as required under the act and these rules.
This is just the start of the requirements though, as you will further need to establish other provisions, such as liability insurance, in order to remain compliant in selling cannabis in Michigan.
Further, once the applicant passes the first stage of prequalification, their business must be vetted by Michigan’s Cannabis Regulatory Agency (CRA) and pass an inspection within 60 days of the submission of their complete application for licensure.
What cannabis products can you sell in a dispensary in Michigan?
With restrictions, a variety of marijuana products are legal for recreational sale in dispensaries in Michigan. These include cannabis flower, resin, extracts, seedlings, immature plants, and cannabis paraphernalia such as pipes, bowls, and filter tips.
What cannabis licenses are available in Michigan?
There are several types of licenses available for cannabis businesses in Michigan, with varying initial licensure and renewal fees as can be seen in the table below:
| State License Type | Initial Licensure Fee |
|---|---|
| Class A Marijuana Grower | $1,200 |
| Class B Marijuana Grower | $6,000 |
| Class C Marijuana Grower | $24,000 |
| Excess Marijuana Grower | $24,000 |
| Marijuana Microbusiness | $8,300 |
| Class A Marijuana Microbusiness | $18,600 |
| Marijuana Processor | $24,000 |
| Marijuana Retailer | $15,000 |
| Marijuana Secure Transporter | $15,000 |
| Marij Safety Compliance Facility | $15,000 |
| Marijuana Event Organizer | $1,000 |
| Temporary Marijuana Event | Varies, See Rule 26 in the Marihuana Licenses Rule Set for more details (R 420.26) |
| Designated Consumption Establishment | $1,000 |
| Marijuana Educational Research | N/A |
If you’re considering starting a dispensary or other cannabis business, the question of “What cannabis licenses are available in Michigan?” has likely already crossed your mind! Thankfully, Michigan state offers clear guidelines and fees that seem in line with anticipated profits from cannabis, making peripheral businesses like Designated Consumption Establishments, or smoking lounges, far more affordable to establish at only $1,000 for initial fees.
Keep in mind that each year, cannabis business in Michigan will need to pay a renewal fee that matches its initial licensure cost. For more details on this business expense, check out the CRA’s website.
What are the packaging requirements for cannabis in Michigan?
Any cannabis products sold at a dispensary in Michigan must follow certain rules to stay within compliance standards:
You cannot package or label cannabis products in a false or misleading manner, or make health claims on your packaging
You cannot sell cannabis items in the distinct shape of a human, animal, or fruit, or a shape that bears the likeness or contains characteristics of a realistic or fictional human, animal, or fruit, including artistic, caricature, or cartoon renderings.
You cannot sell or advertise marijuana products that resemble or imitate food or drink brands marketed to children.
Michigan is one of the more relaxed states in regards to packaging requirements, as there is no requirement for brands to use Child Resistant, or CR, packaging for pre-roll products. There is also no requirement for opaque packaging. Michigan state’s regulatory board does require that all cannabis products are sealed before being offered for sale, for consumer protection.
Although CR is not a requirement in Michigan pre-roll packaging as of publication time, many customers might like to have it on products as an extra safety measure, and the regulations could change to require CR packaging in the future. Currently, Michigan does require CR and opaque packaging for any marijuana edibles, which could apply to other cannabis products in future legislation. For more on child-resistant packaging, check out our child resistant packaging deep dive!
One firm requirement Michigan has is that the universal green “Marijuana Product” symbol must be present on any cannabis packaging-- as required by the Administrative Rules for the Medical Marihuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marijuana Act.
With the freedom in the Michigan market for pre-rolls, Custom Cones USA would highly recommend our stock or bespoke luxury Pull Packs. These easy-to-open packages can easily be wrapped to make them compliant in the Michigan market, and are sure to appeal to medical and adult-use consumers looking for multi-pack options.
And don’t forget about Custom Cones USA’s custom packaging options like custom pre roll labels and our joint tube label application service! Custom shrink sleeves are another easy-to-use option that provides a clean and polished look to your product.
How should cannabis packaging be labeled according to Michigan CRA’s standards?
Certain information is required to be present on all cannabis products to stay compliant with the Cannabis Regulatory Authority in the state of Michigan. If you’re unsure how to label joint tubes to Michigan CRA standards— or other types of marijuana packaging— read on for more information. The following should be included:
(a) The name of the licensee and license number that is the producer, including business or trade name, and tag or source number as assigned by the statewide monitoring system.
(b) The name of the licensee and license number including business or trade name of licensee that packaged the product, if different from the processor of the marihuana product.
(c) The unique identification number for the package or the harvest if applicable.
(d) Date of harvest.
(e) Name of strain.
(f) Net weight in United States customary and metric units.
(g) Concentration of THC or CBD.
(h) Activation time expressed in words or through a pictogram.
(i) Name of the safety compliance facility that performed any test, any associated test batch number, and any test analysis date.
(j) Universal symbol published by the department.
(k) A warning that states all the following:
(i) "For use by [adults / registered qualifying patients] only. Keep out of reach of children."
(ii) "It is illegal to drive a motor vehicle while under the influence of marijuana."
What are the rules for operating a dispensary in Michigan?
Dispensaries operating in Michigan must be sure to comply with measures intended to keep minors from consuming cannabis illegally, as well as keeping Adult Use consumption as safe as possible. This includes checking for valid government IDs to ensure only those 21 or over are allowed in dispensaries, and ensuring budtenders are adhering to per customer sale limits for cannabis products.
Michigan legislature also prohibits dispensaries from being within 1000 feet of existing public or private schools that provide kindergarten or grades 1 through 12 education, as well as daycare centers. Other zoning restrictions may apply to certain localities in the state. Keep in mind that many local governments in Michigan have opted out of allowing marijuana establishments entirely, with only 62 municipalities in the state allowing cannabis entities to be established.
Is there a tax on cannabis in Michigan?
Yes, adult-use marijuana is subject to 10% tax, which raised over $100 million in funds for the state to distribute to educational initiatives and other tax programs in 2021. In 2022, the Michigan Department of Treasury announced that more than $42.2 million in cannabis tax funds would be distributed among 163 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.
Unique Cannabis Rules and Laws in Michigan
Michigan made a distinct choice when its health board opted to make the official spelling on all cannabis regulations as marihuana– spelled with an “h” instead of the more commonly seen spelling of marijuana with a “j”. These spellings are therefore used interchangeably, but that is just the start of unique Michigan cannabis standards!
Delivery for Medical Marijuana and Recreational Patients
Michigan allows for cannabis delivery from all types of dispensaries so that both adult-use and medical consumers can get their buds (up to 2.5oz) delivered.
Out-Of-State Reciprocity
Michigan does not have a formal standard in terms of out-of-state reciprocity agreements with other states, opting instead to leave this matter to the discretion of individual dispensaries. Medical marijuana cards are more of a formality since recreational sales are legal, but some medical patients may still want to use their medical card in order to avoid fees or purchase discounted cannabis, or edibles with higher potency. Individual business owners in Michigan will therefore need to establish and communicate a standard to customers in terms of how it will handle out-of-state reciprocity.
Weed Brands to Watch in Michigan
Lume Cannabis Co.
As the company that claims the largest dispensary in the state, Lume Cannabis Co. is a natural contender for a brand to watch in the Great Lakes state. Lume is dominating the market in part due to following pre-roll trends like offering its fan-favorite strain in Dogwalker form– the Jenny Kush pre-roll pack comes with five mini joints to start the day with a sativa buzz.
GAGE Cannabis Co.
GAGE Cannabis Co.’s Holy Smokz multi-pack is a popular item in Michigan, and you can create your own custom Pull Pack with one of our Pre-Roll Experts! The Holy Smokz pre-roll multi-pack joints are also individually wrapped, giving customers the option of taking an individual smoke on the go.
High Minded
One of the top-selling pre-rolls in Michigan is High Minded’s 0.7 gram Brawband pre-roll, according to Headset. The happy, sleepy high that this strain offers pairs well with a slightly smaller pre-roll size.
Kind Smokes
A California company, Kind Smokes patriotic-schemed packaging appeals in every state. That seems especially true for its Oreo Cookie pre-roll that is a top-ranking smoke in Michigan!
Kind Smokes also sells pre-ground cannabis, which pairs perfectly with any pre-rolled botanical cones we have to offer– no rolling required.
Michigan Cannabis Compliance in Review
Michigan may have entered the recreational market relatively late, but has made up for time lost with growth since offering adult-use cannabis sales.
Business leaders should not feel intimidated about leaping into the Michigan cannabis market with the help of the Pre-Roll Experts at Custom Cones USA on their side. We are here to provide anything needed to keep your pre-roll line compliant and rolling!