This document summarizes three new laws regarding medical marijuana in Michigan: the Marijuana Tracking Act, amendments to the Michigan Medical Marihuana Act, and the Medical Marijuana Facilities Licensing Act. The Marijuana Tracking Act creates a statewide monitoring system to track marijuana from seed to sale. The amended MMMA adds edible and topical marijuana products to the definition of usable marijuana. The MMFLA establishes five types of medical marijuana facility licenses and gives municipalities authority to pass ordinances authorizing or prohibiting these facilities through zoning.

1. Municipal Licensing
Medical Marihuana Facilities Licensing Act
June 9th Detroit, MI
BY: CRAIG ARONOFF, ESQ.

2. Three New Medical Marijuana Laws
1. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
2. Amended Michigan Medical Marihuana Act (MMMA)
Initiated Law 1 of 2008 / MCL § 333.26421 et seq.
3. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Effective Dates
◦ Approved by Governor on September 21, 2016, effective December 20, 2016
◦ Medical Marihuana Licensing Board appointed May 31, 2017
◦ LARA to Accept License Applications on December 15, 2017

3. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
Creates a Statewide Monitoring System to:
◦ Track Marijuana and Marijuana Product in Commercial Trade
◦ Monitor Compliance with Laws Authorizing MMJ Commercial Traffic
◦ Identify Threats to Health from Particular Batches of MMJ (Recall)
◦ Require Those in Commercial Trade of MMJ to Submit Certain Information for Entry
into the System;
◦ Provide Remedies for Any Violation

4. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
Purpose:
• Prevent Fraud, Abuse and Unlawful/Prohibited Activities
Associated with Trade of MMJ, and
• Administer and Enforce MMFLA and MMMA.

5. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
Establishes a Statewide Monitoring System for the
“Seed to Sale” Tracking of Marijuana
Statewide Tracking System = Internet-Based, Statewide Database that is
Available on a 24-Hour Basis to:
• Licensees,
• Law Enforcement, and
• Authorized State Departments and Agencies.

6. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
For EVERY Sale or Transfer of MMJ, the State Monitoring
System Will Track:
Date, Time & Quantity
System Will Verify, in Real Time:
• Validity of Patient ID Cards,
• Transfer Limits, and
• Transfers Among Licensees.

7. Marijuana Tracking Act
Public Act 282 of 2016 / MCL § 333.27901 et seq.
Receives and Integrates Information of Third-Party Inventory Control Required by
the MMFLA (continued):
Provide to the MMJ Licensing Department:
1. Total Daily Sales
2. Total MMJ Plants in Production
3. Total MMJ Plants Destroyed
4. Total Inventory Adjustments

8. Amended Michigan Medical Marihuana Act (MMMA)
Initiated Law 1 of 2008 / MCL § 333.26421 et seq.
Adds to the Definition of “Usable Marijuana” to now include “marijuana infused
product.”
• Topical Formulation
• Tincture
• Beverage
• Edible Substance
Similar Product Containing Usable Marijuana Intended for Human Consumption
in a Manner Other Than Smoke Inhalation

9. Unregulated vs Regulated

10. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Creates Five (5) MMJ Licenses in Michigan
1. Grower (500, 1,000 or 1,500 Plants)
2. Processor (Extraction/Manufacturing)
3. Provisioning Center (Dispensary)
4. Secure Transportation (Unique Among MMJ States)
5. Safety Compliance Facility (Testing).

11. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Key Provisions of the MMFLA:
•Authorizes Sales of MMJ Among Licensees
•Transfers Made Solely by Licensed Secure Transporter
•Enter All Transactions & Inventory Into Statewide Monitoring System
•Limits on Common Ownership (Transportation and Testing)
•Employee Qualifications – Background Check: Controlled Substance Felony within Past 10 Years (Rules May
Require Employee License)
•Liability Insurance: $100,000
•Qualifications for Ownership:
o Criminal History (Felonies/Misdemeanors)
o True Party of Interest
- Direct/Indirect Ownership
- Spouse

12. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Medical Marijuana Licensing Board
• 5 members appointed by the Governor
• No more than 3 can be members of the same political party
• Board appointed May 31, 2017
• Term of 4 years
Board’s Duties: The licensing, regulating and enforcing a regulatory system
established for the growth, processing, testing and transportation of
medical marijuana under the MMFLA.

13. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Administrative Rules and Regulations – Licensing Department & Board
• Standards for facilities and equipment, including testing standards;
• Operating regulations for each license (health, safety, security of product & facility)
• Minimum qualification and restrictions for persons involved in the operation of MMJ facilities;
• Standards for the cultivation, manufacturing, secure transportation, storage and sale of MMJ;
• Packaging and labeling standards;
• Marketing and advertising restrictions;
• THC standards for infused products;
• Waste management, quality control, and chain of custody standards; and
• The administration of the statewide tracking of all MMJ transfers.

14. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
The Medical Marijuana Licensing Board has no authority to
establish any limit on the number or type of licenses that
may be granted.
This Authority is Reserved for
Municipalities.

15. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Municipalities Have an Integral Role
in Implementing the MMFLA
Under the Medical Marihuana Facilities Licenses Act (MMFLA) NO
marijuana facility will be licensed by the State of Michigan unless
and until the “municipality has adopted an ordinance that
authorized that type of facility.” Section 205(1).

16. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Municipalities Can Adopt Ordinance Allowing:
• Some
• All
• None
of the MMJ Facilities Permitted by the MMFLA.
No Ordinance = No MMJ Businesses Will be Licensed

17. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Ordinance + Zoning
License Applicants Must Be Located in Municipality Authorizing Use
+
License Applicants Property Must be Properly Zoned
Grower: Industrial/Agricultural/Unzoned
Other Licensees: Zoning Not Specified.

18. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
MMJ License Applicants Must Notify Municipalities
Applicants for a license to operate a MMJ facility pursuant to the
MMFLA must, within 10 days of submitting an application to the State,
notify the local municipality of such application by registered mail.

19. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
State Will Notify Municipalities
Section 205(1) of the MMFLA provides that when the State receives any
application for the licensure of a MMJ facility it requests the following from the
local municipality:
Copy of the local ordinance that authorizes the marijuana facility;
Copy of any zoning regulations applicable to the proposed marijuana facility;
and
A description of any violation of the authorizing or zoning ordinance by the
Applicant.

20. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Forthcoming Administrative Rules Not Expected to Provide Guidance to
Municipalities as to the Content or Nature of Authorizing and/or Zoning
Ordinances.
Rules Will Not Prohibit Local Governments from Establishing Their Own Licensing
Requirements.
Many Cities Have Their Own MMJ Departments to Regulate Local Licenses:
• Colorado: Denver, Boulder, Aurora, Colorado Springs, Pueblo
Other States Where MMJ Legal: Illinois, Oregon, California, Arizona, Washington,
Alaska, Nevada, Hawaii

21. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
MMFLA Authorizes & Caps Annual Licensing Fee
“A municipal ordinance may establish an annual, nonrefundable
fee of not more than $5,000 on a licensee to help defray
administrative and enforcement costs associated with the
operation of a marijuana facility in the municipality.” Section
205(3). For Each License.
Should not include Site Plan Reviews & Other Building & Zoning
fees

22. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
City/Municipality
25%
County
30%
State
30%
Sheriff's Office
5%
Michigan State Police
5%
Police Training
5%
TAX BREAKDOWN
City/Municipality
County
State
Sheriff's Office
Michigan State Police
Police Training

23. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Medical Marijuana Excise Tax Fund
Funded by 3% tax on gross retail sales:
•30% to Counties in Which MMJ Facilities Located (Proportion)
•25% to Municipalities in Which Facilities Located (Proportion)
•5% to Counties Exclusively for County Sheriffs (Proportion)
•Remainder: 30% to State; 5% to MI Commission on Law Enforcement; 5%
State Police.

24. Medical Marijuana Facilities Licensing Act (MMFLA)
Public Act 281 of 2016 / MCL § 333.27101 et seq.
Job Creation
Job Creation
FTE’s
Avg. Wage
per Hour
Cultivation
Class A
500-plants
Cultivation
Class B
1,000-plants
Cultivation
Class C
1,500-plants
Processing
Lab
Testing Lab
Secure
Transporter
(Distributor)
Provisioning
Center
(Retail)
Executives $60.00+ 1.0 1.0 2.0 1.0 1.0 1.0 1.0
Management $35.00 2.0 3.0 4.0 2.0 2.0 3.0 2.0
Administrative
Support
$20.00 2.0 3.0 4.0 2.0 2.0 4.0 2.0
Line Workers $15.00 10.0 20.0 30.0 8.0 4.0 6.0 10.0
Maintenance $15.00 1.0 2.0 2.0 1.0 1.0 1.0 1.0
Security $17.00 2.0 2.0 3.0 1.0 1.0 4.0 2.0
Total FTE’s 17.0 31.0 45.0 15.0 11.0 19.0 18.0
Avg. Estimated
Wages
$732,160 $1,225,120 $1,811,680 $669,760 $544,960 $869,440 $767,520
Source: Strata Business Services

25. Thank you!
Craig A. Aronoff, Esq.
craig@cannabislegalgroup.com
Barton Morris
barton@cannabislegalgroup.com
(248) 541-2600 cannabislegalgroup.com