Michigan Releases Rules for Cannabis Business License Applicants

Just a couple of weeks before the state of Michigan opens its doors to medical marijuana business applicants, Governor Rick Snyder introduces rules that will serve as a temporary guide for cannabis entrepreneurs who are planning to apply for state licenses.

These emergency regulations cover key aspects of medical cannabis business operations including advertising, measures to ensure security, and how much capital will be permitted by the state to go into the cost of cultivation, processing, sales, transportation, and laboratory testing.


The state’s legislature has been proactive in guiding pot entrepreneurs through the pre-application procedures. Due guidance have been previously regarding cannabis’s major issues. The new rules are built on these prior rules.

“We needed to add a little meat to the bone on some of those things but tried to stay consistent with what was there,” says director of the Bureau of Medical Marihuana Regulation, Andrew Brisbo.

The cost of applying for a license is $6,000 and the applicants are required to notify the Department of Licensing and Regulatory Affairs including the state and local police within 24 hours regarding any event of theft.

New rules

Under the new rules, licensees need to demonstrate capitalization from $150,000 to $500,000 depending on what type of business they’re planning to operate. A quarter of this capital should be liquid and no more than 15 ounces of usable marijuana can be used to meet capital requirements.

Different marijuana businesses can operate in the same locations given they have permission from their local communities. Each should have their own independent security measures.

Marijuana advertising in the state is illegal if they are visible from any public place.

These rules are in effect for six months until the legislative body can craft more sturdy and permanent laws.

Justin Meerkat

Cannabis Entrepreneur & Cofounder GetHigh.com | Follow @justinmeerkat on Instagram

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