Solution establishes clear closure deadline for unlicensed facilities

State Rep. Jim Lilly’s plan to create fairness and consistency for licensed medical marijuana facilities in Michigan was approved today by the Michigan House with overwhelming bipartisan support.

Lilly, of Park Township, said the licensing process for medical marijuana businesses was established in 2016 to protect patients by providing access to safe and reliable sources of medical marijuana. However, the deadline by which non-licensed operators must close has been extended multiple times, allowing unregulated facilities to continue selling untested marijuana in Michigan.

“Allowing unlicensed facilities to continue to conduct business in our state puts those who choose to participate in a regulated market at a disadvantage,” Lilly said. “It’s not fair to force legitimate businesses to compete against unlicensed operators who do not have to pay taxes and regulatory fees or undergo safety inspections.”

Lilly’s legislation, House Bill 4440, seeks to codify in statue the existing executive rule that all unlicensed medical marijuana facilities in Michigan must cease as of a certain date. The legislation would establish a clear date by which all facilities in Michigan must have a license to operate. Under the plan, nearly all medical marijuana facilities operating without a valid license after June 1, 2019, will be ineligible to receive a license for one year. The legislation provides exceptions for those applicants currently in the appeals process, and any licensee in the appeals process would be required to adhere to the same regulatory standards as already-licensed facilities.

“This solution will ensure all medical marijuana facilities operating in Michigan are properly licensed, and that any facility operating without a license is held accountable,” Lilly said. “It paves the way for legitimate medical marijuana facilities to continue to invest in our state, employ residents, pay taxes and provide safe and regulated products to patients.”

The plan requires the Medical Marijuana Licensing Board to issue a license or a notice of denial before June 1 for any applicant currently operating under the extension, unless they are in the process of an investigative hearing. Applicants who have requested a public investigative hearing would not be forced to stop operating, as long as they pay an amount equal to the annual regulatory assessment and comply with all other regulations. Any applicant denied a license after the public investigative hearing will be required to cease operations at that time.

House Bill 4440 now moves to the Senate for consideration.

###