Wo Womens Council of Realtors Michigan Medical Marihuana - - PowerPoint PPT Presentation

Wo Women’s Council of Realtors

Michigan Medical Marihuana Presentation By By: Cr Craig A. Ar Aronoff, , Esq.

cr craig@ca cannabislegalgroup.co com www www.cannabislegalgroup.com (248) 541-2600 (248) 910-5863 cell

Wh Who am I?

Craig Aronoff

Born, raised and still live in West Bloomfield, MI Graduated Michigan State University in Dec. 1993 Detroit College of Law @ Michigan State University Dec 1997 Trial Lawyer, Foreclosure Attorney, Homeowner Advocate and Marijuana Lawyer Member of the State Bar of Michigan Real Property section and Marijuana Law Section A member of National Organization for the Reform of Marijuana Laws (NORML) and the National Cannabis Industry Association. Also involved in MI Legalize and the Marijuana Policy Project Past affiliate member of GMAR and WCR and taught co-ed for 4 years

Wh What’s the status around the country?

Wh What’s the status around the country?

Th Three New Medical Marijuana Laws

• 1. Amendments to the Michigan Medical Marihuana Act (MMMA)

Initiated Law 1 of 2008 / MCL § 333.26421 et seq.

• 2. Marijuana Tracking Act

Public Act 282 of 2016 / MCL § 333.27901 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

Mi Michigan Me Medical Ma Mari rijuana Act of 2008

Michigan recognizes medicinal benefits of marijuana The MMMA did NOT make marijuana legal! It created immunity from prosecution for two types of licensees.

Mi Michigan Me Medical Ma Mari rijuana Act of 2008

• 1. Patient
• Prescribed medical marijuana by a physician
• Grow 12 plants for personal use but cannot possess more

that 2.5 oz. of usable marijuana

• Or they may obtain medical marijuana from their

assigned licensed caregiver

Mi Michigan Me Medical Ma Mari rijuana Act of 2008

• 2. Caregiver
• May grow 12 plants for five (5) licensed patients (60 total)
• If also a patient, a caregiver may grow an additional 12 plants for personal

use

• Caregiver may not grow more than 72 plants at any time and no more than

2.5 usable oz. of marijuana per week per patient

• Or they may only transfer their marijuana to the assigned patient or another

caregiver

• Must destroy all excess marijuana
• Must not let any other person tend to plants
• Can charge their patient no more than what is fair and reasonable to grow

and deliver their medicine (NOT FOR PROFIT)

Am Amended Michigan Medical Marihuana Ac Act (MMMA) A)

In Initiated ed Law 1 of 2008 / MCL § 333. 333.264 26421 21 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

Am Amended Michigan Medical Marihuana Ac Act (MMMA) A)

333.26427 Effective as of April 10, 2017 Section 7 of the Act: (c) Nothing in this act shall be construed to require any of the following:

• (3) A private property owner to lease residential property to any

person who smokes or cultivates marihuana on the premises, if the prohibition against smoking or cultivating marihuana is in the written lease.

My Myths s of the MMMA MMMA

• 1. Dispensaries are legal.

FALSE – the only legal transfer of medical marijuana under the MMMA, is between a patient and their licensed caregiver or between caregivers. Any dispensary operating is tolerated by the city and can get shut down by any law enforcement agency, at any time.

• 2. Caregivers can “donate” their overages to a dispensary

FALSE – all “overages” or excess medical marijuana must be destroyed to stay compliant.

• 3. Caregivers can grow in a co-op or have someone else tend to

their plants.

FALSE – no one else can ever touch their plants.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF MMFLA)

Public Act 281 of 2016 / MCL § 333.27101 et seq.

Creates Five (5) New Types of MMJ Licenses in Michigan

• 1. Grower
• Class A: 1 to 500 Plants
• Class B: 500 to 1000 Plants
• Class C: 1,000 to 1,500 Plants
• 2. Processor (Extraction/Manufacturing)
• 3. Provisioning Center (Dispensary)
• 4. Secure Transportation
• 5. Safety Compliance Facility (Independent Testing Laboratory)

Ma Mari rijua uana na Tracking ng 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

Ma Mari rijua uana na Tracking ng 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.

Ma Mari rijua uana na Tracking ng 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.

Ma Mari rijua uana na Tracking ng Act

Pu Public Act t 282 of 2016 / MCL § 333. 333.2790 27901 1 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.

Ma Mari rijua uana na Tracking ng Act

Public Act 282 of 2016 / MCL § 333.27901 et seq.

Statewide Tracking System also Receives and Integrates Information of Third-Party Inventory Control Required by the MMFLA:

• All MMJ Plants, Products, Packages, Purchase Totals, Waste, Transfers, Conversations, Sales

and Returns which are ALL Linked to Unique Identification Numbers

• Track All Lot & Batch Information Throughout Entire Custody Chain
• Track MMJ Plant, Batch and Product Destruction
• Track Transportation of Product
• Batch Recall Tracking
• Receive Testing Results from Safety Compliance Facilities

Ma Mari rijua uana na Tracking ng 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

Un Unregu gulated vs Regu gulated

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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)

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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:
• Criminal History (Felonies/Misdemeanors)
• True Party of Interest
• Direct/Indirect Ownership
• Spouse

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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
• 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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;
• Maximum 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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).

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF MMFLA)

Public Act 281 of 2016 / MCL § 333.27101 et seq. Municipalities Can Adopt Ordinance Allowing:

• Some
• All
• None
• f the MMJ Facilities Permitted by the MMFLA.

No Ordinance = No MMJ Businesses Will be Licensed

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF MMFLA)

Public Act 281 of 2016 / MCL § 333.27101 et seq.

Municipalities may “authorize one (1) or more types of marijuana facilities within its boundaries” and may also “limit the number of each type of facility.” As such, a municipality may authorize growers and processors, but not dispensaries. Zoning Ordinances: Municipalities may also adopt zoning regulations but may not regulate the purity or pricing of medical marijuana. Section 205(1)(b).

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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

• peration of a marijuana facility in the municipality.” Section

205(3). For Each License. Should not include Site Plan Reviews & Other Building & Zoning fees

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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.

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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

Me Medi dical Ma Mari rijua uana na Facilities Licens nsing ng Act (MMF 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

Me Medical Ma Marijuana Facilities Licensing Act (M (MMFLA)

333.27201 Protected activities; person owning or leasing property upon which marihuana facility located subject to penalties or sanctions prohibited; conditions; other provisions of law inconsistent with act. Section 201: (3) Except as otherwise provided in this act, a person who owns or leases real property upon which a marihuana facility is located and who has no knowledge that the licensee violated this act is not subject to any of the following for owning, leasing, or permitting the

• peration of a marihuana facility on the real property:

(a) Criminal penalties under state law or local ordinances regulating marihuana. (b) State or local civil prosecution based on a marihuana-related offense. (c) State or local criminal prosecution based on a marihuana-related offense. (d) Search or inspection, except for an inspection authorized under this act by law enforcement officers, the municipality, or the department. (e) Seizure of any real or personal property or anything of value based on a marihuana-related offense. (f) Any sanction, including disciplinary action or denial of a right or privilege, by a business or occupational or professional licensing board or bureau.

Wh What’s The Bottom Line?

Residential:

Decide if you will allow the smoking of medical marijuana.

• If you will not allow it, add the proper provisions to your lease or addendum. If you want to

change the provisions in an existing lease, follow the proper protocol for making changes to an existing lease. Decide if you will allow the cultivation of medical marijuana.

• If you will not allow it, add the proper provisions to your lease or addendum. If you want to

change the provisions in an existing lease, follow the proper protocol for making changes to an existing lease. Decide if you will allow the selling of medical marijuana.

• If you do, establish lease terms and conditions, property rules and regulations based upon State

and local laws regarding the operation of home-based occupations/businesses and medical marijuana.

Wh What’s The Bottom Line?

Commercial:

Decide if you will allow the tenant to apply for a medical marijuana facilities license. Have both parties sign an addendum to the lease to provides that the tenant will be operating a licensed medical marijuana facility under that act and that the tenant will remain compliant with the Act at all times. The landlord acknowledges the tenant’s activities and expectation that the tenant will comply with Act.

Th Thank k you!

By: Craig A. Aronoff, Esq.

craig@cannabislegalgroup.com www.cannabislegalgroup.com (248) 541-2600 (248) 910-5863 cell