Section R. 420.12 - Denial of a marihuana license; additional reasonsRule 12.
(1) The agency may deny a license if an applicant fails to comply with the applicable act or these rules.(2) In addition to the reasons for denial in the acts, the agency may deny a marihuana license for the following reasons:(a) The applicant's marihuana business location plan does not fully comply with the acts or these rules.(b) The applicant's proposed marihuana business or marihuana business is substantially different from the marihuana business location plan pursuant to R 420.8 and these rules.(c) The agency is unable to access the proposed marihuana business for prelicensure agency inspection or the applicant denied the agency access to the proposed marihuana business.(d) The applicant made a material misrepresentation on the application.(e) The applicant failed to correct a deficiency within 5 days of notification by the agency in accordance with the acts and these rules.(f) The applicant failed to provide confirmation of municipal compliance as required under R 420.5(1)(d) or (e).(g) The applicant's proposed marihuana establishment is in a municipality that has adopted an ordinance prohibiting marihuana establishments or the proposed marihuana establishment does not comply with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.(h) The applicant is operating or was operating a proposed marihuana business without a marihuana license.(i) The applicant has knowingly submitted an application containing false information.(j) The applicant has failed to pay required fees pursuant to these rules.(k) The applicant has failed to comply with these rules and the application requirements pursuant to these rules.(l) The applicant has been delinquent with the payment of taxes required under federal, state, or local law for 1 or more years.(m) The applicant fails to provide notifications or reports to the agency pursuant to these rules.(n) The applicant or anyone meeting the definition of applicant has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana business is unlikely to be operated with honesty and integrity.(o) For an applicant seeking licensure under the MRTMA, the applicant failed a prelicensure inspection within 60 days of submitting a complete application to the agency.(p) For an applicant seeking licensure under the MRTMA, the applicant or anyone meeting the definition of applicant has a conviction involving distribution of a controlled substance to a minor pursuant to section 8 of the MRTMA, MCL 333.27958.(q) For an applicant seeking licensure under the MRTMA, the applicant holds a state operating license under the MMFLA and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 601 of the MMFLA, MCL 333.27601.(r) For an applicant seeking licensure under the MRTMA, the applicant holds a state license and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 13 of the MRTMA, MCL 333.27963.(s) The applicant failed to pass the prelicensure inspection required under R 420.11a.(t) The applicant or licensee has filed an amendment to the application for a marihuana license seeking to add an individual or entity to the application or license that is not eligible or suitable for licensure, or the amendment is not eligible for licensure as it fails to comply with the acts and these rules.(u) The applicant or licensee was previously required to file an annual financial statement under the MMFLA and these rules and failed to file the annual financial statement.Mich. Admin. Code R. 420.12
2020 AACS; 2022 MR 5, Eff. 3/7/2022