Current through Vol. 23-16, September 15, 2023
Section R. 420.6 - State license under the Michigan regulation and taxation of marihuana act; issuance; qualifications; ineligibility
Rule 6.(1) The agency shall not issue a state license under the MRTMA until a complete application is submitted, the fees required under these rules are paid, and the agency determines that the applicant is qualified to receive a state license under the acts and these rules. An applicant under MRTMA must pay initial licensure fees within 10 calendar days of approval of the state license or within 90 calendar days of submitting a complete application, whichever date is first. Failure to pay the fees required under R 420.7 may be grounds for the denial of state license.(2) An applicant is ineligible to receive a state license if any of the following circumstances exist:(a) The applicant has a prior conviction that involved distribution of a controlled substance to a minor.(b) The applicant has knowingly submitted an application for a state license under the MRTMA that contains false information.(c) The applicant is an employee, advisor, or consultant of the agency involved in the implementation, administration, or enforcement of the MRTMA or these rules pursuant to section 7 of the MRTMA, MCL 333.27957.(d) The applicant holds an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government, or is employed by a governmental unit of this state. This subdivision does not apply to any of the following:(i) An elected officer of or employee of a federally recognized Indian tribe.(ii) An elected precinct delegate.(iii) The spouse of a person who applies for a state license unless the spouse's position creates a conflict of interest or is within any of the following:(A) The marijuana regulatory agency.(B) A regulatory body of a governmental unit in this state, another state, or the federal government that makes decisions regarding adult-use marijuana.(e) The agency determines the municipality in which the applicant's proposed marihuana establishment will operate has adopted an ordinance that prohibits marihuana establishments or that the proposed establishment is noncompliant with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.(f) The applicant will hold an ownership interest in both a marihuana safety compliance facility or in a marihuana secure transporter and in a marihuana grower, a marihuana processor, a marihuana retailer, a marihuana microbusiness, or a class A marihuana microbusiness in violation of section 9 of the MRTMA, MCL 333.27959.(g) The applicant will hold an ownership interest in both a marihuana microbusiness or a class A marihuana microbusiness and in a marihuana grower, a marihuana processor, a marihuana retailer, a marihuana safety compliance facility, or a marihuana secure transporter, in violation of section 9 of the MRTMA, MCL 333.27959.(h) The applicant will hold an ownership interest in more than 5 marihuana growers or in more than 1 marihuana microbusiness or class A marihuana microbusiness, in violation of section 9 of the MRTMA, MCL 333.27959.(i) The applicant fails to meet other criteria established in these rules.(3) In determining whether to grant a state license to an applicant, the agency may also consider all of the following: (a) Whether the applicant or anyone meeting the definition of applicant has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana establishment is unlikely to be operated with honesty and integrity.(b) Whether the applicant has been served with a complaint or other notice filed with any public body regarding payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.(c) Whether the applicant has a history of noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to, fraud, environmental, food safety, labor, employment, worker's compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.(d) Whether the applicant meets other standards in rules applicable to the state license category.(4) The agency shall review all applications for state licenses and inform each applicant of the agency's decision.(5) An applicant or licensee has a continuing duty to provide information requested by the agency and to cooperate in any investigation, inquiry, or hearing conducted by the agency.(6) A marihuana license is a revocable privilege granted by the agency and is not a property right. Granting a marihuana license does not create or vest any right, title, franchise, or other property interest. A licensee or any other person shall not lease, pledge, borrow, or loan money against a marihuana license.
Mich. Admin. Code R. 420.62020 AACS; 2022 MR 5, Eff. 3/7/2022