MFE Insurance, a Michigan cannabis insurance broker, recently created a blog that explains why to apply for a Michigan dispensary license. Obtaining a license is an essential step towards remaining in compliance with state laws regarding the administration of cannabis dispensaries.
Michigan became the 10th state to legalize recreational cannabis in November 2018. Recreational dispensaries are permitted to open in January 2020. Medical dispensaries, called "provisioning centers" within the state, are already receiving licenses and beginning operation, and medical marijuana cards are available to residents. Recreational dispensaries, meanwhile, must first apply for a medical license before they can obtain their recreational license until 2022, after which this step will not be necessary. The Michigan Department of Licensing and Regulatory Affairs (LARA) oversees the issuing of all licenses for both types of dispensaries.
Without obtaining a license, your dispensary runs the risk of being shut down by the state for failure to comply with both federal and state laws and regulations. The first step to obtain a license is pre-qualification, which consists of a full background check of everyone associated with the application. Owners must submit an Entity/Individual Pre-Qualification Packet and Supplemental Application Pre-Qualification Packet, which contain all the necessary paperwork for the check. A non-refundable application fee of $6,000 is required when submitting. Next, you'll apply for your license by submitting information and documentation related to your dispensary, such as an opening date, lease agreement, estimated income, and marketing plan. After your application has been approved, you'll need to pay a regulatory assessment fee in order to receive your license.
Receiving a license before starting business ensures that your dispensary is compliant with Michigan's regulations and allows you to operate without fear of being shut down. Contact the Michigan cannabis insurance brokers at MFE Insurance for more information about how to obtain your license and to protect your company with a comprehensive suite of insurance policies, including product liability, worker's compensation, and equipment breakdown insurance. MFE Insurance can be contacted at 213-266-7990 or online at https://www.mfeinsurance.com/. The brokerage is headquartered in Los Angeles and serves clients across the country.