2021 Medical Marijuana Licensing Fees – Not So High
The annual regulatory fees set by state regulators and paid by licensed medical marijuana businesses are significantly decreasing – by up to 70% for some licensees. The decrease in these fees, which cover costs incurred by the state in maintaining the state medical marijuana program, is a welcome development to many who saw them as barriers to opening and maintaining a profitable medical marijuana business.
The new assessments begin October 1 and cover the fiscal year ending in September 2021. Overall, the annual regulatory assessment was reduced anywhere between 30% for Grower Class A licensees to 70% for Provisioning Centers and Secure Transporters licensees. One explanation for the decrease in these fees is the increased number of licensees. As the number of marijuana businesses increase, these costs can be shared by a larger number of these businesses. In other words, more regulated businesses mean lower costs per licensee.
The initial fee for a medical marijuana license depends on the license type. The subsequent renewal fee is based on market share for the previous fiscal year. Market share is based on three tiers: top, middle, and bottom. Only the safety compliance facilities (testing labs) may participate in the medical marijuana industry with no annual fee.
State Operating
|
NEW FY 2021 New
|
OLD FY 2020 New
|
Regulatory Assessment Savings |
|
Grower Class A |
$7,000 |
$10,000 |
$3,000 |
|
Grower Class B |
$14,000 |
$30,000 |
$16,000 |
|
Grower Class C |
$21,000 |
$56,000 |
$35,000 |
|
Processor |
$21,000 |
$56,000 |
$35,000 |
|
Provisioning Center |
$13,125 |
$44,000 |
$30,875 |
|
Secure Transporter |
$13,125 |
$44,000 |
$30,875 |
|
Safety Compliance Facility |
No Annual Fee |
No Annual Fee |
No Change |
Renewal fees for middle tier licensees are equal to the new license regulatory assessment while the top and bottom tier fees are nearly 33% higher or 33% lower than the middle tier fee.
The annual regulatory fees are imposed on medical marijuana licensees to cover costs relating to the implementation and maintenance of Michigan’s medical marijuana program. Some of these costs include enforcement, legal services, substance abuse programs including education, treatment, and prevention programs, and expenses relating to standardized field sobriety tests.
Since all Michigan medical marijuana licenses have the same expiration date, new licensees will get prorated fees based on the new fee structure beginning October 1st. Not all fees have changed though. There is still a non-refundable $6,000 application fee for main applicants. Municipalities also charge both an application fee and an annual licensing fee. Those costs vary depending on the municipality.
Foley, Baron, Metzger & Juip offers comprehensive assistance to those seeking licensure under the MMFLA, as well as compliance with local medical marijuana regulations. We work closely with doctors, nurses, and pharmacists seeking licensure in Michigan’s rapidly growing medical marijuana industry. We also advise clients on related matters, including business formation, land use, environmental compliance, facilities siting, and related issues. Contact attorneys Richard Baron or Daniel Cortez for more information at 734.742.1800.