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A new bill in the Michigan Senate Judiciary Committee would require applicants for a facilities license under the new medical marijuana statute to undergo state and federal background checks. This is a significant departure from the legislation already in effect that did not explicitly require such background checks.

Senate Bill 433 (2017), put forward by State Sen. Rick Jones, R- Grand Ledge, seeks to amend the Medical Marihuana Facilities Licensing Act signed by Gov. Snyder last fall. Under the Act, the state will license medical marijuana growers, processors, transporters, provisioning centers, and safety compliance facilities. A person may apply for one of these licenses under the act beginning in December, 2017.

The law as passed already called for all those who have an ownership interest in a marijuana facility to submit fingerprints. The Senate bill would require that such fingerprints be submitted to the Michigan State Police (MSP) so that they can conduct a criminal history check. The new bill would also require that MSP forward the fingerprints to the Federal Bureau of Investigation (FBI) for a national criminal history check. The law already bars applicants who have significant criminal histories related to drug offenses. More information about the proposed bill can be found here. There are already more than 220,000 medical marijuana patients in Michigan pursuant to the 2008 ballot measure that legalized the drug. It does not appear as though this legislation would apply retroactively to those persons unless they were applying for a facilities license.

Sen. Jones is a former police officer and his proposed legislation likely will be viewed as an attempt to discourage applicants. In particular, any applicant under the new law would know that the federal government would be aware of their application. The Trump Administration has not publically taken a position on federal enforcement of marijuana laws in states which have a regulatory system in place for medical marijuana. However, the omnibus spending bill he sent to Congress last month to fund the government through September included a rider that disallowed the Justice Department from using federal funds to prosecute medical marijuana businesses in states where medical marijuana is legal.

At the same time, it was revealed that Attorney General Jeff Sessions has asked Congress to undo federal medical marijuana protections that were put in place three years ago under the Rohrabacher-Farr Amendment. The protections prohibit the federal government from using federal funds to prevent states from implementing their own state laws regarding the use and distribution of medical marijuana. In his letter, Sessions said such protections prevent the Justice Department from enforcing the Controlled Substances Act. Rep. Dana Rohrabacher, one of the co-sponsors of the protections Sessions is seeking to undo, announced that he disagrees with Sessions’ position.

Foley, Baron, Metzger & Juip offers comprehensive administrative licensing services, including guidance with applications and the defense of licenses before the state licensing board. We also advise clients regarding medical marijuana law and the applicable state regulations, as well as land use, facilities siting and related issues.

Contact Richard Baron and Dan Cortez for more information – phone 734-742-1800.

June 2017

New Bill Would Add Background Checks to Marijuana Facilities License Application

A new bill in the Michigan Senate Judiciary Committee would require applicants for a facilities license under the new medical marijuana statute to undergo state and federal background checks. This is a significant departure from the legislation already in effect that did not explicitly require such background checks. Senate Bill 433

June 2017

Covenant Broken?

The recourse for healthcare providers in recouping costs from No-Fault insurers was cast into serious doubt in the wake of the Michigan Supreme Court’s ruling in Covenant Medical Center v State Farm Mutual Automobile Insurance Co. (Supreme Court Case No. 152758). In its May 25, 2017 Opinion, the high court

June 2017

FBMJ Attorneys Hit Home Run

FBMJ attorneys will participate in the Inaugural Motion to Strike – Plaintiff vs Defense charity softball game Saturday, June 17th at 1:00 PM at the Southfield Civic Center Park – Diamond 4. The event will benefit the Cass Community Social Services (CCSS), a Detroit-based agency which provides programs for food,

June 2017

Richard Baron to Speak at 2017 Perrin Conferences’ Environmental Risk & Litigation Conference

FBMJ attorney Richard Baron will be a featured speaker at the upcoming Perrin Environmental Risk & Litigation Conference to be held June 20, 2017 at the Westin New York at Times Square in New York City. Rich will be the moderator and part of a panel of experienced environmental practitioners

June 2017

State Appoints Five to Medical Marijuana Board, Offers Guidance to Accountants Assisting Marijuana Businesses

After a significant delay, Michigan Gov. Rick Snyder announced last week the appointment of five people to the Michigan Medical Marihuana Licensing Board, which will govern licensing of medical marijuana growers and dispensaries under the new state law going into effect in December, 2017. Rick Johnson, a former state representative, will

May 2017

Governor Snyder Signs Naloxone Standing Order

On May 25, 2017, Governor Rick Snyder approved and signed the Michigan Chief Medical Executive’s Standing Order (akin to a state-wide prescription) pre-authorizing the distribution of naloxone by pharmacists. Naloxone hydrochloride (naloxone) is a fast-acting medication intended to reverse the effects of an opioid-related drug overdose.   Prior to this Standing

May 2017

FBMJ Attorneys Co-Author Article for The Michigan Business Law Journal on Key Employee Departures, Capital Raising Activities & Risks with Form S-8 Registration

FBMJ attorneys Jennifer Cupples and Joseph McGill co-authored “Departure of Key Employees, Capital Raising Activities, and the Risks involved with Form S-8 Registration” published in the Spring, 2017 issue of The Michigan Business Law Journal. The article offers analysis on several unclear issues surrounding the issuance and registration of shares

May 2017

State Creates New Bureau to Regulate Medical Marijuana

The State of Michigan has announced the creation of the Bureau of Medical Marihuana Regulation (BMMR) charged with developing new statutory requirements that will govern medical marijuana facility licensing in time for implementation in December. The BMMR, which will be housed in the Department of Licensing and Regulatory Affairs (LARA), is

April 2017

Improved Michigan Automated Prescription System Now Operational

In what has been identified as a new tool in the fight against opioid abuse and controlled substance diversion, the Department of Licensing and Regulatory Affairs (LARA) announced Tuesday, April 11, 2017, that improvements to the Michigan Automated Prescription System (MAPS), Michigan’s electronic monitoring system that tracks Schedule 2-5 controlled

April 2017

Medical Marijuana Laws to Bring New Regulations Once Appointments Made

A recent delay will likely slow the announcement of specific rules and regulations that will govern the application process for a license under the Medical Marihuana Facilities Licensing Act (the Act). Michigan Governor Rick Snyder signed a package of three bills that created regulatory framework for the distribution of medical