The leafy ceiling of a large, commercial cannabis grow in Washington state.

Rory Savatgy

Michigan MMJ Operators Allowed to Continue Business While Licensing Proceeds

Michigan Gov. Rick Snyder has approved the state’s emergency medical cannabis rules which allow current dispensaries approved by their municipality to stay open after Dec. 15 without risk of being shut down. The rules will allow them to stay open until they are either approved or denied a license by the state.

According to the measure text, the emergency rules are necessary to “preserve the public health, safety, or welfare for access to safe sources of marihuana for medical use.” Current operators will have to apply with the state, along with potential new market hopefuls.

Under the rules, those hopefuls must be flush with start-up capital. Depending on grow site size, cultivators will have to prove they have between $150,000 and $500,000 in capital, while dispensaries must show $300,000 in capital, and testing and transporters must prove $200,000 in capital.

Application fees run $6,000 and applicants must have $100,000 in insurance.

The rules also place limits on maximum THC allowed in infused products, setting the per-serving bar for edibles, such as baked goods, candies, and beverages at 50 milligrams and 500 milligrams per-container. THC concentration for topicals is capped at 6 percent by volume, and other high-potency products, such as transdermal patches, capsules, and suppositories, are capped at 1,000 milligrams of THC per container.

Snyder signed the industry reform package in Sept. 2016 in an effort to move the state’s industry from a “gray market” to a more comprehensive and regulated regime.

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