Concerns regarding the practicality of cannabis microbusiness licenses in Michigan are surfacing as of late, with state lawmakers now working to amend draft regulations that previously limited flowering plant production statewide. If the rules change, licensees participating in Michigan’s adult-use cannabis market would no longer be starved of their freedom to serve the growing consumer demographic.

Numerous license types are currently available under the terms of Michigan’s adult-use market; designed to suit businesses of varying sizes. However, no licensees have bagged a cannabis microbusiness permit just yet — a specific type of license that would allow business owners to cultivate/harvest a maximum of 150 plants for processing and customer sales.

Until lawmakers change these regulations, small cannabis business owners in Michigan are relying heavily on stock from third-party suppliers. Industry experts say that social equity applicants would benefit greatly from cannabis microbusiness licenses in Michigan, yet the fact that licensee rules have not yet been changed means that no applications have been received thus far.

Microbusiness owners in Michigan limited to 75 flowering plants and 75 in vegetative phase

Based on the established rules for Michigan’s cannabis licensees, 150 “mature” plants – which are clarified as being eight inches or more in height and still rooted – is the limit. Prospective microbusiness licensees may have thought this would grant them the opportunity to yield 150 flowering plants, with an additional 150 still being prepared. However, the term “mature” is not bound to flowering plants. 

So long as the plant is rooted – such as plants that are in a vegetative state – they will be accounted for. With that being said, cannabis microbusinesses in Michigan could only have 75 plants in flower and 75 in a vegetative state. Considering the statewide demand for cannabis products in Michigan – the market is expected to inflate to $650 million by 2023 – these plant count limits could restrict business owners in their efforts to remain competitive and relevant. Since the rules were announced, complaints have erupted from the state’s social equity applicants.

“I’m hearing from a lot of social equity applicants right now that they are extremely, extremely upset about this,” said the Executive Director of the Michigan Cannabis Industry Association, Robin Schneider, in a recent statement. Schneider went on to say that the fact lawmakers are tightening the reins on cannabis production in Michigan is essentially stifling the legal market’s overall development.

Michigan cannabis regulator responds to microbusiness plant count limits

While arguments break out and confusion suffuses Michigan’s adult-use market, one man is trying to clear the air. His name is Andrew Brisbo and he assumes the role of executive director for Michigan’s Marijuana Regulatory Agency — a national model focused on preserving safe consumer access to cannabis and encouraging business growth with its regulatory program.

“Some of the comments that were raised during the public comment period still felt as though (the draft regulations’) definition of ‘flowering’ was still not quite articulate enough to capture the intention there, and so we continued to look at that,” he told MJBiz Daily reporters. “In the end, the Legislature that ultimately plays a role in the adoption process had indicated and asked us that we revise it to use these definitions of ‘immature’ and ‘mature’.”

Brisbo, believes that the emphasis has been placed too heavily on the lack of microbusiness licenses in Michigan. He explained to reporters how small-grow licenses have not yet been issued, nor have any “designated consumption establishment licenses or temporary event licenses.” The former director of the Bureau of Marijuana Regulation went on to say that the vast majority of licenses issued by the state of Missouri impeded eligibility among operators who already held licenses in the medical cannabis field.

Social equity applicants are not limited to microbusiness permits in Michigan

According to Brisbo, a significant portion of social equity applicants in Michigan seek out a variety of different licenses; other than microbusiness permits. He says that vertical integration – when a company takes control of its supply chain – is one of the main appeals for this category of applicants, all of whom will have resided in a disproportionately impacted community for a minimum of five cumulative years within the past 10 years.

“They want to hold a grower, processor and retailer license, or they want to operate a retail space,” said Brisbo, who noted that a number of hopeful growers, processors and retailers are eagerly awaiting the day when they can meet the eligibility criteria for these license types. 

Until then, microbusiness applications are welcome. Brisbo backed the recently introduced regulations, which he claims were drafted specifically to pinpoint the qualities of a “viable plant”. The established plant count regulations were not defined in the state’s framework for adult-use cannabis legalization, he added.

As a highly dynamic and fast-paced industry, ever-evolving rules and regulations are to be expected for Michigan’s adult-use cannabis market. Ultimately, businesses need to have the tools to succeed and consumer health must be safeguarded in order to ensure complete transparency across the flourishing market, which has been in effect since December 2019.

Some other things that could be to blame for the disappointing turnout of Michigan’s microbusiness license distribution is the lack of municipal opt-ins for adult-use cannabis retail stores in Michigan. Brisbo finished by saying that regulations for Michigan’s adult-use market can still be tweaked to satisfy everyone.