DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

~~MARIJUANA~~CANNABIS REGULATORY AGENCY

MARIHUANA ~~LICENSES~~RULES

Filed with the secretary of state on

These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.Except for R 420.218a, these rules become effective 180 days after filing with the secretary of state. R 420.218a takes effect immediately upon filing with the secretary of state.

(By authority conferred on the executive director of the ~~marijuana~~cannabis regulatory agency by section 206 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27206, sections 7 and 8 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957 and 333.27958, and Executive Reorganization Order No. 2019-2, MCL 333.27001)

R 420.1, R 420.2, R 420.3, R 420.4, R 420.5, R 420.6, R 420.7, R 420.8, R 420.10, R 420.11, R 420.12, R 420.13, R 420.14, R 420.15, R 420.16, R 420.17, R 420.18, R 420.19, R 420.20, R 420.21, R 420.22, R 420.23, R 420.24, R 420.101, R 420.102, R 420.103, R 420.104, R 420.105, R 420.106, R 420.107, R 420.108, R 420.109, R 420.110, R 420.201, R 420.202, R 420.203, R 420.204, R 420.205, R 420.206, R 420.207, R 420.208, R 420.209, R 420.210, R 420.211, R 420.212, R 420.213, R 420.214, R 420.215, R 420.301, R 420.302, R 420.303, R 420.304, R 420.305, R 420.306, R 420.307, R 420.308, R 420.401, R 420.402, R 420.403, R 420.404, R 420.405, R 420.501, R 420.502, R 420.503, R 420.504, R 420.505, R 420.506, R 420.507, R 420.508, R 420.602, R 420.602a, R 420.603, R 420.702, R 420.703, R 420.704, R 420.704a, R 420.705, R 420.706, R 420.707, R 420.708, R 420.709, R 420.801, R 420.802, R 420.803, R 420.804, R 420.805, R 420.806, R 420.807, R 420.808, R 420.1001, R 420.1002, R 420.1003, and R 420.1004 of the Michigan Administrative Code are amended, R 420.2a, R 420.2b, R 420.4a, R 420.8a, R 420.9, R 420.19a, R 420.201a, R 420.201b, R 420.201c, R 420.203a, R 420.205a, R 420.216, R 420.217, R 420.218, R 420.218a, R 420.219, R 420.220, R 420.221, R 420.306a, R 420.306b, R 420.306c, R 420.306d, R 420.306e, R 420.309, R 420.310, R 420.311, R 420.311a, R 420.312, R 420.313, R 420.314, R 420.402a, R 420.402b, R 420.403a, R 420.405a, R 420.405b, R 420.406, R 420.407, R 420.408, R 420.409, R 420.604, R 420.806a, R 420.806b, R 420.806c, R 420.806d, and R 420.1005 are added, and R 420.11a, R 420.25, R 420.26, R 420.27, R 420.27a, R 420.27b, R 420.28, R 420.29, R 420.105a, R 420.111, R 420.112, R 420.112a, R 420.113, R 420.206a, R 420.207a, R 420.214a, R 420.214b, R 420.214c, R 420.303a, R 420.305a, R 420.305b, R 420.503a, R 420.509, R 420.510, R 420.511, R 420.601, R 420.701, R 420.808a, R 420.809, R 420.821, R 420.822, and R 420.823 are rescinded, as follows:

PART 1. GENERAL PROVISIONS

R 420.1 Definitions.

Rule 1. (1) As used in these rules:

(a) “Acts” refers to the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967~~, when applicable~~.

(b) “Administrative procedures act” means the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(bc) “Agency” means the ~~marijuana~~cannabis regulatory agency.

(d) “Another party" or “other party” means a person with whom a licensee enters a licensing, management, or manufacturing agreement.

(ce) "Applicant" means a person ~~who~~that applies for a marihuana license, subject to paragraphs (i) and (ii) of this subdivision:

(i) For purposes of this definition, an applicant includes a managerial employee of the applicant, a person holding a direct or indirect ownership interest of more than 10% in the applicant, and the following for each type of applicant:

(A) For an individual or sole proprietorship: the proprietor and spouse.

(B) For a partnership and limited liability partnership: all partners and their spouses.

(C) For a limited partnership and limited liability limited partnership: all general and limited partners, not including a limited partner holding a direct or indirect ownership interest of 10% or less who does not exercise control over or participate in the management of the partnership, and their spouses.

(D) For a limited liability company: all members and managers, not including a member holding a direct or indirect ownership interest of 10% or less who does not exercise control over or participate in the management of the company, and their spouses.

(E) For a privately held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, all stockholders, not including those holding a direct or indirect ownership interest of 10% or less, and their spouses.

(F) For a publicly held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, all stockholders, not including those holding a direct or indirect ownership interest of 10% or less, and their spouses.

(G) For a multilevel ownership enterprise: ~~any~~an entity or person that receives or has the right to receive more than 10% of the gross or net profit from the enterprise during ~~any~~a full or partial calendar or fiscal year.

(H) For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or the bylaws and their spouses.

(I) For a trust: trustees, ~~any~~an individual or body able to control and direct the affairs of the trust, and ~~any~~a beneficiary ~~who~~that receives or has the right to receive more than 10% of the gross or net profit of the trust during ~~any~~a full or partial calendar or fiscal year and their spouses.

(ii) For purposes of this definition, an applicant does not include:

(A) A person ~~who~~that provides financing to an applicant or licensee under a bona fide financing agreement at a reasonable interest rate unless the person exercises control over or participates in the management of the marihuana business.

(B) A franchisor ~~who~~that grants a franchise to an applicant, if the franchisor does not have the right to receive royalties based upon the sale of marihuana or marihuana-infused products by the applicant ~~who~~that is a franchisee. Nothing in this subrule shall be construed to preclude a franchisor from charging an applicant ~~who~~that is a franchisee a fixed fee. As used in this definition, the terms “franchise,” “franchisor,” and “franchisee” have the meanings set forth in section 2 of the franchise investment law, 1974 PA 269, MCL 445.1502.

(C) A person receiving reasonable payment for rent on a fixed basis under a bona fide lease or rental obligation unless the person exercises control over or participates in the management of the marihuana business.

(D) A person receiving reasonable payment under a licensing agreement or contract approved by the agency concerning the licensing of intellectual property, including, but not limited to, brands and recipes.

(E) A person ~~who~~that receives a percentage of profits as an employee if the employee does not meet the definition of “managerial employee” and the employee does not receive more than 10% of the gross or net profit from the licensee during ~~any~~a full or partial calendar or fiscal year.

(F) ~~A person~~An individual who receives a bonus as an employee if the employee is on a fixed wage or salary and the bonus is not more than 25% of the employee’s pre-bonus annual compensation or if the bonus is based upon a written incentive/or bonus program that is not out of the ordinary for the services rendered.

(f) “Batch” means all marihuana of the same variety that is processed together and exposed to substantially similar conditions throughout processing.

(dg) “Building” means a combination of materials forming a structure affording facility, establishment, or shelter for use or occupancy by individuals or property. Building includes a part or parts of the building and all equipment in the building. A building does not include a building incidental to the use for agricultural purposes of the land on which the building is located.

(eh) “Bureau of fire services” or “BFS” means the bureau of fire services in the department ~~of licensing and regulatory affairs~~.

(i) “Class A marihuana microbusiness” means a person licensed under R 420.110.

(j) “Clone” means a replication of a single parent plant through vegetative propagation.

~~(f) “Common ownership” means 2 or more state licenses or 2 or more equivalent licenses held by one person under the Michigan Regulation and Taxation of Marihuana Act.~~

(gk) “Complete application” means an application that includes all of the information required in ~~R 420.2 to R 420.5 and R 420.7 to R 420.10~~R 420.3 to R 420.8.

(l) “Contested case hearing” means an administrative hearing conducted by an administrative law judge within MOAHR on behalf of the agency in accordance with the acts and these rules.

(m) “Cultivar” means a cultivated variety of a plant species selected for desired traits when propagated by division, root and stem cuttings, offsets, grafting, tissue culture, or carefully controlled seed production to retain those traits.

(n) “Cultivator” means a grower under the MMFLA or a marihuana grower under the MRTMA, or both.

(ho) “Department” means the department of licensing and regulatory affairs.

(ip) “Designated consumption establishment” means a commercial space that is licensed by the agency and authorized to ~~permit~~allow adults 21 years of age and older to consume marihuana products at the location indicated on the state license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA.

~~(j) “Director” means the director of the department of licensing and regulatory affairs or his or her designee.~~

(q) “Edible marihuana product” means a marihuana-infused product that is intended for human consumption in a manner other than inhalation. Edible marihuana product does not include a marihuana-infused product that is intended for topical application.

(kr) “Employee” means ~~a person~~an individual performing work or service for compensation. “Employee” does not include individuals providing trade or professional services who are not normally engaged in the operation of a marihuana business.

(ls) “Equivalent licenses” means any of the following ~~held by a person~~:

(i) A marihuana grower license of ~~any~~a class issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA and a grower license, of ~~any~~the same class, issued under the ~~medical marihuana facilities licensing act~~MMFLA.

(ii) A marihuana processor license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~ MRTMA and a processor license issued under the ~~medical marihuana facilities licensing act~~MMFLA.

(iii) A marihuana retailer license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA and a provisioning center license issued under the ~~medical marihuana facilities licensing act~~MMFLA.

(iv) A marihuana secure transporter license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA and a secure transporter license issued under the ~~medical marihuana facilities licensing act~~MMFLA.

(v) A marihuana safety compliance facility license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA and a safety compliance facility license issued under the ~~medical marihuana facilities licensing act~~MMFLA.

(mt) “Excess marihuana grower” means a ~~license issued to a person holding 5 class C marihuana grower licenses and licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments~~person licensed under R 420.103.

(u) “Executive director” means the executive director of the agency.

(v) “Final form” means the form marihuana is in when it is available for sale by a marihuana sales location, not including final consumer packaging. For marihuana intended for inhalation, final form means the marihuana concentrate in an e-cigarette or vaping device.

(w) “Full compliance testing” means the full panel of tests in R 420.306 that marihuana must pass before it can be sold or transferred.

(x) “Good agricultural collection practices” or “GACP” means the World Health Organization’s or the American Herbal Products Association’s guidelines regarding the safety, efficacy, and sustainability of medicinal plant material used in herbal medicines.

(y) “Good manufacturing practices” or “GMP” means the United States Food and Drug Administration’s formal regulations regarding the design, monitoring, control, and maintenance of manufacturing processes and facilities intended to ensure that products are manufactured to specific requirements, including identity, strength, quality, and purity.

(z) “Harvest batch” means a designated quantity of dried marihuana flower or trim, leaves, and other marihuana plant material that is a uniform cultivar, harvested in whole or in part at the same time, and cultivated using the same pesticides or other agricultural chemicals.

(naa) “Immature plant” means a nonflowering marihuana plant that is no taller than 8 inches from the growing or cultivating medium and no wider than 8 inches, and is produced from a cutting, clipping, tissue culture, or seedling that is in a growing or cultivating medium or in a growing or cultivating container.

(bb) “Immature plant batch” means a designated quantity of immature plants.

(cc) “Inactive ingredients” means binding materials, dyes, preservatives, flavoring agents, and other ingredients not derived from the plant cannabis sativa l. Inactive ingredients do not include conventional food ingredients or ingredients that are generally regarded as safe by the United States Food and Drug Administration.

(dd) “Industrial hemp research and development act” means the industrial hemp research and development act, 2014 PA 547, MCL 286.841 to 286.859.

(ee) “Intellectual property” means all original data, findings, or other products of the mind or intellect commonly associated with claims, interests, and rights that are protected under trade secret, patent, trademark, copyright, or unfair competition law and includes brands or recipes.

(ff) “Internal product sample” means a sample of marihuana that a cultivator, producer, or marihuana sales location transfers directly to an employee for the purpose of ensuring the quality of the marihuana or making determinations about whether to sell or transfer the marihuana.

(gg) “Laboratory” means a safety compliance facility under the MMFLA or a marihuana safety compliance facility under the MRTMA, or both.

(hh) “Licensing agreement” means an understanding or contract concerning the licensing of intellectual property related to marihuana between a licensee and another party.

(ii) “Limit of quantitation” or “LOQ” means the minimum concentration or mass of an analyte in a given matrix that can be reported as a quantitative result.

(ojj) “Limited-access area” means a building, room, or other contiguous area of a marihuana business where marihuana is grown, cultivated, stored, weighed, ~~packaged, sold, or processed for sale and that is under the control of the licensee~~processed, packaged, or tested.

(kk) “Management agreement” means an understanding or contract between a licensee and another party for the provision of management or other services, but does not include an agreement for the reasonable payment of rent under a bona fide lease or rental obligation unless the other party exercises control over or participates in the management of the marihuana business.

(pll) “Managerial employee” means ~~those employees who have~~an employee who has the ability to control ~~and~~or direct the affairs of the marihuana business or ~~have~~has the ability to make policy concerning the marihuana business, or both.

(mm) “Manufacturing agreement” means an understanding or contract between a licensee and another party whereby the licensee agrees to provide marihuana manufacturing or production services for the other party for an agreed on fee, which may be a set price, a price to be determined during or after manufacturing, based on a split of the marihuana, or other terms as agreed upon by the parties.

(2) As used in these rules:

(qa) “Marihuana business” means a marihuana facility under the ~~medical marihuana facilities licensing act~~MMFLA, or a marihuana establishment under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA, or both.

(r) “Marihuana business location plan” means a marihuana facility plan under the medical marihuana facilities licensing act, or a marihuana establishment plan under the Michigan Regulation and Taxation of Marihuana Act, or both.

(s) “Marihuana establishment” means a marihuana grower, marihuana safety compliance facility, marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter, or any other type of marihuana-related business licensed by the agency under the Michigan Regulation and Taxation of Marihuana Act.

(b) “Marihuana customer” means a registered qualifying patient or registered primary caregiver under the MMFLA, or an individual 21 years of age or older under the MRTMA, or both.

(tc) “Marihuana event organizer” means a person licensed ~~to apply for a temporary marihuana event license under these rules~~under R 420.104 to organize and hold temporary marihuana events.

~~(u) “Marihuana facility” means a location at which a licensee is licensed to operate under the medical marihuana facilities licensing act.~~

(vd) “Marihuana license” means a state operating license issued under the ~~medical marihuana facilities licensing act~~MMFLA, or a state license issued under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA, or both.

(e) “Marihuana plant waste” means a root, stalk, leaf, stem, or root ball of a marihuana plant and associated soil or organic potting media.

(f) “Marihuana pre-roll” means marihuana that in final form consists of a combination of marihuana bud, shake, or trim that is wrapped and sealed in rolling paper and is intended for inhalation in that form.

~~(w) “Marihuana product” means marihuana or a marihuana-infused product, or both, as those terms are defined in the acts unless otherwise provided for in these rules.~~

(g) “Marihuana sales location” means a provisioning center under the MMFLA or a marihuana microbusiness, class A marihuana microbusiness, or marihuana retailer under the MRTMA, or both.

(xh) “Marihuana tracking act” means the marihuana tracking act, 2016 PA 282, MCL 333.27901 to 333.27904.

(yi) “Marihuana transporter” means a secure transporter under the ~~medical marihuana facilities licensing act~~MMFLA or a marihuana secure transporter under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA, or both.

(j) “Marihuana waste” means waste that is, or contains, marihuana. Marihuana waste does not include marihuana plant waste.

(k) “Mature plant” means a flowering or nonflowering marihuana plant that has taken root and is taller than 8 inches from the growing or cultivating medium or wider than 8 inches, produced from a cutting, clipping, tissue culture, or seedling, and is in a growing or cultivating medium or in a growing or cultivating container.

(zl) “Medical marihuana facilities licensing act” or “MMFLA” means the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.

(aam) “Michigan Medical Marihuana Act” means the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430.

(bbn) “Michigan Regulation and Taxation of Marihuana Act” or “MRTMA” means the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.

(o) “MOAHR” means the Michigan office of administrative hearings and rules within the department.

(p) “MOAHR administrative hearing rules” means R 792.10101 to R 792.11903.

(q) “Package tag” means an RFID supplied through the statewide monitoring system for the purpose of identifying a package containing marihuana.

(r) “Parties” means a licensee and another party pursuant to a licensing, management, manufacturing, or other agreement.

(s) “Plant tag” means an RFID tag supplied through the statewide monitoring system for the purpose of identifying an individual marihuana plant.

(t) “Producer” means a processor under the MMFLA or a marihuana processor under the MRTMA, or both.

(u) “Production batch” means a designated quantity of marihuana that is created from a processing job in the statewide monitoring system during which the marihuana undergoes extraction or the incorporation of other ingredients.

(ccv) “Proposed marihuana business” means a proposed marihuana establishment under the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA or a proposed marihuana facility under the ~~medical marihuana facilities licensing act~~MMFLA, or both.

(w) “Public investigative hearing” means a hearing in which an applicant or licensee has an opportunity to present testimony and evidence to establish eligibility and suitability for a marihuana license.

(x) “Reasonable payment” means payment of 10% or less of the total on a licensee’s trial balance sheet during a full or partial calendar or fiscal year.

(y) “Records of formulation” means all of the following for a marihuana-infused product:

(i) The list of ingredients and their certificates of analysis.

(ii) The recipe.

(iii) A description of the process in which ingredients are combined to produce marihuana in final form.

~~(dd) “Restricted access area” means a designated and secure area at a marihuana business where marihuana products are sold, possessed for sale, or displayed for sale.~~

(z) “Tag” or “RFID tag” means the unique identification number or radio frequency identification issued to a licensee by the statewide monitoring system for identifying and tracking marihuana in the statewide monitoring system.

(aa) “Temporary marihuana event license” means a state license issued under part 3 of these rules to a marihuana event organizer for the onsite sale or transfer of marihuana at a location other than the location of a marihuana retailer, marihuana microbusiness, or class A marihuana microbusiness.

(eebb) “These rules” means the administrative rules promulgated by the agency under the authority of the ~~medical marihuana facilities licensing act~~MMFLA, the marihuana tracking act, the ~~Michigan Regulation and Taxation of Marihuana Act~~MRTMA, and Executive Reorganization Order No. 2019-2, MCL 333.27001.

(ff) “Same location” means separate marihuana licenses that are issued to multiple marihuana businesses that are authorized to operate at a single property but with separate business suites, partitions, or addresses.

(gg) “Special license” means a state license as described under section 8 of the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27958, and issued pursuant to section 9 of that act, MCL 333.27959.

(hh) “Stacked license” means more than 1 marihuana license issued to a single licensee to operate as a class C grower as specified in each license at a marihuana business under the medical marihuana facilities licensing act, or under the Michigan Regulation and Taxation of Marihuana Act, or both.

(ii) “Tag” or “RFID tag” means the unique identification number or Radio Frequency Identification (RFID) issued to a licensee by the statewide monitoring system for tracking, identifying, and verifying marihuana plants, marihuana products, and packages of marihuana product in the statewide monitoring system.

(jj) “Temporary marihuana event license” means a state license held by a marihuana event organizer under the Michigan regulation and taxation of marihuana act, for an event where the onsite sale or consumption of marihuana products, or both, are authorized at the location indicated on the state license.

(cc) “Trade sample” means a sample of marihuana that a cultivator or producer provides to another marihuana business for the purpose of the marihuana business determining whether to purchase the marihuana.

(23) Terms defined in the acts have the same meanings when used in these rules unless otherwise indicated.

R 420.2 ~~Licensure; application; background investigation; consent to inspections, investigations, and audits; disclosure of confidential records; interest in other state license; fee; additional costs.~~ Adoption by reference.

Rule 2. ~~(1) A person may apply to the agency for marihuana licenses and special licenses as provided in the acts and these rules.~~

(2) The agency shall use information provided on the application as a basis to conduct a thorough background investigation on the applicant. The agency shall notify the applicant of a deficiency and provide instructions for submitting a complete application. The applicant shall timely respond to the notice of the deficiency in accordance with R. 420.5.

(3) An applicant must provide written consent to investigations of compliance, regular inspections, examinations, searches, seizures, and auditing of books and records and to disclosure to the agency and its agents of otherwise confidential records, including tax records held by any federal, state, or local agency, or credit bureau or financial institution, while applying for or holding a marihuana license as authorized under the acts and these rules.

~~(4) An applicant must certify that the applicant does not have any interest in any other marihuana license that is prohibited under the acts.~~

(5) A nonrefundable application fee must be paid at the time of filing to defray the costs associated with the background investigation conducted by the agency. The agency shall set the amount of the application fee for each category and class of license by rule. If the costs of the investigation and processing the application exceed the application fee, the applicant shall pay the additional amount to the agency. All information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the agency in the course of its review or investigation of an application for a marihuana license under the acts shall be disclosed only in accordance with the acts. (1) The following codes, standards, and regulations that have been adopted by nationally recognized organizations or associations or an agency of the United States are adopted by reference in these rules:

(a) National fire protection association (NFPA) standard 1, 2021 edition, entitled, “Fire

Code.” Copies of the adopted provisions are available for inspection and distribution from the National Fire Protection Association, 1 Batterymarch Park, P.O. Box 9101, Quincy, Massachusetts, 02169, telephone number 1-800-344-3555, for the price of $155.00.

(b) National fire protection association (NFPA) standard 58, 2020 edition, entitled, “Liquified Petroleum Gas Code.” Copies of the adopted provisions are available for inspection and distribution from the National Fire Protection Association, 1 Batterymarch Park, P.O. Box 9101, Quincy, Massachusetts, 02169, telephone number 1-800-344-3555, for the price of $70.50.

(c) AOAC International Official Methods of Analysis, 22^nd edition. Copies of the adopted provisions are available for inspection and distribution from the Association of Official Analytical Collaboration (AOAC) International, 2275 Research Boulevard, Suite 300, Rockville, Maryland, 20850, telephone number 1-800-379-2622, for the price of $950.00.

(d) International Organization for Standardization (ISO), ISO/IEC 17025:2017, General Requirements for the Competence of Testing and Calibration Laboratories, available at: https://webstore.ansi.org/RecordDetail.aspx?sku=ISO%2fIEC+17025%3a2017, for the price of $162.00.

(e) International Organization for Standards (IS0), ISO/IEC 17065:2012, Conformity Assessment – Requirements for Bodies Certifying Products, Processes and Services, available at: https://webstore.ansi.org/Standards/ISO/ISOIEC170652012, for the price of $175.00.

(f) International Organization for Standards (IS0), ISO/IEC 17043:2023, Conformity Assessment – General Requirements for Proficiency Testing, available at: https://webstore.ansi.org/Standards/ISO/ISOIEC170432010, for the price of $200.00.

(g) The provisions of 21 CFR, part 117, “Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food,” revised July 29, 2016, available at no charge from the Office of the Federal Register at www.ecfr.gov.

(h) The provisions of 40 CFR, part 136, “Guidelines Establishing Test Procedures for the Analysis of Pollutants,” revised August 15, 2024, available at no charge from the Office of the Federal Register at www.ecfr.gov.

(i) The provisions of 40 CFR, part 160, “Good Laboratory Practice Standards,” revised December 12, 2008, available at no charge from the Office of the Federal Register at www.ecfr.gov.

(2) The standards adopted in subrule (1)(a) to (f) of this rule are available for inspection and distribution at the agency, located at 2407 North Grand River Avenue, Lansing, Michigan, 48906. Copies of these standards may be obtained from the agency at the cost indicated in subrule (1)(a) to (f) of this rule, plus shipping and handling.

R 420.2a Other applicable statutes.

Rule 2a. (1) A licensee shall comply with the requirements of applicable statutes in the Michigan compiled laws and is responsible for knowing the applicability of those laws to the licensee’s business. Applicable laws include, but are not limited to, all of the following:

(a) The weights and measures act, 1964 PA 283, MCL 290.601 to 290.635.

(b) The natural resources and environmental protection act, 1994 PA 451, MCL 324.101 to 324.90106.

(c) The Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094.

(d) The General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78.

(e) The income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.847.

(f) The general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

(g) The Michigan limited liability company act, 1993 PA 23, MCL 450.4101 to 450.5200.

(h) The business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098.

(i) 1907 PA 101, MCL 445.1 to 445.5.

(j) The Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

R 420.2b Severability.

Rule 2b. If a rule or subrule of these rules, in whole or in part, is found to be invalid by a court of competent jurisdiction, this decision will not affect the validity of the remaining portion of these rules.

PART 2. APPLICATIONS AND LICENSING

R 420.3 ~~Application procedure; requirements~~ Prequalification; application process.

Rule 3. (1) A person shall apply for a marihuana license on the form created by the agency and pay a nonrefundable application fee at the time the application is submitted. The applicant shall answer each question on the application, under oath, in its entirety. All attestations, disclosures, and information requested and required by the agency, the acts, and these rules must be submitted in the application. Failure to comply with these rules and the application requirements in the acts is grounds for denial of the application.

(2) A person may submit a partial application under these rules on the condition that it is to prequalify to complete the remaining application requirements. This application has a pending status until all application requirements in these rules are completed, or the agency denies the partial or complete application. The agency shall not issue a marihuana license at this stage of the application process. The finding of prequalification status for a pending application is valid for 2 years after the agency issues a notice of prequalification status. After 2 years has expired, the applicant may be required to submit a new application and pay a new nonrefundable application fee.

(3) A partial application filed to obtain prequalification status may be administratively withdrawn if the application was filed and has been pending for more than 1 year. After a partial application has been administratively withdrawn, the applicant may be required to submit a new application and pay a new nonrefundable application fee.

(4) The agency may request additional disclosures and documentation from an applicant. The applicant shall submit the information requested by the agency within 5 days pursuant to R. 420.5 or the application may be denied.

(5) The agency may administratively withdraw an application for a marihuana license that was submitted and has been pending for more than 1 year. After an application has been administratively withdrawn, the applicant may be required to submit a new application.

(6) The agency may administratively withdraw an amendment to any application or marihuana license if the applicant or licensee fails to respond or submit documentation to cure all deficiencies within 30 days after notice of the deficiency. (1) An applicant may apply for prequalification by submitting the information, disclosures, documents, and attestations required under R 420.4 and a nonrefundable application fee of $3,000.00 to defray the costs associated with the background investigation conducted by the agency and processing the application.

(2) An applicant for prequalification shall notify the agency in a timely manner if information provided to the agency as part of the prequalification application changed after the application was submitted.

(3) Except as provided in subrule (6) of this rule, an applicant’s prequalification status is valid for 2 years after the agency issues a notice of prequalification status.

(4) The agency may administratively withdraw an application for prequalification if the application was submitted and is pending for more than 1 year.

(5) If the agency identifies a deficiency in a prequalification application, the agency shall notify the applicant of the deficiency and provide instructions for correcting the deficiency in the prequalification application. The applicant shall submit the missing information or proof that the deficiency has been corrected to the agency within 5 days after the date the applicant received the deficiency notice.

(6) The agency may revoke an applicant’s prequalification status if it determines that the applicant no longer meets the eligibility requirements for prequalification.

(7) Except as provided in R 420.19a, if an applicant that previously applied for prequalification submits a new application for prequalification, the applicant shall pay a new application fee.

(8) If the costs of the investigation and processing the prequalification application exceed the application fee, the applicant shall pay an additional amount sufficient to cover the additional costs.

(9) The agency shall use the information provided in the prequalification application to conduct a background investigation on the applicant.

R 420.4 ~~Application requirements; financial and criminal background~~ Prequalification; requirements.

Rule 4. (1) Each applicant shall disclose the identity of any other person who controls, either directly or indirectly, the applicant, including, but not limited to, date of birth, government issued identification, and any other documents required by the agency.

~~(2) Each applicant shall disclose the financial information required in the acts and these rules on a form created by the agency, which may include the following:~~

~~(a) For an applicant seeking licensure under the MMFLA, required information may include, but is not limited to, all of the following:~~

~~(i) Financial statements regarding all of the following:~~

~~(A) A pecuniary interest.~~

~~(B) Any deposit of value of the applicant or made directly or indirectly to the applicant, or both.~~

(C) Financial accounts including, but not limited to, all of the following: funds, savings, checking, or other accounts including all applicable account information, such as the name of the financial institution, names of the account holders, account type, account balances, and a list of all loans types specified by the agency, amounts, securities, or lender information.

~~(ii) Property ownership information, including, but not limited to, deeds, leases, rental agreements, real estate trusts, or purchase agreements.~~

~~(iii) Tax information, including, but not limited to, W-2 and 1099 forms, and any other information required by the agency.~~

~~(iv) Disclosure by the applicant of the identity of any other person who meets either of the following:~~

~~(A) Controls, directly or indirectly, the applicant.~~

~~(B) Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.~~

~~(v) The sources and total amount of the applicant’s capitalization to operate and maintain the proposed marihuana facility in compliance with R 420.11.~~

(vi) A financial statement attested by a certified public accountant (CPA), on a form created by the agency, including a foreign-attested CPA statement, or its equivalent if applicable on capitalization pursuant to R 420.11.

~~(vii) Information on the financial ability of the applicant to purchase and maintain adequate liability and casualty insurance in compliance with R 420.10.~~

~~(viii) Any other documents, disclosures, or attestations created or requested by the agency that are not inconsistent with the acts or these rules.~~

~~(b) For an applicant seeking licensure under the MRTMA all of the following may be required:~~

~~(i) Tax information, including, but not limited to:~~

~~(A) W-2 forms for the most recent tax year.~~

~~(B) 1099 forms for the most recent tax year.~~

~~(ii) Any other information relevant to the application for licensure required by the agency.~~

~~(3) Each applicant shall disclose the identity of every person having a 2.5% or greater ownership interest in the applicant with respect to which the license is sought.~~

~~(a) If the disclosed entity is a trust, the applicant shall disclose the names and addresses of the beneficiaries.~~

~~(b) If the disclosed entity is a privately held corporation, the names and addresses of all shareholders, officers, and directors.~~

~~(c) If the disclosed entity is a publicly held corporation, the names and addresses of all shareholders holding a direct or indirect interest of greater than 5%, officers, and directors.~~

~~(d) If the disclosed entity is a partnership or limited liability partnership, the names and addresses of all partners.~~

~~(e) If the disclosed entity is a limited partnership or limited liability limited partnership, the names of all partners, both general and limited.~~

~~(f) If the disclosed entity is a limited liability company, the names and addresses of all members and managers.~~

(4) Each applicant shall disclose the applicant’s business organizational documents filed with this state, any other state, local county, or foreign entity, if applicable, including proof of registration to do business in this state and certificate of good standing from this state, any other state, or foreign entity, if applicable.

~~(5) Each applicant shall disclose to the agency criminal and financial background information and regulatory compliance as provided under the acts and these rules on a form created by the agency.~~

~~(6) Each applicant shall provide written consent to a criminal and financial background investigation as authorized under the acts and these rules.~~

(7) Each applicant shall provide an attestation acknowledging that sanctions may be imposed for violations on a licensee while licensed or after the marihuana license has expired, as provided in the acts and these rules.

~~(8) Each applicant shall provide an attestation affirming a continuing duty to provide information requested by the agency and to cooperate in any investigation, inspection, inquiry, or hearing.~~

(9) Each applicant shall disclose any noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to fraud, environmental, food safety, tobacco, alcohol, labor, employment, worker’s compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.

(10) Each applicant shall disclose any application or issuance of any commercial license or certificate issued in this state or any other jurisdiction that meets the requirements under the acts and these rules.

~~(11) Each applicant shall provide any other documents or attestations created by, or make any disclosures requested by, the agency that are not inconsistent with the acts or these rules.~~

~~(12) An applicant shall submit in the application any information requested and required by the acts and these rules.~~

~~(13) Each applicant seeking licensure under the MMFLA must submit one set of fingerprints to the department of state police in accordance with section 402 of the MMFLA, MCL 333.27402.~~

(14) Each applicant seeking licensure under the MRTMA shall provide an attestation acknowledging that the applicant must have a physical structure for the marihuana establishment and pass the prelicensure inspection within 60 calendar days of submitting a complete application to the agency. Failure to pass the prelicensure inspection within 60 calendar days of submitting the complete application to the agency may result in the application begin denied in accordance with R 420.12.

(15) An applicant shall provide an attestation signed by a representative of the department of treasury and the applicant, verifying that the applicant is not delinquent in the payment of sales, excise, or any other taxes.

(16) An applicant seeking licensure under the MRTMA shall provide a social equity plan detailing a plan to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities. (1) An applicant for prequalification shall submit to the agency information, disclosures, documents, or attestations required by the agency regarding any of the following:

(a) The identity of an individual who controls, either directly or indirectly, the applicant, the individual’s date of birth, and a copy of the individual’s government-issued identification.

(b) The identity of a person having a 2.5% or greater ownership interest in the applicant according to any of the following:

(i) If the person is a trust, the applicant shall disclose the names and addresses of the beneficiaries of the trust.

(ii) If the person is a privately held corporation, the applicant shall disclose the names and addresses of all officers, directors, and shareholders.

(iii) If the person is a publicly held corporation, the applicant shall disclose the names and addresses of all officers, directors, and shareholders holding a direct or indirect interest of greater than 5%.

(iv) If the person is a partnership or limited liability partnership, the applicant shall disclose the names and addresses of all partners.

(v) If the person is a limited partnership or limited liability limited partnership, the applicant shall disclose the names and addresses of all partners, both general and limited.

(vi) If the person is a limited liability company, the applicant shall disclose the names and addresses of all members and managers.

(c) The applicant’s criminal history.

(d) The applicant’s financial information.

(e) The applicant’s noncompliance with regulatory requirements.

(f) Legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to the applicant’s business operations, including, but not limited to, fraud, environmental safety, food safety, tobacco, alcohol, labor, employment, worker’s compensation, discrimination, and tax laws and regulations, in this state or another jurisdiction.

(g) An application for or issuance of a license or certificate issued in this state, or another jurisdiction related to activities regulated under the acts and these rules.

(h) Consent to a criminal and financial background investigation.

(i) Consent to investigations of compliance, regular inspections, examinations, searches, seizures, and auditing of books and records.

(j) Consent to disclosure to the agency of otherwise confidential records, including tax records held by a federal, state, or local agency, or credit bureau or financial institution.

(k) Certification that the applicant does not have an interest in another marihuana license that is prohibited under the acts.

(l) Business organizational documents filed with this state, another state, a local county, or a foreign entity, if applicable, including, but not limited to, proof of registration to do business in this state and certificate of good standing from this state, another state, or a foreign entity.

(m) Acknowledgement that sanctions may be imposed for violations of the acts or these rules against a licensee while the licensee is licensed or after the licensee’s marihuana license is closed.

(n) Affirmation of a continuing duty to provide information requested by the agency and to cooperate in an investigation, inspection, inquiry, or hearing.

(o) Verification that the applicant is not delinquent in the payment of sales, excise, or other taxes.

(p) Tax information, including, but not limited to, W-2 and 1099 forms.

(q) Other information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data required by the agency that are not inconsistent with the acts or these rules.

(2) In addition to the requirements under subrule (1) of this rule, an applicant for a state license under the MRTMA shall submit a social equity plan detailing the applicant’s efforts to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities.

R 420.4a Prequalification under the MMFLA; financial information; capitalization;

fingerprints.

Rule 4a. (1) In addition to the requirements under R 420.4, an applicant for prequalification under the MMFLA shall submit to the agency information, disclosures, documents, or attestations required by the agency regarding any of the following:

(a) Financial statements regarding all of the following:

(i) A pecuniary interest.

(ii) A deposit of value of the applicant or made directly or indirectly to the applicant, or both.

(iii) Financial accounts, including, but not limited to, all of the following: funds, savings, checking, or other accounts, including all applicable account information, such as the name of the financial institution, names of the account holders, account type, account balances, and a list of all loan types specified by the agency, amounts, securities, or lender information.

(b) Property ownership.

(c) The total amounts of capitalization based on the type of marihuana facility specified in the application for a state operating license, as follows:

(i) Grower - Class A: $150,000.00.

(ii) Grower - Class B: $300,000.00.

(iii) Grower - Class C: $500,000.00.

(iv) Processor: $300,000.00.

(v) Provisioning Center: $300,000.00.

(vi) Secure Transporter: $200,000.00.

(vii) Safety Compliance Facility: $200,000.00.

(d) Proof to the agency of the capitalization amounts specified in paragraphs (i) to (vii) of subdivision (c) of this subrule from both of the following sources:

(i) Not less than 25% in cash or assets easily convertible to cash, including, but not limited to, certificates of deposit, 401(k) plans, stocks, and bonds to cover the initial expenses of operating and maintaining the proposed marihuana facility, as specified in the application.

(ii) The remaining capitalization to cover the initial expenses of operating and maintaining the proposed marihuana facility including, but not limited to, additional assets as described in subdivision (a) of this subrule or equity in real property, supplies, equipment, fixtures, or another nonliquid asset.

(e) Proof that there is no lien or encumbrance, except for a mortgage encumbering the real property, on the asset provided as a source of capitalization. For purposes of this subdivision, if the encumbrance is a mortgage on the real property, the applicant shall disclose the value of the equity of the real property less a mortgage.

(2) The capitalization amounts and sources must be validated by financial statements attested to by a certified public accountant (CPA). The applicant shall disclose if any of the capitalization sources are foreign. A foreign CPA or its equivalent and a domestic CPA shall attest to the foreign validation.

(3) An applicant for prequalification under the MMFLA shall submit 1 set of fingerprints to the department of state police for a criminal history check in accordance with section 402 of the MMFLA, MCL 333.27402.

R. 420.5 ~~Application requirements; complete application~~ Marihuana license; application process.

Rule 5. ~~(1) A complete application for a marihuana license must include all the information required in R 420.2 to R 420.4, R 420.7 to R 420.10, and all of the following:~~

~~(a) A description of the type of marihuana business that includes all of the following:~~

~~(i) An estimate or actual number of employees.~~

~~(ii) A business plan.~~

~~(iii) The proposed location of the marihuana business.~~

~~(iv) A security plan, as required under the acts and these rules.~~

~~(b) A copy of the proposed marihuana business location plan as required under R 420.8.~~

~~(c) The disclosure of both of the following persons:~~

~~(i) For an applicant seeking licensure under the MMFLA, persons that have a beneficial interest as required in section 303(1)(g) of the MMFLA, MCL 333.27303.~~

~~(ii) For an applicant seeking licensure under the MRTMA, persons who have a direct or indirect ownership interest in the marihuana establishment.~~

~~(d) For an applicant seeking licensure under the MMFLA, confirmation of municipal compliance on an attestation form provided by the agency that contains includes all of the following:~~

(i) Written affirmation that the municipality has adopted an ordinance under section 205 of the MMFLA, MCL 333.27205, including, if applicable, a description of any limitations on the number of each type of marihuana facility.

~~(ii) A description of any regulations within the municipality that apply to the proposed marihuana business.~~

~~(iii) The date and signature of the clerk of the municipality or his or her designee on the attestation form attesting that the information stated in the document is correct.~~

~~(iv) The date and signature of the applicant.~~

~~(v) The name and address of the proposed marihuana business facility name and address.~~

~~(vi) The license type of the proposed marihuana facility.~~

(vii) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana facility, any municipal facility approvals, or any violations of a municipal or zoning regulation.

~~(e) For an applicant seeking licensure under the MRTMA, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:~~

~~(i) The name and address of the proposed marihuana establishment.~~

~~(ii) The license type or the proposed marihuana establishment.~~

~~(iii) The municipality where the proposed marihuana establishment is located.~~

~~(iv) The contact information for the municipality including the following at a minimum:~~

~~(A) The name of the clerk of the municipality or his or her designee.~~

~~(B) The telephone number of the clerk of the municipality or his or her designee.~~

~~(C) The email address of the clerk of the municipality or his or her designee.~~

~~(D) The mailing address of the clerk of the municipality or his or her designee.~~

~~(v) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana establishment.~~

~~(vi) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.~~

(vii) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana establishment, any municipal establishment approvals, or any violations of a municipal or zoning regulation.

~~(viii) The date and signature of the applicant.~~

~~(2) Each applicant shall provide any additional information and documents requested by the agency not inconsistent with the acts and these rules.~~

~~(3) Each applicant shall provide any other documents, disclosures, or attestations created or requested by the agency that are not inconsistent with the acts and these rules.~~

(4) If the agency identifies a deficiency in an application, the agency shall notify the applicant and the applicant shall submit the missing information or proof that the deficiency has been corrected to the agency within 5 days of the date the applicant received the deficiency notice.

(5) The failure of an applicant to correct a deficiency within 5 days of notification by the agency may result in the denial of the application. An applicant denied under this subrule is not barred from reapplying by submitting a new application and application fee. (1) An applicant that is prequalified under R 420.3 may apply for a marihuana license in a manner prescribed by the agency and shall submit all of the following:

(a) An application described in R 420.6.

(b) Proof of financial responsibility described in R 420.7.

(c) A marihuana business location plan described in R 420.8.

(d) A certificate of use and occupancy required under section 13 of the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1513, and R 420.210. If this certificate is not available, the agency may accept alternative documentation from the building authority.

(e) Proof of a completed fire safety inspection described in R 420.8a, if applicable.

(2) In addition to the requirements under subrule (1) of this rule, an applicant shall provide other information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data required by the agency that are not inconsistent with the acts or these rules.

(3) An applicant for a marihuana license shall notify the agency in a timely manner if information provided to the agency as part of the application changed after the application was submitted.

(4) The agency may administratively withdraw an application for a marihuana license if the application was submitted and is pending for more than 1 year.

(5) If the agency identifies a deficiency in an application, the agency shall notify the applicant of the deficiency and provide instructions for correcting the deficiency in the application. The applicant shall submit the missing information or proof that the deficiency has been corrected to the agency within 5 days after the date the applicant received the deficiency notice. The failure of an applicant to correct a deficiency within 5 days after notification by the agency may result in the denial of the application.

(6) A marihuana license is issued for a 1-year period and is renewable annually.

(7) No information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data provided to or used by the agency during its review or investigation of an application for a marihuana license shall be disclosed except as allowed or required by law.

(8) The agency may determine that a requirement listed in this part of these rules is not applicable to a specific license type and is therefore not required for that license type.

(9) The agency shall not issue a marihuana license until all of the following have been met:

(a) An applicant complies with the requirements of R 420.3 to R 420.8a.

(b) The agency determines that the applicant is qualified to receive a marihuana license.

(c) The applicant pays the fee required under R 420.9.

R 420.6 ~~State license under the Michigan regulation and taxation of marihuana act; issuance; qualifications; ineligibility~~ Marihuana license; application requirements.

Rule 6. (1) The agency shall not issue a state license under the MRTMA until a complete application is submitted, the fees required under these rules are paid, and the agency determines that the applicant is qualified to receive a state license under the acts and these rules. An applicant under MRTMA must pay initial licensure fees within 10 calendar days of approval of the state license or within 90 calendar days of submitting a complete application, whichever date is first. Failure to pay the fees required under R 420.7 may be grounds for the denial of state license.

~~(2) An applicant is ineligible to receive a state license if any of the following circumstances exist:~~

~~(a) The applicant has a prior conviction that involved distribution of a controlled substance to a minor.~~

~~(b) The applicant has knowingly submitted an application for a state license under the MRTMA that contains false information.~~

(c) The applicant is an employee, advisor, or consultant of the agency involved in the implementation, administration, or enforcement of the MRTMA or these rules pursuant to section 7 of the MRTMA, MCL 333.27957.

(d) The applicant holds an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government, or is employed by a governmental unit of this state. This subdivision does not apply to any of the following:

~~(i) An elected officer of or employee of a federally recognized Indian tribe.~~

~~(ii) An elected precinct delegate.~~

~~(iii) The spouse of a person who applies for a state license unless the spouse’s position creates a conflict of interest or is within any of the following:~~

~~(A) The marijuana regulatory agency.~~

~~(B) A regulatory body of a governmental unit in this state, another state, or the federal government that makes decisions regarding adult-use marijuana.~~

(e) The agency determines the municipality in which the applicant’s proposed marihuana establishment will operate has adopted an ordinance that prohibits marihuana establishments or that the proposed establishment is noncompliant with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.

(f) The applicant will hold an ownership interest in both a marihuana safety compliance facility or in a marihuana secure transporter and in a marihuana grower, a marihuana processor, a marihuana retailer, or a marihuana microbusiness, or a class A marihuana microbusiness in violation of section 9 of the MRTMA, MCL 333.27959.

(g) The applicant will hold an ownership interest in both a marihuana microbusiness or a class A marihuana microbusiness and in a marihuana grower, a marihuana processor, a marihuana retailer, a marihuana safety compliance facility, or a marihuana secure transporter, in violation of section 9 of the MRTMA, MCL 333.27959.

(h) The applicant will hold an ownership interest in more than 5 marihuana growers or in more than 1 marihuana microbusiness or class A marihuana microbusiness, in violation of section 9 of the MRTMA, MCL 333.27959.

~~(i) The applicant fails to meet other criteria established in these rules.~~

~~(3) In determining whether to grant a state license to an applicant, the agency may also consider all of the following:~~

(a) Whether the applicant or anyone meeting the definition of applicant has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana establishment is unlikely to be operated with honesty and integrity.

(b) Whether the applicant has been served with a complaint or other notice filed with any public body regarding payment of any tax required under federal, state, or local law that has been delinquent for 1 or more years.

(c) Whether the applicant has a history of noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to, fraud, environmental, food safety, labor, employment, worker’s compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.

~~(d) Whether the applicant meets other standards in rules applicable to the state license category.~~

~~(4) The agency shall review all applications for state licenses and inform each applicant of the agency’s decision.~~

~~(5) An applicant or licensee has a continuing duty to provide information requested by the agency and to cooperate in any investigation, inquiry, or hearing conducted by the agency.~~

(6) A marihuana license is a revocable privilege granted by the agency and is not a property right. Granting a marihuana license does not create or vest any right, title, franchise, or other property interest. A licensee or any other person shall not lease, pledge, borrow, or loan money against a marihuana license. (1) An applicant shall submit an application that includes all of the following:

(a) A description of the marihuana business that includes all of the following:

(i) The legal entity name.

(ii) The name under which business is to be transacted at the licensed location, if different from the legal entity name.

(iii) The type of marihuana license for which the applicant is applying.

(iv) A business plan.

(v) The proposed location of the marihuana business.

(vi) Trademarks, service marks, or brands to be used by the licensee, if known at the time of application.

(b) For an applicant seeking licensure under the MMFLA, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:

(i) Written affirmation that the municipality has adopted an ordinance under section 205 of the MMFLA, MCL 333.27205, including, if applicable, a description of limitations on the number of each type of marihuana facility.

(ii) A description of regulations within the municipality that apply to the proposed marihuana business.

(iii) The date and signature of the clerk of the municipality or the clerk’s designee on the attestation form attesting that the information stated in the document is correct.

(iv) The date and signature of the applicant.

(v) The name and address of the proposed marihuana facility.

(vi) The license type of the proposed marihuana facility.

(vii) Attestation that the applicant will report changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana facility, municipal facility approvals, or violations of a municipal or zoning regulation.

(c) For an applicant seeking licensure under the MRTMA, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:

(i) The name and address of the proposed marihuana establishment.

(ii) The license type of the proposed marihuana establishment.

(iii) The municipality where the proposed marihuana establishment is located.

(iv) The contact information for the municipality, including, at a minimum, all of the following:

(A) The name of the clerk of the municipality or the clerk’s designee.

(B) The telephone number of the clerk of the municipality or the clerk’s designee.

(C) The email address of the clerk of the municipality or the clerk’s designee.

(D) The mailing address of the clerk of the municipality or the clerk’s designee.

(v) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana establishment.

(vi) Confirmation that the applicant is in compliance with ordinances the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.

(vii) Attestation that the applicant will report changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana establishment, municipal establishment approvals, or violations of a municipal or zoning regulation.

(viii) The date and signature of the applicant.

(d) If the applicant is a producer, class A marihuana microbusiness, or microbusiness, which processing activities the applicant intends to perform.

(2) An applicant seeking licensure under the MRTMA shall provide an attestation acknowledging that the applicant shall have a physical structure for the marihuana establishment and pass the prelicensure inspection within 60 days after submitting a complete application to the agency. Failure to pass the prelicensure inspection within 60 days after submitting the complete application to the agency may result in the application being denied under R 420.11.

R 420.7 ~~Application; fees; assessment~~ Proof of financial responsibility; insurance.

Rule 7. (1) At the beginning of each state fiscal year, the agency may increase the fees collected under the MRTMA by 10% in order to pay for implementation, administration, and enforcement of that act and these rules.

~~(2) An applicant for a marihuana license shall submit an application that is accompanied by the nonrefundable application fee of $3,000.~~

~~(3) If the costs of the investigation and processing the application exceed the application fee, the applicant shall pay the additional amount.~~

~~(4) Additional fees for state licenses under MRTMA are listed in table 1:~~

~~TABLE 1~~

~~State License Type~~	~~Initial Licensure and Renewal Fees~~
~~Class A Marihuana Grower~~	~~$1,200~~
~~Class B Marihuana Grower~~	~~$6,000~~
~~Class C Marihuana Grower~~	~~$24,000~~
~~Designated Consumption Establishment~~	~~$1,000~~
~~Excess Marihuana Grower~~	~~$24,000~~
~~Marihuana Event Organizer~~	~~$1,000~~
~~Marihuana Microbusiness~~	~~$8,300~~
~~Class A Marihuana Microbusiness~~	~~$18,600~~
~~Marihuana Processor~~	~~$24,000~~
~~Marihuana Retailer~~	~~$15,000~~
~~Marihuana Safety Compliance Facility~~	~~$15,000~~
~~Marihuana Secure Transporter~~	~~$15,000~~
~~Temporary Marihuana Event~~	~~See R 420.26~~
~~Marihuana Educational Research~~	~~N/A~~

~~(5) The agency shall establish and publish annually the regulatory assessment for licensees under the MMFLA pursuant to section 603 of the MMFLA, MCL 333.27603.~~

(6) An applicant shall pay the initial licensure fees or regulatory assessment, if applicable, on or before the date the licensee begins operating and the renewal fee annually thereafter, pursuant to these rules.

(7) The agency shall not issue a marihuana license until a complete application is submitted, the fees required under these rules are paid, and the agency determines that the applicant is qualified to receive a marihuana license under the acts and these rules. An applicant under the MRTMA must pay initial licensure fees within 10 calendar days of approval of the marihuana license or within 90 calendar days of submitting a complete application, whichever date is first. An applicant under the MMFLA must pay initial licensure fees within 10 calendar days of approval of the marihuana license. An applicant must pay renewal fees upon submission of the application for renewal. Failure to pay the required fee may be grounds for the denial of a marihuana license in accordance with R 420.12. (1) Before a marihuana license is issued or renewed, the applicant or licensee shall file a proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused products on the form prescribed by the agency for an amount not less than $100,000.00.

(2) The proof required in subrule (1) of this rule must be an insurance policy and the insured person must be the licensee.

(3) In addition to the requirements in subrule (1) of this rule, a marihuana transporter shall provide all of the following for each vehicle that is used to transport marihuana:

(a) Proof of auto insurance.

(b) A copy of the vehicle registration.

(c) Proof that the vehicle is registered as a commercial motor vehicle.

(4) An applicant for a marihuana event organizer license under the MRTMA is not required to provide the proof of financial responsibility for liability for bodily injury required under subrule (1) of this rule. A marihuana event organizer shall submit a proof of financial responsibility for liability for bodily injury when applying for a temporary marihuana event license or proof that each marihuana microbusiness, class A marihuana microbusiness, and marihuana retailer participating in the temporary marihuana event has coverage for liability for bodily injury when applying for a temporary marihuana event license.

(5) In addition to the proof of financial responsibility requirements in subrule (1) of this rule, an applicant or licensee under the MMFLA shall also carry commercial general liability insurance covering premises liability for an amount not less than $100,000.00. The applicant or licensee shall submit proof of commercial general liability insurance covering the premises liability to the agency not later than 60 days after the agency issues or renews a state operating license.

(6) In addition to the proof of financial responsibility requirements in subrule (1) of this rule, an applicant or licensee under the MRTMA shall also carry $50,000.00 in liability insurance under section 11a of the MRTMA, MCL 333.27961a. An applicant or licensee shall provide proof that the licensee carries marihuana liability insurance by submitting the full insurance policy to the agency in a manner prescribed by the agency. The applicant or licensee shall submit proof of the insurance required under this subrule not later than 60 days after a marihuana license is issued or renewed.

R 420.8 Marihuana business location plan.

Rule 8. (1) An applicant shall submit a marihuana business location plan for the proposed marihuana business as required in these rules and upon request by the agency. Upon the request of the agency, an applicant or licensee may be required to submit a revised marihuana business location plan.

~~(2) The~~A marihuana business location plan must include, at a minimum, all of the following:

(a) The type of proposed marihuana ~~business~~license for which the applicant is submitting an application,.

(b) tThe location of the proposed marihuana business, ~~a description of~~including the address and the name of the municipality where the proposed marihuana business will be located,. ~~and~~

(c) ~~any~~All of the following, if applicable:

(i) A statement that a combination of marihuana licenses will operate as separate marihuana businesses at the same location, as provided ~~under these rules~~in R 420.203.

(ii) A statement in the marihuana business location plan that the applicant has applied or intends to apply to stack a marihuana license at the proposed marihuana business as provided ~~under these rules~~in R 420.17.

(iii) ~~For an applicant seeking licensure under the MRTMA, a~~A statement that equivalent licenses will operate at the same location.

(bd) A diagram of the proposed marihuana business that includes, at a minimum, all of the following:

(i) The proposed marihuana business’s size and ~~dimensions~~number of rooms.

(ii) ~~Specifications of the marihuana business~~Dimensions of the proposed marihuana business, including dimensions of interior rooms and exterior areas.

~~(iii) Physical address.~~

(iviii) Locations of ~~common entryways,~~entrances, exits, doorways, and passageways.

~~(v) Public entries and exits.~~

(viiv) Locations of Llimited-access areas, ~~and restricted access areas~~including entrances, exists, doorways, and passageways to or from the limited-access areas.

(v) Locations of dividing structures and fire walls.

(vi) Locations of storage areas and an indication of the maximum storage capacity of the storage areas.

(vii) Locations where hazardous materials are stored.

(~~vii~~viii) ~~An indication~~Locations of the distinct areas or structures for separate marihuana businesses operating at the same location ~~as provided in these rules~~¸if applicable.

(~~viii~~ix) If the proposed marihuana business is a marihuana sales location, Aareas designated for contactless and limited contact transactions~~, if the marihuana business is a marihuana sales location~~.

(x) If the proposed marihuana business is a designated consumption establishment, all of the following:

(A) Locations of areas designated for the consumption of marihuana.

(B) Locations of smoke-free areas that are physically separated from areas designated for consumption.

(C) A ventilation system that directs air from the marihuana consumption area to the outside of the building through a filtration system sufficient to remove visible smoke, consistent with all applicable building codes and ordinances, and adequate to eliminate odor at the property line, if consumption by inhalation is allowed.

~~(c) A detailed floor plan and layout that includes, at a minimum, all of the following:~~

~~(i) Dimensions of the marihuana business including interior and exterior rooms.~~

~~(ii) Maximum storage capabilities.~~

~~(iii) Number of rooms.~~

~~(iv) Dividing structures.~~

~~(v) Fire walls.~~

~~(vi) Entrances and exits.~~

~~(vii) Locations of hazardous material storage.~~

(~~viii~~e) The expected Qquantities and daily consumption of hazardous materials, ~~such as~~chemicals, and flammable/ or combustible liquids and gases~~, and the expected daily consumption of the hazardous materials~~at the proposed marihuana business.

(df) Means of egress, including, but not limited to, delivery and transfer points.

(eg) Construction details for structures ~~and fire-rated construction for required walls~~.

(fh) Building structure information, including, but not limited to, new, pre-existing, freestanding, or fixed.

(gi) Building type information, including, but not limited to, commercial, warehouse, industrial, retail, converted property, house, mercantile building, pole barn, greenhouse, laboratory, or center.

(hj) Zoning classification and zoning information.

(ik) IfWhether the proposed marihuana business is in a ~~location~~building that contains multiple tenants. ~~and~~

(l) ~~any applicable~~ Applicable occupancy restrictions.

(jm) A ~~proposed~~ security plan that demonstrates the proposed marihuana business meets the security requirements ~~specified in these rules~~in R 420.209.

(kn) ~~Any other~~Other information required by the agency if not inconsistent with the acts and these rules.

(3) ~~Any changes~~ Changes or modifications to the marihuana business location plan under this rule must be reported to the agency and may require preapproval by the agency.

(4) On request of the agency, an applicant or licensee shall submit a revised marihuana business location plan.

(45) The agency may provide a copy of the marihuana business location plan to the BFS, local fire department, ~~Michigan~~ state police, local law enforcement, and building officials for use in review and planning.

(56) The agency may reinspect the marihuana business to verify compliance with the marihuana business location plan ~~at any time~~ during the business’s hours of operation ~~and may require that the plan be resubmitted upon renewal~~.

R 420.8a Prelicensure inspections.

Rule 8a. (1) An applicant for a marihuana license shall submit to and pass a prelicensure inspection of the applicant’s proposed marihuana business to verify the accuracy of the marihuana business location plan and that the proposed marihuana business meets the requirements of the acts and these rules.

(2) An applicant for a marihuana license shall submit to and pass a prelicensure fire safety inspection of the applicant’s proposed marihuana business by the BFS to verify that the proposed marihuana business meets the requirements of NFPA standard 1 and NFPA standard 58 and the requirements of R 420.210.

R 420.9 ~~Rescinded.~~ License fees; regulatory assessments; renewal fees.

Rule 9. (1) License fees for state licenses issued under the MRTMA are listed in table 1:

TABLE 1

State License Type	Initial Licensure and Renewal Fees
Class A Marihuana Grower	$1,200.00
Class B Marihuana Grower	$6,000.00
Class C Marihuana Grower	$24,000.00
Designated Consumption Establishment	$1,000.00
Excess Marihuana Grower*	$24,000.00
Marihuana Event Organizer	$1,000.00
Marihuana Microbusiness	$8,300.00
Class A Marihuana Microbusiness	$18,600.00
Marihuana Processor	$24,000.00
Marihuana Retailer	$15,000.00
Marihuana Safety Compliance Facility	$15,000.00
Marihuana Secure Transporter	$15,000.00
Temporary Marihuana Event	See R 420.105
Marihuana Educational Research	Not applicable

* The fee for an excess marihuana grower is a renewal fee only.

(2) The agency shall establish and publish annually the regulatory assessment for licensees under the MMFLA under section 603 of the MMFLA, MCL 333.27603.

(3) An applicant for a state operating license shall pay the regulatory assessment within 10 days after the agency determines the applicant meets all the requirements for a state operating license.

(4) An applicant for a state license shall pay the initial licensure fee by whichever of the following dates comes first:

(a) Within 10 days after the agency determines the applicant meets all requirements for a state license.

(b) Within 90 days after submitting a complete application.

(5) A licensee shall pay a renewal fee annually, on or before the date the licensee’s marihuana license expires.

(6) At the beginning of each state fiscal year, the agency may increase the fees collected under the MRTMA by 10% to pay for implementation, administration, and enforcement of the MRTMA and these rules.

R 420.10 ~~Proof of financial responsibility; insurance~~ Amendments; requirements.

Rule 10. (1) Before a marihuana license is issued or renewed, the licensee or renewal applicant shall file a proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused products on the form prescribed by the agency, for an amount not less than $100,000.00. If the proof required in this subrule is a bond, the bond must be in a format acceptable to the agency.

(2) In addition to the requirements in subrule (1) of this rule, a marihuana transporter shall show proof of auto insurance, vehicle registration, and registration as a commercial motor vehicle, as applicable, for any vehicles used to transport marihuana product as required by the acts and these rules.

(3) For an applicant seeking licensure for a marihuana event organizer license under the MRTMA, proof of financial responsibility for liability for bodily injury is not required. A marihuana event organizer licensee shall file a proof of financial responsibility for liability for bodily injury when applying for a temporary marihuana event license or proof that each marihuana microbusiness, class A marihuana microbusiness, and marihuana retailer participating in the temporary marihuana event has coverage for liability for bodily injury when applying for a temporary marihuana event license.

(4) In addition to the proof of financial responsibility requirements contained in subrule (1) of this rule, a renewal applicant or licensee holding a license under the MMFLA shall also carry commercial general liability insurance covering premises liability for an amount not less than $100,000.00. An applicant shall provide proof of commercial general liability insurance covering the premises liability to the agency no later than 60 days after a state operating license is issued or renewed. (1) A person may submit an amendment request in a manner prescribed by the agency and shall submit all of the following:

(a) An amendment application.

(b) Information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data required by the agency that are not inconsistent with the acts or these rules.

(2) A person submitting an amendment request shall answer each question on the amendment application in its entirety.

(3) After an amendment request is submitted, the agency may request additional information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data necessary to determine if the amendment application should be approved. An applicant or licensee shall submit information requested under this subrule within 5 days.

(4) The agency may administratively withdraw an amendment request for either of the following reasons:

(a) If the applicant or licensee is sent a notice of deficiency and fails to submit required documentation within 30 days after the notice is sent.

(b) If the person submits an amendment request and the person has disciplinary action pending. A person whose amendment request is withdrawn under this subdivision may submit a new request after the pending disciplinary action is resolved.

R 420.11 ~~Capitalization requirements; medical marihuana facilities licensing act~~ Denial of a marihuana license; additional reasons.

Rule 11. (1) An applicant for initial licensure under the medical marihuana facilities licensing act shall disclose the sources and total amount of capitalization to operate and maintain a proposed marihuana facility.

~~(2) The total amounts of capitalization based on the type of marihuana facility specified in the application for a state operating license are as follows:~~

~~(a) Grower - Class A: $150,000.00.~~

~~(b) Grower - Class B: $300,000.00.~~

~~(c) Grower - Class C: $500,000.00.~~

~~(d) Processor: $300,000.00.~~

~~(e) Provisioning Center: $300,000.00.~~

~~(f) Secure Transporter: $200,000.00.~~

~~(g) Safety Compliance Facility: $200,000.00.~~

~~(3) An applicant under the MMFLA shall provide proof to the agency of the capitalization amounts specified in subrule (2)(a) to (g) of this rule from both of the following sources:~~

(a) Not less than 25% is in liquid assets to cover the initial expenses of operating and maintaining the proposed marihuana facility, as specified in the application. As used in this subdivision, "liquid assets" include assets easily convertible to cash, including, but not limited to, cash, certificates of deposit, 401(k) plans, stocks, and bonds.

(b) Proof of the remaining capitalization to cover the initial expenses of operating and maintaining the proposed marihuana facility may include, but is not limited to, additional liquid assets as described in subdivision (a) of this subrule or equity in real property, supplies, equipment, fixtures, or any other nonliquid asset.

(4) The applicant shall provide proof that there is no lien or encumbrance, except for a mortgage encumbering the real property, on the asset provided as a source of capitalization. For purposes of this subrule, if the encumbrance is a mortgage on the real property then the applicant shall disclose the value of the equity of the real property less any mortgage.

(5) The capitalization amounts and sources must be validated by Certified Public Accountant (CPA) attested financial statements. The applicant shall disclose any of the capitalization sources that are foreign and a foreign CPA or its equivalent shall attest to the validation, and a domestic CPA shall attest to that foreign validation. In addition to the reasons for denial under the acts, the agency may deny an application for prequalification or a marihuana license for any of the following reasons:

(a) The applicant submitted an application that contains a material misrepresentation or false information.

(b) The applicant failed to notify the agency in a timely manner that information provided to the agency as part of the application changed after the application was submitted.

(c) The applicant failed to correct a deficiency within 5 days after notification by the agency.

(d) The applicant meets 1 of the following:

(i) Holds an elective office of a governmental unit of this state, another state, or the federal government.

(ii) Is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government.

(iii) Is employed by a governmental unit of this state.

(e) Subdivision (d) of this subrule does not apply to any of the following:

(i) An elected officer of or employee of a federally recognized Indian tribe.

(ii) An elected precinct delegate.

(iii) The spouse of a person who applies for a state license unless the spouse’s position creates a conflict of interest or is within any of the following:

(A) The agency.

(B) A regulatory body of a governmental unit in this state, another state, or the federal government that makes decisions regarding adult-use marijuana.

(f) The applicant has engaged in activities for which a marihuana license is required under the MMFLA or MRTMA without a marihuana license.

(g) The applicant has been served with a complaint or other notice filed with a public body that payment of a tax required under federal, state, or local law has been delinquent for 1 or more years.

(h) The applicant has been convicted of a crime involving dishonesty, theft, or fraud that indicates the proposed marihuana business is unlikely to be operated with honesty and integrity.

(i) A civil judgment has been entered against the applicant for failure to pay for work, services, products, or equipment provided to the applicant. The work, services, products, or equipment must be directly related to participation in the marihuana industry.

(j) The applicant has a history of regulatory noncompliance with a municipal, state, or federal regulatory body.

(k) The applicant has a criminal or regulatory history that includes distribution of tobacco or alcohol to a minor.

(l) The applicant is a licensee or managerial employee for a license type that conflicts with the license type for which the applicant applied. As used in this subdivision, license types that conflict are those licenses described in section 9 of the MRTMA, MCL 333.27959.

(m) The applicant is seeking licensure under the MRTMA, for either of the following:

(i) The applicant holds a state operating license under the MMFLA and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 601 of the MMFLA, MCL 333.27601.

(ii) The applicant holds a state license under the MRTMA and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 13 of the MRTMA, MCL 333.27963.

R 420.11a ~~Prelicensure investigation; proposed marihuana business inspection.~~ Rescinded.

~~Rule 11a. (1) An applicant for a marihuana license shall submit to and pass a prelicensure physical inspection of a proposed marihuana business, prior to licensure, as determined by the agency.~~

~~(2) The agency shall establish an inspection process to confirm that the applicants and proposed marihuana businesses meet the requirements of the acts and these rules.~~

~~(3) The agency shall investigate an applicant pursuant to the acts and these rules.~~

(4) The agency, through its investigators, agents, auditors, or the state police shall conduct inspections and examinations of an applicant and a proposed marihuana business pursuant to the acts and these rules.

~~(5) An applicant shall submit to the agency proof of both of the following:~~

(a) A certificate of use and occupancy as required pursuant to section 13 of the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1513, and these rules. If this certificate is not available, the agency may accept alternative documentation from the building authority. The requirement of this subrule is not applicable to temporary marihuana event applicants.

~~(b) If applicable, a fire safety inspection as specified in these rules.~~

R 420.12 ~~Denial of a marihuana license; additional reasons~~ Denial of an amendment.

Rule 12. ~~(1) The agency may deny a license if an applicant fails to comply with the applicable act or these rules.~~

~~(2) In addition to the reasons for denial in the acts, the agency may deny a marihuana license for the following reasons:~~

~~(a) The applicant’s marihuana business location plan does not fully comply with the acts or these rules.~~

~~(b) The applicant’s proposed marihuana business or marihuana business is substantially different from the marihuana business location plan pursuant to R 420.8 and these rules.~~

~~(c) The agency is unable to access the proposed marihuana business for prelicensure agency inspection or the applicant denied the agency access to the proposed marihuana business.~~

~~(d) The applicant made a material misrepresentation on the application.~~

~~(e) The applicant failed to correct a deficiency within 5 days of notification by the agency in accordance with the acts and these rules.~~

~~(f) The applicant failed to provide confirmation of municipal compliance as required under R 420.5(1)(d) or (e).~~

(g) The applicant’s proposed marihuana establishment is in a municipality that has adopted an ordinance prohibiting marihuana establishments or the proposed marihuana establishment does not comply with an ordinance consistent with section 6 of the MRTMA, MCL 333.27956.

~~(h) The applicant is operating or was operating a proposed marihuana business without a marihuana license.~~

~~(i) The applicant has knowingly submitted an application containing false information.~~

~~(j) The applicant has failed to pay required fees pursuant to these rules.~~

~~(k) The applicant has failed to comply with these rules and the application requirements pursuant to these rules.~~

~~(l) The applicant has been delinquent with the payment of taxes required under federal, state, or local law for 1 or more years.~~

~~(m) The applicant fails to provide notifications or reports to the agency pursuant to these rules.~~

(n) The applicant or anyone meeting the definition of applicant has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana business is unlikely to be operated with honesty and integrity.

~~(o) For an applicant seeking licensure under the MRTMA, the applicant failed a prelicensure inspection within 60 days of submitting a complete application to the agency.~~

(p) For an applicant seeking licensure under the MRTMA, the applicant or anyone meeting the definition of applicant has a conviction involving distribution of a controlled substance to a minor pursuant to section 8 of the MRTMA, MCL 333.27958.

(q) For an applicant seeking licensure under the MRTMA, the applicant holds a state operating license under the MMFLA and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 601 of the MMFLA, MCL 333.27601.

(r) For an applicant seeking licensure under the MRTMA, the applicant holds a state license and has failed to file or is delinquent in the payment of the sales tax required under the General Sales Tax Act, 1933 PA 167, MCL 205.51 to 205.78, or the excise tax required under section 13 of the MRTMA, MCL 333.27963.

~~(s) The applicant failed to pass the prelicensure inspection required under R 420.11a.~~

(t) The applicant or licensee has filed an amendment to the application for a marihuana license seeking to add an individual or entity to the application or license that is not eligible or suitable for licensure, or the amendment is not eligible for licensure as it fails to comply with the acts and these rules.

~~(u) The applicant or licensee was previously required to file an annual financial statement under the MMFLA and these rules and failed to file the annual financial statement.~~ (1) The agency may deny an amendment request for any of the following reasons:

(a) The requested amendment would violate the requirements for prequalification prescribed in the acts or this part of these rules.

(b) The requested amendment would violate the requirements for licensure prescribed in the acts or this part of these rules.

(c) The licensee acted on or implemented the proposed amendment before receiving agency approval.

(d) The requested amendment would violate another provision of the acts or these rules.

(2) If the agency denies an amendment request, the person that submitted the request may request a hearing under part 9 of these rules.

(3) If the person does not request a hearing in writing within 21 days after the agency denies the request, the denial becomes the final order of the agency.

R 420.13 Renewal of a marihuana license.

Rule 13. (1) ~~A marihuana license is issued for a 1-year period and is renewable annually~~. A licensee ~~shall~~may apply to renew a marihuana license ~~on a form established~~in a manner prescribed by the agency. and shall submit all of the following: The licensee shall pay the required fee upon submission of the application for renewal. The marihuana license may be renewed no more than 90 calendar days before the expiration of the marihuana license, if the licensee has submitted the renewal form required by the agency and, if applicable, the licensee has paid any additional background investigation charge assessed by the agency under these rules. The applicant shall include on the renewal form, a statement requesting renewal of the marihuana license and all of the following information:

(a) A renewal application that includes all of the following:

(i) The legal name and address of the marihuana business.

(ii) The municipality where the marihuana business is located.

(iii) The license number of the marihuana business.

(iv) To the extent that information has changed or not been previously reported to the agency, updated personal, business, and financial information, as the agency may require, related to the eligibility qualification, and suitability of the licensee to continue to hold the marihuana license for which renewal is requested under the acts and these rules. For a licensee seeking renewal under the MMFLA, required information may also be related to the business probity; financial ability and experience; and responsibility or means to operate or maintain a marihuana facility of the licensee and each person required to be qualified for renewal of the license under the MMFLA. To the extent that the information has changed or has not been previously reported, updated information on the marihuana business is required.

(v) The licensee’s current organizational structure.

(vi) Brands produced by the licensee, if applicable.

~~(b)~~ (vii) An ~~statement under oath~~attestation by the licensee that all of the following are true:

(A) tThe information provided in the licensee’s ~~annual~~ renewal ~~form~~application is current, complete, true, and accurate,. ~~and that~~

(B) tThe licensee has fulfilled ~~its~~their obligation under the acts and these rules to notify the agency of ~~any~~ a change in information provided in ~~its~~ the licensee’s original marihuana license application and subsequent ~~annual~~ renewal ~~form or forms~~application or applications previously filed, if applicable.

(C) The licensee’s renewal application provides all information and documentation required by the agency to establish that the licensee is eligible, qualified, and suitable to have their marihuana license renewed.

(cb) For ~~an applicant~~a licensee seeking renewal of a license under the MMFLA, all of the following:

(i) To the extent that information has changed or not been previously reported to the agency, information related to the business probity, financial ability, and experience, and responsibility or means to operate or maintain a marihuana facility of the licensee and each person required to be qualified for renewal of the license under the MMFLA.

(ii) cConfirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:

~~(i)~~(A) A description of ~~any~~a violation of an ordinance or a zoning regulation adopted ~~pursuant to~~ under section 205 of the MMFLA, MCL 333.27205, committed by the licensee, if applicable, but only if the violation relates to activities licensed under the acts or these rules.

~~(ii)~~(B) Whether there has been a change to an ordinance or a zoning regulation adopted ~~pursuant to~~ under section 205 of the MMFLA, MCL 333.27205, since the marihuana license was issued to the licensee and a description of the change.

~~(iii)~~(C) The date and signature of the clerk of the municipality or ~~his or her~~the clerk’s designee.

~~(iv)~~(D) The date and signature of the ~~applicant~~licensee.

~~(v) The name and address of the marihuana facility.~~

~~(vi) The license type of the marihuana facility.~~

(dc) For ~~an applicant~~a licensee seeking renewal of a license under the MRTMA, all of the following:

(i) cConfirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:

~~(i)~~(A) A description of any violation~~, if applicable,~~ of an ordinance or a zoning regulation consistent with section 6 of the MRTMA, MCL 333.27956, committed by the licensee, if applicable, but only if the violation relates to activities licensed under the act or these rules.

~~(ii)~~(B) Whether there has been a change to an ordinance or a zoning regulation consistent with section 6 of the MRTMA, MCL 333.27956, since the marihuana license was issued to the licensee and a description of the change.

~~(iii)~~(C) ~~The following information for the municipality where the marihuana establishment is located, including, at a minimum, all of the following:~~

~~(A) The name and address of the marihuana establishment.~~

~~(B) The license type of the marihuana establishment.~~

~~(C) The municipality where the marihuana establishment is located.~~

~~(D)~~ The contact information for the municipality, including, at a minimum, all of the following:

(I) The name of the clerk of the municipality or ~~his or her~~ the clerk’s designee.

(II) The telephone number of the clerk of the municipality or ~~his or her~~ the clerk’s designee.

(III) The email address of the clerk of the municipality or ~~his or her~~ the clerk’s designee.

(IV) The mailing address of the clerk of the municipality or ~~his or her~~ the clerk’s designee.

(ivii) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana establishment.

(viii) Confirmation that the ~~applicant~~licensee is in compliance with ~~any ordinance~~ordinances the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.

(viiv) An Aattestation that the ~~applicant~~licensee will report ~~any~~ changes that occur with municipal ordinances or zoning regulations that relate to the marihuana establishment, ~~any~~ municipal establishment approvals, or ~~any~~ violations of a municipal or zoning regulation.

(vii) The date and signature of the ~~applicant~~licensee.

(d) A renewal fee described in R 420.9.

(e) An attestation by the licensee that the licensee’s annual renewal form provides all information and documentation required by the agency to establish that the licensee is eligible, qualified, and suitable to have its marihuana license renewed and is ready and able to continue conducting its marihuana business in compliance with the acts and these rules throughout the new 1-year time period for which the license is to be renewed.In addition to the requirements under subdivisions (a) to (d) of this subrule, other information, records, documents, disclosures, attestations, interviews, reports, statements, memoranda, or data required by the agency that are not inconsistent with the acts or these rules.

(f) Other relevant information and documentation that the agency may require to determine the licensee’s eligibility to have its marihuana license renewed under the licensing standards of the acts and these rules.

(2) Failure to comply with any of the provisions of the acts and these rules may result in the nonrenewal of a marihuana license. The agency shall not renew a marihuana license unless the agency determines, as part of the license renewal, that each person required by the acts and these rules to meet licensing standards is eligible, qualified, and suitable under the relevant licensing standards.

~~(3) The licensee shall meet the requirements of the acts and any other renewal requirements set forth in these rules.~~

(4) The agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the licensee fails to apply for renewal in accordance with section 402 of the MMFLA, MCL 333.27402, as applicable, and this rule. In addition, the agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the agency determines, after reviewing the licensee’s annual renewal form, that the marihuana license should not be renewed because the licensee’s annual renewal form does not provide the information and documentation required by the agency to determine that the licensee is eligible, qualified, and suitable to continue to be licensed and ready and able to continue conducting its marihuana business in compliance with the acts and these rules.

(5) The agency may refuse to renew a marihuana license and issue a notice of nonrenewal if the licensee has failed to submit an annual financial statement required under the acts and these rules for the marihuana license it is renewing or for a previously held marihuana license.

~~(6)~~ If a license renewal application for a license under the MMFLA is not submitted by the license expiration date, the license may be renewed within 60 days after its expiration date upon submission of the required application, payment of the required fees, and satisfaction of ~~any~~ renewal requirements. The licensee may continue to operate during the 60 calendar days after the license expiration date if the licensee submits the renewal application to the agency and complies with the other requirements for renewal.

(73) The agency shall send a renewal notice to the last known address of a licensee on file with the agency. The failure of a licensee to notify the agency of a change of address does not extend the expiration date of a license and may result in disciplinary action.

~~(8) A marihuana licensee who is served with a notice of nonrenewal may request a hearing pursuant to these rules.~~

~~(9) If the licensee does not request a hearing in writing within 21 calendar days after service of the notice of nonrenewal, the notice of nonrenewal becomes the final order of the agency.~~

(10) A person who has not applied for marihuana license renewal for any and all licenses that are due for renewal shall cease and desist operation and is subject to any sanctions or fines, or both, pursuant to the acts and these rules.

(4) A marihuana license may be renewed no more than 90 days before the expiration of the marihuana license, if the licensee has submitted the renewal form required by the agency and, if applicable, the licensee has paid an additional background investigation charge assessed by the agency under these rules.

(5) Except as provided in subrule (2) of this rule, if a licensee does not apply to renew a marihuana license, the marihuana business for which the license was not renewed shall cease and desist operations when the marihuana license expires.

R 420.14 ~~Notification and reporting~~Nonrenewal of a marihuana license.

Rule 14. (1) Applicants have a continuing duty to provide the agency with up-to-date contact information and shall notify the agency in writing of any changes to the mailing addresses, phone numbers, electronic mail addresses, and other contact information they provide the agency.

~~(2) Applicants shall report to the agency any changes to the marihuana business operations that are required in the acts and these rules, as applicable.~~

~~(3) Applicants shall report to the agency any proposed material changes to the marihuana business before making a material change. Material changes include, at a minimum, the following:~~

~~(a) Change in owners, officers, members, or managers.~~

~~(b) Change of processing machinery or equipment.~~

~~(c) The addition or removal of persons named in the application or disclosed.~~

~~(d) Change in entity name.~~

~~(e) Any attempted transfer, sale, or conveyance of an interest in a marihuana license.~~

(f) Any change or modification to the marihuana business before or after licensure that was not preinspected, inspected, or part of the marihuana business location plan or final inspection including, at a minimum, all of the following:

~~(i) Operational or method changes requiring inspection under these rules.~~

~~(ii) Additions or reductions in equipment or processes at a marihuana business.~~

~~(iii) Increase or decrease in the size or capacity of the marihuana business.~~

~~(iv) Alterations of ingress or egress.~~

~~(v) Changes that impact security, fire safety, and building safety.~~

~~(4) An applicant shall notify the agency within 3 business days of becoming aware of or within 3 business days of when the applicant should have been aware of any of the following:~~

~~(a) Criminal convictions, charges, or civil judgments against an applicant in this state or any other state, federal, or foreign jurisdiction.~~

~~(b) Disciplinary action taken against an applicant by this state or any other state, federal, or foreign jurisdiction, including any pending action.~~

(5) The applicant shall notify the agency within 10 calendar days of the initiation or conclusion of any new judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, that involve the applicant.

(6) The applicant shall notify the agency within 10 calendar days of receiving notification of an alleged violation of an ordinance or a zoning regulation adopted pursuant to section 205 of the MMFLA, MCL 333.27205, or section 6 of the MRTMA, MCL 333.27956, committed by the applicant, but only if the violation relates to activities licensed under the acts, the Michigan Medical Marihuana Act, and these rules.

~~(7) The applicant shall notify the agency and the BFS within 1 business day following the occurrence of an unwanted fire.~~

~~(8) The licensee shall notify the agency within 10 business days of the appointment of a court-appointed personal representative, guardian, conservator, receiver, or trustee of the licensee.~~

~~(9) Failure to provide notifications or reports to the agency pursuant to this rule may result in sanctions or fines, or both.~~ (1) The agency shall not renew a marihuana license unless the agency determines, as part of the license renewal, that each person required by the acts and these rules to meet licensing standards is eligible, qualified, and suitable under the relevant licensing standards.

(2) The agency may refuse to renew a marihuana license for any of the following:

(a) The reasons for denial of a marihuana license in R 420.11.

(b) The licensee fails to apply for renewal as required in R 420.13.

(c) The agency determines, after reviewing the licensee’s renewal application, that the marihuana license should not be renewed because the licensee’s renewal application does not provide the information and documentation required by the agency to determine that the licensee is eligible, qualified, and suitable to continue to be licensed and ready and able to continue conducting its marihuana business in compliance with the acts and these rules.

(d) The licensee has failed to submit an annual financial statement required under the acts and these rules for the marihuana license it is renewing or for another marihuana license currently or previously held by the licensee.

(e) The licensee has failed to comply with the provisions of the acts or these rules.

(3) A marihuana licensee that is served with a notice of nonrenewal may request a hearing under part 9 of these rules.

(4) If the licensee does not request a hearing in writing within 21 days after service of the notice of nonrenewal, the notice of nonrenewal becomes the final order of the agency.

R 420.15 ~~Notifications of diversion, theft, loss, or criminal activity~~ Notification and reporting.

Rule 15. (1) Applicants shall notify the agency and local law enforcement authorities within 24 hours of becoming aware of or within 24 hours of when the applicant should have been aware of the theft or loss of any marihuana product or criminal activity at the marihuana business.

~~(2) Failure to notify as required under subrule (1) of this rule may result in sanctions or fines, or both.~~ (1) A licensee has a continuing duty to provide the agency with up-to-date contact information, including all of the following:

(a) The individual, or individuals, who are the authorized contact for the licensee. At least 1 individual under this division shall be a licensee, supplemental applicant, or managerial employee of the marihuana business.

(b) A mailing address.

(c) A phone number, electronic mail addresses, or other contact information required by the agency.

(2) A licensee shall notify the agency in writing within 10 days after changes to the contact information required in subrule (1) of this rule or the operations of the marihuana business that are required in the acts and these rules, as applicable.

(3) A licensee shall immediately notify the agency if the licensee becomes aware that both of the following circumstances exist:

(a) Any of the following circumstances pertaining to a marijuana product occurred:

(i) The product has been adulterated or contaminated.

(ii) The product has not passed full compliance testing.

(iii) The product was not tested in compliance with the requirements for testing in part 5 of these rules.

(iv) The product has been mislabeled.

(b) The product is currently available for sale or has already been sold to a marihuana customer.

(4) A licensee shall notify the agency and local law enforcement within 24 hours after becoming aware of, or within 24 hours after the licensee should have been aware of, the theft or loss of marihuana or criminal activity at the marihuana business.

(5) A licensee shall notify the agency and the BFS within 24 hours after the occurrence of an uncontrolled fire.

(6) A licensee shall notify the agency within 24 hours after becoming aware of, or within 24 hours after the licensee should have been aware of, adverse reactions to marihuana sold or transferred by the licensee.

(7) A licensee shall notify the agency within 5 days after becoming aware of, or within 5 days after the licensee should have been aware of, any of the following:

(a) Criminal convictions, charges, or civil judgments against a licensee in this state or another state, federal, or foreign jurisdiction.

(b) Disciplinary action taken against a licensee by this state or another state, federal, or foreign jurisdiction, including pending action.

(8) A licensee shall notify the agency within 10 days after any of the following:

(a) The initiation of lawsuits, legal proceedings, charges, or government investigations that involve the licensee.

(b) The conclusion of any lawsuits, legal proceedings, charges, or government investigations that involved the licensee.

(c) A judgment entered against the licensee.

(d) Receiving notification of an alleged violation of an ordinance or a zoning regulation adopted under section 205 of the MMFLA, MCL 333.27205, or section 6 of the MRTMA, MCL 333.27956, committed by the applicant, but only if the violation relates to activities licensed under the acts, the Michigan Medical Marihuana Act, and these rules.

(e) A change or modification of a lease, including changes in payment or waiving of rent, and updates made to the property by the landlord without being reimbursed.

(f) A change or modification of a deed or insurance policy.

(g) A new or pending tax liability or delinquency against the licensee by this state or another state, federal, or foreign jurisdiction.

(h) A notice of eviction against the licensee in this state or another state, federal, or foreign jurisdiction.

(9) A licensee shall notify the agency within 14 days after the appointment of a court-appointed personal representative, guardian, conservator, receiver, or trustee of the licensee.

(10) A notification or report submitted to the agency under this rule must be submitted in the manner prescribed by the agency for submitting the notification or report.

R 420.16 ~~Inspection; investigation~~ Removing restrictions on ownership interests.

Rule 16. ~~(1) The agency shall do all of the following with respect to inspections and investigations of applicants, licensees, proposed marihuana businesses, and marihuana business operations:~~

(a) Oversee and conduct inspections through its investigators, agents, auditors, or the state police of proposed marihuana businesses and marihuana businesses to ensure compliance with the acts and these rules.

~~(b) Inspect and examine marihuana businesses and proposed marihuana businesses.~~

~~(c) Inspect, examine, and audit records of the licensee.~~

~~(2) The agency may investigate individuals employed by proposed marihuana businesses and marihuana businesses.~~

(3) As authorized by the acts, a licensee may not refuse the agency access to the marihuana business during the hours of operation. The agency may access the marihuana business without a warrant and without notice to the licensee during the marihuana business's hours of operation.

(4) The agency may place an administrative hold on a marihuana product and order that no sales or transfers occur during an investigation for an alleged violation or violation of the acts or these rules.

(5) The agency may inspect, examine, and audit relevant records of the licensee. If a licensee fails to cooperate with an investigation, the agency may impound, seize, assume physical control of, or summarily remove records from a proposed marihuana business or marihuana business as authorized under the acts and these rules.

(6) The agency may eject or exclude, or authorize the ejection or exclusion of, an individual from a proposed marihuana business or marihuana business if that individual violates the acts, a final order, or these rules.

~~(7) The agency may take any reasonable or appropriate action to enforce the acts and these rules.~~

~~(8) This rule does not limit the application of any other remedies or sanctions that are available through local, state, and federal laws, the acts, and these rules.~~

(9) As used in this rule, “record” means books, ledgers, documents, writings, photocopies, correspondence, electronic storage media, electronically stored records, money receptacles, equipment in which records are stored, including data or information in the statewide monitoring system, or any other document that is used for recording information. Beginning on the effective date of this rule, a person may hold an ownership interest in more than 5 marihuana growers or more than 1 marihuana microbusiness.

R 420.17 Stacked license.

Rule 17. (1) A licensee holding amore than 1 license as a class C grower under the ~~medical marihuana facilities licensing act~~MMFLA, or a class C marihuana grower under the ~~Michigan regulation and taxation of marihuana act~~MRTMA~~, or both,~~ may apply to ~~stack class C licenses at a marihuana business specified in the marihuana license application~~operate under stacked licenses at the marihuana business location of a single cultivator.

(2) A licensee shall not operate under stacked licenses until approved by the agency.

(3) ~~The~~A licensee shall pay a separate ~~initial licensure fee~~license fees, or regulatory ~~assessment~~assessments, and renewal fees~~, as applicable,~~ for each ~~marihuana license issued and stacked and may be subject to additional fees under these rules~~grower under the MMFLA and marihuana grower under the MRTMA operating under the stacked licenses.

~~(2) A licensee that has been issued stacked licenses is subject to all the requirements of the acts and these rules.~~

R 420.18 Changes to ~~licensed~~a marihuana business.

Rule 18. (1) Any change or modification to the marihuana business after licensure is governed by the standards and procedures set forth in these rules and any regulations adopted pursuant to the acts. Any material change or modification to the marihuana business must be approved by the agency before the change or modification is made.

(2) Any change of a location of a marihuana business after licensure requires notification to the agency prior to the change of location, must be approved by the agency, requires a new marihuana license application under these rules, and may include, but is not limited to, all of the following:

~~(a) Additional application fees.~~

~~(b) Additional inspections by the agency or BFS.~~

~~(c) Initial licensure fees or regulatory assessment, as applicable, or both.~~ (1) A licensee shall not make a material change to a marihuana business unless the licensee submits a request to make a material change and the agency approves the change.

(2) A material change includes, but is not limited to, any the following:

(a) Changes in owners, officers, members, directors, or managerial employees, or their spouses.

(b) The addition or removal of persons named or disclosed in the application.

(c) Changes to the name of the legal entity; the name under which the legal entity conducts business, if different from the entity name; or assumed name.

(d) Changes in business structure.

(e) Changes to trademarks, service marks, or brands used by the licensee.

(f) An attempted transfer, sale, or conveyance of an interest in a marihuana license.

(g) A change or modification to the marihuana business before or after licensure that was not inspected during a prelicensure inspection or inspection, or part of the marihuana business location plan or final inspection including, at a minimum, all of the following:

(i) Changes to operations, processes, or methods requiring inspection under these rules.

(ii) Additions or reductions in processing machinery or equipment.

(iii) An increase or decrease in the size or capacity of the marihuana business.

(iv) Alterations to the means of ingress or egress.

(v) Changes that impact security, fire safety, or building safety.

(3) A licensee shall not change the location of a marihuana business unless the licensee submits a new marihuana license application and receives approval from the agency. A new application may include, but is not limited to, all of the following:

(a) Additional application fees.

(b) Additional inspections by the agency or the BFS.

(c) Initial license fees or regulatory assessment, or both, as applicable.

R 420.19 Communities disproportionately impacted by marihuana prohibition.

Rule 19. (1) ~~Pursuant to~~Under section 8(1)(j) of the MRTMA, MCL 333.27958, the agency shall establish a plan that promotes and encourages participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities.

(2) The agency shall publish all of the following information about the plan:

(a) The criteria used to select communities that have been disproportionately impacted by marihuana prohibition and enforcement.

(b) Based on the selection criteria, a list of the communities that have been disproportionately impacted by marihuana prohibition and enforcement.

(d) The services and resources that are available to those communities and qualifying persons residing in and planning to operate a marihuana establishment in those communities selected in subdivision (b) of this subrule.

(e) Specific goals and objectives for the plan.

(3) The agency shall collect data to measure its progress towards achieving the specific goals and objectives outlined in subrule (2)(e) of this rule.

(4) The agency shall publish a list of services and resources offered through the plan, which must include, but is not be limited to, all of the following:

(a) Education and outreach to the communities and potential applicants from the community.

(b) The waiver or reduction of fees for qualified applicants from the communities.

(d) Coordination of communities’, applicants’, and licensees’ utilization of resources that ~~will~~ allow participation in the marihuana industry.

Rule 420.19a Social equity program.

Rule 19a. (1) An applicant or licensee may submit a request to participate in the social equity program created by the agency under section 8(1)(j) of the MRTMA, MCL 333.27958, in a form and manner prescribed by the agency.

(2) To participate in the social equity program, an applicant or licensee must meet at least 1 of the following conditions:

(a) Has resided in a community or communities listed under R 420.19(2)(b) for not less than 5 years.

(b) Except as provided in subrule (3) of this rule, has been convicted of a misdemeanor or felony marijuana-related offense.

(c) Has been a registered primary caregiver under the Michigan Medical Marijuana Act for not less than 3 years during the 5-year period immediately before the person’s request to participate in the social equity program.

(3) A person convicted of distributing a controlled substance to a minor is not eligible to participate in the social equity program under subrule (2)(b) of this rule.

(4) Initial participation in the social equity program is for a period of 2 years. A participant may renew their participation after the initial 2-year period and annually after the first renewal by submitting a renewal request in a manner prescribed by the agency.

(5) A participant that fails to submit a renewal request will be removed from the social equity program. An applicant or licensee that is removed from the program may submit a new request to participate in the program. A person that submits a request under this subrule shall submit a renewal request after a period of 1 year.

(6) Subject to subrule (7) of this rule, the agency shall reduce the fees paid by a social equity program participant by a percentage not to exceed 75% as follows:

(a) For a participant that is eligible under subrule (2)(a) of this rule, by 25%.

(b) For a participant that is eligible under subrule (2)(b) of this rule, by the greater of the following, as applicable:

(i) For a participant convicted of a misdemeanor marijuana-related offense, by 25%.

(ii) For a participant convicted of a felony marijuana-related offense, by 40%.

(c) For a participant that is eligible under subrule (2)(c) of this rule, by 10%.

(7) If a social equity program participant operates a marijuana establishment in a community not listed under R 420.19(2)(b), the fee reductions in subrule (6) of this rule apply to that establishment for 2 years after the date the license for the establishment was issued.

(8) A person that meets the requirements for participation in the social equity program that obtained prequalification status under part 2 of these rules and whose prequalification status has expired is not required to pay another application fee if the person submits a new prequalification application.

(9) A social equity program participant may apply for additional fee reductions by submitting a request in a manner prescribed by the agency.

(10) Fee reductions for which a social equity program participant is approved do not apply to fees that were assessed before the agency’s approval of the fee reductions.

R 420.20 Financial statements.

Rule 20. (1) Every 3 years, or a shorter time as determined by the agency, ~~Each~~a licensee under the MRTMA shall transmit to the agency complete financial statements of the licensee’s total operations.

(2) A certified public accountant shall review the ~~The~~financial statements ~~shall be reviewed by a certified public accountant~~ in a manner ~~and form~~ prescribed by the agency. The certified public accountant must be licensed in this state under article 7 of the occupational code, 1980 PA 299, MCL 339.720 to 339.736. The compensation for the certified public accountant must be paid directly by the licensee to the certified public accountant. The agency shall issue an advisory bulletin to instruct licensees on the time and manner in which to submit the financial statements. Financial statements must be prepared so they include all required information for each license held by the licensee.

~~(2) A marihuana educational research licensee is not required to file an annual financial statement.~~

(3) If the agency identifies a deficiency in the financial statements or requires further information, the agency shall notify the licensee and the licensee shall submit the missing information or proof that the deficiency has been corrected to the agency within 5 days after the date the licensee received the deficiency notice.

(4) If a licensee fails to submit a required financial statement by the due date or fails to correct a deficiency or provide required information within 5 days after notification by the agency, the agency may do both of the following:

(a) Require the licensee to submit financial statements more frequently than every 3 years for a period of time determined by the agency.

(b) Impose a penalty under part 10 of these rules.

(5) The agency shall assign a licensee to a 3-year reporting cycle that is maintained throughout the licensee’s period of licensure, unless the reporting cycle is shortened as provided in subrule (4) of this rule.

(6) The agency shall assign a licensee to a reporting period and due date described in table 1.

TABLE 1

Reporting Period	Financial Report Due Date
January 1 to December 31	June 30 immediately after the end of the reporting period
April 1 to March 31	September 30 immediately after the end of the reporting period
July 1 to June 30	December 31 immediately after the end of the reporting period
October 1 to September 30	March 31 immediately after the end of the reporting period

(7) A licensee that is issued any of the following license types is not required to file a financial statement for that license:

(a) Marihuana educational research license.

(b) Marihuana event organizer license.

(c) Designated consumption establishment license.

~~PART 2. SPECIAL LICENSES UNDER THE MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT~~

R 420.21 ~~Special licenses; eligibility~~ Licensing, management, manufacturing, other agreements.

Rule 21. (1) A person may apply to the agency for a special license as described under section 8 of the MRTMA, MCL 333.27958, and issued pursuant to section 9 of the act, MCL 333.27959, and these rules. A person may apply to the agency for a special license in any of the following categories:

~~(a) Designated consumption establishment license. A designated consumption establishment license is valid for 1 year.~~

~~(b) Excess marihuana grower license. An excess marihuana grower license is valid for 1 year.~~

~~(c) Marihuana event organizer license. A marihuana event organizer license is valid for 1 year.~~

~~(d) Temporary marihuana event license. A temporary marihuana event license is valid for a minimum of 1 day and ends on the date specified on the state license.~~

~~(e) Marihuana educational research license. A marihuana educational research license is valid for 1 year.~~

~~(f) A class A marihuana microbusiness license. A class A marihuana microbusiness license is valid for 1 year.~~

~~(2) An applicant shall meet the requirements of the MRTMA and these rules to be eligible for a special license.~~

(3) A person who allows consumption of marihuana products on the premises of a non-residential location and charges a fee for entry, sells goods or services while individuals are consuming on the premises, or requires membership for entry shall acquire a designated consumption establishment or temporary marihuana event license. (1) A licensee may enter into a licensing agreement, management agreement, manufacturing agreement, or other agreement. An agreement under this subrule must be in writing.

(2) If an agreement under subrule (1) of this rule is a licensing agreement, management agreement, or would allow the other party to do either of the following, the licensee shall submit the agreement to the agency for approval:

(a) Exercise control over or participate in the management of the licensee.

(b) Receive more than a reasonable payment from the licensee during a full or partial calendar or fiscal year.

(3) If an agreement meets a condition of subrule (2) of this rule, a licensee shall submit a complete, unredacted, signed copy of the agreement to the agency for review and approval before the terms of the agreement take effect.

(4) An agreement under this rule must include, but is not limited to, all of the following:

(a) The legal name of each party.

(b) All price and payment terms between the parties. If the cost for a product or service is undefined, the method by which the cost will be calculated must be included.

(c) A requirement that all payments made to the other party pursuant to the agreement must be made by the licensee that is the party to the agreement.

(d) Terms specifically naming and clearly defining a service to be performed pursuant to the agreement.

(e) Terms specifically requiring that all operations related to the production, sales, invoicing, and payment for marihuana sold pursuant to an agreement must be performed by the licensee.

(f) A statement indicating that the agreement contains the entire agreement of the parties.

(g) If the agreement includes trademarked items, all trademark documentation, including registration certificates, filed with this state or the United States Patent and Trademark Office, or both.

(5) The agency shall not approve an agreement under this rule if the terms of the agreement would violate a requirement of the acts or these rules.

(6) A term or condition that would allow the licensee to use an assumed name or doing business as in the operation of the licensee is not operative unless the licensee has complied with the requirements of 1907 PA 101, MCL 445.1 to 445.5.

(7) A licensee shall provide other information requested by the agency pertaining to an agreement that is not inconsistent with the acts and these rules.

R 420.22 ~~Designated consumption establishment license~~ Licensee records.

Rule 22. ~~(1) An applicant for a designated consumption establishment license is subject to and shall meet the requirements of the Michigan regulation and taxation of marihuana act and these rules.~~

(2) A person may apply for a designated consumption establishment license on the form created by the agency accompanied by the nonrefundable application fee as prescribed in these rules. An application for a designated consumption establishment license must be made under oath on a form provided by the agency. A complete application for a designated consumption establishment license must contain the information required in these rules and information regarding the designated consumption establishment including, but not limited to, all of the following:

(a) A designated consumption establishment plan for the proposed consumption establishment. Upon the request of the agency, an applicant or licensee may be required to submit a revised designated consumption establishment plan. The plan must include a diagram of the designated consumption establishment including, but not limited to, all of the following:

~~(i) The proposed establishment’s size and dimensions.~~

~~(ii) Specifications of the designated consumption establishment.~~

~~(iii) Physical address.~~

~~(iv) Location of common entryways, doorways, or passageways.~~

~~(v) Means of public entry or exit.~~

~~(vi) An indication of the distinct areas or structures for separate marihuana establishments at the same location as provided in these rules.~~

~~(b) A detailed floor plan and layout that includes all of the following:~~

~~(i) Dimensions of the consumption establishment including interior and exterior rooms.~~

~~(ii) Number of rooms.~~

~~(iii) Dividing structures.~~

~~(iv) Fire walls.~~

~~(v) Entrances and exits.~~

~~(vi) Locations of hazardous material storage, if applicable.~~

~~(vii) Means of egress.~~

~~(c) Construction details for structures and fire-rated construction for required walls.~~

~~(d) Building structure information, including but not limited to, new, pre-existing, freestanding, or fixed.~~

(e) Building type information, including, but not limited to, commercial, warehouse, industrial, retail, converted property, house, building, mercantile building, pole barn, greenhouse, laboratory, or center.

~~(f) Zoning classification and zoning information.~~

~~(g) If the proposed designated consumption establishment is in a location that contains multiple tenants, any applicable occupancy restrictions.~~

~~(h) A business plan that includes a description of the proposed hours of operation.~~

(i) Proof of possession of the premises where the proposed designated consumption establishment will be located and, if the premises are leased, written permission from the owner of the premises approving the applicant’s use of the designated consumption establishment for marihuana consumption.

(j) A responsible operations plan that includes a detailed explanation of how employees will monitor and prevent over-intoxication, underage access to the designated consumption establishment, the illegal sale or distribution of marihuana or marihuana products within the consumption establishment, and any other potential criminal activity on the premises.

~~(k) A documented employee training that addresses all components of the responsible operations plan.~~

(l) A marihuana product destruction and waste management plan that meets the requirements of these rules, as applicable, for destroying and disposing of marihuana waste left at the marihuana establishment.

~~(m) Any other information required by the agency if not inconsistent with the Michigan regulation and taxation of marihuana act and these rules.~~

(3) The agency may provide a copy of the marihuana establishment plan to the BFS, local fire department, building officials, the Michigan state police, and local law enforcement for use in pre-incident review and planning.

~~(4) An applicant shall pay the fees required under these rules.~~

~~(5) An applicant is subject to the prelicensure investigation and proposed establishment inspection required under these rules.~~

~~(6) An applicant is subject to the proof of financial responsibility and insurance requirements under these rules.~~

~~(7) A designated consumption establishment shall have the following characteristics:~~

~~(a) A smoke-free area for employees to monitor the marihuana consumption area.~~

(b) A ventilation system that directs air from the marihuana consumption area to the outside of the building through a filtration system sufficient to remove visible smoke, consistent with all applicable building codes and ordinances, and adequate to eliminate odor at the property line, if consumption by inhalation is permitted.

~~(c) A location physically separated from areas where smoking is prohibited and where smoke does not infiltrate into nonsmoking areas or buildings.~~

~~(8) The agency may determine an applicant is ineligible or deny an application for the reasons specified in these rules, as applicable~~. (1) A licensee shall maintain records that are required to be maintained under the acts or these rules on site at the marihuana business or in a way that the records can be accessed electronically on site and made available for review by the agency during business hours.

(2) A licensee shall utilize a general ledger software and standard double entry bookkeeping system.

(3) A licensee shall maintain accurate and comprehensive financial records for each license that clearly document the licensee’s income and expenses, including, but not limited to, all of the following:

(a) Cash logs.

(b) Bank statements.

(c) Sales records.

(d) Inventory purchase records.

(e) Invoices.

(f) Receipts.

(g) Deposit slips.

(h) Cancelled checks.

(i) Employee compensation records.

(j) Tax records.

(k) General ledger.

(4) Bulk financial deposits or transactions must be traceable to the individual transactions that comprise the bulk deposit or transaction.

(5) Licensee records must be maintained for not less than 4 years, unless the agency requires a record to be maintained for a longer period of time. If the agency requires a licensee to maintain a record for longer than 4 years, the licensee shall not dispose of the record until the agency approves disposal of the record.

(6) A licensee that holds a license as a cultivator, producer, or marihuana sales location shall perform, document, and maintain as an internal record, monthly reconciliations of its statewide monitoring system revenue to its general ledger revenue and, if applicable, point-of-sale revenue. The licensee shall document all discrepancies and maintain all relevant source documentation.

(7) A licensee shall maintain records in a way that allows the licensee to identify and reconcile revenue and expenses related to marihuana operations separate from revenue or expenses related to industrial hemp operations.

(8) A licensee conducting business under a licensing agreement, management services agreement, manufacturing agreement, or other agreement shall maintain records documenting all marihuana and money transferred pursuant to the agreement.

R 420.23 ~~Excess marihuana grower license~~ Marihuana business websites; public representations; ownership.

Rule 23. ~~(1) An applicant for an excess marihuana grower license is subject to and shall meet the requirements of the MRTMA and these rules.~~

~~(2) An excess marihuana grower license authorizes sale of marihuana, other than seeds, seedlings, tissue cultures, immature plants, and cuttings, to a marihuana processor or marihuana retailer.~~

(3) An excess marihuana grower license may be issued only to a person who holds 5 stacked class C marihuana grower licenses issued by the agency under the MRTMA and at least 2 grower class C licenses issued by the agency under the MMFLA.

(4) A person may apply for an excess marihuana grower license on the form created by the agency accompanied by the nonrefundable application fee as prescribed in these rules. An application for an excess marihuana grower license must be made under oath on a form provided by the agency and must contain information as prescribed by the agency.

~~(5) An applicant for an excess marihuana grower license shall pay applicable fees required under these rules.~~

~~(6) The agency may determine an applicant is ineligible or deny an application for the reasons specified in these rules.~~

(7) The agency shall set the total marihuana plant count for an excess marihuana grower license in increments of 2,000 marihuana plants not in excess of the total marihuana plants permitted under grower class C licenses held under the MMFLA.

(8) Payment of the initial licensure fee must be received prior to issuance of the state license. In determining the initial licensure fee for an excess marihuana grower license, the initial licensure fee of a class C marihuana grower license is assessed on the excess marihuana grower license at every 2,000 marihuana plant increment authorized by the state license.

~~(9) An excess marihuana grower licensee is subject to all requirements for a marihuana grower as provided for in the MRTMA and these rules, as applicable.~~

(10) An applicant shall pay the initial licensure fee for an excess grower license within 10 calendar days of approval or within 90 calendar days of submitting a complete application, whichever date is first.

~~(11) An applicant for an excess grower license is not required to pay the application fee under these rules.~~ A licensee shall not publicly represent ownership or ownership structures that differ from the ownership information provided to the agency, including, but not limited to, on a website or social media page or social media profile owned or controlled by the licensee.

R 420.24 ~~Marihuana event organizer license~~ Court-appointed individuals.

Rule 24. ~~(1) A marihuana event organizer is not authorized to engage in the operations of a marihuana establishment licensee without first obtaining the appropriate licenses.~~

(2) A person may apply for a marihuana event organizer license on the form created by the agency accompanied by the application fee as prescribed in these rules. An application for a marihuana event organizer license shall be made under oath on a form provided by the agency and shall contain information as prescribed by the agency.

~~(3) An applicant for a marihuana event organizer license is subject to and shall meet the requirements of these rules, as applicable.~~

~~(4) An applicant for a marihuana event organizer license shall pay the nonrefundable application fee and any other fees required under these rules.~~

~~(5) The agency may determine an applicant is ineligible or deny an application for the reasons specified in these rules, as applicable.~~ If a court-appointed receiver, trustee, personal representative, guardian, or another individual is appointed to operate a marihuana business, the receiver, trustee, personal representative, guardian, or other individual shall ensure that the marihuana business complies with all the requirements in the acts and these rules for which the licensee would otherwise be responsible.

R 420.25 ~~Temporary marihuana event license; application; operations.~~ Rescinded.

~~Rule 25.~~ ~~(1) A temporary marihuana event license may be issued only to a person who holds a marihuana event organizer license issued by the agency.~~

(2) Violations of the requirements applicable to temporary marihuana events may result in disciplinary action against the marihuana event organizer license or any other licenses held by a licensee participating in the temporary marihuana event and responsible for a violation of the MRTMA or these rules.

~~(3) A temporary marihuana event license may be issued only for a single day or up to 7 consecutive days. A temporary marihuana event license may not be issued for more than 7 days.~~

~~(4) An application for a temporary marihuana event license must be submitted to the agency not less than 90 calendar days before the first day of the temporary marihuana event.~~

~~(5) A temporary marihuana event may be held only at a venue expressly approved by a municipality for the purpose of holding a temporary marihuana event.~~

(6) A temporary marihuana event may be held only if the applicant is expressly approved by a municipality to hold a temporary marihuana event where sales to, or consumption of marihuana by, persons 21 years of age or older will occur.

(7) An application for a temporary marihuana event license must be made under oath on a form provided by the agency and must contain information as prescribed by the agency, including, at a minimum, all of the following:

(a) The name of the applicant. Applicants who are individuals shall provide both the first and last name of the individual. Applicants that are business entities shall provide the legal business name of the applicant.

~~(b) The marihuana event organizer license number and license number of any other marihuana establishment license held by the applicant.~~

~~(c) The address of the location where the temporary marihuana event will be held.~~

~~(d) The name of the temporary marihuana event.~~

~~(e) A diagram of the physical layout of the temporary marihuana event that clearly indicates each of the following:~~

~~(i) Where the temporary marihuana event will take place on the location grounds.~~

~~(ii) All entrances and exits that will be used by participants during the event.~~

~~(iii) All marihuana consumption areas.~~

~~(iv) All marihuana retail areas where marihuana products will be sold.~~

~~(v) All areas where marihuana waste will be stored.~~

~~(vi) All areas where marihuana products will be stored.~~

(vii) The specific location of each marihuana retailer or marihuana microbusiness or class A marihuana microbusiness licensee who will be participating in the event. Each marihuana retailer or marihuana microbusiness or class A marihuana microbusiness licensee participating in the event must be identified with an assigned temporary marihuana event location number.

(f) The dates and hours of operation for the proposed temporary marihuana event. A temporary marihuana event license is required for any date in which the applicant engages in onsite marihuana product sales or allows onsite marihuana product consumption.

~~(g) Contact information for the designated primary contact person for the temporary marihuana event license, including the individual’s name, title, address, phone number, and email address.~~

~~(h) Contact information for the designated contact person or persons who must be onsite at the event, and reachable by telephone at all times that the event is occurring.~~

~~(i) For an applicant seeking licensure for a temporary marihuana event, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:~~

~~(i) The name and address of the proposed temporary marihuana event.~~

~~(ii) The municipality where the proposed temporary marihuana event is located.~~

~~(iii) The contact information for the municipality including, at a minimum, all of the following:~~

~~(A) The name of the clerk of the municipality or his or her designee.~~

~~(B) The telephone number of the clerk of the municipality or his or her designee.~~

~~(C) The email address of the clerk of the municipality or his or her designee.~~

~~(D) The mailing address of the clerk of the municipality or his or her designee.~~

~~(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed temporary marihuana event.~~

~~(v) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.~~

(vi) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed temporary marihuana event, any municipal approvals, or any violations of a municipal or zoning regulation.

(vii) Attestation by the applicant describing if the applicant will engage in onsite marihuana sales to, and allow onsite consumption by, person 21 years of age or older at the temporary marihuana event.

~~(viii) The date and signature of the applicant.~~

(j) A list of all licensees and employees who will be providing onsite sales of marihuana products at the temporary marihuana event. If the list of licensees and employees participating in the temporary marihuana event changes after the application is submitted or after the temporary marihuana event license is issued, the applicant shall submit an updated list and an updated diagram to the agency not less than 72 hours before the event. Licensees not on the list submitted to the agency may not participate in the temporary marihuana event.

(k) A responsible operations plan that includes a detailed explanation of how employees will monitor and prevent over-intoxication, underage access to the designated consumption establishment, the illegal sale or distribution of marihuana or marihuana products within the consumption establishment, and any other potential criminal activity on the premises.

~~(8) An applicant for a temporary marihuana event shall pay all required fees before the agency issues a temporary marihuana event license.~~

(9) The licensed marihuana event organizer shall hire or contract for licensed security personnel to provide security services at the licensed temporary marihuana event. All security personnel hired or contracted for by the licensee shall be at least 21 years of age, and be present on the licensed event premises at all times marihuana products are available for sale or marihuana consumption is allowed on the licensed event premises. The security personnel shall not engage in the consumption of marihuana products before or during the event.

(10) A licensed marihuana event organizer shall maintain a clearly legible sign, not less than 7 by 11 inches in size reading, “No Persons Under 21 Allowed” at or near each public entrance to any area where the sale or consumption of marihuana products is allowed. The lettering of the sign shall be not less than 1 inch in height.

(11) The marihuana event organizer licensee shall ensure that access to the event is restricted to persons 21 years of age or older and ensure that marihuana sales or consumption is not visible from any public place or non-age-restricted area.

(12) The marihuana event organizer licensee, who holds the temporary marihuana event license, is responsible for ensuring that all rules and requirements for the onsite consumption of marihuana products are followed.

(13) The marihuana event organizer licensee shall ensure that all marihuana waste generated at a temporary marihuana event is collected and disposed of in accordance with the requirements of these rules, as applicable.

(14) A licensed marihuana event organizer and all other licensees participating in a temporary marihuana event are required to comply with all other applicable requirements in the MRTMA and these rules and any municipal ordinances.

(15) The agency may require the marihuana event organizer and all participants to cease operations without delay if in the opinion of the agency or law enforcement it is necessary to protect the immediate public health and safety of the people of this state. Upon notification from the agency that the event is to cease operations, the marihuana event organizer shall immediately stop the event and all participants must be removed from the premises within the time frame provided by the agency.

(16) Upon notification from the agency, the marihuana event organizer shall immediately expel from the event any person selling marihuana products without a marihuana retailer, marihuana microbusiness, or class A marihuana microbusiness license issued by the agency. The marihuana event organizer or his or her representative shall remain with the person being expelled from the premises at all times until he or she vacates the premises. If the person does not vacate the premises, the agency may inform the marihuana event organizer that the event must cease operations. Upon notification from the agency that the event is to cease operations, the marihuana event organizer shall immediately stop the event and all participants must be removed from the premises within the time frame provided by the agency.

R 420.26 ~~Temporary marihuana event fee.~~ Rescinded.

~~Rule 26. (1) Each marihuana event organizer licensed to hold a temporary marihuana event in this state shall pay an initial licensure fee that consists of both of the following:~~

~~(a) For temporary marihuana events that do not include the sale of marihuana products, a $500.00 fee for each day of the scheduled event to cover the agency’s enforcement and compliance costs.~~

~~(b) For temporary marihuana events that include the sale of marihuana products:~~

~~(i) A $500.00 fee for each licensee authorized to sell marihuana product at the event to cover the agency’s enforcement and compliance costs.~~

~~(ii) A $500.00 fee for each day of the temporary marihuana event to cover the agency’s enforcement and compliance costs.~~

(2) If a licensee scheduled to attend an event withdraws from the event prior to the first day of the event, the marihuana event organizer may request a refund for that portion of the fees paid to the agency to cover the enforcement and compliance costs for that licensee.

~~(3) A marihuana event organizer applicant is not required to pay an application fee.~~

R 420.27 ~~Temporary marihuana event sales.~~ Rescinded.

~~Rule 27. (1) A marihuana event organizer licensee shall ensure that access to the area where marihuana sales are allowed is restricted to persons 21 years of age or older.~~

(2) Only persons 21 years of age or older may purchase and consume marihuana products at a temporary marihuana event. Prior to selling marihuana products to a customer, the licensee making the sale shall confirm, using valid identification as specified in the MRTMA and these rules, the age and identity of the customer.

~~(3) All sales of marihuana products at a temporary marihuana event shall occur in a retail area as designated in the premises diagram required in these rules.~~

(4) Each sale at a temporary marihuana event must be performed by a licensed marihuana retailer, a marihuana microbusiness, or a class A marihuana microbusiness that is authorized to sell marihuana products to customers. The marihuana event organizer may also sell marihuana products at the temporary marihuana event if the marihuana event organizer holds a separate state license as a marihuana retailer, a marihuana microbusiness, or a class A marihuana microbusiness.

(5) Licensed marihuana retailers, marihuana microbusinesses, or class A marihuana microbusinesses shall conduct sales activities only within their specifically assigned area, identified in the diagram of the physical layout of the temporary marihuana event.

~~(6) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary marihuana event site.~~

(7) Licensed marihuana retailers, marihuana microbusinesses, or class A marihuana microbusinesses shall prominently display their temporary marihuana event location number and state license number within plain sight of the public.

(8) All sales at a temporary marihuana event must occur on the dates stated on the state license and must occur at the location stated on the state license. All onsite sales of marihuana products must comply with the hours of operation requirements in these rules.

(9) The marihuana products sold onsite at a temporary marihuana event must be transported to the site of the temporary marihuana event by a licensed secure transporter in compliance with the Michigan regulation and taxation of marihuana act and these rules. A licensed transporter is not required if less than 15 ounces of marihuana or 60 grams of concentrate is transported at 1 time.

(10) Except small amounts of products used for display, all marihuana products for sale at a temporary marihuana event must be stored in a secure, locked container that is not accessible to the public. Marihuana products stored by a licensee at a temporary marihuana event must not be left unattended.

(11) All marihuana products made available for sale at a temporary marihuana event by a licensee must comply with all requirements of the MRTMA and these rules for the sale and tracking of marihuana products. This includes, at a minimum, all of the following:

(a) Identifying marihuana product from licensees’ inventory at the marihuana establishment that will be transported for sale at the event using a marihuana secure transporter or an agent of the licensee to the temporary marihuana event.

~~(b) Tracking in the statewide monitoring system any sales of marihuana product at the event in accordance with the requirements of these rules.~~

(c) Tracking in the statewide monitoring system any marihuana product that is not sold at the event and is returned to the marihuana establishment’s inventory at its permanent location. If more than 15 ounces of marihuana or 60 grams of concentrate is transported at 1 time, it must be transported using a marihuana secure transporter.

R 420.27a ~~Marihuana educational research license.~~ Rescinded.

~~Rule 27a. (1) A marihuana educational research license authorizes a licensee to do all of the following:~~

~~Obtain marihuana from a marihuana establishment.~~

~~Produce marihuana products.~~

~~Perform research on marihuana and marihuana products.~~

~~Dispose of marihuana and marihuana products.~~

(2) A licensee holding a marihuana educational research license shall apply for the necessary registration from the United States Drug Enforcement Administration (DEA). A licensee must provide proof of registration to the agency before engaging in any licensed activity.

(3) An application for a marihuana educational research license must be made under oath on a form provided by the agency. A complete application for a marihuana educational research license must contain the information required in these rules and information regarding the marihuana educational research license including, at a minimum, all of the following:

~~(a) A research plan including, at a minimum, all of the following:~~

~~(i) A written plan for documenting all individuals who will have access to the location and marihuana or marihuana products.~~

~~(ii) Detailed description and documentation of affiliation with a degree or certificate program offered by an institution of higher learning accredited by the Higher Learning Commission.~~

~~(iii) A brief description of the research that will be conducted.~~

~~(iv) A written plan to ensure secure delivery and receipt of marihuana at the licensed location.~~

~~(v) A written plan to ensure the safe storage of marihuana at the licensed location.~~

~~(vi) A written plan for the tracking of marihuana quantities at the licensed location.~~

~~(vii) A written plan for the disposal of marihuana after research.~~

~~(viii) A floor plan of the location.~~

(b) For an applicant seeking licensure for a marihuana educational research license, confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:

~~(i) The name and address of the proposed marihuana educational research license.~~

~~(ii) The municipality where the proposed marihuana educational research license is located.~~

~~(iii) The contact information for the municipality including, at a minimum, all of the following:~~

~~(A) The name of the clerk of the municipality or his or her designee.~~

~~(B) The telephone number of the clerk of the municipality or his or her designee.~~

~~(C) The email address of the clerk of the municipality or his or her designee.~~

~~(D) The mailing address of the clerk of the municipality or his or her designee.~~

~~(iv) Confirmation that the municipality has not adopted an ordinance prohibiting the proposed marihuana educational research license.~~

~~(v) Confirmation that the applicant is in compliance with any ordinance the municipality has adopted relating to marihuana establishments within its jurisdiction, including zoning regulations.~~

(vi) Attestation that the applicant will report any changes that occur with municipal ordinances or zoning regulations that relate to the proposed marihuana educational research license, any municipal approvals, or any violations of a municipal or zoning regulation.

~~(vii) The date and signature of the applicant.~~

~~(c) A certificate of use and occupancy pursuant to R 420.208 in which the authorized activities of the marihuana educational research license are to be conducted.~~

~~(d) Any other documents required by the agency that are not inconsistent with the acts and these rules.~~

(4) An applicant for a marihuana educational research license shall provide notification and report to the agency in writing within 24 hours when he or she became aware of or should have become aware of all of the following:

~~(a) Loss of institutional affiliation.~~

~~(b) Loss of institutional accreditation.~~

~~(c) Loss or restriction of DEA registration.~~

~~(d) Theft, loss, diversion, or criminal activity at the licensed location.~~

(5) A marihuana educational research licensee shall maintain and provide upon request of the agency a written schedule for disposal of marihuana and marihuana products after it has concluded research on that item.

~~(6) A marihuana educational research licensee shall accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required by the agency.~~

~~(7) A marihuana educational research licensee shall not sell or transfer marihuana or marihuana products to a marihuana establishment or to a marihuana customer.~~

~~(8) A marihuana educational research licensee shall designate and enter into the statewide monitoring system administrative users pursuant to R 420.602(2)(b) and (c) as required by the agency.~~

(9) A marihuana educational research licensee shall prohibit marihuana or marihuana products grown, produced, or obtained under the license to be consumed or sampled on the licensed premises unless the licensee is approved to engage in a research study under R 420.510(11) or the licensee obtains express written permission from the agency.

R 420.27b ~~Class A marihuana microbusiness.~~ Rescinded.

~~Rule 27b. (1) An applicant for a class A marihuana microbusiness license is subject to and shall meet the requirements of the MRTMA and these rules.~~

~~(2) An application for a class A marihuana microbusiness license must be made under oath on a form provided by the agency and must contain information as prescribed by the agency.~~

~~(3) An applicant for a class A marihuana microbusiness license shall pay applicable fees as required under these rules.~~

~~(4) The agency may determine that an applicant is ineligible for a license or may deny an application for the reasons specified in these rules, as applicable.~~

~~(5) Payment of the initial licensure fee must be received prior to issuance of the state license.~~

~~(6) A class A marihuana microbusiness licensee is subject to all requirements for a marihuana microbusiness as provided for in the MRTMA and these rules, unless modified in these rules.~~

(7) An applicant shall pay the initial licensure fee for a class A marihuana microbusiness license within 10 calendar days of approval or within 90 calendar days of submitting a complete application, whichever date is first.

R 420.28 ~~Renewal; notifications; inspections and investigations; penalties; sanctions; fines; sale or transfer.~~ Rescinded.

Rule 28. (1) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, and marihuana event organizer license are issued for a 1-year period and may be renewed. An applicant for renewal must meet the requirements, as applicable, and apply in the manner prescribed in these rules.

(2) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, and marihuana event organizer applicant or licensee are subject to the notification and reporting requirements specified in these rules, as applicable.

(3) A designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer licensee or licensee participating in a temporary marihuana event shall comply with the notification requirements for theft, loss, or criminal activity pertaining to marihuana product under these rules, as applicable.

(4) An applicant for or a licensed designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer are subject to the inspections and investigations specified in these rules, as applicable.

(5) An applicant for or a licensed designated consumption establishment, class A marihuana microbusiness, marihuana educational research license, or marihuana event organizer are subject to these rules regarding violations, sanctions, and fines.

~~(6) A licensee selling marihuana products at a temporary marihuana event shall comply with the requirements of these rules regarding the sale or transfer of marihuana.~~

~~(7) A licensee selling marihuana products at a temporary marihuana event shall comply with the requirements of these rules regarding purchasing limits in a single transaction.~~

R 420.29 ~~Severability.~~ Rescinded.

Rule 29. If any rule or subrule of these rules, in whole or in part, is found to be invalid by a court of competent jurisdiction, such decision will not affect the validity of the remaining portion of these rules.

~~DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS~~

~~MARIJUANA REGULATORY AGENCY~~

~~MARIHUANA LICENSEES~~

(By authority conferred on the executive director of the marijuana regulatory agency by section 206 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27206, sections 7 and 8 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957 and 333.27958, and Executive Reorganization Order No. 2019-2, MCL 333.27001)

PART 3. ADDITIONAL MARIHUANA LICENSE TYPES

R 420.101 ~~Definitions~~ Additional license types.

Rule 1101. ~~(1) As used in these rules:~~

~~(b) “Agency” means the marijuana regulatory agency.~~

(c) “Another party” or “other party” means an individual or company with which a licensee contracts to use the individual’s or company’s intellectual property or to utilize management or other services provided by the individual or company.

~~(d) "Applicant" means a person who applies for a marihuana license, subject to paragraphs (i) and (ii) of this subdivision:~~

~~(A) For an individual or sole proprietorship: the proprietor and spouse.~~

~~(B) For a partnership and limited liability partnership: all partners and their spouses.~~

(G) For a multilevel ownership enterprise: any entity or person that receives or has the right to receive more than 10% of the gross or net profit from the enterprise during any full or partial calendar or fiscal year.

~~(H) For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or the bylaws and their spouses.~~

(I) For a trust: trustees, any individual or body able to control and direct the affairs of the trust, and any beneficiary who receives or has the right to receive more than 10% of the gross or net profit of the trust during any full or partial calendar or fiscal year and their spouses.

~~(ii) For purposes of this definition, an applicant does not include:~~

(A) A person who provides financing to an applicant or licensee under a bona fide financing agreement at a reasonable interest rate unless the person exercises control over or participates in the management of the marihuana business.

(B) A franchisor who grants a franchise to an applicant, if the franchisor does not have the right to receive royalties based upon the sale of marihuana or marihuana-infused products by the applicant who is a franchisee. Nothing in this subrule shall be construed to preclude a franchisor from charging an applicant who is a franchisee a fixed fee. As used in this definition, the terms “franchise,” “franchisor,” and “franchisee” have the meanings set forth in section 2 of the franchise investment law, 1974 PA 269, MCL 445.1502.

(D) A person receiving reasonable payment under a licensing agreement or contract approved by the agency concerning the licensing of intellectual property including, but not limited to, brands and recipes.

(E) A person who receives a percentage of profits as an employee if the employee does not meet the definition of “managerial employee” and the employee does not receive more than 10% of the gross or net profit from the licensee during any full or partial calendar or fiscal year.

(F) A person who receives a bonus as an employee if the employee is on a fixed wage or salary and the bonus is not more than 25% of the employee’s pre-bonus annual compensation or if the bonus is based upon a written incentive/bonus program that is not out of the ordinary for the services rendered.

~~(e) “Clone” means a replication of a single parent plant through vegetative propagation.~~

~~(f) “Common ownership” means 2 or more state licenses or 2 or more equivalent licenses held by 1 person under the Michigan Regulation and Taxation of Marihuana Act.~~

(g) “Employee” means a person performing work or service for compensation. “Employee” does not include individuals providing trade or professional services who are not normally engaged in the operation of a marihuana business.

(h) “Immature plant” means a nonflowering marihuana plant that is no taller than 8 inches from the growing or cultivating medium and no wider than 8 inches, produced from a cutting, clipping, tissue culture, or seedling, and that is in a growing or cultivating medium or in a growing or cultivating container.

~~(i) “Industrial hemp” means that term as defined in section 3 of the Michigan regulation and taxation of marihuana act, 2018 IL 1, MCL 333.27953.~~

~~(j) “Industrial hemp research and development act” means the industrial hemp research and development act, 2014 PA 547, MCL 286.841 to 286.859.~~

(k) “Intellectual property” means all original data, findings, or other products of the mind or intellect commonly associated with claims, interests, and rights that are protected under trade secret, patent, trademark, copyright, or unfair competition law and includes brands or recipes.

~~(l) “Licensing agreement” means any understanding or contract concerning the licensing of intellectual property related to marihuana products between a licensee and another party.~~

(m) “Management agreement” means any understanding or contract between a licensee and another party for the provision of management or other services that would allow the other party to exercise control over or participate in the management of the licensee or to receive more than 10% of the gross or net profit from the licensee during any full or partial calendar or fiscal year. A management agreement does not include an agreement for the reasonable payment of rent on a fixed basis under a bona fide lease or rental obligation unless the person exercises control over or participates in the management of the marihuana business.

(n) “Managerial employee” means those employees who have the ability to control and direct the affairs of the marihuana business or have the ability to make policy concerning the marihuana business, or both.

(o) “Marihuana business” means a marihuana facility under the medical marihuana facilities licensing act, or a marihuana establishment under the Michigan Regulation and Taxation of Marihuana Act, or both.

(p) “Marihuana establishment” means a marihuana grower, marihuana safety compliance facility, marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter, or any other type of marihuana-related business licensed by the agency under the Michigan Regulation and Taxation of Marihuana Act.

~~(q) “Marihuana facility” means a location at which a licensee is licensed to operate under the medical marihuana facilities licensing act.~~

(r) “Marihuana license” means a state operating license issued under the medical marihuana facilities licensing act, or a state license issued under the Michigan Regulation and Taxation of Marihuana Act, or both.

~~(s) “Marihuana product” means marihuana or a marihuana-infused product, or both, as those terms are defined in the applicable act unless otherwise provided for in these rules.~~

(t) “Mature plant” means a flowering or nonflowering marihuana plant that has taken root and is taller than 8 inches from the growing or cultivating medium or wider than 8 inches, produced from a cutting, clipping, tissue culture, or seedling, and that is in a growing or cultivating medium or in a growing or cultivating container.

~~(u) “Medical marihuana facilities licensing act” or “MMFLA” means the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.~~

~~(v) “Michigan Regulation and Taxation of Marihuana Act” or “MRTMA” means the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.~~

~~(w) “Marihuana tracking act” means the marihuana tracking act, 2016 PA 282, MCL 333.27901 to 333.27904.~~

~~(x) “Parties” means a licensee and another party pursuant to a licensing or management agreement.~~

(y) “These rules” means the administrative rules promulgated by the agency under the authority of the medical marihuana facilities licensing act, the marihuana tracking act, the Michigan Regulation and Taxation of Marihuana Act, and Executive Reorganization Order No. 2019-2, MCL .333.27001.

(z) “Same location” means separate marihuana licenses that are issued to multiple marihuana businesses that are authorized to operate at a single property but with separate business suites, partitions, or addresses.

~~(2) Terms defined in the acts have the same meanings when used in these rules unless otherwise indicated.~~ (1) The following additional licenses are created under section 8(2)(a) of the MRTMA, MCL 333.27958:

(a) Designated consumption establishment license.

(b) Excess marihuana grower license.

(c) Marihuana event organizer license.

(d) Temporary marihuana event license.

(e) Marihuana educational research license.

(f) Class A marihuana microbusiness license.

(2) Except for a temporary marihuana event license, a special license is issued for a 1-year period and is renewable annually.

(3) A person may apply for a license listed under subrule (1) of this rule as provided in part 2 of these rules.

~~PART 1. LICENSEES UNDER THE MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT~~

R 420.102 ~~Marihuana grower license~~ Designated consumption establishment license.

Rule 2102. (1) A marihuana grower license authorizes the marihuana grower to cultivate not more than the following number of marihuana plants under the indicated license class for each marihuana grower license the marihuana grower holds in that class:

~~(a) Class A – 100 marihuana plants.~~

~~(b) Class B – 500 marihuana plants.~~

~~(c) Class C – 2,000 marihuana plants.~~

~~(2) For the purposes of this rule, only mature marihuana plants are included in the plant count in subrule (1) of this rule.~~

(3) Except as otherwise provided in the MRTMA and these rules, a marihuana grower license authorizes sale of marihuana and marihuana plants to a marihuana grower only by means of a marihuana secure transporter. A marihuana grower license authorizes the sale or transfer of seeds, seedlings, tissue cultures, or immature plants to a marihuana grower from another marihuana grower without using a marihuana secure transporter.

(4) A marihuana grower license authorizes a marihuana grower to transfer marihuana without using a marihuana secure transporter to a marihuana processor or marihuana retailer if both of the following are met:

(a) The marihuana processor or marihuana retailer occupies the same location as the marihuana grower and the marihuana is transferred using only private real property without accessing public roadways.

~~(b) The marihuana grower enters each transfer into the statewide monitoring system.~~

~~(5) A marihuana grower license authorizes sale of marihuana, other than seeds, seedlings, tissue cultures, immature plants, and cuttings, to a marihuana processor or marihuana retailer.~~

(6) Except as otherwise provided in the MRTMA, subrules (3) and (4) of this rule, and R 420.304, a marihuana grower license authorizes the marihuana grower to transfer marihuana only by means of a marihuana secure transporter.

~~(7) A marihuana grower must accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required in these rules.~~

(8) A marihuana grower license does not authorize the marihuana grower to operate in an area unless the area is zoned for industrial or agricultural uses or otherwise meets the requirements established in section 9(3)(c) of the MRTMA, MCL 333.27959(c).

(9) A marihuana grower may purchase or accept the transfer of marihuana seeds, tissue cultures, and clones that do not meet the definition of marihuana plant in these rules at any time from another grower licensed under the acts.

(10) A class A marihuana grower may accept the transfer of marihuana plants only once upon licensure from a registered primary caregiver if the registered primary caregiver was an applicant for that class A marihuana grower license.

~~(11) A marihuana grower licensee is required to comply with the requirements of the MRTMA and these rules.~~

~~(12) A marihuana grower may not purchase or accept the transfer of a mature plant from an individual, registered qualifying patient, or registered primary caregiver~~. (1) A person that allows consumption of marihuana on the premises of a non-residential location and does any of the following for longer than 7 consecutive days shall obtain a designated consumption establishment license:

(a) Charges a fee for entry.

(b) Sells goods or services while individuals are consuming on the premises.

(c) Requires membership for entry.

(2) In addition to the requirements in part 2 of these rules, a person that applies for a designated consumption establishment license shall submit all of the following:

(a) Proof that the applicant owns the location or, if the location is leased, written permission from the owner of the location approving the applicant’s use of the location for the on-site consumption of marihuana.

(b) A responsible operations plan that includes a detailed explanation of how employees will monitor and prevent any of the following on the premises:

(i) Over-intoxication.

(ii) Underage access to the designated consumption establishment.

(iii) The illegal sale or distribution of marihuana within the consumption establishment.

(iv) Any other criminal activity.

(c) A documented employee training that addresses all components of the responsible operations plan.

(d) A waste management plan that meets the requirements of R 420.211 for disposing of marihuana waste left at the marihuana establishment.

(3) A designated consumption establishment may be co-located with a non-marihuana business.

(4) If a non-marihuana business requires a federal, state, or local license or other authorization to operate, the designated consumption establishment must not be co-located with the non-marihuana business until the non-marihuana business obtains permission to be co-located with a designated consumption establishment from the federal, state, or local authority that grants the license or other authorization.

(5) A designated consumption establishment must not be co-located with the licensed premises of a liquor license issued under the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303, and shall not allow the sale, serving, or consumption of alcohol onsite.

(6) A designated consumption establishment shall do both of the following:

(a) Dispose of marihuana waste or marihuana plant waste left at the establishment.

(b) Maintain a log of marihuana waste and marihuana plant waste, which must include a description of the waste and the amount and the manner in which it was disposed.

R 420.103 ~~Marihuana processor license~~ Excess marihuana grower license.

Rule 3103. (1) A marihuana processor license authorizes the marihuana processor to purchase or transfer of marihuana or marihuana-infused products from only a licensed marihuana establishment and sell or transfer of marihuana-infused products or marihuana to only a licensed marihuana establishment.

(2) Except as otherwise provided in these rules and the MRTMA, a marihuana processor license authorizes a marihuana processor to transfer marihuana only by means of a marihuana secure transporter. A marihuana processor license authorizes a marihuana processor to transfer marihuana without using a marihuana secure transporter to a marihuana grower, marihuana processor, or marihuana retailer if both of the following are met:

(a) The marihuana grower, marihuana processor, or marihuana retailer occupies the same location as the marihuana processor and the marihuana is transferred using only private real property without accessing public roadways.

~~(b) The marihuana processor enters each transfer into the statewide monitoring system.~~

~~(3) A marihuana processor must accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required in these rules.~~ (1) An excess marihuana grower may engage in any activity in which a class C marihuana grower may engage.

(2) An excess marihuana grower shall comply with all requirements with which a class C marihuana grower must comply.

(3) The agency shall not issue an initial excess marihuana grower license but shall renew the excess marihuana grower license of a licensee that meets the requirements for renewal under part 2 of these rules.

R 420.104. ~~Marihuana retailer license~~ Marihuana event organizer license.

Rule 4104. (1) A marihuana retailer license authorizes the marihuana retailer to purchase or transfer of marihuana or marihuana-infused products from only a licensed marihuana establishment and sell or transfer to only a licensed marihuana establishment or an individual 21 years of age or older. Except as otherwise provided in these rules, and the MRTMA, all transfers of marihuana to a marihuana retailer from a separate marihuana establishment must be by means of a marihuana secure transporter. A transfer of marihuana to a marihuana retailer from a marihuana establishment that occupies the same location as the marihuana retailer does not require a marihuana secure transporter if the marihuana is transferred to the marihuana retailer using only private real property without accessing public roadways.

(2) A marihuana retailer license authorizes the marihuana retailer to transfer marihuana to or from a marihuana safety compliance facility for testing by means of a marihuana secure transporter or as provided in these rules.

~~(3) A marihuana retailer shall comply with all of the following:~~

~~(a) Sell or transfer marihuana to an individual 21 years of age or older only after it has been tested in accordance with these rules and bears the label required for retail sale.~~

~~(b) Accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required in these rules.~~

(c) Before selling or transferring marihuana to an individual 21 years of age or older, verify the individual appears to be 21 years of age or older by means of government-issued photographic identification containing a date of birth and that the sale or transfer will not exceed the single transaction limit in these rules. A person shall not organize or host a temporary marihuana event unless the person is issued a marihuana event organizer license.

R 420.105 ~~Marihuana microbusiness license~~ Temporary marihuana event license; application.

Rule 5105. ~~(1) A marihuana microbusiness license authorizes the marihuana microbusiness to do all of the following:~~

~~(a) Cultivate not more than 150 plants. Only mature marihuana plants are included in the plant count in this subdivision.~~

~~(b) Process and package marihuana.~~

~~(c) Sell or transfer marihuana to an individual 21 years of age or older only.~~

~~(d) Transfer marihuana to a marihuana safety compliance facility for testing.~~

(2) Except as otherwise provided in R 420.304, this rule, and the MRTMA, a marihuana microbusiness license authorizes a marihuana microbusiness to transfer marihuana from the marihuana grower area to the marihuana processor and marihuana retailer areas of the marihuana microbusiness and from the marihuana processor area to marihuana grower and marihuana retailer areas of the marihuana microbusiness without using a marihuana secure transporter if all areas of the marihuana microbusiness enter each transfer between different areas of the marihuana microbusiness into the statewide monitoring system.

~~(3) A marihuana microbusiness shall not operate at multiple locations.~~

~~(4) A marihuana microbusiness must accurately enter all transactions, current inventory, and other information into the statewide monitoring system as required in these rules.~~

(5) A marihuana microbusiness may purchase or accept the transfer of marihuana seeds, tissue cultures, and clones that do not meet the definition of marihuana plant in these rules at any time from another grower licensed under the acts, these rules, or both. A marihuana microbusiness shall not sell or transfer marihuana seeds, tissue cultures, or clones received under this subrule.

(6) A marihuana microbusiness may accept the transfer of marihuana plants only once upon licensure from a registered primary caregiver if the registered primary caregiver was an applicant for that marihuana microbusiness license. (1) A temporary marihuana event license may be issued only to a marihuana event organizer.

(2) A temporary marihuana event license is valid for a period of at least 1 day and not more than 7 days, which must be consecutive. The agency shall indicate on a temporary marihuana event license how long the license is valid.

~~(3) An application for a temporary marihuana event license must be submitted to the agency not less than 90 days before the first day of the temporary marihuana event.~~

~~(4) A temporary marihuana event may be held only if the applicant is expressly approved by a municipality to hold a temporary marihuana event at the proposed location of the event.~~

~~(5) A marihuana event organizer who applies for a temporary marihuana event license shall apply in a manner prescribed by the agency and provide all of the following:~~

~~(a) One of the following:~~

~~(i) If the marihuana event organizer is an individual, the first and last name of the individual.~~

~~(ii) If the marihuana event organizer is a business entity, the legal name of the business entity.~~

~~(b) The marihuana event organizer license number and license number of any other marihuana establishment license held by the applicant.~~

~~(c) The address of the location where the temporary marihuana event will be held.~~

~~(d) The name of the temporary marihuana event.~~

~~(e) A diagram of the physical layout of the temporary marihuana event that clearly indicates each of the following:~~

~~(i) Where the temporary marihuana event will take place on the location grounds.~~

~~(ii) Entrances and exits that will be used by participants during the event.~~

~~(iii) Areas designated for the consumption of marihuana.~~

~~(iv) Areas where marihuana will be sold.~~

~~(v) Areas where marihuana will be stored.~~

~~(vi) Areas where marihuana waste will be stored.~~

~~(vii) The specific location of each marihuana retailer, marihuana microbusiness or class A marihuana microbusiness who will be participating in the event.~~

~~(f) The dates and hours of operation of the temporary marihuana event.~~

~~(g) Contact information for the designated primary contact person for the temporary marihuana event license, including the individual’s name, title, address, phone number, and email address.~~

~~(h) Contact information for a designated contact person or persons who will be onsite at the event, and reachable by telephone during the dates and hours of operation of the temporary marihuana event.~~

~~(i) Confirmation of municipal compliance on an attestation form provided by the agency that includes all of the following:~~