Regulators in Michigan announced on Thursday that license charges for legal healthcare marijuana companies in the state will be transitioning to a tier-primarily based method starting on October 1. Below the strategy, most companies would see a reduction in charges or no transform, while some organizations will finish up paying much more.

Andrew Brisbo, the director of the Marijuana Regulatory Agency, stated that healthcare marijuana organizations will now spend license charges primarily based on their size.

“We want to make the charges reasonably associated to the size of the operation, so companies are paying an equitable share,” stated Brisbo.

Below the regulations at present in spot, little cultivation operations can apply for a Class A license, which carries a charge of $10,000 as soon as the grower has been authorized by the state. Other healthcare marijuana companies spend $66,000, up from the original $48,000 charge that went into impact in July 2018. Cannabis testing labs are not necessary to spend a license charge.

Below the new tiered method that goes into impact on October 1, the Class A growers license charge of $10,000 will not transform. Other companies will spend charges primarily based on a 3-tier method. New licensees will spend the middle-tier charge when they are initially authorized by the state.

Class B growers will spend license charges of $24,000, $30,000, or $36,000 primarily based the size of the operation. Class C growers and processors will spend $45,000, $56,000, or $67,000. Provisioning centers (dispensaries) and safe transporters will spend $36,000, $44,000, or $52,000.

Brisbo stated that the new charges have been set to cover the fees of regulating the state’s healthcare marijuana business.

“We attempt to set the charges merely to offset the charges of our agency and the other fees constructed in from the MMFLA (Health-related Marihuana Facilities Licensing Act),” Brisbo stated.

Recreational Pot License Charges Reduced

State regulators have also released the license charges for companies to participate in Michigan’s legal recreational pot marketplace, which launches later this year. These license charges will truly be reduced than the charges for healthcare marijuana companies. For instance, healthcare marijuana provisioning centers will spend $36,000 to $52,000 to renew their license even though a related license for a recreational cannabis shop will price $20,000 to $30,000 to renew.

Brisbo stated that the discrepancy in charges for recreational cannabis and healthcare marijuana companies is due to state guidelines that call for some healthcare marijuana licensing charges to be diverted to external applications. The funds go to the state well being division to assistance substance abuse applications, to the Michigan State Police for regular field sobriety testing and police education, and to the Division of Licensing and Regulatory Affairs for licensing substance use disorder applications.

The Marijuana Regulatory Authority will start accepting license applications for recreational cannabis companies on November 1.