We have already discussed that all of the licenses related to the business of cannabis use in Michigan are regulated. Disciplinary actions that include the payment of fines, suspension of the license, or the revocation of the license are taken very seriously by the State upon failure of the parties to comply.
With that, licensees need to follow the rules and business regulations on the selling of cannabis.
The new law on expungement that will soon be implemented in the state of Michigan has raised a lot of questions about its effect on the use of cannabis or marijuana in the State. While some citizens are concerned about how they can legally use the substance others are concerned about how they can legally start a business selling cannabis.
Here at Haque Legal, it is our goal to provide information to potential clients and our readers. We want to make sure that we get the message across and tell you all of the possible information that you would need to protect your rights.
When it comes to cannabis use, there are some things that you need to know first about before even thinking about touching the substance. If you are into business, you need to hold off any plans on selling the substance until you follow the rules on this series of articles about the business of cannabis use in Michigan.
Let us talk about the regulations.
One of the things that you should be very careful about is the fact that there are regular inspections of all of the marijuana establishments in Michigan. Any person who is a department representative may not be refused entry in any of the establishments licensed by the State. The visits are not only limited to the plantation itself but also the audit of the business records of the establishments.
Since cannabis is a regulated drug or substance in other states the security requirements of the cannabis establishments in Michigan are very strict. Every entrance is required to be guarded and no person who is unauthorized and not employed by the company will be allowed entry to the establishment.
The inventory must also be secured at all times as well as the equipment.
Rules and Regulations
There are many rules and regulations that establishments must follow to maintain their license.
Not Visible To Public Eye
A marijuana establishment is not allowed to cultivate or process any of its products that are visible from the public eye. The processing must always be private and should not be visible from a public place that is outside of the establishment.
No Person Below 21
Any person under the age of 21 is not allowed to work or even volunteer at any of the marijuana establishments. Any failure on the part of the establishment to verify the age of their employees will be taken against them.
No attractive packaging
No marijuana processor may process the cannabis in candy shape or packaging that would be attractive to children and may easily be confused with other candies that are already available in the market.
Every marijuana package shall be contained in a syllable and child-resistant package which would be very difficult for children under the age of 5 to open.
No Overlap of Business
There must not be an overlap of businesses for marijuana establishments. They are not allowed to also work in the tobacco industry.
No marijuana establishment shall be structured at least 1,000 feet from a preschool or any educational institution for that matter.
Payment of Taxes
The unique offshoot of the legalization of the use of cannabis in Michigan is the fact that non-payment of taxes of the establishments and the sellers may be prosecuted on a federal level by the Internal Revenue Service (IRS).
What are the taxes that the legal marijuana establishments are required to pay?
The following are the taxes that you should expect to pay when handling a marijuana business:
- 10% tax on all marijuana products; and
- 6% standard sales tax on marijuana that goes directly to the Michigan School Aid Fund.
Crimes and Penalties
Now that you know the legalities that you are required to follow once you open a business related to cannabis use in Michigan you should know that the rules are also very strict when it comes to the penalties. Let us look at them:
For individuals who fail to follow the 12 plant rules, you would be facing the following charges and penalties:
- If you have more than 12 plants but the total is not more than 24 plants, your first violation is merely a civil infraction and a fine of $500. The second violation has a higher fine of $1,000. The third violation becomes a misdemeanor charge and a fine of $2,000. In all cases, all of your plants, not just the excess will be forfeited by the State.
- If you have more than 24 plants, you will be charged with a misdemeanor offense and you will be subject to jail time. Keep in mind that even if the cultivation of marijuana is no longer criminal in Michigan, it is legally regulated and you must follow the limitations set by the law.
You should also remember that if you are planning to sell the marijuana plant, you may also be charged with possession with intent to distribute.
These penalties are on the State of Michigan level. The penalties are stiffer on a federal level, which we will discuss in the next part of this series.
You Might Need Our Help
Our Southfield criminal defense lawyers are dedicated to making sure that those who are innocent will be protected by the law and the full extent of justice will be used. We also want to make sure that you know how to protect your rights and how to enjoy them. If you want to start using cannabis recreationally or start a business of selling that is legal, we are here to help you out.
The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.
Let us help you out.
If you need help with making your cannabis use legal, we are here to help. Our Southfield drug charge attorneys are always standing by to help you out.