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Michigan Designated Consumption Establishments Explained

Michigan Designated Consumption Establishments Explained

cannabis cafes coming to Michigan

Michigan legalized cannabis in 2018, and passed emergency rules to get the industry rolling in July 2019.

In addition to creating your run of the mill rules regarding licensing for growers, processors, distributors and retailers, Michigan also created some new license types. These new licenses include a Marijuana Event Organizer license, a Temporary Marijuana Event license and an Excess Marijuana Grower license.

But what has the consumers excited is a different license. A Designated Consumption Establishment license.

Michigan Designated Consumption Establishments

A Designated Consumption Establishment (DCE) license allows the license holder, with local approval, to operate a commercial space that is licensed by the Marijuana Regulatory Agency and authorized to permit adults 21 years of age and older to consume marijuana and marijuana products on premises. A DCE license does not allow for sales or distribution of marijuana or marijuana product, unless the license holder also possesses a Retailer or Microbusiness license.

It is common for public cannabis possession public arrests to rise after a state legalizes cannabis. This happens because most states only allow consumption on private property, and many people who rent may have to go outside to smoke. Michigan saw this problem in other states and is aiming to deal with it before it grows with DCEs, more commonly known as cannabis cafes or lounges.

This license is available to any applicant regardless of if they are currently holding any other licenses. The DCE license is also open to marijuana retailers, microbusinesses or anyone wanting to operate a “bring-your-own-cannabis” model.

DCE Requirements

Applicants for a DCE license must have met a multitude of key criteria. The foremost is a location approved and supported by the local municipality. Next, the facility must have:

  • An identified area specifically suitable for marijuana consumption, as well as smoke-free areas. DCE rules do allow facilities in which only non-smokable cannabis is consumed; in these spaces, no specified place for smoking cannabis is required.
  • A smoke-free area for employees to monitor the marijuana consumption area. Facility operators must ensure employees are not subjected to indirect or unintended cannabis consumption while working at the facility.
  • The facility must have a ventilation system that directs air from the marijuana consumption area to the outside of the building, through a filtration system designed to remove visual smoke and odor.
  • The facility must have sufficient walls and barriers to ensure smoke does not infiltrate into nonsmoking areas or adjacent spaces.

Additionally, when applying to be a Designated Consumption Establishment for marijuana in Michigan, microbusinesses will need to submit the following information as well:

  • A Designated Consumption Establishment Plan, or diagram of the facility that explains layout, defines facility locations, and indicates distinct areas or structures distinguishing a DCE from other licenses that may be applicable in adjacent locations.
  • Building, Construction and Zoning Details so the MRA can verify a safe operation including building and fire safety review, plus ensure a detrimental impact will not occur on adjacent businesses and residences.
  • A Business Plan that must include proposed hours of operation and, if part of the plan, the intended mechanisms for consumers to acquire cannabis at the facility.
  • A Plan for Responsible Operations such as an employee training program, how consumption will be monitored, plus prevention of over-intoxication, underage access, and the illegal sale or distribution of cannabis within the establishment.
  • Waste Management Plan for handling and disposal of any waste at the facility, including unconsumed cannabis products left by patrons of the facility.

Applicants for a Designated Consumption Establishment for Marijuana in Michigan also must undergo a preliminary background check. The Initial Applicant fee for a Designated Consumption Establishment is currently $1,000 and is valid for one year. The renewal fee is also $1,000. Like all other Michigan dispensaries and other licenses, MRA reserves the right to increase fees collected by 10% each year.

A model to follow?

Many states have the same issue that Michigan is trying to deal with right now. As previously mentioned, most states require cannabis consumption to take place on private property, but very few states have cannabis consumption establishments. This leads to more public consumption, and more arrests or citations.

A few states like Colorado have attempted to create consumption establishments, but have fallen short due to restrictions on smoking indoors in Denver. While dabbing and vaping is popular, most people are comfortable doing that in a place they rent since the smell doesn’t stick around.

We have yet to see how the Designated Consumption Establishments will pan out in Michigan or if certain municipalities will ban them all together. The Marijuana Regulatory Agency plans to finalize their rules and begin implementation in January 2021.

Weed delivery coming to Masschusetts

Weed delivery coming to Masschusetts

weed delivery in massachusetts

Home delivery of recreational marijuana in Massachusetts is on track to begin in 2021, after the state Cannabis Control Commission moved to lock in detailed regulations for the service.

On a 3-1 vote at a meeting Tuesday, the agency affirmed among other policies that it would issue two types of weed delivery licenses. Officials said they should help cut into the unregulated pot delivery market — while also fulfilling the commission’s legislative mandate to create a more equitable playing field for Black and brown entrepreneurs who have so far struggled to enter the capital-intensive legal marijuana business.

“We’ve shown we can regulate this industry safely and fairly,” commission chairman Steve Hoffman told reporters. “I believe this is a necessary, imperative step to create equity in this marketplace . . . and minimize the illicit market.”

Two weed delivery licenses

One license, a more limited “courier” permit under which drivers would pick up individual orders on demand from brick-and-mortar marijuana shops and bring them to customers’ doorsteps for a fee, is already available to businesses; so far, 37 companies have received initial certification and are pursuing local and state approval.

The second is a new category of expanded “warehouse” weed delivery licenses (formally, “marijuana delivery operator” licenses) that essentially allow companies to operate like retailers without physical storefronts, buying marijuana products in bulk from suppliers and reselling the inventory online via home weed delivery. Applications for the expanded licenses should become available in the first half of 2021.

Entrepreneurs in the commission’s social equity and economic empowerment programs — largely Black and brown entrepreneurs affected by the war on drugs — will have exclusive access to both types of delivery licenses for three years, beginning when the first marijuana delivery operator opens for business.

Brick and Mortar dispensaries opposed

The addition of the expanded retailer-like delivery licenses to the commission’s proposed regulations in August drew howls of protest from many existing brick-and-mortar marijuana stores, which had been poised to serve as the source of all home pot deliveries under the earlier, courier-only model.

Dispensary owners argue the expanded weed delivery operations will unfairly undermine their main street businesses and, in turn, deprive municipalities of tax revenue. The Massachusetts Municipal Association and a handful of state legislators allied with the dispensaries also weighed in against the new licenses, saying in part that more time was needed to review the change.

Critics further questioned whether the warehouse-type businesses, which are subject to the same intensive security regulations as other marijuana facilities, would be affordable for disenfranchised entrepreneurs; a selling point of the original courier-only model was that it required only a van with security cameras and a small dispatch office where no cannabis was stored.

“We’re very disappointed,” David Torrisi, president of the Commonwealth Dispensary Association, said in an interview. “The public, municipalities, and legislators haven’t had enough time to digest this proposal, and I don’t think the commission has done enough analysis to determine the impact on the supply chain and the marketplace.”

He added the association was weighing possible legislative or legal action in response.

More social equity in weed delivery in Massachusetts

Proponents of the expanded licenses counter that the courier licenses are financially unviable. And, they argued, white-owned recreational dispensaries that emerged from the existing medical marijuana program — which gave no consideration to equity when awarding licenses — have already had the cannabis business mostly to themselves for years.

Besides, they said, weed delivery services in other states with legal cannabis account for perhaps 20 to 30 percent of the market, hardly an Amazon-style retail armageddon.

“This is a huge step forward,” said Christopher Fevry of the Massachusetts Cannabis Association for Delivery. “Couriers are at the mercy of the retailers. If they don’t give you orders, you die, and when the exclusivity period ends, they’ll just say, ‘we don’t need you anymore.’ Now we’re in control of our own destiny.”

Regulators did take steps to address the concerns raised by critics, including limiting the number of weed delivery licenses any company can own to two.

The commission also voted to ban third-party marijuana delivery technology platforms — such as Eaze and Lantern, an offshoot of alcohol delivery firm Drizly — from having a “financial interest” in more than one cannabis delivery licensee. The policy is meant to prevent the popular websites from preferentially steering consumers to delivery companies they’re invested in while freezing out independent operators; it could also help assuage brick-and-mortar dispensary owners who feared a large Amazon-like platform would back numerous delivery firms and dominate the market.

Commissioners further opted to ban what they deemed the “ice cream truck” model, under which weed delivery operators might have prepositioned vans loaded with packaged pot products in strategic locations to fulfill anticipated orders. Instead, every order must originate from the company’s warehouse. And they left in place earlier security restrictions, including a mandate that two workers must ride in every delivery vehicle and a prohibition on delivering recreational marijuana to cities and towns that have banned retail marijuana storefronts. (Medical marijuana deliveries have long been allowed anywhere in the state.)

Commissioner Jen Flanagan, who has long opposed launching delivery operations on public safety and health grounds, made a last-ditch attempt to delay the program’s launch until 2023.

However, her motion failed 3-1, with Hoffman noting that the commission had originally planned to launch deliveries in 2018 before pulling back under pressure from Governor Charlie Baker and others who urged the agency to “crawl before it walks.” Outgoing Commissioner Britte McBride, who conceived of the original courier-only model, also opposed a delay.

“I don’t think we can wait [to address] equity or the illicit market any longer,” she said.

SOURCE ARTICLE

Can Massachusetts Recreational Cannabis Survive Coronavirus?

Can Massachusetts Recreational Cannabis Survive Coronavirus?

What happens to a federally illegal business during a national pandemic?

We are all about to see what happens in real time. As Coronavirus rapidly spreads across the United States, businesses everywhere are shutting down.

Restaurants are only doing delivery and takeout, and the only other businesses allowed to operate are those marked as “essential”. Doctors offices, pharmacies and grocery stores are understandably essential, but states are also marking liquor stores and cannabis dispensaries essential.

But not all dispensaries are so lucky to get the essential treatment.

The dispensary dilemma

Nobody would really argue that medical dispensaries are not essential. Medical cannabis users must get a doctor’s recommendation to use it, making cannabis their medicine. But recreational cannabis dispensaries are a whole different monster.

Different taxes, different regulations, different requirements. Recreational and medical cannabis, though identical in actual product, have been split into two different industries due to the progression of cannabis advocacy. While medical cannabis is just that, medicine, recreational cannabis has been put in line more with alcohol.

But while those who suffer severe alcohol addiction can actually die if they don’t have alcohol — presumably the main reason liquor stores have been deemed essential — recreational cannabis users can go cold turkey relatively easy with little side effects. And that’s why they haven’t been deemed essential in several states.

Although California and Colorado, among others, have deemed all cannabis businesses essential, Massachusetts has made headlines for shutting down all recreational cannabis sales. While it might not seem like a big deal considering hundreds of businesses have had to close down, there’s one crucial difference between recreational cannabis businesses and all others; federal legality.

No federal assistance

The Coronavirus pandemic has changed the way we all live and will live for quite some time. With a lot of businesses being forced to close, many have resorted to lay-offs, furloughs or completely closing down. In an effort to support small businesses, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27.

The legislation provides economic assistance to small businesses, in the form of interest free loans, a paycheck protection program and more. But this is a federal program, and a business that is considered illegal on the federal level can’t receive help from federal programs.

In other words, cannabis businesses both recreational and medical cannot receive any government assistance from the federal government. So while medical dispensaries have been deemed essential, recreational dispensaries in states like Massachusetts have not. So they are forced to close with no government assistance, leaving them with no option but to close down, lay-off or shut down completely.

To simplify, recreational dispensaries in states like Massachusetts are up shit creek without a paddle.

Can recreational cannabis survive Coronavirus?

Most recreational cannabis businesses might just have to tighten up a little bit over the next couple of months in most states. But the future is cloudy for recreational dispensaries in Massachusetts. If they can’t operate at all, they can’t make money, can’t pay rent on their location, and eventually can’t keep the business running.

It would be speculation to say that the governor of Massachusetts is doing this because of his lack of support for legal cannabis — even though it took Massachusetts over 3 years to open a recreational cannabis dispensary after legalizing in 2016 due to plenty of barriers — but it’s not hard to imagine a government official using a position of power to punish an industry they do not support.

Unlike other small businesses that might have to close down but can still receive government support, recreational cannabis dispensaries are pretty much on their own to make it through the Coronavirus pandemic, with no clear end in sight. It took four years for Massachusetts to get up and running with recreational cannabis, and it only took two weeks for the state to shut it all back down.

While the future is unclear, it’s going to be a tough road ahead for all cannabis businesses in the United States.

Are ALL Dispensaries Essential?

Are ALL Dispensaries Essential?

Cannabis dispensaries are being labeled “essential”. Should that also mean legal?

COVID-19, also known as Coronavirus, has completely changed the way we all live. As much as we don’t want to admit it, our everyday lifestyles are changing pretty drastically and the nation, its states, and businesses big and small are all struggling to find a solution.

With several states beginning to shut down “non-essential” businesses, the decision has to be made what businesses are essential. There’s the obvious essential businesses like grocery stores, doctors offices and pharmacies.

But one business most people probably didn’t expect to be marked essential is cannabis dispensaries.

Cannabis dispensaries are essential?

While most states are shutting down all non-essential businesses, exceptions have been made for a variety of businesses in different states. Most states are permitting restaurants to stay open for carry-out only, and in Colorado, you can now get alcohol to go from restaurants that serve beer.

Now in Los Angeles, amid an entire state-wide stay-in order, cannabis dispensaries have been deemed essential businesses that can remain open.

Unfortunately for recreational users, the rule only applies to medical dispensaries, which makes sense. People with a doctor’s prescription for medical cannabis, especially those with serious or debilitating conditions still need access to their medicine.

But if medical dispensaries are essential, and New York has even deemed liquor stores essential, then why shouldn’t recreational dispensaries be essential too?

The question that this really beckons to be answered though, is if medical cannabis dispensaries are essential businesses, why shouldn’t they be federally legal?

A sign we should legalize?

The fact that state governments across the country have deemed medical cannabis dispensaries essential and sales of recreational cannabis have skyrocketed over the past two weeks should be a sign that it is a product that is in great demand, right?

But that doesn’t mean recreational cannabis is as essential as medical cannabis, and as much as we hate to say it here at The Real Dirt, even alcohol.

The reason liquor stores are being permitted to remain open is likely due to the 15 million people across the country who suffer from alcoholism, and a smaller minority that suffers from serious addiction that could lead to serious health problems if they were to quit drinking cold-turkey.

If we continue to insist that cannabis is non-addictive (or at least not as harmfully addictive as alcohol and other pharmaceuticals), then there is no reason for recreational cannabis businesses to be deemed essential.

Nobody needs recreational cannabis to survive, unlike those with medical cards who could seriously rely on it. Where the debate lies, is in the differences between medical and recreational cannabis and how the line drawn between the two is so subtle and blurry.

Where does this lead?

A day after I started writing this, Colorado announced a stay-in-order, including the closure of liquor stores and recreational dispensaries. Not even four hours later, they were forced to walk it back.

There was so much backlash that the Governor of Colorado has now made recreational dispensaries and liquor stores essential businesses.

So while only medical dispensaries are deemed essential in California, recreational dispensaries are added to that list in Colorado. If other states follow behind Colorado and include recreational and medical dispensaries in their essential business orders, it could be a big bargaining chip in the fight for legalization.

If every state with medical and legal cannabis deems the businesses as essential — just as essential as grocery stores, doctor offices, and pharmacies — then how someone seriously argue that it should be illegal? We know the fight we’re in, however, and we know it won’t be that easy.

A more likely advancement that cannabis consumers can get excited about is the rise of cannabis delivery. Colorado is only allowing the first medical dispensary in Boulder to deliver starting this spring, with plans for recreational to follow in 2021.

But with current developments and a need to provide cannabis to thousands of consumers, more dispensaries will start to ask the government to move faster.

The fact remains that cannabis dispensaries are the only business across the country that have been deemed essential, while also being federally illegal. It’s pretty crazy when you really think about it. Read that first sentence again for maximum impact.

Illinois Recreational Cannabis: What to know for January 1st

Illinois Recreational Cannabis: What to know for January 1st

As soon as the clock hits midnight on January 1st, Illinois recreational cannabis sales are set to begin.

Illinois has been setting up regulations and requirements for recreational cannabis businesses over the last year, and it is all leading up to the first day of legal sales on January 1, 2020. The people are excited, and the state is ready to start pulling in those tax dollars.

However there are plenty of differences in the Illinois recreational cannabis laws and regulations for consumers that any would be dispensary-goer should know.

Who can buy Illinois recreational cannabis?

Just like every other recreational cannabis state, you must be 21 to purchase cannabis legally in Illinois. Out-of-state visitors will also be more limited in how much they can purchase compared to state residents, however there is no difference in price for in and out of state customers.

Illinois residents age 21 and over may possess 30 grams of cannabis flower, 500 mg of THC in a cannabis-infused product like edibles, and 5 grams of cannabis concentrate in total. These amounts are halved for non-residents. 

The totals are cumulative, so an Illinois resident could have 30 grams of flower, 500 mg of infused product and 5 grams of concentrate all at the same time. The same goes for nonresidents and their limits.

Where can I buy legal cannabis?

On January 1st, there are only going to be 37 Illinois recreational cannabis dispensaries open for business. If you’re in Chicago or the surrounding area you’re in luck, because that is where 24 of the dispensaries are located.

Champaign-Urbana, Peoria and Springfield all have two dispensaries nearby, and Carbondale, Effingham, Ottawa, the Quad Cities, Quincy and Rockford will each have one dispensary. Unfortunately, the state won’t begin reviewing applications for more dispensaries until March 15. Once approved, licenses will be distributed starting May 1st. On July 1st, up to 40 grower and infuser licenses will be issued along with an unlimited number of transportation licenses for in-state transport.

In other words, it’s going to be a slow start with limited access to Illinois recreational cannabis for most residents. The state will examine the progress through 2020 to determine whether or not more licenses need to be issued.

What about the taxes?

Like any recreational cannabis industry, Illinois is collecting some hefty taxes off the sale of legal cannabis. A good way to put it is, the higher you get, the higher the tax. For example, cannabis products with a THC level of 35% or less will only have a tax of 10%, and products over 35% will have a 25% tax. Basically, flower will have a 10% tax and concentrates will have a 25% tax. All infused products including edibles will have a 20% tax.

Additionally, state and local taxes will also apply, and the state law allows for municipalities to tax up to 3%. And if that isn’t enough taxes for you, local sales taxes also apply. The Illinois sales tax is currently 6.25%.

With limited access and extremely high taxes, it’s safe to say that Illinois recreational cannabis is not going to be cheap. But if there’s anything we can take away from other legal markets with high taxes, it’s that people are willing to pay for safe, legal access to cannabis.

Lastly, consumption

One thing that Illinois holds over other recreational cannabis states is its consumption laws. While public consumption is still prohibited, and smoking indoors was banned in the states in 2008, the Illinois cannabis laws allows on-site consumption at dispensaries, as well as cannabis smoking lounges. While no lounges have yet to open, some dispensaries and growers have applied to have lounges built in their existing facilities or separately attached for consumers.

An issue that will remain prevalent in every state that bans public consumption of cannabis is the impact it has on those in public housing or those living under a landlord that does not permit cannabis consumption. While a private homeowner can do whatever they please in the house they own, a renter is limited by what their landlord allows. This will continue to be problematic, especially for medical patients that need cannabis for serious ailments.

Since repetition is key, like any recreational cannabis state, Illinois has done some stuff well and some other stuff not so well (looking at those 37 dispensaries for the first year). But the trend of starting small and slow isn’t anything new when it comes to cannabis. States want to get their feet wet before diving into the deep end and that typically means more strict regulations that will ease up over time. For now, if you’re in one of the towns with a dispensary, check it out! And if not, plan a New Year’s trip to Chicago and check out a lot more options, and probably cheaper prices.