Cannabis Law Group's Medical Marijuana Legal Blog
Detroit’s Second Round of Marijuana Business Licenses: An Opportunity for Equity Applicants and a Call for Expert Guidance
The city of Detroit is set to open its second round of limited cannabis business licenses, marking a significant step in the expansion of the city’s cannabis industry. Starting August 1, the city will begin accepting cannabis business license applications for a variety of licenses, including dispensaries, microbusinesses, and consumption lounges. This presents a unique opportunity for entrepreneurs looking to enter the burgeoning cannabis market, and the Cannabis Law Group is ready to provide expert guidance to navigate this process.
In this round, the city is offering 30 marijuana retailer licenses, 10 microbusiness licenses, and 10 consumption lounge licenses. Notably, half of all licenses are reserved for “equity applicants.” These are individuals who live in communities that have been disproportionately impacted by marijuana prohibition and enforcement. Equity applicants also include those with certified Detroit Legacy status living in Detroit or another disproportionately impacted community.
The announcement of this second round of licenses comes eight months after the city awarded 33 businesses recreational retail marijuana licenses. Following this, in early January, recreational marijuana officially became available for purchase in the city. Currently, there are 28 recreational marijuana dispensaries operating in Detroit.
The opening of these dispensaries marked the end of a years-long effort to allow recreational marijuana sales in Detroit after it was legalized in Michigan in 2018. The city faced several challenges in crafting an ordinance to allow these businesses in the community, including multiple legal challenges and zoning restrictions. The city is currently addressing these issues by reducing the distance cannabis retailers must be from other types of buildings.
The city code authorizes up to a total of 160 of the limited recreational cannabis licenses to be awarded over the course of three phases. There’s no limit on recreational marijuana licenses for processors, grow operations, and safety compliance labs, among others. The second application round closes on August 31, and prospective licensees will be notified of their approval status approximately six to eight weeks after that date.
In addition to the city’s licensing process, prospective licensees must also navigate the corresponding Michigan state licensing requirements. The Michigan Cannabis Regulatory Agency (MCRA) oversees the state’s medical and adult-use marijuana, hemp, and CBD industries. The MCRA ensures safe, accessible cannabis products for Michigan residents and emphasizes the importance of business compliance with all state laws and regulations.
The Cannabis Law Group, led by marijuana business lawyer Detroit Damian Nassiri, a seasoned cannabis attorney, is prepared to assist prospective licensees in this application process. The firm can provide expert consultation, help fill out business license applications, and draft any necessary business plans or contracts, such as partnership agreements or entity formation. They can also guide businesses through the state licensing process, ensuring compliance with all MCRA requirements.
The second round of marijuana business licenses in Detroit presents a significant opportunity for entrepreneurs, especially those from communities disproportionately impacted by marijuana prohibition. However, navigating the licensing process can be complex and requires a thorough understanding of both city and state regulations. The Cannabis Law Group is committed to providing the necessary legal guidance in this dynamic industry.
As the cannabis industry continues to evolve, staying informed and understanding the legal landscape is crucial. With the potential for significant growth in the Detroit cannabis market, now is the time for interested entrepreneurs to take action. For more information on how the Cannabis Law Group can assist with the licensing process, call them at 949-375-4734 or visit their website.