Michigan Phasing Out Caregivers’ Access to Cannabis Licensees

Medical cannabis caregivers in Michigan will no longer be allowed to transfer or sell products to licensed cannabis growers and processors under new state guidance that sets a September 30 end date on the practice; the Marijuana Regulatory Agency announced last week that the “phase out process” for the practice was already in effect.

Under previous rules, caregivers were allowed to transfer products to some licensed operators in an effort to ensure that medical cannabis patients would not run out of product as the state moved into recreational sales. The MRA said that under-supply of medical cannabis was no longer a concern as almost 200 cultivators and more than 25 processors have been issued.

Caregivers were barred from transferring products to dispensaries on April 1, 2019.

“We have always put patients first when we make decisions regarding medical marijuana. This phase out process is an important next step in implementing the will of Michigan voters and making sure that patients continue to have access to their medicine.” – MRA Executive Director Andrew Brisbo in a statement

During phase one of the process, which runs through May 31, cultivators and processors licensed by the state who obtain flower, shake, and trim directly from the caregiver who produced it will not be subject to disciplinary action by the MRA if they are using seed-to-sale software, logging the transaction, and if the product has been tested, according to a separate March 1 bulletin.

Phase two, which begins June 1, adds another condition for those growers who are receiving products from caregivers, in addition to the phase one stipulations:

“The total weight of marijuana flower a licensee obtains from caregivers is less than or equal to the total weight of marijuana flower that the licensee harvested (both wet and dry) between March 1, 2020 and May 31, 2020 plus the projected harvest weight (dry) of all plants that are in the flowering process on May 31, 2020.”

The bulletin notes that these values would be different for each cultivation facility.

For processors:

“The total weight of marijuana flower that processors obtain from caregivers must be less than or equal to 50% of the total weight of marijuana flower the licensee obtained from caregivers between the dates of March 1, 2020 and May 31, 2020. The marijuana flower obtained from caregivers must be processed and may not be sold or transferred as marijuana flower.”

Caregivers will be unable to transfer to any licensed business by September 30, after which licensees will be subject to disciplinary action.