Michigan’s Marijuana Regulatory Agency Introduces Tier-Based Fee System

Regulators in Michigan announced on Thursday that license fees for legal medical marijuana businesses in the state will be transitioning to a tier-based system beginning on October 1. Under the plan, most businesses would see a reduction in fees or no change, although some companies will end up paying more.

Andrew Brisbo, the director of the Marijuana Regulatory Agency, said that medical marijuana companies will now pay license fees based on their size.

“We want to make the fees reasonably related to the size of the operation, so businesses are paying an equitable share,” said Brisbo.

Under the regulations currently in place, small cultivation operations can apply for a Class A license, which carries a fee of $10,000 once the grower has been approved by the state. Other medical marijuana businesses pay $66,000, up from the original $48,000 fee that went into effect in July 2018. Cannabis testing labs are not required to pay a license fee.

Under the new tiered system that goes into effect on October 1, the Class A growers license fee of $10,000 will not change. Other businesses will pay fees based on a three-tier system. New licensees will pay the middle-tier fee when they are

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