Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Marijuana Regulatoty Agency › MARIHUANA OPERATIONS › Section R. 420.201 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) As used
				in these rules:
(a) "Acts" refers to the
				medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to
				333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL
				1, MCL 333.27951 to 333.27967, when applicable.
(b) "Administrative hold" means a status
				given to marihuana product by the agency during an investigation into alleged
				violations of the acts and these rules. This status includes no sale or
				transfer of the marihuana product until the hold is lifted.
(c) "Agency" means the marijuana regulatory
				agency.
(d) "Applicant" means a
				person who applies for a marihuana license, subject to paragraphs (i) and (ii)
				of this subdivision:
(i) For purposes of this
				definition, an applicant includes a managerial employee of the applicant, a
				person holding a direct or indirect ownership interest of more than 10% in the
				applicant, and the following for each type of applicant:
(A) For an individual or sole proprietorship:
				the proprietor and spouse.
(B) For
				a partnership and limited liability partnership: all partners and their
				spouses.
(C) For a limited
				partnership and limited liability limited partnership: all general and limited
				partners, not including a limited partner holding a direct or indirect
				ownership interest of 10% or less who does not exercise control over or
				participate in the management of the partnership, and their spouses.
(D) For a limited liability company: all
				members and managers, not including a member holding a direct or indirect
				ownership interest of 10% or less who does not exercise control over or
				participate in the management of the company, and their spouses.
(E) For a privately held corporation: all
				corporate officers or persons with equivalent titles and their spouses, all
				directors and their spouses, all stockholders, not including those holding a
				direct or indirect ownership interest of 10% or less, and their
				spouses.
(F) For a publicly held
				corporation: all corporate officers or persons with equivalent titles and their
				spouses, all directors and their spouses, all stockholders, not including those
				holding a direct or indirect ownership interest of 10% or less, and their
				spouses.
(G) For a multilevel
				ownership enterprise: any entity or person that receives or has the right to
				receive more than 10% of the gross or net profit from the enterprise during any
				full or partial calendar or fiscal year.
(H) For a nonprofit corporation: all
				individuals and entities with membership or shareholder rights in accordance
				with the articles of incorporation or the bylaws and their spouses.
(I) For a trust: trustees, any individual or
				body able to control and direct the affairs of the trust, and any beneficiary
				who receives or has the right to receive more than 10% of the gross or net
				profit of the trust during any full or partial calendar or fiscal year and
				their spouses.
(ii) For
				purposes of this definition, an applicant does not include:
(A) A person who provides financing to an
				applicant or licensee under a bona fide financing agreement at a reasonable
				interest rate.
(B) A franchisor who
				grants a franchise to an applicant, if the franchisor does not have the right
				to receive royalties based upon the sale of marihuana or marihuana-infused
				products by the applicant who is a franchisee. Nothing in this subrule shall be
				construed to preclude a franchisor from charging an applicant who is a
				franchisee a fixed fee. As used in this definition, the terms "franchise,"
				"franchisor," and "franchisee" have the meanings set forth in section 2 of the
				franchise investment law, 1974 PA 269, MCL 445.1502.
(C) A person receiving reasonable payment for
				rent on a fixed basis under a bona fide lease or rental obligation.
(D) A person receiving reasonable payment
				under a licensing agreement or contract approved by the agency concerning the
				licensing of intellectual property including, but not limited to, brands and
				recipes.
(e)
				"Batch" means all marihuana product of the same variety that has been processed
				together and exposed to substantially similar conditions throughout
				processing.
(f) "Building" means a
				combination of materials forming a structure affording a facility, an
				establishment, or shelter for use or occupancy by individuals or property.
				Building includes a part or parts of the building and all equipment in the
				building. A building does not include a building incidental to the use for
				agricultural purposes of the land on which the building is located.
(g) "Bureau of fire services" or "BFS" means
				the bureau of fire services in the department of licensing and regulatory
				affairs.
(h) "Common ownership"
				means 2 or more state licenses or 2 or more equivalent licenses held by 1
				person under the Michigan Regulation and Taxation of Marihuana Act.
(i) "Cultivator" refers to both a grower
				under the medical marihuana facilities licensing act and a marihuana grower
				under the Michigan Regulation and Taxation of Marihuana Act.
(j) "Designated consumption establishment"
				means a commercial space that is licensed by the agency and authorized to
				permit adults 21 years of age and older to consume marihuana products at the
				location indicated on the state license.
(k) "Employee" means a person performing work
				or service for compensation. "Employee" does not include individuals providing
				trade or professional services who are not normally engaged in the operation of
				a marihuana business.
(l)
				"Equivalent licenses" means any of the following held by a person:
(i) A marihuana grower license of any class
				issued under the Michigan Regulation and Taxation of Marihuana Act and a grower
				license, of any class, issued under the medical marihuana facilities licensing
				act.
(ii) A marihuana processor
				license issued under the Michigan Regulation and Taxation of Marihuana Act and
				a processor license issued under the medical marihuana facilities licensing
				act.
(iii) A marihuana retailer
				license issued under the Michigan Regulation and Taxation of Marihuana Act and
				a provisioning center license issued under the medical marihuana facilities
				licensing act.
(iv) A marihuana
				secure transporter license issued under the Michigan Regulation and Taxation of
				Marihuana Act and a secure transporter license issued under the medical
				marihuana facilities licensing act.
(v) A marihuana safety compliance facility
				license issued under the Michigan Regulation and Taxation of Marihuana Act and
				a safety compliance facility license issued under the medical marihuana
				facilities licensing act.
(m) "Final form" means the form a marihuana
				product is in when it is available for sale by a marihuana sales
				location
,
not including consumer packaging. For marihuana products
				intended for inhalation, final form means the marihuana concentrate in an
				e-cigarette or a vaping device.
(n)
				"Immature plant" means a nonflowering marihuana plant that is no taller than 8
				inches from the growing or cultivating medium and no wider than 8 inches
				produced from a cutting, clipping, tissue culture, or seedling that is in a
				growing or cultivating medium or in a growing or cultivating
				container.
(o) "Inactive
				ingredients" means binding materials, dyes, preservatives, flavoring agents,
				and any other ingredient that is not derived from the plant
Cannabis
				sativa L
.
(p) "Laboratory"
				refers to both a safety compliance facility under the medical marihuana
				facilities licensing act and a marihuana safety compliance facility under the
				Michigan Regulation and Taxation of Marihuana Act.
(q) "Limited access area" means a building,
				room, or other contiguous area of a marihuana business where marihuana is
				grown, cultivated, stored, weighed, packaged, sold, or processed for sale and
				that is under the control of the licensee.
(r) "Marihuana business" refers to both a
				marihuana facility under the medical marihuana facilities licensing act and a
				marihuana establishment under the Michigan Regulation and Taxation of Marihuana
				Act.
(s) "Marihuana business
				location plan" means a marihuana facility plan under the medical marihuana
				facilities licensing act, or a marihuana establishment plan under the Michigan
				Regulation and Taxation of Marihuana Act, or both.
(t) "Marihuana customer" refers to a
				registered qualifying patient or registered primary caregiver under the medical
				marihuana facilities licensing act, or an individual 21 years of age or older
				under the Michigan Regulation and Taxation of Marihuana Act, or both.
(u) "Marihuana establishment" means a
				marihuana grower, marihuana safety compliance facility, marihuana processor,
				marihuana microbusiness, marihuana retailer, marihuana secure transporter, or
				any other type of marihuana-related business licensed by the agency under the
				Michigan Regulation and Taxation of Marihuana Act.
(v) "Marihuana event organizer" means a
				person licensed to apply for a temporary marihuana event license under these
				rules.
(w) "Marihuana facility"
				means a location at which a licensee is licensed to operate under the medical
				marihuana facilities licensing act.
(x) "Marihuana license" means a state
				operating license issued under the medical marihuana facilities licensing act,
				or a state license issued under the Michigan Regulation and Taxation of
				Marihuana Act, or both.
(y)
				"Marihuana product" means marihuana or a marihuana-infused product, or both, as
				those terms are defined in the acts unless otherwise provided for in these
				rules.
(z) "Marihuana sales
				location" refers to a provisioning center under the medical marihuana
				facilities licensing act or a marihuana retailer, marihuana microbusiness, or
				class A marihuana microbusiness under the Michigan Regulation and Taxation of
				Marihuana Act, or both.
(aa)
				"Marihuana tracking act" means the marihuana tracking act, 2016 PA 282, MCL
				333.27901 to 333.27904.
(bb)
				"Marihuana transporter" means a secure transporter under the medical marihuana
				facilities licensing act or a marihuana secure transporter under the Michigan
				Regulation and Taxation of Marihuana Act, or both.
(cc) "Medical marihuana facilities licensing
				act" or "MMFLA" means the medical marihuana facilities licensing act, 2016 PA
				281, MCL 333.27101 to 333.27801.
(dd) "Michigan Medical Marihuana Act" means
				the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to
				333.26430.
(ee) "Michigan
				Regulation and Taxation of Marihuana Act" or "MRTMA" means the Michigan
				Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to
				333.27967.
(ff) "Producer" refers
				to both a processor under the medical marihuana facilities licensing act and a
				marihuana processor under the Michigan Regulation and Taxation of Marihuana
				Act.
(gg) "Proposed marihuana
				business" means a proposed marihuana establishment under the Michigan
				Regulation and Taxation of Marihuana Act or a proposed marihuana facility under
				the medical marihuana facilities licensing act, or both.
(hh) "Records of formulation" means the
				documentation that includes at a minimum: the ingredients, recipe, processing
				in order to be shelf stable, Certificates of Analysis for any ingredient used,
				and description of the process in which all ingredients are combined to produce
				a final form.
(ii) "Restricted
				access area" means a designated and secure area at a marihuana business where
				marihuana products are sold, possessed for sale, or displayed for
				sale.
(jj) "These rules" means the
				administrative rules promulgated by the agency under the authority of the
				medical marihuana facilities licensing act, the marihuana tracking act, the
				Michigan Regulation and Taxation of Marihuana Act, and Executive Reorganization
				Order No. 2019-2, MCL 333.27001.
(kk) "Same location" means separate marihuana
				licenses that are issued to multiple marihuana businesses that are authorized
				to operate at a single property but with separate business suites, partitions,
				or addresses.
(ll) "Source
				documentation" means an original document that contains the details of a
				marihuana business transaction.
(mm) "Stacked license" means more than 1
				marihuana license issued to a single licensee to operate as a Class C grower as
				specified in each license at a marihuana business under the medical marihuana
				facilities licensing act, or under the Michigan Regulation and Taxation of
				Marihuana Act, or both.
(nn) "Tag"
				or "RFID tag" means the unique identification number or Radio Frequency
				Identification (RFID) issued to a licensee by the statewide monitoring system
				for tracking, identifying, and verifying marihuana plants, marihuana products,
				and packages of marihuana product in the statewide monitoring system.
(oo) "Temporary marihuana event license"
				means a state license held by a marihuana event organizer under the Michigan
				Regulation and Taxation of Marihuana Act, for an event where the onsite sale or
				consumption of marihuana products, or both, are authorized at the location
				indicated on the state license during the dates indicated on the state
				license.