Michigan Regulators Deny First Two MMJ Industry Licenses

The first two applications for Michigan’s new medical cannabis business licenses – one dispensary and one transport service – were both rejected by the state cannabis licensing board, the Detroit Free Press reports. The vote was 2-2 and the fifth member of the board was absent and couldn’t break the tie.

The applications were for pre-approval, meaning they have filed an application with the state but have not gotten local approval.

The owners of both prospective companies were found by the board to have previous misdemeanors they did not disclose to the board; and while the charges were not enough to immediately disqualify their application, it highlights the importance of candor on the applications. Both companies are expected to return to the board in April for reconsideration.

Tim McGraw, the dispensary applicant who was charged with misdemeanor cannabis possession in 2012, told the Free Press that the charge – his first offense – had been removed from his record after he had completed probation and he hadn’t considered it would show up on the state background check.

“Quite honestly, have you seen the application, it’s extremely confusing. I wasn’t trying to hide it. It’s a learning process for everyone. I guess they were trying to make us the poster children for the licenses and I understand that.” – McGraw to the Free Press

So far, Michigan has received a total of 411 applications for pre-approval. Another 141 have submitted complete applications, including approval from the communities in wish they wish to operate.

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