Articles Posted in Distribution of Medical Marijuana

December 15 is a crucial day for the state of Michigan because on that day, the process for medical marijuana licensure will begin. The licenses that will be granted are going to change the face of economics in the state of Michigan but with the new prospect for economic growth comes potential pitfalls that some people are overlooking. The reality is with a conservative Medical Marijuana Board in place, the applicants are going to have to come from different walks of life and getting licensure will not be an easy task. To delve deeper into the issue, we examined how licensure will affect the cannabis community and what we found out was that there is a lot of misinformation that is being spread. Let’s break down some of the issues that we as litigators will have to face for our clients: Medical-Marijuana-MI-Voters-Say-Yes-MDCH-Says-Not-Yet-Pic-300x225

I. Can out of state financing come in?

The state of Michigan is expecting a huge influx of revenues for the new entity but there are issues that need to be addressed. Ravi Gurumurthy, a successful attorney from Cadillac, Michigan, was asked about the issue. Gurumurthy stated, “What people do not understand is that cannabis is still illegal on the federal level. More importantly, if someone thinks that they are just going to be able to obtain out-of-state financing, they need to think again. There are Commerce Clause implications that could literally destroy Operating Agreements and projections could be nothing more than useless words on a page. The whole goal here is to generate income for the legislature and the citizens of Michigan; the non-domiciled individual will not be able to just come in and make a strong investment and just walk away. Our state and the United States Constitution alike will be tested and while there are many positives on the horizon, obtaining those benefits will be present many cases of first impression for our judiciary.”