For us Lions fans, Calvin Johnson was always a shining light among a disappointing football franchise. He was consistently making big-time plays but never experienced any super bowl appearances with the Lions. I’m sure the team’s performance was a key reason why he decided to retire at the age of 30. It appears after his retirement in 2016, he has been working on entering the cannabis industry in his team’s home state. More specifically, he wants to operate in the town of Webberville. He submitted his application back in December. This was very early on, when the state had just started accepting them.
At first the state had denied his application. The reason for his denial was the presence of unpaid traffic tickets. This minor issue was quickly handled by Johnson, and now he is officially pre-approved to operate in the state. However, receiving a pre-approval is not the same thing as being licensed to operate. The state of Michigan receives the original application and licensing fees from potential businesses. After that, it is up to the local government to grant final approval to someone. So Johnson will have to wait until the local board from Webberville gives him the thumbs up to celebrate. Communities that do not want cannabis businesses operating in their jurisdiction can vote to ban them. Even towns and cities that allow them to operate, can still choose to approve or deny specific applications.
I’m sure Calvin Johnson is thrilled to hear about his pre-approval for a number of reasons. The barriers to entry for new businesses in the industry are extremely high. Especially for someone who does not currently own a medical marijuana facility. Applicants have to be applying for a specific location, so they must already own the property they are applying for. That is very risky because if denied, all the costs to obtain that property would have been for nothing. Applicants must also pay for thousands of dollars in licensing fees when they submit their information. Obviously, none of this is a problem for an athlete like Johnson. However it would stop many potential business owners.
Calvin Johnson is clearly looking to vertically integrate his medical cannabis operation. He didn’t just apply for a license to sell it. Instead, he applied for a license to cultivate, process, and sell it at the retail level. The state requires a separate license for each step in the process, leading many to focus on a specialized approach. He wants his business to be as self-sustainable and profitable as possible. He has a large amount of available investment money, so it only makes sense to grow and process your own supply. Growers with a high-quality product will definitely be charging a steep wholesale price in the beginning stages of legalization. Being pre-approved this early has Calvin in a great position to establish roots in the newly regulated industry.
Currently, there are several major issues facing the newly regulated medical marijuana industry in Michigan. There have been issues in the past with local ordinances causing many businesses owners to close down shop, but the new regulations are putting a serious strain on the industry as a whole. Very few retail locations have been given a license by the state despite a massive amount of submitted applications. Now anyone without a license that continues to operate may face criminal charges and lose the chance of ever obtaining one in the future. Hundreds of these stores have been operating for years under the approval of their local government. Patients and dispensaries never had any issues existing in an unregulated environment. Marijuana has always been unregulated throughout history, like most things that naturally exist. The argument behind regulation is that patients will know where their medicine is coming from and that it’s not contaminated. Realistically, all the regulations are doing is making it harder for the dispensaries that have been approved to serve nearly 300,000 patients.
Testing for contaminations has been available for patients and dispensaries in Michigan for over 5 years now. PSI labs and Iron labs both offer testing when it comes to potency and the presence of mold or pesticides. One of the dispensaries that I had been using before it closed its doors already mandated all products to be tested by their vendors. So the real reason for regulation is so that the government can not only tax it but also control how and where provisioning centers operate. Not only are dispensary owners and their employees getting screwed while the state takes its time licensing, but patients are also affected. People are piling into the few remaining stores and wait times are becoming outrageous. It doesn’t even matter what day or time of day you decide to pick up some medicine. To make the problem even worse, the state is requiring that the approved dispensaries only obtain products from approved cultivators/processors. Word is spreading that shortages are coming very soon because there are nowhere near enough approved growers to supply the current demand. People who are dependent on these shops for access are probably in a panicked state right now. Judging by the number of people I have seen entering the dispensary, there are a lot of people who don’t have caregivers or any black market contacts.
Many patients including myself, strictly go to these stores for the processed forms of the plant that are harder to find at an affordable price. They always seem to have really great deals on edibles, cartridges, and concentrates. The top quality buds are priced higher than what most growers are offering it for. Plenty of low-mid quality buds can be purchased at a great price for the budget smokers who aren’t as interested in higher potency and stronger flavor. After my last few visits, I think I will simply go without the other concentrated forms of the plant for now as prices will likely rise as the available legal supply dwindles. Waiting for more than 30 minutes just to get in the bud room kinda turned me off as well. We will just have to hope the state starts handing out more licenses in a hurry, or the supply issues will continue to get worse.
Across the great lakes state, cultivation facilities and dispensaries are facing a September 15th deadline to either be approved and licensed by the state or shut down operations. Those who have gained approval from their local officials and have already submitted their applications to the state are extremely worried. The Department of Licensing and Regulatory Affairs (LARA) began accepting applications in December of 2017, but the process to approve businesses is taking a very long time. There have already been two previous deadlines set that were extended before the fast-approaching September 15 cutoff. It seems that the government was not prepared to handle the overwhelming number of applications.
Currently, only 16 applications were given approval out of the 637 submitted for one of the four license types: cultivation, retail, transportation, and processing. Processing refers to businesses that will purchase cannabis from growers and create infused products or extracts like Rick Simpson oil. There seems to be a small number of resources being devoted to inspecting and approving licenses. Luckily, local officials are concerned for patients access to medicine and have been reaching out to Snyder asking for an extension. It’s equally important to support the cannabis pioneers that have invested their life savings into provisioning centers in order to legally help patients find relief. Now, dispensary employees are left to question if they will have their paycheck coming next month or if they will find themselves unemployed. It is crucial that the state responds back quickly so these people aren’t forced to abandon their investments and careers in order to pursue other sources of income.
It almost seems like the officials enjoy causing problems among the medical cannabis community since they can no longer arrest those involved. Why even set a deadline at all for these businesses to get approved? Deny and approve the licenses as they come in and if they have been approved by their local city/township then they should be able to operate until they are given a response. It’s bad enough they are picking and choosing which dispensaries can and can’t operate as they please. Shutting them down before they even get a chance to be evaluated because people created a random date is just wrong. No other industry is facing the same level of regulations and hoops to jump through in order to legally operate. It’s just another example of unnecessary government regulation. The number of stores should be determined by the levels of supply and demand and as a result of certain companies gaining competitive advantages over one another.
There should be some regulation when it comes to advertising and locating next to schools, but not with arbitrary date setting. These businesses would risk losing the chance to secure a license in the future if they operate past the September 15th deadline without being approved. I can’t imagine the level of stress these owners are dealing with right now. They only have two options if the deadline is not extended. Either close temporarily and pray for a license while still paying overhead costs, or close permanently and exit the business. Staying open and risking being raided/closed shouldn’t be considered a valid third option. Criminal charges and no possibility of entering the industry would be the worst possible outcome for a successful marijuana entrepreneur. The next coming weeks are going to be full of uncertainty until a solution is offered by the state.