Be Compliant –Message to Unlicensed MMFLA Applicants
Today’s Michigan LARA MMFLA Licensing Review Board Meeting had a strong closing message. Businesses who are in the licensing process need to be compliant in all respects in order to have their license approved.
Michigan’s MMFLA licensing process has seemed to be delayed over the last several months, with the first licenses approved today. The ending message from today’s Board approval meeting was that delays will continue to happen until potential licensees are fully compliant. Site visits and inspections done in the pre-licensing stage are to determine if the applicant is compliant. Compliance includes health and safety requirements, testing requirements, inventory management, and ensuring proper business practices are in place. An applicant should not wait for the inspection to result in deficiencies in order for changes to take place. Instead, an applicant should proactively ensure regulations and business best practices are in place.
Their business needs to be “ready to go”.
Operating Provisioning Centers also need to ensure products have accurate test results available. Operating applicants should have the processes in place as if fully licensed. This may also include a METRC compliant 3rd party integration software, as appropriate for the business.
The delays in moving through the licensing process are not only the result of ensuring a thorough review takes place. Waiting for applicants to respond to requests or become compliant have also delayed the process.
Operating provisioning centers should also charge Sales and Withholding taxes, per a Department of Treasury notice earlier this year. This is effective as of January 1, 2018. Businesses can find more information at Michigan Department of Treasury Online.
Many applicants we speak with have made a prior decision to not take full compliance actions until absolutely necessary. Reasons may include cost, advice they received, or making the determination that full MMFLA rules do not apply to them yet since they remain unlicensed. Regardless of reasoning, an applicant cannot expect to get their MMF License until fully compliant.
Another strong takeaway is if applicants have not submitted part two of their MMFL application by now, it is highly unlikely they will be licensed before the September 15, 2018 deadline. Businesses continuing to operate past September 15th could potentially risk MMF License approval.
There are many ways LC Solutions Michigan PLLC can help applicants become compliant with their accounting and record keeping processes, internal financial controls, and business best practices. Please contact us here for more information.