Updated: Dec 10, 2020
The MRA has rolled out new medical marijuana facility applications. The changes are minor,
but anyone who has been drafting an application, but not yet submitted it to the state, will need to redo it. These are some of the biggest changes you should be aware of: look to see how your application has been impacted by the new requirements.
First, the board has added a new document requirement, Attestation F. This form confirms your tax compliance. For each entity and individual submitting an application, an Attestation F needs to be signed and sent to the Department of Treasury. Then a treasury designee will sign and return the form (to the return address you provided) once they confirm there are no delinquent payments and that all sales and other tax obligations have been satisfied. One issue is that the state does not currently have a way to satisfy this requirement for out of country applicants who do not have social security numbers: Attestation F requires a social security number to obtain a tax clearance. We have brought this to the attention of the Marijuana Regulatory Agency and they are coming up with a solution.
Disclosure 1 has been expanded for both entity applications and individual applications and now asks for a list of other business interests. This disclosure is required regardless of whether or not the other business has to do with marijuana. Entity applicants did not previously have to provide this information so this is new. Individuals used to provide answers to this question via a series of “Base Questions,” which have apparently been incorporated into the application as they do not appear to be required anymore.
Most importantly however, the applications no longer require financial accounts to be listed in the application or financial statements to be disclosed! Property, even if it is being used to capitalize, does not need to be listed in the application anymore. Moreover, tax returns are not required anymore and W2s/1099s/K1s are only required from the most recent year, if they exist.
The Disclosure regarding litigation history has also been changed. Previously, the application
asked in a series of questions whether there was any “internal misconduct” or an “ultimate
decision” with an adverse impact. These questions were confusing to some, so they have been traded out for a single question that asks the individual/entity to disclose any charges and government investigations related to their business operations.
While many people may need to redraft their applications, these changes will ultimately make
the application process quicker and easier. Do not waste time, though, by filling out and
submitting the wrong application!
If you need help looking over your application to see how these changes will affect you and your business, do not hesitate to reach out to us at (313) 446-2235 anytime!