The Michigan Marijuana Regulatory Agency (MRA) recently issued a statement regarding the Proof of Financial Responsibility Insurance Requirements for Medical Applicants and Licenses will take effect March 30.
As background, Public Act 160 and 161 of December 2021, which took effect on December 27, 2021, now requires licensees of medical marijuana facilities to have proof of financial responsibility.
According to Rule 10, of the rules set forth by the MRA, the following is required to show proof of financial responsibility based on your application type.
- Before a license is issued or renewed, the licensee or renewal applicant shall file a proof of financial responsibility for liability for bodily injury on the form prescribed in section 408 of the marijuana act for an amount not less than $100,000.00. If the proof under this sub-rule is a bond, the bond must be in a format acceptable to the department.
- A renewal applicant or licensee shall carry premise liability and casualty insurance for an amount not less than $100,000.00. An applicant shall provide proof of premises liability insurance to the department no later than 60 days after a state operating license is issued or renewed.
- A secure transporter shall show proof of auto insurance, vehicle registration, and registration as a commercial motor vehicle as applicable for any transporting vehicles used to transport marijuana product as required by the act and these rules.
When the laws take effect on March 30, 2022, the MRA will update the application to align with the requirements of the law. They recommend checking the website for the most up to date applications.
We at UHY have a dedicated team of accounting professionals that specialize in the cannabis industry. If you have any questions about this article or any other cannabis related accounting topics, please contact us today.
Have a question?
Please complete this form to hear from one of our dedicated cannabis professionals