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Even the Best Laid Plans.....

A & K Enterprises Game Changing Appeal Date Set

An important event is coming up that could change the course of the cannabis industry in Michigan.

No, it’s not the election - although that is very important too.

A & K Enterprises applied for prequalification and was denied at the May 30 MMFLA Board meeting. The reason the Board gave for not approving the pre-qualification was that one of the founding members of A & K Enterprises, Jeff Angst, failed to disclose a minor marijuana charge from 37 years ago.  This charge was very similar to a traffic ticket in that it was a fine and then soon forgotten about. Once the Board notified Mr. Angst of the omission the application was quickly updated. On Sept. 27, A & K Enterprises will be able to present their case to the Board with the full expectation that the decision will be reversed.  

Why do A & K Enterprises and their lawyers from Cannabis Practice Group feel confident in their appeal?  

After A & K’s denial, a different applicant was approved for pre-qualification in spite of a very similar circumstance. The other applicant did not disclose an arrest that occurred in 1969.  Members of the Board said that an event which occurred that long ago would most certainly have been forgotten and that the failure to disclose that information should not be seen as a willful intent to deceive or fraudulently submit an application with false information.  

The emergency rules put in place leave many issues open to subjective decisions with wording such as ‘The board must determine if there was intent to deceive by failing to provide information.  If the board determines that the individual intentionally left certain information off the application, the applicant may appeal the decision before an Administrative Law Judge.’

This subjective behavior on the part of the board is concerning.  Using one incident that occurred over 30 years ago to assume what future behavior will occur is hard to comprehend.  The same Board members mentioned above had also said that an omission of an action, such as this, shouldn’t be considered in the determination of approval for pre-qualification.

The decision to open a medical marijuana facility in Michigan is not one that is taken lightly or with intent to deceive or do harm.  The initial output of funding just to begin the licensing process is quite high with the application fee alone at $6000 with additional fees afterward. An entity that is applying for licensing in Michigan right now is in it for the long haul and has a genuine interest in helping others.

These are some of the points that A & K Enterprises and the Cannabis Practice Group will be presenting at their hearing later this month.

Rose Jacobsen