Existing marijuana dispensaries and other marijuana-related businesses in the application process for state licenses are still subject to a June 15 deadline to have a license or close shop, despite a slower-than-expected approval process at the state level.

In 2016, Michigan lawmakers passed legislation to legalize and regulate medical marijuana businesses like dispensaries, which had previously operated in a gray area. The law authorized five types of medical marijuana businesses: growers, processors, transporters, compliance facilities and provisioning centers.

When determining how to incorporate Michigan's operating dispensaries and medical marijuana businesses into a regulatory format, the Bureau of Medical Marihuana Regulation, or BMMR, determined they could stay open on a temporary basis until June 15. At that point, the idea was they either had to have a license approved or cease operation.

That timeline got more complicated as applications flowed in and bureau staff began the review process, BMMR Director Andrew Brisbo told reporters this week.

"We obviously are aware of the concerns and are having internal conversations about how we approach them," Brisbo said.

Applicants are subject to a lengthy investigation to determine their eligibility for a license, including criminal background checks for everyone involved in the business and investigations into their financial history and character integrity. That equates to a lot of paperwork - at the bureau's headquarters, Brisbo displayed an application that filled an entire table with file folders and boxes.

After the investigation is complete, the applicants are subject to a facility review to determine if the building housing the business is up to code.

Currently, 14 staffers are processing about 500 applications in the order they were received, meaning businesses subject to the June 15 deadline aren't being given priority.

State officials said they weren't prepared for the number of applications that came in so close to the Feb. 15 deadline for existing facilities to apply - they were anticipating many applications to come in when the application process opened in December, but the majority of the applications came in the last few days before the window for existing marijuana businesses closed.

Brisbo said the bureau doesn't plan to take action against people impacted by the June 15 deadline, but there is still a risk for open dispensaries seeking licensure after that date - the Medical Marihuana Licensing Board could declare them ineligible for a license for operating illegally.

"The licensing board can look at the rules however they see fit," Brisbo said. He added the June 15 date was initially meant to clear ambiguity: "We wanted to create an opportunity for those businesses to make the transition."

Brisbo didn't say whether the bureau was looking to change the June 15 deadline in its rules. The BMMR does plan to ask for a six-month extension to its existing emergency rules until permanent rules are set - asked whether this could be a chance to change the deadline, Brisbo said that would be up to the Governor and the state legislature.

The bureau initially released its emergency rules in December 2017.

Anna Heaton, spokesperson for Gov. Rick Snyder, said the Governor would only act on extending the emergency rules if there is a formal request to do so.

"For now, he will await a recommendation from them that outlines the applications under consideration, any backlog, and any other pertinent information, before making a decision," she said.

The Medical Marihuana Licensing Board has yet to fully approve any licenses for marijuana dispensaries or associated businesses. In April, the board approved some pre-qualifications for marijuana businesses, and three board meetings are scheduled between now and June 15.

The board also turned down two applicants - Greentransport Services, LLC and Raymond Oatman - after identifying problems with their applications. Those applicants are now eligible to engage in an appeal process.

One other applicant, Straw Hat, Inc., was tabled for consideration after board members expressed concerns over the application.

As of April 27, 459 applications have been submitted for pre-qualification, and 175 facility license applications have been submitted.