Michigan regulators will start accepting recreational marijuana business licenses as early as this September, officials said Tuesday.

It’s three months ahead of schedule for the state. Retail marijuana sales won’t happen right away as officials vet license applications.

The announcement comes on a new day for marijuana regulation in Michigan: the Bureau of Marijuana Regulation became the Marijuana Regulatory Agency Tuesday, April 30, as a result of an executive order from Governor Gretchen Whitmer.

The new Michigan Marijuana Regulatory Agency logo. (Courtesy | State of Michigan)

“I’m confident that the MRA is prepared to implement a fair and effective regulatory structure that protects Michiganders while providing an opportunity for businesses of all sizes to thrive,” Whitmer said in a statement. “Having a single state agency dedicated to administering all state laws relating to marijuana will allow Michigan to continue to lead the nation in this emerging industry.”

Tuesday also marks the transition of power over medical marijuana licensing from a board appointed by former Governor Rick Snyder over to state staff, also a result of Whitmer’s executive order.

Andrew Brisbo, who has commanded the launch of the regulated medical marijuana market for the past two years, will lead the $19.8 million Marijuana Regulatory Agency as its executive director.

The department will issue a preview of its recreational marijuana rules by June, officials said.

“It is our intention to have an initial set of industry ‘emergency rules’ in place this summer and to be prepared to begin accepting business applications this fall,” Brisbo said in a statement. “Giving local municipalities, other state agencies, and potential business owners enough time to plan and prepare will allow for a successful rollout of the new adult-use marijuana law.”

The emergency rules won’t allow for recreational marijuana sales until businesses are licensed. They’re intended to give prospective business owners guidance as they prepare their licensing applications, officials said. The new agency is prepared to accept license applications as early as September -- three months earlier than is legally required under the law voters passed in November 2018.

The bureaucratic shift comes as the medical marijuana market is in turmoil. Brisbo and state regulators have been unable to hold about 50 unlicensed medical marijuana shops to any deadline to become licensed. Numerous lawsuits against the state over the latest compliance deadline -- April 1 -- are still pending in the Court of Claims.

There’s a major divide in the industry between licensed medical marijuana businesses and caregivers, who the state has allowed to supplement the stock on provisioning center shelves. The tension played out in full force with counter-protests on the steps of the capitol building last week in Lansing.

Industry insiders are eager to see more medical marijuana businesses licensed as a result of Whitmer’s elimination of the licensing board.

In its two-year tenure, the board approved a total of 179 business licenses and denied 50. It also vetted 619 interested parties and denied one in four of them.

Now, analysts in the Marijuana Regulatory Agency will be responsible for approving licensing applications as they are completed. Any appeals to decisions will be ultimately decided by Brisbo.

"Moving forward, the system will be more efficient as agency analysts will not have to go through the added step of educating the board members on the results of an in-depth application process," said David Harns, spokesman for the agency.

There is no longer a backlog of license applications, state officials said, and staff are able to process them as they are received. There are still 409 active license applications pending with the department.

"Our goal is to set up a regulatory process that can adapt to the changing market conditions of an ever-evolving industry," Harns said. "The licensing team has moved a tremendous number of applications through the licensing process and has refined our workflow, resolving a large backlog of applications."

The agency plans to add more staff this year as the adult-use program launches. There are 102 full time workers at the agency now, and there is a budget for a total of 133 full time workers this year. By next year the agency will likely grow to 150 employees as the agency's budget grows to $22 million.

Without the licensing board -- which met in a public meeting once a month -- all licensing decisions will be made behind closed doors.

The Marijuana Regulatory Agency will be posting more information on its website than it has in the past about licensing approvals and denials, Harns said. Previously, only approved licenses were entered into the state’s database.

-- Amy Biolchini is the marijuana beat reporter for MLive. Contact her with questions, tips or comments at abiolch1@mlive.com. Read more from MLive about medical and recreational marijuana.