Section R. 420.510 - Product developmentRule 10.
(1) A cultivator or producer may engage in product development. No other marihuana business may engage in product development.(2) A cultivator may designate marihuana plants for product development. Any marihuana plants designated for product development count toward the authorized total amount of marihuana plants for a cultivator and must be tracked in the statewide monitoring system.(3) A producer may designate marihuana concentrate for product development. Any marihuana concentrates designated for product development must be tracked in the statewide monitoring system.(4) A licensee engaged in product development may submit his or her product development inventory to a laboratory for research and development testing in accordance with these rules.(5) Disciplinary action may not be taken against a licensee for failed research and development test results on his or her product development inventory.(6) A cultivator or producer may transfer its product development inventory to its employees for consumption. A licensee shall have product development inventory tested pursuant to R 420.30 and R 420.305 before transferring it to an employee. Any product development inventory that is not properly transferred to an employee must be destroyed pursuant to these rules. All product development inventory transferred to an employee counts toward the limitations in R 420.509(4) and R 420.509(5), as applicable.(7) A licensee shall record the transfer of product development inventory in the statewide monitoring system.(8) Product development inventory may not be consumed or used on the premises of the licensee.(9) A licensee shall not transfer or sell inventory designated for product development to a marihuana sales location, or to a marihuana customer, until after the inventory is tested pursuant to R 420.304 and R 420.305, and the test results in the statewide monitoring system indicate a passed full compliance testing.(10) Any product development inventory that is transferred to a marihuana sales location must be labeled in accordance with R 420.504.(11) A cultivator or producer may also engage in a research study with an entity duly authorized by the Drug Enforcement Administration to handle marihuana. A licensee's participation in a research study must be approved by the agency.(12) A licensee participating in an approved research study shall track all marihuana product involved in the research study in the statewide monitoring system.Mich. Admin. Code R. 420.510
2020 AACS; 2022 MR 5, Eff. 3/7/2022