CBD Warning Letter

FDA sent warning letters dated March 28 to three companies marketing CBD products with what FDA describes as “egregious and unfounded claims that are aimed at vulnerable populations.” The companies which received warning letters sell hemp oil, CBD soft gels, CBD crystal isolate and other related products. Read More ›

FDA Statement on Cannabis-Containing and Cannabis-Derived Products

On April 2, 2019, the FDA further described its upcoming effort to regulate or at least discuss the regulation of cannabis-containing and cannabis-derived products. The FDA reiterated its power as given to it by the 2018 Farm Bill to regulate cannabis products and to ensure that they are used and sold safely in drugs, dietary supplements and conventional food. Read More ›

DEQ’s Local Leaders Series Educates Leaders on Potential DEQ Entrance Into Marijuana Cultivation and Processing Facilities

Recently, the Department of Environmental Quality (DEQ) held a “Local Leaders Series Webinar” on “Marijuana Cultivation and Processing Operations: Environmental Regulations and Concerns.” The webinar was well attended by over 500 people. The purpose was to educate local leaders on potential issues with marijuana facilities in their jurisdictions and to expose those leaders to some of the aspect of cultivation and processing operations for educational training. Read More ›

LARA/MDARD Issue Clarifications on CBD (Cannabidiol) and Industrial Hemp for Michigan

In a joint effort, the Department of Licensing and Regulatory Affairs (LARA) through the Bureau of Marihuana Regulations (BMR) and the Michigan Department of Agriculture (MDARD) issued a joint advisory in their attempt to clarify CBD (cannabidiol) and industrial hemp for Michigan.  Read More ›

Governor Whitmer Eliminates the Medical Marihuana Licensing Board and the Medical Marihuana Advisory Panel

Governor Gretchen Whitmer through Executive Order 2019-7 eliminates the Medical Marihuana Licensing Board and the Medical Marihuana Advisory Panel in reorganization of the marijuana program.

Today, Governor Whitmer issued Executive Order 2019-7 which reorganizes within the Department of Licensing and Regulatory Affairs (LARA) a new Type 1 Agency named Marijuana Regulatory Agency (MRA) with a gubernatorial appointed Executive Director. The Executive Director is subject to advice and consent of the Senate. The Executive Order will become effective April 30, 2019 unless disapproved by the Legislature. Read More ›

Michigan Changes Medical Marihuana Licensing Process to Facilitate Investment, Provide Path for Publicly Traded Companies

As one of the final acts of its 99^th Legislative Session, the Michigan Legislature passed amendments to the Medical Marihuana Facilities Licensing Act (MMFLA), as well as changes to the Marihuana Tracking Act. These amendments were signed by outgoing Governor Rick Snyder on December 28, 2018, with the MMFLA amendments effective January 1. The Tracking Act amendments took effect immediately. Read More ›

Unlicensed Michigan Medical Marihuana Facilities Must Close December 31

CLOSE OR BE DENIED!  In a major year-end development, the Michigan Court of Claims today dismissed the last of the cases that allowed unlicensed Michigan medical marihuana facilities to operate. All court orders preventing Michigan’s Department of Licensing and Regulatory Affairs (LARA) from setting a date by which the so-called temporary operators must close have now been dissolved—technically, that leaves in place the emergency rule by which unlicensed facilities must close by October 31, 2018, although the court had enjoined enforcement of that until its order was dissolved today. In an Advisory Bulletin issued late this afternoon, LARA announced that it would extend temporary operation until December 31, but no longer. Read More ›

Michigan Passes New Industrial Hemp Law, Sets Up Statutory Conflict

On the last day of the legislative session, the Michigan Legislature passed House Bills 6330, 6331, and 6380 to create the Industrial Hemp Research and Development Act (IHRDA). If signed by the Governor, IHRDA will require the registration of industrial hemp growers and processors as a prerequisite to grow or sell industrial hemp. Oversight authority is given to the Michigan Department of Agriculture and Rural Development (MDARD). To register, growers and processors would be required to submit basic identification information—including the identities of owners holding more than 10% equity in the applicant—and the location of their business. An annual application fee is also required: $100 for growers and $1,350 for processors. Applications may be denied for such reasons as the applicant demonstrating an unwillingness to comply with regulations or making false statements to MDARD. Failure to comply with the IHRDA may result in suspension or revocation of a registration, destruction of product, or a fine; allowing the taking of a falsified sample is a felony. IHRDA is set to take effect on January 15, 2019. Read More ›

Industrial Hemp – Now Legal and Unregulated in Michigan

On November 6, 2018, Michigan voters approved Proposal 1 and made Michigan the twelfth U.S. jurisdiction to legalize recreational marijuana. The Michigan Regulation and Taxation of Marihuana Act (MRTMA) went into effect December 6. What has been lost in all the smoke from the past several weeks is how MRTMA impacts the regulation of industrial hemp. Read More ›

The STATES Act, Rooted in Federalism, Would Address Systemic Risk in Cannabis-Related Banking

Coauthored by Dykema Summer Associate Shaun Sullivan-Towler.

For financial institutions interested in banking state-legal marijuana businesses, 2018 has been a rollercoaster. In January, Attorney General Jeff Sessions rescinded the Obama-era policy of lenient federal enforcement, creating new confusion for banks and credit unions about the future of marijuana-related banking. Many feared that the Financial Crimes Enforcement Network (FinCEN) would withdraw or amend its guidance as well, thereby eliminating the only federal guidance directed to financial institutions on banking marijuana businesses. But FinCEN has since been clear that its guidance remains in place and announced that, as of March 31, 2018, a total of 411 banks and credit unions now provide services to marijuana-related businesses, up from 365 a year ago. Read More ›