On February 15, 2022, the Michigan House Committee on Regulatory Reform considered HB 5706. The Michigan Regulation and Taxation of Marihuana Act (“MRTMA”) does not address how Michigan’s Native American tribes participate in Michigan’s adult-use marijuana industry. HB 5706 creates a pathway for state-licensed and tribally licensed establishments to purchase from and sell to one another.
Continue Reading Michigan Legislature Addresses Native American Tribes in New Marijuana Legislation
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Michigan Regulator’s Odd Limit on Grow Licenses
When it comes to cannabis licenses, every state has its own statutory and regulatory quirks that create traps for the unwary. In Michigan, one is the Marijuana Regulatory Agency’s (“MRA’s”) strained interpretation of the limit on the number of grower licenses a person may hold under the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”).
Section 9 of MRTMA prohibits the MRA from issuing a license if doing so would mean that “a person who holds an ownership interest in the marihuana [business] . . . will hold an ownership interest in more than 5 marihuana growers.” MRTMA defines the term “marihuana grower” as “a person [or entity] licensed to cultivate marihuana.” But in applying Section 9’s limitation, MRA interprets the term “grower” to mean a singular grow license.
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Growing Cannabis Industry Attracts Increased Government Enforcement
In the past few years, recreational marijuana legalization has increased, with New York becoming the most recent state to enact legislation. The growth has created substantial revenue opportunities for companies that have invested in preparing to participate in these new regulatory frameworks. Along with that nationwide expansion, though, comes greater government scrutiny. All current and future marijuana industry participants must stay aware of specific areas where the government is focusing its enforcement efforts and develop appropriate compliance procedures.
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Court Enjoins City’s Competitive Process for Selecting Adult Use License Applications
On December 7, 2020, the Oakland County Circuit Court issued a preliminary injunction in Fire Farm, LLC et al v City of Berkley et al, Case No. 2020-184754-CZ, enjoining the City of Berkley, Michigan from issuing licenses to marijuana establishments pursuant to the Medical Marihuana Facilities Licensing Act, MCL 333.27101-333.27801 (“MMFLA”), or the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951-333.27967 (“MRTMA”), due to the likelihood that the City’s process for scoring and awarding licenses fails to comport with the requirements of MRTMA.
Continue Reading Court Enjoins City’s Competitive Process for Selecting Adult Use License Applications
Maine Residents Seek to Have Federal Court Declare Maine’s Residency Requirement Constitutional
Following up on our previous posts (here and here) regarding lawsuits by non-residents challenging the residency requirement in Maine’s marijuana licensing law as violating the Dormant Commerce Clause, a recent lawsuit filed by residents of Maine is asking the District Court of Maine to declare that the requirement does not violate the Dormant Commerce Clause.
Continue Reading Maine Residents Seek to Have Federal Court Declare Maine’s Residency Requirement Constitutional