Michigan Regulation and Taxation of Marihuana Act

On August 30, 2022, the Wayne County Circuit Court issued rulings denying injunctive relief to several cannabis companies that challenged the implementation of the City of Detroit’s adult-use cannabis ordinance (the “Ordinance”). In addition to denying motions for preliminary injunctions, the Court also dismissed the cases entirely. In doing so, the court reached several conclusions that are at odds with a full reading of Michigan’s cannabis statutes and rules. The opinions can be found here: Case No. 22-006534-CZ Jars Holding LLC et al v. City of Detroit; and here: Case No. 22-00594-CZ House of Dank et al v. City of Detroit.

Following these rulings, the City began accepting adult-use applications on September 1 and will accept applications until September 30. It has been a long and torturous route to get to this point.
Continue Reading Detroit Opens Adult-Use Retail Licensing After Victory in Court

On July 14, 2022, the Michigan Court of Appeals issued a published opinion in Cary Investments, LLC v City of Mount Pleasant—their second interpreting the application and licensing process within the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Cary Investments, LLC is of critical importance for all licensees and prospective licensees who may find themselves facing a competitive or limited municipal license application process, as it details when a denied applicant must file an appeal of a denied application versus when a licensing and application process can be properly challenged in a lawsuit. This case also aims to answer questions that many applicants, prospective applicants, municipalities, and circuit courts have faced concerning the competitive municipal licensing process required by Section 9(4) of the MRTMA.
Continue Reading Rapid Growth of the Adult-Use Market Is Underscored by New Opinion From Michigan Court of Appeals

On March 24, 2022, the Michigan Marijuana Regulatory Agency (MRA) announced record-breaking sales numbers in Michigan’s adult-use industry for the previous year. In just the second full year of licensed adult-use marijuana operations, the MRA reported that sales of adult-use marijuana exceeded $1.1 billion for fiscal year 2021.

Local governments are set to receive tens of millions of dollars thanks to the revenue-sharing provisions in the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”). The MRTMA establishes a 10% excise tax on the retail sale of adult-use marijuana. Excise tax revenues are dedicated to Michigan schools and roads, and a significant portion is distributed to local municipalities and counties that have adult-use marijuana retailers and microbusinesses in their jurisdictions.
Continue Reading Michigan Adult-Use Marijuana Sales Exceed $1B in 2021, Creating Millions of Dollars for Schools, Municipalities, and Roads

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

On December 7, 2020, the Oakland County Circuit Court issued a preliminary injunction in Fire Farm, LLC et al v City of Berkley et alCase 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