Proposed New Michigan Cannabis Rules

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Takeways

  • HB 4963 would require licensees to pay for cannabis products at the time of transfer.
  • HB 4964 and related bills would create a new Industrial Hemp Processing Act and ban intoxicating or converted cannabinoids.
  • Passage appears likely, but the final impact will depend on legislative compromise and regulatory enforcement.

On Tuesday, September 16, the Chairman of Michigan’s House Regulatory Reform Committee, Representative Joseph Aragona, introduced a package of bills to address two significant problems confronting Michigan’s cannabis industry—licensees defaulting on payments and unregulated intoxicating hemp products being sold throughout the state. (This is part two of our examination of this issue in Michigan; part one can be found here, and we’ve addressed hemp issues in other states and at the federal level elsewhere on the Cannabis Law Blog.)Continue Reading Michigan House Looks to Solve Cannabis Industry Issues, Addressing Payment Defaults and Hemp Regulation

Takeaways

  • The proposed 32% wholesale tax on cannabis products could significantly raise prices for consumers, making it more challenging for an already struggling industry to maintain profitability.
  • The assessment of a wholesale tax would most likely radically restructure industry business practices.
  • Potential expansion of the Tobacco Products Tax Act (“TPTA”) would force the Marijuana industry to adapt to an entirely new regulatory and enforcement scheme, all while the industry is dealing with a comprehensive rewrite of the rules of the Cannabis Regulatory Agency.

On February 10, 2025, Michigan Governor Gretchen Whitmer released her “Mi Road Ahead” Plan to “fix the damn roads”—echoing her 2018 campaign slogan. To the consternation and fear of the cannabis community, the Mi Road Ahead Plan proposes creating a new 32% wholesale tax on cannabis products.Continue Reading Breaking Down Governor Whitmer’s Game-Changing Proposed New Wholesale Tax on the Michigan Marijuana Industry

This month, the Michigan Board of Canvassers approved a ballot initiative that asks the people of Michigan to decriminalize certain psychedelic plants and fungi. Titled the “Michigan Decriminalization of Psilocybin Mushrooms and Other Plants and Fungi Initiative,” (the “Initiative”) the proposal seeks to have Michigan join the ranks of states that have opened up their laws to allow for the use of naturally occurring psychedelics, sometimes called entheogens, and also proposes some interesting changes to the state’s drug laws that are not necessarily limited to psychedelic plants and fungi. The full text of the Initiative can be found here.

Continue Reading The Michigan Decriminalization of Psilocybin Mushrooms and Other Plants and Fungi Initiative Has Been Approved For Circulation As A Ballot Initiative

On Monday, September 27, Michigan’s Marijuana Regulatory Agency will hold a public hearing on draft administrative rules updating all of the State’s current cannabis-related rules other than for hemp. The deadline to provide written public comments is that Monday at 5:00 PM.

In a six-part series, we outline the substantive proposed changes in each of ten draft rule sets and then will conclude with coverage of next week’s hearing. Today, we cover the rule sets for Marihuana Hearings (Rules 420.701 to 420.709), Marihuana Disciplinary Hearings (Rules 420.801 to 420.808a), and the brand new proposed set for Marihuana Declaratory Rulings (Rules 420.821 to 420.823). Rules without substantive changes are not included.Continue Reading Proposed New Michigan Cannabis Rules V: Hearings, Disciplinary Proceedings, And Declaratory Rulings

On Monday, September 27, Michigan’s Marijuana Regulatory Agency will hold a public hearing on draft administrative rules updating all of the State’s current cannabis-related rules other than for hemp. The deadline to provide written public comments is that Monday at 5:00 PM.

In a six-part series, we outline the substantive proposed changes in each of ten draft rule sets and then will conclude with coverage of next week’s hearing. Today, we cover the rule sets for Marihuana Sale or Transfer (Rules 420.501 to 420.510) and Marihuana Employees (Rules 420.601 to 420.602a). Rules without substantive changes are not included.Continue Reading Proposed New Michigan Cannabis Rules IV: Sale Or Transfer And Employees