Blog Post is Co-Authored by Jerry Hincka from EHS Support

As the Michigan cannabis industry continues to grow and mature, medical and adult-use licensees would be well served to take proactive steps to ensure compliance with Environmental, Health and Safety (EHS) regulations. We’ve previously written about the importance for cannabis businesses to be mindful of EHS regulations and the issue of environmental sustainability in the cannabis industry. In addition to federal EHS regulations from federal agencies like the Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA), Michigan cannabis licensees must also pay careful attention to state EHS regulations from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and the Michigan Occupational Safety & Health Administration (MIOSHA).
Continue Reading Michigan Cannabis Industry Must Be Prepared for Environmental, Health, and Safety Compliance Inspections from EGLE and MIOSHA

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.
Continue Reading Michigan Regulator’s Odd Limit on Grow Licenses

On November 17, 2021, the Michigan Marijuana Regulatory Agency (MRA) issued a recall of cannabis products that were tested at Viridis Laboratories, LLC and Viridis North, LLC between August 10, 2021, and November 16, 2021. The full impact at this point is still unknown. On November 23, 2021, Viridis Laboratories, LLC and Viridis North, LLC commenced a lawsuit against the MRA and some of its officials to challenge the MRA’s recall. The suit alleges that the scope of the recall covers nearly 65,000 pounds of cannabis flower worth nearly $230M.

Continue Reading Retesting Requirements if Impacted by the Michigan Cannabis Recall

On Monday, September 27, 2021, the Marijuana Regulatory Agency (“MRA”) held a public hearing to receive comments on a series of proposed changes to the administrative rules that govern medical and adult-use marijuana businesses. We previously covered an overview of the proposed changes in our five-part blog series in the days leading up to public hearing. The proposed rules concern significant changes to the following rule sets: licenseslicenseesoperations, testing, infused productssale or transfer, employeeshearings, disciplinary proceedings, and declaratory rulings.

Continue Reading Marijuana Regulatory Agency Holds Public Hearing On Proposed Administrative Rule Changes

Operators in state-legal cannabis industries are confronted with a myriad of tax challenges, as we have previously discussed. As a result, opportunities for tax savings for state-legal cannabis businesses are often few and far between. However, Michigan law provides sales and use tax exemptions that cannabis growers and processors may be eligible to receive that could provide significant tax savings and even the prospect of a refund for previously paid sales or use taxes.

Continue Reading Michigan Cannabis Cultivators and Processors Have Opportunity for Sales Tax Savings and Refunds