West Michigan Cannabis Guild

STATE

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PROPOSED State Rules Changes (Public Hearing 9/27/21)

The MRA recently released new draft rules for the cannabis industry. A public hearing took place at on Monday, September 27, 2021 in Lansing. The Guild also hosted a webinar/Q&A with MRA Director Andrew Brisbo on Friday, September 17 at 12 pm, which specifically focused on the proposed rule changes. We'll keep you updated on this page.

Review the proposed rules here (all links open in a new window):

All proposed rulesets in one combined document (PDF)

Notably, two new license types are proposed:

Class A Microbusiness (see "Marihuana Licensees" proposal, p.7), which would allow cultivation of up to 300 plants and retail sales (no on-site processing). The proposed licensing fee for this new license type would be $18,600.
For comparison, current Microbusinesses can grow up to 150 plants, with processing and retail sales. Current Microbusiness license fees are $8,000, proposed to increase to $8,300.
Marijuana Education Research (see "Marihuana Licenses" proposal, p.28). No fee is proposed for this new license.
Most State adult use (recreational) licensing fees are proposed to be reduced (see "Marihuana Licenses" proposal, bottom p.11 & p.12).

License Type (Adult Use)	Current	*Proposed*
Adult Use Prequalification	$6,000	$3,000
Adult Use Retailer	$25,000	$15,000
Adult Use Grower A (no more than 100 plants)	$4,000	$1,200
Adult Use Grower B (no more than 500 plants)	$8,000	$6,000
Adult Use Grower C (no more than 2,000 plants), or Excess Grower, or Processor	$40,000	$24,000
Adult Use Secure Transporter or Safety Compliance Facility	$25,000	$15,000

Fees for Temporary Marijuana Event and Designated Consumption Establishment licenses are proposed to remain at $1,000.

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ENACTED PUBLIC ACT 103 of 2021

On November 4, 2021 Governor Whitmer signed into law Public 103 (HB4295 & SB691), which amended the MMFLA (Medical Marijuana Facilities Licensing Act) in the following ways:

Individuals who have been convicted of certain marijuana-related felony or misdemeanor offenses are eligible for a marijuana state operating license unless the felony involved the distribution of marijuana to a minor.
Applicants who are elected officers or employees of a Federally recognized Indian tribe or elected precinct delegates are eligible for a marijuana state operating license.
The spouse of a person who applied for a marijuana state operating license is eligible for licensure unless the spouse's position created a conflict of interest, was within the Marijuana Regulatory Agency (MRA), or a state or federal regulatory body making decisions regarding medical marijuana.
The MRA may no longer consider the integrity, moral character, reputation, or personal probity of an applicant in evaluating eligibility for licensure.

It also prohibits the MRA from evaluating an applicant's suitability for a marijuana state operating license based on whether he or she had committed marijuana-related offenses with the exception of felonies involving the distribution of marijuana to a minor.

We supported this bill and are glad that Governor Whitmer signed it into law (which is effective immediately). You can check out the full text of the adopted Public Act here (PDF).

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INTRODUCED Michigan House Bills 5319 & 5321 (introduced 9/21/21)

State Representatives Petersen (D-Ypsilanti) and Howell (R-Lapeer) introduced House Bills 5319 and 5321 which would exempt medical cannabis products provided by caregivers and/or specialty medical growers (see HB 5301, below) from State use taxes (5319, Sec. 4ii(1)) and sales taxes (5321, Sec. 4ii(1)).

The House Fiscal Agency released a legislative analysis of these and other bills on 10/5/21. Click here to read it (PDF).

The bills are tie-barred with each other, as well as HB5300, 5301, and 5302 (below), and will not go into effect unless all bills are adopted. They were referred to the Committee on Regulatory Reform, which recommended approval on October 26, 2021 (minutes).

If you want to contact your State Representative or Senator about this bill or other issues important to you, you can do so through the advocacy activities of the Cannabis Guild as a member. We encourage you to contact them directly, too. Contact your Legislators.

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INTRODUCED Michigan House Bills 5300, 5301, & 5302 (introduced 9/13/21)

State Representatives Clements (R-Monroe County), Lilly (R-Grand Haven), and Steenland (R-Warren) introduced House Bills 5300, 5301, and 5302, respectively, which together would change the regulatory landscape surrounding medical cannabis caregivers.

The bills would:

Create a new "specialty medical grower" license (5301 Sec. 4c);
Limit caregivers to serving only one patient, rather than six, starting 3/21/2022 (5301 Sec. 6f);
Add an annual registration fee of $500 (5301 Sec. 4c(1)(a));
Require product testing (5301 Sec. 4c(4)(c)(iii)) and registration in the State’s seed-to-sale tracking system (5301 Sec. 4c(4)(d)(i));
Ban anyone with a non-marijuana felony from becoming a caregiver (5301 Sec. 6d);
Require specialty medical growers to be located on property that is unzoned or zoned as agricultural or industrial (5301 Sec. 4c(5)).

The three bills are tie-barred (so will only be adopted if all are adopted) and referred to the Committee on Regulatory Reform, which recommended approval on October 26, 2021 (minutes).

Rep. Lilly's District (Grand Haven/Ottawa County) is within the WMCG's focus area. If you want to contact your State Representative or Senator about this bill or other issues important to you, you can do so through the advocacy activities of the Cannabis Guild as a member. We encourage you to contact them directly, too. Contact your Legislators.

The West Michigan Cannabis Guild advocates for broad access to safe, tested cannabis products for all users.

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INTRODUCED Michigan House Bills 5126 & 5127 (introduced 6/24/21)

State Representatives Alex Garza (D-Taylor) and Roger Hauck (R-Union Twp.) introduced House Bills 5126 & 5127, which both propose to amend the MMFLA (Medical Marihuana Facilities Licensing Act) and pertain to financial responsibility requirements for medical cannabis licensees.

HB5126 requires that proof of financial responsibility be in the form of a liability insurance policy that meets certain requirements, and which must be maintained for licensure. HB5127 replaces references to the former MMLB (Medical Marihuana Licensing Board) with references to the MRA (Marijuana Regulatory Agency).

The two bills are tie-barred (so will only be adopted if both are adopted) and were most recently considered by the Committee on Regulatory Reform on October 19, 2021 (minutes).

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INTRODUCED Michigan House Bill 4608 (introduced 4/13/21)

State Representative Mary Whiteford (R-Allegan County) introduced a bill that would prohibit the use of billboards to advertise to advertise marijuana, marijuana products or infused products, a cannabis facility, or a licensee. Cannabis companies are already restricted from broadcast and most digital advertising, so they are limited to outdoor advertising, and direct contact, like text and email lists. The full text of the bill is available online here. It has been referred to the Committee on Regulatory Reform.

Rep. Whiteford's district is located within the WMCG's focus area. If you want to contact your State Representative or Senator about this bill or other issues important to you, you can do so through the advocacy activities of the Cannabis Guild as a member. We encourage you to contact them directly, too. Contact your Legislators.

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Disclaimer

West Michigan Cannabis Guild

P.O. Box 3591

Grand Rapids, MI 49501