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Enacted/Effective Legislation & Rules

EFFECTIVE MARCH 7, 2022 State Rules Changes for Marijuana

The MRA recently released new draft rules for the cannabis industry. A public hearing took place for rules governing marijuana businesses at on Monday, September 27, 2021 in Lansing. The Guild also hosted a webinar/Q&A with CRA Director Andrew Brisbo on Friday, September 17, 2021, which specifically focused on the proposed rule changes.  The new rules went into effect on Monday, March 7, 2022.

Notable changes, per CRA:

New Fees

  • The adult-use and medical marijuana application fees were lowered from $6,000 to $3,000.
  • Adult-use establishment renewal tiers were removed; licensees who have already been invoiced a renewal fee are to pay the fee as invoiced.
  • Medical marijuana facility renewal tiers were removed; this change will take effect for fiscal year 2023 (check this regulatory assessment bulletin that outlined the fees for fiscal year 2022 for medical marijuana facilities).
  • Adult use establishment licenses have been reduced:
 License Type (Adult Use)  Current  New
 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 Microbusiness  $8,000 $8,300
 Adult Use Secure Transporter or Safety Compliance Facility  $25,000  $15,000

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

New Adult-Use Class A Marijuana Microbusiness License

  • Initial licensure fee is $18,600 and allows a licensee to grow up to 300 plants.
  • Class A marijuana microbusinesses may purchase marijuana concentrate and marijuana-infused products from a processor.
  • Marijuana liability insurance will be required upon licensure and at renewal.

New Adult Use Educational Research License

  • Applications will only be accepted from organizations that have been accredited by the Higher Learning Commission.
  • Licensees are required to have proof of DEA registration to operate.
  • License is valid for one year and does not carry an application fee, a licensure fee, or a renewal fee to operate.

Application Changes

  • The adult use requirements for applicant disclosure have been updated to match medical requirements for applicant disclosure; those with less than 2.5% ownership interest are not required to be disclosed.
  • A definition of a trustee was added to the rules.
  • Added a rule that the CRA can administratively withdrawal applications that are over one year old and have had no determination made.
  • Renewal applications may be denied for failure to submit an annual financial statement as required.

Enforcement

  • Documents have been updated; those interested in licensure can find copies on the CRA Bulletins page and expanding the Technical Bulletins tab:
    • Prelicensure inspection checklist
    • 30-day inspection checklist
    • Semi-annual inspection checklist
    • SCF Inspection Report

Sampling & Testing

  • There have been significant updates to the requirements for sampling and testing of marijuana and marijuana products.
  • There have been modifications to allow more movement of product within the market prior to final, full, safety compliance testing being required.

Operations

  • Contactless and limited contact transactions – including curbside service and drive-thru operations – are allowed, with municipal approval.
  • Product that is required to be destroyed must be destroyed within 90 days.
  • There are updated requirements for Standard Operating Procedures (SOPs).

Declaratory Rulings

  • Set forth a complete rule set outlining the process and requirements for a Request for a Declaratory Ruling from the Agency.

Infused and Edible Products

  • Updated requirements for packaging and labeling of products.

Review the complete rules here (PDF):

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Michigan cannabis politics are fast and furious. You're on this page- so you recognize how important it is to keep up.
The best way to help the Guild track and share State legislation and executive orders that will affect the licensed industry is to come to a meeting of the Policy & Endorsement Committee. All members (join here) are welcome and encouraged to take part.

We meet monthly. Information & meeting calendar

AGENCY NAME CHANGE ENACTED Executive Order 2022-1

As of April 12, 2022, the Marijuana Regulatory Agency's name was changed to the Cannabis Regulatory Agency (CRA). The Cannabis Regulatory Agency regulates the processing, distribution, and sale of both hemp and marijuana going forward. Oversight of hemp cultivation remains with MDARD.

See the Executive Order here.

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ENACTED PUBLIC ACT 119 of 2021

On December 7, 2021 Governor Whitmer signed into law Public Act 119 (HB4921), which amends the MMFLA (Medical Marijuana Facilities Licensing Act) by allowing medical marijuana licensees to submit Annual Financial Statements once every three years rather than every year. The new three-year calendar applies to annual financial statements submitted to both the State of Michigan and the local municipalitie(s) in which the licensee operates, and is effective immediately. Adult use licensees are still required to submit these financial statements annually. 

Check out Act 119 as adopted here (PDF). 

ENACTED PUBLIC ACT 103 of 2021

On November 4, 2021 Governor Whitmer signed into law Public Act 103 (HB4295 & SB691), which amends 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 Cannabis Regulatory Agency, or a state or federal regulatory body making decisions regarding medical marijuana.
  • The CRA may no longer consider the integrity, moral character, reputation, or personal probity of an applicant in evaluating eligibility for licensure.

It also prohibits the CRA 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 Act 103 as adopted here (PDF).

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State officials deal with a lot of industries and constituencies. You're on this page- so you recognize how important it is for government at all levels to have facts available when crafting laws and administrative rules. Thankfully, the Guild works hard to cultivate good relationships with statewide elected officials, as well as the hardworking staff at Michigan's Cannabis Regulatory Agency. The best way to help the Guild assist elected officials & staff in understanding and governing our industry is to come to a meeting of the Policy & Endorsement Committee. All members (join here) are welcome and encouraged to take part.

We meet monthly. Information & meeting calendar

Introduced/Pending Legislation & Rules

DRAFT RULES LANGUAGE RELEASED FOR INDUSTRIAL HEMP (7/20/22)

A public hearing for rules governing industrial hemp for marijuana businesses took place on Wednesday, February 16, 2022 in Lansing. The CRA adopted the new industrial hemp ruleset, but rescinded it on April 15 2022 after a significant amount of public and industry concern about conversion processes under the new rules.

On July 20, 2022 the CRA released new draft rules for industrial hemp. Download the draft language here.

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INTRODUCED Michigan House Bill 5871 (introduced 3/7/22)

State representative Hauck (R-Mount Pleasant) introduced House Bill 5871 which changes what kind of licensees can buy, sell, or transfer medical marijuana products under the MMFLA.

Currently, provisioning centers can buy or transfer marijuana from growers or processors and sell or transfer to patients or caregivers; processors can buy from growers and sell to provisioning centers or processors.

Under the new bill, provisioning centers would also be able to buy from other provisioning centers and also sell to other provisioning centers, growers, and processors; processors would also be able to buy or transfer from other processors and provisioning centers, and also sell or transfer to growers.

The House passed this bill on 3/24/2022 and it will go to the Senate next. 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 Bill 5877 (introduced 3/3/22)

State representative Rahbi (D-Ann Arbor) with several other representatives, introduced House Bill 5877 to remove cannabis from Michigan's list of Schedule 1 drugs. Its current listing as a schedule 1 drug has implications for employment, guardianship, housing and criminal punishment. Cannabis is legal in Michigan and removing it from Schedule 1 is long overdue. This bill has been referred to the Committee on Regulatory Reform.

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 Bill 5512 (introduced 11/1/21; passed by State House 4/28/22)

State representative Calley (R-Hastings), with other legislators including Reps. Brann (R-Wyoming) and LaGrand (D-Grand Rapids), introduced HB5512, which was intended to resolve some inconsistencies between the Michigan Medical Marihuana Act and drug court administrative practices, but may ultimately prove to have grave implications for some cannabis patients. The bill was adopted by the House on April 28, 2022 and has now been referred to the State Senate's Committee on Regulatory Reform.

Rep. LaGrand (D-Grand Rapids), who initially co-sponsored the bill but then voted against it, explained his reasoning like this:

“At issue was whether to give judges unlimited discretion to ban use of [cannabis] in sobriety courts. The presenting concern was that addicted participants might get a medical card to evade sobriety and ‘trump’ the rules of sobriety court. On the other side was the real concern that someone using [cannabis] for medical reasons shouldn't have to choose between help in a sobriety court and the medical help they already were getting. I proposed a policy of allowing those who had cards before entering sobriety court to keep using the cards, but stop participants from getting a card while in the court. The middle ground position wasn't adopted [and] the bill passed.”

To contact your State 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 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 would 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 CRA (Cannabis 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). The bills were re-referred to the Committee on January 2, 2022.

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 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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