State Representatives Graham Filler (R) and Jimmie Wilson, Jr. (D) introduced a bill aiming to modernize Michigan's cannabis laws. House Bills 5884-85 propose to merge the regulations for recreational and medical marijuana into a single regulatory framework under the Michigan Regulation and Taxation of Marihuana Act. This initiative seeks to simplify the regulatory process, reduce costs for businesses and improve efficiency for the state's Cannabis Regulatory Agency (CRA).
"Streamlining and simplifying these laws is a win for everyone involved – from businesses to patients to regulators,” said Filler. For instance, the dual regulatory system requires marijuana licensees to renew both medical and recreational licenses annually. This creates an extra burden for operators that work through both licenses. The proposed legislation will eliminate this duplication, requiring only one license.
Rep. Wilson added, "This is about making Michigan an attractive and stable place for marijuana businesses to thrive. A single, cohesive regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for medical marijuana patients."
Michigan’s Cannabis Market
Michigan has one of the most dynamic cannabis market in the US. Cannabis business have experienced remarkable growth since the legalization of recreational use in late 2019. In 2023, the state reported $3.06 billion in sales, with recreational cannabis accounting for $2.74 billion of this total. This represents a 25% increase from the previous year, highlighting the market’s rapid expansion and its significant economic impact. Cannabis tax revenue surpassed that of beer, wine, and liquor combined, totaling $266.2 million for the fiscal year 2023
The Michigan cannabis market is also highly competitive, with over 2,100 active adult-use licenses, including 1,050 grower licenses and 734 retailer licenses. This landscape has driven down prices, benefiting consumers and encouraging legal purchases. The average price of an ounce of adult-use flower dropped from $512 in January 2020 to around $90 in December 2023. Currently, 75% of consumers opt for legal dispensaries over illicit sources.
Despite the market’s success, Michigan’s Cannabis Regulatory Agency (CRA) has faced scrutiny over its effectiveness. A audit from last year revealed concerns about delays in enforcing regulations. Should the new bills get enacted, the existing Medical Marihuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marihuana Act will merge into a single regulatory structure. Thus, the CRA will oversee a unified regulatory framework for both recreational and medical marijuana, hopefully expediting the processes for business owners.
The Bill's Key Provisions
The new plan, detailed in the introduced bill, includes the following modifications:
- Regulatory Consolidation: The bill aims to repeal the older Medical Marihuana Facilities Licensing Act and integrate its regulations in a single structure.
- Single Licensing System: It will require only one license for activities such as growing, processing, transporting, or selling cannabis.
- Unchanged Medical Access: The system for medical marijuana patients and caregivers under the Michigan Medical Marihuana Act of 2008 will remain unaffected.
"By modernizing the regulatory process, we can help businesses cut costs and increase efficiency," said Filler.
The bills have been referred to the House Regulatory Reform Committee for further consideration.