Doubling of adult-use cannabis tax disbursements demonstrates regulated market working

LANSING, Mich. — The Michigan Cannabis Manufacturers Association today reacted to the near doubling of adult-use excise tax revenue disbursements to local governments for the 2021 fiscal year, representing a significant influx of funds for police, fire and other services Michiganders rely on every day. The milestone highlights the need to pass the bipartisan Michigan Cannabis Safety Act to help ensure all cannabis in Michigan is tested, clearly labeled, tracked and licensed.

The $42 million in disbursements to 163 local and county governments with licensed adult-use cannabis businesses is based on more than $1.1 billion in recreational marijuana sales reported last fiscal year. The continued growth of adult-use sales in Michigan’s regulated market makes it more important than ever to help ensure all cannabis in Michigan is safe and tested, said Shelly Edgerton, Michigan Cannabis Manufacturers Association Chair.

“The significant increase in recreational sales across Michigan and resulting tax revenues to support our local communities shows the state’s regulated market is working and benefitting essential services we rely on every day,” Edgerton said. “Nearly two-thirds of all cannabis in Michigan is still not tested, licensed, tracked or labeled, posing an immediate health risk to consumers, according to a recent Anderson Economic Group study. The continued growth in adult-use sales makes it critical to pass the Michigan Cannabis Safety Act without delay.”

The Michigan Cannabis Safety Act, House Bills 5300-5302, 5319-5321 and 5562, helps ensure all cannabis in Michigan is tested, clearly labeled, tracked and licensed, keeps cannabis out of the hands of children, protects neighborhoods from large cannabis grows, and provides an affordable and fair pathway to enter the licensed cannabis marketplace.

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The Michigan Cannabis Manufacturers Association is an association of many of the state’s largest growers, processors, and vertically integrated cannabis licensees. All members of the MCMA must be licensed by the Marijuana Regulatory Agency.

Disastrous fire highlights need to protect neighborhoods, communities from large, illegal cannabis operations

LANSING, Mich. — A Macomb Daily report revealed a disastrous fire on Tuesday in an industrial building in Roseville was caused by a large, illegal cannabis grow operation. The fire could have resulted in serious injury or death. The unlicensed, unregulated grow operation, which for years had also resulted in odor complaints from nearby residents, is the latest example of the need for all cannabis in Michigan to be tested, clearly labeled, tracked and licensed, the Michigan Cannabis Manufacturers Association said today.

Police discovered a butane-fueled cannabis processing system and electrical extension cords running throughout the building, according to the Macomb Daily report. Had the butane been exposed to fire for a longer period of time, it would have exploded and “caused significant damage to anyone in the vicinity,” including in the nearby residential area, according to the report. The City of Roseville does not issue licenses for marijuana grow operations.

“This is just the latest example of unregulated, unlicensed cannabis operations wreaking havoc in local neighborhoods across Michigan, and residents have had enough,” said Stephen Linder, Michigan Cannabis Manufacturers Association executive director. “It is yet another reason to support the Michigan Cannabis Safety Act, which helps prevent odor complaints and the fires, explosions and other disasters that continue to pose a threat to the health and safety of communities and neighborhoods across Michigan.”

The Michigan Cannabis Safety Act, House Bills 5300-5302, 5319-5321 and 5562, requires unlicensed marijuana growers to report their addresses to local police and fire departments and other local authorities. The legislation also gives communities tools to keep their neighborhoods safe from unlicensed, unregulated cannabis operations.

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The Michigan Cannabis Manufacturers Association is an association of many of the state’s largest growers, processors, and vertically integrated cannabis licensees. All members of the MCMA must be licensed by the Marijuana Regulatory Agency.

MCMA applauds Gov. Whitmer’s signing of landmark Delta 8 THC legislation

LANSING, Mich. — The Michigan Cannabis Manufacturers Association today applauded Gov. Gretchen Whitmer’s signing of landmark bipartisan legislation that requires hemp-based Delta 8 THC and all other intoxicants that mimic a cannabis high to be regulated by the Michigan Marijuana Regulatory Agency (MRA).

 

Gov. Whitmer’s signature of the legislation follows bipartisan approval of the legislation in the House and Senate, and MCMA Executive Director Stephen Linder’s testimony before the Legislature. The legislation was spurred by Delta 8 products flooding the marketplace unchecked, potentially posing serious health risks to consumers.

 

“We applaud Gov. Whitmer for signing this critical legislation into law, which now requires Delta 8 THC and all other intoxicants that mimic a cannabis high to be regulated by the MRA to help promote the health and safety of all Michiganders,” Linder said. “We would like to again thank bipartisan leadership on this legislation in both the House and Senate, as well as the MRA and U.S. Hemp Roundtable for collaborating with the MCMA on this essential legislation.”

 

“This law is a major victory for product and consumer safety in Michigan’s regulated cannabis market,” said Shelly Edgerton, MCMA Board Chair. “It takes a giant step toward enforcing the same strict high testing, health and safety guidelines for any product that mimics a cannabis high that is either inhaled or ingested followed by our state’s licensed growers and processors.”

 

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The Michigan Cannabis Manufacturers Association is an association of many of the State’s largest Growers, Processors, and Vertically Integrated Cannabis Licensees. All members of the MCMA must be licensed by the Marijuana Regulatory Agency.

Hemp Industry Daily: Michigan House advances legislation to regulate delta-8 THC

delta-8 THC

State lawmakers in Michigan on Tuesday approved a package of bills requiring hemp-derived delta-8 THC, along with other intoxicants that mimic a cannabis high, to be regulated by the Michigan Marijuana Regulatory Agency.

The Michigan House Regulatory Reform Committee unanimously approved the bills, which now advance to the full House for a vote.

The action, spurred by a flood of unregulated delta-8 THC products entering the marketplace, has support from the cannabis business members in the state, including the Michigan Cannabis Manufacturer’s Association whose executive director, Stephen Linder, testified before the committee earlier this month.

Continue reading the story here.

MCMA testifies on Delta 8 THC legislation

capitol building

The Michigan Cannabis Manufacturers Association on Tuesday testified in support of legislation requiring the Michigan Marijuana Regulatory Agency to regulate hemp-based Delta 8 THC products, which mimic a cannabis high and have flooded the marketplace. The legislation includes state House Bills 4740-4745 and House Bill 4517.

One of the guiding principles of the MCMA is to help ensure the health and safety of Michiganders.

“Any product considered medicine should adhere to the same health and safety standards as medicines dispensed in pharmacies,” MCMA Executive Director Stephen Linder told the House Regulatory Reform Committee. “Recently, individuals and nonregulated labs have developed intoxicants that mimic the high of cannabis. Because they are not listed in the MRA’s formulary regulated compound — Delta 9 THC — these products are unscrupulously sold in the open marketplace and are available to anyone. You can find them in gas stations. You can find them in party stores. You can find them in smoke and vape shops. Because they are not illegal, there is no way to enforce their safety and purity. The most recent example is hemp-based Delta 8 THC products, which have comparable intoxicating effects as cannabis.”

“Michigan is not alone in wanting to address this imminent public health crisis. Twelve states have at least temporarily banned Delta 8 THC products, including Alaska, Arizona, Arkansas, Colorado, Delaware, Kentucky, Idaho, Iowa, Mississippi, Montana, Rhode Island and Utah. North Dakota, Alabama and Oregon are also considering Delta 8 product bans. We are not advocating banning these products. In the interest of protecting public health and safety, we are advocating regulating them and subjecting them to the same testing standards as every product that can get you high. There is nothing worth compromising the purity of our products and the health and safety of our customers and all Michiganders.”

Unfair microbusiness proposal would undermine marijuana industry

hand holding marijuana

The Michigan Cannabis Manufacturers Association today called on the Michigan Senate to scrap proposed legislation that would allow microbusinesses to skirt licensing requirements and do an end-run around the will of the voters. Senate Bill 1095 would create an unfair playing field, opening the floodgates to so-called microbusinesses that would not have to play by the same rules as already established Michigan companies and allow them to flourish without making the investment and infrastructure for state-of-the-art facilities or paying their fair share of taxes.

In a letter sent to the Senate today, the MCMA strongly urged senators not to bring the bill to a vote.

“Microbusinesses were sold to voters as small-business, single-location ‘mom and pop’ operations — a brewpub concept allowing small investors to enter the cannabis space with reduced cost,” said Steve Linder, Michigan Cannabis Manufacturers Association executive director. “Senate Bill 1095 goes way beyond what voters intended or imagined and changes the rules of the game midstream. This bill undermines the massive investment and risks of all growers and processors, regardless of scale. It would allow microbusinesses to do an end run around the licensing process, which undermines the integrity of a system which is just now beginning to work. This is a slap in the face to the manufacturers and entrepreneurs who have played by the rules and acquired class A, B and C licenses, each of which costs hundreds of thousands — if not millions — of dollars.”

MJ Biz: Michigan cannabis group urges faster track for social equity applicants

michigan cannabis

A Michigan cannabis trade association is calling on state regulators to make social equity candidates eligible for adult-use marijuana licenses a year early but keep a moratorium until December 2021 for other recreational applicants.

State regulators recently said they were considering making recreational-only licenses available in November, a year ahead of schedule.

Michigan allowed existing medical cannabis operators the first crack at the adult-use market in December 2019 by establishing a two-year moratorium on most additional adult-use licenses.

Steve Linder, executive director of the Michigan Cannabis Manufacturers Association, which includes the state’s largest cultivators/processors, said the group sees an opportunity for the state to accelerate the timeline for social equity applicants to enter the market.

Continue reading the story here.

MCMA announces plan to boost entrepreneurship in adult-use cannabis market

cannabis

The Michigan Cannabis Manufacturers Association today announced a plan to boost entrepreneurship in Michigan’s adult-use cannabis market for applicants disproportionately impacted by cannabis prohibition and enforcement and calls on the Marijuana Regulatory Agency to act on the recommendation. The plan would make current Social Equity designees eligible for adult-use-only marijuana licenses a year early.

“Our plan will help reduce legal hurdles for local entrepreneurs from communities disproportionately impacted by outdated marijuana laws looking to participate in Michigan’s regulated cannabis market,” said Steve Linder, Michigan Cannabis Manufacturers Association executive director. “If enacted, our plan will spur new businesses, economic growth and job creation and contribute to a regulated cannabis market that ensures safe, tested and high-quality cannabis products for all Michiganders.”

Under Michigan law, there is a two-year moratorium on most adult-use-only licenses from Dec. 6, 2019, when the state started licensing adult-use businesses. Under the MCMA’s plan, Social Equity designees would be eligible sometime by the first of 2021 for adult-use-only licenses. The two-year moratorium for adult-use-only licenses would continue until December 2021 for Non-Social Equity applicants. (The MRA has it within their authority to move the date as a step in complying with the Social Equity mandate under MRTMA.)

The plan also calls on local units of government to “opt-in” to allow applicants for Social Equity status to create new adult-use marijuana businesses in their communities.

“As a Metro Detroit business owner, I’ve seen disadvantaged communities like ours fall behind in establishing businesses in Michigan’s regulated cannabis market,” said Bernard Moner, president of Black Swan Defense and Intelligence, a minority owned business providing application vetting, security plans and security technology for those seeking cannabis licenses from the Marijuana Regulatory Agency and local units of government. “This plan gives local entrepreneurs a much-needed leg up to participate in Michigan’s cannabis industry and contribute to their local economy.”

“The MCMA plan would level the playing field for people in my district who have aspirations of starting businesses in this growing industry but who have hit government-created roadblocks getting their foot in the door,” said state Rep. Matt Hall, R-Marshall. “I look forward to working with the MCMA and stakeholders at the state and local levels to put this plan into motion.”