The History of Cannabis in Michigan
Michigan became the first Midwest state to legalize the possession and use of recreational cannabis for adults age 21 years or older through the Michigan Regulation and Taxation of Marijuana Act, also known as Proposal 1, in 2018. Within one year of legalization, Michigan sold more than $1.6 million worth of cannabis products.
The cannabis consultants at Point7 are ready to support your team as you prepare for cannabis licensure in Michigan. Contact Point7 to discuss the fully customizable products and service packages available that have proved successful for operators around the country.
Medical Marijuana in Michigan
In November 2008 Michigan voters approved the Michigan Medical Marijuana Initiative, also known as Proposal 1. This groundbreaking measure allows for qualifying medical cannabis patients with a physician’s recommendation to possess up to two and one-half ounces of cannabis. Patients can receive a physician’s recommendation for treatment of a limited list of qualifying medical conditions. The measure also allows patients/caregivers to grow up to 12 cannabis plants at home, but does not explicitly allow for dispensaries to operate. The passage of Proposal 1 made Michigan the 13th state to legalize the use of medical cannabis, and was the first Midwestern state to do so.
In September 2016, Governor Rick Snyder signed a package of bills, which among other reforms, allowed the operation and regulation of medical cannabis dispensaries, and set a taxation rate of 3% on medical cannabis sales. This package of bills also explicitly approved the use of non-smokable forms of cannabis, such as topicals and edibles.
Adult-Use Cannabis in Michigan
In November 2017, activists pushing for adult-use cannabis legalization submitted 365,000 signatures to put a measure on the 2018 ballot. In June 2018 state lawmakers declined the option to pass the measure, and instead placed it on the November 2018 ballot. In November 2018, voters approved the Michigan Regulation and Taxation of Marijuana Act making Michigan the tenth state in the US and the first in the Midwest to legalize cannabis for recreational use.
Under current law, anyone age 21 or older may possess and consume marijuana. Where marijuana sales are legal, an individual can purchase up to 2.5 ounces, however an individual cannot have more than 15 grams of marijuana concentrate at one time. At home, an individual may keep up to 10 ounces of marijuana flower in a secured location.
In December 2019, Michigan cannabis businesses launched operations with sales of nearly $1.6 million in the first week, in spite of dispensary reports of low inventories.
Michigan legislators and regulators have received some criticism surrounding supply chain issues in the state, which is still an issue today. In 2019, legislators began the process of expanding their expungement of cannabis charges, including an estimated 235,000 residents with low-level cannabis convictions on their records.
On March 1, 2021, the Michigan Marijuana Regulatory Agency lifted an eligibility restriction which required an applicant to hold an active medical marijuana license to be eligible for an adult-use license.
In 2022, legislation was passed which renamed the Marijuana Regulatory Agency to the Cannabis Regulatory Agency (CRA). The law also consolidated processing, distributing, and selling hemp under the newly formed CRA. Additionally, 2022 also saw the opening of the state’s first licensed consumption lounges.
In addition to these provisions, Michigan continues to support communities that have been disproportionately harmed by cannabis prohibition through business education and licensing support. The state has also implemented a Social Equity Program that offers qualifying individuals and businesses with fee reductions, outreach, educational sessions, and a business resource directory to support potential business owners in the Program.
There are currently no licensing caps on the state level, and applications are on an open enrollment basis. Caps are placed on each municipality and a municipality can opt-out of the cannabis program (both medical and adult-use) if they choose to.
The cannabis consultants at Point7 are ready to support your team as you prepare for cannabis licensure in Michigan. Contact Point7 to discuss the fully customizable products and service packages available that have proved successful for operators around the country.
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