Michigan is known for its strict regulations regarding cannabis businesses. State law mandates that companies must have multiple licenses for various activities such as growing, processing, transporting, and selling marijuana. However, a recently proposed bipartisan bill in Lansing aims to simplify this process. If this bill is signed into law by the governor, cannabis companies in Michigan will no longer be required to obtain multiple licenses. Instead, they will be able to consolidate all licenses into one, making it easier for them to operate.
At present, cannabis businesses in Michigan are burdened with the requirement of obtaining separate licenses for medical and recreational activities on an annual basis. This is due to the two state laws that were passed in 2016 and 2018, namely the Medical Marihuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marihuana Act, respectively. This cumbersome process not only incurs significant expenses but also poses logistical challenges for these businesses.
According to Brianna McNally, an employee at the Pharmhouse Wellness Dispensary in Grand Rapids, the dispensary is required to follow strict regulations for both recreational and medical marijuana as well as their own grow operations. McNally explains that the dispensary must adhere to numerous rules and regulations, and failure to do so can result in penalties. To ensure compliance, the Pharmhouse has licenses displayed throughout the facility for all employees to see.
House Bills 5884 and 5885 aim to streamline the licensing process for businesses operating under the Michigan Regulation and Taxation of Marihuana Act. If approved, this consolidation of licenses could result in significant cost savings for these businesses.
McNally expressed excitement over the extra money that could be used to improve the store and provide better products for their customers. “That’s a little extra money that we could spruce up the place, get more bud for our customers,” he said. He believes that this opportunity will be beneficial for their business.
Michigan’s St. Johns Republican Representative, Graham Filler, worked alongside Ypsilanti Democrat Representative, Jimmie Wilson Junior, to co-author the bills.
Filler expressed his belief that the regulated market in Michigan will be positively impacted and further influenced by this development. He foresees an increase in stability and efficiency as a result.
According to Filler, the decrease in the number of licenses if the law is passed may lead to a decrease in the state’s tax revenue. However, he firmly believes that this downside will be compensated by the increase in the number of businesses wanting to establish or expand their operations within Michigan.
According to him, it is crucial to examine whether the state is enacting laws, rules, and regulations that simplify the process of marketing, expanding, or constructing a business. This is the crux of the matter. By doing so, Michigan can become more appealing to investors who are interested in cannabis and cannabis-related enterprises.
According to McNally, many people become frightened when they hear that they need certain things and more money. This can be discouraging for them. However, the bills will provide assistance to those who may not have tried before, giving them the opportunity to pursue their goals without hesitation. McNally believes that this will allow them to fully achieve what they set out to do.
Filler is optimistic about the future of the bills, as they have gained bipartisan support and are currently in committee as of late July. He anticipates that they will be put to vote this autumn.
