Senate Democrats announced Oct. 14 the introduction of new legislation aimed to alleviate challenges facing Michigan’s vital legal cannabis industry, which supports more than 46,000 jobs in the state, and generating more than $3 billion in sales and about $500 million in taxes in 2024.
Senate Bills 597 and 598, introduced by Sens. Jeremy Moss (D-Bloomfield) and Sam Singh (D-East Lansing), and Senate Bills 599–602 introduced by Dayna Polehanki (D-Livonia), were referred to the Senate Regulatory Affairs Committee, where they received a first hearing on Oct. 15, according to a press release from Moss’ office.
“As Chair of the Senate Regulatory Affairs Committee, I’ve heard directly from those in the emerging cannabis industry about how they’ve been working to navigate through the relatively new rules and regulations to be successful. We want them to continue to grow here in Michigan,” said Moss. “That’s why we are taking up our bills with their input to address some licensing barriers, safely expand product, and increase revenue to our state.”
Michigan’s cannabis industry is facing over saturation of license approvals leading to falling profitability of product. The Singh-Moss bills would place a statewide cap on licensing retail and provisioning centers, but not on grow licenses that number in the thousands and are primarily responsible for the over saturation that has driven down retail prices.
“We are grateful to the Michigan Senate for taking swift action to ensure our industry has the tools it needs to create market stability and long-term sustainability,” said Robin Schneider, Executive Director of the Michigan Cannabis Industry Association. “Addressing unlimited and overcrowding licenses will create better market stability for our members. Requiring all hemp-derived consumable products to be regulated will stop the proliferation of out-of-state, unregulated THC products that create a danger to public health and safety. These intoxicating products must not be allowed to bypass our regulatory structure while avoiding our state excise taxes and putting our industry at an unfair financial disadvantage.”
Said Singh: “Michigan’s burgeoning cannabis industry has been a boon to our economy, supporting nearly 50,000 jobs while providing additional, critical ways for residents to manage a wide range of mental and physical health issues. Limiting retailer and provisioning center licenses by population offers a lifeline to existing businesses and a common-sense approach to addressing the growing threats faced by our retailers.”
The Polehanki package would extend the regulatory framework to consumable hemp processors. The Industrial Hemp Processing Act will establish an application process for consumable hemp manufacturing, create allowable activities for hemp processors, define responsibilities of the Cannabis Regulatory Agency, and penalties for violations. It would also ban the importation of untested, unregulated, untaxed, and unrestricted by age hemp-derived products, which are intoxicating.
“Michigan’s cannabis industry has become an important pillar of our state economy, and with that growth comes an obligation to ensure that these products are not only safe, but responsibly marketed,” said Polehanki. “This legislation demonstrates our support for conscientious entrepreneurs who prioritize integrity and safety while also protecting consumers — particularly our youth — from dangerous contaminants and misleading packaging. By promoting accountability and safety, we’re helping the cannabis industry thrive on a foundation of public trust and health.”
Further discussions on additional legislation to ensure the long-term stability of the industry are also underway with some proposals being introduced in the near future.
“Michigan’s cannabis industry has created thousands of jobs, generated significant tax revenue, and provided new opportunities for small business owners and entrepreneurs across the state,” said Sen. Sarah Anthony (D-Lansing), Chair of the Senate Appropriations Committee. “We value the critical role these businesses play here in Michigan, and as policymakers we can’t afford to leave them behind. I’m committed to working with my colleagues and industry professionals to explore policy solutions that support the economic success and growth of the industry, while balancing the overall needs of our state.”
