The Business of Cannabis

Proposed Changes To Marijuana License Cap Legislation Include New Rules On Outstanding Tax Debt

Jun 17, 2026 | Great Lakes Region, Michigan


The state Senate is refocusing its marijuana industry license cap legislation to include new barriers to obtaining a license for growers, processors or dispensary operators with outstanding industry-related tax debt — a move that would help shore up the industry as it deals with a new 24% wholesale tax.

The Michigan Senate Regulatory Affairs Committee on Wednesday heard a second round of testimony on recent changes to Senate Bill 597, a bill proposing new caps on state marijuana industry licenses. The hearing comes nearly a year after the bill was introduced and was the subject of a first hearing in October 2025.

Sponsored by Sen. Sam Singh (D-East Lansing), SB 597 would cap licenses for marijuana retailers and wholesalers to one license per 10,000 residents in a municipality beginning Jan. 1, 2026. The move would be similar to how the state regulates liquor sales, Singh said last year.

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