Bipartisan bill in Michigan aims to merge adult-use and medical cannabis

State Representative Graham Filler (Around Jimmie Wilson, Jr. (D) has introduced a bill to modernize Michigan’s cannabis laws. House Bills 5884-85 propose to combine recreational and medical marijuana regulations into a single legal framework under the Michigan Regulation and Taxation of Marihuana Act. This initiative aims to simplify the regulatory process, reduce costs for businesses, and improve the efficiency of the state’s Cannabis Regulatory Agency (CRA).

“Streamlining and simplifying these laws is a win for everyone involved – from businesses to patients to regulators,” Filler said. For example, the dual regulatory system requires marijuana licensees to renew both their medical and recreational licenses annually. This places an additional burden on operators operating under both licenses. The proposed legislation will eliminate this duplication and require only one license.

Rep. Wilson added, “This is about making Michigan an attractive and stable location for thriving marijuana businesses. A unified, coherent regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for patients who use marijuana for medical purposes.”

Michigan’s cannabis market

Michigan has one of the most dynamic cannabis markets in the U.S. The cannabis business has experienced remarkable growth since legalizing recreational use in late 2019. In 2023, the state reported revenue of $3.06 billion, with $2.74 billion of that coming from recreational cannabis. This represents a 25% increase from the previous year and highlights the market’s rapid expansion and significant economic impact. Cannabis tax revenues surpassed those of beer, wine and spirits combined, totaling $266.2 million in fiscal year 2023.

Michigan’s cannabis market is also highly competitive. There are over 2,100 active recreational licenses, including 1,050 cultivation licenses and 734 retail licenses. This development has driven down prices, benefiting consumers and encouraging legal purchases. The average price for an ounce of recreational cannabis fell from $512 in January 2020 to around $90 in December 2023. Currently, 75% of consumers choose legal dispensaries over illegal sources.

Despite its market success, the effectiveness of Michigan’s Cannabis Regulatory Agency (CRA) has been scrutinized. An audit last year raised concerns about delays in enforcing regulations. If the new laws go into effect, the existing Medical Marihuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marihuana Act will be merged into a single regulatory structure. As such, the CRA will oversee a unified regulatory framework for recreational and medical marijuana and hopefully speed up processes for business owners.

The most important provisions of the law

The new plan, which is detailed in the proposed bill, provides for the following changes:

1. Regulatory consolidation: The bill aims to repeal the older Medical Marihuana Facilities Licensing Act and integrate its provisions into a single structure.
2. Uniform licensing system: Only one license will be required for activities such as cultivation, processing, transportation and sale of cannabis.
3. Unchanged medical access: The system for patients and caregivers using medical marijuana under the Michigan Medical Marihuana Act of 2008 remains unaffected.

“By modernizing the regulatory process, we can help companies reduce costs and increase efficiency,” Filler said.

The bills have been referred to the House Regulatory Reform Committee for further review.