(Source: MIRS.news, Published 07/02/2024) Last month, Michigan emerged as the top seller of legal cannabis in the country. Now, Rep. Graham Filler (R-St. Johns) is reviving an effort to ease the state’s regulatory burden on marijuana retailers.  

The bipartisan two-bill package would merge the regulatory statutes for adult-use and medical marijuana into the Michigan Regulation and Taxation of Marihuana Act of 2018 (MRTMA), and repeal the older 2016 Medical Marihuana Facilities Licensing Act (MMFLA).  

According to data compiled by cannabis analytics firm BDSA and shared by the Michigan Cannabis Industry Association (MICIA), Michigan retailers sold 22 million cannabis products in March. The next highest volume state, California, sold 21.3 million.  

While Michigan is on top, bill sponsor Filler said it’s necessary to streamline the state’s two-part regulatory system for growers, processors, transporters and sellers of marijuana.  

The 2016 medical marijuana law, as passed by the Legislature, oversees facility regulation and licensing, while the 2018 ballot initiative legalized adult-use recreational marijuana.  

Filler said the dual statutes create a burden for both licensees and the state’s Cannabis Regulatory Agency (CRA).  

Currently, marijuana licensees need to renew both a medical and recreational license each year to grow, process, transport or sell.  

The bill package would ease that burden, Filler said, by requiring only one license for each type of activity authorized under MRTMA.  

“Streamlining and simplifying these laws is a win for everyone involved – from businesses to patients to regulators,” Filler said. “By modernizing the regulatory process, we can help businesses cut costs and increase efficiency.” 

Rep. Jimmie Wilson Jr. (D-Ypsilanti), another bill sponsor, said, “This is about making Michigan an attractive and stable place for marijuana businesses to thrive. 

“A single, cohesive regulatory framework will support our growing economy, ensure the safety and quality of marijuana products and maintain access for medical marijuana patients," he said. "This is a forward-thinking approach that positions Michigan as a leader in the industry.” 

Wilson’s HB 5884 would set up the merger, while Filler’s HB 5885 would repeal the MMFLA as of March 1, 2026.  

Doug Mains, a government relations and regulatory attorney at Honigman who helped craft the legislation, said the consolidation would take effect a year after the bill’s effective date, with the idea that the legislation could be moved by lame duck and take effect March 1.  

At that time, all existing medical licenses would become adult use, Mains said.  

Because of the way the CRA has set up the system thus far, with marijuana moving between the medical and recreational systems all the time, there’s really no difference between the two, Mains said.  

While some people in local governments in Michigan feel differently about retail marijuana facilities than their medical counterparts, and thus have opted into only medical marijuana, he said these municipalities will still have an opportunity to opt out of adult use.  

During the one-year period before licenses are combined, these municipalities could pass an ordinance or resolution specifying that their stores will remain licensed for medical use only.  

Otherwise, the combination for retailers is automatic, Mains said.  

According to the bill's language, the combination would increase the number of plants that can be grown per growers' license.  

Prior to March 1, 2026, a Class A grower could have 100 plants, with Class B growers legally allowed to have 500 and Class C growers maxing out at 2,000.  

After March 1, 2026, a Class A grower could have up to 500 plants, while Class B growers could have 1,000. Class C growers would still be limited to 2,000 plants.  

Filler said the legislation will not make any changes to the established system for medical marijuana patients and caregivers under the 2008 act.  

He said legislators have spent months working with stakeholders across the cannabis landscape, and “we believe in having all parts of the cannabis landscape at the table for this important merger.”  

A source close to the drafting process said there hasn’t been much pushback, outside the normal hesitance to talk about cannabis that still exists for some in Michigan.  

David Harns, public relations contact for the Michigan CRA, said the agency “expresses any positions it takes through the legislative process.” The bills have been referred to the House Regulatory Reform Committee.  

In addition to a hearing, the legislation needs a three-fourths supermajority to pass.