Resnick Law, P.C.

1 (888) 724-4071

Free Phone Consultation

Call: (248) 642-5400

Menu
  • Home
  • Our Firm
    • Firm Overview
    • Attorneys
      • H. Nathan Resnick
    • Attorney Referrals
    • Views & News
    • Events
    • Careers
    • Close
  • Our Clients
    • Who We Represent
    • Results
    • Testimonials
    • Close
  • Practice Areas
      • Appeals
      • Asset Protection
      • Bankruptcy
        • Chapter 7 Bankruptcy
        • Chapter 9 Bankruptcy
        • Chapter 11 Bankruptcy
        • Chapter 13 Bankruptcy
        • Garnishment
        • Solutions Without Bankruptcy®
      • Business Law
      • Construction Law
      • Contracts
      • Corporate Litigation
      • Creditor Rights
      • Debt Relief Laws
      • Estate Planning
      • Foreclosure
      • Guardianship & Conservatorship
      • Liability of Electronic Communications
      • Property Tax Appeals
      • Real Estate & Zoning
      • Receivership
      • Short Sales
      • Trust & Probate Administration
    • Close
  • FAQ
    • Michigan Bankruptcy Laws
      • Chapter 7 Bankruptcy
      • Chapter 9 Bankruptcy
      • Chapter 13 Bankruptcy
    • Estate & Probate
      • Estate Planning Basics
      • Will and Trusts
      • Death and Taxes
      • Probate Law Questions
      • Other Assets and Tools
      • Changing Your Wills, Estates & Trusts
    • What is a Garnishment?
    • Close
  • Blog
  • Resources
    • Videos
    • Close
  • Contact
    • Close

Michigan’s Marijuana Industry Girds for a Shake-Up

January 18, 2017

Resnick_Blog_38b_139577975Laws enacted last fall to establish a framework for the state to legalize, regulate and tax a broader range of Michigan’s medical cannabis industry have begun to coalesce, with the legalization of retail dispensaries likely to garner the most attention.

The legalization of dispensaries, which was established in a tripartite of bills passed by both chambers of the state legislature and signed into law by Gov. Rick Snyder was spurred by a number of legal questions that had lingered since the state’s original medical marijuana law was approved by voters in 2008.

“This will clean up what’s happening out there with illegal dispensaries and create a legitimate industry in Michigan,” former state Rep. Michael Callton, a Nashville Republican who sponsored the licensing measures, told reporters in an online news conference. “From a patient’s perspective, they now have a safe place to go and buy their medicine.”

The spate of laws affecting Michigan’s medical cannabis market will now provide patients with their greatest access yet to legal pot. Advocates have postulated that it also sets the stage for the next step in the evolution of marijuana use: legalizing recreational marijuana. Conversely, the new laws effectively ceded state uniformity of governance by granting local municipalities the right to decide how much, if at all, the industry can establish a foothold in any one town. Additionally, full legalization advocates fear state officials established a regulatory framework that places limits on the free market and shuts out small-time growers, subsequently passing on higher costs to patients.

“This policy was designed with business interests in mind,” Matthew Abel, one of Michigan’s most prominent marijuana law advocates and executive director of the Michigan chapter of the National Organization for the Reform of Marijuana Laws, said in a recent interview to the South Bend Tribune. “They’re not in favor of (marijuana) but they’re trying to get ahead of the curve so they can implement their system instead of something that’s more free and open.”

The new laws are slated to grant licenses to commercial growers, Resnick_Blog_38a_466354484processors, secure transporters, testing facilities and retail dispensaries. The revised legislation also sanctions the sale of cannabis-infused edible products as well as more potent extracts and oils. The return on investment these new laws offer state and local coffers include the collection of a 3 percent tax on dispensary sales, plus licensing fees from those who take part in the system.

“You’ve got a lot of moving parts taking place,” Michael Komorn, president of the Michigan Medical Marijuana Association, noted in a recent interview on the subject of state regulations regarding marijuana. “To me, it represents a new era of the state unequivocally saying they’re in the business of selling medical marijuana and receiving revenue from it.”

Previously, Michigan had allowed the growing of a limited amount of marijuana, and only by certified medical users or by caregivers who were restricted in the number of patients they could serve. The new laws will create a bigger commercial system, but one that will be strictly controlled. A licensed grower may sell plants only to a processor or dispensary, for example, and patients and their caregivers will be able to buy products only from the dispensaries, rather than directly from a grower or processor.

Participating in the new system will come at what some legalization advocates have complained is a significant cost. While the state has not publically stated what the licensing fee will be, the legislation that set the regulatory structure in motion calls for both a licensure fee and an annual “regulatory assessment.”

Reports have speculated costs for the lowest class of commercial growers, those with 500 plants or fewer, could total $10,000. Dispensaries will also pay a 3 percent tax on gross sales, which is a separate tax than the state’s existing 6 percent sales tax. And players in the new system will take on more costs to pay authorized transporters and testing facilities.

While medical marijuana advocates have complained that additional layers of regulation will become a financial albatross around patients’ necks, cardholders are still be able to grow up to 12 plants for personal use or seek pot from a caregiver. The state says it plans to begin accepting applications for licenses under the new commercial system by December, with the first licenses likely to be issued in 2018.

 

Filed Under: News Tagged With: medical marijuana, Michigan's medical cannabis

Have Questions? Need Legal Guidance?

Have your case reviewed by a Resnick Law attorney today!

Get Started Now

Do You Have a Claim?

Call (248) 642-5400

Free Phone Consultations
Same Day Response

Practice Areas

Our Firm Is Your Solution For:

  • Asset Protection
  • Bankruptcy
  • Business Law
  • Testimonials
  • Appeals
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate and Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronic Communications
  • Property Tax Appeals
  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Stay in touch

Sign up to get interesting news and updates delivered to your inbox.

Our firm’s practice areas include:

  • Appeals
  • Asset Protection
  • Bankruptcy
  • Business Law
  • Chapter 7 Bankruptcy
  • Chapter 9 Bankruptcy
  • Chapter 13 Bankruptcy
  • Construction Law
  • Contracts
  • Corporate & Commercial Litigation
  • Creditor Rights
  • Debt Relief Laws
  • Estate Planning
  • Foreclosure
  • Guardianship & Conservatorship
  • Liability of Electronics
  • Property Tax Appeals

 

  • Real Estate & Zoning
  • Receivership
  • Short Sales
  • Solutions Without Bankruptcy®
  • Trust & Probate Administration

 

Martindale-Hubbell
dbusiness
Resnick Law Peer Review Rated

Recent Posts

  • Struggling With Tax Debt in Michigan? Your Guide to the IRS Fresh Start Program
  • Successfully Addressing Diversity in a Post-Pandemic Workplace
  • ESG Disclosure Simplification Act Passed by House
  • Business Debt and Partnerships: What You Need to Know to Protect Yourself
  • Mergers and Acquisitions During the COVID-19 Pandemic

Office Locations

  • Bloomfield Hills – (248) 642-5400
    40900 Woodward Avenue, #111
    Bloomfield Hills, MI 48304

Connect With Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Get Help Now

Contact Us

Copyright © 2023 Resnick Law, P.C. All rights reserved · Disclaimer · Privacy Policy

Attorneys at Resnick Law, P.C. serve clients in Bloomfield Hills, Metro Detroit, the Tri-County Area and throughout southeast Michigan, including: Oakland County, Wayne County, Macomb County, Livingston County, Genesee County, Washtenaw County, Lapeer County, St. Clair County, Birmingham, Rochester Hills, Rochester, West Bloomfield, Bloomfield Township, Novi, Royal Oak, St. Clair Shores, Grosse Pointe, Walled Lake, Ferndale, Berkley, Sterling Heights, Clarkston, Farmington Hills, Ann Arbor, Howell, Brighton, Mount Clemens, Flint, Grand Blanc, Livonia, Dearborn, Troy, Plymouth, Pontiac, Northville, Southfield, Warren and Utica.

All materials and content in this Blog are provided for informational purposes only. Information contained in this Blog does not create an attorney-client relationship with Resnick Law, P.C. and any recipient of this Blog. The contents of this Blog, in whole and in part, are not to be construed as a legal opinion or legal advice. All materials and content in this Blog are provided for informational purposes only. Persons viewing information contained in this Blog should not act upon such information without first seeking appropriate and specific legal or professional consultation. Please contact an attorney at our office to obtain legal advice specific to your needs.

Viewing of this website does not create an attorney/client relationship with Resnick Law, P.C. All materials and content on this website are provided for informational purposes only. These informational materials are not intended to constitute legal advice and should not be construed as such, because each person’s legal matters are unique and results will vary. The contents of this website do not reflect current legal developments, verdicts, settlements or specific client endorsements. Persons viewing information contained in this website should not act upon such information without first seeking appropriate and specific legal or professional advice. Please contact an attorney at our office to obtain legal advice specific to your needs.