MI Cannabis Industry Set For Explosive Growth
Updated: Jul 7, 2020
Michigan’s commercial cannabis industry is still young but well on its way to greatness.
Michigan is second to California in the number of registered patients; also, Michigan
recognizes out of state patient registration cards. More huge is Michigan’s adult-use
cannabis market, because it includes the highly populated Midwest region.
Effective June 22, 2020, Michigan adopted permanent rules combining commercial medical
and adult-use regulations, which extended:
● Prequalification from 1-year to 2-years
● Timeframe for secure transporters from 48 to 96 hours
● Delivery to delivery dispatch by keeping vehicle inventory
● Remediation protocols for chemical residue and microbials and retesting
● No testing requirement for grower if sold to processor to make concentrates
● Use of botanical terpenes
The State of Michigan commissioned a March 2020 study by Michigan State University: THE MARKET FOR AND ECONOMIC IMPACT OF THE ADULT-USE RECREATIONAL MARIJUANA INDUSTRY IN MICHIGAN, by William Knudson, Ph.D. Steven Miller, Ph.D.;
"[It] estimated … [annual] retail sales … [will climb] to $3 billion with a total economic impact in excess of $7.8 billion. Employment … is estimated to be 13,500 with a total economic impact on employment in the state of 23,700. Total tax revenue raised is $495.7 million of which $298.6 million is excise taxes and $197.1 million are in the form of sales taxes."
Weekly recreational sales (over $10 million) recently exceeded medical sales (under $10 million). $150 million in recreational use cannabis products have been sold since legal sales began December 1, 2019.
The coalition that put the adult-use law on the ballot in 2016, (Cannabis Counsel founder Matthew Abel and I were members of MILegalize, the grassroot partner) opened licensing for the many, not restricted to the few like in many other states; no oligopoly here. Also, allocations of tax revenue were created as follows:
"...for at least two years, to provide $20 million annually … researching the efficacy of marihuana in treating the medical conditions of United States armed services veterans and preventing veteran suicide. Upon appropriation, unexpended balances must be allocated as follows:
(a) 15% to municipalities in which a marihuana retail store or a marihuana
microbusiness is located …;
(b) 15% to counties in which a marihuana retail store or a marihuana
microbusiness is located ...;
(c) 35% for K-12 education; and
(d) 35% to fix roads.
Michigan’s huge market size and industry expertise make it especially attractive for investment.