• Thomas Lavigne

MI Cannabis Industry Set For Explosive Growth

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

● Composting

● 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:


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


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Lawyers Who Roll The Right Way®

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