Cannabis Business in Michigan

Michigan’s cannabis industry has grown into a key driver of the state’s economy, with substantial growth in both adult-use and medical marijuana sales from 2020 to 2023. In 2023, sales peaked in December, nearing $280 million, significantly outpacing earlier years. The state’s competitive pricing and consumer demand have set it apart, generating $169.4 million in excise tax revenue during the 2021-2022 fiscal year, making Michigan a standout player in the U.S. cannabis industry.

Michigan's cannabis industry is overseen by the Cannabis Regulatory Agency (CRA). Additionally, the Michigan Department of Treasury is responsible for the allocation of marijuana funds collected under the Michigan Regulation and Taxation of Marihuana Act.

Medical Marijuana in Michigan

The CRA monitors medical marijuana facilities and licensees in compliance with the Medical Marihuana Facilities Licensing Act (MMFLA). This agency provides various resources, including an online map illustrating the locations of active facility licenses across Michigan. Moreover, the CRA offers a search tool that helps individuals locate provisioning centers that are authorized to provide home delivery services.

Adult-Use (Recreational) Marijuana in Michigan

Michigan also has a regulated adult-use (recreational) marijuana market. The CRA manages this sector, ensuring the industry operates within the legal framework established by the state.

Michigan Cannabis Business Licenses

Michigan offers several plant-touching licenses that allow businesses to cultivate, process, or sell cannabis products:

• Class A Marijuana Grower – Authorizes the cultivation of up to 100 marijuana plants.
• Class B Marijuana Grower – Authorizes the cultivation of up to 500 marijuana plants.
• Class C Marijuana Grower – Authorizes the cultivation of up to 2,000 marijuana plants.
• Marijuana Microbusiness – Allows the cultivation, processing, and sale of marijuana products at a limited scale.
• Marijuana Processor – Permits the processing of raw cannabis into products such as oils, edibles, and concentrates.
• Marijuana Retailer – Licensed to sell cannabis products directly to consumers.

Industrial Hemp in Michigan

Any person involved in the marketing of industrial hemp in Michigan needs to be licensed as a processor-handler by the CRA. This license, which runs annually from December 1 to November 30, costs $1,350. Some activities that require a processor-handler license include:

• Processing raw industrial hemp into a marketable form.
• Possessing, storing, or transporting industrial hemp.
• Brokering industrial hemp by acting as an intermediary between buyers and sellers.
• Promoting or selling industrial hemp.

Individuals involved in specific activities, such as cleaning hemp seeds or manufacturing hemp products using another processor's product, would also need a processor-handler license. However, sampling and testing hemp alone does not require a license.

While there are currently no recordkeeping requirements for hemp processor-handlers, this is subject to change when the Industrial Hemp Research and Development Act is updated. It is recommended that anyone considering a cannabis business for sale or looking to establish a cannabis business speak with an attorney to understand the legal implications fully. For those seeking more information on hemp grower licenses, Michigan Department of Agriculture and Rural Development (MDARD) is the appropriate contact.

CBD Businesses in Michigan

The Michigan Department of Agriculture and Rural Development states that CBD products made from industrial hemp with a THC concentration below 0.3% are legal to process and sell in Michigan for topical use.

Legal CBD Products in Michigan

The following CBD products are legal to process and sell in Michigan:

• CBD Oil (labels cannot state it is for human consumption)
• Soap
• Cosmetics (as defined by FDA)

Illegal CBD Products in Michigan

The following CBD products are not legal to process and sell in Michigan:

• Products for animal feed
• Dietary supplements
• Drugs
• Food and beverages for human consumption
• Beer and wine

It's important to note that these regulations may change as the FDA is currently developing a regulatory framework for CBD products. In addition to obtaining the necessary licenses, CBD businesses in Michigan must also adhere to all other relevant state and federal laws.