Michigan House Weighs Crackdown on Illicit Cannabis and New Concentrate Limits

26 October 2025

Michigan’s House Regulatory Reform Committee reviewed a series of cannabis bills that aim to strengthen penalties for illegal production, define possession limits for concentrates, and expand the Cannabis Regulatory Agency’s authority.

House Bill 5105, introduced by Rep. Pauline Wendzel, would update penalties for unlicensed manufacturing. It outlines weight and plant-based thresholds that appear designed to distinguish large-scale operations from personal grows. Misdemeanor penalties would apply to 10 to 25 kilograms, 50 to 100 plants, or 1 to 2.5 kilograms of concentrate. Higher quantities would fall under felony ranges, with a maximum of ten years for more than 250 kilograms, 1,000 plants, or 25 kilograms of concentrate. The bill is linked to HB 5107, requiring both to pass together.

House Bill 5107, sponsored by Rep. Mike Hoadley, proposes a 200-gram limit for concentrates while maintaining the 12-plant homegrow and 10-ounce in-residence flower limits. Violations would be treated as misdemeanors without mandatory jail time, unless violence or clear commercial intent were involved. Supporters suggest the measure could bring more consistent enforcement on personal possession.

Two other measures address regulatory powers. House Bill 5104 would allow the Cannabis Regulatory Agency (CRA) to continue disciplinary action after a license expires, closing what regulators have described as an enforcement gap. House Bill 5106 would permit immediate suspension when conduct threatens public health, safety, or welfare. Examples include untagged products, missing records, or concealed inventory. The agency could also act against former license holders.

During testimony, a CRA official noted that Michigan may attract unlicensed operators because penalties remain low. He mentioned large outdoor grows observed in some rural areas. Local prosecutors supported the package, citing worker safety and reports of labor violations. The committee chair referred to the state’s debated 24 percent cannabis tax and said stronger oversight could help licensed firms competing with illegal sellers.

The committee did not advance the bills for a vote. Supporters argue that higher penalties and broader CRA powers could reduce illicit supply and protect compliant businesses. Others questioned whether tougher enforcement, combined with high taxes, might drive more consumers to unregulated markets. The overall impact on prices and retail activity is likely to depend on how the CRA enforces new rules.

• For patients and adult consumers, the main change would be the 200-gram cap on concentrates, creating uniform standards across the state.
• For licensed operators, extended CRA authority after license expiration and faster suspensions may increase pressure to maintain clear records and track inventory accurately. The agency has already described these areas as major compliance risks.

Michigan Cannabis Enforcement Bill Summary