Michigan Governor Considers Cannabis Regulatory Agency and Tribal Business Bills

Recently, two cannabis bills were sent to Governor Gretchen Whitmer’s desk, and if passed, they would allow the Cannabis Regulatory Agency (CRA) to do business with local Native American cannabis businesses, and vice versa.

Currently, state-licensed cannabis and tribal cannabis businesses must operate separately and are not permitted to trade or do business with each other. Senate Bill 179 and Senate Bill 180 would allow these two different parts of the industry to interact.

“According to the Committee’s testimony, the CRA-regulated marijuana industry and businesses operated by tribal members on tribal lands are currently in two separate silos, meaning the product cannot be sold between these businesses,” the analysis says. “The bills are intended to allow the sale of products between the two types of businesses while maintaining a level playing field by requiring tribal businesses to pay the same tax rate as other businesses.”

SB-180, sponsored by Senator Roger Hauck, would allow the CRA to enter into an agreement with an Indian tribe “on marijuana-related regulatory issues affecting the interests of Michigan and the Indian tribe, including those related to commercial cultivation.” Processing, selling, testing, transporting and possessing marijuana.” Tribal businesses would be exempt from the state’s 10% excise tax on cannabis, but would instead impose a 10% tribal tax.

It also contains a section clarifying that the execution of these agreements is not unlawful. “The law currently provides that certain actions taken by licensees are not unlawful; no offense; no reason to confiscate or forfeit property; no grounds for arrest, prosecution or punishment in any way; no grounds for search or inspection except as permitted by law; and no reason to deny any other right or privilege.”

SB-179, sponsored by Senator Jeff Irwin, amends state law to pass a portion of state cannabis tax revenue to tribes that allow state-licensed cannabis businesses on their lands. “The bill would provide that if a marijuana retailer or microbusiness is located on Indian lands, that portion of the unspent amounts attributable to the marijuana retailer or microbusiness and otherwise to a municipality and county as described above would have been assigned to the Indian tribe on whose Indian land the marijuana retailer or microbusiness is located.”

Both SB-180 and SB-179 must be passed to be effective. Indian tribes supporting this include the Grand Traverse Band of Ottawa and Chippewa Indians, the Saginaw Chippewa Indian Tribe, as well as the CRA, Common Citizen (a Michigan-based cannabis brand), and the Michigan Cannabis Industry Authority.

Numerous other bills related to cannabis or psychedelics have also been considered by lawmakers recently. In July, the Michigan Civil Service Commission passed a rule banning most government employees in the state from conducting cannabis drug screenings. Commissioner Nick Ciaramitaro said implementing the new rule is long overdue. “Whether we agree with it or not is kind of out of the question,” Ciaramitaro said. “Using marijuana in the workplace is different than if you had used it months before the test… It makes no sense to limit our ability to hire qualified people because they took a gummy bear two weeks ago.” The rule went into effect in force on October 1st.

In September, Michigan lawmakers passed a resolution calling on Congress, the Department of Defense and the Department of Veterans Affairs to “prioritize research and investment in non-technological treatment options for service members and veterans who have suffered psychological trauma as a result of military service.” “.

The resolution also addresses how “effective treatments for these conditions vary from soldier to soldier” when it comes to psychedelic treatments.

It also emphasizes the importance of supporting veterans’ family members as well, stating that “resources should be made available to help them understand and assist their loved ones who may be suffering from psychological trauma.” Family members of military members or veterans with behavioral health problems may experience family violence and aggression, lower satisfaction with parenting, and behavioral problems in children.”

A new bill introduced earlier this month focuses on cannabis for students in kindergarten through 12th grade. If passed, it would allow cannabis for medical purposes on campus as long as two medical professionals provide written approval. In addition, teachers would supervise the administration of the medication.

In August, the Michigan Cannabis Regulatory Agency reported that cannabis revenues hit a record high, reaching $276 million in July. Despite high sales, many cannabis companies have reported low profits. National Cannabis Industry Association senior economist Beau Whitney explained the impact of approving new licenses leading to endless competition. “It’s kind of a race to the bottom, as they call it,” Whitney said. “Prices are going down, down and down because there is so much competition, but at some point prices will not be able to go down any further.”