Bipartisan Michigan bill aims to combine adult-use and medicinal marijuana

State Representatives Graham filler (R) and Jimmie Wilson Jr. (D) has introduced a bill to modernize Michigan’s marijuana laws. House Bills 5884-85 proposes to combine recreational and medical marijuana laws under a single regulatory system under the Michigan Regulation and Taxation of Marijuana Act. This initiative is intended to simplify the regulatory process, reduce costs to businesses, and improve the efficiency of the Cannabis Regulatory Agency (CRA) in the state.

“Streamlining and simplifying these regulations is a win-win for everyone involved — from businesses to patients to regulators,” Filler said. For example, the dual regulatory system requires marijuana licensees to renew both their medical and recreational licenses every year. That creates an additional burden on operators who operate under both licenses. The proposed regulations would eliminate this duplication by requiring just one license.

Rep. Wilson added, “This is about making Michigan an attractive and stable place for marijuana businesses to thrive. A single, consistent regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for medical marijuana patients.”

Michigan Marijuana Market

Michigan has one of the most dynamic cannabis markets in the U.S. The cannabis business has seen remarkable growth since recreational legalization in late 2019. The state is projected to have $3.06 billion in sales in 2023, with $2.74 billion of that coming from recreational marijuana. That’s a 25% increase from the previous year, underscoring the market’s rapid expansion and significant economic impact. Cannabis tax revenues surpassed beer, wine, and liquor combined, totaling $266.2 million in fiscal 2023.

Michigan’s cannabis market is also highly competitive, with more than 2,100 active adult-use licenses, including 1,050 grower licenses and 734 retailer licenses. This landscape has caused prices to fall, which has benefited consumers and encouraged legal purchases. The average price of an ounce of adult-use flower has fallen from $512 in January 2020 to about $90 in December 2023. Today, 75% of consumers are choosing legal dispensaries over illegal sources.

Despite the market’s success, Michigan’s Cannabis Regulatory Agency (CRA) has faced scrutiny over its effectiveness. An audit last year uncovered concerns about delays in enforcement. If passed, the new legislation would combine the existing Medical Marijuana Facilities Licensing Act and the Michigan Regulation and Taxation of Marijuana Act into one regulatory structure. In this way, the CRA would oversee a unified regulatory framework for both recreational and medical marijuana, hopefully speeding up the process for business owners.

Key provisions of the draft law

The new plan, described in detail in the presented draft law, includes the following modifications:

1. Regulatory consolidation: The purpose of the bill is to repeal the older Medicinal Marijuana Licensing Act and integrate its provisions into a single framework.
2. Uniform licensing system: Only one licence will be required to engage in activities such as growing, processing, transporting and selling cannabis.
3. Unchanged medical access: The system for medical marijuana patients and caregivers under the Michigan Medical Marijuana Act of 2008 will remain unchanged.

“By modernizing the regulatory process, we can help businesses reduce costs and increase efficiency,” Filler said.

The bills have been referred to the House of Representatives Regulatory Reform Committee for consideration.