2018 Michigan Cannabis / Hemp Legislative Summary: Ban on Cannabis Infused Alcohol, Industrial Hemp, and Technical Changes

The Michigan Legislature passed ten (10) bills related to marihuana / hemp during the 2018 legislative season. The Governor signed four into law and six are with the governor for signing.

HB 4668 of 2017  (PA 346 of 2018) Ban on Cannabis Infused Alcohol

Under the new law,  Michigan breweries and wineries would be prohibited from producing adult beverages, including non-alcoholic beer and wine, that contain THC or non-hemp CBD. Supporters of the new law believe that marijuana infused alcohol will increase the liability of bartenders and bar owners. A person may not feel the effects of the marihuana right away, which would prevent the bartender from being able to assess whether an individual is visibly intoxicated.  Opponents to the new law believe that the legislature is attempting to solve a problem before it exists, and prevents Michigan from remaining competitive in the beer and wine industries. The law went into effect on October 16, 2018.

HB 5144 of 2017 (PA 10 of 2018) Amendments to the Medical Marihuana Facilities Licensing Act

The new law made clarifying amendments to the Medical Marihuana Facilities Licensing Act including, among other things:

  • Noting that accountants, financial service providers and other entities would not be subject to criminal, civil or administrative sanctions for providing services to a licensee;

  • Prohibiting the state from issuing a license unless the municipality in which the establishment will be located has adopted an ordinance that permits the activity;

  • Allow the state regulator to obtain information needed for license renewals from municipalities; and

  • Require the state regulator to establish a monthly purchase limit for medical marihuana.

The law went into effect on January 26, 2018.

HB 6422 of 2018 (PA 439 of 2018) State Inventory Tracking System

The law allows the state regulator to disclose information about a licensee that is contained in the state inventory tracking system to a financial institution. The law went into effect on December 28, 2018.

SB 1262 of 2018 Amendments to the Medical Marihuana Facilities Licensing Act
Last Action: 12/28/2018 PRESENTED TO GOVERNOR 12/27/2018 @ 1:22 PM

The enrolled bill amends the Medical Marihuana Facilities Licensing Act to provide clarity around the definition of “applicant”, and to provide the state regulator with the power to revoke a license if a licensee attempts to transfer an ownership interest to a person that is not an “applicant”. The enrolled bill also prohibits persons from holding themselves out as a facility operator unless they hold a license. Any person that causes serious injury or death by violating the Act would be guilty of a felony.

SB 1263 of 2018 Amendments fo the Sentencing Guidelines
Last Action: 12/28/2018 PRESENTED TO GOVERNOR 12/27/2018 @ 1:24 PM

The enrolled bill amends the sentencing guidelines in the Code of Criminal Procedure to include the felony proposed the Medical Marihuana Facilities Licensing Act with a statutory maximum of four years' imprisonment.

SB 1264 of 2018 State Identification Cards
Last Action: 12/28/2018 PRESENTED TO GOVERNOR 12/27/2018 @ 1:26 PM

The enrolled bills requires the Secretary of State to forward a digitized photograph of applicant for a state registry identification card to department of licensing and regulatory affairs.

HB 6330 of 2018 Industrial Hemp
Last Action: 12/28/2018 presented to the Governor 12/27/2018 @ 5:08 PM

Bill 6330 will require the Michigan Department of Agriculture and Rural Development (MDARD) to establish and oversee an industrial hemp licensing and registration program. The amendments would prohibit any person in the state, including universities, from growing industrial hemp without registering as a grower. The grower registration expires on November 30th of the year that it was issued but applications can be submitted at any time. Growers must perform testing 15 days ahead of harvest, and receive a certification that the THC levels meed the maximum thresholds. A grower registration fee of $100.00, and a $50 fee for site modifications.. The enrolled bill also requires all persons processing, handling, brokering, or marketing industrial hemp to be licensed as a processor-handler. A processor-handler license application fee of $1,350.00.

HB 6331 of 2018 Definition of Industrial Hemp and Marihuana
Last Action: 12/28/2018 presented to the Governor 12/27/2018 @ 5:10 PM

The enrolled bill exempts industrial hemp from the definition of marihuana

HB 6380 of 2018 Rulemaking to Permit Dispensaries to Sell Industrial Hemp CBD products
Last Action: 12/28/2018 presented to the Governor 12/27/2018 @ 5:12 PM

The enrolled bill requires the state regulator to adopt rules by March 2019 that permits medical marihuana dispensaries to sell industrial hemp CBD products.

HB 6421 of 2018 (PA 504 of 2018) State Identification Cards
The enrolled bills requires the Secretary of State to forward a digitized photograph of applicant for a state registry identification card to department of licensing and regulatory affairs. The law went into effect on December 28, 2018.