Michigan Marihuana Regulations Update: 4 Things You Need to Know

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Michigan Marihuana Regulations Update: 4 Things You Need to Know

October 24, 2017

Michigan Representative Klint Kesto introduced legislation that will provide some guidance to the states’ soon to be expanding medical cannabis industry. Filed last week, HB 5144 seeks to amend several sections of the Medical Marihuana Facilities Licensing Act, specifically targeting items like initial inventory, product transportation, the creation of the states marihuana advisory panel, and the distribution of excise taxes collected. Here are the 4 things Michigan licensees need to know about the proposed bill:

Initial Inventory

Newly licensed cannabis growers will have 30 days to source, transport, and enter inventory into the states monitoring system. Licensed growers are allowed the following initial plant counts based on their License Class.

  • Class A- 500 plants
  • Class B- 1000 plants
  • Class C- 1500 plants

Another interesting note, for the next 3 years each facility is required to employ an individual with at least 2 years of experience acting as a primary caregiver. If a caregiver is employed by a licensed facility they are precluded from offering services to patients, this applies to grow and processing license types.


When transporting cannabis there are 2 classifications under HB 5144, secure and non-secure. Secure Transportation has a specific license type, is authorized to move cannabis and cannabis derivatives, and reports future movements to local law enforcement. Secure transportation events must be logged in the state monitoring system. Non- secured transportation happens between licensed facilities on the same property such as moving mature plants from a cultivation area to a processing area within the same secured facility.

Advisory Panel

Overseeing the entire regulated cannabis system will be a 17 member advisory panel representing various facets of both law enforcement and the industry itself. The bill calls for a 3-year term and counts on the Governor to appoint replacements should panel members leave their post. While the advisory panel will be charged with impacting policy, they will not have sway over the states Medical marihuana Excise Fund, that responsibility of the state Treasury.

Tax Disbursement

Of the fees collected, which will include taxes and citations, 25% will go to the municipality, 30% will go to the county, and 30% to the state. The remaining 15% is dedicated to training law enforcement, supporting local sheriffs, and funding the state police.

It’s likely that further legislation will create additional alterations, in the cannabis industry is practically inevitable. Regardless, as regulations change and politicians sway, BioTrackTHC will be available to provide guidance and advice for cannabis companies who prioritize compliance and data security.

For more information on the Michigan Marihuana industry, click here.


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