Michigan Cannabis Industry

 

Michigan first legalized medical cannabis in 2008. The state has approved medicinal cannabis for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), cachexia or wasting syndrome, cancer, chronic pain, Crohn’s disease, glaucoma, HIV or AIDS, hepatitis C, nail-patella syndrome, nausea, post-traumatic stress disorder (PTSD), seizures, and severe and persistent muscle spasms. Registered patients were legally allowed to purchase and possess up to 2.5 ounces of ‘useable marijuana’ or cultivate up to 12 cannabis plants. Cannabis business plan template

In September 2016, the Michigan cannabis industry Legislature passed, and governor signed into law three bills (House Bills 4209, 4827 and 4210 to amend the previous medical cannabis law to allow for production of infused products and edibles) that created a licensing and regulatory framework for medical cannabis.

The new laws created three classes of growers: people who can grow up to 500 plants, up to 1,000 plants or up to 1,500 plants. The state can charge no more than $10,000 fees per license for the class of growers who cultivate up to 500 plants.

The Act requires licenses for the cultivation, manufacture, distribution, transportation, laboratory testing, and sale of medical cannabis. The Department of Food and Agriculture is responsible for issuing cultivation licenses; the Department of Public Health is responsible for issuing manufacturing licenses; and the Bureau of Medical Cannabis Regulation within the Department of Consumer Affairs is responsible for issuing distribution, transportation, laboratory testing, and dispensary licenses. Communities can decide whether and where they will allow dispensaries to operate and charge an annual fee of up to $5,000 per dispensary. How much does it cost to grow cannabis

As of December 31, 2021, there were 237,741 medical cannabis patients and 28,275 caregivers in Michigan; 458 (336 in 2020) active licenses for provisioning centers; 670 (352) growers; 120 (71) processors; 27 (28) transporters and 19 (15) licenses for testing facilities.

Based on MRA data, METRIC system reports $474,029,956.27 of total medical cannabis sales in 2020 and $481,226,508.58 in 2021 (48% for flowers, 37% for concentrates, 13% for infused products and 2% for trim/shake).

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