Significant changes in Michigan’s cannabis regulatory framework go into effect on April 13, 2022, following Governor Whitmer’s Executive Order No. 2022-1.
Pursuant to the Executive Order, the Marijuana Regulatory Agency, which oversees marijuana growing, processing, and sales, will become the Cannabis Regulatory Agency (the “Agency”).
And the authorities, powers, duties, functions, and responsibilities of the Department of Agriculture and Rural Development to license and regulate processor-handlers under the Industrial Hemp Research and Development Act are being transferred to the Agency to be administered by the Agency. While the Agency will begin overseeing the processing, distribution and selling of hemp products, such as CBD, the Department of Agriculture and Rural Development will continue to oversee hemp cultivation.
An article in Crain’s Detroit Business which discusses the changes wrought by the Executive Order, also speculates about the possibility of more stringent regulations on CBD products. Andrew Brisbo, executive director of the Michigan Regulatory Agency, is quoted as saying “nothing will change” in the short term, and that “changes that will potentially come will be through a legislative process.”
Brisbo suggests that changes will focus on CBD products meant for human consumption, and that such products will “likely…be put through some kind of testing regime.”
We will continue to monitor these developments and keep you informed about other changes impacting Michigan’s cannabis industry. If you have any questions, please contact Paul Mallon or your Fraser Trebilcock attorney.