Citing safety concerns and the lack of scientific and public health data, on April 15, 2022, the Michigan Cannabis Regulatory Agency (CRA) dropped its plan to allow hemp to be synthetically converted to THC.
The decision was handed down just days after the regulatory body was renamed from the Marijuana Regulatory Agency and assumed authority over hemp-derived products, pursuant to Governor Whitmer’s Executive Order No. 2022-1.
According to draft rules proposed earlier this year, hemp growers would have been permitted to sell hemp to marijuana processors, who could then convert it to THC for use in edibles, vaping cartridges, and other products being sold in the licensed marijuana market.
While safety was cited as the primary reason for dropping the proposal, issues related to business and competition likely also influenced the CRA’s decision. Specifically, hemp growers, including out-of-state growers, could have posed a new competitive threat to the state’s existing marijuana industry.
Currently, licensed businesses are permitted to extract THC oil from marijuana. If the CRA’s plans to allow hemp to be synthetically converted to THC were to proceed, it could lead to the existing producers going out of business.
If you have any questions about the impact of this decision by the CRA, or the cannabis industry in general in Michigan, please contact Klint Kesto or your Fraser Trebilcock attorney.
Fraser Trebilcock attorney and former Michigan State Legislator Klint Kesto has nearly two decades of experience working in both the public and private sectors, including serving as Co-Chair of the CARES Task Force. You can reach him at email@example.com or 517.377.0868.