Five Stories That Matter in Michigan This Week – August 23, 2024

  1. Michigan to Receive $129 Million in Federal Funds for Renewable Energy 

It was recently announced that Michigan will receive $129 million in federal funds to accelerate the siting, zoning and permitting of large-scale renewable energy projects. The funds will come from the federal Inflation Reduction Act’s Climate Pollution Reduction Grant program.

Why it Matters: Michigan, like many other states, has set aggressive goals to decarbonize its electric grid over the next decade.

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  1. Strategic Alliance Announced Between Fraser Trebilcock and Cheltenham Law

Fraser Trebilcock Davis Dunlap & Cavanaugh P.C. is excited to announce a strategic alliance with Cheltenham Law, PLLC. As both firms have a strong presence in the Greater Lansing and Detroit regions, this collaboration brings together two prominent law firms seeking to strengthen their opportunities in Michigan.

Why it Matters:  Cheltenham Law offers clients the full spectrum of legal representation and guidance in matters such as divorce, custody, criminal defense, and estate planning. This arrangement allows Fraser Trebilcock to use its knowledge and expertise in the areas of family law, criminal defense, and estate planning, among others, to enhance its presence in the Greater Lansing and Detroit regions. Read more.

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  1. Fraser Trebilcock Welcomes John R. Fifarek to the Firm

Fraser Trebilcock is pleased to announce the hiring of attorney John R. Fifarek who will work primarily in the firm’s Lansing office.

Why it Matters: Mr. Fifarek is an attorney with over four decades of experience in real estate matters advising property owners, developers, buyers, sellers, commercial landlords and tenants in the development, sale, purchase and leasing of property, environmental, land use and planning matters, and in court and administrative proceedings. Learn more.

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  1. Michigan CRA Publishes July ’24 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in July was $79.70, a decrease from $85.88 in June. This is a decrease from July 2023, where the average price was $98.65.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

Related Practice Groups and Professionals

John Fifarek
Energy, Utilities & Telecommunication | Sean Gallagher
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – August 16, 2024

  1. Student Can’t Bring an ELCRA Hostile Environment Claim Against School Due to Harassment from Another Student

In Doe v Alpena Public School District, the Michigan Supreme Court recently ruled that a school cannot be held liable on a theory of vicarious liability under the Elliott-Larsen Civil Rights Act for student-on-student misconduct.

Why it Matters: The Court’s ruling draws a distinction between the employment context, where such vicarious liability claims are permitted, and the school context for actions taken by non-employees, such as students.

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  1. Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

Why it Matters: Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant. Learn more.

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  1. Michigan Cannabis Exceeds $287 Million in July ‘24

Cannabis sales surpassed $278 million in July, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $286,388,987.71, while medical sales came in at $1,354,084.70, totaling $287,743,072.45.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

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  1. IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

Why it Matters: According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.” Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher
Business & Tax | Robert Burgee
Business & Tax | Paul McCord

Five Stories That Matter in Michigan This Week – August 9, 2024

  1. Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

Why it Matters: Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant. Learn more.

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  1. IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

Why it Matters: According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.” Read more.

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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

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  1. Michigan Cannabis Regulatory Agency Set to Ban MCT Oil

In a recent technical bulletin from the CRA, effective October 1, 2024, “MCT (medium-chain triglyceride) oil will be added as a target analyte for marijuana vape cartridges as part of the Sampling and Testing Technical Guidance for Marijuana Products.

Why it Matters: MCT oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. Businesses will need to adhere to the new testing parameters and begin to eliminate MCT oil from their products before October 1, 2024, if not sooner in a proactive manner.

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  1. DOL Issues Bulletin to Wage and Hour Field Staff Regarding AI Use in Workplace

The United States Department of Labor recently issued a Field Assistance Bulletin to its Wage and Hour Division field staff regarding the application of the Fair Labor Standards Act (FLSA) and other federal labor standards as employers increasingly use artificial intelligence (AI) and other automated systems in the workplace. For example, the bulletin advises that, “Reliance on automated timekeeping and monitoring systems without proper human oversight, however, can create potential compliance challenges with respect to determining hours worked for purposes of federal wage and hour laws.”

Why it Matters: As AI use becomes more pervasive across businesses, employers must be aware that their use of AI can create legal compliance challenges, and that regulatory agencies are paying attention to these issues.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert Burgee
Business & Tax | Paul McCord
Cannabis Law | Sean Gallagher

IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

During the processing freeze, the IRS conducted an extensive review of ERC claims. The results of this investigation have raised significant concerns and shed light on the scale of potentially fraudulent or erroneous claims. According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” While not as clearly problematic as the high-risk group, these claims have raised red flags that the agency believes warrant further scrutiny. The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.”

What This Means for Business Owners

If you’ve filed an ERC claim or are considering doing so, here’s what you need to know:

  1. Claims Filed Before September 14, 2023: If you submitted your ERC claim before the moratorium started on September 14, 2023, the IRS states that no additional information or action is required from you at this time. These claims will continue to be processed on a first-in, first-out basis, and taxpayers should await further notification from the IRS.
  2. Claims Filed On or After September 14, 2023: If you submitted your claim on or after this date, your claim is expected to remain in the processing queue at the IRS indefinitely. The IRS has not provided a timeline for when these claims might be addressed.
  3. Preparing for Potential Audits: Given the high level of scrutiny the IRS is applying to these claims, business owners should be prepared for the possibility of audits or requests for additional information, even if their claims are eventually approved.

If you’re concerned about the status of your claim, have been contacted by the IRS about your claim, or have other questions about the claims process, please contact your Fraser Trebilcock attorney.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Headshot of Fraser Trebilcock attorney Paul V. McCordFraser Trebilcock attorney Paul V. McCord has more than 20 years of tax litigation experience, including serving as a clerk on the U.S. Tax Court and as a judge of the Michigan Tax Tribunal. Paul has represented clients before the IRS, Michigan Department of Treasury, other state revenue departments and local units of government. He can be contacted at 517.377.0861 or pmccord@fraserlawfirm.com.

Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

Background:  Adopt and Amend Unauthorized 

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In support of the legislature’s authority, the minority noted that there is nothing in the Michigan constitution limiting that authority. The majority found the legislature’s action to have been a usurpation of the right of the voters to initiate and effectively implement new legislation. The ruling reinstates two ballot initiative measures affecting Michigan workers. Much more will be written about this aspect of the decision, however, the bottom-line for Michigan employers is: Employees are going to be more costly and more difficult to manage within the law.

What This Means for Businesses

The case involved the “Wage Act” proposing changes to minimum wage and overtime laws, and the “Earned Sick Time Act.” In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025. The “standard” minimum wage for non-tipped employees will increase to an adjusted rate, calculated by the state treasurer, of more than $12 per hour. Tipped workers, the percentage that businesses pay will increase to 48%. By this formula, the minimum wage will increase each year until 2029, when the tipped and non-tipped minimum wages will be the same.

Earned sick time leave will also see an overhaul for both large and small employers. Employers with more than 10 employees must provide 72 hours of paid sick time leave, and employers with less than 10 employees must provide 40 hours of paid sick time leave annually and 32 hours of unpaid leave. Employees, including part-time and seasonal, will receive one hour of paid medical leave for every 30 hours worked, up to 72 hours per year. This is an increase from the previous maximum of 40 hours per year. Additionally, employers with less than 50 employees are no longer exempt from having to offer earned sick time leave.

Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant.

If you’re concerned about these changes or have questions, please contact David J. Houston or your Fraser Trebilcock attorney.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. You can read the full Opinion here.

Attorney David J. HoustonFraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – August 2, 2024

  1. DOL Issues Bulletin to Wage and Hour Field Staff Regarding AI Use in Workplace

The United States Department of Labor recently issued a Field Assistance Bulletin to its Wage and Hour Division field staff regarding the application of the Fair Labor Standards Act (FLSA) and other federal labor standards as employers increasingly use artificial intelligence (AI) and other automated systems in the workplace. For example, the bulletin advises that, “Reliance on automated timekeeping and monitoring systems without proper human oversight, however, can create potential compliance challenges with respect to determining hours worked for purposes of federal wage and hour laws.”

Why it Matters: As AI use becomes more pervasive across businesses, employers must be aware that their use of AI can create legal compliance challenges, and that regulatory agencies are paying attention to these issues.

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  1. Michigan Supreme Court Rules Against “Adopt and Amend”

In Mothering Justice v Attorney General, a 105-page. 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018.

Why it Matters: In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

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  1. Michigan CRA Files Formal Complaint Against Adult-Use Marijuana Processor

The Michigan Cannabis Regulatory Agency recently filed a formal complaint against Sky Labs LLC, an adult-use marijuana processor, alleging that the business received THCA isolate from an out-of-state business to convert to marijuana distillate and disguised the purchase in the METRC monitoring system as Sky Labs LLC does not have the proper license to convert THCA isolate to marijuana distillate.

Why it Matters: The CRA intends to impose fines and/or other sanctions against Sky Labs, LLC, which include suspension, restriction, or revocation, of the business’s license.

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  1. Federal Judge Upholds FTC Ban on Non-Compete Agreements

A federal judge recently denied a tree-trimming company’s bid to block the FTC’s ban on non-compete agreements, following the agency issuing the final rule in April, which is set to take effect on September 4, 2024.

Why it Matters: Under the final rule, “Non-compete clause” is defined as “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from: (i) seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or (ii) operating a business in the United States after the conclusion of the employment that includes the term or condition.” The final rule covers all entities subject to the FTC Act (generally, most for-profit entities, but not non-profit organizations). Read more from your Fraser Trebilcock attorneys.

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  1. Michigan Supreme Court Rules that Condo Association Owes Duty of Care to Co-Owners for Premises Liability

In a ruling on July 11, 2024, the Michigan Supreme Court overturned previous case law and redefined the legal relationship between condominium associations and their co-owners with respect to premises liability.

Why it Matters: The Court ruled that when using common areas of the condominium, a co-owner is deemed to be an invitee. This classification requires the condominium association to exercise reasonable care to protect co-owners from hazardous conditions in these shared spaces. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher
Real Estate | Andrew Moore

Five Stories That Matter in Michigan This Week – July 26, 2024

  1. No Ballot Measures Have Been Approved for the November Election in Michigan

While most of the attention on the upcoming election has been focused on the presidential candidates, one thing that’s noteworthy is that there may be no ballot initiatives for Michigan voters to consider on November 5, 2024.

Why it Matters: There have been a number of high-profile statewide ballot initiatives in recent years, including ones related to marijuana legalization, an independent redistricting commission, election rules and abortion rights. Proposals to eliminate property taxes in Michigan and to raise the minimum wage to $15 by 2027, as well as other petition drives undertaken this year have failed.

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  1. Second Quarter Cannabis Sales Top First Quarter in Michigan

The last three months of cannabis sales in Michigan have equaled $836,999,633.86, an increase of over $40 million compared to the first three months of cannabis sales in 2024 for Michigan, which equaled $792,692,363.81.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market oversaturation that the industry is contending with.

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  1. Michigan Cannabis Exceeds $278 Million in June ‘24

Cannabis sales surpassed $278 million in June, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $277,404,034.21, while medical sales came in at $1,436,084.60, totaling $278,840,118.81.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Michigan Supreme Court Rules that Condo Association Owes Duty of Care to Co-Owners for Premises Liability

In a ruling on July 11, 2024, the Michigan Supreme Court overturned previous case law and redefined the legal relationship between condominium associations and their co-owners with respect to premises liability.

Why it Matters: The Court ruled that when using common areas of the condominium, a co-owner is deemed to be an invitee. This classification requires the condominium association to exercise reasonable care to protect co-owners from hazardous conditions in these shared spaces. Learn more.

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Real Estate | Andrew Moore
Professional Licensing | Robert Andretz

Michigan Supreme Court Rules that Condo Association Owes Duty of Care to Co-Owners for Premises Liability

In a ruling on July 11, 2024, in the case of Janini v. London Townhouses Condominium Association, Docket No. 164158, the Michigan Supreme Court overturned previous case law and redefined the legal relationship between condominium associations and their co-owners with respect to premises liability. The Court ruled that when using common areas of the condominium, a co-owner is deemed to be an invitee. This classification requires the condominium association to exercise reasonable care to protect co-owners from hazardous conditions in these shared spaces.

Background

The case began when Daoud Mousa Janini, a co-owner and resident of a condominium unit managed by London Townhouses Condominium Association, suffered injuries after falling on a snow- and ice-covered sidewalk within the common area of the condominium complex. Janini and his co-plaintiffs filed a lawsuit against the association, which is responsible for managing and maintaining the common elements of the complex, including sidewalks and parking lots.

The trial court initially allowed the premises liability claim to proceed, but the Michigan Court of Appeals reversed this decision, following the precedent set in Francescutti v Fox Chase Condo Ass’n. 312 Mich. App. 640 (2015). However, the Michigan Supreme Court took a different view, ultimately overturning both the Appeals Court ruling and the Francescutti precedent.

The Supreme Court’s Decision

The Supreme Court determined that a co-owner of a condominium unit should be considered an invitee when using the common elements of the condominium. This classification is crucial in premises liability law, as it imposes a higher duty of care on the property possessor. As a result, the Court ruled that condominium associations have a duty to exercise reasonable care in protecting co-owners from dangerous conditions in common areas.

The Court emphasized that the critical factor in premises liability cases is not land ownership (co-owners have a shared property interest in condo common elements) but rather who has possession and control over the property. In condominium settings, co-owners cede control of common elements to the association, justifying the association’s duty of care to a co-owner as invitee, according to the Court.

Implications of the Ruling

Co-owners now have a path to pursue premises liability claims against their condominium associations for injuries sustained in common areas, significantly strengthening their legal position in such disputes. Conversely, condominium associations now face an expanded duty of care towards co-owners, necessitating a reevaluation of their operational practices, including enhanced maintenance and safety protocols.

There are also important implications for insurance companies who provide coverage for condominium associations. They will need to reassess their coverage policies and premium structures for condominium associations. The increased potential for liability claims may necessitate higher coverage limits to adequately protect associations from the financial risks associated with premises liability lawsuits. This expanded liability exposure could potentially lead to increased premiums, as insurers adjust their risk calculations to account for the new legal standard.

The Bottom Line

The Janini v. London Townhouses Condominium Association decision marks a significant shift in Michigan condominium law by recognizing co-owners as invitees in common areas and imposing a corresponding duty of care on associations.

This Supreme Court decision represents a continuation of the obvious intent of this State’s highest Court (given its current make-up) to increase the ability of persons injured to pursue lawsuits. In the end, the Janini decision will result in higher insurance premium costs to condominium associations which in turn will be passed along as increased condominium dues to individual condominium owners.

The Plaintiff’s bar will likely benefit the most from our Supreme Court’s current efforts to open the door to personal injury lawsuits which had previously been barred.

If you have any questions or require assistance, please contact Andrew J. Moore or your Fraser Trebilcock attorney.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Attorney Andrew J. Moore

Andrew J. Moore is an attorney at Fraser Trebilcock with experience covering a range of practice areas, from auto and property insurance defense, commercial, construction, and probate and trust litigation, and general civil litigation, including business and family matters. You can reach him at 517.377.0848 or at amoore@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – July 19, 2024

  1. Whitmer Signs Election Recount Bills into Law

On July 8, 2024, Gov. Whitmer signed Michigan Senate bills 603 and 604 into law, which modify the requirements for conducting ballot recounts and prosecuting election-related crimes. For example, boards of canvassers will now be required to refer any allegations of fraud to the relevant county prosecutor, rather than conducting a recount.

Why it Matters: The new laws are effective immediately and will apply to upcoming August primary races.

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  1. Michigan Cannabis Sales Through Six Months of 2024 Eclipses $1.6 Billion

Through the first six months of sales in 2024, Michigan cannabis sales have totaled $1,629,691,997.67, an increase from 2023’s six month totals, which equal $1,426,137,854.75.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market oversaturation that the industry is contending with.

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  1. Michigan CRA Publishes June ’24 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in June was $85.88, a decrease from $88.15 in May. This is a decrease from June 2023, where the average price was $89.27.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Proposed Michigan Legislation to Attract Data Centers Is Frozen After Pushback from Environmental Groups

Proposed legislation to expand tax incentives aimed at attracting large data centers to Michigan is stopped for now after pushback from environmental groups that claim the bills would increase energy demands, potentially causing consumer rates to increase, while standing in the way of Michigan achieving its clean energy goals.

Why it Matters: While the bills are halted for now, it is anticipated that supporters of the legislation will continue to push for the bills to pass. The bills would create a new sales and use tax exemption for “enterprise data centers.”

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Professional Licensing | Robert Andretz

Five Stories That Matter in Michigan This Week – July 12, 2024

  1. Proposed Bipartisan Legislation Would Streamline Michigan Cannabis Market Regulatory Oversight

Recently introduced Michigan House Bills 5884-85 would merge the regulations for recreational and medical marijuana into a single regulatory framework. For example, the legislation would require only one license for activities such as growing, processing, transporting, or selling cannabis.

Why it Matters: The legislation seeks to streamline and simplify the regulatory process, lower costs of compliance for businesses, and improve efficiency for the state’s Cannabis Regulatory Agency.

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  1. Michigan Cannabis Regulatory Agency Set to Ban MCT Oil

In a recent technical bulletin from the CRA, effective October 1, 2024, “MCT (medium-chain triglyceride) oil will be added as a target analyte for marijuana vape cartridges as part of the Sampling and Testing Technical Guidance for Marijuana Products.”

Why it Matters: MCT oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. Businesses will need to adhere to the new testing parameters and begin to eliminate MCT oil from their products before October 1, 2024, if not sooner in a proactive manner.

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  1. Client Alert: PCORI Fees Due by July 31, 2024!

In Notice 2023-70, the Internal Revenue Service set forth the PCORI amount imposed on insured and self-funded health plans for policy and plan years that end on or after October 1, 2023, and before October 1, 2024.

Why it Matters: Notice 2023-70 sets the adjusted applicable dollar amount used to calculate the fee at $3.22. Specifically, this fee is imposed per average number of covered lives for plan years that end on or after October 1, 2023, and before October 1, 2024. For self-funded plans, the average number of covered lives is calculated by one of three methods: (1) the actual count method; (2) the snapshot method; or (3) the Form 5500 method. Learn more from your Fraser Trebilcock attorney.

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

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  1. Fraser Trebilcock Shareholder Sean P. Gallagher Recognized as a ‘Michigan Go To Lawyer’ for Cannabis Law by Michigan Lawyers Weekly

Fraser Trebilcock Shareholder Sean P. Gallagher has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ in 2024 for cannabis law. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for cannabis law,” said Sean.

Why it Matters: Michigan Lawyers Weekly’s program honors leading lawyers in a particular field of law as nominated by their peers. Michigan’s Go To Lawyers identifies and recognizes the top lawyers across the state in a given practice area. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Professional Licensing | Robert Andretz