Tag: CRA

Five Stories That Matter in Michigan This Week – February 14, 2025

  1. Large Michigan Cannabis Operator Temporarily Shutters Part of its Operations Due to Market Challenges

Pincanna, which has retail cannabis outlets in East Lansing, Kalamazoo, and Kalkaska, recently announced that it is temporarily closing the greenhouse portion of its cultivation operation (located in Bay County) and laying off part of its workforce.

Why it Matters: One of the company’s co-founders cited an oversupply of cannabis in Michigan, which has created a highly competitive and unsustainable market, as the driving force behind the decision. Despite record sales of product, many Michigan cannabis operators have struggled to remain profitable due to falling prices.

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  1. Governor Whitmer Unveils Proposed Tax Increases to Fund Roads

This week, Governor Whitmer released a proposal that seeks $3 billion in a long-term plan that will lower vehicle repair costs, invest $1 billion in local roads and $250 million in transit.

Why it Matters: Among the components of the proposal, it seeks to close the gap in road funding, ensuring each dollar paid at the gas pump is invested back into the road infrastructure. Additionally will require businesses, specifically Big Tech, to pay more in taxes for doing business in Michigan, and to introduce a wholesale tax on the marijuana industry.

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  1. Latest Product Recall from Michigan CRA on Vapes Containing MCT Oil

On February 11, 2025, the Michigan Cannabis Regulatory Agency released a bulletin on a voluntary product recall on certain vapes from the brand BLOOM Classic and BLOOM Live that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

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  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – January 31, 2025

  1. Michigan Marihuana Administrative Rules Proposed Changes Available for Review

The Michigan Cannabis Regulatory Agency has published proposed changes to the administrative rules (R 420.1 to R 420.1005). A public hearing on these proposed changes is, according to the CRA, supposed to take place early this year.

Why it Matters: The proposed changes (which are summarized by the CRA here) are extensive and, if enacted, will affect licensing, financial compliance, monitoring, and other important issues.

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  1. Michigan Senate Still Reviewing Bills on Minimum Wage, Paid Sick Leave

Last week, the Michigan House of Representatives passed HB 4001 and 4002, which addressed the coming changes to the minimum wage law and the Earned Sick Time Act (ESTA), respectively, which are set to go into effect on February 21, 2025. The bills were sent to the Senate for consideration, which at this moment, has yet to act on them.

Why it Matters: This comes in response to a significant Michigan Supreme Court from last summer that reimplemented a citizen initiated law mandating raising minimum wage to $15 by 2028,  phasing out the tipped minimum wage system, and requiring paid sick time for nearly every Michigan worker.

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  1. Michigan Cannabis Eclipses $10 Billion to Date

Michigan cannabis sales have exceeded $10 billion to date, since the state began selling adult-use marijuana in December 2019. In 2024 alone, the state made over $3 billion in sales of adult-use marijuana.

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. Governor Whitmer Signs New Law Requiring Businesses to Display Resources Poster for Veterans

This week, Governor Whitmer signed into law a new act, called, “veteran’s employee resources act,” that now requires businesses to display a poster in a conspicuous place that has information related to veterans’ services, such as military/veterans’ affairs, mental health and substance abuse services, and tax benefits.

Why it Matters: This act will go into effect April 2, 2025. Businesses will need to display the proper information poster, or face repercussions if they do not.

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  1. Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction

Last week, the United States Supreme Court granted the government’s request to lift the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). However, in response to the Supreme Court’s order, FinCEN has provided the following guidance.

Why it Matters: As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Read more.

Related Practice Groups and Professionals 

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

Five Stories That Matter in Michigan This Week – January 17, 2025

  1. Michigan House to Form Committee to Address Tipped Wage and Sick Leave Policies

The Michigan House of Representatives is set to create the Select Committee on Protecting Michigan Employees and Small Businesses, with the intention of addressing upcoming changes to the state’s minimum wage and paid sick leave requirements.

Why it Matters: The committee formation comes in response to a significant Michigan Supreme Court ruling from last summer, which found that the Legislature’s 2018 “adopt and amend” strategy – where they adopted citizen-led initiatives only to substantially weaken them – was unconstitutional. This decision mandated the implementation of the original ballot initiatives, including raising minimum wage to $15 by 2028 and eliminating the tipped minimum wage system, unless new legislative action is taken.

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  1. Michigan CRA Publishes December ’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 December was $69.20, a decrease from $71.80 in November. This is a decrease from December 2023, where the average price was $95.08.

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 CRA Files New Formal Complaint Against Adult-Use Marijuana Processor Business

On January 7, 2025, the Michigan Cannabis Regulatory Agency filed a new formal complaint against Sky Labs, LLC, an adult-use marijuana processor, alleging multiple counts of violations ranging from illegally combining marijuana and marijuana product into another marijuana product in addition to not providing the proper certificate of analysis (COA), to handling marijuana product outside of a licensed facility and not registering product into the state’s tracking system.

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. Business Education Series: Your Comprehensive Guide to Driving Employee Engagement

The workforce is facing challenges like talent shortages and quiet quitting, making it crucial to attract, engage, and retain employees. With 75% of turnover preventable, employers who create engaging environments focused on essential needs can better retain and attract talent.

Why it Matters: During the January Business Education Series, facilitated by Cheryl Kuch, Senior Consultant, Rehmann, discover what top organizations do to foster engagement and gain best practices to protect your most valuable asset—your people. Hosted at the Lansing Regional Chamber of Commerce. More information.

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  1. 13 Fraser Trebilcock Attorneys Honored by Leading Lawyers for 2025

Thirteen Fraser Trebilcock attorneys have been selected for inclusion in the list of Michigan’s ​Leading Lawyers for 2025, a distinction earned by fewer than five percent of all lawyers licensed to practice law in Michigan.

Why it Matters: Those selected include: H. Kirby Albright, Commercial Litigation; Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Michael S. Ashton, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; Douglas J. Austin, Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Real Estate Law: Finance; Michael E. Cavanaugh, Commercial Litigation; Employment Law: Management; Governmental, Municipal, Lobbying & Administrative Law; Labor Law: Management; Michael P. Donnelly, Commercial Litigation; Jennifer Utter Heston, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; David J. Houston, Employment Law: Management; Mark E. Kellogg, Closely & Privately Held Business Law; Tax Law: Individual; Trust, Will & Estate Planning Law; Thaddeus E. Morgan, Commercial Litigation, Construction Law; Melisa M.W. Mysliwiec, Elder Law; Michael H. Perry, Environmental Law; Gary C. Rogers, Bankruptcy & Workout Law: Commercial; Creditor’s Rights/Commercial Collections Law; Marlaine C. Teahan, Trust, Will & Estate Planning Law. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – August 30, 2024

  1. Cannabis Regulatory Agency Releases Disciplinary Schedule

The CRA recently released a “disciplinary schedule” of different types of marijuana business violations and the corresponding fines and other penalties. The schedule comes, as reported by Crain’s Detroit Business, following complaints from the cannabis industry in Michigan about “uneven and arbitrary disciplinary actions.

Why it Matters: The schedule provides more clarity about the impact of taking or failing to take certain actions required to operate a licensed cannabis business in Michigan, such as a $10,000 fine for failing to submit required financial statements to the state in a timely manner.

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  1. FTC Non-Compete Prohibition on Hold Again

Briefly, the FTC issued a Final Rule, scheduled to go into effect on September 4, 2024, placing limitations on non-compete and related employer contracts or policies. That rule has been reviewed by three courts. Previously, the Northern District of Texas invalidated the rule as beyond the authority of the FTC to issue, but issued an injunction barring enforcement of the rule only with respect to the parties to that litigation.

Why it Matters: U.S. District Judge Ada Brown, sitting in the Northern District Court in  Texas, has now held the rule invalid as “arbitrary and capricious.” In comparison to her first ruling, however, this court issued a national injunctive order barring enforcement of the rule in all United States federal court jurisdiction. Ryan LLC v. FTC. LINK. As a result, employers are not required to follow the Final Rule. The duration of this order and status is unknown, but can be expected to be several months or longer, or possibly permanent.

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  1. Intellectual Property and Rebranding: What Business Leaders Need to Know

Rebranding a business is exciting. It’s often done at a time of growth and transformation, such as a merger or acquisition, when a business is launching an important new product, entering a new geographic market, or trying to appeal to a new customer demographic. Whether you’re updating your logo, changing your company name, or overhauling your entire brand identity, it’s a big step that can lead to great opportunities.

Why it Matters: But before you dive into the creative process, it is crucial to consider the intellectual property (IP) law implications of a rebrand. Your brand is one of your most valuable assets, and rebranding involves important legal considerations that can impact your business’s future. In this article, we’ll walk you through some key IP issues you need to consider when rebranding. These considerations will help you protect your new identity and avoid costly legal pitfalls along the way. Read more.

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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

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

Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | David Houston
Business & Tax | Andrew Martin
Intellectual Property | Andrew Martin
John Fifarek

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 – May 24, 2024

1.Michigan Supreme Court Endorses Third-Party Retaliation Claims

On May 10, 2024, in Miller v. Dep’t of Corrections, the Michigan Supreme Court endorsed third-party retaliation claims under the Elliot-Larsen Civil Rights Act. This decision aligns Michigan with the 2011 U.S. Supreme Court ruling that Title VII’s anti-retaliation provision covers third-party retaliation claims, even though the statute does not explicitly recognize such a theory.

Why it Matters: This ruling significantly expands the potential number of retaliation claimants to include third parties. As a result, employers in Michigan may face an increased number of retaliation claims. The exact parameters of what constitutes a sufficient connection for these claims will need to be clarified by lower courts in future cases.

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2.DEA Recommends Cannabis Rescheduling: Developments and Implications for the Industry

The industry may soon experience a major shift, as the Drug Enforcement Administration (DEA) moves to reschedule cannabis to Schedule III. This decision follows a recommendation from the Department of Health & Human Services (HHS), which is supported by scientific evidence reviewed by the FDA.

Why it Matters: The expected rescheduling of cannabis to Schedule III will have notable implications for cannabis businesses. The removal of cannabis from I.R.C. Section 280E will provide significant tax relief for state-legal cannabis operators, and the possibility of increased banking access could enhance the industry’s financial stability and growth potential. Nevertheless, cannabis companies will continue to face certain limitations stemming from the persistent federal prohibition of cannabis. Read more from your Fraser Trebilcock attorney.

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3.Michigan CRA Publishes April ’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 April was $86.61, a decrease from $90.70 in March. This is a decrease from April 2023, where the average price was $87.76.

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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4.June Business Education Series

Most entrepreneurs and business leaders face similar frustrations – employee conflicts, lack of sales, profit woes and inadequate growth. Decisions never seem to get made, or, once made, they fail to be properly implemented. There is a solution, and it is not complicated or theoretical.

Why it Matters: The Entrepreneurial Operating System (EOS) is a practical method for achieving the business success you have always envisioned. More than 100,000 companies have discovered what EOS can do. Learn more and to register.

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5.Fraser Trebilcock’s Growth Continues with Grand Rapids Office Relocation

Fraser Trebilcock Davis Dunlap & Cavanaugh, P.C., one of Michigan’s well established law firms with a history of providing excellent legal services, is pleased to announce it has relocated its Grand Rapids office. This move is a testament to the firm’s continued ability in taking a proactive approach in providing comprehensive legal solutions across a wide range of practice areas, helping clients capitalize on potential opportunities.

Why it Matters: In late April, Fraser Trebilcock’s Grand Rapids office moved to 300 Ottawa NW Suite 810, located within walking distance of all downtown restaurants, entertainment venues, museums, municipal buildings, and the Medical Mile. The office offers the full range of the firm’s legal services, including litigation, business, tax, real estate, trusts and estates, and other areas of specialty. Clients can expect the same level of professionalism and personalized attention that Fraser Trebilcock is known for. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston

Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – May 10, 2024

  1. Fraser Trebilcock’s Growth Continues With Grand Rapids Office Relocation

Fraser Trebilcock Davis Dunlap & Cavanaugh, P.C., one of Michigan’s well established law firms with a history of providing excellent legal services, is pleased to announce it has relocated its Grand Rapids office. This move is a testament to the firm’s continued ability in taking a proactive approach in providing comprehensive legal solutions across a wide range of practice areas, helping clients capitalize on potential opportunities.

Why it Matters: In late April, Fraser Trebilcock’s Grand Rapids office moved to 300 Ottawa NW Suite 810, located within walking distance of all downtown restaurants, entertainment venues, museums, municipal buildings, and the Medical Mile. The office offers the full range of the firm’s legal services, including litigation, business, tax, real estate, trusts and estates, and other areas of specialty. Clients can expect the same level of professionalism and personalized attention that Fraser Trebilcock is known for. Read more.

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  1. DOL Finalizes Rule to Raise Overtime Salary Threshold

The Department of Labor (DOL) recently announced a final rule that will significantly increase the annual salary threshold required to classify employees as exempt under the Fair Labor Standards Act (FLSA). The rule will raise the minimum salary requirement in two stages, from the current level of $35,568 per year to $43,888 per year on July 1, 2024, and then to $58,656 per year on January 1, 2025, with recalculations every three years thereafter.

Why it Matters: The DOL estimates that the rule will impact approximately 1 million employees initially and another 3 million employees after the second salary increase. Employers must now decide whether to increase salaries to maintain exempt status for affected employees or reclassify them as non-exempt workers entitled to overtime pay, considering factors such as overtime hours worked, labor costs, and administrative burdens.

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  1. CRA Issues Bulletin Regarding THCA

The Cannabis Regulatory Agency recently issued a bulletin to answer questions regarding tetrahydrocannabinolic acid (“THCA”), its status, and how businesses in the state can obtain and possess THCA.

Why it Matters: THCA is a non-intoxicating cannabinoid that is converted into THC when it goes through the process of decarboxylation (increasing temperature between 200-290 degrees). Under the Michigan Regulation and Taxation of Marihuana Act, THCA is included in the definition of THC. Licensees can obtain and sell marijuana that contains THCA, and they are allowed to convert THCA into THC as long as they abide by state laws under the MRTMA.

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  1. June Business Education Series

Most entrepreneurs and business leaders face similar frustrations – employee conflicts, lack of sales, profit woes and inadequate growth. Decisions never seem to get made, or, once made, they fail to be properly implemented. There is a solution, and it is not complicated or theoretical.

Why it Matters: The Entrepreneurial Operating System (EOS) is a practical method for achieving the business success you have always envisioned. More than 100,000 companies have discovered what EOS can do. Learn more and to register.

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  1. Fraser Trebilcock Attorney Robert D. Burgee Recognized as a ‘Michigan Go To Lawyer’ for Business Transactions by Michigan Lawyers Weekly

Fraser Trebilcock attorney Robert D. Burgee has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ in 2024 for business transactions. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for business transactions,” said Bob.

Why it Matters: Mr. Burgee serves as Co-Chair of the firm’s Business & Tax Department and Chair of the firm’s Employee Benefits Department. He has over a decade of experience assisting business clients and entrepreneurs with startups, acquisitions, succession, and growth planning, as well as more general legal guidance, including navigating civil matters, regulatory compliance, employee benefits, and human relations. Read more.

Related Practice Groups and Professionals

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

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

  1. New Michigan Law Mandates Compulsory Arbitration for Higher Education Police Officers

Michigan’s law regarding compulsory arbitration of public labor disputed has been amended to include higher education institution police officers. The change takes effect on January 22, 2024.

Why it Matters: Higher education institutions should assess the impact the new law may have on their workforce.

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  1. Fraser Trebilcock Welcomes Phyllis Dahl to the Firm

We are pleased to announce the hiring of Phyllis Dahl as the firm’s new Office Manager.

Why it Matters: Ms. Dahl has over three decades of experience in the legal industry, having worked at two private law firms before joining Fraser Trebilcock. She has a bachelor’s degree in public administration from Central Michigan University. Read more.

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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. Michigan Cannabis Pulls in Nearly $280 Million in December

Cannabis sales are just below $280 million in December, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $276,732,645.94, while medical sales came in at $3,177,042.62, totaling $279,909,688.56.

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. CRA Publishes December 2023 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sales of an ounce of cannabis in December was $95.08, a small decrease from $97.51 in November. For the second time, this is an increase to the average price when compared to the year prior, when in December 2022, the average price was $90.68.

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. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Phyllis Dahl
Employee Benefits | Bob Burgee
Employee Benefits
Cannabis Law | Sean Gallagher

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

  1. Cannabis Regulatory Agency Announces $1 Million Social Equity Grant Program

Michigan’s Cannabis Regulatory Agency (CRA) announced a $1 million grant program to applicants who have a recreational marijuana license, have eligible Social Equity Program participants, and participate in the CRA’s “Social Equity All-Star Program.”

Why it Matters: The program is intended to encourage participation in the industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement.

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  1. Fraser Trebilcock Welcomes Danielle Lofton to the Firm

We are pleased to announce the hiring of attorney Danielle Lofton who will work primarily in the firm’s Lansing office, focusing her practice on insurance defense.

Why it Matters: Ms. Lofton represents clients with personal injury claims including no-fault cases for several years. She has routinely secured early dismissals through successful motions and negotiated favorable settlements for her clients. Learn more.

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  1. Department of Labor Issues New Rule on Independent Contractors

This week, the US Department of Labor issued a new rule modifying its analysis for determining whether a worker is an employee, or an independent contractor under the Fair Labor Standards Act. The final rule is effective on March 11, 2024.

Why it Matters: We previously reported on the Department of Labor publishing a Notice of Proposed Rulemaking regarding classification of employee or independent contractor under the FLSA. Under this final rule effective on March 11, 2024, it will provide clearer guidance for employers and how they determine their workers’ classifications, and further protect employees from misclassification.

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  1. Fraser Trebilcock Attorney Andrew J. Moore Elected to Board of Directors of Catholic Bar Association

We are pleased to announce that attorney ​Andrew J. Moore has been elected to the Board of Directors for the Catholic Bar Association, a national bar association with members in all 50 states. “I am honored to be elected to the Board of Directors, and I look forward to continuing the mission of the Catholic Bar Association,” said Andrew Moore.

Why it Matters: Andrew focuses his practice on general litigation matters, insurance defense, estate and trust administration, real estate transactions, family law, and criminal defense. His experience covers a range of practice areas, from out of court matters such as assisting clients in estate planning and business and tax matters to representing clients at trial in insurance, divorce, and criminal defense proceedings. He also serves on the Board of Directors of the Lansing Catholic Lawyers Guild. Read more.

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  1. Independent Citizens Redistricting Commission Required to Redraw Seven House Districts

A three-judge panel ordered this week that the Independent Citizens Redistricting Commission redraw seven state House districts by February 2nd, after it was ruled unconstitutional.

Why it Matters: Last year, a group of voters sued the Independent Citizens Redistricting Commission alleging that the Commission had violated the federal Voting Rights Act by drawing maps that impacted black voters’ opportunity to elect their preferred candidates.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Insurance Law | Danielle Lofton
Labor, Employment & Civil Rights | David Houston
Litigation | Andrew Moore
Election Law

Five Stories That Matter in Michigan This Week – November 24, 2023

  1. Michigan Minimum Wage Set for Small Increase for 2024

Michigan’s minimum wage is set to increase on January 1, 2024, per the Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases. The minimum hourly wage will increase to $10.33 per hour; the 85% rate for minors aged 16 and 17 will increase to $8.78 per hour; the tipped employee rate of hourly pay increases to $3.93 per hour; and the training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

Why it Matters: As we approach the new year, t’s important to be aware of new laws, and changes to existing laws, that are set to take effect as of January 1, 2024. Contact us with any questions.

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  1. Streamline Corporate Transparency Act Reporting with a FinCEN Identifier

The Financial Crimes Enforcement Network (FinCEN), announced and elaborated on the use and availability of FinCEN identifiers. Under this new guidance, FinCEN identifiers may be crucial for business owners, particularly for those managing multiple entities.

Why it Matters: A FinCEN identifier is a unique number assigned by FinCEN to individuals and reporting companies, streamlining the reporting process under the CTA. Businesses will need to be prepared come 2024 for the new reporting requirements. Learn more from your Fraser Trebilcock attorneys.

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  1. Michigan Cannabis Sales Exceed $262 Million in October

Cannabis sales surpassed $262 million in October, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $258,474,612.51, while medical sales came in at $4,416,590.58, totaling $262,891,203.09.

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. Package of Clean Energy Bills Head to Governor’s Whitmer’s Desk

A package of bills, including one that would require companies to make 100% of their energy through renewables such as solar and wind by 2040, and also seeks to reduce energy waste, among other objectives, is on its way to Governor Whitmer’s desk for signature after passing both the Senate and House.

Why it Matters: Clean energy legislation is a major priority for Michigan Democrats but is opposed by Republicans and has received pushback from many business groups, who argue the legislation would increase energy costs.

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  1. CRA Issues Bulletin for Product Recall

On November 20, the Cannabis Regulatory Agency (CRA), issued a bulletin for a voluntary product recall, after it was discovered that the product exceeds the maximum dosage of 10mg of THC per serving.

Why it Matters: It is important for cannabis producers to adhere to the rules and regulations when handling medical and adult-use cannabis, otherwise they can face product recalls and fines and/or penalties.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher
Energy, Utilities & Telecommunication | Sean Gallagher