Five Stories That Matter in Michigan This Week – November 17, 2023

  1. Withdrawing Your Employee Retention Credit Claim: Navigating the New IRS Process

The ERC is a refundable tax credit intended for businesses that kept employees on their payroll while facing economic hardships caused by the pandemic. However, not long after its introduction, issues surfaced. Some businesses, influenced by the aggressive marketing of ERC promoters, have filed claims without fully meeting the eligibility criteria, leading to a slew of inaccurate claims.

Why it Matters: In order to provide a safe harbor to those entities that may have filed such false or inaccurate claims, the IRS has established a new withdrawal process. This measure is designed to aid businesses in re-evaluating the accuracy of their ERC claims and wish to avoid the penalties and other complications of incorrect filings. Learn more from your Fraser Trebilcock attorney.


  1. CRA Suspends Licenses of Medical and Adult-Use Marijuana Processor

On November 15, the Cannabis Regulatory Agency (CRA) suspended the medical and adult-use marijuana processor licenses of Michigan Investments 10, Inc, after it was determined that both businesses violated various administrative rules.

Why it Matters: After onsite inspections and reviews of the statewide monitoring system (Metrc) data, the CRA discovered that the businesses incorrectly entered data into the monitoring system and failed to properly track large quantities of product as well as other violations.


  1. CRA Publishes October 2023 Data: Average Price Hovers

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sales of an ounce of cannabis in October was $97.62, a decrease from $100.14 in September. This is still a decrease from October 2022, where the average price was $102.65.

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


  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.


  1. Corporate Transparency Act Takes Effect January 1, 2024

The federal Corporate Transparency Act (the “CTA”) takes effect on January 1, 2024. It will require many companies, including small businesses, to report certain beneficial ownership information to the Financial Crimes Enforcement Network, which is a division of the Treasury Department. We previously summarized key aspects of the CTA in a post on our blog, which you can find here.

Why it Matters: Willful failure to file an initial or updated report with FinCEN is subject to a $500/day fine (up to $10,000) and imprisonment for up to two years. If you have any questions about your compliance obligations, filing deadlines, or any other questions, please contact your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Business & Tax | Robert Burgee
Business & Tax | Paul McCord
Cannabis Law | Sean Gallagher
Energy, Utilities & Telecommunication | Sean Gallagher

Five Stories That Matter in Michigan This Week – June 16, 2023

  1. Changes to Michigan’s Elliott-Larsen Civil Rights Act

Employers should be aware of recent actions taken by the Michigan legislature with respect to Michigan’s Elliott-Larsen Civil Rights Act (ELCRA). Governor Whitmer recently signed into law an amendment that extends the ELCRA’s prohibitions against discrimination to individuals who have terminated a pregnancy. On June 8, 2023, the Michigan House of Representatives voted to pass, which amends the definition of race within ELCRA to ban discrimination based on hair and other traits associated with racial or ethnic identity. Governor Whitmer is expected to sign this bill into law.

Why it Matters: Lawmakers who introduced the bills argue that the legislation will increase access to support services for domestic and sexual violence victims, and also will protect their privacy and shielding them from additional harassment.


  1. CRA Publishes May 2023 Data, Average Price Hovers

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $90.64, a small increase from $87.76 in April. This is still a large decrease from May 2022, where the average price was $130.62.

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.


  1. Fraser Trebilcock Attorney Obtains Dismissal for Firm Client

Fraser Trebilcock attorney Jared Roberts recently obtained a dismissal in a circuit court case brought against a brokerage and salesperson.

Why it Matters: In this case, which involved interpretation of transaction documents, a county “Time of Sale” well and septic inspection ordinance and water quality issues, Mr. Roberts obtained dismissal in the first responsive document. Learn more about their practice and how they may be able to assist.


  1. Detroit Mayor Unveils Land Value Tax Plan

At the Mackinac Policy Conference in May, Detroit Mayor Mike Duggan announced a proposal, called the Land Value Tax Plan, that if passed, would change property taxes while encouraging economic growth across Detroit.

Why it Matters: According to the plan laid out online, if enacted, would replace certain tax rates for homes and property structures with a higher rate of tax on land, with the purpose of targeting unused, unproductive, or vacant land while providing benefits to homeowners and businesses.


  1. CRA Revokes License for Marijuana Business for Illicit Products

The Michigan Cannabis Regulatory Agency announced on June 15 that it was revoking the license for marijuana business Candid Labs, which operates as Layercake Farms 2, after they were found to have illicit and unlicensed marijuana, in addition to other license violations including an inoperable video surveillance system.

Why it Matters: A requirement that every marijuana business must adhere to is properly working video surveillance system that is in place 24 hours a day, seven days a week, at all licensee locations. Failure to comply will result in fines, possible license suspension and/or license being revoked. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts

Five Stories that Matter in Michigan This Week – September 16, 2022

  1. Small Michigan Cannabis Growers Ask State to Stop Issuing Grow Licenses

Small cannabis businesses “overwhelmingly” asked the Michigan Cannabis Regulatory Agency to stop issuing new grow licenses (at least temporarily) at the CRA’s recent public quarterly meeting, according to They also requested that the number of plants any business can grow be capped at 10,000, and that there be better enforcement of black-market sales.

Why it Matters: Despite sales of recreational marijuana growing 126% over the last year, recreational marijuana flower prices have sunk 47% over the last period. Accordingly, while there is clearly demand, many businesses will struggle to be profitable if prices continue to tumble.


  1. U of M Study Finds that Wind and Solar Industries Could Fully Replace Jobs Lost at U.S. Coal-Fired Power Plants

A recent University of Michigan study found that the wind and solar industries could fully replace the number of lost jobs at U.S. coal-fired power plants that are expected to close to meet emission-reduction targets.

Why it Matters: The recently enacted Inflation Reduction Act includes substantial funding for wind and solar energy tax incentives. The bill is intended to spur growth and investment in clean energy projects across the country. Michigan has recently seen growth in jobs in the energy sector. In fact, the state ranked first in the nation for energy job growth in a recent U.S. Department of Energy report. Michigan added more than 35,000 energy-sector jobs from 2020 to 2021.


  1. Automotive Edge Talking Point at Auto Show

On Wednesday, Governor Whitmer and other elected officials spoke at the 2022 North American International Auto Show in Detroit, highlighting key investments in the automotive industry aimed to keep Michigan maintaining its automotive edge.

Why it Matters: Governor Whitmer focused on recently secured investments such as the $7 billion investment with GM to build batteries in the state, and a $3.2 billion investment from Ford that adds 3,200 jobs across Southeast Michigan in advanced mobility.


  1. Brian Hanna Named CRA’s Acting Executive Director

On Thursday, September 15, Governor Whitmer appointed Brian Hanna as acting Executive Director of the state’s Cannabis Regulatory Agency while a nationwide search for a permanent executive director ensues.

Why it Matters: Following the departure of Andrew Brisbo last month who accepted a position as Director of Michigan’s Bureau of Construction Codes, Brian Hanna fills the role until a permanent hire takes place. The state is seeing prices of marijuana continue to drop, calling for changes to occur in the market as businesses struggle to maintain profits.


  1. Michigan Plans Statewide Electric Vehicle Charging Network

Michigan submitted a plan to deploy $110 million over the next five years to install quick-charging stations for electric vehicles across the state. The plan was required to receive funds under last year’s federal Infrastructure Investment and Jobs Act.

Why it Matters: Given the credits available for the purchase of electric vehicles under the federal Inflation Reduction Act, there are likely to be even more electric vehicles on the road, and a new charging infrastructure will likely help Michigan attract more of those drivers to its roads for tourism and other purposes.

Related Practice Groups and Professionals

Energy, Utilities & Telecommunication | Michael Ashton
Business & TaxEd Castellani
Cannabis Law | Sean Gallagher