Five Stories That Matter in Michigan This Week – May 19, 2023

  1. Plans for Binational Electric Vehicle Corridor Announced

On Tuesday, May 16, the United States and Canada announced plans to launch a binational electric vehicle corridor stretching from Kalamazoo, Michigan, to Quebec City. The corridor will include fast EV chargers approximately every 50 miles along the 872-mile route.

Why it Matters: In announcing the plans, officials said the plan would increase domestic manufacturing, strengthen supply chains and create jobs while supporting climate and alternative energy transportation goals.

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  1. Michigan Cannabis Sales Surpass $245 Million in April

Cannabis sales peaked over $245 million in April, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $238,211,384.43, while medical sales came in at $7,842,858.60, altogether totaling $246,054,243.03.

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

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  1. May 24 Business Education Series

During this two-presentation dynamic program, attendees will learn about the SBA 504 Loan from Coty Gould with the MCDC (Michigan Certified Development Corporation), and Government Contracts from Mike Hindenach with APEX (formerly known as PTAC Procurement Technical Assistance Centers).

Why it Matters: The SBA 504 Loan presentation you will learn the basics of SBA 504 loan, the benefits and how to qualify and apply. MCDC is a non-profit certified by the US SBA to administer the SBA 504 Loan Program in Michigan. The SBA 504 loan provides small businesses with low-rate, long-term loans for building purchases, construction, and machinery and equipment. In addition, these loans require a smaller down payment than what traditional lenders can offer, allowing the business owner to preserve capital. Learn more and to register.

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  1. Fraser Trebilcock Welcomes Paula C. Spicer to the Firm

Fraser Trebilcock is pleased to announce the hiring of attorney Paula C. Spicer who will work primarily in the firm’s Lansing office.

Why it Matters: Ms. Spicer joins Fraser Trebilcock with expertise in complex real estate and commercial transactions, property tax appeals, health care facility formation, business operations, zoning law, and structuring of high-complexity laboratory facilities. Ms. Spicer also worked as an attorney in multi-family affordable housing financing through HUD (Housing and Urban Development). Learn more.

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  1. CRA Publishes April 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 $87.76, a small increase from $86.87 in March. This is still a large decrease from April 2022, where the average price was $133.19.

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

Energy, Utilities & Telecommunication | Mike Ashton
Business & Tax | Paula Spicer
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – May 12, 2023

  1. Independent Contractor Bills Introduced in Michigan House of Representatives

Are your workers properly classified? There is a package of bills in the Michigan House of Representatives that businesses should be keeping an eye on.

Why it Matters: The multi-bill package (HB 4390 et seq.) would create one of the strictest standards for defining an independent contractor. In addition to the new, stringent definition for independent contractors in Michigan, the proposed legislation would also drastically increase the penalties for misclassifying a worker. Learn more.

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  1. COVID-19 Public Health Emergency Ends

The federal COVID-19 public health emergency order that’s been in effect since the onset of the pandemic expired on May 11.

Why it Matters: With the end of the public health emergency comes the expiration of certain health care coverage options. For example, according to reporting from Bridge Magazine, up to 400,000 Michigan residents may lose Medicaid coverage, and over the counter COVID tests will no longer be required to be fully subsidized by private insurance.

  1. May 24 Business Education Series

During this two-presentation dynamic program, attendees will learn about the SBA 504 Loan from Coty Gould with the MCDC (Michigan Certified Development Corporation), and Government Contracts from Mike Hindenach with APEX (formerly known as PTAC Procurement Technical Assistance Centers).

Why it Matters: The SBA 504 Loan presentation you will learn the basics of SBA 504 loan, the benefits and how to qualify and apply. MCDC is a non-profit certified by the US SBA to administer the SBA 504 Loan Program in Michigan. The SBA 504 loan provides small businesses with low-rate, long-term loans for building purchases, construction, and machinery and equipment. In addition, these loans require a smaller down payment than what traditional lenders can offer, allowing the business owner to preserve capital. Learn more and to register.

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  1. Sixth Circuit: Employee Must Alert Employer of Need for Reasonable Accommodation to Bring a Claim of Disability Discrimination

In the case of Hrdlicka v. General Motors, the Sixth Circuit Court of Appeals upheld a lower court ruling that an employee must sufficiently inform their employer of their need for a reasonable accommodation in order to prosecute a claim of disability discrimination under state and federal law.

Why it Matters: This case serves as an important reminder that while employers must be responsive and engaged when an employee requests a reasonable accommodation for a disability, there is also a responsibility for employees to inform their employers of a disability. In this case, the plaintiff’s “purported disability was unknown to either herself or General Motors until well after her employment was terminated.”

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  1. Limitations of Federal Bankruptcy Law for Marijuana Businesses

Under the federal Controlled Substances Act, marijuana remains classified as a Schedule I drug, making it illegal at the federal level. This creates a unique challenge for marijuana businesses operating legally within their state’s framework.

Why it Matters: Federal bankruptcy courts have been reluctant to provide relief to debtors engaged in activities that are illegal under federal law, even if those activities are legal under state law. As a result, marijuana businesses are often left without the benefits of bankruptcy protection, such as the automatic stay, discharge of debts, and court-supervised reorganization.

Related Practice Groups and Professionals

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