Tag: medical marijuana

Five Stories That Matter in Michigan This Week – October 6, 2023

  1. House Bills Would Allow Students Access to Medical Marijuana on School Grounds

“Jayden’s Law,” Michigan House Bills 5063 and 5064, would apply only to non-smokable medical marijuana. It would allow both public and private schools to administer medical cannabis on school grounds, subject to certain requirements, including a written treatment plan provided by the child’s caregiver, supervised administration by a designated staff member, and annual proof of the students’ medical marijuana cards.

Why it Matters: Michigan has allowed minors to access medical marijuana as registered patients for more than a decade. Such use, however, is prohibited while at school or school events. Backers of the legislation argue that students who use medical marijuana but must check out and back into school to do so, miss classroom instructions or extracurricular activities.

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  1. U.S. Supreme Court Clarifies Legal Standard for Threatening Speech in Counterman V. Colorado

The U.S. Supreme Court’s recent ruling in Counterman v. Colorado addressed the longstanding ambiguity surrounding the standards for criminal prosecution based on perceived threats of violence.

Why it Matters: The Court held that such a prosecution requires proof that the defendant subjectively understood the threatening nature of the statement such that making the statement was at least reckless. This case not only delves deep into First Amendment protections but also has broad implications for online communications and interactions. Read more from your Fraser Trebilcock attorney.

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  1. Fraser Trebilcock Attorney Thaddeus Morgan Selected to Serve on State Bar of Michigan’s U.S. Courts Committee

Fraser Trebilcock attorney Thaddues Morgan was selected to serve on the State Bar of Michigan’s U.S. Courts Committee for the 2023-24 Bar Year. Attorney volunteers are vital for the State Bar to continue providing exceptional service to the legal profession, the public, and the state.

Why it Matters: The State Bar of Michigan’s U.S. Courts Committee provides advice and recommendations concerning the State Bar’s interaction with federal courts in Michigan and on practice of law in those courts. Learn more.

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  1. Employee Benefits Attorney

Fraser Trebilcock is seeking applications for a position in our Firm from well-qualified attorneys with strong experience in employee benefits, including employer sponsored retirement plans, employee health plans and general ERISA compliance.

Why it Matters: The successful candidate should have a solid and portable client base. Fraser will consider candidates who may lack a portable client base provided they have a solid background in these practice areas and demonstrate an aptitude for client service and growth. Learn more and to apply.

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  1. Business Education Series – Maximizing Productivity: Strategies for More Effective Workdays

Productivity is a habit and it’s something you can become better at every day by choosing the methods and tricks that work for you.

Why it Matters: In the October Business Education Series program, Emmie Musser, Future of Work Strategist with TechSmith, is going to discuss some tried-and-true strategies for more productive and effective workdays. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Criminal Law | Paula Spicer
Litigation | Thaddeus Morgan

Five Stories that Matter in Michigan This Week – July 22, 2022

  1. COVID, Force Majeure, and Frustration of Purpose

Courts have rejected COVID-related force majeure and frustration of purpose arguments on the reasoning that the pandemic and its effects were foreseeable. Now in its third year, disruptions related to the pandemic are no longer unforeseeable and businesses should take note.

Why it Matters: COVID-related frustration of purpose and force majeure are not cure-alls, and courts will not take these arguments at face value. However, with the right facts, frustration of purpose or force majeure arguments can be successful. Businesses should take positive steps to ensure that their interests are protected if/when COVID comes knocking again.

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  1. Proposed Short-Term Rental Legislation Remains Stuck in Michigan House

Local communities will be limited in their ability to regulate short-term housing rentals if a bill passed by the Michigan House of Representatives, House Bill 4722 (“HB 4722”), becomes law. However, the bill remains on hold in the Michigan House, as powerful interest groups—local governments and Michigan realtors, in particular—remain at odds over the bill.

Why it Matters: The bill restricts local communities from adopting or enforcing zoning ordinance provisions that have the effect of prohibiting short-term rentals. On the one hand, local governments argue that the bill would undermine local control over zoning. On the other hand, realtors argue that the bill would dampen the real estate market. A lot is at stake, as Michigan homeownersreportedly made more than $250 million from Airbnb rentals alone in 2021.

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  1. Decreased Costs Trending for Medical Marijuana Licenses

Last month the Cannabis Regulatory Agency (CRA) announced that medical marijuana facilities that need to renew their license or obtain a new license will pay less in fees for the upcoming fiscal year. Fees for each class and type of business have been reduced, a trend that started last year when the CRA reduced fees for this current fiscal year.

Why it Matters: As the number of medical licensees in the state continue to grow, associated costs of getting a new license or renewing are decreasing. If you have any questions or seeking to acquire a medical marijuana license, contact our cannabis attorneys.

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  1. New Law Allows Non-Profit Corporation to be a Member of Limited Liability Company

Senate Bill 926 was recently signed into law by Governor Whitmer, which changes the definition of a person in the limited liability company act, allowing nonprofit corporations to be members of limited liability companies (“LLC”).

Why it Matters:  Michigan now joins other states that allow nonprofits to create LLCs that do not involve any financial gain or profit to perform certain functions while still maintaining their nonprofit status.

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  1. Paid Sick Leave and Minimum Wage Laws Up in Air

Following the ruling by the Michigan Court of Claims recently, the “adopt and amend” strategy taken on by Michigan’s legislature in 2018 to find a compromise for two ballot initiatives which would have increased the minimum wage and enacted a paid sick leave law, was deemed unconstitutional.

Why it Matters: It is anticipated that the Michigan legislature will appeal the decision and request a stay. If the decision is not reversed, then changes will go into effect immediately. The state’s minimum wage will increase to $12 an hour, tipped employees will receive an increase, and nearly every size and type of business will receive 72 hours per year of paid sick time leave.

Related Practice Groups and Professionals

Litigation | Matthew Meyerhuber

Real Estate | Jared Roberts

Cannabis | Klint Kesto

Business & Tax | Ed Castellani

Labor, Employment & Civil Rights | Aaron Davis

October Updates: Legal and Regulatory Developments Impacting the Michigan Cannabis Industry

In a burgeoning industry such as legal cannabis in Michigan, one of the things you can count on is a frequently changing legal and regulatory landscape. There were several noteworthy developments in October that those competing in the industry should be aware of.

Michigan House Committee Advances Bills that Would Impose More Stringent Regulations on Medical Marijuana Caregivers

On October 26, 2021, the Michigan House of Representatives Regulatory Reform Committee approved a package of bills that would limit the amount of marijuana that caregivers could grow, store and distribute.

In a previous article, we outlined the key changes the new legislation would impose on caregivers, including the creation of a new specialty medical grower license that includes a variety of regulations, if signed into law. One change that was added to the bills before passage in the committee was adding language that allows unlicensed caregivers to serve up to five patients from their primary residence, but only allow them to grow 24 marijuana plants at their home. Beyond that, a specialty medical grower license would be required.

We will continue to keep you updated on this legislation as it moves to the full House for a vote.

Movements to Decriminalize Psychedelics Gain Momentum on a Local Level

Efforts to decriminalize the possession and use of naturally occurring psychedelics are gaining steam in Michigan.

Proposal E, which would decriminalize personal possession and therapeutic use of entheogenic plants by adults, is on the November 2nd ballot in Detroit.

In Grand Rapids, city commissioners recently voted to affirm a resolution that declares “support for state and federal legislative efforts that would decriminalize entheogenic plants and fungi.”

In Ann Arbor, the city council passed a resolution to make enforcement of laws prohibiting certain psychedelics a low priority.

There are also efforts to decriminalize psychedelics taking place at the state level. Senate Bill 631 has been introduced which would decriminalize entheogenic plants and fungi across Michigan.

Key Congressional House Committee Approved Bill to Federally Legalize Marijuana

While it happened in September (September 30), it’s worth noting in this October update that the U.S. House of Representatives Judiciary Committee approved the Marijuana Opportunity, Reinvestment and Expungement Act, which would federally legalize marijuana and promote social equity.

The bill would:

  • Remove marijuana from the Controlled Substances Act (CSA),
  • Enable people with cannabis convictions to have their records expunged
  • Create a federal tax on marijuana to support community reinvestment and other programs

The passage of the bill came one week after the full House of Representatives voted in favor of a defense spending bill that includes an amendment that would protect banks that serve cannabis businesses in states where they legally operate from being penalized by federal regulators.

We will continue to keep you apprised of further legal and regulatory developments. In the meantime, if you have any questions or require assistance, please contact Paul Mallon or your Fraser Trebilcock attorney.

mallon-paulPaul C. Mallon, Jr.  is Shareholder and Chair of Fraser Trebilcock’s cannabis law practice. You can reach him at pmallon@fraserlawfirm.com or (313) 965-9043. 

Medical Marijuana: State of Michigan Outlines New Procedures and Requirements for Medical Marijuana Facility Licensing

Medical Marijuana: State of Michigan Outlines New Procedures and Requirements for Medical Marijuana Facility Licensing

Michigan Marijuana LawIn less than a week, the state of Michigan will start accepting medical marijuana license applications. The Department of Licensing and Regulatory Affairs (LARA) released emergency rules on Monday, December 4, 2017, outlining procedures and requirements for potential licensees. The emergency rules are effective for at least the next six months, and could be extended for another six months as LARA continues the promulgation process for permanent rules.

Many of the items addressed in the rules have already been discussed by the Bureau of Medical Marihuana Regulation (BMMR) during licensing board meetings occurring earlier this year. Nevertheless, and by way of background, last year the state enacted its Medical Marijuana Facilities Licensing Act (MMFLA) to regulate dispensaries and clarify the legality of edible products in Michigan. The law allows licensed dispensaries to operate in communities that choose to allow them. Growers, processers, testing facilities, and transporters are also subject licensure and regulation under the act.

While the MMFLA took effect last year – December 20, 2016 — it included a built-in delay in implementation of 360 days to enable the state to establish the licensing system required by the Act. A person cannot apply to the state for a license of any kind under the MMFLA until Friday, December 15, 2017. And, no one can apply to the state for a license of any kind under the MMFLA unless the municipality where the person is located adopts an ordinance authorizing that type of facility.

Applying for a Medical Marijuana Facilities License

First and foremost under the newly released emergency rules, those seeking a license under the MMFLA will be able to submit applications on December 15, 2017. Applicants will have to pay a $6,000 fee per license application and undergo extensive background checks for anyone who has ownership interest. The background checks will include submitting fingerprints and a handwriting exemplar to the state.

The rules require licensee to meet certain capitalization requirements. The requirements range from $150,000 to $500,000. A retail operation — called a provisioning center – carries a $300,000 capitalization requirement, which must be proven through attested financial statements.

Only 25 percent of the capital required needs to be in liquid assets, cash or cash equivalents – easily converted to cash. Up to 15 ounces of usable marijuana or 72 marijuana plants may be used toward the capitalization requirements.

LARA has broad authority to deny a license. A licensee can be denied if an applicant fails to comply with the rules or if the applicant is operating a facility after December 15 without a license. That said, facilities that are operating in a municipality that has licensed them can operate after December 15, may be permitted to continue operations, but must submit documentation showing the local municipality allowed them to operate. The rules provide no mechanism to appeal an adverse licensing decision, or to contest the imposition of fines and penalties.

Currently operating facilities with municipal licensure must apply for a state license no later than February 15, 2018. If those facilities do not have a state license by June 15, 2018, their operation will be considered unlicensed activity and could be referred to law enforcement.  Although the rules do not address the situation were licensure is not met by June 15 due to government delay.

Details on Licensing

Licenses will be up for renewal annually. Applicants and licensees will be required to report a variety of information to LARA, including changes of location, contact information, members, managers and adverse reactions to a medical marijuana product. Theft or other criminal activity on the premises will have to be reported to the department within 24 hours of occurrence.

LARA has sweeping authority to inspect, examine and audit records of the licensee and enter the facility without notice to inspect. The department is allowed to charge civil fines of up to $5,000 for an individual and $10,000 or an amount equal to daily gross receipts against a licensee for violations.  Given the number and various requirements regarding inventory control and the specifications for the physical facility itself, the risk of fines and penalties is no insubstantial.

During the first 30 days a state-operating license is issued to a licensee, marijuana products will need be entered into a statewide monitoring system and inventory will need to be tagged and packaged.

Class C grower licenses, which would allow 1,500 plants, for example, may be stacked under the rules. And licensed growers, processors and provisioning centers will be permitted to operate at the same location.

Security Requirements for Marijuana Facilities

Applicants will be required to submit security plans. Facilities will be required to maintain an alarm system and a 24-hour video surveillance system. Licensed-facilities will also have to maintain visitor logs.

Advertising Stipulations for Marijuana Facilities

Licensees will not be permitted to advertise any marijuana products in a way that is visible to the general public. However, that does not apply to advertisements that are not about a specific product.

Products also will be prohibited from being marketed toward minors, and edible products cannot be associated with cartoons or other things that would appeal to minors. Edible products also cannot be easily confused with commercially sold candy.

Federal Regulation of Marijuana Facilities

Of course, while specified medical use of marijuana is permitted under state law, its use is still illegal under federal law, and we don’t know for sure what the federal government will do in the future with regard to these specified uses. The status quo is that federal attention is diverted away from uses that are “authorized” by and operated in compliance with state laws. Attorney General Jeff Sessions, however, has made his view clear: “Good people don’t smoke marijuana.” On the other hand, the industry seems to be growing at a pace that exceeds the federal government’s ability (time and resources) to do much about it.

Fraser Trebilcock understands the regulatory aspects of the marijuana industry along with the legal risks. Our attorneys are available to advise you on issues related to state law and compliance.

 

Michael P. DonnellyFraser Trebilcock attorney Michael P. Donnelly has years of experience handling matters ranging from major insurance fraud to intellectual property disputes. He formerly served three years as the President of Fraser Trebilcock and is currently the Managing Partner of the Detroit office. He can be contacted at 313.965.4968 or mdonnelly@fraserlawfirm.com.

 

 

Fraser 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.