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 – June 21, 2024

  1. Michigan is Top Cannabis Market in Country by Sales Volume

The Detroit Free Press recently reported that Michigan surpassed California as the top cannabis market in the country by sales volume, despite having one quarter of California’s residents.

Why it Matters: The growth of Michigan’s cannabis market is significant over the last five years. However, despite having higher sales volume, the dollar volume of California’s sales is much higher ($5.1 billion in California vs. $3 billion in Michigan). Michigan’s market continues to be plagued by declining product prices and profitability.

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  1. Michigan Enacts Legislation Requiring Equal Insurance Coverage for Mental Health Treatment

Governor Whitmer recently signed into law legislation (Michigan Public Act 41 of 2024) requiring insurance providers in Michigan to provide coverage for mental health and substance abuse disorder treatment in a manner equivalent to medical coverage.

Why it Matters: This means that insurance providers cannot impose greater financial (e.g., co-pays, deductibles, or out-of-pocket maximums) or quantitative restrictions (e.g., limits on frequency of treatment, number of visits, days of coverage) on mental health and substance abuse disorder treatment coverage in their plans than they would for medical coverage.

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  1. Election Year Considerations for Exempt Entities

As another election season approaches and the candidates and issues begin to come into focus, now is a good time to review the regulations that govern exempt organizations and their involvement in politics.

Why it Matters: This article focuses on the direct activities of certain exempt entities and not on the use and function of affiliate organizations, such as a Political Action Committees (PACs). Exempt entities may find it useful to establish a PAC for use in organizing and operating the political and lobbying activities supportive of the organization’s exempt purpose. Read more from attorney Bob Burgee.

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  1. Fraser Trebilcock Attorney Obtains Full Dismissal for Firm Client

Fraser Trebilcock Shareholder and Real Estate Department Chair Jared A. Roberts obtained full dismissal of another Bureau of Professional Licensing complaint brought against a real estate brokerage and a salesperson.

Why it Matters: “The key to understanding and properly defending this case,” Jared advised, “was to perform a comprehensive review of all communications.” Once that was done “we were able to find party consent for an action that the Complainant and the Department were alleging was unauthorized.” As Michigan’s leading real estate broker defense attorney advises, carefully preserve all communications in your deal file – they may be instrumental in your defense. Learn more.

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  1. The Ins and Outs of Cottage Succession Planning in Michigan (Part Two)

A cottage plan is an agreement that describes how a cottage will be shared, managed and passed on to future generations of family members. Cottage plans typically cover a range of issues that can impede the succession of a cottage if left unaddressed.

Why it Matters: There are significant advantages to having a cottage plan that utilizes an LLC or trust structure. There is no single option that is best for all families, so it’s important to consult with an experienced cottage law attorney to determine what option is right for you. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Business & Tax | Robert Burgee
Real Estate Law | Jared Roberts
Cottage Law | Mark Kellogg

Five Stories That Matter in Michigan This Week – May 17, 2024

  1. Michigan Legislature Considers Tax Breaks for Data Center Development

With the emergence of artificial intelligence, and its massive computing needs, data center development has exploded across the country. Michigan may soon be making a push for more data center development with a package of bills (House bills 4905-4906 and Senate bills 237-238) which, if passed, would expand sales- and use-tax exemptions for data center equipment.

Why it Matters: The economic growth potential from data center development is significant. According to McKinsey & Company,  US data center demand is forecast to grow and compound by over 10 percent a year until 2030.

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  1. 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.

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

Cannabis sales surpassed $278 million in April, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $276,685,182.93, while medical sales came in at $1,861,261.02, totaling $278,546,443.95.

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. 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’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

Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – May 3, 2024

  1. Michigan CRA Plans to Open State-Run Testing Laboratory

Crain’s Detroit Business reported this week that Michigan’s Cannabis Regulatory Agency plans to open a new testing lab by January of next year in order to promote and enforce safety standards. While funds have been allocated for the establishment and operation of a testing lab, CRA regulators reportedly are asking Michigan legislators to pass a bill that would give the agency more explicit authority to take this action.

Why it Matters: Having an independent, state-run lab would, according to regulators, help establish trust in products and root out potential corruption in the legal cannabis industry.

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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.

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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. Marijuana to be Rescheduled by DEA

It was announced this week that the DEA is planning to reclassify marijuana from a Schedule I drug to a Schedule III drug, following a recommendation from the Health and Human Services Department.

Why it Matters: While this move is still subject for review by the White House Office of Management and Budget, this clears a significant regulatory hurdle. Marijuana will still not be legal on the federal level for recreational use following this reclassification.

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  1. FTC Issues Final Rule Banning Non-Compete Agreements Nationwide

On April 23, 2024, in a 3-2 vote, the Federal Trade Commission (FTC) issued a final rule banning non-compete clauses in most employment agreements nationwide. The rule is scheduled to go into effect 120 days after it is published in the Federal Register.

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.” Read more from your Fraser Trebilcock attorneys.

Related Practice Groups and Professionals

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

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

  1. U of M Economists Project Michigan Economic Growth for Year Ahead

Economists from the University of Michigan recently released the annual Michigan Economic Outlook for 2024-25. The Outlook projects economic growth for the year ahead, including approximately 38,000 new jobs in 2024.

Why it Matters: This year’s expected job growth comes on the heels of a slowdown in employment in Michigan during the second half of last year, according to the report.

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  1. April Business Education Series

In the dynamic landscape of business, where adaptability is key, the importance of having robust Standard Operating Procedures (SOPs) cannot be overstated. SOPs serve as the backbone of organizational efficiency, ensuring consistency, compliance, and continuous improvement.

Why it Matters: The April Business Education Series, “Optimizing Operations: The Crucial Role of Standard Operating Procedures (SOPs),” led by Brittany Parks, founder and principal Consultant, Brittany Parks Process Consulting, is designed to equip participants with the knowledge, skills, and tools to harness the transformative power of SOPs in their respective organizations. Learn more and to register.

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  1. Michigan Cannabis Exceeds $288 Million in March ‘24

Cannabis sales surpassed $288 million in March, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $286,790,258.52, while medical sales came in at $2,053,021.25, totaling $288,843,279.77.

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. The Uniform Power of Attorney Act

The Uniform Power of Attorney Act (UPOAA or Act), 2023 PA 187, was signed into law in November 2023 and goes into effect July 1, 2024. It repeals Michigan’s current statutory law on durable powers of attorney, specifically Sections 700.5501-700.5505 of the Estates and Protected Individuals Code (EPIC). The UPOAA is not part of EPIC, instead, it is a stand-alone statute located at MCL 556.201 et. seq.

Why it Matters: The UPOAA will apply to all powers of attorney in Michigan beginning July 1, 2024, with certain exceptions. Read more from attorney Melisa M.W. Mysliwiec.

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  1. Ten Reasons Why You May Want to Consider a Family Cottage Succession Plan

The goal of cottage succession planning is to set up legal ground rules that provide the best chance to keep a cottage in the family for future generations.

Why it Matters: A cottage plan usually addresses concerns through the creative use of a limited liability company (LLC), or a trust (typically used for more favorable treatment associated with the uncapping of taxable value), to own the property. Learn more from cottage law attorney Mark Kellogg.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Trusts & Estates | Melisa M.W. Mysliwiec
Cottage Law | Mark Kellogg

Five Stories That Matter in Michigan This Week – March 29, 2024

  1. Cannabis Regulatory Agency Takes Disciplinary Action

The Michigan Cannabis Regulatory Agency recently released its February 2024 Disciplinary Action Report, which details administrative formal complaints and disciplinary actions taken against adult-use/medical licensees in February by the CRA. The list is extensive, and the disciplinary action imposed ranges from fines to license suspension.

Why it Matters: Michigan cannabis rules and regulation are complex, cumbersome, and, as we see from the CRA’s most recent Disciplinary Action Report, aggressively enforced by the agency. For assistance in understanding and complying with Michigan’s cannabis industry regulatory framework, please contact a member of our Cannabis Law team.

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  1. Corporate Transparency Act Update

As anticipated, the finding by a federal judge in Alabama that the Corporate Transparency Act is unconstitutional has prompted (or at least been echoed by) challenges elsewhere, including in federal courts in Maine and in Michigan. FinCEN filed its appeal notice in the Alabama suit earlier this month, meaning that a decision by the 11th Circuit Court of Appeals may be forthcoming. The suits in Maine and Michigan were brought in courts covered by the 5th and 6th Circuit Courts of Appeals, which could be the beginning of a series of events that brings the question of the CTA’s constitutionality before the United States Supreme Court as a result of a possible Circuit split.

Why it Matters: Reporting companies that were formed prior to January 1, 2024, may find it advantageous to continue collecting their beneficial owner information but postpone filing the report until some of these matters have worked through their respective processes. Entities created on or after January 1, 2024, however, will still need to file their reports within 90 days of filing their organizing documents, as their reporting obligations have not been excused. Learn more from attorney Bob Burgee.

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  1. Michigan Cannabis Exceeds $261 Million in February ‘24

Cannabis sales surpassed $242 million in February, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $258,857,645.20, while medical sales came in at $2,178,744.68, totaling $261,036,389.88.

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. 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. The Uniform Power of Attorney Act

The Uniform Power of Attorney Act (UPOAA or Act), 2023 PA 187, was signed into law in November 2023 and goes into effect July 1, 2024. It repeals Michigan’s current statutory law on durable powers of attorney, specifically Sections 700.5501-700.5505 of the Estates and Protected Individuals Code (EPIC). The UPOAA is not part of EPIC, instead, it is a stand-alone statute located at MCL 556.201 et. seq.

Why it Matters: The UPOAA will apply to all powers of attorney in Michigan beginning July 1, 2024, with certain exceptions. Read more from attorney Melisa M.W. Mysliwiec.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Business & Tax | Robert Burgee
Health Care Law Robert Andretz
Trusts & Estates | Melisa M.W. Mysliwiec

Five Stories That Matter in Michigan This Week – March 22, 2024

  1. The Uniform Power of Attorney Act

The Uniform Power of Attorney Act (UPOAA or Act), 2023 PA 187, was signed into law in November 2023 and goes into effect July 1, 2024. It repeals Michigan’s current statutory law on durable powers of attorney, specifically Sections 700.5501-700.5505 of the Estates and Protected Individuals Code (EPIC). The UPOAA is not part of EPIC, instead, it is a stand-alone statute located at MCL 556.201 et. seq.

Why it Matters: The UPOAA will apply to all powers of attorney in Michigan beginning July 1, 2024, with certain exceptions. Read more from attorney Melisa M.W. Mysliwiec.

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  1. Can an Out-of-State Patent Attorney Represent Me?

Securing a patent for an innovative idea involves maneuvering through a complex, multifaceted process. And having the right guide—patent legal counsel—is an essential part of the process. A common misconception is that a party hoping to secure a patent must turn to a local attorney for help. This belief, while understandable considering that many legal matters require local expertise and licensing, overlooks the dynamics of how things work with patent law.

Why it Matters: The truth is, in the digital age, the geographical location of your patent attorney matters less than their expertise, experience, and ability to navigate the United States Patent and Trademark Office’s (“USPTO”) requirements. Learn more from attorney Andrew Martin.

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  1. Michigan CRA Publishes February 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 February was $91.94, a decrease from $93.20 in January. This is an increase from February 2023, where the average price was $86.00.

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.

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  1. CRA Warns of Scam Targeting Michigan Cannabis Businesses

On March 8, the Michigan Cannabis Regulatory Agency (CRA) sent out an advisory bulletin warning cannabis businesses of an individual posing as an agent of the CRA demanding payment of license fees under the threat of revoking their license(s).

Why it Matters: The CRA noted, “Licensees and applicants are reminded that administrative rules require they notify the CRA and local law enforcement within 24 hours of becoming aware – or within 24 hours of when they should have been aware – of the theft or loss of any product or criminal activity at the marijuana business.”

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  1. Fraser Trebilcock Attorneys Secure Summary Disposition for Firm Client

Fraser Trebilcock attorneys Danielle Lofton and Gary C. Rogers have obtained summary disposition and dismissal of a lawsuit in favor of the firm’s client in a personal injury case pending before the Kalamazoo County Circuit Court.

Why it Matters: Attorney Lofton successfully argued the motion, convincing the trial court that the plaintiff’s injuries did not rise to the level of serious impairment of body function, following mediation in which the plaintiff, who was represented by a prominent plaintiff’s personal injury firm, rejected the settlement recommended by a mediator, and wanted to proceed to trial before a jury. Instead of accepting the mediator’s recommended settlement amount, the plaintiff will now receive nothing. Learn more.

Related Practice Groups and Professionals

Trusts & Estates | Melisa M.W. Mysliwiec
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Insurance Law | Danielle Lofton
Insurance Law | Gary Rogers

Five Stories That Matter in Michigan This Week – March 1, 2024

  1. Growing Marijuana in Michigan – No Matter the Amount – is a Misdemeanor

Late last week, the Michigan State Police shut down an illegal marijuana growing facility in Highland Park, seizing 4,000 marijuana plants and processed weed worth $6.3 million. It may surprise readers to know that, pursuant to a Michigan Court of Appeals ruling in October, 2023, the unlicensed growers may only face misdemeanor charges. In another case involving an illegal growing operation, the court ruled that violations that previously were subject to felony punishments should now be prosecuted under the Michigan Regulation and Taxation of Marijuana Act (the “Act”).

Why it Matters: Under the Act, it’s legal to store up to 10 ounces of marijuana, possess 2.5 ounces and grow up to 12 plants. Violations for exceeding those amounts range from civil infractions to misdemeanors. It will be interesting to see if these provisions will be revisited given that black market sales have been blamed for increased competition and falling prices for legal sales.

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  1. Navigating the Cost and Process of Hiring a Trademark Attorney

In the fast-paced world of business, protecting your brand is paramount. Whether you’re a startup or a large corporation, safeguarding your trademarks is essential for maintaining your identity and reputation in the market. However, navigating the legal intricacies of trademark registration and enforcement can be complex and overwhelming. This is where a skilled trademark attorney can be your greatest ally.

Why it Matters: Without adequate protection, your trademarks are vulnerable to infringement, dilution, and misappropriation, which can result in lost revenue, brand erosion, and legal disputes. By securing federal trademark registration and enforcing your rights, you establish a legal foundation that empowers you to safeguard your brand and its value. Read more from attorney Andrew G. Martin.

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  1. Fraser Trebilcock Attorney Michael E. Cavanaugh Named in Michigan Lawyers Weekly Class of 2024 Hall of Fame

Fraser Trebilcock attorney Michael E. Cavanaugh has been selected as a member of Michigan Lawyers Weekly “Hall of Fame Class of 2024.” This special award recognizes esteemed members of the legal profession who have been in practice for at least 30 years.

Why it Matters: Michigan Lawyers Weekly’s annual “Hall of Fame” award recognizes only twenty-one lawyers each year. These lawyers truly are legends, making their mark in the courtroom or the boardroom, in their firms and with community organizations, and with local, state and national bar associations. With their guidance and mentorship, they have launched hundreds of thriving legal careers and have left an indelible imprint on the profession through precedent-setting cases, high dollar outcomes and successful resolutions for their clients.

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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. Increase in the Small Business Property Tax Exemption

Eligibility for the so-called “Small Business Property Tax Exemption” has expanded. Legislation passed last October 2023, expands the exemption by increasing the eligibility limit to from the $80,000 true cash value limit to $180,000.

Why it Matters: The exemption is only for commercial and industrial personal property (residential/individuals are not subject to personal property taxes). Once filed, and if granted, the exemption will remain as long as the small business still qualifies. In other words, there is no need to file an exemption claim every year. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin
Labor, Employment & Civil Rights | Michael E. Cavanaugh
Professional Licensing | Robert Andretz
Business & Tax | Paul McCord

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

  1. Michigan Awarded Nearly $23 Million for Electric Vehicle Infrastructure

The State of Michigan recently announced that nearly $23 million has been awarded to multiple locations across Michigan for electric vehicle infrastructure. The funds are being allocated via the U.S. Department of Energy’s National Electric Vehicle Infrastructure Formula Program.

Why it Matters: Electric vehicle growth and EV infrastructure is an important clean energy and economic growth priority in Michigan. However, recent reports suggest the market for EVs is slowing, and the issue has become a hot-button topic in this year’s presidential campaign. A New York Times article discussed the contentiousness of the issue in a story this week titled, “For Michigan’s Economy, Electric Vehicles are Promising and Scary.”

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  1. Increase in the Small Business Property Tax Exemption

Eligibility for the so-called “Small Business Property Tax Exemption” has expanded. Legislation passed last October 2023, expands the exemption by increasing the eligibility limit to from the $80,000 true cash value limit to $180,000.

Why it Matters: The exemption is only for commercial and industrial personal property (residential/individuals are not subject to personal property taxes). Once filed, and if granted, the exemption will remain as long as the small business still qualifies. In other words, there is no need to file an exemption claim every year. Read more.

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  1. Michigan CRA Publishes January 2024 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 January was $93.20, a decrease from $95.08 in December 2023. This is an increase from January 2023, where the average price was $80.16.

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.

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  1. Michigan’s Repealed “Right-to-Work” Law Takes Effect

On Tuesday, February 13, 2024, Michigan’s repeal of the prior “right-to-work” law governing private-sector workers went into effect.

Why it Matters: The result of the repeal is that private-sector unions may permissibly negotiate to impasse, and enforce, “union security” provisions requiring membership in, or financial support through “Beck Objector” fees, of those unions. Read more.

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  1. Retroactive PPT Exemption

Some Michigan manufacturers who were not able to claim their 2021 ESA-PPT exemption due to COVID-19, have until March 14 to request approval from the State Tax Commission.

Why it Matters: The ESA is a State specific tax on personal property that is exempt from property taxes at the local level because the property meets certain eligibility requirements, such as being qualified manufacturing or industrial personal property. In order to elect out of local personal property taxes and into the ESA regime, manufacturers must file the required forms with their local assessing office by February 20th of each year. Learn more.

Related Practice Groups and Professionals

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

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

  1. Michigan Amendment Imposes Reporting Requirement for Broker-Dealers and Investment Advisers to Report Financial Exploitation of Vulnerable Adults

Effective March 13, 2024, an amendment to the Michigan Uniform Securities Act (new Section 451.2533) will take effect that is intended to protect elder and vulnerable adults from financial exploitation. Among other things, the law requires broker-dealers and state-registered investment advisers to report suspected financial exploitation to a law enforcement agency or adult protective services.

Why it Matters: According to the Michigan Department of Attorney General website, more than 73,000 older adults in Michigan are victims of elder abuse, including financial exploitation.

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  1. The DOL Issues Final Rule Creating New Standard for Classifying Workers as Employees vs. Independent Contractors

On January 9, 2024, the United States Department of Labor released its final rule on worker classification under the Fair Labor Standards Act (FLSA).

Why it Matters: This new rule, effective as of March 11, 2024, signals a return to a standard more likely to classify workers as employees than contractors. Thus, it is more likely that employers will be determined to have misclassified workers as contractors, resulting in liability. Learn more from your Fraser Trebilcock attorney.

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  1. Michigan Federal Judge Dismisses Complaint Against Firm Client

A Michigan federal judge recently dismissed a complaint against the firm’s client represented by attorneys Thaddeus E. Morgan and Ryan K. Kauffman, for lack of subject matter jurisdiction.

Why it Matters: The complaint alleged that the firm’s client, together with another state bar, illegally conspired to prevent the plaintiff from practicing law in their respective states. However, the Eleventh Amendment prohibits a suit brought in federal court against a state, its agencies and officials, unless the state has waived its sovereign immunity or consented to being sued. The Eleventh Amendment limits federal subject matter jurisdiction, and as a result of the state bar functioning as an extension of the state’s Supreme Court, it is a state agency that possesses Eleventh Amendment immunity. Read more.

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  1. Michigan Cannabis Sales Eclipse $3 Billion in 2023

Michigan cannabis sales total $3,057,161,285.85, via the collection of monthly reports from the Michigan Cannabis Regulatory Agency. This is a 30% increase from 2022, which saw total sales at $2,293,823,890.11.

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. 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.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Litigation | Ryan Kauffman
Litigation | Thaddeus Morgan
Cannabis Law | Sean Gallagher
Employee Benefits | Bob Burgee
Employee Benefits | Sharon Goldzweig