Michigan Lawmakers Consider Bills To Change Legal Marijuana Possession Limits And Alter Industry Disciplinary Rules

*Michigan has “become, in a lot of ways, sort of a central location for
illicit operations, because the penalties for illicit activity are so low
here.”*

*By Ben Solis, Michigan Advance*

Four marijuana-related bills were up for consideration before a House panel
on Thursday, with one aiming to upend rules on the legal amount of
regulated marijuana a person is allowed to possess, both in plant and
concentrate form.

Members of the House Regulatory Reform Committee discussed but did not
amend or advance House Bill House 5104, Bill 5105, House Bill 5106 and
House Bill 5107.

Derek Sova, a policy and legislative assistant for the Cannabis Regulatory
Agency, told the committee previously that Michigan’s legal marijuana
industry faced several challenges, and that two of those big hurdles were
large illicit grow operations and the agency’s inability to go after bad
actors because their licenses had expired.

The series of bills before the committee would address those concerns.

House Bill 5105 and House Bill 5107 are sponsored by state Reps. Pauline
Wendzel (R-Watervliet) and Mike Hoadley (R-Au Gres), respectively. The
bills would in tandem create new penalties for cultivating, delivering and
processing black market marijuana, but also change the amount of marijuana
a person is legally allowed to possess in plant and concentrate form.

The bills are tie-barred together, meaning both would have to jointly clear
the Legislature and be signed by the governor to become law.

Under Wendzel’s bill, a person would be guilty of a misdemeanor if they
possess between 10 and 25 kilograms, or between 50 and 100 plants, or
between one and 2.5 kilograms of marijuana concentrate. The penalty would
change to up to one year in jail or a $20,000 fine, or both.

Keeping between 25 and 125 kilograms, or between 100 and 500 plants, or
between 2.5 and 12.5 kilograms of marijuana concentrate would become a
felony punishable by two years in prison or a $500,000 fine, or both.

*It would also be a felony offense to:*

- Keep between 125 and 250 kilograms, or between 500 and 1,000 plants,
or between 12.5 and 25 kilograms. That could net a person four years in
prison or a $2 million fine or both; and
- Keep 250 kilograms or more, or 1,000 plants or more, or 25 kilograms
or more of marijuana concentrate. The punishment there would be up to 10
years in prison or a $10 million fine, or both.

Sponsored by state Rep. Kristian Grant (D-Grand Rapids), House Bill 5104 would
allow the Cannabis Regulatory Agency to sanction a person even if they are
no longer a licensee or if they are no longer operating a marijuana
facility.

At present, the Medical Marihuana Facilities Licensing Act holds that the
expiration of a state-issued license terminates the authority of the agency
to impose sanctions. The bill from Grant would retain that position but
would add that the authority to impose sanctions would continue if there
was already a pending action against a former licensee or facility operator.

House Bill 5106, sponsored by state Rep. Jerry Neyer (R-Shepherd), would
amend the state’s Regulation and Taxation of Marihuana Act to similarly
address disciplinary action on recreational licenses. The bill would let
the agency summarily suspend a license if the licensee’s conduct poses a
risk to the health, safety or welfare of the public.

Much like House Bill 5104, Neyer’s legislation would also give the agency
authority to take disciplinary action against a person who no longer holds
a license or if their license has recently expired.

The risks that could lead to license suspension or discipline, as outlined
in the bill, include possessing marijuana from a source that cannot be
determined, keeping marijuana stashes obtained in violation of the act,
obstructing an agency investigation, and failing to provide the agency with
required records.

Neyer’s bill affects growers, processors, retailers, microbusinesses,
safety compliance facilities and secure transporters.

State Rep. Emily Dievendorf (D-Lansing) said they were concerned about
upticks in enforcement given that some industry folk were previously on the
negative end of marijuana enforcement when it was illegal in Michigan. She
questioned whether it was right to increase enforcement when the state was
actively beginning to tax marijuana sales at a higher rate, which some have
warned will ultimately push consumers to the black market.

Sova said that the point of the package was to support the licensed
industry, as much as possible, especially those following the rules.

“That’s the purpose of giving us the greater enforcement authority over the
bad actors in the licensed space who are cheating, who are undermining the
folks who are trying to do it the right way,” Sova said. “This has been an
issue, I believe, in communities where you’ve had a lot of these large
illicit outdoor growers. You’re talking sometimes thousands or tens of
thousands of plants that, the way the statutes are set up right now,
there’s really no disincentive to continue doing that.”

Sova added that Michigan has “become, in a lot of ways, sort of a central
location for illicit operations, because the penalties for illicit activity
are so low here.”

State Rep. Joseph Aragona (R-Clinton Township), the committee’s chair, said
he agreed with Dievendorf.

“The 24 percent tax was difficult,” he said. “We obviously did not want to
do in the House, but this could definitely help those legal growers who are
going to be paying it, because, if I’m mistaken, the black market won’t be
paying that tax.”

Sova said that was certainly the intention of the pending legislation.

Hoadley also testified along with Iosco County Prosecutor Jim Bacarella and
Branch County Prosecutor Zach Stempien, both of whom supported the
legislation and expressed concern for those working in the industry. Some
of that concern had to deal with the exploitation of migrant workers or
foreign nationals, which were issues brought up by the prosecutors during
testimony.

*This story was first published by Michigan Advance.*

*Photo courtesy of Chris Wallis // Side Pocket Images.*

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Possession Limits And Alter Industry Disciplinary Rules appeared first on Marijuana
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