Recreational Cannabis: How Is Michigan Shaping Up? – Market Realist

Michigan is one of the 11 states in the US that have legalized recreational or adult-use cannabis. In November 2018, Michigan residents voted in favor of legalizing recreational marijuana and created the MRTMA (Michigan Regulation and Taxation of Marihuana Act). LARA (the Michigan Department of Regulatory Affairs) was given the task of developing and enforcing the state’s recreational cannabis laws. However, the state hasn’t officially announced the date for the launch of the sale of recreational cannabis.

On July 3, LARA’s MRA (Marijuana Regulatory Agency) released emergency administrative rules for the legalization of recreational cannabis. According to these regulations, the MRA will start accepting applications for commercial cannabis business licenses on November 1. The MRA has developed various types of licenses to meet the different needs of prospective licensees. Further, it’s put in place rules for the transfer of cannabis products across these license categories.

As reported by the Detroit Free Press on September 5, for all license categories, the application fee is $6,000. However, the cost of each adult-use license varies from $1,000 to $40,000. The report also stated that current medical marijuana license holders will get preferential treatment for at least one year.

The MRA has mandated that all recreational marijuana license applicants provide a social equity plan that will encourage communities that have been affected by marijuana prohibition laws to participate in the marijuana industry.

Recreational cannabis expected to drive sales

With the MRA expected to start its commercial license allotment process on November 1, we expect cannabis sales to rise in Michigan. Michigan has 283,770 registered patients, the second-largest population of medical marijuana patients in the US, as reported by the Detroit Free Press on August 19. The report added that the state’s House Fiscal Agency expects annual cannabis sales in Michigan to reach $949 million

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