The full House of Representatives approved bipartisan legislation this week that would allow Michigan state-licensed cannabis businesses to trade with tribal cannabis entities in the state. The bills passed by the Senate last June will now be sent to Governor. Gretchen Whitmer, a Democrat.
The House Committee on Regulatory Reform reported the pair of bills SB 180 and SB 179 on Tuesday. They were then passed by the entire chamber on Thursday.
SB 180 is the main piece of legislation, and it was sponsored by Senator Roger Hauck (R). SB 179 by Sen. Jeff Irwin, sponsored on the Democratic side, contains adjustments to tax revenue allocation. Both bills are tied together, which means that neither will take effect until both become law.
According to a House staff analysis, Michigan’s legal marijuana industry and tribal marijuana business on Indian land “are currently separated silos,” meaning that the product cannot be traded between these businesses. The bills aim to maintain a level playing ground by requiring that tribal businesses pay the same rate of tax as other businesses, while allowing the sale of products between the two types.
SB180 allows the state’s Cannabis Regulatory Authority to enter agreements with tribal governments regarding marijuana-related regulations and makes it clear that it isn’t illegal for a company licensed by the state to transport cannabis to a tribal marijuana enterprise. The bill would exempt tribal cannabis businesses that operate on tribal lands, from the state’s 10% marijuana excise taxes, under certain conditions. However, tribes who enter into agreements with CRA will need to impose a tax of at least 10%, which they would retain.
SB179 would, on the other hand, funnel a portion back to tribes of the state cannabis tax revenues based on sales attributed to retailers or small businesses located on their lands. According to current law, municipalities get a share of the money that is left in the Marihuana Regulation Fund. This fund includes revenue from the marijuana excise taxes and industry fees. A similar portion would be returned to tribal governments under the proposed change.
The House Fiscal Agency reported that the report would require that, “to the extent marihuana retailers and microbusinesses were located on tribal land, the share in revenue that would otherwise have been distributed to counties or local governments, would be instead allocated to the respective Indian Tribe.”
CRA, Michigan Cannabis Industry Association, and cannabis company Common Citizen are among the supporters of the bill. The Grand Traverse Band of Ottawa & Chippewa Indians, and the Saginaw Chippewa Indian Tribe were among the tribal governments that supported the passage of the legislation.
A change made in Michigan by the Michigan Civil Service Commission in July ended pre-employment marijuana tests for most government workers. This change also allows those who have already been penalized for positive THC test to get the sanction rescinded retroactively.
Michigan voters approved the legalization of adult-use marijuana in 2018. Sales will begin next year.
Michigan broke its previous record for July in the sale of cannabis products.
These sales are consistently breaking records in the state, even though the cost of marijuana is at a record low. The price of one ounce of cannabis for adult use hovers around $98. By comparison, in December 2021 the price of an ounce would have been about $180.
A bill recently introduced to the legislature will legalize the use of psychedelic plants as long as the activities such cultivation and distribution are not done for money or any other valuable consideration.
Last month, state legislators called on the U.S. Congress and Department of Veterans Affairs to invest in research and non-technological treatment options–including psychedelics –to help treat psychological trauma resulting from military service.
As more states legalize marijuana, tribal governments have also entered the business. Notably, in Minnesota, where state lawmakers passed an adult-use marijuana program earlier this year, tribes are leading the way.
White Earth Nation authorized marijuana sales in July and opened a cannabis shop for adult use. And the Red Lake Nation, which also began sales in August, announced plans to launch a mobile marijuana retailer–effectively a cannabis “food truck” that can travel and do business on tribal land throughout the state. The Leech Lake Band of Ojibwe is another tribe in the state that’s also moving towards legalization.
Minnesota’s marijuana law allows the governor to enter into agreements with tribal governments that allow them to operate in non-tribal areas of the state. This option has been seen as a means to sell legal cannabis before the state license, which isn’t expected until 2025. In August, cannabis regulators reported that so far “several tribes” have expressed interest.
Last month, 66 New York state legislators urged Gov. Kathy Hochul (D), to Sign a Bill that would Allow licensed marijuana producers to Sell Products to Tribal Retailers.
The Eastern Band of Cherokee Indians in North Carolina voted 70-30 to legalize adult use cannabis early September despite threats by some North Carolina legislators. The tribe has passed 2021 regulations for a medical cannabis system. Registration for this system was opened to all North Carolina residents in June.
In 2020, it’s thought that the Oglala Sioux Tribe in South Dakota will be the 1st tribe in the U.S. to legalize marijuana in a state where the plant was still illegal.
Key House Committee Blocks Amendments to End Marijuana Tests for Federal Job Candidates
Photo by Brian Shamblen.
The article Michigan lawmakers send bills allowing marijuana commerce with tribal businesses to Governor first appeared on Marijuana Moment.
