marijuana legalization in Michigan is approved by voters cannabis flowers like this one pictured will be legal to purchase by people 21 and older

Marijuana Legalization in Michigan: Our FAQs

Because we work in the marijuana business, we get frequent questions from people about what marijuana legalization in Michigan. Here are our thoughts and some data on the topic.

What is on the ballot?
Proposition 1 is a citizen-driven ballot initiative to end cannabis prohibition in Michigan. If you vote yes, it means you want marijuana to be able to be sold to adults 21 and older in Michigan. If you vote no, Michigan will remain a medical-only state.

Why are you supportive of the proposal for marijuana legalization in Michigan?
First, because adults can make decisions for themselves about what they put in their bodies, be it supersized soft drinks, whiskey, craft beer or tobacco or asparagus. We are able to make those decisions for ourselves and we should be able to do that.
Second, the prohibition of cannabis hasn’t worked. It created a large black market that exists to this day. People who don’t have a medical marijuana card can still buy marijuana, and even before medical marijuana became legal 10 years ago, it was always easy to find. Prohibition didn’t work with alcohol and it isn’t working with marijuana, either.
Third, the criminalization of marijuana unfairly targets people of color—as it has since Richard Nixon assigned it to schedule 1 in the 1970s. People of color are arrested at a rate 8 times higher than white people for possession of small amounts of marijuana. According to the ACLU, states spend about $3.6 billion each year enforcing marijuana laws. Nationally, more arrests are made for marijuana possession than all violent crimes combined.

What will Michigan look like after Prop 1, if it is passed?
In additions to pretty beaches, tourists soon might be able to visit Michigan for legal marijuanaSince communities can opt-in or out for medical marijuana, a similar policy applies to recreational marijuana legalization in Michigan. But communities will need to opt out. There won’t be provisioning centers in every community—only where zoning has been approved. We’ll probably see a bump in tourism—Michigan will be the first Midwestern state that is legal and there are lots of people who live close to Michigan. Expect that people will come for skiing, beaches, colorful leaves, fudge and cannabis. Under the new law, there will be small boutique growers, which is great for entrepreneurs. This ensures there will be a place for small marijuana businesses in Michigan. Cannabis microbusinesses will be small businesses licensed to grow up to 150 marijuana plants and process, package, and sell marijuana to consumers.

Can the legislature change anything that is passed?
No, that opportunity passed the legislature earlier this year. The proposal, which is about four pages long, stands as the law. We expect though, that how it is regulated will be where the government will step in and make rules.

Marijuana will still be illegal federally. How does that affect business in Michigan is this is passed?
It will still remain an illegal federal substance, so you can’t mail it or take it across state lines. Businesses will struggle with banking, taxes and standard business deductions, which are not allowed.

Will this increase the amount of driving while high?
It is illegal to drive high, as it is illegal to drive drunk. Some people will do it regardless of the law.

Will marijuana legalization increase drug use of other kinds?
The gateway theory has been well refuted and if you’re inclined to try other drugs, you won’t find them in a marijuana dispensary. That’s a black market issue.

Is marijuana addictive?
It has not been clinically proven to be addictive. It can be overused, like anything that gives a human being pleasure. Unlike alcohol or tobacco, it can’t an edible marijuana cookie bar, it will be legal for all adults if Michigan legalizes marijuanakill you. There are no known cases of cannabis overdoses. Overusing it—usually happens when people overconsume edible cannabis. The effect of edibles is slow to be felt and people tend to take a few extra bites and then, BOOM, an uncomfortable feeling comes on. But it won’t kill you. You might think you are dying, but you won’t be.

Can people be fired from a job for using marijuana if the drug is legal?
Yes. Company personnel policies supersede the law when it comes to drug use. If your workplace prohibits it don’t do it. This also applies to medical marijuana patients.

How much taxes will be collected?
Ten percent of all sales in an excise tax and the Michigan sales tax of six percent will be collected. It’s estimated $100-200 million will be raised and while much of it will be used for PTSD and veteran health research, schools, roads and in communities with marijuana businesses.

How much marijuana can a person legally have?
This proposal, if passed will make possession of up to ten ounces legally. You still can’t drive under the influence or use it on the street, on a beach or in any public place. People 21 and older can grow up to 12 plants in their home without running afoul of the law.

Can we learn anything from other states that have legalized?
It isn’t an easy road for any state to implement this kind of a sweeping change and citizens should expect that it will take 18 months to two years to happen. It will still be highly regulated under the rules that guide Michigan’s medical marijuana businesses at present. Those rules demand 24/7 surveillance/security of growing and provisioning stores, seed to sale tracking, secure transport of cannabis and products and identification and proof of age to purchase.

If you care about marijuana legalization in Michigan it is important that you vote on November 6.

How Will we Celebrate The End of Marijuana Prohibition?

I recently received an invitation to my local community foundation’s annual donor event. The headline reads: “Something’s brewing in Muskegon County!” It invites patrons to “distill the essence of new frontiers in placemaking and economic development through craft beer and spirits.” The speakers for the event are the founders and craftmasters from three local breweries and a distillery.

We’re in!

Celebrating the impact of craft beer and locally distilled spirits is important. The craft beer industry is still booming and Michigan is fifth in the nation for breweries with more than 240 in operation and more than 40 distilleries. Craft breweries are the new corner bars of pre-prohibition times, places where people gather with friends and family to talk, play games, listen to music and drink locally made beer, cider and spirits.

By the time the 18th amendment was adopted in 1920, the alcohol prohibition movement was gaining steam across America. Led by the Women’s Christian Temperance Union and other religious forces, the movement to take alcohol away from people began in the Midwest and spread quickly. From 1920 to 1933 all of America was under prohibition—people could drink alcohol, but the amendment prohibited making, transporting and selling of booze. By all measures, the 18th amendment was a failure and it was repealed. Bootlegging and blackmarket booze was rampant.

So, What does this have to do with cannabis?

four cans of Michigan made beerWell, it’s a similar story of prohibition and acceptance.

Marijuana prohibition came shortly after the repeal of alcohol in 1937. As it often does, the feds held hearings on marijuana law in the 1930s to “fact check” claims about marijuana inciting violence in black men and causing them to solicit sex from white women. These claims, which were taken as truth, helped create the Marijuana Tax Act of 1937, which banned the use and sale of cannabis.

The Act was ruled unconstitutional and decades later under President Nixon it was deemed even more dangerous and given its Schedule I designation under the Controlled Substance Act.

So prohibition continues. New product, same failure.

One day, in the future, we expect that cannabis will be standing in the same photograph of marijuana flowersplace as alcohol as an economic and place-making entity. According to ArcView Market Research, Michigan has the potential to have the third-largest state medical cannabis state market by 2020, just behind California and Colorado. It is expected that we’ll have $556 million sales that year. And this doesn’t project what might happen if/when adult-use recreational is implemented in Michigan, which could be as soon as 2020.

We heard an interesting statement from the city manager in Muskegon Heights recently. He projected the tax and licensing revenue from just 14 medical marijuana licenses could bring in at least $250,000 in the first year—thus erasing the community’s budget deficit.

In the future, when marijuana prohibition ends and Michigan sees the benefit of tax income, jobs and tourism from all marijuana sales (which tend to be bigger than expected, as in Oregon) we envision that cannabis entrepreneurs will be invited to the stage and celebrated for the positive community change that they’ve helped make.

Muskegon and Medical Marijuana, The Case for Yes

Medical marijuana is a complicated issue and it elicits strong opinions from sides pro and con. I’m glad that the Muskegon City Commission is considering saying yes to cannabis and not closing the door completely on this medical and economic development issue.

As the commission discusses and decides about medical marijuana businesses in Muskegon, it is important that they acknowledge that marijuana is medicine, deemed so by the State of Michigan. For a productive conversation, commissioners must suspend any prejudices and notions about anything beyond that fact.

MARIJUANA Doesn’t Kill People.

As you know, opioid overdoses take the lives of citizens every single day and in 2016, 35 Muskegon County citizens died from opioid overdoses. This figure doesn’t account for those who overdosed and were rescued.

According to the drug enforcement administration, there are no (zero, zilch, nada) reported overdose deaths from cannabis. Weed can’t kill you. Period. Cannabis does kill pain and it has properties—cannabinoids—that can be used as an opioid substitute.

One of the most interesting and powerful things about medical marijuana is its efficacy for epilepsy and other neurological diseases. The Epilepsy Foundation and its Michigan affiliate have both stated that cannabis is effective for seizures and is worthy of further research.

People in Muskegon Need Local Medicine.

In Muskegon County, there are 4,300 people who have medical marijuana cards. Presently, unless they have a caregiver who grows plants for them, they have to go to as far as Lansing to a dispensary to purchase their medicine. This isn’t right or even fair. If you are suffering from pain, undergoing chemotherapy for cancer, have Crohn’s Disease or epilepsy you should not have to travel outside your community to buy medicine. For people in our community, people who already might be living in less than ideal work or financial situation due to health, this is an undue burden.

If you are suffering from pain, undergoing chemotherapy for cancer, have Crohn’s Disease or epilepsy you should not have to travel outside your community to buy medicine. For people in our community, people who already might be living in less than ideal work or financial situation due to health, this is an undue burden.

Almost ten years ago, voters in the State of Michigan said that medical marijuana should be legalized; yet it (the State) has made it difficult for people to get medicine. By voting yes, the commission will help residents of Muskegon County and the counties that surround us. Patients from around West Michigan will spend money in Muskegon because of this decision.

photo of a marijuana leafTax Revenue for the City of Muskegon.

Cannabis can only be sold to patients with specific illnesses and those people must have a state-approved card that allows them to buy medicine. Thanks to new licensing regulations from the State of Michigan the quality, testing and production of cannabis medicine is going to get better for patients.

Communities that provide zoning to allow marijuana businesses will reap the benefits of patients buying medicine in their municipalities. Cannabis businesses have the potential to bring in significant tax revenue and jobs to Muskegon. Imagine guidelines for these new enterprises that require cannabis businesses to guarantee that 50 percent of their employees are residents of the city of Muskegon.

Medical marijuana will be highly regulated and the licensing fees are expensive. Entrepreneurs wanting to create businesses in Muskegon are very serious about what they are planning. I am sure that they will operate well-managed businesses—they have much at stake, both personal and financial.

To the commission, your decision and your vote will be as business savvy as it is compassionate.

Again, I want to acknowledge your diligence and forward-looking views as you decide on this important issue and I hope Muskegon will be on the right side of cannabis history.

Marijuana in Michigan=Job Creation

Cannabis is a Job Creator.

Without a doubt, Michigan is poised to be the next hot spot for marijuana jobs. With 9.5 million residents in Michigan compared to 5.4 million in Colorado, we’ll be a cannabis powerhouse as the industry grows and becomes normalized.

Michigan is Ready.

While the focus at present is on Michigan’s licensing of the medical use of cannabis, there is traction (petitions are now being circulated) for an adult-use ballot measure focused in 2018 and polls indicate that Michigan voters favor adult use legalization. An Epic MRA poll conducted in early 2017 indicated that 53 percent of likely voters favored legalization. Colorado holds the distinction of being America’s first adult-use state and that gives us an idea of the possible revenue generation in Michigan.

In early 2017, the revenue for the state of Colorado had pushed past $1 billion, that’s $1 billion of taxable money or about $200 million for state coffers. Imagine what Michigan, with twice the population, could do with $400 million in new tax dollars. And Pure Michigan could benefit from cannabis, too. Michigan attracts more tourists than Colorado—113.4 million people visit Michigan each year, compared to Colorado with 77.1 million. Nearly 24 percent of young people say that legal cannabis influenced their decision to visit Colorado.

an untrimmed marijuana flowerHigh Growth Industry

As American manufacturing declines, jobs in the cannabis field are on the rise. According to a report from New Frontier Data, it is expected that by 2020 that legal cannabis will create more than a quarter of a million jobs. And according to the Bureau of Labor Statistics, this is more than new job creation in manufacturing, government, and utilities. It is expected that 300,000 jobs will be created in cannabis—and that doesn’t take into account states like Michigan, which is just now looking at legalizing adult-use of the plant. Empty warehouses in urban areas can be repurposed for growing facilities as they have in other metropolitan areas.

Grown in Michigan, It Stays in Michigan

All cannabis products grown within a state must stay in that state, it’s illegal to export across state lines. That includes plants and plant products like edibles, oils, tinctures and such. With this restriction, all monies (and jobs) connected with cannabis will benefit Michigan only. That means more payroll taxes, more city income taxes and to benefit people in the mitten state.

image of marijuana which is part of any new marijuana business

Cannabis Taxes Are Improving Communities

“Taxes are what we pay for a civilized society.”

Supreme Court Justice Oliver Wendell Holmes Jr. is credited for saying this in an opinion he wrote nearly 100 years ago.

We’ve been reflecting on this quote since our trip to Colorado on 4/20.

A Closer Look at Where the Money Goes

Consider this receipt from downtown Denver dispensary Native Roots. We found the tax details to be so interesting!  For $48 in products we paid over 20% in taxes—that amounted to nearly an additional $10 on the transaction.

Frankly, we were delighted to pay it. In fact, we might even say that we felt altruistic seeing that we were supporting cultural facilities and RTD (Denver’s bus and rail service provider), in addition to paying the state and municipality taxes.

During our visits to dispensaries (at which there was always a healthy line of customers) we didn’t hear anyone whining over the seemingly hefty cannabis taxes. For us, this was a small price to pay for the chance to legally obtain marijuana products for recreational, adult-use. Cheers to Colorado for tapping into this vast new stream of tax revenue.

Let’s be honest, “stream” seems like an insignificant word to describe what this is really doing for Colorado. Tax flood, perhaps?

It has been reported that cannabis sales in Colorado last year easily topped $1 BILLION.  From that, the state took in nearly $200 million in cannabis tax revenue. Data shows that this amount has been steadily increasingly over the past 3 years.

To be fair, cannabis taxes in Colorado are not (yet) enough to solve all societal woes there. This point was well covered last summer in this story from Colorado’s 9 News. Utopia,no. Better than nothing, for sure!

And the state has not yet reached its full potential when it comes to tax revenue. Not only are sales steadily increasing year-over-year, but now legislators are considering maxing out the recreational marijuana special sales tax to fix the budget. For our receipt above, this could equate to an additional $2.40. Would we pay it? In a heartbeat.

Adult Use Coming to Michigan?

While Colorado is an awesome state, we are really excited for what this could all mean for Michigan, with twice the population of Colorado and an active tourism industry, we could finally solve a few issues here (the pothole-riddled roads). Our enthusiasm elevated last week when our Board of State Canvassers approved the petition to put recreational, adult-use marijuana on the ballot in 2018, assuming the petitioners can garner enough (250,000) signatures with the 180-day time frame.

Help the cause and find a location near you to sign the petition today!