OVER SATURATION IS A MAJOR CONCERN

The marijuana market is sensitive to market conditions just as any other good that is bought and sold. As newer recreational and medical dispensaries continue to open across the state, this has led to oversaturation in the market, and a major dip in prices. In January, the price of marijuana in Michigan hit an all-time low due to oversaturation. This is good news for retailers and customers, but it has smaller growers very concerned. There is so much marijuana available that the prices are dropping, and customers are buying it at a record rate. State records show that there is now 50 times more pot on the market than when marijuana first became legal in Michigan. This is all while Michigan has risen to the fourth largest marijuana market in the United States. Whether this will continue to be an issue will be determined by market conditions as well as any regulations that are imposed by the state government and enforced by the Cannabis Regulatory Agency. 

WHAT IS THE CANNABIS REGULATORY AGENCY?

The Cannabis Regulatory Agency (CRA) is the Michigan governing body that regulates marijuana establishments and monitors those who have licenses to operate marijuana businesses. They enforce the rules set out in the Michigan Regulation and Taxation of Marijuana Act (MTRMA). The CRA also oversees the licensing of patients and caregivers and enforces the rules under the Marijuana Tracking Act and the Medical Marijuana Facilities Licensing Act. While the CRA holds significant power and authority over the Michigan marijuana industry, it does not have the ability to directly set or control prices. Prices are determined by market conditions, such as supply and demand as well as the regulations that are imposed which can affect the supply of available legal marijuana across the state. 

THE LITIGATION AND REPORTING REQUIREMENTS OF THE CRA

All medical marijuana licensees must follow certain financial reporting rules. The reports must be written by a state of Michigan-licensed CPA who follows specific guidelines. Every three years, medical marijuana and adult-use licensees must file a financial statement with the CRA. This is called the Annual Financial Statement (AFS). The requirements for the AFS are released every fiscal year (FY). The AFS will be combined with all licenses being reported in one report, rather than separately for each licensing program. The requirements for FY 2022 can be accessed here as posted by the state of Michigan.

HOW AN ATTORNEY CAN HELP

If you are seeking to enter the Michigan marijuana market as a recreational or medical use retailer, then it is important to have an attorney’s help to properly secure your licensing. An experienced attorney can help you anticipate potential issues that can delay or result in the denial of your application. Make sure you work with an attorney who understands your specific situation, as applications are decided on a case-by-case basis. If you have legal questions, then call us at Zeineh Law so we can help!

ZEINEH LAW PROUDLY OFFERS A FREE CONSULTATION

If you have questions related to marijuana licensing, then it is important to speak to an experienced attorney. At Zeineh Law, we are proud to offer FREE consultations to all prospective clients. If you are in the process of choosing your attorney or are looking for an honest assessment of your legal situation, then our attorneys are available to help you now. Feel free to contact us anytime at (517) 292-7000 or online. Our advice is free, and our conversations will always be protected by the attorney-client privilege. Make your first choice towards success with a consultation with an experienced attorney at Zeineh Law today.