CRA Announces Historic Cannabis Compact Signed Between State of Michigan and Bay Mills Indian Community

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August 1, 2025 — In a historic development for cannabis policy and tribal sovereignty in Michigan, the Cannabis Regulatory Agency (CRA) and the Bay Mills Indian Community (BMIC) have officially signed the state’s first tribal-state cannabis compact, allowing the Upper Peninsula-based tribal nation to participate directly in Michigan’s licensed adult-use cannabis market.

The agreement, finalized on July 25, 2025, allows Bay Mills to integrate its Northern Light Cannabis Company into Michigan’s statewide Metrc tracking system and access the same wholesale and distribution channels as other licensed operators. The compact marks a major shift in how tribal and state governments can collaborate in emerging, regulated markets.

“This agreement reflects our shared commitment to safe, equitable, and well-regulated cannabis commerce,” said Brian Hanna, Executive Director of the Cannabis Regulatory Agency. “Welcoming BMIC into the regulated framework sets a model for tribal-state cooperation nationwide.”

“This compact represents a historic affirmation of tribal sovereignty and our inherent right to govern economic development on our own terms,” said BMIC President Whitney Gravelle. “We are proud to lead the way in establishing a framework for Tribal-State cooperation in the cannabis industry, one that respects self-determination, promotes equity, and opens the door for future partnerships grounded in mutual respect.”

BMIC was the first Michigan tribal nation to legalize adult-use cannabis on tribal lands in 2019 and launched its own tribally owned cannabis brand, Northern Light, in 2021. The company grows and produces organically cultivated cannabis at a vertically integrated facility in Chippewa County. Until now, its operations were limited to BMIC’s sovereign lands and the limited retail reach permitted by tribal law.

With this compact, BMIC will now be able to:

  • Sell products, including flower, concentrates, and edibles, across the state through licensed distributors and retailers
  • Participate in CRA-led compliance, testing, and inspection protocols
  • Integrate into Michigan’s statewide monitoring system for full seed-to-sale tracking and consumer transparency
  • Operate with the same privileges and responsibilities as other adult-use licensees statewide

The agreement creates a new category of participation in the cannabis industry for sovereign tribal governments in Michigan – one that respects tribal jurisdiction while aligning with statewide regulatory oversight. Importantly, the agreement allows the CRA to conduct inspections and audits, as well as monitor product safety and consumer protections, even on tribal lands, through mutual cooperation.

The tribal excise tax, along with statutorily required distributions from the Marihuana Regulation Fund, are expected to provide significant support to BMIC and its members as revenues will fund tribal infrastructure, education, public health programs, and economic development projects throughout the region.

Currently, 12 federally recognized tribes reside in Michigan, many of which have expressed interest in pursuing similar compacts. State officials and tribal representatives have both acknowledged that clear, legally binding agreements like this one are necessary to avoid jurisdictional confusion, foster consumer trust, and maintain a level playing field in a highly competitive and heavily scrutinized industry.

For answers to frequently asked questions about this agreement, click here.

About the Cannabis Regulatory Agency

The CRA oversees the regulation of cannabis in Michigan, including the state’s adult-use and medical marijuana systems. The CRA is responsible for licensing, compliance, testing, and enforcement. It ensures that cannabis operations meet the highest standards of public health, safety, and fairness.

About Bay Mills Indian Community

The Bay Mills Indian Community, located in Michigan’s eastern Upper Peninsula, is a federally recognized tribal nation and a long-standing leader in tribal economic development. In addition to cannabis, the tribe operates gaming, hospitality, and education enterprises and has a strong record of environmental stewardship and cultural preservation.

Michigan Supreme Court: “A warrantless search must be based on probable cause, and the smell of marijuana is insufficient to support probable cause.”

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Michigan Supreme Court: “The Kazmierczak rule that the smell of marijuana alone is sufficient to support a finding of probable cause to believe a crime was being committed is no longer good law in light of the MRTMA. Instead, the appropriate rule is that the smell of marijuana is one factor that may play a role in the probable-cause determination.”

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Notice of CRA public hearing on proposed updated Rules

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Department of Licensing and Regulatory Affairs  
Cannabis Regulatory Agency  
Administrative Rules for Marihuana Rules  
Rule Set 2023-25 LR  
NOTICE OF PUBLIC HEARING  
Tuesday, May 6, 2025  
09:00 AM  
In person: Sun Conference Room, 2407 N. Grand River Ave., Lansing, MI 48906  
Virtual: https://bit.ly/4bLt2x1 Passcode: 276834  
The Department of Licensing and Regulatory Affairs will hold a public hearing to receive public  
comments on proposed changes to the Marihuana Rules rule set.
 
All rules will be effective 180 days after filing, except R 420.218a will be effective immediately upon filing.  
The purpose of the proposed rule promulgation is to make various updates and revisions to the existing  
Marihuana Rules, including updating, revising, and clarifying requirements pertaining to applicants and  
licensees, the social equity program, the operation of marijuana businesses, production of marijuana  
products, transporting and delivering marijuana, advertising and labeling, sampling and testing, use of  
the statewide monitoring system, and annual financial statements.
 
By authority conferred on the Executive Director of the Cannabis Regulatory Agency by section 206 of  
the Medical Marihuana Facilities Licensing Act, 2016 PA 281, MCL 333.27206; sections 7 and 8 of the  
Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957 and 333.27958; section  
3 of the Marihuana Tracking Act, 2016 PA 282, MCL 333.27903; and Executive Reorganization Order  
No. 2019-2, MCL 333.27001.
 
The proposed rules will take effect immediately after filing with the Secretary of State. The proposed  
rules are published on the State of Michigan’s website at www.michigan.gov/ARD and in the 5/1/2025  
issue of the Michigan Register. Copies of these proposed rules may also be obtained by mail or  
electronic mail at the following email address: CRA-AdminRules@michigan.gov.  
Comments on these proposed rules may be made at the hearing, by mail, or by electronic mail at the  
following addresses until 5/7/2025 at 05:00PM:
 
Attention: Rules  
P.O. Box 30205, Lansing MI 48909  
CRA-AdminRules@michigan.gov  
The public hearing will be conducted in compliance with the 1990 Americans with Disabilities Act. If the  
hearing is held at a physical location, the building will be accessible with handicap parking available.  
Anyone needing assistance to take part in the hearing due to disability may call 517-643-0757 to make  
arrangements.

FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies

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Immediate Release

WASHINGTON––Consistent with the U.S. Department of the Treasury’s March 2, 2025 announcement, the Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.

In that interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements.

Thus, through this interim final rule, all entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines, detailed below. These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner.

Upon the publication of the interim final rule, the following deadlines apply for foreign entities that are reporting companies:

  • Reporting companies registered to do business in the United States before the date of publication of the IFR must file BOI reports no later than 30 days from that date.
  • Reporting companies registered to do business in the United States on or after the date of publication of the IFR have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective.

FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year.

2024 Adult-Use Marijuana Payments Being Distributed to Michigan Municipalities, Counties and Tribes

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CRA Reminds Licensees of Impending FDA Ban of FD&C Red No. 3 Color Additive

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February 18, 2025 – The CRA announced today that it is requiring licensee compliance by January 15, 2027 with the Food and Drug Administration’s recent January 15, 2025 announcement that authorization for the use of FD&C Red No. 3 in foods, supplements, and drugs has been revoked.

CRA licensed producers may be affected by the prohibition of Red No. 3, which is added to products to impart red coloring. Products such as candies, gummy base, powders, and capsules used by CRA licensed producers in edible marijuana products may currently contain Red No. 3.

Producers must work with their suppliers to source alternative color additives and ingredients to those containing Red No. 3. Producers currently incorporating Red No. 3, or an ingredient containing Red No. 3, into products should expect to change written product formulations and labeling to reflect the new ingredient(s) and color additive(s) utilized.

Food and supplement manufacturers must discontinue use of Red No. 3 in products by January 15, 2027, and drug manufacturers must discontinue their use by January 18, 2028.

As the CRA defines edible marijuana products as any product containing marijuana that is intended for human consumption in a manner other than inhalation, all edible marijuana products that currently contain Red No. 3 must be reformulated by the earliest compliance date of January 15, 2027. This includes items that may be offered in forms similar to traditional drugs, such as capsules or powders.

Licensees should note that producers may continue to find that their suppliers offer items containing Red No. 3, as the prohibition for traditional drugs containing the color additive is not in effect until 2028. Additionally, Red No. 3 may still be listed in the Food and Drug Administration’s Inactive Ingredient Search for Approved Drug Products until 2028.

Any questions for the CRA regarding the use of Red No. 3 color additive may be directed to CRA-Enforcement@michigan.gov.

Cannabis Regulatory Agency Announces Voluntary Vape Recall (BLOOM)

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February 11, 2025 – In the interest of public health and safety, Exhale Systems Inc (AU-P-0000495) of Detroit, in conjunction with the Cannabis Regulatory Agency, is conducting a voluntary recall of vapes offered for sale in the Michigan market.

Various flavors of BLOOM Classic and BLOOM Live brand vape cartridges contained Medium Chain Triglyceride Chain (MCT) oil and should not be consumed.

Exhale Systems Inc has identified sales locations that have this product in their inventory and are working with stores to retrieve and dispose of any recalled product in stock.

Sales locations have posted signs advising consumers to return this product to the sales location from which it was purchased or dispose of it.

The impacted products include the following strains: Alien Jack, Blue Dream, Cereal Milk, Champagne Kush, Durban Gelato, Face Off OG, Forbidden Fruit, Green Crack, Jack Herer, Maui Wowie, Pineapple Express, Pineapple Sherbert, Rainbow Runtz, Skywalker, White Widow.

Consumers who purchased these flavors of BLOOM vape cartridges any time after September 1, 2024 should check the recall bulletin. Consumers with a recalled vape should return it to the sales location from where it was purchased or dispose of it safely.

Consumers who have experienced adverse reactions after using these products should report their symptoms and product use to their healthcare providers. Consumers are encouraged to also report any adverse reactions to marijuana product to the CRA via the Adverse Reaction Form or by phone at 517-284-8599. A licensee who becomes aware of any adverse reactions to a marijuana product must notify the CRA and enter the information into METRC within one business day.