CRA Public meeting scheduled for 09/14/22

The Cannabis Regulatory Agency (CRA) will hold a public meeting on Wednesday September 14, 2022, at 9:30 A.M. For meeting information please see the Public Notice Announcement by clicking here.

The purpose of this public meeting is to hear complaints and receive the views of the public on CRA’s administration of the authorities, powers, duties, functions and responsibilities under Michigan’s marijuana laws.

Specifically, the CRA is seeking public input on the following topic:

The agency has been hearing concerns that the supply of marijuana produced by licensed growers exceeds, or may soon exceed, consumer demand. The concerns include that the wholesale price of flower is lower than the cost of production – or will be when harvests are highest in October. Background data from CRA monthly reports:

  • Between July 2021 and July 2022, the average retail price for an ounce of flower has declined 48% in the medical market (from $213.89 to $110.72) and 44% in the adult-use market (from $217.94 to $121.58).
  • Between July 2021 and July 2022, the number of plants being grown by medical and adult-use growers has increased as follows:
  • Immature plants – 48% (from 282,945 to 417,469).
  • Vegetative plants – 295% (from 228,611 to 903,115).
  • Flowering plants – 69% (from 309,554 to 521,997).
  • Between July 2021 and July 2022, the number of active grower licenses* has increased 65% and the number of active retail licenses** has increased 34%.

* Includes all medical and adult-use grower licenses of all classes, does not include microbusinesses or class A microbusinesses.

** Includes all medical provisioning centers and adult-use retailers, does not include microbusinesses or class A microbusinesses.

Questions for consideration:

  1. Would you support a change in the law to place a moratorium on the issuance of grow licenses? If so, under what conditions? If so, for what period of time?
  2. Should the agency eliminate the excess grower license established in the administrative rules, as authorized by Sec. 8(2)(a) of the MRTMA [MCL 333.27958(2)(a)]?
  3. Should the agency promulgate a rule as authorized by Sec. 9(3)(d)(3) of the MRTMA [MCL 333.27959(3)(d)(3)] to authorize an individual to hold an interest in more than five marijuana growers or in more than one marijuana microbusiness after January 1, 2023?

While the public hearing will be held in person, members of the public will also have the opportunity to attend, participate, and give public testimony via Zoom. The CRA encourages members of the public to participate and provide recommendations to the CRA.

 

Keep up to date on Michigan’s evolving licensed cannabis landscape by staying tuned to Michigan Cannabis Lawyers. Call us today at (517) 512-8364.

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