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Michigan Regulation and Taxation of Marihuana Act

  • Under Proposal 1, personal use and possession of marihuana will be legal for those 21 and over.
    • Personal use is defined as 2.5 ounces in possession, or up to 12 plants in a home for personal use.
  • Commercial marihuana will be established following rules developed by the Michigan Department of Licensing and Regulatory Affairs (LARA). Municipalities can prohibit commercial businesses in their communities. The Ballot Proposal requires LARA to begin issuing licenses within 12 months of the passage of the act – December 6, 2019.
  • This act also allows for the production of industrial hemp.
  • This act does not authorize:
    • people to operate vehicles or other machinery under the influence of marihuana
    • butane extraction in residential property
    • possession in schools
    • consumption in a place prohibited by the property owner
    • consumption in public
    • marihuana edibles that can appeal to children
  • Commercial sales of marihuana will be subject to a 10 percent tax. The revenue generated from this tax will be distributed as follows:
    • 15 percent to cities and townships
    • 15 percent to counties
    • 35 percent for the school aid fund
    • 35 percent for roads
  • There are a number of implementation issues that must be worked out by the State of Michigan going forward. Some of these issues include:
    • Michigan’s indoor smoking law does not protect against second hand marihuana smoke. Current law that prevents second-hand smoke is limited to tobacco. While public use is not authorized by the act, public use is likely to occur.
    • This act would prohibit legal use of marihuana from being the reason child custody or visitation are restricted unless they are creating an unreasonable danger for the child. This could potentially impact children services workers and cases.
    • In addition, there are likely to be questions about how legalized marihuana will impact the public health of all residents. There will need to be work done by the entire State of Michigan to gather more information as the act goes into effect.