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The Michigan Legislature is extending an olive branch (er, stem, er, weed – ugh, are there no new pot puns left?) to the marijuana industry.
After adding a big new tax on legalized marijuana in Michigan (that, as newsletter readers know, is already being challenged in court), the Legislature is turning its attention to bills to stabilize a market that is widely agreed to be too crowded.
The legislation is a bone thrown to existing pot businesses who are complaining that the new wholesale tax signed into law earlier this month to raise money to “fix the damn roads” is going to cause a crash in the Michigan marijuana marketplace.
The nascent set of proposed rules, which were discussed this week at a state Senate committee hearing, would create a system similar in many respects to Michigan’s three-tier system for taxing, regulating and licensing bars, liquor stores and alcohol distributors. It was created to deal with the burgeoning re-legalized alcohol industry and scrub out criminal elements once Prohibition was lifted in the early 1930s. Sound familiar?
A marijuana regulatory scheme that benefits existing cannabis businesses could be a market stabilizer and relieve some of the legislative/gubernatorial-enacted angst while the challenges play out in court.
One critical thing to remember is that getting these bills through the Legislature would require three-quarter supermajorities in both the House and Senate in order to amend the 2018 voter-initiated law that legalized marijuana in the state.
So, there will have to be almost universal, bipartisan, bicameral buy-in in the Legislature.
Industry representatives say they want the lawmakers to address unfair competition from purveyors of cannabinoids and intoxicant-infused hemp products that currently evade regulation and are sold in gas stations and party stores that don’t need to be licensed. These also present health and safety issues, especially flavored products marketed to younger consumers.
The industry and the Legislature also want to limit and cap new entrants into the market to stem (ha!) plummeting prices and keep existing marijuana businesses from failing. That is, ones that aren’t already about to succumb to an overly crowded marketplace.
One interesting idea floated during the hearing was the possibility of creating some carveouts in density standards regarding how many marijuana businesses can locate in a community. That would potentially allow for marijuana tourism – like wine country for pot enthusiasts.
There is no marijuana tourism legislation drafted, but if and when that’s dropped, it will certainly be an interesting discussion. There are plenty more hearings planned before any of this is moved ahead for floor votes.
“This is a starting point,” said Senator Sam Singh (D-East Lansing), one of the bill sponsors. “There’s still work to be done.”
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Have questions about Michigan politics? Or, just want to let us know what you want more of (less of?) in the newsletter? We always want to hear from you! Shoot us an email at politics@michiganpublic.org!
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What we’re talking about at the dinner table
TSA at DTW: The agency that runs Detroit Metro Airport (DTW) has asked the Transportation Security Administration (TSA) to stop airing a partisan video on checkpoint monitors. That’s because, as Michigan Public’s Tracy Samilton reported this week, “the video by Homeland Security Secretary Kristi Noem blames Democrats for the federal government shutdown. Some other airports in Michigan operate the checkpoint monitors themselves, and they say they're not airing the video. But Detroit's monitors are leased and controlled by the TSA. In the meantime, the airport authority has put up signs at the airport saying the videos don’t represent its views and that the agency doesn’t engage in partisan politics.” Tracy reached out to the TSA for comment, but they couldn’t be reached “because its press contact email has been disabled.”
Ready, Set, Spring: Before general elections, Michiganders don’t get to choose their candidates for attorney general, secretary of state or the state supreme court in primaries. Rather, the state’s political parties hold endorsement conventions for those positions and more (including officials on the state’s three largest university boards). In the past, party conventions have typically taken place after primary voters choose gubernatorial candidates who will appear at the top of the ballot. Michigan Democrats announced this week they plan to hold their endorsement convention next April in Detroit, The Detroit News’ Craig Mauger reports. Republicans announced earlier they’ll hold their convention in March. As Mauger explains, “The development means both Michigan Republicans and Democrats have chosen to set early endorsement conventions for next year's election, instead of using the traditional timeline of nominating candidates for state offices in late August.”
No Kings in MI: It’s expected that millions of Americans will turn out across the country to protest on Saturday as part of the “No Kings” demonstrations against Trump administration policies. “In June, organizers estimated that 5 million people participated… in more than 2000 events. They are projecting an even bigger turnout this weekend,” NPR’s Alana Wise reports. “When asked about the planned protests… White House spokeswoman Abigail Jackson replied, ‘Who cares?’ She had no further comment.” The Detroit Free Press reports there are nearly 100 protests scheduled in Michigan. “Groups will host protests in cities across Michigan's Upper and Lower Peninsula at landmarks and in open spaces where people may easily gather, such as the Michigan State Capitol.”
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Yours in political nerdiness,
Rick Pluta & Zoe Clark
Co-hosts, It’s Just Politics
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