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New Michigan Cannabis Laws in 2018: Opportunities and Risks

Michigan’s legal cannabis landscape continues to evolve. For a decade, Michigan has supported medical marijuana. All 83 counties in the state blessed the measure that legalized medical cannabis. And this year, Governor Snyder signed the Public Act 10 of 2018 into law, amending Michigan’s Medical Marihuana Facilities Licensing Act to ease cannabis transport rules, and to permit Michigan growers and processors to sell a range of products, plants, seeds, and tissue cultures to their peers. The change will expand botanical and medical innovation. There’s more. Michigan law now protects the industry’s Certified Public Accountants, credit unions, and banks from criminal, civil, or licensing penalties.

Next up: Bills (HB 4877; SB 813 in the House and Senate, respectively) could end Michigan’s adult-use marijuana prohibition and enable legal sales and, of course, tax revenue. Additionally, on June 5th the state certified the Michigan Marijuana Legalization Initiative for the November 2018 ballot, to legalize adult-use marijuana and industrial hemp, with municipalities free to restrict or bar marijuana operations within their city limits. Legalization has backing from the National Patients’ Rights Association, the State Bar’s Marijuana Law Section, and the American Civil Liberties Union.

With Opportunity Comes Risk

Businesses will need to watch for inadvertent sales to minors, and ensure that what’s sold:

  • is free of toxic pesticides;
  • comes in safe and child-resistant packages with compliant labels;
  • doesn’t exceed the tetrahydrocannabinol maximum;
  • follows onsite security requirements, covering everything from alarms to lighting;
  • doesn’t resemble candy for children;
  • is stocked and sold in a visually discrete manner, and not with tobacco products;
  • adheres to recordkeeping and tracking requirements;
  • is sold only by employees aged 21+;
  • follows allowable methods for advertising, transport, and licensing for any given segment of the industry.

Limits must be followed as well, both for possession and cultivation.

Protect Your Business with Cannabis Insurance

Product liability insurance addresses consumer-related risks. It shields a business from heavy tort exposure or losses due to product recalls.

Given the patchwork of laws businesses work with, any point in the supply chain is vulnerable to legal actions.

Questions about cannabis insurance and your business? We’re here to guide and advise. Connect with Cover Cannabis.