(This story was updated at 12:40 p.m.)
THURSDAY, July 1 — Hundreds of cannabis companies — including several brands in Greater Lansing — are pushing back against early plans from a shadowy group of corporate lobbyists who reportedly want to ramp up state regulations for medical marijuana caregivers and patients.
Early plans from the Michigan Cannabis Manufacturers Association to peel back existing plant and patient allowances for medical marijuana caregivers created a rift in the state’s cannabis industry that began in May. Multiple state lawmakers then told City Pulse that the group had been shopping bills that would also require those products be tested at a licensed laboratory.
Activists and caregivers quickly cried foul over the plans to ramp up restrictions, claiming that any changes would only throw a wrench into longtime patient-caregiver relationships and steer up to 72,000 medical marijuana patients away from their caregivers and into licensed shops.
The controversial proposal also triggered some activists to boycott several popular pot brands affiliated with the MCMA — including Skymint and High Life Farms in Lansing. Pleasantrees was also on that boycott list until its CEO and founder Randy Buchman resigned from the group.
And while the MCMA’s plans have yet to transform themselves into any actual pending state legislation, more than 250 cannabis brands and companies have signed on to a petition (of sorts) this week that demands that no changes be made to the state’s Medical Marihuana Act.
Among the Greater Lansing brands and organizations that are pushing back against the MCMA’s plans: The Botanical Co. and Franklin Fields in Lansing, Local Roots Cannabis in Laingsburg, as well as Redemption Cannabis, UBaked, Fresh Coast Extracts, the Michigan Democratic Party Cannabis Caucus, Freedom Coalition and Business Development Group.
The MCMA, the trade group spearheading the crackdown on caregivers, formed in 2019 to “operate exclusively for the promotion of cannabis manufacturers by promoting the common business interests and general welfare of the industry,” according to records in state filings.
Its executive director, Steve Linder, is a longtime lobbyist in state politics and a Republican activist with a history of advocating for more stringent cannabis regulations. Among its board of directors are executives with High Life Farms, Skymint, LivWell and Common Citizen, which Linder has described as the “General Motors, Fords and Chryslers” of the weed business.
Until he resigned last month, Buchman, who is a former caregiver, had served as its president. He has since been replaced by LivWell executive Shelly Edgerton, the former state licensing and regulatory affairs director who helped create the state’s Marijuana Regulatory Agency.
Neither Linder and Edgerton nor executives from any association members have returned calls to City Pulse. The group represents more than a dozen companies, but only a handful have been identified — namely because their executives are listed as directors in state records. A public relations firm hired by the MCMA also refused to identify its members.
A spokesman, instead, told City Pulse that the MCMA represents “nearly half of all multiple Class C cannabis licenses” with a combined economic impact of “nearly $1 billion” in Michigan.
The boycott efforts have also expanded to include brands affiliated with the trade group’s members, including Fluresh, Two Joints, Jolly Edibles, North, Short’s Brewing, Petra, Wana, Sherbinski’s, Kiva Confections, DNA Genetics, Clout King, Chief Solventless and Crown Jewels.
DNA Genetics has reportedly distanced itself from companies affiliated with the MCMA after its plans went public last month, though its products are still available at Skymint in Lansing. The Botanical Co. and Franklin Fields also vowed to stop buying products tied to MCMA brands.
“We stand with our fellow industry professionals in their efforts to stop the attack on caregivers. It is our belief that our industry thrives when small businesses and caregivers can flourish,” officials said in a joint statement. “Our customers and patients remain at the core of what we do and to ensure they continue to have access to the products they rely on, we are actively pursuing the sourcing of high quality products from companies that more align with our mission.”
State law allows licensed caregivers to cultivate up to 12 marijuana plants or purchase up to 2.5 ounces of product for up to five different patients — enabling a harvest of up to 72 plants if the caregiver is also registered as a medical marijuana patient. Unlike retailers, caregivers are not required to submit any lengthy business plans to state officials or pay as much in licensing fees.
Their products also don’t have to be tested at one of the state’s 17 licensed safety laboratories.
The MCMA’s plans reportedly include a new cap of 12 plants for caregivers and a requirement that their products be tracked and tested. The proposed changes have also been billed as a way to cut back on “black market” sales, allowing inspections of grow operations by local police.
State records showed there are about 30,000 caregivers servicing more than 250,000 patients outside of the $1.47 billion licensed retail market in Michigan, including more than 1,200 caregivers and 8,600 patients across Greater Lansing in Ingham, Eaton and Clinton counties. State officials said about 72,000 patients statewide are connected to a licensed caregiver.
The MCMA’s plans would reportedly steer caregivers into a similar regulatory structure required of licensed retailers, pushed as a way to bolster patient safety with new mandates that caregiver harvests also be tested for pesticides, heavy metals and other potentially harmful additives.
Many pot activists, however, would prefer to keep the status quo and have argued that there is very little evidence to suggest that untested caregiver-grown marijuana creates any sort of public health risk. Robin Schneider, the executive director of the Michigan Cannabis Industry Association, said her group (and its 300 members) will also oppose any proposed changes.
“Most of our members are too busy growing their businesses to worry about caregivers,” Schneider said on a recent episode of Jazz Cabbage Cafe. “It’s just not a priority for them. It’s not on their agenda and they also don’t believe in reigniting the war on drugs in order to shore up profit margins. We won’t be supporting anything that is harmful to patients or caregivers.”
After the boycott took off last month, Schneider said businesses affiliated with her organization started to see a rise in sales from retailers who were “being more thoughtful” about product selection. She also cautioned local consumers to be patient with stores, noting that even the most mindful companies will require time to restock their shelves with alternative brands.
Schneider also labeled brands affiliated with the MCMA as “idiots” — namely for “spending a bunch of money and trying to ruin other people’s lives and your brands simultaneously.”
Rick Thompson, who owns the Michigan Cannabis Business Development Group, said forcing caregivers into product testing — which can cost thousands per harvest — only threatens the financial viability of the caregiver model. And with only 17 licensed safety labs statewide for all 30,000 caregivers and none in the Upper Peninsula, accessibility would be an issue, he said.
MRA Director Andrew Brisbo — in an interview with Four20 Post — explained that mandatory product testing for caregivers would also require a “significant increase for expected bandwidth” at safety compliance laboratories. He also said that shifting 30,000 caregivers into a new centralized tracking system similar to the licensed market would create logistical challenges.
He also emphasized that the state is not pursuing any changes to the caregiver program.
The Detroit-based law firm of Dykema Gossett advertises the MCMA as a “key client” on its website, noting its attorneys are responsible for representing the group in lobbying for new legislation. Dykema Gossett has also represented Lume Cannabis Co. since its inception.
This is also not the first time that corporate lobbyists have tried to meddle with state pot law. Another group of Lansing lobbyists pushed similar proposals in 2019 after forming the now-defunct Great Lakes Cannabis of Chamber of Commerce, attempting to rid the industry of caregivers who were “manipulating the medicine with harmful and dangerous additives.”
Jeff Radway, CEO of Skymint, also organized a rally at the Capitol lawn in 2019 amid another failed attempt to remove untested medical marijuana from the market. Those efforts stalled, but his message doesn’t appear to have changed: BigCanna simply can’t compete with affordable prices offered by caregivers — even if they only take up 2-5% of the statewide pot market.
An MCMA-commissioned economic study released from the Anderson Economic Group last week found that annual revenues for the state’s cannabis market are set to hit $3.2 billion. It also found that 70% of transactions still occur “off the books” and outside of licensed stores.
“There are major storm clouds on the horizon,” Linder said in a press release announcing the study. “The study shows that large quantities of untested, illicit cannabis continue to flood the market. This poses a significant threat to patient and consumer safety. The study makes clear Michigan can and should be a leader in cannabis safety, innovation and entrepreneurship.”
Brisbo said state revenue estimates for the marijuana market are still significantly lower than the study suggests — only about $1.4 billion for 2021. And while the volume of products sold is rising, prices are also rapidly falling. Brisbo reported a 46% price decrease over the last year, bringing the average recreational eighter to only $27 — down from about $50 last summer.
“As far as the share against the illicit market? We don’t have that data,” Brisbo said.
Here’s the list of cannabis businesses that do not want changes to the caregiver program:
420 Farm Assist
420 United Canna Care Center
710 Apothecary
710 Wellness
ABKO Labs, Inc
All Star Growers
Alvarez Cultivation
American Wrestling Experience
Americans for Safe Access- Michigan chapter
Ancient Extracts Company
Ann Arbor Monroe Street Fair
Apothecare Ann Arbor
Aronoff Law
Artemis Brands, incl. Dori Balm, Sundara, Blue Sage
B&B Botanicals
Baby E's BBQ
Bad Bunny Nutrients
BC Hemp Company
BDT's Pipe and Tobacco Shops
Best Damn Gummies
Big 3D Printing
Birch Run Wellness
Black and Brown Cannabis Guild
Black Cannabis Access
Black Market
Blooming Botanicals
Blue Sage Health Consulting
Bratic Enterprises
BRBuds Inc
Brown Hemp Company
Calyxeum
Canna Communication
Canna Consult You
Canna Social Equity Fund
Cannabis Counsel Law Firm
Cannabis Evangelists
CannaMiracles
Cannapalooza Worldwide
Cannarose Cannabis Company
CBD Store of Michigan
Celtic Cannabis
Centerfolds
Chamber of CannaBiz
Channel313TV
Chroniseur Grinder Grease
Cind3r Kitten Productions
Claires Gardens
Clone Queens of MI
Clone Star LLC
Concentrates Movement Apparel
Conservative Christians for Cannabis
Cosmic Knot
Country Roots Limited
Craft Hemp Company
Cropscout Christie Consulting
Cultivate MI Solutions
Custom 420 Promos LLC
D'Mirage
Darren McCarty Brand
Decriminalize Nature MI
Deep Roots Consulting
Deliciously Dope TV
Delta Farms
Delta Farms LLC
Depot Town Care Center/Ypsilanti
Detroit Dabs
Detroit Water Brigade
Discount Hydro
Divine Epicurean & Entertainment LLC
Doja
Easton Craft Cannabis
Elliott Ness Untouchable Rub
Etzchaim.biz
eXp Commercial
EZ Swap Pots
Facility Engineering
Farm Assist Wellness
Fee's Intense Training LLC
Four Sticks Management LLC
Franklin Fields
Freedom Green Farms
Fresh Coast Extracts
Funky Extracts
Gator Girl's Swamp
Gen Co Genetics
Genesee County Cannabis Guild
God's Herbal Garden of Healing
Great Lakes Holistic/Battle Creek
Great White Consulting
Green Care Provisioning
Green Cross of MI
Green Eden
Green Girl LLC
Green Harvest Farms
Green Harvest Farms
Green Medicine Shop
Green Pharm
Green Web Design
Greenhouse of Walled Lake
Greening Detroit/Greening Michigan
Griffin Secure Transport LLC
Grow Green MI
Harley Sherman, CPA
HashBash .com
Hashesta Craft Cannabis and Consulting
Healing Leaf Wellness Center
Helping Hand
Hemp for SPM
Hemp Helps Us LLC
Herbal Solutions
Herb & Legend
Herbnmeds and HMN Wellness Store
Hollywood Genetics
Holistic House
Hoolagantic Hippie Productions
Horseshoe Farms
House of Dank
Hydrate Detroit
Ice-THC
Iconic Wellness and Provisioning
IDJ Custom Twist
Integrity Cannabis
IOG Supply Hydro
Jazz Cabbage Café cannabis podcast
JC3
Jukebox Farms
Kejbou Insurance Agency
Knuckleheads Comedy
Lake Effect Group
LEACIF LLC
Leaf Medic
Liberty Meds
Light'N Up Provisioning Center
Lightsky Farms
Lincoln Social Podcast
Local Roots Cannabis
MG Royalty
MI 420 Events
Michigan Cannabis Business Development Group
Michigan Cannabis Chefs
Michigan Cannabis Events
Michigan Cannabis Freedom Coalition
Michigan CannaHouse
Michigan Democratic Party Cannabis Caucus
Michigan Edible Canna
Michigan Hemp Farmer's Association
Michigan Hemp King
Michigan Holistic Health
Michigan Mosaic Energy Cooperative
Michigan Organic Rub
Michigan Plants
Michigan Psychedelic Society
Michigan Veterans for Cannabis Network
Mid Michigan Hemp Supply
Mid Michigan Hemp Supply
Midnight Roots
Midwest Multi Media Management
M L Designs LLC
Mood Jackson
More Than Hope Consulting
Motor City NORML
MSC3
My Cannabis Nurse
Nature's Releaf
Nicely Toasted
Northern Light Cannabis Co
Northern Specialty Health/Houghton
Nuggie.Menu
Octopot
Ohio Green Cross
Om of Medicine/Ann Arbor
Once Bitten Twice Baked
Overgrow Consulting
Pinnacle Emporium
Pott Farms
Premier Meds
Premiere Hemp Company
Prent Entertainment
Pure Lapeer
Rair Cannabis
Rare Findings
Rare Michigan Genetics
Real Leaf Solutions
Red Eye Cannabis
Redemption Cannabis
Remedies Medicinals
Ryekana LLC
Screener's Landscape Supply
Seeds of Love
Sherwood THC
Shoreline MMP LLC
Shoreline MMP LLC
SkunkwerksRX
Smokers Alley Westland
Sparrow Consulting
Sticky Mittenz
Stone Depot
Sunset Coast Provisions
SWS Caregivers
Tang Farms
Tarantula Genetics LLC
Team Ag Solutions
Team Bertram Real Estate One
Terpene Science
The Blue Door Mi LLC
The Blue Room Indoor Garden Supply
The Botanical Co.
The Custom Grow Rooms
The Fire Station Wellness/Mt Morris
The Grassy Knoll
The Groove Shop/Detroit
The Helping Friendly Hemp Company
The House of Gardening
The Law Offices of Bruce Leach
The Nest Provisioning Supply
The Redemption Foundation
The Reef
The Safe Michigan Coalition
The Seed Cellar
The Spott Laboratory
The Sweet Leaf
The Thin Green Line
The Wellflower Big Rapids
The Wellflower Manistee
Therapeutic Horticulture Consultations
Thryv Lyfe
Time Wise Agency
Toledo Hemp Center LLC
Total Health Collective
Tree House Provisioning Center
True Healing Center
True Organics
Trustworthy Holistic Caregivers
Truu Cannabis
Tub Life Bath Co
Tumbleweed Battle Creek
UBaked
Universal Cannabis Technologies
Vehicle City Social
Veterans Liquid LLC
Vibe Inkster
Vigilante Entertainment Group
Vivid Farms
Well Rooted Real Estate
World 3 Judges
Zen Balancing
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