But as we enter year #3 of fully legalized marijuana in Michigan, those communities that opted in have found that recreational marijuana means big revenues.

And they continue to grow every year.

Recreational Marijuana Means Big Revenues

As cannabis marketing experts since long before recreational was legalized, we’ve been witness to the wild success of this industry.

Since the beginning of recreational marijuana sales in December of 2019, we’ve seen firsthand how the revenue generated by the state’s marijuana regulation fund have bolstered communities that allowed recreational marijuana retailers in their borders.

And we’re not talking peanuts.

The Michigan Department of Treasury announced last week that opt-in municipalities will split more than $42 million in those revenues. Each county or municipality will receive $56,400 for each retailer. This is twice the amount from 2020.

So that means communities like Ann Arbor, whose recreational retailer locations are seemingly as ubiquitous as Starbucks’ locations, are going to see $1.4 million in revenues. Both Hazel Park and Macomb County will come in with a cool $339,000.

Hamtramck, Ferndale, and Madison Heights will receive $226,000, $169,000, and $113,000 respectively. So yeah, it’s nothing to sneeze at.

How the Revenue Helps Communities

Back in late 2019 when municipalities all over the state were given the chance to opt in or out, most of them chose not to allow recreational marijuana businesses. Again, they had their reasons. Many did keep the possibility open though and have since brought recreational marijuana businesses into their borders.

As a result, each will get a portion of the $111 million collected from the 10% adult-use marijuana excise tax. This money will be distributed most notably to the state’s School Aid fund for K-12 education and the Michigan Transportation Fund.

Unfortunately, Detroit dragged its heels in those first two years. While they allow medical marijuana, the Detroit City Council failed to pass any ordinance to allow recreational cannabis businesses to open in the city. As a result, they won’t see any of these funds. At least, not this year.

But last month, they finally passed an ordinance that will allow for recreational cannabis businesses in the city. And this is great news. Because the Michigan Marijuana Regulatory Agency projects $2 billion in recreational sales for 2022. That’s an increase from the 2021 total of $1.3 billion.

This increase means even more tax revenue for communities that have opted in. And for a community like Detroit that was disproportionately impacted by the war on drugs, this is, at least, some justice.

Looking To Start Your Own Cannabis Business?

Obviously, recreational marijuana means big revenues for communities that have made the choice to welcome it. So if you’re interested in starting a cannabis business in one of those communities, be sure to get your marketing up to speed.

Contact us today to see how we can help with the launch of your business. And if you already have a business, you’ll also want to reach out to us to see how we can make you stand out.

The post Recreational Marijuana Means Big Revenues appeared first on GROW Cannabis Marketing.

Detroit’s recreational marijuana proposal reserves half of those licenses to Detroiters; guaranteeing business for longtime residents.

It’s all part of a social equity program that will give legacy Detroiters top priority in their applications and discounts on city land. On paper, it sounds great. But not everyone is advocating it.

The Road to Recreational Marijuana in Detroit

Recreational marijuana was legalized in Michigan in November of 2018. Even so, it would be close to a year before sales began. Since that time, various cities, towns, and municipalities around the state have started issuing licenses.

Among the first to jump on the recreational train were Inkster, Ann Arbor, and River Rouge. Meanwhile, Detroit City Council members met in January of this year and unanimously agreed that it wasn’t time for adult marijuana sales in the city.

They wanted to hash out the details of their social equity program. Now, nine months later, they’ve done just that.

What the Proposal Calls For

Part of what’s driving the social equity program is the fact that of the 46 existing medical marijuana dispensaries in Detroit, only four are owned by city residents.

Detroit’s recreational marijuana proposal calls for issuing up to 75 retail adult use retail licenses and 35 licenses each for consumption lounges and microbusinesses.

Mayor Mike Duggan said city leaders created this proposal because they didn’t want to see residents squeezed out of the opportunity to be part of this highly lucrative market. Especially since Detroiters have faced so many barriers in the past.

Under the proposed ordinance, 50% of licenses will be reserved for Detroit residents with longstanding ties to the community. This is defined as the following:

• Anyone who has lived in Detroit for 15 of the past 30 years, or
• Anyone who has lived in Detroit for 13 of the past 30 years AND is low income, or
• Anyone who has lived in Detroit for 10 of the last 30 years if they have a marijuana conviction.

Duggan added that the city is working to assist with start-up financing and slashing fees for city residents who are looking to attain a cannabis license. If approved, the licensing process would begin next spring.

But as we mentioned above, the plan is up against opposition. And the opponents mean business.

Could Legal Action Be Taken?

As cannabis marketing experts, we don’t know a lot about the law.

We do know, however, that some law offices are anticipating lawsuits against the city if the proposed ordinance goes through. There is certainly talk of this around the proverbial water cooler at law offices around metro Detroit including the Cannabis Legal Group in Royal Oak.

In fact, the proposal is already facing legal threats against provisions that seem to prioritize Detroit city residents in the licensing process. Opponents argue that some retailers already in the industry will be kept from ever receiving a full license due to the preferential treatment of legacy Detroiters.

A social equity program is absolutely ESSENTIAL to serve those disproportionately affected by the drug wars though. There’s no arguing that. Yet, the parameters of the current proposal could negatively impact businesses that already exist.

Add to that a long and drawn out lawsuit that could potentially take years, and other provisioning centers both in the city and in the suburbs will take a hit. This is the concern expressed by Jerry Millen of The Greenhouse in Walled Lake – as well as other dispensary owners in the suburbs.

No matter how you cut it, it’s a less than ideal scenario in the midst of a pandemic where marijuana retailers have been considered an essential service and allowed to remain open.

As is the case with so many aspects of this burgeoning industry still in its infancy, there seem to be no simple answers.

Hope for the Best for Everyone

We won’t know how all of this plays out until a decision is made about Detroit’s recreational marijuana proposal. But much like the upcoming national election, it looks like the outcome could be shaky.

So stay tuned.

And keep checking back with our blog for all the latest about this and other cannabis related issues.

The post Is Detroit’s Recreational Marijuana Proposal a Good Thing? appeared first on GROW Cannabis Marketing.

Mock says this will result in thousands of people having their cases reviewed, which could lead to them being released from jail or having their record cleared so they can pursue housing, jobs, and other things that were unavailable because of their record.

Timothy Williams and Thomas Fuller of The New York Times say following the legalization of recreational cannabis in California, the law allowed people with past low-level offenses to pay a costly amount of money in order to petition for expungement. This law does offer people with marijuana charges a chance to expunge their record, but only if they have the money to do so.

San Francisco’s district attorney George Gascón says those convicted in his city will not have to file a petition; instead, his office will be automatically erasing about 3,000 convictions. Along with this, Williams and Fuller say about 4,900 felony marijuana charges will be examined by prosecutors who will determine if the charges should be dropped to misdemeanors.

There is controversy surrounding the topic though, as some people are arguing against expunging criminal records. Williams and Fuller say these people believe if someone violates the law they should live with the consequences, regardless of the legal changes.

Overall, they say there’s a variation in how counties are handling marijuana convictions. For example, they say San Diego is also planning to automatically dismiss misdemeanor convictions and reduce felony convictions, but Fresno County is planning to deal with them on a case-to-case basis.

The post San Francisco Dismisses Marijuana Convictions appeared first on GROW Cannabis Marketing.

According to The Detroit News’ Jonathan Oosting, the proposal “has not yet faced any significant organized opposition,” adding, however, that “a group called the Committee to Keep Pot Out of Neighborhoods and Schools had raised $5,000 through Oct. 20, according to state records.” This sum is dwarfed by the nearly one million raised and spent by The Commission to Regulate Marijuana Like Alchohol, further signifying the turning of the tide when it comes to how the public views marijuana use. Oosting also notes that, “Michigan could be the only state in the Midwest with a recreational proposal on the ballot in 2018 … making it a potential battleground for interest groups around the country that support or oppose legalization.”

If passed, the proposal would make recreational use (in private) and possession (up to a certain amount) of marijuana legal in the state. Marijuana would be heavily taxed, with state revenue going towards medical marijuana research, education, and Michigan infrastructure.

The post Recreational Marijuana Likely for 2018 Ballot appeared first on GROW Cannabis Marketing.