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.

It’s not a bad idea.

After all, having to deal with a viral outbreak like this is unprecedented in our era.

So there’s always the that chance dispensaries will have to close their doors too.

Dispensaries Selling Recreational Marijuana Experiencing Crowds

This past weekend, the Green House in Walled Lake had their grand opening for selling recreational marijuana.

And there was a good crowd.

Of course, some of that could have been because it was the first day of recreational marijuana sales there. It was also the weekend before St. Patrick’s Day.

But it’s safe to assume that were also people there who were stockpiling in light of the COVID-19 virus.

Even in other locations where recreational marijuana has been available for a while, dispensaries have seen an uptick in their business as well.

Trying to Avoid a Dire Situation

For some folks, running out of their recreational marijuana would be drag, to be sure. If they’re used to the calming high that comes with regular use, they’ll feel uncomfortable for a while if they run out.

So it makes sense that they would be stockpiling it. Especially given the rise in anxiety due to the spread of the COVID-virus and all the uncertainty that surrounds it.

For medical marijuana patients though, the situation is much more dire should they run out of their medicine.

For those customers, purchasing a few months worth of marijuana products will be necessary in managing chronic pain or symptoms during potential quarantine.

It becomes even more important when you consider the fact that many of these patients may not be able to get to the pharmacist or to doctor’s appointments in order to get their regular prescriptions refilled or renewed.

Plus, you can’t stockpile traditional pharmaceuticals. Even in this state of emergency.

So having that extra cannabis on hand could make all the difference.

Dispensaries Taking Necessary Precautions

As of the date of this post, dispensaries remain open.

But they’re taking COVID-19 very seriously. Employees wear latex gloves, and bottles of hand sanitizer and disinfectant spray sit beside each checkout station.

Facilities are cleaned overnight and daily in response to concerns about the virus.

To further limit contact with others, they are also putting quick in-an-out checkout methods into place. It is possible that they’ll soon have to move to a “reserve ahead only” status – as have many dispensaries on the east cost.

But for the time being, you can still go into the dispensaries to secure your cannabis. So don’t hesitate!

Stocking up on Cannabis Makes Sense

Whether you’re a medical marijuana patient or just a cannabis enthusiast, it’s feeling more and more like stocking up on cannabis is a wise decision.

Nobody knows what’s coming next in term of this virus – or for how long we might have to avoid contact with one another.

Ease the anxiety of all of this with marijuana. And we’ll see you on the other side of this!

Keep checking back with our blog to get the latest updates.

The post Should You Be Stocking up on Cannabis? appeared first on GROW Cannabis Marketing.

And while it’s made a comeback, it still has its fair share of problems. Allowing recreational marijuana sales in the city would help it to further thrive.

Yet two days ago, the Detroit City Council voted unanimously to extend an existing temporary ban on recreational marijuana businesses until at least March 31.

So why is there still no recreational marijuana in Detroit!?

Rewind to November 2019

Honestly, the whole thing is complicated.

Last year, LARA’S Marijuana Regulatory Agency (MRA) set an opt-out date deadline of November 1st for communities that didn’t wish to sell recreational marijuana.

Despite warnings from LARA, the Detroit City Council failed to opt out by this date. In the meantime, Detroit businesses seeking recreational marijuana licenses began submitting applications.

Then on November 12th, the council passed a temporary ban that would run through January 31st of this year.

In the meantime, several Detroit businesses had submitted applications for recreational marijuana. They believe LARA is obligated to issue them licenses and are suing them in a Court of Claims.

We’ll have to see how that plays out.

So Why Extend the Ban?

The members of the City Council feel that they need to set a standard for inclusion. And they need more time to do it.

This effort is led by City Councilman James Tate. Tate stresses that this massive money-making industry should have a pathway for residents of the city to be gainfully employed.

That means more than pushing a mop or working security at a dispensary.

“It’s clear that Detroit’s medical marijuana industry is overwhelmingly owned and operated by individuals who don’t live in the city and take their dollars back to their communities,” Tate says.

“It’s critical that we take the necessary time now to ensure that Detroit’s impending recreational marijuana industry will properly reflect the demographic of the city it’s located in.”

In other words, Tate wants to take this extra time to create legislation that would remove barriers to entry that impact mostly people of color.

This certainly makes a lot of sense.

But while they’re working out logistics, there’s one big problem. The strong presence of the black market.

Detroit’s Black Market

By 2015, the number of unlicensed marijuana dispensaries operating inside Detroit’s 140-square-mile border was estimated at over 150.

An increase in law enforcement has put a dent in proliferation. Still, many of these businesses continue to operate. And they’re not always running out of brick-and-mortar locations.

To make matters worse, Detroit has experienced increased violence already this year. Since the beginning of 2020, there have been a total of 17 homicides and 32 nonfatal shootings.

And according to Detroit Police Chief James Craig, black-market marijuana is responsible for “most” of this increase.

What No Recreational Marijuana in Detroit Means

Opponents to the ban feel that what’s killing people is not marijuana, but rather the prohibition of it. Without places in the city where folks can consume marijuana recreationally, people will continue to find it on the black market and it will, therefore, thrive.

They also feel that the Detroit City Council has been dragging their heels.

One of the requirements of the 2018 voter-passed recreational marijuana legalization was the creation of a Social Equity Program that would encourage industry participation by those who have been disproportionately impacted by marijuana prohibition and enforcement.

The City Council has had a year to create this, but still have no working draft.

So while many opponents to the ban agree that an economic development opportunity to benefit Detroit residents is crucial, they also note that the city and its residents are ironically losing millions of dollars in economic development for every week they fail to implement the recreational adult-use licensing program.

There Are No Simple Answers

Who knows how much longer will there be no recreational marijuana in Detroit.

It’s completely logical that the post-bankrupt city of Detroit wants to institute recreational marijuana in the right way versus the fastest way.

Yet, crime is increasing and the city is losing a lot of money in the process of trying to determine just what the right way is.

We’re in the business of cannabis marketing, not litigation. But from where we’re standing, it’s impossible to say one is right and one is wrong.

We just hope they figure it out soon.

For more up-to-date information on cannabis issues in Detroit and beyond, keep checking back with us.

The post Why Is There Still No Recreational Marijuana in Detroit? appeared first on GROW Cannabis Marketing.

With long lines and waits up to two hours in some locations, provisioning centers have been swamped with customers since purchasing recreational marijuana became legal on December 1st.

So by spring, residents of some Michigan communities will be able to connect with their local cannabis provider via the internet and set up recreational marijuana delivery to their homes.

If the timing is just right, it’ll get there when the pizza does.

Increasing Accessibility

Customers are showing up at dispensaries that sell recreational marijuana an hour and a half before they open, and coming in after they close.

So to ease this situation, the Marijuana Regulatory Agency (MRA) has authorized three Michigan businesses to deliver adult-use marijuana.

It’s a solid effort to increase accessibility to the legal market, while decreasing accessibility to the illicit market.

Plus, it provides increased opportunities for recreational marijuana providers, while ensuring their customers are protected. Of course, business owners will have to follow certain rules and protocol to ensure  this safety.

And those rules and protocol are already in place. Nearly 40 medical dispensaries in Michigan already offer delivery and there have been no reports of any problems.

How Recreational Marijuana Delivery Will Work

You won’t be able to call up the dispensary and place your order, but it’ll be similar to placing an order for pizza online.

Once difference is that you’ll need to provide an ID to verify that you’re 21 or older. And while most payments are handled online, delivery services will be permitted to accept cash.

Another thing that’s different is that there’s a limit. While you can order as many pizzas as the delivery driver can fit in his or her car, there is a 2.5 ounce limit on marijuana. And if you’re looking for marijuana concentrate, the limit is 15 grams.

In addition, delivery services must be part of a dispensary rather than outsourced (i.e. DoorDash or UberEats). You also won’t see marijuana delivery vehicles with giant hemp leaves plastered on the sides. They can’t be labeled at all.

Drivers must be 21 or older and can’t carry more than 15 ounces of marijuana at any given time. Cannabis must be secure if it’s left in the vehicle, and the driver must have GPS to be in constant contact with the dispensary.

How much will it cost? That has yet to be determined.

Early Adopters

The first three facilities that have been approved for recreational marijuana delivery are in Evart, Burton, and Battle Creek.

Business owners are excited. They’ll be able to lessen waiting times, decrease lines, and provide access to patients who would otherwise have a difficult time getting to their facilities.

It won’t happen right away though. They’re all working with the state to ensure that everything is 100% compliant. And they have yet to determine their delivery areas, how much it will cost, and potential need for more personnel.

But if all goes well, there should be door-to-door marijuana available in parts of these communities by spring.

Just in time to enjoy some flower with the new flowers.

Looking for Marketing That Delivers Results?

Recreational marijuana delivery is just another sign of the industry’s rapid growth and expansion.

So if you have a cannabis business and aren’t seeing the results you want from your marketing and public relations, then contact us.

We’re specialize in cannabis specific communications and marketing and we know what works.

The post Recreational Marijuana Delivery Is on Its Way appeared first on GROW Cannabis Marketing.

For what?

In case you didn’t read the title of this post, determining rules for regulating recreational marijuana sales in Michigan.

The group included medical marijuana businesses, lawyers, municipal representatives and interested individuals willing to give their feedback.

Attendees say that the officials didn’t cue them in on rules they were considering at this point. They simply wanted input.

Time Is of the Essence

Historically, LARA has been monumentally slow in matters of procedure. That’s not a dig. Just a fact.

But the attendees of the meeting felt that LARA was going to act swiftly and quickly – predicting the likelihood of seeing rules taking shape in the next three months.

And that’s good.

Because even though voters legalized recreational marijuana over five months ago, there can be no retail sales of it until the rules are in place.

The deadline, by state law, is this December. But the expectation is there will be drafts done by June.

The Rules for Regulating Recreational Marijuana in Michigan Are Crucial

Before any license applications can be accepted, the state needs to set these rules.

And for at least the first year of the adult-use (i.e. recreational) marijuana program, most licenses will likely be issued to businesses that already have a medical marijuana license.

What does that mean?

In a nutshell, it means that medical marijuana provisioning centers may also be able to sell to anyone over the age of 21. And how that’ll work is important to provisioning centers.

Many provisioning centers are adamant that they didn’t want to have a separate entrance way or counters for those using marijuana recreationally. Rather, they would prefer a point-of-sale system that would record whether the customer was a patient or a recreational user.

This is the sort of input that the officials at LARA need. And it’s not exclusive to the concerns of provisioning centers.

Concerns from Municipal Leaders

Municipal leaders are seeking guidance and clear interpretations of the law  from state officials. Especially when it comes to changing rules.

Cindy Berry is the elect clerk in Chesterfield Township. ”Overwhelmingly, all of the municipalities are looking for some kind of support for whatever we intend to implement at a local level,” she says. “We’re looking for support from the state to be able to have some teeth in that.”

Municipal leaders would also like for the state officials to back up local ordinances and to see the implementation of objective licensing programs.

“We would like to see rules that help us in that process and allow us to have similar zoning for both types,” says Adrian City Attorney Tamaris Henagan. “And we also wanted to impart on the state that we need strong partnerships with municipalities — not that the state has not assisted us, but there’s differences or maybe a lack of communication between the state and the municipalities as we’ve all been through this process for the past year or so.”

In addition, some communities have concerns if adult-use marijuana sales are too highly regulated, it will lead marijuana businesses to fail and, in turn, leave empty storefronts in their community.

Looking At New Rules for Testing

Of course, processors have concerns as well. And of late, proposed testing laws have made things even dicier.

Ben Rosman of PSI Labs would like to be able to hire someone to their staff that has some serious technical chemistry chops. He’d also like the to see the state add some more acceptable pesticides, as well as regularly meet with testing labs to determine what’s working and what’s not working.

Now the rules only seem to change when lobbying is involved.

“A lot of that (change) has come from us nudging and pushing and lobbying,” Rosman says. “I started this coalition of testing labs. A big part of that is so we would have a unified voice in pushing them harder.”

There Is Much to Determine

State officials have their work cut out for them. And hopefully they will learn from the mistakes other states made in this process.

As a cannabis business owner, you can only offer your input and hope that state officials are listening. But what you DO have control over is your marketing strategy.

So while you’re waiting for the state to establish rules for regulating recreational marijuana sales in Michigan, contact us to ensure that your marketing is up to snuff.

Make the transition easy on yourself.

The post Regulating Recreational Marijuana Sales in Michigan 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 Thomas Fuller of the New York Times, this will lead to the world’s largest market for legalized recreational marijuana. For example, Fuller says on Monday one person purchased over $1,000 worth of cannabis from a dispensary in Oakland, and that is just one location.

Fuller says California’s new cannabis regulations limited the number of shops offering recreational marijuana on Monday to just a couple of cities across the state. He says some of these cities include, Berkeley, Oakland, San Jose and San Diego.

On the other hand, Brian Melley of Time Magazine says Los Angeles and San Francisco are just two of the many cities that still aren’t selling recreational cannabis because local regulations weren’t approved in time. Also, he says some communities have even adopted laws forbidding recreational marijuana sales, including Fresno, Bakersfield and Riverside.

Along with limiting the number of shops, there are a number of other regulations that go along with the legalization of recreational cannabis in California. Bruce Haring of Deadline names a couple of these. He says you can’t smoke in public, or within 1,000 feet of a school or daycare center when children are present. Also, you can’t smoke and drive, and local governments have the authority to make their own rules governing use; which Haring says he believes will cause further confusion.

Jim Wilson of The New York Times mentions another confusing factor that goes along with the passing of recreational marijuana in California. Wilson says that although marijuana is legal on a state level, it is still illegal on a federal level. He says according to the Federal Drug Enforcement Administration, marijuana is a Schedule 1 drug which is in the same category as heroin. Wilson says he believes this new law will raise tensions between the state and federal drug enforcement officials.

Haring also says that purchasing marijuana from local establishments will be more expensive than the street versions since there are now taxes imposed by the state. In fact, Theresa Waldrop of CNN says state and local taxes are going to add a hefty chunk to the price of marijuana. Waldrop says depending on where it’s bought, these taxes could cause as much as a 45 percent increase in cost. In the end, cannabis financial analyst GreenWave Advisors estimates that California’s cannabis industry could be worth $5.1 billion in 2018.

The post The Legalization of Recreational Marijuana in the State of California appeared first on GROW Cannabis Marketing.