Cannabis attorneys express concerns over CRA's enforcement and fine consistency in Michigan

The Michigan House of Representatives held a meeting on May 15, 2025, focusing on the challenges and regulatory landscape of the cannabis industry. A significant portion of the discussion centered on the enforcement of regulations by the Cannabis Regulatory Agency (CRA) and the impact of fines on licensed businesses.

Participants expressed concerns about the inconsistency in the fine schedule previously established by the CRA. While the agency has made efforts to create a more consistent framework, many in the industry feel that the enforcement of regulations is overly harsh. One speaker highlighted that the high fines and stringent regulations could drive businesses underground, similar to issues seen in other industries, such as meat processing. This sentiment reflects a broader concern that excessive regulation may discourage compliance and incentivize illegal operations.

The discussion also touched on the perception of the cannabis industry and its operators, suggesting that biases may influence the CRA's approach to enforcement. Many licensed operators feel that they are at a disadvantage compared to illegal dispensaries and growers, who operate without the same regulatory burdens and financial obligations.

The speaker emphasized the need for a more balanced regulatory approach, advocating for either comprehensive regulation akin to liquor control or a reduction in regulatory pressure to allow the legal market to thrive. The ongoing presence of a robust black market was noted as a significant challenge, undermining the efforts of licensed businesses and complicating the overall regulatory environment.

In conclusion, the meeting underscored the importance of addressing regulatory inconsistencies and the enforcement of cannabis laws in Michigan. Stakeholders are calling for a reevaluation of the current framework to ensure that it supports legal businesses while effectively managing public health and safety concerns.