Representatives of Loom Cannabis told the House Regulatory Reform Committee that Michigan faces a substantial oversupply of cannabis product and urged state policymakers to consider allowing licensed Michigan manufacturers to export federally compliant THC products to national markets.

Kevin Blair and company representatives from Loom described the companys growth and argued that a combination of an incoming wholesale tax and potential payment‑on‑delivery rules would reduce in‑state sales and exacerbate oversupply. "There's about a million pounds of oversupply in the current Michigan market right now," a Loom representative said, arguing that without an outlet the oversupply could grow and many smaller licensees could fail.

Loom suggested Michigan manufacturers are barred from participating in a large national market for "federally compliant" THC (products with no more than 0.3% THC by dry weight under current federal law) because of state licensing and distribution rules, not because of federal law. The company proposed either allowing existing processors to export if they meet compliance criteria or creating an export license available to compliant manufacturers. "One of the things that I think is important to understand is that consumers shop with a very finite budget...So if $20 of that goes to taxes or $25 of that goes to taxes, what that means is that less cannabis is gonna be sold in the state of Michigan next year," a Loom speaker said, arguing that price increases reduce volume.

Committee members pressed Loom on legal risk and on which products would be federally compliant. Loom representatives said federally compliant products are governed by the farm bill definition (0.3% THC by dry weight) and that certain distillate‑heavy vapes and enhanced pre‑rolls would not qualify. Members also asked whether export would require new licensing; Loom said policymakers could add compliance conditions or create a distinct export license open to compliant processors.

Looms testimony raised questions for the committee about enforcement, tax collection and how the state would prioritize tax claims if multiple businesses defaulted. Loom urged the legislature to consider export as a market solution to correct oversupply and argued it would boost taxable sales over time if Michigan producers could access national markets. The committee did not act on licensing or export changes during this hearing.