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LANSING, MI — The Michigan House on Wednesday signed off on sweeping plans to create a highly-regulated medical marijuana industry and allow patients to purchase the drug at storefront dispensaries, which would be taxed.

"These are regulated, inspected facilities where patients can feel safe obtaining their medicine," said Rep.. Mike Callton, R-Nashville, who sponsored the main legislation.

 

House Bill 4209, approved in a 95-11 vote and now heading to the Senate, would create a new state board to license dispensaries, large-scale growers, processors, distributors and testing facilities in communities that allow them.

 

The House also approved bills to create a "seed-to-sale" tracking system for medical marijuana and extend legal protections to registered patients who prefer to use non-smokable forms of the drug, including edibles and oils.

 

A series of state court rulings have clouded the legal status of dispensaries and marijuana-infused products, which some patients — and parents of sick kids — find more effective and healthier than smoking.

 

"This is not a criminal justice issue, this is a health issue, and even more it's a moral issue," said sponsoring Rep. Lisa Lyons, R-Alto. "Put yourself in these peoples' place. What would you do if it was your child?"

 

Combined, the three-bill package would make the most significant changes to Michigan's medical marijuana program since voters approved use of the drug in 2008, but they would not eliminate the current patient-caregiver system that allows for limited home growing.

 

Dispensary owners would be required to pay a 3-percent tax on their gross retail income, and proceeds would be divided between local municipalities, counties, sheriff's and the state's general fund. Patients would also be required to pay Michigan's 6-percent sales tax on dispensary purchases.

 

An earlier draft of the bill would have seen the state impose an 8 percent tax on dispensaries, but critics argued the higher rate would have led to unreasonable prices for patients and encouraged continued trade on the black market.

 

State Rep. Jeff Irwin, D-Ann Arbor, called the bills "imperfect but a good compromise," a sentiment also expressed by Robin Schneider of the National Patients Rights Association.

 

"I think it's a workable system," she said. "It will provide safe access for patients and require testing, proper packaging and labeling. This will be good for patients."

 

But some long-time medical marijuana advocates remain unhappy the the proposed distribution system, which would create additional bureaucracy and prohibit registered caregivers from selling their excess home-grown pot to dispensaries.

 

"The biggest problem we're concerned about is the criminality of people involved in medical marijuana," said Matthew Abel, an attorney and executive director of Michigan NORML. "While these bills go quite far in allowing infused products and dispensaries, they freeze out of the system all the people who are currently growing. All of them."

 

The regulatory system would not be cheap to maintain. The House Fiscal Agency estimates that the Department of Licensing and Regulatory Affairs, Michigan State Police and the attorney general's office would have to employ more than 100 full-time employees to handle licensing, enforcement and prosecution related to medical marijuana.

 

To cover those costs, the state would require licensees to pay application fees and an annual regulatory assessment. One bill specifies that the assessment for a CLASS A grower, who would be allowed to maintain 500 plants, could not exceed $10,000, but other rates are not specified.

 

The House approved less strenuous dispensary and edible legislation last year, but the bills were buried in the Senate when law enforcement officials raised concerns about the "uncharted course" they would forge.

 

This time around, Callton made it a point to seek input from law enforcement groups earlier in the legislative process, and he said the looming possibility of full legalization made them more willing to consider medical regulations.

 

Still, the new-look bills face an uncertain future in the Senate, where Judiciary Committee Chairman Rick Jones is likely to propose changes.

"I'm disappointed that they lowered the tax. I think that was a mistake and we're going to revisit that," Jones, a former sheriff, said earlier Wednesday before the House vote.

 

"I'm going to make sure that Michigan State Police, the sheriff's, the chiefs of police and the prosecutors are on board, so I may have to tighten it up a bit, but I do anticipate passing the bills."

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I do not know if they are waiting on the Governors desk or not but it wouldn't surprise me one bit because a few years ago SB660 passed and he signed that into Law first thing after the xmas break or day after new years

 

Imo they wont pass because they will only confuse people and the Court more then they are already and the 50  plus of pages did help and even the Armor Truck they would need a fleet of them to drive my Cannabis around town 

 

So i wouldn't worry about any cannabis Laws getting passed this year that will help us sick people out the rich will be the only ones and they keep trying 2016 will be a Fun year for cannabis users and the sick Imho set back and enjoy the ride

 

More Bars,Walls, And guards . is what the government wants 

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LOL, so they are worried about the black market but they give no outlet for caregiver overages.  Real worried, I bet.

This is a catch 22 situation for law enforcement if they allowed the caregiver overages to be legally provided to a legit dispensary this would cut down on the raids and criminal charges that brings revenue and fills the jail cells and prison beds its job security for corrections law enforcement judges prosecuting attorneys clerks bailiffs I could go on and on but I think I made my point.

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Ya, that was sarcasm.  I know why they did it.  Job security, our gov't is run for the rich, corporations, politicians and cops, then the people.  There may be a few factions I forgot, and the military should be listed as after the citizenry!  They do the fighting then get thrown to the side when they return. America, what a country!

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I am not an active participant in the caregiver business and my familiarity with the caregiver-patient market is based solely on subjective speculation.

 

Will passage of these bills affect the current rules governing count and weight limits?

 

How will affect existing caregiver-patient market, if at all?

 

I also wonder if recent events at the national level will limit the effectiveness of the political pressure the police chief's lobby invests in continuing to use prohibition as a source of funding.

Edited by outsideinthecold
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My recent experience in WA gave a glimpse of a their market. It seems it has three elements, medical, legal recreational, and the extra-legal gray/black market?

 

As a MI patient visitor it was my impression the mmj I was given for a pre-determined donation by the WA mmj provider was legal simply because the PA's statewide had finally given up on trying to enforce small amount mmj 'sales' like mine regardless of their right to do so.

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"Will passage of these bills affect the current rules governing count and weight limits?

How will affect existing caregiver-patient market, if at all?"

 

To the best of my knowledge, this has nothing to do with the current Patient/Caregiver/2.5oz per law we are currently living under.

 

Basically, this is a way for communities to have dispensaries, if they want them, and the rules they must follow.

 

That was opinion, and here is a question:  Will these new bills affect the G3C Farmer's Mkt. in Flint ??

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