Protecting Your Michigan Cannabis Business from Potential Risks Posed by Former Employees

Published 1 year ago Business & Industry
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In the budding world of the Michigan marijuana industry, terminating an employment relationship is not just a matter of human resources; it's a strategic business decision fraught with potential risks. The fast-paced growth of the cannabis sector means that departing employees might:

  1. Launch a new cannabis enterprise, directly competing with your brand.
  2. Align with established marijuana competitors, transferring the exclusive knowledge, cultivation techniques, and potentially sensitive trade secrets they acquired during their time with you.
  3. Directly approach and woo your loyal cannabis clientele, affecting your market share.

Given Michigan's strategic position in the burgeoning national cannabis market, businesses can employ legal safeguards to manage these risks. Depending on Michigan's evolving cannabis regulations and broader employment laws, marijuana businesses may consider entering into non-compete, non-solicitation, and non-disclosure agreements with their staff. Yet, it's vital to tread carefully. These agreements often undergo stringent scrutiny under state law, especially when they may impede an individual's right to participate freely in the lucrative marijuana market.

However, the stakes are arguably higher in the cannabis sector than in many other industries. The Michigan marijuana market's intellectual property is a treasure trove of innovation, from unique cannabis strains to specialized extraction methods. Imagine an employee leaving a Michigan-based cannabis enterprise, relocating to California, and initiating a mirror-image marijuana venture—leveraging the same brand names, logos, and marketing techniques. Without preemptive measures taken in other states, a Michigan cannabis brand could find its hands tied, unable to prevent such brand replication.

This underscores the essential nature of robust employee agreements in the marijuana business. While the national landscape doesn't yet fully embrace cannabis, including limitations on federal trademark registrations, Michigan cannabis companies can utilize employee agreements as strategic tools. By doing so, they can ensure their intellectual property rights, brand identity, and market position remain unassailable, both within Michigan and beyond its borders.


Michigan's Cannabis Social Equity Program Explained

Published 1 year ago Safety & Education
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The Cannabis Regulatory Agency (CRA) has launched a Social Equity Program to support residents from areas most affected by previous marijuana laws. This initiative is based on the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Its goal is to boost involvement in the cannabis industry for those from these affected communities.

Warner's Cannabis Industry Group wholeheartedly supports this initiative. They commend the incentives given to those who suffered due to past marijuana restrictions. The group also praises businesses that give back to their local areas. These standout businesses are spotlighted in the "All Star Program", which we'll dive into later.

Who Can Join & What Are The Benefits?

Qualifying for the Social Equity Program:

  • 25% Fee Discount: Live for a total of five years in a CRA-identified community that was affected by old marijuana laws. (Check the CRA's list for eligible communities).

  • 25-40% Fee Discount: Have a past marijuana-related conviction—25% off for misdemeanors, and 40% off for felonies.

  • 10% Fee Discount: Were a caregiver under the Michigan Medical Marihuana Act for any two years between 2008 and 2017. (Refer to the infographic for more details).

To prove eligibility, like residency in an affected community, one might need to provide documents such as mortgage statements, tax documents, or utility bills.

New members can enjoy these Social Equity Program benefits for two years. After that, they can renew their membership annually.

Already involved in the adult-use cannabis business? You can join the Social Equity Program anytime by filling out an "EAL" form. However, you can't apply discounts retroactively. Yet, once part of the program, you'll get fee reductions during renewals or when applying for new licenses.

Spotlight on the All-Star Program

Launched in May 2022, the Social Equity All-Star Program rewards businesses championing diversity, fairness, and community involvement. To get recognized:

  • Bronze Level: Share your plans for social equity on the CRA site.

  • Silver Level: Share your plans for social equity and corporate spending on the CRA site.

  • Gold Level: Share your plans for social equity, corporate spending, and community reinvestment on the CRA site.

Having an All-Star status is seen as a mark of a company's commitment to its community. Some local governments even prefer businesses with All-Star badges. Need help crafting or sharing your plans? We're here to guide you and help you benefit from this rewarding program.



Roseville City Council Approves Six Recreational Marijuana Facilities

Published 1 year ago Legislation & Policy Updates
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Following an extensive evaluation period, the Roseville City Council authorized licenses for six recreational marijuana facilities on Tuesday evening. The majority of these establishments are slated for the Groesbeck Highway industrial area.

Out of 47 applications, the selectees emerged after careful review by a five-person committee comprising department chiefs and community influencers. They considered numerous factors, such as site visits, legal feedback, and expert insights.

City Manager Ryan Monroe highlighted the vast volume of details each cannabis company furnished as a primary reason for the extended evaluation. "Some of the submissions were akin to multiple phone books in thickness," Monroe commented.

Recreational cannabis won Michigan voters' approval in 2018. The businesses granted the retail licenses are Blooming Rose, Jars, Canna Square, Vendco, Herbwealth, and FA Ventures. Notably, Canna Square will be located off Groesbeck, opting for Hayes Road near 12 Mile Road.

Initially set to endorse only five licenses, the Council extended this to six upon noticing tied final scores amongst contenders. Additionally, licenses were provided to six entities for cannabis processing and packaging, five for cultivation, and one for micro-business operations catering to smaller marijuana ventures and past caregivers.

Rob Huth, attorney for Jars, endorsed the fairness of Roseville's process and emphasized that licensed companies are bound to honor their commitment to the community. "There's an expectation of community contributions. It's a mutual agreement that benefits both parties, and the courts have supported this reciprocity," stated Huth.

Mayor Robert Taylor, although historically against cannabis legalization, respects the democratic outcome. The city has implemented safety measures, such as maintaining a distance from educational and residential zones. Taylor envisions reviving some of Roseville's neglected structures with the incoming businesses, fostering a "win-win" scenario for the city.

However, with his background in law enforcement, the Mayor does voice concerns over potential burdens on city services and the added issue of driving under the influence. "My apprehensions stem from witnessing the impacts firsthand," Taylor noted, "It's crucial we remain vigilant and ensure the safety of our community."


Sturgis Faces Attempted Break-ins at Cannabis Establishments

Published 1 year ago Legal & Crime
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In Sturgis, Ryan Banaszak, the Director of Public Safety, has reported a series of break-in attempts at licensed marijuana establishments during the early hours of a recent Sunday.

Banaszak confirmed, "There were three establishments targeted, although details remain limited due to the ongoing nature of the investigation."

Within the bounds of Sturgis, eight retail marijuana dispensary licenses have been issued alongside three grow licenses, as per the records of the Cannabis Regulatory Agency. Of the establishments affected by these recent attempts, Banaszak disclosed that they represent a mix of both retail and grow facilities.

Addressing the broader context, the director emphasized, "Such incidents aren't unprecedented in our state. Currently, we're in active collaboration with various law enforcement agencies across Michigan on this matter. Consequently, to ensure the integrity of our investigations, we're maintaining discretion regarding specific details."

Earlier this year, in March, Michigan's Attorney General, Dana Nessel, signed off on 12 warrants in relation to suspects believed to be connected to a spate of 20 break-ins that targeted marijuana dispensaries in May 2022, as conveyed by her office.

A noteworthy incident from Nessel's report mentioned the collaborative effort between her office and the Calhoun County Sheriff's Department. This collaboration successfully led to the identification of involved individuals after one of them was caught in the act of trying to access the contents of a stolen safe — his method being to drop it from a significant height.

Moreover, Michigan State Police have recently sought the public's help to identify and locate two suspects. These individuals are believed to be responsible for a series of break-ins at marijuana dispensaries in Jackson and Calhoun counties, particularly in the wee hours of May 25th.


Understanding Young Adults’ Perceptions of Cannabis Consumption Risks

Published 1 year ago Safety & Education
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As the cannabis industry continues to evolve, particularly in Michigan, understanding public perception, especially among young adults, is crucial for policy development and education. A groundbreaking study from the University of Michigan delves into how young adults view the risks associated with different methods of cannabis consumption.

The Landscape of Cannabis Consumption

The U.S. has witnessed a notable shift in the cannabis market in recent years. The legal availability of cannabis for recreational use has extended to roughly half the states. Along with the growing accessibility, there has also been a proliferation of cannabis products, many of which contain elevated levels of THC compared to the past. This increase in potency carries heightened risks, from developing a cannabis use disorder to experiencing significant consequences in life.

Unpacking the Perceptions

Led by Autumn Rae Florimbio, a T-32 Fellow at the U-M Addiction Center, and her team of researchers, the study explores the perceptions of young adults concerning various cannabis consumption methods, including smoking, vaping, dabbing, and ingestion. Their research also touches upon the patterns of consumption, distinguishing between regular and occasional use.

Drawing from a group of young adults in Flint, the results are enlightening. The majority of non-users perceived regular vaping as the riskiest method. In contrast, those who consumed cannabis either solely by smoking or through multiple methods viewed regular dabbing as presenting the highest risk.

These distinctions in perceptions can serve as invaluable data when forming public health strategies targeting cannabis use among young adults.

Autumn Rae Florimbio, Ph.D., comments on the significance of their findings: "Our results shed light on how young adults perceive cannabis-related risks, emphasizing that perceptions vary based on the method of consumption. These insights pave the way for future research, shaping policies and interventions aimed at minimizing cannabis-related harms."

Support and Appreciation

The research received funding from the National Institute on Drug Abuse [NIDA #045712; PI: Bonar] and support for Dr. Florimbio's contributions came from the National Institute on Alcohol Abuse and Alcoholism [NIAAA #007477; PI: Blow]. The team extends their gratitude to the patients and staff at Hurley Medical Center, whose collaboration was instrumental for this study.

The Takeaway

While cannabis consumption among emerging adults (ages 18-25) continues to rise, and the perception of its risks decreases, the nuances of these perceptions can be the key to effective public health measures. As the cannabis landscape transforms, understanding these perceptions becomes essential for policy-making and public health strategies.


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Penn Township Residents Voice Concerns Over Cannabis Farms

Published 1 year ago Legislation & Policy Updates
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During a Planning Board meeting, concerns of local residents intensified as recreational marijuana growers establish operations in the township.

Residents raised various apprehensions, primarily about the odor, health implications, and potential property value decline due to marijuana cultivation. The Cass County meeting saw escalating tensions since recreational marijuana cultivation was permitted in Penn Township. Many residents have been outspoken about their reservations.

From the onset, the relationship between the growers and the community has been strained. Mike Biesboer of 'Friends of Penn Township' stated, "The overwhelming odor reminiscent of a skunk is the primary concern. It affects health and, recently, concerns about crop dusters have emerged as a safety issue. These are the matters we are anxious about."

In response to the growing concerns, the community initiated the 'Friends of Penn Township' to safeguard the township's quality of life. They have been consistently attending the board meetings for several months, urging the township board to act on their concerns.

Mike Biesboer expressed the community's frustration, saying, "It's been 12 months, and it feels like the board hasn't listened to us. Not once have they voted in favor of the residents on marijuana-related matters."

While the Planning Board aims to pass an amendment on medical marijuana with restrictions similar to recreational policies, 'Friends of Penn Township' does not support it. They conveyed that they feel unheard, leaving them with a single course of action. Biesboer emphasizes, "We'll continue to attend meetings, urge residents to participate, and persistently request change."

The subsequent Penn Township board meeting is scheduled for October 9th.