The escalating demand for high-THC cannabis products in Michigan is driving significant changes in the market. As consumer preferences shift towards more potent options, manufacturers are phasing out plants with THC levels below 20%, focusing primarily on high-THC strains. This trend is particularly evident in the pre-roll sector, where the competition for potency has led to an increase in the use of cannabis concentrates.
Producers are now infusing pre-rolls with live resin, live rosin, kief, and various other concentrates to boost THC content. Premium products from brands like Element and Ice Kream Hash Co. highlight the potential for high-quality, infused pre-rolls. However, the majority of infused pre-rolls are made using lower-quality flower combined with cheap distillates and non-naturally occurring terpenes and flavorings.
The widespread use of these additives raises several concerns. To counteract the harshness of low-quality flower and concentrates, manufacturers frequently add terpenes, which are compounds responsible for the distinct aroma and flavor of cannabis. Advances in technology have made it possible to isolate these terpenes from cannabis and other plants, but the addition of high concentrations of terpenes and flavorings, especially when combusted, poses potential health risks.
Jason Allen, co-founder of Lapeer-based Old School Organics, underscores the uncertainty surrounding the long-term effects of inhaling combusted terpenes. "No one knows enough about the long-term effects of combusting these types of terpenes and flavorings," Allen notes. Old School Organics adheres to more traditional practices, offering 100% flower pre-rolls made from strains selected for their natural terpene profiles.
Despite the potential risks, the industry has largely embraced this trend. Infused pre-rolls offer a way for producers to utilize lower-tier buds by enhancing them with distillates and terpenes, thereby producing high-THC pre-rolls at a low cost. This caters to the prevalent consumer demand for affordable products with maximum THC content.
The focus on THC potency and low cost reflects a broader issue within the cannabis industry. Many consumers equate high THC levels with quality, often overlooking other important factors such as the overall quality of the flower and the presence of potentially harmful additives. Consumer education and awareness are crucial in addressing these issues. Knowing the composition of cannabis products and consulting knowledgeable budtenders can help consumers make safer choices.
In summary, while the trend of infused pre-rolls meets current market demands, it is essential for consumers to remain informed and cautious. Cannabis, while generally safe, should be consumed responsibly. Awareness and accountability from both producers and consumers are key to ensuring the safe and enjoyable use of cannabis products.
During a Dickinson County Board meeting on Monday, a mental health professional addressed potential negative effects associated with cannabis use. The intention was not to challenge Michigan's legalization of cannabis, but to shed light on associated risks.
Diedra Hinds-Springstroh, a nurse practitioner offering telehealth services for Northpointe Behavioral Healthcare System, emphasized the lack of medications available to treat cannabis addiction. Citing data from the Hazelden Betty Ford Foundation, Hinds-Springstroh noted that research suggests approximately 9% of cannabis users develop an addiction. This rate increases for individuals who begin using at a young age or consume cannabis daily.
Hinds-Springstroh referenced studies that link chronic cannabis use to mental health issues, including potential connections to psychosis. "It's something to put out there," she said, expressing concerns that the use of other substances could amplify these risks. She highlighted the surge in emergency room visits among youth due to overdoses from cannabis-infused edibles, such as gummies.
While acknowledging the medical benefits of cannabis, Hinds-Springstroh stressed the importance of recognizing the risks associated with recreational use. Commissioner Ann Martin, a member of the Northpointe Board who invited Hinds-Springstroh to present her concerns, pointed out that only a small portion of marijuana tax revenues is allocated to substance abuse prevention and treatment.
Six years after Michigan legalized recreational cannabis, the state's dispensary landscape is undergoing significant changes, with numerous stores closing due to market adjustments. Experts attribute this to the natural evolution and maturation of the industry.
In Lowell, one of the pioneering cities for cannabis dispensaries in Michigan, the initial boom is now witnessing a contraction. City Manager Mike Burns noted that Lowell once boasted nine recreational cannabis dispensaries and three cultivation centers at its peak in 2022. However, the city currently has only five operational dispensaries.
"We anticipated a market correction," Burns said. "We never expected all nine facilities to remain open indefinitely."
Josh Covert, CEO of Meds Cafe—the first cannabis shop in Lowell—highlighted several factors contributing to the city's initial high number of dispensaries. "When Lowell allowed dispensary licenses, there weren't many other cities doing the same. This scarcity drove interest from investors nationwide," Covert explained.
Covert, who also founded Michigan Cannabis Lawyers and served on the board of MI Legalize, emphasized Lowell's early recognition of dispensaries' economic benefits. "Dispensaries created jobs and generated significant tax revenue for the city, varying from $50,000 to $60,000 per establishment annually," he said.
Lowell benefits from a 10% excise tax on cannabis sales, plus an additional 6% adult use sales tax. This revenue has been instrumental in funding infrastructure projects. "We've paved numerous streets in the past four years thanks to cannabis tax revenue," Burns noted.
The decline in dispensaries is partly due to nearby towns adopting cannabis licensing, which reduces Lowell's customer base. Despite this, Burns remains optimistic. "Statewide cannabis sales continue to rise, so our revenue should remain stable even with fewer dispensaries," he said.
Covert pointed out the complexities of operating in the cannabis industry, which include stringent state regulations, unique IRS taxation, and the inherent unpredictability of agricultural production. "A bad harvest can disrupt the supply chain significantly," he said.
Despite these challenges, Covert believes the market will eventually stabilize, with experienced operators prevailing. "The industry is still volatile, but we'll see a balance as more municipalities opt in and less sustainable businesses close," he predicted.
Looking ahead, Covert sees continued growth potential in Michigan's cannabis sector. "We haven't reached peak cannabis sales yet, mainly because large parts of the state still lack access to cannabis products," he stated. "As access expands, we expect the market to plateau at a sustainable level over the next few years."
Cheech and Chong's Cannabis Company, in collaboration with Distro 10, Inc., is introducing a new dimension of cannabis experience in Michigan. This partnership heralds the launch of Cheech & Chong's Cannabis' Botanical line, featuring the innovative cryo-infused cannabis pre-rolls. These pre-rolls combine premium botanically derived terpenes with top-tier cannabis to provide an exceptional experience.
This venture by the iconic duo into Michigan is more than a product release; it represents a significant leap in cannabis innovation and quality. "We've always been about pushing boundaries and delivering something unique to our fans," says Cheech Marin, Founder of Cheech & Chong's Cannabis Co. "Our cryo-infused pre-rolls and Botanical line offer an unparalleled experience."
The Botanical line is distinctive for its ability to create specific experiences through botanically derived terpene profiles. The cryo-infusion process, a key feature of this line, uses high potency oil that is crystallized, resulting in a smoother smoke compared to traditional oil infusions. This technique not only enhances the smoking experience but also introduces a new method of cannabis enjoyment.
Joey Marin, Chief Product Officer at Cheech & Chong's Cannabis Co., highlights the precision and expertise involved in selecting the profiles for the Botanical line. "Each profile is handpicked and thoroughly tested for optimal enjoyment. We are dedicated to the highest quality, ensuring every product in the Botanical line delivers a superior experience," he explains.
Tommy Chong, Founder of Cheech & Chong's Cannabis Co., added with a smile, "We knew Michigan was the perfect place to launch our Botanical line. Michiganders appreciate good cannabis, and we wanted to offer them something truly special and unique."
Celia Nasser, Facility Manager at Distro 10, expressed pride in the partnership with Cheech & Chong, icons who have greatly influenced cannabis culture. "This collaboration aligns with our commitment to providing unparalleled quality and innovation at competitive prices. We believe Michigan consumers deserve the best, and that's our goal."
As the cannabis market continues to grow, collaborations like that of Cheech & Chong's Cannabis Co. and Distro 10 are at the forefront, ensuring that cannabis consumers have access to groundbreaking products that offer more than just a high—they offer a unique experience.
In a recent case that underscores the legal challenges of navigating differing state laws, two South Bend residents, a father and son, were sentenced in Berrien County Trial Court for attempting to carry concealed firearms without proper licensing while in Michigan to purchase cannabis.
The case stems from an incident on January 5th in Bertrand Township, Michigan, when a vehicle carrying Jason Robert Miltroka, 47, and his son Gino Anthony Miltroka, 20, was stopped by police. Both men had traveled from Indiana to Michigan with the intention of purchasing cannabis, a substance that remains illegal in their home state.
Michigan, which legalized recreational cannabis in 2018, attracts many out-of-state visitors who come to legally purchase cannabis products. Jason and Gino Miltroka were among those visitors, seeking to take advantage of Michigan's more permissive cannabis laws. However, their plan was complicated by their failure to understand Michigan's strict regulations on carrying concealed firearms.
Jason Miltroka was sentenced to 10 days in jail, credited for two days already served, and ordered to pay $258 in fines and costs. His firearm was also forfeited. This marks his first felony conviction, although he has prior convictions related to drinking and driving. Defense attorney Scott Graham highlighted Miltroka's stable residence and employment, which he hopes to maintain despite his conviction.
During court proceedings, Miltroka admitted that he did not realize the differences in firearm laws between Indiana and Michigan, though he was aware of the disparity in cannabis laws. Judge Jennifer Smith acknowledged his desire to keep his job but stressed the importance of understanding the responsibilities associated with carrying a weapon. She noted that Miltroka knowingly crossed state lines to purchase cannabis, consumed alcohol in the vehicle, and used both alcohol and cannabis while on bond, pointing to a pattern of poor decision-making.
Gino Miltroka received a similar sentence a week after his father: 10 days in jail with two days credited, $258 in fines and costs, and the forfeiture of his firearm. His defense attorney, Daniel French, described the incident as a series of bad choices stemming from a lack of understanding of state laws. Gino Miltroka admitted his failure to research the legal requirements for carrying a firearm in Michigan.
Judge Smith reiterated the points made during Jason Miltroka's sentencing, emphasizing the responsibility to understand and comply with state laws when carrying a firearm. She pointed out that Gino was driving with a suspended license, was not fully truthful with officers, and violated bond conditions by using cannabis.
This case highlights the complexities and potential pitfalls of differing state laws regarding firearms and cannabis. Indiana's strict cannabis prohibition contrasts sharply with Michigan's legalized market, leading to legal complications for residents crossing state lines. The convictions of Jason and Gino Miltroka underscore the importance of understanding and adhering to the legal requirements of any state one enters, particularly regarding firearms and controlled substances.
As more states move towards legalizing cannabis, the need for clear communication and education about the accompanying legal responsibilities becomes increasingly crucial. Visitors to states with legal cannabis must be aware of and comply with all state laws to avoid similar legal issues.
The Michigan Cannabis Regulatory Agency (CRA) has submitted an extensive comment on the proposed federal rule for rescheduling cannabis. This comment, available in full on the CRA website, addresses key issues related to the proposed rescheduling from Schedule I to Schedule III. The CRA's submission aims to inform the Drug Enforcement Administration (DEA) and other federal agencies about Michigan's Medical Marijuana Program and provide critical considerations for rescheduling cannabis.
The CRA's comment is twofold: it provides detailed information and statistics about Michigan's Medical Marijuana Program, and it outlines a comprehensive list of considerations for federal agencies when determining whether and how to reschedule cannabis.
Michigan's program began in 2008 following a voter-approved initiative. The program has grown significantly, peaking in 2018 with nearly 300,000 registered patients and over 40,000 caregivers. Despite the legalization of adult-use cannabis in 2018, many patients continue to value the medical marijuana registry. As of the end of Fiscal Year 2023, there were 129,099 qualifying patients and 11,554 primary caregivers.
The CRA highlights several areas that require clear guidance and robust coordination from federal agencies to ensure a smooth transition if cannabis is rescheduled to Schedule III. These areas include:
Requirements Applicable to Schedule III Drugs: Federal guidelines must clarify how existing Schedule III requirements will apply to cannabis, considering that over 35 states have established medical marijuana programs and 24 states have adult-use programs.
Banking and Taxation: Rescheduling cannabis could enable businesses to access banking services and benefit from standard tax deductions and exemptions. Clear federal guidance is essential to address these changes.
Bankruptcy Protection: Allowing cannabis businesses to seek bankruptcy protection could provide crucial financial relief and restructuring opportunities. Guidance from the U.S. Trustee Program is necessary.
Packaging, Labeling, and Advertising: Standardized federal guidelines could streamline compliance and enhance consumer safety. Agencies like the FDA should issue clear directives.
Product Safety Standards: Uniform safety standards would ensure consistent quality across states, protecting consumers. The FDA should oversee these regulations.
Transportation and Interstate Commerce: Legal interstate commerce of cannabis products would require detailed federal guidelines, considering the diverse state regulations currently in place.
Research: Rescheduling could expand research opportunities using state-regulated products, necessitating clear federal research protocols.
Federal Enforcement: Rescheduling should prompt new enforcement priorities, potentially modeled after the Cole Memo, to ensure stability for state-regulated markets.
Federal Regulatory Agencies: Agencies such as the DEA and FDA should have defined roles in regulating cannabis post-rescheduling, with states retaining authority over specific aspects like licensing and distribution.
Brian Hanna, the Executive Director of the CRA, emphasized the significant investment and effort by Michigan's licensees, caregivers, patients, and advocates in developing a leading cannabis industry. He stressed that rescheduling must be accompanied by comprehensive federal guidance to be effective. Hanna also expressed the CRA's readiness to testify at the federal level to share Michigan's progress in creating a robust regulatory framework.
The CRA's submission underscores the importance of a coordinated, whole-of-government approach to rescheduling cannabis. Without clear and comprehensive federal guidance, the rescheduling could potentially disrupt existing state programs. The CRA urges the DEA and other federal agencies to act responsibly and seize this historic opportunity to reshape cannabis regulation in the United States.
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