Greenville Moves Toward Legalizing Recreational Cannabis Sales

Published 2 months ago Legislation & Policy Updates
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The Greenville City Council is poised to make a significant decision regarding the retail sale of recreational cannabis. Following a unanimous vote by the Greenville Planning Commission on June 27th, the Council will consider adopting an ordinance that would legalize and regulate cannabis retail establishments within the city.

The proposed ordinance aims to amend Sections 46-1 and 46-167 of Chapter 46 in the Greenville Code of Ordinances. These changes are designed to set clear guidelines for the operation of recreational cannabis retailers, ensuring that these businesses comply with local zoning regulations.

Should the ordinance receive approval during the City Council meeting on July 13th, recreational cannabis sales could commence as early as August. This move would position Greenville to join a growing number of municipalities across the state that have embraced the regulated sale of cannabis, reflecting shifting public attitudes and the potential economic benefits of this emerging market.

The planning commission's decision to recommend the ordinance highlights the city's proactive approach to integrating cannabis businesses into the local economy, while also addressing community standards and regulatory needs.

Residents and stakeholders are encouraged to participate in the upcoming public hearings, where they will have the opportunity to express their views on the proposed ordinance before the council reaches a final decision.


Federal Lawsuit Filed Against 305 Farms for Unpaid Employee Wages

Published 2 months ago Legal & Crime
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Fourteen former employees of 305 Farms have initiated a federal lawsuit against the West Michigan cannabis company, alleging that they were not paid thousands of dollars in wages and that deductions for benefits were taken without being provided.

Robert Lusk, the attorney representing the former employees, filed the lawsuit on Tuesday in the U.S. District Court for the Western District of Michigan. He stated, "Apparently, they ran out of money and thought it was appropriate to withhold wages until they got themselves reorganized."

Jan Verleur, a partner in The Verleur Group, a Miami-based venture capital firm controlling 305 Brands, acknowledged that the company fell behind on employee payments following a "catastrophic harvest failure." This failure was reportedly due to a defective HVAC system at their cultivation facility in Lawrence, located about 30 miles west of Kalamazoo. Verleur emphasized that the company is collaborating with the Michigan Department of Labor and Economic Growth to resolve the unpaid wages issue and anticipates making the final $35,000 in payments later this month.

"Our intention is to ensure that anyone who was employed with us is compensated," Verleur stated.

The state Department of Labor and Economic Growth did not respond to requests for information regarding the case.

Lusk noted that the deadline for his clients to receive their wages had already passed.

305 Farms began operations in March 2022, with plans to become Michigan's largest single-site indoor cannabis cultivation campus, licensed to grow up to 80,000 plants. However, General Manager D.J. Howley explained that the company was misled about the HVAC system specifications, leading to significant operational issues.

According to Howley, the company spent much of the past year diagnosing and attempting to rectify the HVAC problems. Verleur reported a loss of $1.7 million in potential revenue between November and February, contributing to a significant staff reduction.

In February, the company held several meetings to inform employees about the financial difficulties. Jacqueline Morgan, a security guard, chose to stay despite the delayed payments because she believed in the company's future. "We were all given the opportunity to seek other employment or take a leave of absence. Once everything was resolved, we could return without any issues, at the same pay and benefits," Morgan said.

Verleur noted that the company's financial situation has improved in recent months. "We've been paying down debts and making corrections. We are also in the process of recapitalizing, both through equity and exploring mortgage options on the farm to support our growth trajectory," he said, highlighting the $45 million invested by shareholders. "We are here to stay."

However, Lusk criticized the company's handling of the situation. "Their approach seems to assume that one of their choices is to do something illegal, which is not paying people for the work they do. It's just not an option," Lusk asserted.



Michigan Proposes Unified Cannabis Licensing System, Merging Recreational and Medical

Published 2 months ago Legislation & Policy Updates
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Bi-partisan legislation introduced in Michigan seeks to streamline the state's cannabis laws by merging regulations for the adult-use and medical cannabis industries. This reform initiative aims to address the complications and burdens posed by the current dual regulatory system, which has been described as cumbersome for both businesses and the state's Cannabis Regulatory Agency (CRA).

The proposed legislation would repeal the state's 2016 Medical Marihuana Facilities Licensing Act, simplifying the regulatory framework for cannabis operations. Currently, cannabis businesses must renew both a medical and a recreational license annually to grow, process, transport, or sell cannabis products. The new legislation proposes a unified licensing system, which would require only one license per activity under the state's cannabis legalization law. Importantly, the proposed changes will not affect the existing system for medical cannabis patients and caregivers established under the state's 2008 medical cannabis law.

State Representative Graham Filler (R-St. Johns), a co-sponsor of the bill, emphasized the benefits of this streamlined approach. "Streamlining and simplifying these laws is a win for everyone involved – from businesses to patients to regulators," Filler stated. He highlighted the obsolescence of the dual licensing system, noting that recreational use now dominates the market, accounting for approximately 99% of cannabis sales in the state.

Representative Jimmie Wilson, Jr. (D), another co-sponsor, expressed optimism about the proposal's potential to enhance Michigan's appeal to cannabis businesses. "This is about making Michigan an attractive and stable place for marijuana businesses to thrive," Wilson said. "A single, cohesive regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for medical marijuana patients. This is a forward-thinking approach that positions Michigan as a leader in the industry."

Under the new system, the changes would take effect in March 2026. Existing medical licenses that have not expired by this date will be converted to a new, generic title; for example, provisioning centers would be reclassified as "marihuana retailers." The legislation also allows local governments the opportunity to block medical marijuana dispensaries from expanding their operations if they act before the March 2026 deadline.

This legislative effort follows a previous attempt in 2021 to reform Michigan's cannabis regulations, which faced significant opposition from home caregivers. Learning from past challenges, Filler noted that the current proposal is more focused and has been developed in consultation with industry stakeholders. "In this one, the industry's actually going to benefit. It's going to be streamlined. So why would they push back on something that's kind of a down-the-middle bipartisan push?" he said.

However, the legislation could encounter two major hurdles: the legislative calendar and the requirement for a supermajority vote. With lawmakers on their summer break and the November general election approaching, there is limited time to address substantial legislative changes. Additionally, because the legislation seeks to amend laws enacted through voter initiatives, it requires a three-fourths supermajority vote to pass both chambers of the Legislature.

Despite these challenges, Filler remains confident. "I think I'll be okay in the Republican caucus because I think words like modernization and efficiency, and cutting the red tape, streamlining the process … that's how we speak, that's what we think about," he said.

The bills were referred to the House Regulatory Reform Committee on June 27th.


Saginaw Man Briefly Dies After Shooting at Unauthorized Cannabis Grow Site

Published 2 months ago Legal & Crime
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A Saginaw man, Jerry Bryant, survived a gunshot wound to the chest at an unauthorized cannabis cultivation site but was left with a severed spinal cord. The alleged shooter, Owen M. Pipkins, his roommate and coworker, is now facing charges of attempted murder.

The preliminary hearing for 51-year-old Pipkins took place on Monday, July 1st, before Saginaw County District Judge David D. Hoffman. Saginaw County Assistant Prosecutor Melissa J. Hoover presented the case, with Hampton Township Public Safety Department Officer David Wheaton as the primary witness.

Wheaton, formerly a Saginaw Police detective, testified about responding to the incident at a commercial building at 2006 S. Niagara St. on June 10th. Pipkins had called 911, reporting that he had shot Bryant, 42.

The site housed a cannabis growing operation owned by multiple partners. Pipkins and Bryant also resided there, sleeping in two beds located on the premises.

When police arrived, they found Pipkins outside, and Bryant was transported to a local hospital. Pipkins was taken into custody and later interviewed by Wheaton at police headquarters, where he waived his Miranda rights.

According to Wheaton, Pipkins recounted that he and Bryant had prior altercations, including instances where Bryant allegedly used racial slurs and threatened him with a shovel. On the morning of June 10, Pipkins was asleep in a boat when Bryant entered, shouting and using a racial slur. Pipkins, who is Black, said Bryant, who is white, called him lazy.

In response, Pipkins fired a single shot from a handgun without seeing Bryant clearly, hitting him in the chest. Pipkins then contacted one of the owners of the cannabis operation before calling 911. While awaiting the police, Bryant told Pipkins he could not feel his legs.

Bryant had to be resuscitated at the hospital and remains bedridden, unable to move, Wheaton testified. No further witnesses were called by the prosecution.

Defense attorney Matthew M. Evans argued that there was no evidence of intent to kill. However, Judge Hoffman ruled in favor of the prosecution and moved the case to Circuit Court on charges of assault with intent to murder and felony firearm.

Pipkins has a criminal history, with four convictions in Sacramento, California. These include three from 1991 and a 2015 conviction for carrying a loaded firearm in public, for which he served 120 days in jail and three years' probation.


Lapeer Extends Moratorium on New Cannabis Businesses for Six Months

Published 2 months ago Legislation & Policy Updates
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The Lapeer City Commission has unanimously voted to extend the current moratorium on new cannabis business applications for an additional six months. This decision, made on Monday, follows a similar six-month moratorium approved in January at the behest of City Manager Mike Womack, who sought time to collaborate with staff on amending ordinances and policies related to cannabis businesses.

City staff have identified several issues with the existing cannabis ordinances. Womack, in a memo to the City Commission, emphasized the need for the moratorium to allow staff to focus on studying and proposing necessary changes. "By imposing a moratorium, the City's staff can redirect the time normally required for their current cannabis-related work towards studying and proposing possible changes and solutions," Womack noted. "Also, by imposing a moratorium, we avoid a situation where a cannabis business attempts to obtain licensure or zoning approval during a time of changing rules and requirements."

Currently, Lapeer has licensed seven cannabis dispensaries, but there is no limit on the number of cannabis grow and processing facilities. The odor from these grow facilities has become a significant concern for residents and passersby, particularly along Saginaw and Court streets.

Additionally, the location of dispensaries and grow facilities has raised concerns among the public and some city officials. Issues have been noted regarding the impact of cannabis business operations on major roadways adjacent to other retail and commercial businesses, as well as their proximity to residential areas.

Lapeer's journey with cannabis laws began in April 2018 with the approval of medical marijuana, followed by the approval of recreational marijuana in 2020. In November 2021, city voters decisively rejected a ballot proposal to prohibit cannabis businesses by a 2-1 margin, with 1,137 votes against and 405 in favor.

"I had hoped to have the draft completed in six months, but life happened and I wasn't able to," Womack said. "I think three to four months is likely to get it done, and we will cancel the moratorium when a new ordinance is adopted."

The moratorium applies only to new cannabis licensure or zoning approval requests and does not affect existing approved requests. Renewals of current licenses are being processed through the City's regular procedures.

In related developments, Womack and city staff are negotiating with a Livonia company regarding a potential land swap. This would relocate a proposed cannabis grow facility from a vacant lot on Genesee Street, between Arnold's Car Wash and Krave restaurant, to a city-owned parcel in the industrial park on John Conley Drive.


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CRA Calls for Public Help to Combat Illegal Cannabis Transport

Published 2 months ago Legal & Crime
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The Cannabis Regulatory Agency (CRA) is amplifying its efforts to maintain the integrity of Michigan's regulated cannabis market through both proactive enforcement and community engagement. Recognizing the vital role that public tips play in uncovering illegal activities, the CRA is calling on citizens to report any knowledge of "brokers" transporting cannabis with a THC percentage greater than 0.3% across or through state lines into Michigan's regulated market.

Public involvement can significantly impact the success of enforcement investigations. Even minor observations or details can provide the crucial information needed to expose unlawful activities and maintain the safety and accountability of the cannabis community. The CRA emphasizes that those who comply with the state's cannabis laws should have the opportunity to thrive without the threat of illegal competition.

The CRA invites individuals to submit tips via email to [email protected], including relevant names, phone numbers, and email addresses. Each report will be thoroughly evaluated, and the CRA may collaborate with federal and state law enforcement agencies to address the reported activities.

By working together, Michigan can ensure a fair and law-abiding cannabis industry where legitimate businesses can flourish.