The cannabis industry is expanding in Charlotte, Michigan, as Hollywood Jacks prepares to become the second dispensary to open in Eaton County. This marks a significant development for a community that has long resisted the establishment of cannabis facilities.
Brian Miller, the owner of Hollywood Jacks, is eager to welcome customers to his new dispensary.
"It's absolutely a dream come true," Miller expressed, highlighting his enthusiasm for the business venture.
As Hollywood Jacks gets ready to open, local business owners and residents are sharing their perspectives on this new addition to the community. Isaac Howard, the manager of Domino's, noted an uptick in activity in recent weeks.
"It's been kind of busy lately, it's increased over the past couple weeks," Howard said. "It will probably help the rest of the town get more traffic going."
Eaton County has historically been cautious about allowing recreational cannabis stores, even as such establishments became more common in surrounding areas. City council members have conducted extensive research into the potential impact of these stores on public safety and community welfare.
Mitch Maltz, the store manager at Harbor Farmz, the first cannabis shop to open in Charlotte, shared his positive experience.
"Business has been really good, love the fact we have our own products here," Maltz said.
The arrival of both Harbor Farmz and Hollywood Jacks is expected to bring substantial economic benefits to Charlotte. In Michigan's 2023 fiscal year, each licensed retail store and microbusiness generated over $59,000 for their respective municipalities and counties. Eaton County, which did not receive any of this revenue in the past, is now poised to benefit from this additional income.
Brian Miller extended his gratitude to the community, expressing appreciation for the support he has received.
"I just would like to thank all the community," Miller said.
The Berrien County Health Department has launched a new campaign aimed at curbing the rising trend of underage cannabis use in the area. With targeted ads planned for multiple social media platforms, the department is reinforcing the message that cannabis use is illegal for individuals under the age of 21. The campaign highlights the risks associated with early cannabis use, including the potential for addiction and exacerbation of mental health issues.
Recent data from the 2021-2022 school year reveals that 28% of high school students in Berrien County have experimented with cannabis. Officials believe these numbers have likely increased in subsequent years. Lisa Peeples-Hurst, the Public Health Promotion and Prevention Supervisor at the Berrien County Health Department, emphasized the importance of addressing underlying issues rather than using substances as a coping mechanism. "The real issues that may be occurring still need to be tackled once the high wears off," Peeples-Hurst said. "It's crucial to educate students and parents about the heightened mental health component."
A significant concern is the source of cannabis for these minors. The health department suspects that while legalization has increased access, most underage users do not obtain cannabis directly from licensed dispensaries. Instead, they acquire it through other means. Peeples-Hurst mentioned that youth referred to the department through the juvenile court or pre-arrest diversion programs often obtain cannabis from non-commercial sources. "The good thing is we don't hear a lot about kids buying vapes," she noted.
Jorden Peterson, Floor Manager at the ReLeaf Center in Niles, confirmed that stringent checks are in place to prevent underage customers from entering their store. He acknowledged the possibility of adults purchasing cannabis for minors and emphasized the importance of ensuring that cannabis remains with the purchaser. "We are working hard to make sure this stuff stays with the person who buys it and leaves here properly," Peterson said.
Health professionals urge parents to discuss the risks of cannabis use with their children at an early age. According to Peeples-Hurst, the age of first substance use in Berrien County is alarmingly low, starting at just 11 years old. "We cannot wait until high school to get these messages out; we have to start sooner. We are currently reaching out to fifth graders in Berrien County classrooms," she stated.
Rainbow Realty Group IV, LLC, in collaboration with Rainbow Realty Group II, LLC, and MJ Real Estate Investment Trust, has finalized a senior mortgage secured by a newly constructed industrial building in Detroit, Michigan.
The 110,670-square-foot building, situated on 5.49 acres, is operating as a licensed cannabis cultivation facility serving both the recreational and medical markets in Michigan. The borrower acquired the land in 2018, obtained its cannabis license in 2022, and subsequently developed a state-of-the-art facility. Additionally, the borrower holds several retail dispensary licenses throughout Michigan, where its products are expected to be sold.
Ben Bolanos, Rainbow's Chief Operating Officer, expressed enthusiasm about the transaction, stating, "We are thrilled to finalize this mortgage transaction secured by a cutting-edge industrial facility. Equipped with advanced growing technology and equipment, the property positions the borrower to deliver high-quality cannabis products at competitive costs."
This announcement follows the recent news that Michigan's cannabis market has surpassed California's to become the largest in the United States by sales volume as of June 2024. This transaction marks Rainbow's third investment in Michigan, underscoring the firm's strong confidence in the state's robust cannabis market.
Michigan's Cannabis Regulatory Agency (CRA) is aware of the presence of potentially harmful medium-chain triglyceride (MCT) oil in some cannabis vaping products but does not plan to test for it until October. This delay comes despite evidence that inhaling MCT oil, derived from coconut or palm oil, can cause respiratory issues such as shortness of breath and lung inflammation.
The new testing requirements set to begin in October aim to detect and eliminate MCT oil from vaping products. MCT oil is often used to dilute THC distillate oil because it makes the oil easier for vaping devices to heat and convert into an inhalable aerosol. It is also a cheaper alternative to THC oil, increasing profits for producers. However, its use is currently prohibited in Michigan vaping products, though it is not yet tested for.
Cassie Coleman, chair of the National Cannabis Industry Association's scientific advisory committee, noted, "Unscrupulous producers might be adding MCT oil knowingly, while others might be doing so unintentionally through terpenes, which are permitted additives that enhance flavor and aroma."
David Egerton, Manager at Jackson-based Infinite Chemical Analysis Lab, highlighted that a sample test of various retail products earlier this year revealed nearly 10% contained MCT oil, with concentrations ranging from less than 1% to 20%. The CRA has not quantified the extent of the issue but believes that market self-regulation will phase out the use of MCT oil.
CRA spokesperson David Harns stated, "We've seen marijuana retailers voluntarily removing products with MCT oil from their shelves already, and we fully expect that this action will result in the rest of the industry doing the same prior to the October 1st deadline."
However, this approach has faced criticism. Coleman, who stopped consuming marijuana vaping products due to concerns over additives, questioned why the CRA's actions will take until October and why the issue hasn't been more widely communicated. "I'm glad they're doing something, but I'm a little confused why it's going to take until October and why it's being presented to industry insiders rather than the public."
Comparisons have been made to the past use of vitamin E acetate in nicotine and cannabis vaping products, which was banned after causing nearly 2,800 hospitalizations and 68 deaths in the U.S., including three in Michigan. Egerton noted that while the acute harm potential of MCT oil is not at the same level, there are still concerns.
When the vitamin E acetate crisis emerged, the CRA halted all sales of vaping products until they were retested. This has not happened with MCT oil, leading Coleman to call for immediate action. "If we have evidence that these products are contaminated, we should be able to stop it," she said. "We should be able to stop today products from being made and marketed to consumers."
Vaping cartridges accounted for about 20% of Michigan's marijuana sales last year, totaling nearly $585 million in revenue, with over $52 million in sales in May alone. While some industry insiders argue that immediate testing of all vaping products is infeasible, others stress the need for swift action.
Egerton called it an "impossible task" to require immediate testing but expressed hope that most processors would eliminate MCT oil in light of the new requirements. Robin Schneider, Executive Director of the Michigan Cannabis Industry Association, noted that several retailers are already proactively testing their inventory.
Producers are required to submit their product formulations to the CRA, including only FDA-approved inhalation additives or cannabis-derived ingredients. However, until October, consumers have no foolproof way to verify that their vaping products are free from MCT oil. Lower THC concentrations can be an indicator, but Egerton pointed out that MCT oil is often used in such small amounts that it is indistinguishable from other products.
The CRA aims to have a new state-run lab operational by the end of the year, which will enhance accountability and public protection. CRA Executive Director Brian Hanna emphasized, "From a public health and safety standpoint, the potential for adverse effects with MCT oil underscores the importance of safety guidelines for product development. Michigan's licensed marijuana businesses must prioritize respiratory safety when formulating or using inhalable products, opting for ingredients thoroughly evaluated for their compatibility with lung health."
The ongoing issues with harmful additives in cannabis vaping products highlight the need for more stringent regulatory measures. Instead of merely testing for specific banned substances like MCT oil or waiting for harmful effects to emerge, regulators should implement a proactive approach by establishing a comprehensive list of approved additives. Only ingredients on this list, verified for safety through rigorous testing, should be permitted for use in vaping products.
The transition from vitamin E acetate to MCT oil illustrates a troubling pattern. As one harmful substance is identified and banned, businesses may simply switch to another, potentially equally dangerous, additive to cut costs or enhance product performance. This reactive regulatory stance leaves consumers vulnerable to unforeseen health risks.
Regulators should prioritize consumer safety by banning the use of any additives in cannabis vaping products until they have been thoroughly tested and confirmed safe for inhalation. This preventative measure would not only protect public health but also ensure that producers adhere to higher safety standards.
Implementing a system where only pre-approved, safe additives are allowed would eliminate the loopholes that currently enable the use of potentially harmful substances. It would also shift the focus from chasing after the next dangerous additive to fostering a market that prioritizes consumer well-being. By taking these steps, regulators can prevent future health crises and maintain the integrity of Michigan's cannabis industry.
The Bad Axe City Council rejected a proposed cannabis ordinance with a 5-2 vote during their July 1st meeting, which drew a significant public turnout.
The decision followed a lively public comment session where both supporters and opponents of the ordinance voiced their opinions. Prior to the vote, the council rescinded a previous decision to put the ordinance on the ballot for voters to decide.
Jo Wolschlager, a property owner in Bad Axe but not a resident, spoke in favor of the ordinance. Wolschlager highlighted the medical benefits of cannabis and the potential economic advantages for the city. She emphasized that the revenue generated could benefit the local community rather than being spent elsewhere.
"My biggest reason for approval is because of unintended consequences," Wolschlager stated. "We may not all agree with recreational use of cannabis, but it also has a lot of medical uses. If an individual does not agree with recreational use, then simply don't go there."
Despite her arguments, Wolschlager was the only person to speak in favor of the ordinance. Kevin Richardson, representing the opposition, cautioned the council against prioritizing tax revenue over community values.
"I just don't want the council to think that, 'We're going to get a lot of tax revenue from this,'" Richardson said. "We do have to draw lines. Just because you get tax money from it, doesn't mean it's right."
The ordinance ultimately failed with council members Clark McKimmy, Dan Rapson, Joel Harrison, Nicholas Rochefort, and Mayor Kathleen Particka voting against it. Council members Steve Perez and Dan Glaza were the only supporters of the ordinance.
For those seeking expert legal assistance in the cannabis industry, Michigan Lawyers Weekly has announced its inaugural list of "Go To Lawyers" specializing in cannabis law. This recognition highlights top attorneys who have demonstrated exceptional knowledge and success in the complex and evolving field of cannabis legislation and regulation.
Navigating the legal landscape of the cannabis industry in Michigan requires specialized knowledge. From understanding state-specific regulations to handling compliance issues and representing clients in court, a skilled cannabis lawyer is essential. Here's what makes a cannabis lawyer indispensable:
Michigan Lawyers Weekly's list of "Go To Lawyers" for cannabis law features the state's top legal experts. These attorneys have made significant contributions to the field and are recognized for their outstanding work:
These attorneys have been recognized for their deep understanding of Michigan's cannabis laws and their ability to navigate the intricacies of the legal system. Their profiles, to be published in the July 29th editions of Michigan Lawyers Weekly, will provide detailed insights into their careers and achievements.
When selecting a cannabis lawyer, consider the following:
For anyone involved in Michigan's cannabis industry, having a knowledgeable and experienced cannabis lawyer is crucial. The "Go To Lawyers" recognized by Michigan Lawyers Weekly represent the best in the field, offering invaluable expertise and support to navigate the complexities of cannabis law.
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