John Dalaly, an Oakland County businessman who pleaded guilty to bribing the chairman of Michigan's medical marijuana licensing board, has written a book titled "The Dalaly Way: Conquering Crisis" while serving his prison sentence.
The 194-page book, available on Amazon, aims to share Dalaly's "strategy of self-directed learning with others." It includes photos of Dalaly with current Michigan Gov. Gretchen Whitmer and former Gov. Rick Snyder, and primarily offers life advice and guidance on handling a prison term.
Dalaly briefly addresses the crime that led to his incarceration. He describes himself as an "industrialist" who entered the cannabis industry to "improve the lives of patients while creating jobs and supporting my family." He found obtaining a marijuana license to be difficult, leading him to seek assistance.
"I reached out to people I knew in the state to explore strategies for working with the licensing board," Dalaly wrote. "I thought I found my edge in a consultant connected to the government and leaped at the chance. In providing them compensation without doing my due diligence, my eagerness overcame my good sense. To my eternal shame, the compensation I provided this consultant was against the law."
Dalaly admitted to giving at least $68,200 in cash payments and other benefits to Rick Johnson, a former lobbyist and then-chairman of the licensing board, believing these expenditures would influence or reward Johnson, according to his plea agreement.
In September, a Michigan judge sentenced Dalaly to 28 months in prison. That same month, Johnson, a former Michigan House speaker, was sentenced to 55 months.
Dalaly, then 71, surrendered to a correctional facility in West Virginia on November 30.
His book states that federal prison policies permit inmates to prepare manuscripts for "private use or publication while in custody without staff approval."
"By documenting my journey through prison, I memorialize the various ways that a person can work to build mental health with a deliberate, intentional plan to prepare," Dalaly's book says.
A new cannabis shop, Nirvana, celebrated its opening in Houghton on Thursday with a ribbon-cutting ceremony. This marks the tenth Nirvana dispensary in Michigan. The Keweenaw Chamber of Commerce facilitated the event.
Nirvana Houghton's Assistant Manager, Scott Curtin, described the company as laid-back and highlighted the distinctiveness of their offerings. "You can expect a lot more from what the others carry. We have our own brands that they won't have," Curtin said.
Curtin emphasized that the store's unique appeal lies in its superior products and competitive pricing. "We stand out more just because of our loyalty to the customers that we have that come in. We offer a very wide rewards system and loyalty system, and I think that really grasps a lot of people to come in," he added.
The new shop is situated on Ridge Street near Walmart. Its operating hours are from 9 A.M. to 8 P.M. Monday through Saturday, and from noon to 6 P.M. on Sunday.
Baker College has partnered with House of Dank (HOD), a well-known cannabis brand in Michigan, to offer cannabis-related internships in Metro Detroit. This collaboration aims to develop a skilled workforce for the cannabis industry while providing students with thorough education and training.
The private college in Oakland County is launching three specialized cannabis certificates to prepare students for careers in the marijuana industry. Each course, available fully online, takes nine weeks to complete.
"Partnering with House of Dank allows us to bridge the gap between education and employment," stated Kelley Suggs, public relations manager for Baker College. "Our goal is to ensure students not only gain valuable knowledge about the cannabis industry but also have the opportunity to apply these skills in real-world settings through internships and job opportunities."
The cannabis certificate programs, developed in collaboration with Green Flower, a leader in cannabis education, cover three essential areas: Advanced Dispensary Associate Skills Training, Cannabis Manufacturing, and Cannabis Cultivation. These programs are designed to meet the growing demand for skilled workers in the expanding cannabis industry.
As part of this initiative, House of Dank will conduct open interviews and plans to hire interns from Baker College's programs, aiming to place them by Labor Day weekend, coinciding with the annual Soaring Eagle Arts, Beats & Eats festival in downtown Royal Oak, Michigan.
"House of Dank has always been about innovation and pushing our industry forward. In keeping with this tradition, we have partnered with Baker College and their new cannabis education program to create a new pipeline of careers for their students. Starting at this year's Arts, Beats & Eats festival, we will introduce the first class of their graduates and our paid interns. We're excited for all who will visit Dankland and/or Dankway this year," said Michael P. DiLaura, House of Dank chief of corporate operations.
Michigan has become the leading cannabis market in the United States in terms of units sold, surpassing even California, according to data from market intelligence firm BDSA. Since late 2022, Michigan consumers have purchased more packages of cannabis products, including gummies, pre-rolls, and grams of flower, than those in California. This shift is significant, given California's population is nearly four times larger than Michigan's.
The primary reason for this trend is the price difference between the two states. While California's cannabis market generates more revenue overall—over $5 billion last year compared to Michigan's $3.06 billion—cannabis products are significantly cheaper in Michigan. For example, a one-gram pre-roll of the Cookies' Ridgeline Lantz strain costs $17.50 at Dr. Greenthumb's Cannabis dispensary in Los Angeles but only $7 at Gage Cannabis in Ferndale, Michigan.
California's higher prices are largely due to its taxation system. The state imposes a 15% excise tax on cannabis sales in addition to state sales taxes that range from 7.25% to 10.75%. Municipalities can also add local taxes, pushing the total tax rate on cannabis purchases up to 38% in some areas. In contrast, Michigan has a 10% excise tax and a 6% sales tax, with no additional local taxes allowed.
These high prices in California discourage consumers from transitioning from the illicit market to the legal one. California has long been a major supplier of illegal cannabis, and the established black market continues to thrive, presenting a significant challenge to the legal market.
Michigan's rapid legalization and market expansion also played a crucial role in its current standing. The state legalized recreational cannabis in late 2019, with an approach that allowed for unlimited state-level licensing. This policy enabled swift growth in cannabis production, leading to an oversupply that caused prices to plummet from $494.77 per ounce in February 2020 to $88.15 in May 2023.
This price drop has made legal cannabis competitive with, and often cheaper than, illicit market cannabis, driving more consumers to purchase from legal sources. In May 2023, Michigan's cannabis industry sold over $278 million in recreational cannabis, and the state is on track to exceed $3.2 billion in sales for the year.
While other states like Colorado and Washington have seen declines in cannabis sales, Michigan's market continues to grow. A report from Oregon-based Whitney Economics indicates that over 75% of cannabis sales in Michigan occur within the legal market, compared to only 44% in California. This discrepancy suggests that California's overall cannabis market is worth more than $11.5 billion annually, while Michigan's is around $4 billion.
Despite Michigan's current success, it is unlikely to maintain this position indefinitely. California is already making efforts to address its market issues, including reducing or suspending local marijuana taxes to boost sales and considering regulatory changes. While the future of California's cannabis market remains uncertain, it is expected to stabilize and potentially reclaim its dominance.
For now, Michigan's cannabis industry can celebrate its achievements and focus on sustainable growth to maintain its market position. However, stakeholders should be prepared for changes as other states, especially California, work to resolve their market challenges.
Locking cannabis storage bags are now available for free at the Monroe County Health Department, located at 2353 S. Custer Road. These bags can be picked up from 8 a.m. to 5 p.m. on weekdays.
These bags are designed to protect children and pets from accidental cannabis ingestion.
"Although medical and recreational cannabis is legal in Michigan, it is important that adults in possession of cannabis take steps to keep the substance locked up in a safe place," the health department emphasized in a recent news release. "Locking bags provide a way to store cannabis safely away from children and pets who may inadvertently ingest a cannabis product, which can put them at risk of serious health effects."
In addition to distributing the storage bags, the Monroe County Health Department will be airing radio and television advertisements over the next few months to promote safe cannabis use and storage. This initiative is funded by the Marijuana Operation and Oversight grant from the Cannabis Regulatory Agency within the Michigan Department of Licensing and Regulatory Affairs.
A national study published in "Pediatrics" reported that in 2017, there were slightly over 200 cases of accidental consumption of cannabis edibles by children under six years old in the U.S. By 2021, this number had surged to 3,054, marking a 1,375% increase, according to the Monroe County Health Department.
"The Michigan Poison and Drug Information Center recorded a 75% increase in cannabis toxicity among children aged five and younger from 2020-2022. Meanwhile, cases among children aged four to 13 grew by 60% from 2020-2023," the health department stated.
In cases where an individual experiences physical or mental distress following potential cannabis exposure, it is crucial to call 911 or seek immediate medical attention. The Poison Control Center is available at 800-222-1222. For further information, visit healthymonroecounty.com.
At the recent Michigan Cannabis Regulatory Agency (CRA) public meeting on June 13th, several significant developments and concerns were discussed. These range from budget approvals and enforcement measures to public comments on various issues affecting the cannabis industry.
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Michigan's House, Senate, and Governor's office have largely agreed to the CRA's budget requests. A notable development includes the establishment of a reference laboratory, which will fall under CRA authority. This lab will play a critical role in enforcement cases, lab testing audits, and the creation of better standards and practices within the cannabis industry.
The meeting highlighted contrasting sales trends in the cannabis market. Recreational sales have reached an all-time high over the past three months, while medical cannabis sales are at their lowest levels historically. The state currently has 7,700 registered caregivers.
The CRA has bolstered its enforcement capabilities with 15 full-time agents who manage 150-200 complaints monthly. Between March and May, the agency conducted 956 inspections across 748 businesses. Additionally, there are 239 active social equity license operators in the state.
The public comment section of the meeting featured a diverse array of viewpoints from industry stakeholders and community members:
Aspergillus Testing: Josh Smith, representing Therapeutic Health Choice, argued against mandatory Aspergillus testing for recreational cannabis, referencing his experience in Oregon. He contended that while medical cannabis might benefit from such testing, recreational cannabis does not require it due to naturally occurring spore levels in the environment.
Transportation and Compliance: Lindsay Fen, representing Emerald Secure Transportation, raised concerns about arbitrary time limits and rejections, which could potentially disrupt their operations.
Fines and Enforcement: Eric Colandrea, counsel for LaHaze Grow in Cheboygan, expressed frustration over a $6,000 fine for failing to test employee samples, highlighting the financial strain such fines impose on smaller businesses.
Organic Standards: A caregiver named Theo Gantos advocated for certified organic standards for cannabis, suggesting that Michigan could lead in this area under CRA guidance.
Market and Enforcement Issues: William McKenzie, CEO of Heritage Farms, discussed market cycles and the impact of out-of-state conversion oil on prices. He claimed that a significant portion of the market is affected by illicit oil and called for stronger enforcement measures.
Conversion Oils and Safety: Several commenters, including representatives from DSP Machine, a cannabis attorney named Nicholas Galindez, and Josh Swaider from Infinite Analysis Labs, emphasized the dangers of conversion oils. They noted that these oils, often produced out-of-state, compromise consumer safety and called for stricter enforcement and testing.
Local Government Corruption: Liz Bennett from Penn Township accused local officials of corruption in the cannabis industry, suggesting that the state should oversee the collection of taxes and license fees to prevent malfeasance.
License Fees: A small-time operator from Northern Michigan, Kelly Young, requested a reduction in renewal fees, criticizing the state for enabling larger out-of-state investors to dominate the market at the expense of small local operators.
Testing and Fraud: Marco Troami, a consultant specializing in cannabis lab setups, highlighted the issue of hemp conversion oils and testing fraud. He advocated for the development of tests to distinguish genuine cannabis oil from synthetic compounds and suggested implementing a secret shopper program to audit lab results and restore confidence in the regulatory system.
The meeting underscored the complexity of managing Michigan's growing cannabis industry. From improving lab standards and enforcement to addressing market dynamics and ensuring safety, the CRA faces numerous challenges. However, the collaborative efforts between state authorities and industry stakeholders aim to create a more robust and reliable cannabis market in Michigan.
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