At a marathon session on Wednesday, the Grand Traverse County Board of Commissioners voted to allocate $150,000 of cannabis tax revenue to Pine Rest Christian Mental Health Services of Traverse City. This decision, reached after over four hours of deliberation and impassioned public input, aims to address the critical shortage of child psychiatric services in Northwest Michigan.
The approved funding, which passed with a 6-3 vote, will be used to recruit, relocate, and onboard a new child psychiatrist for Pine Rest’s Traverse City clinic. Local officials have described the need for such services in the region as "urgent and persistent."
Commissioners T.J. Andrews, Brian McAllister, and Scott Sieffert opposed the measure, not due to objections against mental health support but rather concerns over the process by which the funding was awarded. Andrews, speaking on behalf of the dissenters, emphasized the need for a more structured and transparent approach to such funding requests, noting, “This is not a sustainable approach to allocating funds. It has nothing to do with Pine Rest, but it's not our role to hire a psychiatrist.”
Pine Rest initially requested $400,000 in May to bolster behavioral health services in the area. That request was denied, with commissioners asking for more detailed information on the necessity and intended use of the funds. On Wednesday, Pine Rest revised their request to $290,000, acknowledging the receipt of $110,000 from other sources since May. The board ultimately approved $150,000, funded by cannabis tax revenues instead of drawing from the county's general fund, a suggestion made by Board Chair Rob Hentschel.
Supporting the funding were Commissioners Darryl Nelson, Ashlea Walter, Lauren Flynn, Penny Morris, Brad Jewett, and Hentschel.
The relationship between the Traverse City Pine Rest clinic and its larger parent organization became a focal point during Wednesday's discussions. Pine Rest, a prominent nonprofit behavioral health provider, operates 21 outpatient clinics across Michigan, along with inpatient programs in the Grand Rapids area. However, the Traverse City clinic is a smaller entity that often spends more on patient services than it generates in revenue, influenced by fluctuating insurance reimbursements and its commitment to providing reduced-rate or free services to low-income families.
In a region chronically underserved by mental health professionals, the Traverse City Pine Rest clinic often acts as a vital resource for patients who do not qualify for services from Northern Lakes Community Mental Health, which primarily serves those without private insurance. The clinic’s manager, Kristine Wilmoth, highlighted the clinic's crucial role in serving children and young adults. In 2023 alone, the clinic treated approximately 4,350 patients from Northern Michigan, including 850 under the age of 18.
Wilmoth stressed the growing need for youth mental health services, citing the severe consequences that can arise from inadequate care for children in crisis. “All too often, a 7-year-old who doesn't get mental health services when needed enters a lifelong downward trajectory that leads to substance abuse, unemployment, homelessness, and incarceration,” she explained.
The addition of a new child psychiatrist is expected to enable the clinic to expand its services significantly, helping hundreds more young people in urgent need. Wilmoth also noted that this expansion would enhance collaboration with local doctors and hospitals.
Despite financial challenges, Pine Rest’s Traverse City clinic is moving to a smaller, more cost-effective office. Wilmoth pointed to the clinic’s new 10-year lease as evidence of its ongoing commitment to the community.
Commissioner Penny Morris, representing Long Lake Township, voiced her support for the funding, acknowledging the broader implications of failing to address the need for child psychiatric services. “While I'm concerned about opening the 'First National Bank of the BOC,' I know that these services are much needed, and the impact of not doing it is far-reaching,” she said.
Commissioner Darryl Nelson, who represents District 6, initially expressed reservations about the county board’s role in reviewing such funding requests but ultimately supported the use of cannabis tax money to jump-start the expansion of psychiatric care for children in the region.
The funding comes from Michigan's cannabis excise tax, a revenue stream established by the 2018 legalization of adult-use recreational cannabis. This law imposes a 10-percent excise tax on all cannabis sales, in addition to the state’s standard 6 percent sales tax.
In 2023, legal cannabis sales in Michigan reached approximately $3 billion, a 70 percent increase from the previous year. This generated about $290 million in cannabis tax revenue for the state, far surpassing the $73 million collected from excise taxes on alcohol.
A significant portion of cannabis tax revenue is distributed to municipalities and counties that have licensed dispensaries, with $87 million allocated for this purpose in fiscal year 2023. Another $102 million is directed to the state’s School Aid Fund and Michigan Transportation Fund.
Grand Traverse County is expected to receive about $886,000 from cannabis excise taxes for the 2023 fiscal year, while Traverse City will receive $709,000. Smaller amounts are slated for Green Lake Township and Fife Lake Township.
Michigan's cannabis industry has long faced financial challenges due to federal restrictions that prevent the use of traditional banking services for transactions. Specifically, credit card companies like Visa and Mastercard, which are federally chartered, have prohibited their use in cannabis-related transactions. This has left both dispensaries and customers in Michigan grappling with limited payment options, often resorting to cash-only transactions.
In response to these challenges, New Line Processing, a New York-based company, is stepping into the Michigan market with a new financial product designed to help cannabis businesses and consumers navigate these restrictions. Founded in 2014, New Line Processing focuses on supporting regulated and restricted industries, with cannabis being one of its core competencies.
Dan Abadir, CEO of New Line Processing, recently shared details about their new product in an interview. The company is introducing a closed-loop credit system that provides cannabis consumers with revolving lines of credit, which can be used at participating dispensaries. This system, named Omn Credit, is designed to bypass the restrictions imposed by traditional credit card companies while ensuring compliance with state and federal regulations.
The credit limits offered through this system range from $250 to $1,000, depending on the creditworthiness of the applicant. This approach is particularly well-suited to the cannabis market, where the average transaction value hovers around $100 to $140. By offering modest credit limits, the system minimizes risk while providing consumers with convenient access to credit for their purchases.
When a customer enters a participating dispensary, they will be screened using a device provided by New Line Processing. This device verifies the customer’s identity and checks for any potential fraud, using data from the DMV and other sources. Once approved, the customer receives an SMS notification with a link to complete their account setup, which involves creating a user ID, password, and accepting the terms and conditions. Upon completion, the customer is issued a digital QR code, which serves as their credit account for purchases.
Unlike other financial instruments that act as intermediaries, such as stored-value cards, this revolving credit line functions similarly to traditional credit cards, except it operates entirely within the cannabis industry’s legal framework. The dispensaries benefit from this system as well, receiving free equipment from New Line Processing to facilitate the credit application and transaction process.
While initially designed to assist consumers with limited or weak credit, the Omn Credit system aims to attract a broad range of customers, including those with prime and mid-prime credit ratings. The goal is to expand the product's footprint beyond the cannabis industry, eventually making it a general-purpose financial tool available across various sectors.
This innovative solution offers a much-needed financial service to Michigan’s cannabis market, potentially setting a new standard for how transactions in regulated industries can be handled. As New Line Processing continues to grow, it aims to make Omn Credit a household name, providing consumers with a reliable and compliant way to finance their purchases in the evolving cannabis industry.
For more information about New Line Processing and their credit solutions, visit newlineprocessing.com.
Note to our readers: While this incident is not directly related to cannabis, it tangentially connects to the broader cannabis industry due to the involvement of Delta-8 THC products. The explosion in Clinton Township involved a facility that distributed vape pens, many of which were intended for use with Delta-8 THC, highlighting the sometimes blurred lines within the regulatory landscape of cannabinoid products.
The U.S. Environmental Protection Agency (EPA) is set to begin removing hazardous materials next week from a former smoke and vape shop in metro Detroit that was the site of a deadly explosion earlier this year. The incident tragically claimed the life of a pedestrian.
The cleanup effort will focus on the former Goo Smoke Shop and Select Distributors warehouses located at 19100 15 Mile Road in Clinton Township, near Fraser. According to the EPA, the site contains uncovered cans of butane, compressed gas cylinders, vape pens, and lithium-ion batteries that must be safely removed.
This operation follows an initial cleanup conducted in May, during which three 55-gallon drums of lithium-ion batteries and 3,582 compressed gas cylinders were removed and recycled. The total cost of the cleanup is estimated at $2.7 million.
The cleanup is necessary due to a massive explosion that occurred on March 4th at the building. The explosion, which involved cans of butane, compressed nitrous oxide, vape pens, and batteries, sent debris flying over several miles. A piece of projectile debris struck and fatally injured Turner Lee Salter, a 19-year-old pedestrian who was walking half a mile away from the site. Salter later succumbed to blunt force trauma at the hospital. Additionally, a township firefighter was injured in the blast.
Noor Kestou, the 32-year-old owner of the shop and a resident of Oakland County, was charged in April with involuntary manslaughter, a felony that carries a potential 15-year prison sentence. The charges were filed in the 41B District Court in Mount Clemens.
The EPA revealed that the building housed a significant quantity of hazardous materials, including ultra-refined butane cans, compressed nitrous oxide gas cylinders, and lithium-ion battery vape pens, in addition to cannabis CBD products, hookahs, lighters, and other novelty items. Local officials and prosecutors have stated that these materials were improperly stored, though the exact cause of the explosion has yet to be officially determined.
The explosion is currently under investigation by the U.S. Bureau of Alcohol, Firearms, Tobacco, and Explosives (ATF). According to reports from the Macomb Daily, Kestou was apprehended in April at a New York airport while attempting to board a one-way flight to Hong Kong.
Ironwood, Michigan, is welcoming yet another cannabis dispensary, bringing the total number in this small town to five. With a population of less than 5,000, Ironwood, located on the border of Wisconsin, has quickly become a hub for cannabis retail. The first dispensary to set up shop was Higher Love, followed by Rize. In more recent years, High Profile opened its doors, and The Firestation Cannabis Company also joined the lineup. Now, the latest addition is Levels Cannabis Supercenter, set to hold its grand opening on August 24th-25th.
The news of Levels Cannabis Supercenter’s arrival spread through the town via a flyer that made its way into local mailboxes. The flyer, filled with bold promotions, highlighted their aggressive marketing strategy, which includes prize giveaways, drawings, and a promise to price match. The flyer also prominently states, "21+ Out Of State Welcome," targeting potential customers from nearby Wisconsin and Minnesota, where cannabis laws are much stricter. Notably, Wisconsin has yet to legalize cannabis even for medical use, making Ironwood an attractive destination for residents from neighboring states seeking legal cannabis products.
The opening of Levels Cannabis Supercenter underscores the growing competition among dispensaries in Ironwood, each vying for a share of the lucrative cross-border market. This competition has led to creative promotions, such as High Profile's recent offer of gas money to customers who show a Minnesota driver's license, further cementing Ironwood's reputation as a key access point for cannabis in the region.
Corktown is set to welcome a new addition to its vibrant scene: a bakery and café specializing in Delta-9 THC-infused treats and beverages. Wake-N-Bakery, a Chicago-based chain known for its CBD products since its inception in 2020, is preparing to open its first Michigan location at 1441 Elizabeth Street. The grand opening is expected in the coming weeks, contingent on final approval from city authorities.
The café, housed in the space formerly occupied by Michigan & Trumbull, is undergoing its final preparations. The interior promises a lively atmosphere with bright lounge seating and cannabis-themed murals adorning the walls. Countertops are set to feature playful decorations, including Jeff Koons-inspired figurines and bite-sized candies.
Once open, customers will be able to enjoy a variety of coffee beverages and unique drinks like the Poppin’ Pistachio, or the hibiscus-infused Purple Haze lemonade made with ginger, manuka honey, grenadine, and butterfly pea. For those preferring something warm, the Chitown Twist combines turmeric ginger chai, French vanilla, and steamed milk. All beverages are initially THC-free, with the option to add THC infusions ranging from a mild 10-milligram dose to a potent 100-milligram serving. The food menu will offer an array of THC-infused pastries, including brownies, rice crispy treats, cookies, and cheesecake, while a selection of THC-free muffins will also be available. Additionally, the café will stock a line of CBD treats for dogs, canned THC and CBD seltzers, pre-rolls, weed gummies, and topical skincare products.
Wake-N-Bakery was co-founded in 2020 by Brianna Banks and Mohamed Lofty. For their Corktown venture, they have partnered with Detroit-based owner-operators Adriana Plazas and Nicole Cebalt. The team has ambitious plans, including another Michigan location in Grand Rapids.
Michigan has emerged as a significant player in the cannabis industry since the legalization of recreational cannabis in late 2018, with the first sales commencing in 2019. The state now boasts the largest cannabis market in the United States by sales volume, surpassing even California and Colorado. Despite this success, Detroit officials have faced challenges in regulating where marijuana businesses can operate, leading to a concentration of dispensaries in nearby areas like Hamtramck and inner-ring suburbs such as Ferndale and River Rouge.
Consumption lounges, where patrons can use marijuana products on-site, have been legal in Michigan since the advent of recreational cannabis. However, the COVID-19 pandemic delayed the growth of these establishments due to social distancing restrictions. These lounges operate under regulations that prohibit the sale of cannabis products on-site, requiring customers to have their goods delivered from licensed dispensaries.
What distinguishes Wake-N-Bakery is its focus on Delta-9 THC, a compound naturally found in hemp. Delta-9 THC is federally legal when present at levels below 0.3% by dry weight. This characteristic allows Wake-N-Bakery to offer THC products in states with stricter cannabis laws, providing a unique advantage in the evolving market.
On Tuesday, the Meridian Township Board unanimously approved an ordinance amendment aimed at retaining funds from cannabis-related prosecutions within the township, rather than allowing them to go to Ingham County. The vote, which concluded with a 6-0 decision, marks a significant shift in how the township will handle financial penalties associated with cannabis offenses, especially those involving underage possession and distribution.
Meridian Township Police Chief Rick Grillo and Township Attorney Cullen Harkness first introduced the proposed ordinance amendment last month. The initiative was presented as a means for the township to better manage the resources generated from cannabis-related legal actions. Under the previous system, fines and penalties collected from these prosecutions were automatically directed to Ingham County, leaving the township without a share of these funds.
Trustee Marna Wilson provided insights into the township's existing cannabis-related prosecution powers, noting that Meridian Township has long had an ordinance in place to address violations, particularly those involving individuals under the age of 21. These cases typically involve possession or distribution, areas where the township has seen a need for continued enforcement.
"We have an ordinance that allows us to prosecute for marijuana issues and violations," Wilson stated during the meeting. "Primarily for possession in under 21-year-olds and distribution."
Before the newly passed amendment, any financial penalties resulting from these prosecutions were allocated to Ingham County. The ordinance change ensures that moving forward, such funds will remain within Meridian Township, providing a potential boost to local resources.
"What we're trying to do with this ordinance is, if there are monetary penalties associated with the conviction, the Township gets to keep that money instead of turning it over to the county," Wilson explained. This shift is seen as a way to enhance the township's financial capabilities, particularly in areas like law enforcement.
Wilson highlighted that the funds recouped through these prosecutions could be utilized in various ways to benefit the township. While they might contribute to the general fund, Wilson indicated a strong likelihood that the money would be allocated to bolster police support, addressing public safety needs directly within the community.
The ordinance is set to take effect on September 18th, marking a new chapter in how Meridian Township manages its cannabis-related legal processes and the accompanying financial implications. The amendment's passage could lead to more focused and well-funded law enforcement efforts within the township, particularly as it relates to cannabis regulation and youth-related offenses.
Meridian Township Clerk Deborah Guthrie was not present for the vote, but the board's unanimous decision underscores strong support for the measure among township leaders. As the new ordinance takes effect, it is expected to provide the township with greater control over the financial outcomes of cannabis-related legal actions, ensuring that funds generated from these prosecutions directly benefit the local community.
Helpful Links Categories Recent News