Michigan’s House of Representatives has approved bipartisan legislation that would allow the state’s licensed marijuana businesses to trade with tribal cannabis entities located within the state. The bills, SB 180 and SB 179, were previously passed by the Senate in June and will now go to Governor Gretchen Whitmer for her signature.
SB 180 would enable Michigan’s Cannabis Regulatory Authority to form agreements with tribal governments on marijuana-related regulatory matters. It would also clarify that state-licensed businesses can transport cannabis products to tribal marijuana businesses. In certain conditions, it would exempt tribal cannabis businesses from the state’s 10% marijuana excise tax, although tribes entering agreements with the authority would need to impose their own tax of at least 10%, which they would retain.
SB 179 would allocate a portion of state cannabis tax revenue to tribes based on sales attributable to retailers or microbusinesses located on tribal lands. This change would redirect a comparable portion of revenue from the state’s Marihuana Regulation Fund to tribal governments.
The bills aim to allow product sales between the state’s legal cannabis industry and tribal marijuana businesses on Indian lands, ensuring that tribal businesses pay the same tax rate as other businesses. Supporters of the legislation include the Michigan Cannabis Industry Association, Common Citizen, the Cannabis Regulatory Authority, and tribal governments like the Grand Traverse Band of Ottawa and Chippewa Indians and the Saginaw Chippewa Indian Tribe.
The legal cannabis industry in Michigan has seen consistent record-setting sales, with nearly $277 million in cannabis products sold in July. However, the average cost of an ounce of adult-use cannabis has remained low at around $98, compared to $180 per ounce in December 2021.
By FCCT Editorial Team
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