Why it matters: Two cannabis bills in Michigan aim to allow the Cannabis Regulatory Agency (CRA) to do business with Native American cannabis businesses, breaking the current requirement for separate operation. The bills seek to promote interaction and trade between the two sectors while maintaining a level playing field with equal tax rates.
What they are saying: The bills, Senate Bill 179 and Senate Bill 180, would enable the CRA to enter agreements with Native American tribes regarding marijuana-related regulatory issues. Tribal businesses would be exempt from the state excise tax and implement their own tribal tax of 10%. The legislation also ensures that conducting these agreements is not unlawful.
The big picture: The legislation seeks to bridge the gap between state licensed cannabis businesses and tribal cannabis businesses, allowing them to trade and do business with each other. This move could foster cooperation and economic opportunities between the two sectors while promoting equality in taxation.
What to watch: Both Senate Bill 179 and Senate Bill 180 must be passed for the proposed changes to take effect. It is worth monitoring the support for these bills, including key stakeholders such as Native American tribes, the CRA, and Michigan-based cannabis businesses. Additionally, ongoing developments and changes in cannabis legislation in Michigan should be monitored, as they can significantly impact the industry and its stakeholders.
Your take: This legislation is a positive step towards fostering collaboration and inclusivity in the cannabis industry in Michigan. By allowing state licensed businesses and tribal businesses to interact, it promotes economic growth and opportunities for both sectors. Moreover, the equal tax rates maintain a level playing field and fairness in the industry. This move could serve as a model for other states to enhance cooperation between different segments of the cannabis industry.
