Michigan Cannabis Regulators Seek Legislative Support

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September 11 2025

Black-Market Concerns

The Michigan Cannabis Regulatory Agency (CRA) requests more authority from the state Legislature to tackle illegal cannabis activities. Issues include black-market growing, selling, and fraudulent testing by companies.

Unregulated Hemp Products

Hemp-derived products, legalized under the 2018 Farm Bill, bypass regulations. These products, sold without age or labeling restrictions, can contain high THC levels. CRA's Brian Hanna displayed a product from a liquor store with triple the THC of regulated cannabis.

Evolving Market

CRA spokesperson David Harns noted the market’s shift. Non-intoxicating cannabinoids are converted into intoxicating ones, sold as hemp at gas stations and unregulated spaces, raising safety concerns.

Cannabis Reference Lab

The CRA’s 2024 budget allocated $2.8 million for a Cannabis Reference Lab to ensure accurate testing and advance cannabis science. However, the lab needs legal permission to possess cannabis. A bill introduced in May to allow this remains stalled in committee.

Lab-Shopping Issue

Harns highlighted "lab-shopping," where businesses submit products to multiple labs and use only favorable results. A centralized lab would enforce stricter compliance.

Streamlining Operations

The CRA seeks to simplify licensing for medical and recreational cannabis facilities. Despite recreational cannabis dominating sales, businesses must hold separate licenses for each, increasing complexity.

Industry Stability

Harns emphasized that these changes would maintain industry health, stabilize cannabis prices, and discourage illegal activities by ensuring businesses can comply with regulations.