So the drug war continues with the government now protecting it’s corner from the other gangs.

According to a report released in May by the Drug Enforcement Administration, international crime syndicates have effectively gained control of the legal cannabis industry by taking advantage of inadequate regulatory measures, allowing them to flood markets in both the United States and Europe with illegal products while law enforcement faces significant challenges in curbing their activities.

The report, released on May 15, 2025, details how Chinese TCOs have come to dominate the domestic cultivation and distribution of marijuana, particularly in states where cannabis has been legalized. These operations often produce highly potent cannabis and may involve the use of banned or restricted pesticides, posing risks to both consumers and the environment.

Simultaneously, Mexican cartels continue to play a role in the illicit cannabis trade, often utilizing established drug trafficking routes and networks to move product across the border and within the U.S.

The DEA’s assessment underscores the complex challenges in regulating the cannabis market, even in states with legal frameworks. The presence of sophisticated criminal organizations in the illicit sector undermines the legal industry and poses significant law enforcement challenges.

The 2025 NDTA provides a comprehensive overview of drug threats facing the United States. While it notes a decrease in overall drug overdose deaths, the threat from synthetic drugs and the involvement of TCOs in various drug markets, including cannabis, remains a critical concern for law enforcement and public health officials.

Link to the DEA’s 2025 National Drug Threat Assessment

General Information about the Illicit Cannabis Market:

The illicit cannabis market persists despite legalization in many states due to several factors:

• Price: Illicit cannabis can often be sold at a lower price than legally produced and taxed cannabis.
• Regulation Avoidance: Illegal operations bypass regulations related to product testing, licensing, and taxes, which can be costly for legal businesses.
• Large-Scale Production: Criminal organizations may engage in large-scale cultivation that exceeds the limits set for legal personal or commercial grows.
• Interstate Trafficking: Cannabis remains illegal at the federal level, leading to interstate trafficking from states with more liberal laws to those with stricter regulations.
• Criminal Enterprise Diversification: Established drug trafficking organizations often diversify their activities to include cannabis, leveraging their existing networks.

The involvement of Chinese TCOs in the illicit cannabis market is a more recent development that has gained attention due to large-scale, sophisticated indoor grow operations often found in states with legal medical or recreational cannabis. These operations can generate significant profits, which are then often laundered through complex financial schemes.

Mexican cartels have a long history of involvement in drug trafficking, including cannabis. While their focus has increasingly shifted towards more profitable and potent drugs like fentanyl and methamphetamine, they still participate in the illicit cannabis trade, particularly in regions closer to the border.

The DEA’s continued focus on the illicit cannabis market highlights the ongoing need for effective law enforcement strategies to disrupt these criminal organizations and protect the integrity of state-legal cannabis markets, as well as public safety and the environment.

• The Michigan Court of Appeals determined that the Michigan Regulation and Taxation of Marijuana Act (MRTMA) takes precedence over older laws regarding marijuana cultivation, specifically the Public Health Code.
• This means that cultivating even large quantities of marijuana, such as over 1,000 plants, is considered a misdemeanor offense, rather than a felony under the older Public Health Code.Implications:

• Reduced Penalties: Individuals found to be illegally cultivating large amounts of marijuana face potentially less severe penalties (misdemeanor charges instead of felony charges).
• Challenges to Past Convictions: The ruling could potentially give grounds for individuals previously convicted of felony marijuana cultivation charges under the Public Health Code to challenge their convictions and seek to have them reduced to misdemeanors, according to MLive.com.
• Impact on Law Enforcement: The ruling has implications for law enforcement and prosecutors in Michigan, potentially requiring a reevaluation of how they handle cases involving large-scale marijuana cultivation.Important Note:
• While the ruling potentially reduces penalties for illegal marijuana cultivation, it doesn’t legalize the activity itself. Cultivating more than the legally allowed amount (12 plants for personal use) is still a violation of the MRTMA.
• The ruling primarily focuses on the prosecution and penalties associated with large-scale illegal marijuana cultivation, not the legality of the cultivation itself.

  
  It’s crucial to consult with legal professionals for accurate and up-to-date information on Michigan marijuana laws, as they can be complex and subject to change. 

But……….

MCL 333.27965(4) states, in part:
[A] person who possesses more than twice the amount of marihuana allowed by section 5 [MCL 333.27955], cultivates more than twice the amount of marihuana allowed by section 5, or delivers without receiving any remuneration to a person who is at least 21 years of age more than twice the amount of marihuana allowed by section 5, shall be responsible for a misdemeanor, but shall not be subject to imprisonment unless the violation was habitual, willful, and for a commercial purpose or the violation involved violence. [Emphasis added.]

Michigan Supreme Court – Order April 19, 2024

This document is a Michigan Supreme Court order about the case People of the State of Michigan versus Shaaln M. Kejbou, focusing on the interpretation of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). The court denied an appeal, which means a lower court’s decision stands. This decision limited felony penalties for large-scale, unlicensed marijuana cultivation.

Judge Welch raised concerns that the MRTMA, intended to legalize recreational marijuana and personal cultivation (up to 12 plants), might unintentionally prevent felony charges even for very large, unlicensed operations (like the defendant’s alleged 1,100+ plants).

This is seen as problematic, potentially harming the legal marijuana market and failing to deter illegal commercial production.

The article suggests the Michigan Legislature may need to revise the MRTMA to address this.

Michigan Supreme Court Order –  April 19, 2024 (Read It)

Here’s some related links

• Court rules that cannabis grows of any size is just a misdemeanor in Michigan

• MI COURT OF APPEALS – Over 1000 Cannabis Plants Just a Misdemeanor
• MICHIGAN MAN GROWING MARIJUANA WON’T FACE MAJOR CHARGES, COURT SAYS
• COURT OF APPEALS DECISION GREEN LIGHT FOR MMMA CAREGIVERS?
• CHINESE-FUNDED MARIJUANA FARMS SPRINGING UP ACROSS THE U.S.
• Michigan Supreme Court Order –  April 19, 2024

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