Gov. Whitmer Signs Order to Establish Marijuana Regulatory Agency

LANSING, Mich. — Today Governor Whitmer signed an executive order that establishes the Marijuana Regulatory Agency within the Department of Licensing and Regulatory Affairs (LARA). This Agency combines previous authorities, functions, and duties into a modernized process which allows for LARA to more efficiently regulate medical marijuana and apply this expertise to recreational marijuana as well.

“This executive order will eliminate inefficiencies that have made it difficult to meet the needs of Michigan’s medical marijuana patients,” said Whitmer. “All elements of this Agency have been designed to serve and better protect Michigan residents, and I’m eager to have a unified effort across state departments to make sure this process runs effectively and efficiently. I appreciate the productive input I’ve received on this important issue, including from Senate Majority Leader Mike Shirkey.”

A proposal to legalize recreational marijuana was passed on the ballot this November, ten years after Michigan voted to legalize medical marijuana.

“This executive order establishes a clear framework that will allow our officers to be fair and more consistent when it comes to marijuana enforcement,” said Sheriff Clayton of Washtenaw County. The new system allows for more predictability, which will ultimately enhance public safety and keep our communities safe.”

“As a sheriff, I appreciate Governor Whitmer’s leadership on this important issue,” said Sheriff Richard Fuller of Kalamazoo County. “This executive order will help keep our communities safe by ensuring that enforcement of marijuana issues is performed efficiently, fairly and consistently.”

Executive Order 2019-7 addresses matters related to both recreational and medical marijuana:

Creating the Marijuana Regulatory Agency (the “Agency”) within LARA, responsible for administering laws related to medical and recreational marijuana.
Appointing an executive director who will run the Agency.
The appointed director will provide annual financial disclosures and is subject to advice and consent, along with a four-year employment restriction.
The Agency will be the primary decision maker and will hold four public meetings each year in which they will hear complaints while providing information on the administration of the authorities, powers, duties, functions, and responsibilities vested in the Agency by this order or otherwise by law.
- Abolishing the Bureau of Marijuana Regulation and the Marihuana Licensing Board.

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“The EO 2019-7 eliminating the Medical Marihuana Licensing Board is a step in the right direction to advance this regulated industry and to make Michigan a leader in this space. The volunteer Board took on a monumental lift to get this program going, but in the short time frame the program has been running, we have not seen the expected volume of licensees entering the market,” said Shelly Edgerton, attorney at Dykema. “With this EO, the licensing process will be more efficient and allow more applicants into the space. I applaud Governor Whitmer for recognizing the need to expedite the regulated market for patient care and safety.”

To view the full executive order click the link here:

Under a 2008 voter-approved law that authorized medical marijuana, roughly 293,000 patients are registered with the state to grow their own cannabis or obtain it from 41,000 registered caregivers who can supply a limited number of people. A 2016 law aimed in part to address confusion surrounding the legality of dispensaries, called provisioning centers by state law, created a separate five-tiered system to grow, process, sell, transport, or test medical marijuana.

To date, 105 licenses have been issued and Whitmer’s move was welcomed by an industry group, law enforcement leaders, lawmakers and others. Shelly Edgerton, an attorney who led the Department of Licensing and Regulatory Affairs under former Republican Gov. Rick Snyder, said abolishing the medical marijuana licensing board is a “step in the right direction. … The volunteer board took on a monumental lift to get this program going, but in the short time frame the program has been running, we have not seen the expected volume of licensees entering the market.”