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Marijuana Laws and Development

Knowledgeable Business Attorneys Offering Sound Advice to Those in the Bourgeoning Cannabis Industry

Since the passing of the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”), the business of growing, manufacturing, and selling cannabis has entered a stage of rapid growth in the State of Michigan. Although Michigan was home to a burgeoning and robust marijuana industry after the passage of the Michigan Medical Marijuana Act (“MMMA”), the MRTMA’s passage was the starting gun for what is predicted to be a $15-billion-dollar industry by the end of 2023.

At the Neumann Law Group, our business law attorneys are intimately familiar with marijuana laws and development in Michigan and across the United States. We have the knowledge and tools to confidently help you overcome the common obstacles to entry and advise you of your options. With our help, you can rest assured that any course of action you take will be well-thought-out and designed to minimize the chance of any regulatory issues down the road.

The Growth of the Legal Marijuana Business in Michigan

The legalization of a previously illegal commodity set the stage for the emergence of a novel economic dynamic. The product itself is well known, and the illicit marijuana market was thriving despite a legal prohibition. In essence, the MRTMA unleashes modern commerce into an existing marketplace, but a marketplace devoid of established (lawful) participants on the supply side. As recreational production and sales licenses are issued, the market will shift from virtually no public competition to a crowded field. Under these circumstances, the speed with which producers and sellers are able to begin operations will mean the difference between wild success and tremendous failure.

The MRTMA, and the MMMA before it, created a legal framework for the production, manufacture, testing, transportation, and sale of cannabis and cannabis-related products. Within that framework, the Michigan Department of Licensing and Regulatory Affairs (“LARA”) was empowered to enact regulations designed to effectuate the basic plan set forth by the legislature. The regulatory process has been fraught with uncertainty, however, making skilled representation imperative to successfully navigating the murky waters.

While the cannabis industry is rife with opportunity, entering into the marijuana industry requires specialized legal skills, not only to obtain licensure but also to ensure compliance with local zoning ordinances. The MRTMA gives each municipality the option to either elect to “opt in” and allow licensees in their jurisdiction or to “opt out” of the industry entirely. Even with the proper license, a new entrant must make sure the municipality has decided to opt in and that any proposed location for the operation complies with local zoning ordinances regarding the placement of cannabis licensees.

Other traditional legal matfers that concern any commercial business must also be addressed by entrants into the marijuana industry. Business entities must be lawfully formed under state law. Capital must be raised in accordance with existing laws regarding investment and the issuance of securities. The acquisition of real property for the operation presents the same potential pitfalls as any commercial property purchase. Industry participants are also employers, so compliance with employment and labor laws must be ensured. In sum, the traditional transactional needs of any business must also be addressed by entrants into the cannabis industry.

Is Your Cannabis Business in Need of an Experienced Marijuana Laws and Development Lawyer?

Whether you are a sophisticated business enterprise entering the cannabis industry because of its potential for rapid growth or a boutique firm looking to turn a passion into a career, the experienced attorneys at Neumann Law Group are prepared to meet your legal needs. We possess an unrivaled knowledge of the marijuana laws and development across the country, and are prepared to put our experience behind your business. To learn more, and to schedule a free consultation today, give the Traverse City cannabis industry lawyers at the Neumann Law Group a call at 800-525-6386. You can also connect with us through our online contact form.

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