Lame Duck Recap
In the final hours of their two-year session, legislators passed dozens of bills and sent them to Gov. Gretchen Whitmer for consideration.

Other measures — proposals to change Michigan’s presidential primary date, to scale back a potential spike in the tipped minimum wage and to expand a tax break for lower-wage workers — stalled and were left for the next Legislature, which will flip from Republican to Democratic control.

A spending deal that could have included a $200 million deposit into the state’s main economic development fund for an unspecified project in Delta County in the Upper Peninsula and exempted sales tax from businesses’ delivery and installation services fell through, too.

Convention center
Legislation would let the authority that oversees Detroit’s Huntington Place convention center enter into public-private arrangements, lift its spending cap, authorize new borrowing and expand the facility’s definition to include nearby roads. The action comes as the convention hall is working to encourage the construction of hotels on the nearby former site of Joe Louis Arena.

The definition of a convention facility would be revised also include bike paths, plazas, green space and roads necessary or convenient for use in connection with the facility. A $279 million spending cap on expanding or renovating Huntington Place would be lifted. The Detroit Regional Convention Facility Authority could issue new bonds not to exceed $299 million.

Convention authorities, which can use excess distributions from the Convention Facility Development Fund to pay down debt, could also spend the money on capital expenditures, including payments under a public-private arrangement.

QLine
The convention bills also would extend a $5 million annual subsidy for Detroit’s QLine streetcar for an additional 17 years. The state’s Convention Facility Development Fund, which is funded by hotel and liquor taxes and takes in roughly $100 million yearly, is primarily distributed to counties and the Detroit Regional Convention Facility Authority.

Since the 2019-20 fiscal year, the QLine has gotten $5 million a year — a subsidy that ended in the last budget year under current law. The legislation would continue the allotment through the 2038-39 fiscal year. The QLine opened in 2017.

Recycling
An eight-bill package is designed to boost Michigan’s 18 percent recycling rate, which lags the national average of 34 percent. It would revise landfill and waste diversion center regulations, increase fees for landfill construction and operating permits, require that landfills carry more financial assurances and mandate that counties have materials management plans.

There would be new rules governing the solid waste industry, including coal ash and recyclables, and certain waste haulers would have to provide recycling services for single-family residences. The Senate made late changes that backers said could reduce the amount of plastic that ends up in landfills but which opponents said would allow for the burning of "hot garbage."

Nursing home visits
Legislation would cap how long state and local public health officials could prohibit or limit visits by family to patients in health care facilities during an epidemic or pandemic. After 30 days, an order could no longer prohibit or limit family members’ visits to patients or residents with a cognitive impairment.

The bill is a response to concerns raised early in the COVID-19 pandemic about restricted access to people who were near death or needed more support due to dementia, brain injuries, developmental disabilities or diseases.

CRA’s Final Yearly Meeting:  Some Notes & Takeaways as the Year Ends

The CRA held its final Public Meeting with the new director making his debut public meeting appearance. As with all the public meetings the CRA talked about its strategic plans and goals for the 2023 years which will be available in the next few weeks.  At the top of the list is improving consistency in all aspects of the licensing process, keep Michigan as a leader in the cannabis business world, and move forward with more strategic partners to better the communication between the agency and the public.

The director moved on to the happenings within the legislation in regard to cannabis mentioning that as the 2022 year is winding down so is Michigan’s legislation. With lame duck essentially over, DCD does not anticipate any more voting to happen, meaning any bills that have not been voted on will need to be resubmitted once the legislature is back in session. 

With that said, the house has been able to pass three bills, which we anticipate to be signed by the end of the year and will take effect 90 days later:    HB 5871 allows the transfer of medical marijuana from one facility to another, HB 5965 will update the license holder definition in the MMFLA, and, finally, HB 4266 prohibits the marijuana regulatory agency from denying an application for a license to commercially produce or distribute marijuana if the applicant’s spouse holds a state or federal government position. The spouse will be required to complete an attestation. The exemption doesn’t apply if the spouse’s position would create a conflict of interest or is involved with marijuana-related decision-making.  

No mention was made by the CRA regarding the potential pending changes that may be coming at the beginning of  2023 to the Administrative rules.  Some interesting insight coming out of the Consumer Connections Workgroup relates to the remediation of products and potential changes to labeling regarding this change.

Fiscal Year Starts With Slightly Lower Than Estimated General Fund
As reported by Gongwer, November revenues for the General Fund came in $59.9 million lower than estimates, the House Fiscal Agency said, marking a change in the trend of funding coming in higher than expectations for many months.

Most of the differential can be attributed to larger than expected income tax refunds, which HFA has detailed were coming in previous reports. The School Aid Fund was $119.6 million above estimates in November, HFA said.

In total, the state brought in $2.6 billion in November, $99.3 million more than in November 2021. November represents the first month of the fiscal year on a cash-collection basis, HFA noted.

Net income tax revenue totaled $868.9 million, which was $85.6 million less than a year ago. Net business tax revenue was $16.5 million lower than a year ago with higher Corporate Income Tax collections outweighed by more negative Michigan Business Tax amounts.

Sales tax, however, came in at $918.6 million, HFA said, marking the sixth consecutive month that sales tax has exceeded $900 million. Revenue from recreational marijuana came in at $12.2 million, which was also higher than a year ago by $9.3 million.


ARTICLES OF POLITICAL INTEREST:

Michigan Recounts That Won’t Change Election Outcomes Show Law Must Change

Michigan Hospitals Want Help Overcoming "Funding Crisis" Amid Staff Shortages

Judge Tosses Charges Against Snyder in Flint Water Water Case

Democrats May Pursue Universal Background Checks.  What the Research Says…

How Should Michigan Fund School Transportation? 


Marijuana News, Updates, & Articles of Interest

THE DCD MARIJUANA TEAM:  YOUR COMPETITIVE EDGE!

DCD continues to exist as the premier resource helping municipalities navigate the waters of cannabis policy. We would be more than happy to answer any questions you may have regarding medical or recreational cannabis policy, procedure, and more. DCD is available for presentations to municipal boards, for one-on-one meetings, and for consultations.

We are here to help you with: municipal lobbying, license application writing and assistance, business plans, state required operations manuals and compliance, facility design, corporate structure, and design and branding. 

We are experts in both medical and recreational cannabis policy and have been in the space for over ten years.  We welcome any opportunity to work with you in the future!


ARTICLES OF CANNABIS INTEREST:

Dispensary Removes Hemp Products From Stores After Illicit Marijuana Found at Site

Brian Hanna Named As Michigan CRA Executive Director

Consumers Rejoice as Retailers, Growers Balance Falling Marijuana Prices

Non-Regulated Marijuana Appearing at Michigan Dispensaries

Eau Claire County Supervisor Hopes to Legalize Marijuana in Wisconsin


Doing Things Differently

DCD is rebranding, and our bottom line is your bottom line. We are striving to create and foster strong relationships with clients and lawmakers, deliver results with strong ethics and class, but above all else, out-hustle and out-smart our competition every day to be the very best. We’re making chess moves while others are playing checkers. Everything we do is with you in mind, we’re doing things we’ve never done before and aggressively pursuing opportunities. The time is now. DCD has taken our firm to the next level and your involvement and investment paired with our knowledge and expertise is going to launch the great state of Michigan forward.

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