Partnership Over Punishment: Reimagining Cannabis Regulation in Michigan
Enforcement alone isn’t killing Michigan’s cannabis industry — but in today’s oversupplied, marginless market, it’s making things worse. We're asking for enforcement that’s proportional, consistent, and rooted in reality.
The Problem with a Punitive-First Approach
Punishment alone won’t collapse Michigan’s cannabis industry — but in a broken market, it makes survival even harder. The CRA is operating under a legal framework not designed for today’s conditions, leading to aggressive enforcement without discretion that compounds pressure on compliant operators.
As Executive Director Brian Hanna told the Senate in April 2025, the agency’s hands are tied.
Restoring sustainable margins would allow the CRA to focus less on volume and more on impact — enforcing violations that actually matter, with penalties that make sense.
Last year, Michigan issued
37%
of all cannabis-related violations in the USA, totaling
$3.72 Million
in fines.
Disproportionate Penalties
Minor violations are penalized with the same intensity as serious public safety threats, burdening good-faith operators.
Resource Diversion
Operators must divert limited resources to defending against low-impact infractions instead of focusing on growth and compliance.
Eroding Trust
Trust between licensees and regulators erodes, making proactive compliance and open communication even harder.
Adversarial System
The result is a strained system where enforcement feels adversarial, even when both sides ultimately want a stable market.
The Path Forward: Regulation That Works
Michigan doesn’t need less regulation — it needs smarter regulation. This means shifting the CRA’s focus from punishment-first to partnership-driven enforcement that aligns with real risks, real violations, and real-world business pressures.
This approach should prioritize:
Impact-Based Enforcement
Focus on violations that threaten public health, product integrity, or the legitimacy of the regulated system — not paperwork mistakes or clerical errors.
Proportional Discipline
Design penalty structures that scale based on severity, frequency, and intent — with room for correction before punishment where appropriate.
Transparent and Consistent Rules
Maintain clarity and consistency in expectations, and update rules as market conditions evolve to reflect industry realities.
Ongoing Dialogue with Licensees
Institutionalize feedback mechanisms to catch regulatory blind spots and surface unintended consequences early, fostering collaboration.
“Education Before Enforcement” — with Substance
Return to this motto, focusing on high-risk issues like diversion and testing fraud, rather than minor administrative errors. The philosophy is sound; the priorities must align with real risks.
Enforcement still plays a critical role. But if regulation doesn’t evolve with the market, it becomes a barrier — not a safeguard.
MCC’s Position & Call to Action
The Michigan Cannabis Coalition (MCC) supports a regulated cannabis market that upholds safety, compliance, and accountability — but only if the regulatory model is designed to succeed.
Punishment cannot be the primary tool in an industry this unstable. Operators are not failing because of bad intent — they’re failing because of bad conditions: oversupply, falling prices, limited enforcement discretion, and outdated rule priorities.
We believe the CRA needs legislative support, staffing, and strategic clarity — and the market needs room to breathe. Compliance should be rewarded, not buried under enforcement that does little to protect consumers or stabilize the system.
Our Priorities:
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Market stabilization first, so enforcement happens in an environment where success is possible.
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Proportional, impact-based enforcement that targets violations with real risk.
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A return to meaningful education, focused on high-risk operational issues.
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Collaborative regulation, where licensees are treated as partners, not presumed violators.
Take Action Now:
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Operators and stakeholders: Join MCC to advocate for a smarter, more collaborative regulatory framework.
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Policymakers: Support structural reforms that allow the CRA to target real risks and foster an environment where compliance and success are both achievable.
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Learn more and get involved at joinmcc.org
