Closing the Loopholes: Why Michigan Must Reinforce Hemp Regulations
Bad actors are exploiting gaps in hemp regulation to sell intoxicating products outside the licensed system, threatening public safety, confusing consumers, and undercutting compliant cannabis operators.
The Problem: Hemp-Derived THC Is Operating Outside the Law
Michigan's 2018 legalization framework intended for hemp to coexist with regulated cannabis. However, a critical loophole allows many intoxicating products to bypass essential oversight.
Michigan law defines hemp as cannabis with 0.3% or less delta-9 THC, and anything above that as regulated cannabis. But many intoxicating products — like Delta-8 THC, HHC, and THCa are synthesized from hemp-derived CBD and sold without licenses, testing, or tax obligations.
Despite their psychoactive effects, these products are marketed as legal hemp. They're sold online, in gas stations, and at unlicensed storefronts — often without age checks, safety warnings, or dosage controls. Meanwhile, legal cannabis operators are burdened with strict compliance costs and price compression.
This is not a hemp vs. cannabis issue. It’s a loophole issue — and Michigan consumers and licensed operators are paying the price.
Understanding the Nuances: Hemp, Cannabis, and Cannabinoids
This section clarifies the legal distinctions and chemical differences that create the current regulatory challenge. Explore the definitions and the various types of THC-like compounds.
Hemp
Any cannabis with ≤0.3% delta-9 THC by dry weight. Intended for industrial uses, CBD products, and non-intoxicating applications.
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Low Delta-9 THC
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Industrial & CBD Focus
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Less Regulatory Oversight (originally)
Regulated Cannabis (Marijuana)
Includes any product above 0.3% delta-9 THC, subject to full state licensing, testing, and sales through CRA-approved facilities.
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Higher Delta-9 THC
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Psychoactive Focus
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Strict Regulatory Oversight
What Are Delta-9, Delta-8, and Other Types of THC?
Understanding the chemistry behind these cannabinoids is key to understanding the risk. Click to learn more about each type.
The primary natural intoxicant in traditional cannabis.
Found in meaningful quantities in marijuana flower.
Subject to full regulatory oversight.
A synthetic isomer made by chemically converting CBD from hemp.
Produces a mild high, but is not naturally abundant in the plant.
How it’s made:
- Start with hemp-derived CBD isolate.
- Add solvents like toluene or heptane, and acids like sulfuric acid or boron trifluoride.
- Heat and stir to isomerize the CBD into delta-8 THC.
- Neutralize and distill the product — though many producers skip proper purification.
Without oversight, residual solvents, unknown byproducts, and synthetic contaminants often remain in the final product.
A non-intoxicating precursor to delta-9 THC.
Becomes psychoactive when heated — such as in smoking or vaping.
High-THCa flower is sometimes sold as “hemp,” despite clearly functioning like regulated cannabis in practice.
Chemically modified compounds with THC-like effects.
Almost entirely synthetic, untested, and unregulated.
Marketed as “legal” without CRA review or control.
Why This Matters: Risk to Consumers and the Licensed Market
Allowing intoxicating hemp-derived products to bypass the regulated system causes major harm across multiple critical areas.
Consumer Safety Compromised
Products may contain residual chemicals, unknown contaminants, or misleading labels. Consumers assume safety, but there are no guarantees without testing or CRA oversight.
Regulated Operators Undercut
Licensed products bear the cost of testing, tracking, taxes, and compliance. Unregulated hemp-derived THC products avoid those costs entirely, distorting market dynamics.
State Tax Revenue Lost
When psychoactive products are sold outside the system, Michigan collects no excise tax and cannot ensure product integrity, leading to significant lost revenue.
Public Trust Eroded
Consumers cannot tell the difference between safe, legal cannabis and synthetic lookalikes. That undermines confidence in the entire regulated system.
The Solution: Commonsense Regulatory Reforms
Michigan must close the loopholes and reassert the original intent of its cannabis laws: to ensure that all intoxicating cannabinoid products are subject to testing, transparency, and regulation. MCC recommends:
Classify all intoxicating cannabinoids as regulated cannabis
Whether it’s delta-8, HHC, THCa, or future isomers — if it gets you high, it belongs under CRA oversight.
Require licensing and taxation for all sales of psychoactive THC
These products should only be available in licensed dispensaries, subject to the same rules as other cannabis products.
Mandate testing for synthetic cannabinoids and byproducts
Include these compounds in lab assays and require recalls for unsafe results.
Publish clear THC thresholds and testing protocols
Define what’s allowed, how it’s measured, and ensure consistent enforcement.
Improve labeling, consumer education, and age-gating
Products should never be sold to minors, and consumers should know what they’re ingesting — including source material and conversion method.
MCC’s Position & Call to Action
The Michigan Cannabis Coalition (MCC) strongly supports closing hemp loopholes that put consumers at risk and destabilize the licensed cannabis market.
Our Priorities:
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Protect consumers through testing and transparency
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Level the playing field for licensed operators
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Ensure CRA has the tools to enforce rules fairly
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Clarify what’s legal — and what’s not
Take Action Now:
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Operators and licensees: Join MCC in advocating for updated hemp regulations that protect public health and market fairness.
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Policymakers: Support clear rules that ensure only tested, regulated products reach Michigan consumers.
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Learn more and get involved by joining the MCC
