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Michigan Senators Weigh Marijuana Regulatory Reform Bills To Aid Industry Reeling From New Tax Increase

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“Our members are calling on this commission to help our industry create market stability and advance thoughtful and collaborative industry planning.”

By Kyle Davidson, Michigan Advance

Almost two weeks after Michigan lawmakers took office Legislation that imposes a 24 percent tax on wholesale marijuanaMembers of the Senate Regulatory Affairs Committee heard testimony on several bills that committee chairman Jeremy Moss (D-Southfield) said were aimed at reducing the regulatory burden on the cannabis industry.

Two bills were considered Wednesday, one limiting the number of licenses for marijuana dealers and supply centers, and another aimed at cracking down on the sale of unregulated intoxicating hemp products, though Moss indicated there would be additional meetings on the bills in the future.

Sen. Sam Singh (D-East Lansing) unveiled the first package, the Senate Bills 597 and 598Starting Jan. 1, 2026, it would limit marijuana dealer licenses and wholesale licenses per 10,000 residents in a municipality, similar to how the state regulates liquor sales.

Singh said communities with a population of less than 10,000 would always have at least one license.

In addition, current license holders can renew their licenses or transfer them to another person.

Second set, Senate bills 599602It would create a regulatory framework for consumer hemp products in Michigan, Sen. Dayna Polehanki (D-Livonia) explained, citing that intoxicating products made from hemp, including Delta-8 and other synthetic cannabinoids, are being sold at Michigan gas stations, convenience stores and online without oversight or testing.

Both proposals received support from the Cannabis Regulatory Agency, which regulates Michigan’s adult cannabis industry, as well as support from several members of the state’s cannabis industry.

Derek Sova, the agency’s policy and legislative specialist, said one of the agency’s challenges is marijuana versus hemp, when debating whether a substance is intoxicating or not.

Hemp is commonly understood to be either a crop or a tissue, Sova explained, with both Michigan and the federal government’s definitions of hemp and marijuana allowing the unregulated sale of products containing high amounts of THC, the marijuana component primarily responsible for its intoxicating effect.

“Because of the way it’s defined, they’re considered hemp, and because of that, they’re not age-appropriate. There’s no testing requirement, like there is in Michigan with marijuana products. There’s no labeling restrictions,” Sova said.

In addition to establishing a regulatory framework for non-toxic consumable hemp products, such as CBD-infused gummies and intoxicating hemp products, Sova said the bill package would regulate the sale of non-consumable hemp, which is used to make textiles and building materials.

“Right now, under the current law, you have to get a license to do that, a license to sell that. We don’t think that should be regulated,” Sova said.

Robin Schneider, executive director of the Michigan Cannabis Industry Association, offered support for limiting licenses for marijuana suppliers and retailers, saying unlimited marijuana cultivation licenses have led to oversupply, lowered wholesale prices and harmed businesses throughout the supply chain.

Additionally, the proliferation of retail space has led to public nuisance concerns, traffic problems and community complaints, Schneider said.

“Our members are calling on this committee to help our industry create market stability and thoughtful, collaborative industry planning to make business decisions based on projections that at least include predictability,” Schneider said.

The association also supported the regulation of intoxicating hemp products, noting that these products are being shipped out of state to Michigan and are not being produced by Michigan hemp farmers.

“Not only have our hemp farmers been left out and harmed in many ways, current legislation does not allow them to manufacture hemp products for CBD-only consumption in Michigan,” Schneider said.

Kyleigh Cumming, lab director at Kairos Labs, a cannabis testing lab, told committee members that the 2018 farm bill defining hemp created a loophole that allowed CBD to be converted into THC-like compounds.

“These conversion processes create many dangerous and unknown byproducts along the way, while allowing the resulting products to be labeled as hemp-derived and sold in Michigan as an unregulated intoxicant,” Cumming said.

In a study of 15 vape products purchased in various southeast Michigan communities, Cumming said the products had no lab test results or traceability, and when purchasing the products, no one asked for ID to verify age. When the products were tested, the lab found 15 contaminants, and all 15 samples detected the THC levels of 0.3 percent set by the federal government.

While offering support for additional regulations on hemp products, City of Detroit cannabis director Kimberly James called for more teeth in the bill to allow local governments to take action when intoxicating hemp products are sold in unlicensed locations.

“(The Cannabis Regulatory Agency) does not currently enforce violations of the (Michigan Regulation and Marijuana Tax Act) against non-licensees, and I would not expect them to enforce violations of this act against anyone who is not a licensed consumer hemp processor,” James said. “Local governments should have the authority to stop this practice immediately when the products are in a regular store and explicitly state that they contain THC.”

Polehanki promised to work with James to make sure those changes were made, saying the legislation “isn’t good unless we take these products off the market.”

Blain Becktold, founder of iHemp Michigan, which represents hemp farmers, manufacturers and businesses across the state, said the group’s members supported denying or limiting the sale of products that could be harmful to purchase or consumption, but he refused to define hemp as hemp with less than 0.3 percent THC, pointing to a federal push to increase the 1 percent to 1 percent.

“That’s not to make more toxic products. That’s really for the safety of growers and farmers. If they invest that time, money and effort into farming, and it warms over .3, they’ve lost all of that. 1 percent we wouldn’t have that problem,” Becktold said.

Cassin Coleman of Cannabis Consumer Advocacy also expressed concern about the proposed regulations, noting that limiting THC in non-intoxicating hemp products would limit access to certain products that individuals use for medical purposes.

“As is often the case, the products that patients use consistently, which are CBD products, contain THC,” Coleman said, noting that these products contain THC because they are “full spectrum,” meaning they contain the full range of compounds that occur in the cannabis plant.

Trying to remove or limit the amount of THC in these products would remove other important cannabinoids, plant proteins and antioxidants, Coleman said, warning that these products could be ineffective.

This story was first published by the Michigan Advance.

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CEA Awards handed out at Indoor Ag-Con

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A new tradition in the CEA industry is the annual Gala Luncheon at Indoor Ag-Con, presenting the CEAs — Cultivating Excellence Awards. This year, Jiffy won the Product Innovation award for its gel, and Bright Farms won the Operational Excellence award. The Trainblazer Award was presented to Dr. Gene Fiacomelli, who has dedicated much of his professional and personal life to furthering the cause of growers.

© Eelkje Pulley | MMJDaily.com

© Eelkje Pulley | MMJDaily.com

“These teams are setting the pace for controlled environment agriculture while pushing the boundaries in innovation, operations and product development while proving what’s possible in our industry right now,” said organizers Indoor Ag-Con and Inside Grower Magazine.

The awards program is designed to recognize and celebrate excellence, innovation and leadership in the controlled environment agriculture (CEA) sector, highlighting achievements in three categories: Operational Excellence, Product Innovation and a special Trailblazer Award.

© Eelkje Pulley | MMJDaily.com

Voltiris and Zayndu were nominated for the Product Innovation Award, but Jiffy won for Jiffy Gel, a biodegradable gel-based substrate specifically designed for controlled environment agriculture (CEA).

© Eelkje Pulley | MMJDaily.com

The nominees for the Operational Excellence Award were haven greens and Planet Farms, and Bright Farms ended up winning. In their words: “BrightFarms measures its success through operational expansion and measurable business results.”

© Eelkje Pulley | MMJDaily.com

For the Trailblazer award, there were no nominees, but there was a winner. “In our industry there are those who explore the unexplored, ask the questions that no one else asks and push the boundaries of what is possible,” said the organizers. “The Trailblazer Award recognizes those who are not afraid to challenge the status quo and push research and CEA application into new areas.” And that’s Dr. Gene Fiacomelli. Since the beginning of the 80s, his research interests include the research, design, development and applications of controlled environment plant production systems (greenhouse and growth chamber): crop production systems, nutrient supply systems, environmental control, mechanization and labor productivity.

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Colorado Marijuana Revenue Is Declining As Other States Legalize, But It Still Outpaces Alcohol Taxes, Report Shows

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Marijuana sales tax revenue has steadily declined in Colorado over the past five years as more states have implemented legalization and intoxicating hemp products have grown in popularity, state officials say in a new report. However, cannabis brings in more tax dollars than alcohol or cigarettes.

In a memo to the nonpartisan Legislative Council of the Colorado legislature, staff “wanted to answer common questions about how marijuana industry revenues fit into Colorado’s state budget.” That includes $231.1 million in cannabis collected by the state in fiscal year 2024-25.

Adult marijuana is taxed at three levels in Colorado: a 15 percent excise tax, a 15 percent sales excise tax, and a 2.9 percent general state sales tax. As one of the first states to legalize recreational marijuana, Colorado’s revenue from such sales “grew steadily over the first eight years of legalization, reaching $424.4 million in FY 2020-21.”

After that, however, “revenues fell for the first time in 2021-22, and have declined every year,” the Legislative Council said. “Marijuana tax revenue fell to $231.1 million in FY 2024-25, 45.5 percent below the peak in FY 2020-21.”

It is remarkable notice He says the decline in marijuana tax revenue in recent years “has been largely due to low prices and a drop in demand as other states across the country legalize marijuana, and alternatives like intoxicating hemp become more available.”

Gov. Jared Polis (D), a longtime champion of cannabis reform, noted the potential economic impact of expanding legalization, He hoped states like Texas would continue to stave off the problem by scoffing so Colorado could continue to collect marijuana tourism dollars.

Texas may remain a prohibitionist state, but cannabis is now legal for adults in almost half of US states, a broader shift. has obviously contributed to the decrease in income.

But the new report also says the rise of intoxicating hemp products is diverting tax dollars. Whether the federal ban on such products changes when it takes effect in November remains to be seen.

Even as statewide legalization expanded and consumer demand increased in the hemp market, however, the Legislative Council released data comparing marijuana to other vices, including alcohol and cigarettes.

In fiscal year 2024-25, marijuana sales generated more tax revenue than alcohol ($54.3 million), tobacco products ($68.2 million), nicotine products ($91.6 million) and cigarettes ($213.9 million).

through LCS.

Until then, surveys have consistently found this More and more Americans are choosing marijuana and cannabis-infused drinks over alcohol and cigarettes.

Meanwhile, only in 2025, Colorado saw more than $1 billion in marijuana sales, a milestone the governor announced in December. And while the Legislative Council attributed part of the decline in cannabis sales to the sale of intoxicating hemp products, Polis also said recently. The pending federal ban will “stifle growth and innovation” in the market.


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Meanwhile, the governor said that last week his state did not have to join a lawsuit supporting a federal ban on the possession of guns by people who use marijuana that’s now before the US Supreme Court, and he personally opposes the state attorney general’s “legal position on it.”

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Large Dutch greenhouse grower turns energy volatility into opportunity

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Volatility in energy prices continues to affect greenhouse gas producers across Europe, as the growing share of renewable energy and developments in electricity markets lead to stronger and more frequent price increases. For a large Dutch greenhouse grower, this challenge became the starting point for a more flexible and efficient approach to lighting management.

Like many high-intensity greenhouse operations in the Netherlands, the business faced rising electricity costs and major surprises while requiring precise light control to maintain consistent crop quality throughout the year.

To meet these challenges, the manufacturer implemented the Netvion intelligent control system. The solution enables real-time control of light intensity and spectrum without the need to rewire or make major changes to the existing greenhouse infrastructure.

© Netvion

Responding to extreme electricity prices
Electricity prices in the Netherlands have shown considerable volatility in recent years, ranging from negative prices during periods of renewable overproduction to sharp peaks in demand. “Traditional wired lighting systems offer limited flexibility to respond to rapid price changes,” says Sharan Avati with Netvion. “This often results in inefficient energy use and higher operational costs.”

With Netvion’s system, the grower can dynamically adjust lighting levels based on real-time electricity prices. During high price periods, light intensity is reduced to the minimum level required for crop development. When prices are low or negative, lighting levels can be increased to support plant growth, taking advantage of favorable market conditions.

© Netvion

Improve crop yield through clear precision
High-value greenhouse crops require precise control of light intensity at different growth stages. Using Netvion’s multi-channel lighting control, the manufacturer fine-tuned light levels from 30 µmol/m²/s at high prices to 200 µmol/m²/s when energy costs were low.

This level of precision optimized energy consumption while maintaining consistent crop quality. Instead of increasing stem length, the cultivar saw a measurable increase in crop weight, reporting 3-7% heavier crops, depending on crop type and growing conditions.

According to the grower, this improvement was driven by better alignment of light levels to plant needs during favorable energy price windows, without overstressing the crop during high-cost periods.

© Netvion

Fast financial impact through the fast energy manager
The financial impact of the wireless lighting system was very dynamic. With a capacity of 3 MW to connect to the grid (“knip”), the producer uses Netvion to respond quickly to fluctuations in electricity prices.

© Netvion In practice, correcting lighting levels allows growers to recover approximately 20-30% of their total daily energy costs in 15 minutes under extreme market conditions.
Depending on electricity prices, it can be worth up to 1,500 euros received in a single 15-minute window, shares Sharan. “This emphasizes the importance of real-time control speed rather than fixed hourly savings.”

“Combined with the reduced installation and maintenance costs enabled by the wireless infrastructure, the system provided a strong business case and approximately a two-year return on investment, while also reducing cabling, labor requirements and overall system complexity.”

© Netvion

Easy integration into existing greenhouses
Although Netvion is designed to integrate with existing climate control platforms, this manufacturer followed a different approach. Instead of using a standard third-party climate computer, the company developed custom in-house software to handle the control logic and system connections.

Netvion’s open and flexible architecture enabled integration with this custom-built platform, allowing the producer to implement their own advanced control strategies, taking advantage of wireless high-resolution lighting.

Sharan: “For other greenhouse operations using commercial climate control systems, integration can be easier. This case demonstrates that Netvion supports both standard integration and highly customized control environments based on the grower’s operational configuration.”

© Netvion

For more information:
Netvion
+31 613921828
(email protected)
www.netvion.io

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