HB 7.1.2021 FINAL

The Hastings Banner — Thursday, July 1, 2021 — Page 5

Michigan’s licensed cannabis industry wants bigger piece of $3.2 billion market

Bridge Magazine
Michigan’s legal cannabis market nearly
reached $1 billion in sales last year, but the
industry says that most marijuana customers
in the state still don’t buy through legal chan-
nels.
About $3.2 billion in cannabis was sold in
Michigan in 2020, according to a new report

by the Anderson Economic Group for the

Michigan Cannabis Manufacturer’s

Association, an industry trade group.

That leaves 70 percent of buyers still turn-

ing to illegal or “off the books” transactions,

according to the report that offered a first

glimpse into the state’s cannabis market 18

months after recreational marijuana has been

available to purchase in the state.

The report also showed that an estimated

one in five Michiganders, or 2 million people,

used marijuana in 2020, a 75-percent increase

from 2010.

The MCMA said Michigan can consider

cannabis an untapped source of revenue for

the state and its local communities. At the

same time, the group’s web page notes that it

has a goal of “reining in” sales that don’t go

through its members and other licensed pro-

viders.

Shelly Edgerton, chairwoman of the

MCMA board, said the marijuana market-

place “has unlimited economic potential for

Michigan.”

“The bottom line is Michigan loves canna-

bis, and that’s indicated in this study,”

Edgerton said.

Cannabis dispensary sales of almost $

billion in 2020 produced nearly $130 million

in taxes and fees, according to the report. Both

medical and recreational marijuana are sub-

ject to a 6 percent sales tax, and a 10 percent

excise tax also is applied to recreational can-

nabis purchases.

Using marijuana for medical purposes has

been legal in Michigan since 2008.

Recreational cannabis was legalized in the

state in 2018 via a direct ballot proposal and

first became available to purchase for adults

21 and up in December 2019. Eighteen states

have legalized marijuana, and 11 have dispen-

saries selling cannabis for adult use.

The unregulated market includes marijuana

that is provided by caregivers, grown in a

home, or purchased illicitly. These sources of

cannabis are not subject to the same taxes and

fees that residents have to pay in a dispensary,

and they also do not have the same testing and

safety checks applied to them.

While growing limited quantities of mari-

juana in a home is permissible under Michigan

law, distributing marijuana without a license

is considered a felony and can lead to fines

and criminal charges.

The study did not provide a breakdown of

the exact percentages for each unregulated

source of cannabis in Michigan.

While the MCMA said it did not have any

policy recommendations to provide based on

the findings of the report, Steve Linder, exec-

utive director of the MCMA, has been push-

ing for all marijuana distribution in the state to

happen through the regulated market so it can

be tested and taxed.

However, caregivers have expressed con-

cerns about the potential for increased regula-

tions — at the urging of corporate growers

and distributors — limiting their right to

grow cannabis for medical distribution.

Paul Armentano, deputy director of the

National Organization for the Reform of

Marijuana Laws (NORML), said there are

several reasons why consumers purchase can-

nabis from illicit sources, noting that it may

involve price, access or someone under the

legal age.

States also can allow local communities to

ban sales of marijuana and can make taxes

and fees more expensive, potentially making

it easier to purchase marijuana from an illicit

source.

For Michigan, having recently legalized

marijuana for adult use, the huge market size

of illicit cannabis remains unsurprising,

Armentano said.

Demand for cannabis usually starts out

high once it is legalized in a state, driving up

prices for the product, he added. But, as sup-

ply of the product increases and the official

markets develop, prices can decline, which

can incentivize consumers to pursue legal

avenues for cannabis.

In December 2019, when sales first started,

the price per ounce of recreational marijuana

was $516.21 and the price per ounce of medi-

cal marijuana was $267.30 per ounce, accord-

ing to the Marijuana Regulatory Agency.

In May 2021, recreational cannabis was

sold at an average retail price of $221.21 per

ounce, and medical cannabis was sold at

$197.68 per ounce.

“The illicit market is disrupted by the legal

market, and the legal market begins to over-

take the illicit market over time,” Armentano

said. “As the legal market becomes more

mature and more evolved, people begin to

gravitate toward it more. ...This isn’t going to

happen overnight.”

from our readers

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GUEST COMMENTARY

Michigan Legislature

Governor Gretchen Whitmer, Democrat, P.O. Box 30013, Lansing, Mich. 48909.

Phone (517) 373-3400; 517-335-7858 (Constituent Services).

State Representative Julie Calley, Republican, 87th District (All of Barry County),

Michigan House of Representatives, N-1191 House Office Building, Lansing, MI

48933. Phone (517) 373-0842. e-mail: [email protected]
       State Senator Dr. John Bizon, Republican, 19th District State Senate, Phone 517-
       373-2426 or toll-free, 855-347-8019. Email: [email protected]; U.S.
       mail: Sen. Dr. John Bizon, P.O. Box 30036, Lansing MI 48909.

U.S. House of Representatives

Peter Meijer, Republican, 3rd District (All of Barry County), 1508 Longworth House

Office Building, Washington, D.C. 20515-2203, phone (202) 225-3831, fax (202) 225-

5144. District office: 110 Michigan Street NW, Suite 460, Grand Rapids, Mich. 49503,
      phone (616) 451-8383.

U.S. Senate

Debbie Stabenow, Democrat, 702 Hart Senate Office Building, Washington, D.C.

20510, phone (202) 224-4822.

Gary Peters, Democrat, 2 Russell Senate Office Building, Washington, D.C. 20510-

2202, phone (248) 799-0850. District office: Gerald R. Ford Federal Building, Room

720, 110 Michigan Street NW, Grand Rapids, Mich. 49503-2313, phone (616) 233-

9150.

President’s comment line: 1-202-456-1111. Capitol Information line for Congress

and the Senate: 1-202-224-3121.

Know Your Legislators:

Area Locations to purchase the Hastings Banner!

Hastings:

One Stop Shop (Marathon)

(M-43 North)

Superette

Family Fare

Tom's Market

Hastings Johnny's

The General Store

Marathon

Mega Bev

Hastings Pharmacy

Marathon Gas Station

(M-37 West)

Marathon Gas Station

(M-37 South)

Family Fare Gas Station

Walgreens

Middleville:

Speedway

Harding's

Greg’s Get-It-N-Go

Middleville Johnny's

Gun Lake:

Sam’s Gourmet Foods

Orangeville:

Orangeville Fast Stop

Pine Lake:

Doster Country Store

Prairieville:

Prairieville Fast Stop

Cloverdale:

Cloverdale General

Brown’s Cedar Creek Grocery

Shelbyville:

Town & Country

Delton:

Family Fare

Delton Johnny's

Banfield:

Banfield General Store

Dowling:

Goldsworthys

Woodland:

Woodland Express

Nashville:

Trading Post

Little’s Country Store

Nashville Johnny's

MV Pharmacy

Nashville C Store

Carl’s

Lake Odessa:

Lake-O-Express

Lake-O-Mart

Lake Odessa Johnny's

Carl’s

Freeport:

L & J’s

Reckoning with our past

is necessary for our future

To the editor:

I write in response to Fred Jacobs’s editorial

in last week’s The Banner. He criticized

President Biden’s June 1 comments regarding

the anniversary of the 1921 Tulsa race riots.

He considers these remarks an example of

“the kind of discourse that will continue to

“divide us.”

It appears that Mr. Jacobs believes that, for

America to be “unified,” we must ignore the

errors of the past and present in the name of

“patriotism” and “unity.” But true patriotism

must be honest and not gloss over the bad

stuff.

Ask yourself these questions: When you

were studying American history, did you ever

learn about the 1921 Tulsa race riots? How

about the 1898 Wilmington insurrection, in

which legally elected African-American

officials were deposed by a white mob and

run out of town?

How many of us know that African-

American wealth in 2021 pales in comparison

to white American wealth, and are ignorant of

the reasons behind this fact? How many of us

realize that displaying a Confederate flag is

not an expression of freedom, but a symbol of

racism and treason? How many of us really

understand that racism is literally written into

our Constitution? (Read Article I, Section 2.)

Is ignorance bliss? Is it better for us to

pretend that everything is OK now and never

deal with these issues? I, for one, don’t think

so. America would be wise to learn the

lessons of Germany. What did they do after

World War II? Did they pretend that the Nazi

era never existed or that “all of that is in the

past and we should now just move on?” No,

they now teach young people about the sins of

the past, not to wallow in them, but to learn so

that these errors will not be repeated. We must

take a similar approach to our American

history of racism.

Far too many people today want to just

sweep all of this under the rug and move on

like everything is fine; that racism is only in

the past. Few of us are overtly racist in our

thoughts and actions. It is tempting for us to

conclude that racism is something of the past.

It is not. In fact, racism is so embedded in our

society that we are frequently unaware of it.

Pretending that it is no longer an issue to

confront will only get our country into deeper

trouble. We can never be “unified” until this

reckoning with our past happens.

Yes, I strongly believe that America is the

best idea of a country in all of history, but that

does not mean we are perfect and not in need

of correction. I think back to the days of the

Vietnam war, when protests and

demonstrations threatened our national unity.

Some hard-liners preached “My country, right

or wrong.” I found that notion to be ludicrous

back then – and I still do now.

True patriots want their country to be true

to its founding principles – and to be honest

about when we have failed. Healthy patriotism

means that we love our country so much that

we must strive to correct for our past, as well

as current, sins.

And we can’t correct our country until we

confess our wrongs and deal with them

equitably.

Ed Szumowski,

Hastings

Emergency services funding

needs to be a priority

Editor’s Note: Hastings Charter Township

Supervisor Jim Brown presented this letter to

Hastings City Council Monday. We share it

with readers here.

The building that houses the equipment of

the Baltimore, Irving, Rutland, Carlton and

Hastings townships (BIRCH) Fire Association

and the City of Hastings has done a good job

for more than 55 years.

To continue to serve this function, it needs

a physical addition and improvements relative

to the present-day situation, which has

changed dramatically over recent years.

Unlike the “old days,” 85 percent of all

emergency calls are not structure-fire related.

The vast majority of calls are people-relat-

ed – such as car accidents, sports, recreation,

job accidents, and personal health situations.

The use of fire equipment and personnel is

sometimes used in these situations, but actual

fires are only 15 percent of the total in this

modern time.

Two years ago, it was decided to get serious

again about the possibility of upgrading the

present fire station. The City of Hastings,

BIRCH, and Mercy Ambulance hired Amy

Meeker, a registered local architect, to design

a structure that would make use of the exist-

ing building with additional new space added

that would serve the community for the next

55 years.

The design cost of $3,000 was equally

divided among the three partners. A lot of

time, discussion, and related experience went

into this design phase.

The initial estimate of cost came to $1.

million, which is very reasonable to justify

proceeding to a final figure.

The medical life support partner in this

long-range plan, Mercy Ambulance, has faith-

fully served our community for more than 45

years, and wants to continue for many more.

The project is now at a very important time

in this ever-changing environment regarding

emergency services. Although a building is

not the only cost ingredient in the mix, it is

very important and necessary to house the

people, equipment and other resources to get

this ever-changing life-and-death job done.

I would like to suggest that the Hastings

City Council appoint one or two interested

council members to join our planning group

and help take the project to the point where

final action can take place.

It’s decision time.

Jim Brown, Chairman

BIRCH Fire Association

Incentivize return to work

Peter Meijer

It is hard to believe we are halfway through

2021.

This has been a challenging year, to say the

least, as we have continued navigating the

devastating COVID-19 pandemic, but we can

see the light at the end of the tunnel at last.

Summer is in full swing, 45.5 percent of

Michiganders have been vaccinated, and

many people are traveling again – reuniting

with family and friends as life moves steadily

back to normalcy.

I feel a sense of relief that the worst of the

pandemic is behind us, and I hope you feel the

optimism, too. We have certainly come a long

way since this time last summer.

Across the country, mask mandates have

eased, restrictions are being lifted, and most

states have returned to business as usual –

many with no restrictions at all. Nearly our

entire country will be fully reopened, with a

few restrictions in some places, by the Fourth

of July.

Normal life has resumed for many of us,

but we cannot say the same for our economy

as we continue to battle a crippling labor

shortage. While the May jobs report was bet-

ter than April’s, it still paints quite a bleak

picture. We added fewer jobs than experts

predicted, and the labor force shrank by

53,000 workers.

Despite our otherwise strong rebound from

COVID-19, there are roughly 3.5 million

fewer people in the workforce compared to

February of 2020.

I hear from employers across West

Michigan nearly every day about this labor

supply problem that is forcing businesses of

all sizes to either reduce hours or close entire-

ly because they cannot find willing employ-

ees.

The reason for this is no mystery: the Biden

Administration’s ongoing enhanced federal

unemployment benefits allow a third of work-

ers to earn more unemployed than they would

employed.

We absolutely must tailor these expansive

unemployment benefits and stop incentivizing

Americans to stay home.

That’s why I recently joined a couple of my

colleagues in introducing the Strengthening

Unemployment Programs to Provide

Opportunities for Recovery and Training

(SUPPORT) for New Workers Act.

This bipartisan legislation would incentiv-

ize return to work by providing individuals

who have become employed after previously

receiving unemployment benefits with week-

ly payments of $180 – 60 percent of their

previous $300 per week Federal Pandemic

Unemployment Compensation.

The payments would begin at the start of

their employment and continue until the expi-

ration of the enhanced benefits on Sept. 6,

2021, totaling a maximum of nine possible

weeks. The legislation also requires that indi-

viduals who receive payments, but then quit

their jobs voluntarily within six weeks for

non-COVID-19 related reasons pay back their

received payments as a condition of becoming

eligible for a state or federal unemployment

program.

You may recall last month I led Michigan

delegation Republicans in calling on Gov.

Gretchen Whitmer to end our state’s participa-

tion in these federal unemployment benefits

altogether. Thus far, she has not acted.

Doing something is better than doing noth-

ing, which is why I joined this legislative

effort to reduce unemployment payments and

incentivize Americans to get back to work.

If we do not take action now, our economy

will continue to remain crippled by our labor

shortages. Rest assured I will continue doing

everything I can to unleash our economy and

strengthen our workforce.

U.S. Rep. Peter Meijer, R-Grand Rapids,

represents Michigan’s Third Congressional

District. He lives in Grand Rapids with his

wife Gabriela.

Call 269-945-

for Hastings

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