Overview of Cannabis Laws
Introduction
In the United States, cannabis laws vary significantly across federal, state, and local levels. As a result, cannabis is a complex landscape to navigate for businesses, law enforcement, and consumers.
1. Federal Cannabis Laws in the United States
Cannabis remains illegal under federal law in the U.S., as it is classified as a Schedule I controlled substance under the Controlled Substances Act (CSA). This classification indicates that cannabis is considered to have a high potential for abuse and no accepted medical use, and it is illegal to produce, distribute, or possess cannabis across the country. While cannabis is illegal at the federal level, the Rohrabacher-Farr Amendment, passed in 2014, provides certain protections for medical cannabis patients and providers. It prohibits the federal government from using funds to interfere with medical marijuana programs in states that have legalized cannabis. However, this protection does not extend to recreational cannabis or to the general legality of cannabis. Several proposed bills in Congress aim to address cannabis legalization at the federal level. One bill is the Cannabis Administration and Opportunity (CAO) Act, which removes cannabis from the Controlled Substances Act and ends its criminalization. The CAO Act also relies heavily on federal regulators and increased taxes on cannabis.
2. State-Level Cannabis Laws
States have the authority to create their own cannabis laws, leading to a patchwork of regulations. As of early 2025, 38 states and the District of Columbia have legalized medical and/or recreational cannabis for adults 21 and over.
2.1 Recreational Cannabis Legalization
States such California, Colorado, Oregon, and Michigan make up more mature adult use cannabis markets in the U.S. and have successfully implemented frameworks for recreational cannabis sales. These frameworks typically include provisions for:
- Licensing and regulation of cannabis businesses;
- Taxation of cannabis products; and
- Public safety measures to regulate cannabis consumption and distribution.
Each state establishes its own rules about possession limits, age restrictions, and the permissible locations for cannabis consumption. In many states, adult-use cannabis is subject to excise taxes, which are often significant, with tax rates varying widely across states.
2.2 Medical Cannabis Legalization
Medical cannabis programs generally require patients to be diagnosed with certain qualifying conditions, after which they may receive a recommendation from a licensed physician. Patients can then purchase cannabis products from state-licensed dispensaries.
3. Regulation and Enforcement
Cannabis laws are enforced at multiple levels of government, with varying standards depending on jurisdiction. Each state that has legalized cannabis establishes a regulatory body responsible for overseeing its legal cannabis industry. For example, the body in Michigan is called the Michigan Cannabis Regulatory Agency, and the one in New Jersey is called the New Jersey Cannabis Regulatory Commission. These agencies issue licenses to cannabis businesses, oversee product safety and labeling, and enforce rules around the production, distribution, and sale of cannabis.
Despite state legalization, the federal government has the authority to enforce federal cannabis laws. The Department of Justice (DOJ) and the Drug Enforcement Administration (DEA) technically retain the right to arrest and prosecute individuals for cannabis-related offenses, though enforcement has been deprioritized in states that have legalized cannabis.
4. Emerging Trends in Cannabis Laws
As cannabis legalization expands, new legal issues and trends are emerging. Cannabis businesses, due to federal illegality, often face difficulties in accessing banking services. Many banks are reluctant to offer services to cannabis businesses due to concerns about federal penalties. Efforts like the SAFE Banking Act aim to provide safe harbor for financial institutions to work with cannabis businesses without fear of federal prosecution.
Many states with legalized cannabis have introduced social equity programs to assist communities disproportionately affected by the War on Drugs. These programs often focus on providing access to the cannabis industry for people from historically marginalized communities, including through financial support, training, and reduced licensing fees.
Additionally, cannabis research has gained momentum, with increasing funding for scientific studies on the medical benefits and risks of cannabis use. The National Institute on Drug Abuse (NIDA) and other entities have begun to explore cannabis as a treatment for pain management, mental health conditions, and other medical conditions.
Cannabis Laws in Michigan
1. Recreational Cannabis Legalization
On December 6, 2018, Michigan voters approved the Michigan Regulation and Taxation of Marijuana Act (Proposal 1), which legalized the possession, use, and sale of cannabis for adult use. Michigan was the 10th state in the United States to legalize recreational cannabis.
1.1 Possession Limits
Under Michigan’s cannabis law, adults 21 years of age and older are allowed to possess:
- Up to 2.5 ounces (70.9 grams) of cannabis for personal use
- Up to 15 grams of cannabis concentrates
- Up to 12 cannabis plants for personal cultivation
1.2 Home Cultivation
The law also permits adults to cultivate their own cannabis at their private residence. Each household is permitted to grow up to 12 plants. Such cultivation must take place in a private space, and cannabis plants must not be visible to the public.
1.3 Public Consumption
Public consumption of cannabis is prohibited in Michigan. While adults can use cannabis at home, they are not allowed to smoke, vape, or consume cannabis in public places. Consumption is also banned in motor vehicles, even if a person is not driving.
1.4 Regulation and Licensing
The Michigan Cannabis Regulatory Agency (CRA) is responsible for overseeing the state’s recreational cannabis program. The CRA licenses and regulates cannabis businesses, ensuring that retail dispensaries, cultivation facilities, and manufacturing operations comply with state laws. Licensed businesses must meet strict operational standards for product safety, labeling, and security. Each jurisdiction within Michigan also has its own local laws, which can relate to zoning requirements, advertising, and hours of operation.
2. Medical Cannabis Legalization
Medical cannabis, on the other hand, has been legal in Michigan since 2008, following the passage of the Michigan Medical Marijuana Act (MMMA). This law allows patients with qualifying medical conditions to obtain and use medical cannabis for therapeutic purposes.
2.1 Qualifying Conditions
Michigan’s medical cannabis program allows patients with specific conditions to obtain a medical marijuana card, including those suffering from:
- Cancer
- Glaucoma
- Crohn’s disease
- HIV/AIDS
- Hepatitis C
- PTSD (Post-Traumatic Stress Disorder)
- Chronic pain
Patients must obtain a recommendation from a licensed physician to apply for a medical marijuana card. Once approved, they are granted access to medical cannabis dispensaries and can legally possess and cultivate cannabis for medicinal use.
2.2 Possession and Cultivation for Medical Use
Like recreational rules, medical patients are allowed to possess up to 2.5 ounces of usable cannabis and 12 plants for personal use, and these patients can cultivate cannabis for personal use but must do so in a secure, private location that is not visible to the public.
3. Regulatory Framework and Licensing
The CRA is tasked with overseeing both the recreational and medical cannabis markets in Michigan. The CRA enforces rules on the production, sale, and distribution of cannabis and cannabis products, ensuring that all transactions are conducted legally and safely.
3.1 Licensing for Cannabis Businesses
Cannabis businesses in Michigan must obtain licenses from the CRA to operate. There are several categories of licenses available, including:
- Retailer License: For businesses that sell cannabis products to consumers
- Cultivation License: For businesses that grow cannabis plants
- Processor License: For businesses that manufacture cannabis products, such as edibles or concentrates
- Microbusiness License: A more limited license for smaller operations, allowing cultivation, processing, and retail sales under a single license
The licensing process involves extensive background checks, operational compliance reviews, standard operating procedures, and fees.
3.2 State Taxes on Cannabis
Michigan imposes taxes on cannabis products, including an excise tax and a sales tax. Recreational cannabis sales are taxed at 10%. The revenue generated from this excise tax is directed toward funding various state programs, including road repair, education, and local government initiatives. In addition to the excise tax, cannabis products are subject to Michigan’s 6% sales tax.
4. Key Considerations and Challenges
While Michigan has established a robust regulatory framework, several key issues and challenges remain in the state’s cannabis market.
4.1 Social Equity Programs
In recent years, Michigan has taken steps to ensure that the cannabis industry benefits all residents, particularly those communities disproportionately impacted by the War on Drugs. The state has implemented social equity programs, which aim to provide opportunities for individuals from marginalized communities to enter the cannabis business. These programs include reduced licensing fees, grants, and training for aspiring cannabis entrepreneurs.
4.2 Local Ordinances and Restrictions
While the state has legalized both medical and recreational cannabis, local municipalities in Michigan have the right to regulate or ban cannabis businesses within their boundaries. Cities and counties can pass their own ordinances, restricting or prohibiting cannabis businesses, such as dispensaries or cultivation centers.
4.3 Cannabis and Employment
Employers in Michigan are still permitted to enforce zero-tolerance drug policies. While it is illegal for an employer to fire an employee for using cannabis in their private time, they are still allowed to terminate employees for using cannabis while at work or being impaired at work. Additionally, employees in safety-sensitive positions, such as transportation or manufacturing, may be subject to stricter regulations.
References
https://disa.com/marijuana-legality-by-state
https://norml.org/laws/michigan-penalties-2/
https://www.cdc.gov/cannabis/about/state-medical-cannabis-laws.html