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Michigan Lawmakers Take Up Bill To Cap Marijuana Business Licenses As Industry Reels From Tax Increase

“We are doing our best to create the right regulatory scheme to be able to adequately enforce the market.”

By Ben Solis, Michigan Advance

The Michigan Senate is refocusing its marijuana industry license cap legislation to include new barriers to obtaining a license for growers, processors or dispensary operators with outstanding industry-related tax debt—a move that would help shore up the industry as it deals with a new 24 percent wholesale tax.

The Michigan Senate Regulatory Affairs Committee on Wednesday heard a second round of testimony on recent changes to Senate Bill 597, a bill proposing new caps on state marijuana industry licenses. The hearing comes nearly a year after the bill was introduced and was the subject of a first hearing in October 2025.

Sponsored by Sen. Sam Singh (D-East Lansing), SB 597 would cap licenses for marijuana retailers and wholesalers to one license per 10,000 residents in a municipality beginning January 1, 2026. The move would be similar to how the state regulates liquor sales, Singh said last year.

SB 597 is also part of a larger package. Senate Bills 599602 aim to create a regulatory framework for consumable hemp products in Michigan. That portion was mainly sponsored by Sen.

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