2023 Senate Bill 179 / Public Act 165

Marihuana: taxation; marihuana tax revenue; allocate to Indian tribes under certain circumstances.

An act to amend 2018 IL 1, entitled “An initiation of legislation to allow under state law the personal possession and use of marihuana by persons 21 years of age or older; to provide for the lawful cultivation and sale of marihuana and industrial hemp by persons 21 years of age or older; to permit the taxation of revenue derived from commercial marihuana facilities; to permit the promulgation of administrative rules; and to prescribe certain penalties for violations of this act. If not enacted by the Michigan State Legislature in accordance with the Michigan Constitution of 1963, the proposed legislation is to be voted on at the General Election, November 6, 2018,” by amending section 14 (MCL 333.27964).

House Fiscal Agency Analysis

Senate Bills 179 and 180 would amend the Michigan Regulation and Taxation of Marihuana Act, which regulates the adult recreational marijuana market, to do all of the following: • Allow the Cannabis Regulatory Agency (CRA) to enter into an agreement with an Indian tribe regarding marijuana-related regulatory matters. (SB 180) • Exempt sales of marijuana by tribal businesses located in Indian lands from the state’s 10% excise tax if certain conditions are met. (SB 180) • Prohibit certain individuals from having a pecuniary interest in a tribal marijuana business. (SB 180) • Provide that transportation of marijuana by a licensee to or from a tribal marijuana business is not unlawful. (SB 180) • Allocate a portion of the unexpended balance of the Marihuana Regulation Fund to an Indian tribe for certain sales of marijuana attributable to a marijuana retailer or microbusiness located in that tribe’s Indian lands. (SB 179)

Introduced in the Senate

March 15, 2023

Introduced by Sen. Jeff Irwin (D-15) and six co-sponsors

Co-sponsored by Sens. Roger Hauck (R-34), Jeremy Moss (D-7), Rosemary Bayer (D-13), Paul Wojno (D-10), Sylvia Santana (D-2) and Mallory McMorrow (D-8)

Referred to the Committee on Regulatory Affairs

April 27, 2023

Reported without amendment

May 2, 2023

Referred to the Committee of the Whole

June 14, 2023

Reported without amendment

Passed in the Senate 29 to 9 (details)

Received in the House

June 14, 2023

Referred to the Committee on Regulatory Reform

Oct. 3, 2023

Reported without amendment

Oct. 5, 2023

Passed in the House 91 to 15 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Oct. 10, 2023

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Signed by Gov. Gretchen Whitmer

Oct. 19, 2023