There are bills in the House and the Senate to set some parameters now that Michigan has a legal marijuana marketplace.
Derek Sova of the Michigan Cannabis Regulatory Agency told a House committee the black market in Michigan is busy because the profits are still there with little risk of serious punishment.
“So Michigan has really become in a lot of ways sort of a central location for illicit operations because the penalties for illicit operations are so low here.”
Cannabis businesses also say the illegal market is undercutting legal operators with lower prices, a problem that will get worse when the state’s new wholesale tax on marijuana takes effect in January.
