State House clears medical marijuana legislative package

Michigan would tax medical marijuana and regulate the drug in a tiered system similar to alcohol and gambling under bills approved by the state House. “Provisioning centers” that sell the drug to patients or their caregivers would pay a 3 percent tax on their gross retail income, in addition to the 6 percent state sales tax.

Michigan voters legalized medical pot in 2008, but interpreting the law that lets patients grow their own marijuana or buy it from caregivers has led to conflicts in the courts.

The third bill allows patients to consume medical marijuana in non-smokeable forms, such as oils and as edibles. Local governments could also limit the number and type of facilities that can operate in their jurisdiction.

Under the proposal, the state could charge up to $10,000 a year per license for large-scale growers and a regulatory assessment for processors, secure transporters, dispensaries and safety facilities. Rules governing casinos require licenses and background checks for employees and others.

House Republican Mike Callton of Nashville was the primary sponsor of the bipartisan-supported package.

The Senate voted 25-11 Thursday to send the legislation to the House. Critics say the legislation is another example of the state overriding what locally elected leaders think is best in their communities.

During testimony on the bills last month, state Rep. Jeff Irwin, D-Ann Arbor, said other forms of medicine aren’t taxed by the state and medical marijuana shouldn’t be either. The bills are now before the Michigan Senate.