Home Business Michigan Regulators Approve 3 Cannabis Delivery Businesses

Michigan Regulators Approve 3 Cannabis Delivery Businesses

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We reported in the summer of 2018 that regulators in Michigan were considering allowing businesses to deliver cannabis to the homes of state medical patients. Since then, adult-use cannabis sales have been legalized in the state, and the recreational program took effect on December 1st. According to a report from the Associated Press, lawmakers in Michigan have recently approved three businesses for home delivery.

The report from the AP says that the Michigan Department of Licensing and Regulatory Affairs approved Lit Provisionary in Evart, Battle Creek Provisioning in Battle Creek, and Nature’s Releaf in Burton. Currently, customers are allowed to purchase up to 2.5 ounces of flower and 15 grams of concentrate when buying cannabis in person, and these will be the same limits when ordering home delivery. Even though the businesses have been approved for delivery, the regulatory body did not provide a specific date for when businesses would be allowed to start making deliveries.

Just like purchasing cannabis at retail locations, customers must be 21 years old. Orders for delivery must be made online, and most payments will be made when the customer orders – although cash payments are also acceptable. 

Delivery drivers will also have to be 21 years of age, and the maximum amount a delivery driver can possess is 15 ounces. When deliveries are allowed, their vehicles are required to be equipped with GPS. Additionally, businesses will be required to keep a record of all deliveries and keep up-to-date records in a state monitoring system. 

The reason for the low number of businesses that are approved to deliver is due to the fact that currently, only 22 percent of municipalities in the state are allowing recreational facilities to operate. This number could soon change, as local governments may look to benefit from the 10 percent excise tax imposed on cannabis sales.

The Michigan Senate Fiscal Agency expects recreational cannabis sales to generate $180.5 million in taxes in 2020 alone. By 2023, the agency expects those figures to reach $287.9 million or more. Illinois and Michigan are two midwest states that are ushering in 2020 with legal adult-use cannabis sales. If all goes well with delivery services in Michigan, cannabis customers in Illinois might be able to get the plant delivered to their homes in the near future as well.

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