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SB-704, As Passed Senate, March 25, 2026
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SENATE BILL NO. 704
A bill to amend 2018 IL 1, entitled
"Michigan Regulation and Taxation of Marihuana Act,"
by amending section 7 (MCL 333.27957), as amended by 2023 PA 166.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) The cannabis regulatory agency is responsible for 1
implementing this act and has the powers and duties necessary to 2
control the commercial production and distribution of marihuana. 3
The cannabis regulatory agency shall do all of the following: 4
(a) Promulgate rules pursuant to under section 8 that are 5
November 13, 2025, Introduced by Senator SINGH and referred to Committee on Regulatory
Affairs.
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necessary to implement, administer, and enforce this act. 1
(b) Grant or deny each application for licensure and 2
investigate each applicant to determine eligibility for licensure, 3
including conducting a background investigation on each person 4
holding an ownership interest in the applicant. 5
(c) Ensure that marihuana establishments comply with this act 6
and the rules promulgated under this act by doing all of the 7
following: 8
(i) Performing investigations of compliance and regular 9
inspections of marihuana establishments. 10
(ii) Taking appropriate disciplinary action against a licensee, 11
including prescribing civil fines for violations of this act or the 12
rules promulgated under this act and suspending, restricting, or 13
revoking a state license. 14
(d) Hold at least 4 public meetings each calendar year for the 15
purpose of hearing complaints and receiving the views of the public 16
with respect to administration of this act. 17
(e) Collect fees for licensure and fines for violations of 18
this act or the rules promulgated under this act. 19
(f) Deposit all fees collected for licensure into the 20
marihuana regulation fund established under section 14 and remit 21
all fines collected for deposit into the general fund. 22
(g) Submit an annual report to the governor covering the 23
immediately preceding year that includes all of the following: 24
(i) The number of state licenses of each class issued. 25
(ii) Demographic information of licensees. 26
(iii) A description of enforcement and disciplinary actions 27
taken against licensees. 28
(iv) A statement of revenues and expenses of the cannabis 29
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regulatory agency related to the implementation, administration, 1
and enforcement of this act. 2
(h) Employ personnel as necessary to adequately perform its 3
duties. 4
(2) The cannabis regulatory agency may do either any of the 5
following: 6
(a) Enter into an agreement with an advisor or consultant as 7
necessary to adequately perform its duties under this act. 8
(b) Enter into an agreement with an Indian tribe regarding 9
marihuana-related regulatory issues that involve the interests of 10
this state and the Indian tribe, including, but not limited to, 11
issues related to the commercial growing, processing, sale, 12
testing, transportation, and possession of marihuana. 13
(c) Establish and operate a marihuana reference laboratory. 14
(d) Collect, transport, and possess marihuana for the purpose 15
of testing and conducting research in support of cannabis 16
regulatory agency investigations and the development and 17
optimization of testing methods performed through the cannabis 18
regulatory agency reference laboratory. 19
(3) A person who has a pecuniary interest, directly or 20
indirectly, in a marihuana establishment or tribal marihuana 21
business may not be an employee, advisor, or consultant involved in 22
the implementation, administration, or enforcement of this act. An 23
employee, advisor, or consultant of the cannabis regulatory agency 24
is not personally liable for any action at law for damages 25
sustained by a person because of an action performed or done in the 26
performance of the employee's, advisor's, or consultant's duties in 27
the implementation, administration, or enforcement of this act. 28
(4) The department of state police shall cooperate and assist 29
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Final Page
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the cannabis regulatory agency in performing the cannabis 1
regulatory agency's duties under this act, including, but not 2
limited to, conducting background investigations of applicants. 3