Industrial Hemp: licenses; licensing and regulations for processing, brokering, and marketing industrial hemp, supplying industrial hemp seed, and engaging in wholesale of industrial hemp products; create. Creates new act & repeals 2014 PA 547 (MCL 286.841 - 286.859). TIE BAR WITH: HB 4965'25, HB 4966'25, HB 4967'25
HB 4964 creates the “industrial hemp processing act” to establish a new state licensing and regulatory framework for the processing and sale of consumable hemp products in Michigan. The bill requires anyone processing consumable hemp products to obtain a state license from the Cannabis Regulatory Agency, submit detailed application information, renew annually, and pay specified fees. It also sets out rules for site changes, recordkeeping, appeals, and agency oversight, and it makes applicant information exempt from disclosure under the Freedom of Information Act.
The bill draws a line between nonintoxicating cannabinoids, intoxicating cannabinoids, and potentially intoxicating cannabinoids. It allows the processing and sale of consumable hemp products made from approved nonintoxicating cannabinoids, but prohibits the processing, sale, or transfer of intoxicating, potentially intoxicating, or converted cannabinoids, subject to existing marijuana-law exceptions. The bill also requires all consumable hemp products to be tested before sale, establishes labeling requirements such as FDA disclaimer language and ingredient disclosure, and directs the agency to promulgate rules defining testing, cannabinoid classifications, and product standards.
HB 4964 would significantly expand state oversight of the hemp-derived consumable products market by replacing the existing industrial hemp research and development act and creating a new licensing, testing, labeling, and enforcement regime. It gives the Cannabis Regulatory Agency authority to issue licenses, inspect compliance, impose civil fines, suspend or revoke licenses, conduct hearings, and create emergency rules when a cannabinoid poses a public health risk. The bill also creates a consumable hemp product fund to receive licensing and late fees and to finance administration and enforcement, while preempting local governments from adopting contrary ordinances.
The bill appears to be framed as a regulatory and public-safety measure rather than a permissive expansion of hemp commerce. Even without recorded committee testimony or votes in the provided materials, the structure of the bill suggests an intent to bring hemp-derived consumable products under tighter state control, especially products containing cannabinoids that may be intoxicating or chemically converted. The overall tone is cautious and enforcement-oriented, with emphasis on testing, labeling, licensing, and agency authority.
The main points of contention likely center on the bill’s treatment of intoxicating and potentially intoxicating cannabinoids, especially delta-8, delta-10, THC analogues, and converted cannabinoids, which are broadly prohibited unless otherwise covered by marijuana laws. Another likely issue is the scope of agency discretion to classify cannabinoids, require emergency rules, and suspend licenses without prior notice when public health is deemed at risk. Industry stakeholders may also object to the licensing fee, testing requirements, and the ban on local regulation, while regulators and public-health advocates are likely to support those provisions as necessary consumer protections.