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HB 5106

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - REGULATORY POWERS OF ADMINISTRATION

2025 Regular Session Introduced by Edith Ajello and 6 co-sponsors

Allows CRA to summarily suspend adult-use marijuana licenses during emergencies under APA §92, and maintains CRA discipline over expired or inactive licensees.

03/20/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5106

Summary — HB 5106 (2025)

Title: Marihuana: licenses; summary suspension of licenses; allow under certain circumstances. Amend sec. 7 of 2018 IL 1 (MCL 333.27957)
Sponsor: Rep. Jerry Neyer (co-sponsors in introduced version: Aragona, Borton, Fairbairn, Wozniak)
Introduced: March 13, 2025 (reproduced/introduced Oct. 22, 2025) — Referred to Committee on Regulatory Reform

Purpose / Intent

HB 5106 amends section 7 of the Michigan Regulation and Taxation of Marihuana Act (2018 IL 1) to (1) authorize the Cannabis Regulatory Agency (CRA) to summarily suspend adult‑use marihuana state licenses when emergency action is required to protect public health, safety, or welfare, and (2) clarify that the CRA retains disciplinary authority over persons whose licenses have expired or who no longer operate a marihuana establishment.

Key provisions

  • Adds explicit CRA authority to summarily suspend a state license “in accordance with section 92 of the Administrative Procedures Act” (1969 PA 306, MCL 24.292) when the agency determines emergency action is required because the licensee’s conduct poses a risk to public health, safety, or welfare.
  • Lists non‑exclusive examples of conduct that may justify summary suspension:
    • Possession of marihuana for which the source cannot be determined.
    • Possession of marihuana obtained in violation of the Act (as determined by the CRA).
    • Obstruction of a CRA investigation.
    • Failure to provide CRA‑required records under the Act or agency rules.
  • Confirms the CRA may continue to take disciplinary actions (including civil fines, suspension, restriction, or revocation) against a person even if the person’s state license has expired or the person no longer operates a marihuana establishment.
  • Retains existing CRA duties (rulemaking, licensing investigations, inspections, public meetings, fee collection, annual reporting).

Statutory citations: amends MCL 333.27957; ties summary suspension procedure to MCL 24.292 (APA §92).

Who is affected

  • Adult‑use marihuana licensees and applicants regulated under the Michigan Regulation and Taxation of Marihuana Act (e.g., growers, processors, retailers, microbusinesses, safety compliance facilities, secure transporters).
  • Individuals formerly licensed or whose licenses have lapsed — they remain subject to CRA disciplinary authority.
  • CRA (implementation/enforcement responsibilities).

Procedural / timeline notes

  • Bill was filed March 13, 2025; considered in a public committee hearing April 14, 2025 (left pending); electronically reproduced and reintroduced Oct. 22, 2025 and referred to the Committee on Regulatory Reform.
  • Summary suspension must follow the Administrative Procedures Act emergency suspension process (APA §92), which permits immediate action pending subsequent administrative proceedings.

Fiscal impact

House Fiscal Agency estimates minimal to no fiscal impact for the CRA; cases involving expired or former licensees are expected to be rare.

Bottom line

HB 5106 strengthens CRA enforcement tools by permitting emergency, summary suspensions for conduct that endangers public health/safety and preserves the agency’s disciplinary reach over individuals after license expiration, while requiring procedural compliance with the APA.

Compiled from official sources — confirm details with the bill’s official record.

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