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HB 5043

Relating to state financial administration; and declaring an emergency.

2025 Regular Session

Sets a total-THC limit for consumable hemp products; exceedance moves products into marihuana under the act, guiding licensing, testing, and labeling.

Chapter 529, (2025 Laws): Effective date July 17, 2025.
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Bill Summary · HB 5043

Summary — HB 5043 (2025)

Title: Marihuana: other; references to and regulation of industrial hemp under the Michigan Regulation and Taxation of Marihuana Act; amend. (Amends secs. 3 & 8 of 2018 IL 1 — MCL 333.27953 & 333.27958)

Status & Procedural History
- Filed: March 13, 2025. Introduced by Rep. Luke Meerman (reproduced electronically 09/24/2025).
- Referred to Licensing & Administrative Procedures (4/3/2025); committee hearings and substitute reported favorably (April–May 2025). Placed on General State Calendar (5/12/2025). Referred to Committee on Regulatory Reform (9/24/2025).
- Tie bar: HB 5040’25. Companion bill: SB 1818.

Purpose / Intent
- To clarify and revise definitions in the Michigan Regulation and Taxation of Marihuana Act (2018 IL 1) to expressly address “industrial hemp,” to align agency naming, and to establish regulatory metrics separating hemp-derived products from marihuana subject to the Act.

Key Provisions
- Amends Section 3 (definitions):
- Defines “cannabis regulatory agency” and renames/aligns prior references to the agency created by Executive Reorganization Orders.
- Adds a comprehensive statutory definition of “industrial hemp,” including:
- Cannabis plants, parts, seeds, and derivatives that have a THC concentration of 0.3% or less on a dry-weight basis.
- Products intended for human or animal consumption that (a) have THC concentration ≤ 0.3% (dry-weight or per volume, as applicable) AND (b) contain a total amount of THC that is ≤ the limit the cannabis regulatory agency establishes under Section 8(1)(n).
- Non-consumable products containing hemp substances with THC concentration ≤ 0.3% (dry-weight).
- Clarifies that “marihuana” includes cannabis or products with THC concentration greater than 0.3% or that contain a total THC amount greater than the agency limit.
- Reiterates exclusions from the definition of marihuana (e.g., mature stalks, fiber, seed oil/cake, approved FDA drugs, industrial hemp).

  • Amends Section 8:
    • Directs the cannabis regulatory agency to set a limit for the “total amount of THC” in consumable hemp-derived products (referenced as Section 8(1)(n)). Products exceeding that total-THC limit (even if per-weight concentration is ≤ 0.3%) would be treated as marihuana under the Act.

Who is Affected
- Hemp growers, processors, manufacturers, retailers, and agricultural producers — particularly those producing hemp-derived consumables (e.g., CBD foods, beverages, edibles).
- Marihuana establishments and licensees — as some hemp-derived products could be reclassified as marihuana depending on total THC limits.
- Regulators (cannabis regulatory agency), local municipalities issuing licenses, law enforcement, and consumers of hemp-derived products.

Potential Impact
- Establishes clearer regulatory boundary between hemp and marihuana by adding a total-THC threshold (in addition to the 0.3% concentration rule). This could subject certain hemp-derived consumables that contain larger overall THC quantities to marihuana licensing, testing, and taxation rules.
- Empowers the cannabis regulatory agency to adopt specific numeric limits and testing/labeling standards (via Section 8 rulemaking).
- May increase compliance obligations (testing, labeling, licensing) for hemp product manufacturers and sellers and reduce legal ambiguity for regulators and enforcement.

Note
- The bill is tied to HB 5040’25; passage may be contingent on the companion/tied legislation. The cannabis regulatory agency’s forthcoming rule or limit under Section 8(1)(n) will determine practical scope and enforcement.

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

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