Medical Cannabis is a legalized business in Michigan since 2008 and cannabis pharmacies operate under different laws across the state counties, according to a BBC news report. As the state enforces new laws for this segment more stringently, many of the operating stores, like the 420 Dank in Detroit, face the threat of closure.
Fresh cannabis dispensary laws by the local government in Detroit require such stores to be located a minimum of 1,000 feet or 305 m away from schools, fast food restaurants and strip clubs. 420 Dank run by Kim Gaetano a medical marijuana seller, who owned similar businesses in Colorado and Washington before moving to Detroit where her family lives, is located near abandoned buildings line in Gratiot Street. She sells edible products, cannabis flowers and round the clock drive-through sale especially during the winter, to patients.
The location of the dispensary, close to fast food restaurant and 371-ft distance from an off-licence has Gaetano fighting for survival. She claims immunity for her store as it is compliant with most of the other codes such as fire safety, ID evaluation apart from strong ties with the local community.
Further local code changes ask that mediacal cannibis stores like her's not to operate their stores until 10 am. Gaetano alleges such a rule would affect sales as many night shift workers would not have access to the dispensary.
The ad-hoc legal laws and the regulatory changes are affecting medical cannabis businesses in Michigan. States such as Colorado and Washington have legalized the use of marijuana for adults aged 21 years and above. The revenue the states are generating from the industry is phenomenal. In 2015, Colorado earned as much as $72 million from cannabis sales, while Washington's revenues too were similar at $67.5 million.
Detroit with over 200 such dispensaries could generate high revenue through "Smart Tax Regulation," speculate Michigan's political leadership. Congressman Jeff Irwin proposed a bill where smart taxation will "break the black market" through regulation and taxation.
