State Representative Joseph Aragona (R) has introduced House Bill 4967, a proposal that would significantly update Michigan’s cannabis framework.

Filed today and referred to the Committee on Regulatory Reform, the bill would give the Cannabis Regulatory Agency (CRA) direct oversight over hemp cultivation, processing, distribution, and sales. Consumable hemp products, including products with hemp-derived THC such as THC beverages, would be required to contain no more than 0.3% THC and stay under a total THC limit that the CRA will establish, while non-consumable hemp items must still fall under the 0.3% threshold. The measure also updates THC’s legal definition to include synthetically derived cannabinoids and isomers unless the CRA determines otherwise.

HB 4967 further directs the CRA to strengthen testing, labeling, and packaging standards. Products would need to carry new health warnings, including risks associated with pregnancy and breastfeeding, and infused items would be subject to strict THC caps. The agency would also gain authority to create new license types, including for consumption areas and special events.

Another major element of the bill allows federally recognized tribes to operate marijuana businesses on tribal lands under agreements with the CRA and the state treasury. These tribal businesses would be subject to tribal taxation, with revenue retained by the tribe when products are cultivated and processed on tribal lands. In cases where marijuana is sourced elsewhere, revenue-sharing arrangements with the state would apply.

Under the proposal, tribal marijuana businesses must be wholly owned by the tribe or its enrolled members and operate under the same safety and compliance standards as state-licensed establishments, with the CRA maintaining oversight.