The Michigan Regulation and Taxation of Marijuana Act was effective on December 15, 2019. It specifically permits a person to “give away or otherwise transferring without remuneration up to 2.5 ounces of marijuana”, or 15 grams of marijuana concentrate, to an adult over the age of 21 years. Until commercial retail marijuana dispensaries are licensed and in business sometime in 2020, gifting is potentially the only legal manner of obtaining adult use marijuana in Michigan. That is a year away so, quite naturally, “entrepreneurs ” are trying different ways to make money with marijuana distribution.
What is remuneration?
Remuneration is defined as money or compensation paid for a product or service.
- Selling a T-Shirt for $100
The classic example is selling a t-shirt (or any other low value product or service) for $100 and during that same transaction giving the same person an amount of marijuana valued at $100. This is not a sale of a T-shirt, its a sale of marijuana. Just because the seller labels the transaction in one way does not make it so. In this example, there is no marijuana gift without the purchase of the t-shirt. Therefore, this transaction is really a sale of marijuana and its illegal.
Exchange For Something of Value – Consider the Transaction as a Whole
There are other exchanges involving the gifting of marijuana that are legitimate and lawful. The key consideration is if the remuneration is in exchange for something of value other than the marijuana. Plus the gift should be a separate transaction. Consider the scenario where a person pays money to enter an event. There could be unique benefits of the event to which value may be attributed. Perhaps there is a unique guest list, entertainment, or educational value. Gifting cannabis at that type of event is permissible as the remuneration was something distinct, separate and for something of value besides the marijuana.
Habitual, Willful and For a Commercial Purpose – Penalties
There is only one situation where MRTMA identifies a criminal penalty punishable by jail. That is when there is a habitual, willful and commercial sale of marijuana. That is what many of these “gifting “operations are engaged in. Courts have not yet interpreted how much potential jail time is intended.
Likelihood of Law Enforcement and Charges
Due to the recent legalization of marijuana, law enforcement is not making marijuana offenses a high priority. They will when one of two things happen: enough people, like licensed marijuana businesses and/or consumers complain, or when there is a demonstrated public health or safety issue. Eventually, businesses that have paid hundreds of thousands of dollars for their marijuana licenses will not be happy with “gifting” operations who have not. Illegitimate ones will not last long.
Intent for Commercial Purpose Intent of the MRTMA
Section 2 of the act specifically states that one of the purposes of the act is to control the commercial production and distribution of marijuana under a system that licenses, regulates, and taxes the businesses involved. Section 17 states that the Act shall be broadly constructed to effectuate its stated purposes in Section 2. Even with a broad interpretation, exchanges of products of minimal value for money while at the same time “gifting” an amount of marijuana does not satisfy the Act’s intent.
Best Practice Advice
These exchanges are subject to interpretation and are fact specific. The totality of circumstances will be reviewed. Eventually law enforcement and prosecutors will be charging people with commercially selling marijuana when the accused purports it was a gift. Courts are used to reviewing all of the circumstances to determine whether an action is a crime. The best advice is to effectuate the intent of the act and not try to make a quick buck before adult use dispensaries get here. A conviction may keep a person out of the commercial market for a long time.
Attorney Morris has enjoyed a very successful and distinguished career as a trial lawyer providing high quality legal representation in the area of state and federal criminal defense for 19 years. He is known for his trial preparation by fellow attorneys, judges and clients alike. As a trial attorney, he is dedicated to attaining justice in every case, and is prepared to take on complex legal issues with success. Barton and his law firm pride themselves on obtaining results for their clients that other attorneys cannot.
Not only does Barton Morris have extensive experience, he also engages in continuing legal education to provide the highest quality legal services. Barton has received specialized scientific training through the American Chemical Society. He attended the prestigious Trial Lawyers College and serves on its Alumni Association Board of Directors. Barton Morris is also a board member of several distinguished legal associations including the Michigan Association of OWI Attorneys, and the DUI Defense Lawyer’s Association Justice Foundation. He is also an active member of the National Association of Criminal Defense Attorneys and has also graduated from their National Criminal Defense Trial College in Macon, Georgia.
Barton Morris was chosen as a Top Lawyer of Metro Detroit for 2012, 2013 & 2014 for DUI/DWI and criminal defense by DBusiness Magazine and Hour Magazine. Barton Morris was also chosen as a Super Lawyer in Criminal Defense for 2014-2017 and Barton Morris is the only Lawyer in Michigan designated by the American Chemical Society as a “Forensic Lawyer-Scientist”