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"That's going to hurt": Lansing pot shops react to potential business caps

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Marijuana dispensary owners in Lansing are pushing back against a bipartisan proposal that would cap the number of cannabis businesses in neighborhoods to one every 10,000 residents.

  • State lawmakers are considering a bipartisan proposal to cap marijuana dispensaries in neighborhoods.
  • Dispensary owners warn that the restrictions and tax increase could force closures and push customers back to the illegal market.
  • While some residents say there are too many dispensaries, business owners want more input in policy decisions affecting their operations.

A bipartisan proposal would cap the amount of dispensaries to one every 10,000 residents. It would close down currently open shops, but the state would not issue a new license to one over that ratio.

"That's going to hurt": Lansing pot shops react to potential business caps

Some neighbors talked about the concentration of marijuana businesses and the smell of cannabis throughout downtown areas.

"There's one on virtually every corner," Lansing resident Loretta Stanaway said. "You can't walk the streets of Lansing without smelling pot from one block to the next."

But dispensary owners like Henry Meyers, who owns FORTUO, argue the restrictions would harm local businesses and the community they serve.

"We're providing jobs for people in our community, people we grew up with, people that are from Lansing," Meyers said.

Meyers believes the timing of the proposed caps is problematic, especially when combined with the significant tax increase.

"It's a little too late. Right? I think they should've done that a long time ago. On top of adding the 24% tax, that's going to hurt a lot of people in this industry," Meyers said.

The 24% wholesale tax on marijuana would generate revenue specifically designated for neighborhood road funding. However, Meyers warns that the added costs could force existing businesses to close and prevent new ones from opening.

"It's going to push people back to the black market," Meyers said.

State lawmakers defend the proposal, saying they're focused on improving cannabis industry regulations and helping make the industry more competitive.

"It will be focused on finding the best solutions to solve the problems facing the cannabis industry and improving our existing regulations on these problems," state lawmakers said.

As the legislative process continues, business owners want more input in policy decisions that affect their operations.

"But it's happening fast, and we didn't necessarily have a say in it, but talk to me, I have some great ideas," Meyers said.

Meanwhile, some residents support reducing the number of dispensaries in their neighborhoods.

"There should be a much smaller number than what it is," one resident said.

Also in the proposal: Starting in 2026, the state could indefinately no longer give out new licenses for testing labs, transportation companies, or large growing operations with more than 150 plants.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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