A new legislative package in Michigan proposes broad limits on retail cannabis businesses and tighter regulation of hemp‑derived products. The centerpiece, Senate Bill 597 (SB 597), introduced by Sam Singh (D‑East Lansing), would prohibit the state’s Cannabis Regulatory Agency from issuing a new retail marijuana license beginning January 1, 2026, if doing so would result in more than one retailer per 5,000 residents in a municipality.

In addition, the bills would freeze new licenses for large cultivation operations, testing labs and transport companies.

Bridge Michigan reports that supporters from the industry argue the market is oversaturated, pushing down wholesale prices and threatening established businesses. They point to a newly enacted 24 % wholesale tax on cannabis transfers as adding pressure.

Critics say the cap could create regional monopolies or oligopolies, blocking new entrants and limiting competition. A fiscal analysis by the Senate Fiscal Agency flagged such a possibility.
The proposal also includes a separate set of bills to regulate consumable hemp products — many of which are currently sold with minimal oversight.

Because the changes would amend the state’s voter‑approved adult‑use cannabis law, they would require a three‑fourths vote in both legislative chambers.