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Michigan

PSYCHEDELIC REGULATIONS FOR BUSINESSES IN MICHIGAN

Michigan does not have a regulated commercial market for psychedelics. The state issues no licenses for psychedelic service centers, facilitators, manufacturers, cultivators, or retailers.

Psilocybin, psilocin, DMT, mescaline, ibogaine, peyote, and LSD remain Schedule 1 controlled substances under Michigan law. Unauthorized possession, production, sale, distribution, and use may result in criminal penalties.

Businesses cannot legally handle these substances unless they are operating under all required research approvals or another narrow legal exemption.

State Controlled-Substance Laws

Michigan lists many psychedelic substances in Schedule 1 of the state’s Public Health Code.

These substances include:

  • DMT
  • Ibogaine
  • LSD
  • Mescaline
  • Peyote
  • Psilocybin
  • Psilocin

State law generally prohibits manufacturing, delivering, possessing, or using Schedule 1 substances without legal authorization.

Michigan’s controlled-substance laws are separate from federal law. Businesses must comply with both legal systems.

No Commercial Licensing Framework

Michigan has not established a licensing model similar to the regulated psilocybin programs in Oregon or Colorado.

State law does not authorize:

  • Psychedelic retail stores
  • Psilocybin service centers
  • Commercial mushroom cultivation
  • Psychedelic product manufacturing
  • State-certified facilitators
  • Commercial psychedelic-assisted services involving prohibited substances

A local business license does not authorize a company to possess, produce, sell, or administer controlled psychedelics.

Lawful activity is generally limited to research conducted under the required federal, state, and institutional approvals.

Local Decriminalization Measures

Several Michigan municipalities have adopted local measures involving entheogenic plants and fungi.

Communities that have approved enforcement-deprioritization policies include:

  • Ann Arbor
  • Detroit
  • Ferndale
  • Hazel Park
  • Ypsilanti

The scope of each measure varies. In general, these policies make certain investigations or arrests involving personal use, possession, or cultivation a low local priority.

Local decriminalization does not:

  • Legalize psychedelics under Michigan law
  • Protect activity from state or federal enforcement
  • Authorize commercial manufacturing or sales
  • Create licenses for psychedelic businesses
  • Permit unlicensed treatment or administration

Ypsilanti’s 2024 resolution, for example, expressly states that it does not authorize commercial sales or manufacturing.

Businesses should not treat a local resolution as legal permission to sell psychedelics or operate a service center.

Research and Academic Activity

Michigan has an active psychedelic research community. The University of Michigan launched the Michigan Psychedelic Center in 2022.

The center supports research, education, clinical work, and community engagement related to psychedelic drugs and experiences. Its research spans neuroscience, chronic pain, mental health, and other areas.

Academic research does not create a public commercial market. Researchers must follow applicable rules for controlled substances, clinical studies, patient safety, and institutional oversight.

Current Psilocybin Legislation

Michigan lawmakers have introduced several psychedelic reform bills, but none has created a statewide licensing program.

Senate Bill 631 was introduced in 2021. It proposed removing criminal penalties for certain personal activities involving entheogenic plants and fungi. The bill did not pass.

Senate Bill 499 introduced a similar proposal in 2023. It also failed to become law.

House Bill 5980 was introduced in 2024. It proposed limited psilocybin and psilocin protections for adults diagnosed with post-traumatic stress disorder. The bill did not pass before the legislative session ended.

Lawmakers introduced a similar measure, House Bill 4686, in June 2025. The proposal would protect adults aged 18 and older who:

  • Have a documented PTSD diagnosis
  • Possess no more than two ounces of a substance containing psilocybin or psilocin
  • Possess the substance for personal use

HB 4686 would not authorize commercial sales or establish licensed service centers. The bill remained pending in the House Committee on Families and Veterans as of this update.

Proposed Ibogaine Research Program

House Bill 6020 was introduced in May 2026. The bill proposes a state-supported framework for ibogaine research and participation in approved clinical trials.

The proposal would authorize the Michigan Department of Health and Human Services to support research conducted by eligible institutions. It would also allow Michigan to participate in a research consortium with other states and organizations.

HB 6020 advanced from the House Committee on Families and Veterans in June 2026 and was referred to the House Committee on Rules. It had not become law as of this update.

Even if enacted, the proposal would focus on clinical research. It would not legalize retail ibogaine sales or create a general psychedelic business market.

Ballot Initiative Efforts

Advocates attempted to qualify a statewide psychedelic reform proposal for the 2022 ballot but did not collect enough valid signatures.

Reform supporters later discussed another campaign for the 2024 election. However, no statewide psychedelic legalization measure appeared on Michigan’s 2024 ballot.

These advocacy efforts did not change state law.

Business and Compliance Considerations

Businesses interested in Michigan’s future psychedelic market should carefully separate lawful research and ancillary services from prohibited controlled-substance activity.

Important considerations include:

  • State and federal controlled-substance laws
  • Research and clinical-trial approvals
  • Professional licensing requirements
  • Local enforcement policies
  • Health and treatment claims
  • Banking and payment-provider requirements

Pending bills and municipal resolutions do not authorize a company to possess, manufacture, sell, or administer psychedelics.

PayRio continues to monitor psychedelic regulations as states consider new research and access programs. Contact PayRio to discuss the compliance needs of a lawful business operating in an emerging market.

PSYCHEDELIC LEGALIZATION HISTORY IN MICHIGAN

Michigan’s psychedelic reform movement has developed mainly through municipal action, academic research, and proposed legislation.

Ann Arbor Begins Local Reform

In September 2020, Ann Arbor adopted a resolution making investigations and arrests involving certain entheogenic plants and fungi the city’s lowest law-enforcement priority.

The resolution became a model for other Michigan communities.

Additional Municipal Measures

Detroit voters approved Proposal E in November 2021. The measure made enforcement involving personal possession and therapeutic use of entheogenic plants a low city priority.

Ferndale and Hazel Park later adopted similar policies. Ypsilanti joined them in January 2024.

These measures changed local enforcement priorities without legalizing commercial activity.

State Legislative Proposals

Michigan lawmakers introduced statewide reform bills in 2021 and 2023. Those proposals sought to remove penalties for certain noncommercial activities involving entheogenic plants and fungi, but neither became law.

Bills introduced in 2024 and 2025 focused more narrowly on psilocybin use by adults with PTSD.

In 2026, lawmakers also began considering a state-supported ibogaine research framework.

Continued Research

The University of Michigan launched the Michigan Psychedelic Center in 2022. The center continues to conduct and support multidisciplinary psychedelic research.

This research activity has expanded the policy discussion but has not established a commercial access program.

PSYCHEDELIC LEGALIZATION STATUS IN MICHIGAN

Current Status: ILLEGAL statewide, with limited local enforcement deprioritization

Michigan law currently:

  • Prohibits unauthorized possession, production, sale, distribution, and use
  • Does not license psychedelic service centers or retail businesses
  • Allows approved research under applicable regulatory requirements
  • Permits municipalities to set local enforcement priorities without changing state law
  • Does not authorize commercial activity through pending legislation

Michigan has active local reform efforts and a growing research community. However, businesses must wait for enacted legislation and a formal regulatory framework before entering any state-authorized commercial psychedelic market.

LAST UPDATED 9/2/2026 – Laws can be revised and updated frequently, so please keep this in mind.