Cherry Industries License Surrendered in Cannabis Regulatory Agency Resolution with Detroit Marijuana Grower

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September 30, 2025 — The Cannabis Regulatory Agency (CRA) today announced a consent order and stipulation with Cherry Industries LLC (AU-G-C-000925), located at 6387 E. Nevada Street, Detroit, Michigan, resulting in the surrendering of their Class C Grower license.

On April 3, 2024, following an investigation, the CRA issued a formal complaint against the adult-use class C marijuana grower license (no. AU-G-C-000925) of Cherry Industries LLC for violating several provisions of the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and its administrative rules.

During a routine inspection on November 15, 2023, CRA agents discovered Cherry Industries LLC had exceeded their legal plant limit. Additionally, numerous marijuana products, including immature and mature plants, buds, trim, and pre-rolls, were found untagged and not tracked in the state monitoring system. Further review revealed severe inventory tracking issues.

Cherry Industries LLC could not account for large discrepancies in both positive and negative package adjustments, amounting to thousands of pounds of marijuana product and thousands of units. Over 4,200 pounds of product recorded in the statewide monitoring system did not exist physically, and more than 41,000 pounds of wet weight from 115 harvests remained incomplete in the system. It was also found that Cherry Industries LLC had improperly mixed products from different harvests, transferred marijuana that had failed safety testing due to contamination with a banned pesticide, and sold contaminated pre-rolls to consumers.

Additional violations included improper batch sampling practices, failure to provide full access to batches for lab testing, and substantial noncompliance with video surveillance requirements. Although the CRA granted an extension for submitting surveillance footage, the Respondent ultimately provided incomplete and insufficient footage, including missing days, limited camera coverage, and hours-long gaps.

These findings collectively demonstrate significant failures in regulatory compliance, product tracking, safety standards, and operational transparency.

As part of the consent order and stipulation, Cherry Industries LLC license has agreed to permanently voluntarily surrender the license (effective ten days after the effective date of the order) and has agreed that it shall not be renewed, reinstated, reissued, or reactivated, limited or otherwise, at any future date.

CRA announces transition from paper licenses to digital format

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Effective October 1, 2025, the Cannabis Regulatory Agency (CRA) will transition its Licensed Wall Certifications to a digital format. Once a license is issued, licensees will be able to log into their Accela Portal to access and print their digital wall certification for display. This change provides immediate access to wall certifications, allowing licensees to print or reprint their license at any time during the licensing period, and eliminates potential delays caused by USPS mailing issues. For more information and instructions, please visit https://www.michigan.gov/cra/digital-wall-certificate. Any active licenses will not need to be replaced but will change to the new format upon renewal. 

CRA Announces Historic Cannabis Compact Signed Between State of Michigan and Bay Mills Indian Community

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August 1, 2025 — In a historic development for cannabis policy and tribal sovereignty in Michigan, the Cannabis Regulatory Agency (CRA) and the Bay Mills Indian Community (BMIC) have officially signed the state’s first tribal-state cannabis compact, allowing the Upper Peninsula-based tribal nation to participate directly in Michigan’s licensed adult-use cannabis market.

The agreement, finalized on July 25, 2025, allows Bay Mills to integrate its Northern Light Cannabis Company into Michigan’s statewide Metrc tracking system and access the same wholesale and distribution channels as other licensed operators. The compact marks a major shift in how tribal and state governments can collaborate in emerging, regulated markets.

“This agreement reflects our shared commitment to safe, equitable, and well-regulated cannabis commerce,” said Brian Hanna, Executive Director of the Cannabis Regulatory Agency. “Welcoming BMIC into the regulated framework sets a model for tribal-state cooperation nationwide.”

“This compact represents a historic affirmation of tribal sovereignty and our inherent right to govern economic development on our own terms,” said BMIC President Whitney Gravelle. “We are proud to lead the way in establishing a framework for Tribal-State cooperation in the cannabis industry, one that respects self-determination, promotes equity, and opens the door for future partnerships grounded in mutual respect.”

BMIC was the first Michigan tribal nation to legalize adult-use cannabis on tribal lands in 2019 and launched its own tribally owned cannabis brand, Northern Light, in 2021. The company grows and produces organically cultivated cannabis at a vertically integrated facility in Chippewa County. Until now, its operations were limited to BMIC’s sovereign lands and the limited retail reach permitted by tribal law.

With this compact, BMIC will now be able to:

  • Sell products, including flower, concentrates, and edibles, across the state through licensed distributors and retailers
  • Participate in CRA-led compliance, testing, and inspection protocols
  • Integrate into Michigan’s statewide monitoring system for full seed-to-sale tracking and consumer transparency
  • Operate with the same privileges and responsibilities as other adult-use licensees statewide

The agreement creates a new category of participation in the cannabis industry for sovereign tribal governments in Michigan – one that respects tribal jurisdiction while aligning with statewide regulatory oversight. Importantly, the agreement allows the CRA to conduct inspections and audits, as well as monitor product safety and consumer protections, even on tribal lands, through mutual cooperation.

The tribal excise tax, along with statutorily required distributions from the Marihuana Regulation Fund, are expected to provide significant support to BMIC and its members as revenues will fund tribal infrastructure, education, public health programs, and economic development projects throughout the region.

Currently, 12 federally recognized tribes reside in Michigan, many of which have expressed interest in pursuing similar compacts. State officials and tribal representatives have both acknowledged that clear, legally binding agreements like this one are necessary to avoid jurisdictional confusion, foster consumer trust, and maintain a level playing field in a highly competitive and heavily scrutinized industry.

For answers to frequently asked questions about this agreement, click here.

About the Cannabis Regulatory Agency

The CRA oversees the regulation of cannabis in Michigan, including the state’s adult-use and medical marijuana systems. The CRA is responsible for licensing, compliance, testing, and enforcement. It ensures that cannabis operations meet the highest standards of public health, safety, and fairness.

About Bay Mills Indian Community

The Bay Mills Indian Community, located in Michigan’s eastern Upper Peninsula, is a federally recognized tribal nation and a long-standing leader in tribal economic development. In addition to cannabis, the tribe operates gaming, hospitality, and education enterprises and has a strong record of environmental stewardship and cultural preservation.

Michigan Supreme Court: “A warrantless search must be based on probable cause, and the smell of marijuana is insufficient to support probable cause.”

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Michigan Supreme Court: “The Kazmierczak rule that the smell of marijuana alone is sufficient to support a finding of probable cause to believe a crime was being committed is no longer good law in light of the MRTMA. Instead, the appropriate rule is that the smell of marijuana is one factor that may play a role in the probable-cause determination.”

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Notice of CRA public hearing on proposed updated Rules

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Department of Licensing and Regulatory Affairs  
Cannabis Regulatory Agency  
Administrative Rules for Marihuana Rules  
Rule Set 2023-25 LR  
NOTICE OF PUBLIC HEARING  
Tuesday, May 6, 2025  
09:00 AM  
In person: Sun Conference Room, 2407 N. Grand River Ave., Lansing, MI 48906  
Virtual: https://bit.ly/4bLt2x1 Passcode: 276834  
The Department of Licensing and Regulatory Affairs will hold a public hearing to receive public  
comments on proposed changes to the Marihuana Rules rule set.
 
All rules will be effective 180 days after filing, except R 420.218a will be effective immediately upon filing.  
The purpose of the proposed rule promulgation is to make various updates and revisions to the existing  
Marihuana Rules, including updating, revising, and clarifying requirements pertaining to applicants and  
licensees, the social equity program, the operation of marijuana businesses, production of marijuana  
products, transporting and delivering marijuana, advertising and labeling, sampling and testing, use of  
the statewide monitoring system, and annual financial statements.
 
By authority conferred on the Executive Director of the Cannabis Regulatory Agency by section 206 of  
the Medical Marihuana Facilities Licensing Act, 2016 PA 281, MCL 333.27206; sections 7 and 8 of the  
Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27957 and 333.27958; section  
3 of the Marihuana Tracking Act, 2016 PA 282, MCL 333.27903; and Executive Reorganization Order  
No. 2019-2, MCL 333.27001.
 
The proposed rules will take effect immediately after filing with the Secretary of State. The proposed  
rules are published on the State of Michigan’s website at www.michigan.gov/ARD and in the 5/1/2025  
issue of the Michigan Register. Copies of these proposed rules may also be obtained by mail or  
electronic mail at the following email address: CRA-AdminRules@michigan.gov.  
Comments on these proposed rules may be made at the hearing, by mail, or by electronic mail at the  
following addresses until 5/7/2025 at 05:00PM:
 
Attention: Rules  
P.O. Box 30205, Lansing MI 48909  
CRA-AdminRules@michigan.gov  
The public hearing will be conducted in compliance with the 1990 Americans with Disabilities Act. If the  
hearing is held at a physical location, the building will be accessible with handicap parking available.  
Anyone needing assistance to take part in the hearing due to disability may call 517-643-0757 to make  
arrangements.

FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies

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Immediate Release

WASHINGTON––Consistent with the U.S. Department of the Treasury’s March 2, 2025 announcement, the Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.

In that interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements.

Thus, through this interim final rule, all entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines, detailed below. These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner.

Upon the publication of the interim final rule, the following deadlines apply for foreign entities that are reporting companies:

  • Reporting companies registered to do business in the United States before the date of publication of the IFR must file BOI reports no later than 30 days from that date.
  • Reporting companies registered to do business in the United States on or after the date of publication of the IFR have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective.

FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year.