Notice of CRA public hearing on proposed updated Rules
FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies
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.
CRA Reminds Licensees of Impending FDA Ban of FD&C Red No. 3 Color Additive
February 18, 2025 – The CRA announced today that it is requiring licensee compliance by January 15, 2027 with the Food and Drug Administration’s recent January 15, 2025 announcement that authorization for the use of FD&C Red No. 3 in foods, supplements, and drugs has been revoked.
CRA licensed producers may be affected by the prohibition of Red No. 3, which is added to products to impart red coloring. Products such as candies, gummy base, powders, and capsules used by CRA licensed producers in edible marijuana products may currently contain Red No. 3.
Producers must work with their suppliers to source alternative color additives and ingredients to those containing Red No. 3. Producers currently incorporating Red No. 3, or an ingredient containing Red No. 3, into products should expect to change written product formulations and labeling to reflect the new ingredient(s) and color additive(s) utilized.
Food and supplement manufacturers must discontinue use of Red No. 3 in products by January 15, 2027, and drug manufacturers must discontinue their use by January 18, 2028.
As the CRA defines edible marijuana products as any product containing marijuana that is intended for human consumption in a manner other than inhalation, all edible marijuana products that currently contain Red No. 3 must be reformulated by the earliest compliance date of January 15, 2027. This includes items that may be offered in forms similar to traditional drugs, such as capsules or powders.
Licensees should note that producers may continue to find that their suppliers offer items containing Red No. 3, as the prohibition for traditional drugs containing the color additive is not in effect until 2028. Additionally, Red No. 3 may still be listed in the Food and Drug Administration’s Inactive Ingredient Search for Approved Drug Products until 2028.
Any questions for the CRA regarding the use of Red No. 3 color additive may be directed to CRA-Enforcement@michigan.gov.
Cannabis Regulatory Agency Announces Voluntary Vape Recall (BLOOM)
February 11, 2025 – In the interest of public health and safety, Exhale Systems Inc (AU-P-0000495) of Detroit, in conjunction with the Cannabis Regulatory Agency, is conducting a voluntary recall of vapes offered for sale in the Michigan market.
Various flavors of BLOOM Classic and BLOOM Live brand vape cartridges contained Medium Chain Triglyceride Chain (MCT) oil and should not be consumed.
Exhale Systems Inc has identified sales locations that have this product in their inventory and are working with stores to retrieve and dispose of any recalled product in stock.
Sales locations have posted signs advising consumers to return this product to the sales location from which it was purchased or dispose of it.
The impacted products include the following strains: Alien Jack, Blue Dream, Cereal Milk, Champagne Kush, Durban Gelato, Face Off OG, Forbidden Fruit, Green Crack, Jack Herer, Maui Wowie, Pineapple Express, Pineapple Sherbert, Rainbow Runtz, Skywalker, White Widow.
Consumers who purchased these flavors of BLOOM vape cartridges any time after September 1, 2024 should check the recall bulletin. Consumers with a recalled vape should return it to the sales location from where it was purchased or dispose of it safely.
Consumers who have experienced adverse reactions after using these products should report their symptoms and product use to their healthcare providers. Consumers are encouraged to also report any adverse reactions to marijuana product to the CRA via the Adverse Reaction Form or by phone at 517-284-8599. A licensee who becomes aware of any adverse reactions to a marijuana product must notify the CRA and enter the information into METRC within one business day.
Update for Michigan Hemp Growers – Regulatory Transition
Since the inception of Michigan’s Agricultural Hemp Pilot Program in 2019, the Michigan Department of Agriculture and Rural Development (MDARD) has overseen the regulation of hemp production in Michigan. However, over the past few years, the number of licensed hemp growers has significantly declined, from 631 in 2020 to just 34 in 2024. As a result, the program is no longer financially sustainable. In addition, MDARD’s continued investigation and enforcement efforts against farms intentionally growing marijuana under the guise of hemp adds to the time and expense of managing the program.
Legislation has been introduced to rescind Public Act 220 and shift the regulation of hemp cultivation from MDARD to U.S. Department of Agriculture (USDA). This is only a proposed change, and adjustments may be made as the process moves forward.
If the legislation passes, MDARD will work closely with USDA to ensure hemp growers have a smooth transition to the federal program.
Currently, some key differences in the USDA program include:
- No license fee.
- Licenses are valid for three years.
- Growers must contract with USDA-certified sampling agents and private labs for THC testing.
For more details on the USDA hemp program and available resources, visit USDA Hemp Program and see the “For USDA Licensed Producers Only” section.
Depending on the status of the legislation, MDARD may delay mailing out renewal applications later than mid-December, which is when renewal applications are typically mailed. MDARD will continue to provide updated information as the legislative process unfolds.