Michigan’s Cannabis Regulatory Agency Notifies Consumers of Voluntary Marijuana Product Recall

/0 Comments/in /by

In the interest of public health and safety, the Cannabis Regulatory Agency notified consumers today of a recall of marijuana-infused edible products. Bloomfield Development Group Grow, LLC dba Golden Shores Cannabis Company (Bloomfield) – in coordination with the Cannabis Regulatory Agency (CRA) – is voluntarily recalling a limited amount of marijuana-infused edible products due to non-compliant creation and packaging.

The products were created containing 200 mg of THC per serving, which exceeds allowable concentration amounts. In addition, the product packaging is not child resistant as required by the administrative rules. The product is labeled as “The Weed Bar” without the required product modifier stating, “marijuana product,” “THC product,” or “cannabis product.”

Consumers who have these products in their possession should return them to the marijuana sales location for proper disposal. 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 email at CRA-Enforcement@michigan.gov or by phone at 517-284-8599.

Questions about this recall should be emailed to the CRA’s Operations Support Section at CRA-Compliance@michigan.gov.

Michigan’s Cannabis Regulatory Agency Takes Disciplinary Action against Mt. Morris Processor

/0 Comments/in /by

In order to ensure the health, safety, and security of the public and integrity of the state’s marijuana business operations, today the Cannabis Regulatory Agency (CRA) announced disciplinary action against Sky Labs, LLC, located at 9421 N. Dort Hwy, Mt. Morris, Michigan 48458. Sky Labs will surrender its medical processor license, have stringent compliance requirements placed on its adult-use processor license, and must pay a $100,000 fine.

“When businesses don’t follow the laws and rules that govern the cannabis industry, it is important that they be held accountable for their actions,” said CRA Executive Director Brian Hanna. “It is vital to the health and safety of the public that all licensees in Michigan’s cannabis industry abide by the rules and laws that are in place to protect the public.”

The stringent compliance requirements contained in the consent order and stipulation require Sky Labs to do the following regarding its adult-use processor license:

  • Submit to a full onsite audit conducted by CRA staff and correct any deficiencies.
  • Provide a copy of all standard operating procedures to the CRA.
  • Provide a copy of all logs maintained on a monthly basis, for 12 months.
  • Submit payment for the $100,000 fine.

If Sky Labs fails to timely comply with the terms of this order, its license will be suspended until compliance is demonstrated. The details of Sky Labs’ violations can be found in the disciplinary documents issued by the CRA (link, link, link, link).

To summarize, in part:

In spring 2021, Sky Labs had marijuana vape cartridge concentrates fail safety compliance testing for banned chemical residues. In addition, Sky Labs had a product fail safety compliance testing for Vitamin E Acetate, a target analyte banned for inhalation by the Food and Drug Administration (FDA). During the investigation to determine the cause of these failures, the CRA discovered the record of formulation used in the production of the concentrate did not include the minimum requirements and did not include the test results for the terpenes used in the concentrate.

In September 2021, during an inspection, the CRA observed eleven employees actively working in the production of marijuana products who were not trained on safe food handling and were not in the possession of food handling training certificates. The CRA also observed Sky Labs producing, packaging, and storing vape cartridges in a back trailer without a working video surveillance system. In addition, the CRA observed pre-rolls without statewide monitoring system (Metrc) tags affixed to the pre-rolls, bags, or storage bins. This marijuana product could not be identified on any manifest or in the statewide monitoring system as being sourced from a licensed grower.

In December 2021 and January 2022, CRA audits were performed for multiple Metrc packages tags (packages) from Sky Labs’ inventory; these packages previously received full compliance testing. The packages tested first were not the same packages that were tested for the second time, and/or the packages were not in the same condition at the time of the second testing, even though all the products contained in the packages were sampled from the same Metrc package tag.

In June 2022, Sky Labs distributed Chewii Sour Cherry Edibles to employees of the adult-use processor establishment. Ten employees each received one package containing 20 pieces each. Sky Labs admitted the packages were mislabeled and as a result, were distributed to employees as trade samples. The labels on the edibles displayed a large sticker showing “200 MG CBD” and Sky Labs did not place a THC amount or modifier anywhere on the packages. An employee provided the edibles to her 4-year-old child. The child consumed two edibles which contained 20 mgs of marijuana. The child became seriously ill and was hospitalized due to adverse reactions to the marijuana edibles. A police report was filed with the Davison City Police Department and an investigation was opened with Child Protective Services.

BMMR Rick Johnson and lobbyists to enter pleas in MI medical cannabis licensing bribery probe

/0 Comments/in /by

Rick Johnson, Lobbyists To Enter Plea To Bribery In Marijuana Probe — 10:32 a.m.

Former Michigan medical marijuana board chair Rick JOHNSON, two lobbyists and a fourth individual have signed plea agreements admitting to their role in a bribery scheme involving the state’s marijuana licensing operations.

U.S. Attorney Mark Totten said Johnson, the former House Speaker, accepted more than $100,000 in bribes while serving as chair of the medical marijuana licensing board, including from companies who sought licenses and from their lobbyists.

“To be clear, Johnson accepted these bribes illegally, which is to say he accepted them with the understanding that these bribes were offered to influence him or to reward him for actions that he might take,” Totten said today at a press conference on the lawn of the Charles E. Chamberlin Federal Building at the corner of Townsend and Allegan streets.

“Public corruption is a poison to any democracy,” he added. “Those who wield the power of the state have a sacred responsibility to serve the people they represent. And when a government official takes a bribe they violate that solemn duty.”

Also entering a plea agreement to conspiracy to commit bribery John Dawood Dalaly and registered lobbyists Brian Dennis Pierce, 45, of Midland, and Vincent Tyler Brown, 32, of Royal Oak.

Totten said whether the defendants will serve prison time is not yet known, but the maximum Dalaly, Pierce and Brown face is up to 10 years in prison.

The investigation, which began as early as December 2017, is ongoing. It has included the execution of multiple search warrants and reviewing “a lot of digital evidence,” Totten said, declining to elaborate.

Johnson served as chair of the Michigan medical marijuana licensing board from May 2017 through April 2019

MDARD reminder: Growing hemp to be sold as plant starts

/0 Comments/in /by

As hemp growers prepare for planting season, the Michigan Department of Agriculture and Rural Development (MDARD) is reminding those interested in growing hemp to be sold as plant starts, also known as propagative stock, to remember:

  • You are required to hold a Hemp Grower Registration to grow hemp, of any quantity and to any plant growth stage. Click here for an application.
  • You are required to hold a Hemp Processor-Handler License from the Cannabis Regulatory Agency to process, handle, transport, market, broker, or sell hemp plants (or seed). Click here for the processor-handler application.
  • Hemp Processor-Handlers cannot sell viable hemp plants (or seed) to the public. Hemp Processor-Handlers can sell viable hemp only to registered Hemp Growers or other licensed Hemp Processor-Handlers.
  • Like any hemp crop, each lot of contiguously planted hemp of each variety must be sampled and tested by MDARD prior to being harvested, which includes gathering up immature plants for sale or movement off the grower’s registered growing locations. Click here for steps to request preharvest sampling.
  • Registered growers can also sign up for Performance-Based Sampling (PBS) of immature plants. Instead of paying for MDARD to sample and test lots every time a grower has a batch of immature plants ready for sale, a grower participating in PBS requests sampling of each variety only once per year. If a variety complies with THC testing, no additional sampling is required for the year.
    • Note: Federal and state law allow for PBS plans but otherwise require sampling and testing for THC compliance, even of immature plants. More information about requesting PBS can be found here. MDARD expects to adjust PBS over time with United States Department of Agriculture approval as more data becomes available.
  • Recordkeeping is required. All growers must maintain records showing the name and address of the supplier from whom seed or starts were purchased. Maintain seed labels and Certificates of Analysis, particularly if you are interested in Performance-Based Sampling.

This information is current as of March 2, 2023.

For more information about Michigan hemp licensing for growing and/or processing, and help with licensing applications and associated laws and regulations, please reach Michigan Cannabis Lawyers at (517) 512-8364.

Cannabis Regulatory Agency Summarily Suspends Lansing Processor

/0 Comments/in /by

February 21, 2023 – In order to ensure the health, safety, and security of the public and integrity of the state’s marijuana business operations, today the Cannabis Regulatory Agency (CRA) issued formal complaints and announced summary suspensions of the medical and adult-use processor licenses held by TAS Asset Holdings, LLC, located at 919 Filley St., Suite A, in Lansing.

The CRA also released a Marijuana Consumer Advisory Bulletin to make consumers aware of marijuana products that were combined with illicit marijuana product before being sold in the regulated market. The affected marijuana products are marketed under the brand “Fwaygo Extracts” with the product name “Space Rocks.” The final product – which was not produced in compliance with the statutes and administrative rules – was manufactured between November 10, 2022, and November 17, 2022. Pictures of the affected product are available in the bulletin.

“The conduct alleged in the formal complaints is a significant risk to the public health and safety of marijuana consumers in Michigan,” said CRA Executive Director Brian Hanna. “While we work through the process to seek revocation of these licenses, it is vital that all licensees throughout the state realize that the CRA will continue to do what it takes to protect the public from bad actors in the regulated market.”

The CRA’s formal complaints allege that on September 16, 2022, two packages of vape cartridges failed safety compliance testing for Bifenthrin, a chemical banned from use in the regulated market. Before they were transferred to and processed by TAS Asset Holdings, both packages had passed full safety compliance testing with no Bifenthrin detected.

The CRA began to investigate the cause of the safety compliance test failure. Video surveillance footage showed that the product used to make the vape cartridges was not the same product recorded in Metrc (the statewide monitoring system) that had passed compliance testing.  The product used to make the vape cartridges had not been processed or entered into Metrc as being a part of the regulated market.

During the investigation, CRA staff noted that the business had many areas that were dirty and cluttered and had leaking containers of various process stages of marijuana and waste. The CRA investigators observed an unapproved, unlicensed warehouse being utilized as a part of the licensed business. The CRA investigators also observed various untagged marijuana products including flower, distillate, concentrates, and THCa powder in the unapproved warehouse. In addition, three barrels of an unknown substance that were wrapped in plastic, two black totes of an unknown substance, and several mason jars of oil were discovered. No surveillance cameras were in the unapproved room, and none of the marihuana products found in that room had Metrc tags.

A TAS representative admitted that the business’s signature product, “Space Rocks,” is produced using the untagged THCa powder. The investigation also showed that TAS was storing and interchanging illicit marijuana products with regulated product found at the business. A safe on the premises contained three jars of distillate and five jars of marijuana concentrate that did not have Metrc tags affixed.

A review of video surveillance footage shows that TAS employees were bringing additional unregulated product into the business from their personal vehicle.  The product did not contain a Metrc tag, and its origin could not be tracked to a licensed business.

The formal complaints allege 23 regulatory violations against each of TAS Asset Holdings’ processor licenses. The licensee may request a hearing to contest the allegations in the formal complaints. State law also provides for a hearing to determine whether the summary suspensions should remain in effect.

Marijuana consumers who have experienced adverse reactions after using these products should report their symptoms and product use to their health care providers. Marijuana consumers are encouraged to also report any adverse reactions to marijuana products to the CRA via email at CRA-Enforcement@michigan.gov or by phone at 517-284-8599.

CRA issues fine and suspends Detroit Provisioning Center license for 30 days

/0 Comments/in /by

October 10, 2022 – The Cannabis Regulatory Agency (CRA) ordered today a 30-day suspension of the medical marijuana provisioning center facility license held by The House of Mary Jane – located at 19154 James Couzens, Detroit, MI 48235.  In addition to the suspension, the order requires the payment of a $75,000 fine. The license suspension begins 10 days after the effective date of the order.

Representatives of The House of Mary Jane (“Respondent”) recently signed a consent order, allowing the CRA to treat the following allegations as true for the purposes of resolving the formal complaint:

  • The CRA conducted an unannounced compliance visit at the licensed provisioning center and observed multiple bags, backpacks, and duffle bags of suspected marijuana products that did not have the tracking identification numbers assigned by the statewide monitoring system (METRC) attached.
  • Respondent was advised not to sell or destroy the untagged products until the investigation was completed and until guidance was given by the CRA. The CRA also requested that Respondent provide 30 days of video surveillance coverage required by administrative rule. Respondent failed to provide the 30 days of video surveillance as requested by the CRA.
  • The CRA returned to the provisioning center facility and inquired about the untagged marijuana products; Respondent then claimed to have destroyed the remaining untagged marijuana products. Video surveillance recordings of the product destruction were requested but not provided by Respondent.

“The Cannabis Regulatory Agency has a legal responsibility to protect the health, safety, and welfare of the public,” said CRA spokesman David Harns. “Our licensees must follow all of the rules and laws that govern the cannabis industry. Untagged marijuana products and the inability to provide video footage is simply unacceptable.”

Gov. Whitmer Appoints Acting Executive Director to Cannabis Regulatory Agency

/0 Comments/in /by

LANSING, Mich. — Today (September 15, 2022), Governor Gretchen Whitmer announced the appointment of Brian Hanna as acting executive director of the Cannabis Regulatory Agency (CRA). Effective September 19th, Hanna will join the CRA, bringing extensive experience to fill this vital role within the Whitmer-Gilchrist Administration.

“I am thrilled to welcome Brian Hanna as the new acting executive director of the Cannabis Regulatory Agency, where he will continue putting Michiganders first, growing our economy and creating jobs,” said Governor Whitmer. “The state of Michigan and the CRA are at the forefront of the nation’s hemp and marijuana industry, setting the standard for stimulating business growth and preserving secure consumer access to cannabis. A win for the industry is a win for Michiganders because its tax revenue allows us to invest back into our schools, roads, and other essential services that make a real difference in our communities. I am confident Brian will serve as an excellent leader as the CRA continues establishing Michigan as the national model for cannabis regulations.”

Hanna’s previous service in the Marijuana Regulatory Agency, now CRA, under former Executive Director Andrew Brisbo will ensure he continues the mission and ongoing work of the agency. Hanna spent 5 years with the CRA as the manager of field operations, inspections, and investigations. He has a law enforcement and military background, having previously worked as a criminal intelligence manager and analyst with MSP and as a Deputy Sheriff for Kalamazoo County. He also served as a Captain in the United States Army Reserve with a combat deployment to Afghanistan from 2010-2011. Hanna holds a Bachelor of Arts in Criminal Justice from Western Michigan University and an associate’s degree in law enforcement from Kalamazoo Valley Community College.

“I am excited to return to the Cannabis Regulatory Agency and am grateful for this opportunity,” said Hanna. “I look forward to reconnecting with stakeholders to ensure we have a clear and concise regulatory framework for oversight of this industry to promote continued growth in Michigan. I also look forward to working with the Administration and our legislative partners wherever possible to continue providing safe products to consumers. I’m honored that Governor Whitmer has appointed me to lead this important agency and look forward to getting to work.”

The State of Michigan will conduct a nationwide search to select a permanent executive director for the CRA.