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

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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

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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.

CRA Public meeting scheduled for 09/14/22

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The Cannabis Regulatory Agency (CRA) will hold a public meeting on Wednesday September 14, 2022, at 9:30 A.M. For meeting information please see the Public Notice Announcement by clicking here.

The purpose of this public meeting is to hear complaints and receive the views of the public on CRA’s administration of the authorities, powers, duties, functions and responsibilities under Michigan’s marijuana laws.

Specifically, the CRA is seeking public input on the following topic:

The agency has been hearing concerns that the supply of marijuana produced by licensed growers exceeds, or may soon exceed, consumer demand. The concerns include that the wholesale price of flower is lower than the cost of production – or will be when harvests are highest in October. Background data from CRA monthly reports:

  • Between July 2021 and July 2022, the average retail price for an ounce of flower has declined 48% in the medical market (from $213.89 to $110.72) and 44% in the adult-use market (from $217.94 to $121.58).
  • Between July 2021 and July 2022, the number of plants being grown by medical and adult-use growers has increased as follows:
  • Immature plants – 48% (from 282,945 to 417,469).
  • Vegetative plants – 295% (from 228,611 to 903,115).
  • Flowering plants – 69% (from 309,554 to 521,997).
  • Between July 2021 and July 2022, the number of active grower licenses* has increased 65% and the number of active retail licenses** has increased 34%.

* Includes all medical and adult-use grower licenses of all classes, does not include microbusinesses or class A microbusinesses.

** Includes all medical provisioning centers and adult-use retailers, does not include microbusinesses or class A microbusinesses.

Questions for consideration:

  1. Would you support a change in the law to place a moratorium on the issuance of grow licenses? If so, under what conditions? If so, for what period of time?
  2. Should the agency eliminate the excess grower license established in the administrative rules, as authorized by Sec. 8(2)(a) of the MRTMA [MCL 333.27958(2)(a)]?
  3. Should the agency promulgate a rule as authorized by Sec. 9(3)(d)(3) of the MRTMA [MCL 333.27959(3)(d)(3)] to authorize an individual to hold an interest in more than five marijuana growers or in more than one marijuana microbusiness after January 1, 2023?

While the public hearing will be held in person, members of the public will also have the opportunity to attend, participate, and give public testimony via Zoom. The CRA encourages members of the public to participate and provide recommendations to the CRA.

 

Keep up to date on Michigan’s evolving licensed cannabis landscape by staying tuned to Michigan Cannabis Lawyers. Call us today at (517) 512-8364.

CRA Guidance for Tinctures

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Tinctures are not defined in either the Medical Marihuana Facility Facilities Licensing Act (MMFLA) or the Michigan Regulation and Taxation of Marihuana Act (MRTMA). When a term is not specifically defined in statute, the Cannabis Regulatory Agency (CRA) uses the plain meaning of the term as defined in the dictionary. As a result, CRA policy has been that a product labeled as being a tincture must contain alcohol.

The CRA recently reviewed products produced and sold by several licensees that are labeled and sold as tinctures. The products appeared to be non-compliant because they were labeled as a tincture but contained no alcohol and exceeded the allowable THC limit of 100 mg per container in the adult-use market.

The CRA has been notifying licensees that the sale of these products is a violation. In response, many licensees have expressed concern about the lack of a clarifying statutory definition, common industry practice in other states, and residual solvent compliance testing for tinctures.

To address these concerns until a long-term solution can be implemented, the CRA will allow licensees to make the necessary changes to packaging, labeling, formulations, and recipes, and take no disciplinary action against licensees regarding product that is currently available for sale or transfer for 60 days from the date of this bulletin (August 30, 2022).

For more help navigating Michigan’s cannabis laws and rules, be sure to reach out to Michigan Cannabis Lawyers at (517) 512-8364.

MI Cannabis Regulatory Agency withdraws request for hemp-conversion rulemaking

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April 15, 2022 – Lansing, Michigan:

Michigan’s Cannabis Regulatory Agency (formerly Marijuana Regulatory Agency) announced its intent to withdraw proposed rulemaking request to allow licensed conversions of hemp-based CBD to D9 THC due to negative feedback:

After receiving a significant amount of public comment regarding safety concerns and the lack of scientific and public health data related to the conversion process outlined in the proposed Industrial Hemp Rules for Marihuana Businesses (2021-92 LR), the Cannabis Regulatory Agency (CRA) has withdrawn this request for rulemaking. The CRA will submit a new request for rulemaking for the Industrial Hemp Rules for Marihuana Businesses rule set to propose the limit(s) on total THC for industrial hemp products as required by recent legislative updates to the Michigan Regulation and Taxation of Marihuana Act (MRTMA).

Follow Michigan Cannabis Lawyers on Instagram @micannabislawyers to stay informed on updates to Michigan cannabis and hemp licensing laws and practices.

2021 Tax revenue sharing for Adult Use Retail and Microbusiness communities

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LANSING, Mich. – The Michigan Department of Treasury today announced that more than $42.2 million will be distributed among 163 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.

Next week, 62 cities, 15 villages, 33 townships and 53 counties will be receiving payments from the Marihuana Regulation Fund. For the state of Michigan’s 2021 fiscal year, this means each eligible municipality and county will receive more than $56,400 for every licensed retail store and microbusiness located within its jurisdiction.

“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”

Revenue was collected from 374 licensees among the state’s cities, villages and townships during the 2021 fiscal year. Some of these municipalities host more than one licensed retail store and microbusiness.

For the 2021 fiscal year, more than $111 million was collected from the 10% adult-use marijuana excise tax. In total, there was $172 million available for distribution from the fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the more than $42.2 million in disbursements to municipalities and counties, $49.3 million was sent to the School Aid Fund for K-12 education and another $49.3 million to the Michigan Transportation Fund.

In total, more than $1.1 billion in adult-use marijuana sales was reported for fiscal year 2021.

“It’s rewarding to see that the agency’s balanced regulatory approach is effectively protecting consumers while still allowing Michigan businesses to grow and thrive,” said MRA Executive Director Andrew Brisbo. “The funding provided directly to local governments – and the thousands of jobs created across the state – show that Michigan is leading the way in the cannabis industry.”

Michigan Hemp supplier license [Watch this space]

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Attention #Michigan Hemp growers and clone nurseries: A recent update from the Marijuana Regulatory Agency (available here: https://www.michigan.gov/mra/ero-hemp-transition-faqs) indicates that MDARD (Michigan Department of Agriculture and Rural Development) will soon be working to introduce a Hemp Supplier license.

If you are interested in clone shipping and hemp shipping in or from Michigan, get with Michigan Cannabis Lawyers for more details and advice on staying in full compliance with rapidly changing Michigan laws. Call us at (517) 512-8364.

 

MRA announces updated Rules and fee levels

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Effective March 7, 2022, new MRA Rules, license type, and fee levels will be implemented. Please see below for details from Michigan’s MRA.

For up to the minute news, advice, and cutting edge legal representation, be sure to contact the Michigan Cannabis Lawyers at 517 512-8364.

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March 4, 2022 – In an effort to continue stimulating business growth while preserving safe consumer access to marijuana, the Marijuana Regulatory Agency (MRA) has updated the administrative rule sets, effective Monday, March 7, 2022. As a result of the update, there will be numerous changes occurring on the website and to the forms, applications, and various publications. Highlights of the rules and process changes are noted below.

License applicants are advised that the applications, step-by-step instructions, and other educational resources that were previously available on the MRA website for adult-use establishments and medical marijuana facilities are being updated to comply with the updated rule sets. Additionally, the MRA advisory and technical bulletins are being updated, as applicable.

Applicants and licensees are encouraged to obtain applications and forms directly from the website to ensure they are using the most up-to-date materials. Previous versions of the medical and adult-use applications will not be accepted. To ensure applications are processed as quickly and efficiently as possible, applicants are encouraged to submit applications through the online application portal, Accela Citizen Access (ACA). ACA is also being updated to be consistent with the updated rule sets and mirror the changes made to the paper applications.

Highlights of the Rule Changes

New Fees

  • The adult-use and medical marijuana application fees were lowered from $6,000 to $3,000.
  • Adult-use establishment renewal tiers were removed; licensees who have already been invoiced a renewal fee are to pay the fee as invoiced.
  • Medical marijuana facility renewal tiers were removed; this change will take effect for fiscal year 2023 (please refer to the regulatory assessment bulletin that outlined the fees for fiscal year 2022 for medical marijuana facilities).
  • See the Licenses rule set for the full list of new, lower fees for adult-use establishment licenses. Please visit the MRA website and click on the Laws, Rules, & Other Resources link.

New Adult-Use Class A Marijuana Microbusiness License

  • Initial licensure fee is $18,600 and allows a licensee to grow up to 300 plants.
  • Class A marijuana microbusinesses may purchase marijuana concentrate and marijuana-infused products from a processor.
  • Marijuana liability insurance will be required upon licensure and at renewal.

New Adult-Use Educational Research License

  • Applications will only be accepted from organizations that have been accredited by the Higher Learning Commission.
  • Licensees are required to have proof of DEA registration to operate.
  • License is valid for one year and does not carry an application fee, a licensure fee, or a renewal fee to operate.

Application Changes

  • The adult-use requirements for applicant disclosure have been updated to match medical requirements for applicant disclosure; those with less than 2.5% ownership interest are not required to be disclosed.
  • A definition of a trustee was added to the rules.
  • Added a rule that the MRA can administratively withdrawal applications that are over one year old and have had no determination made.
  • Renewal applications may be denied for failure to submit an annual financial statement as required.

Enforcement

  • Documents have been updated; those interested in licensure can find copies on the MRA website by clicking on the MRA Bulletins link and expanding the Technical Bulletins tab:
    • Prelicensure inspection checklist
    • 30-day inspection checklist
    • Semi-annual inspection checklist
    • SCF Inspection Report

Sampling & Testing

  • There have been significant updates to the requirements for sampling and testing of marijuana and marijuana product.
  • There have been modifications to allow more movement of product within the market prior to final, full, safety compliance testing being required.

Operations

  • Contactless and limited contact transactions – including curbside service and drive-thru operations – are allowed, with municipal approval.
  • Product that is required to be destroyed must be destroyed within 90 days.
  • There are updated requirements for Standard Operating Procedures (SOPs).

Declaratory Rulings

  • Set forth a complete rule set outlining the process and requirements for a Request for a Declaratory Ruling from the Agency.

Infused and Edible Products

  • Updated requirements for packaging and labeling of products.

Potential Service Interruption While Making System Changes

Due to the number of changes that need to be made across the MRA website and within ACA, the public may experience brief interruptions to service while the MRA makes these changes.

The MRA appreciates your understanding and patience while the necessary system changes are made.

For questions, please contact MRA-Adult-Use-Marijuana@Michigan.gov.

PROBATION AND THE USE OF MEDICAL MARIJUANA

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Since 2008, the state of Michigan has allowed the use of medical marijuana for patients. But the burning question has continued to ensue, how does this apply to someone on probation? We know that probation departments across the state limit the use of alcohol, and other drugs while an individual is on probation, but when cannabis is medicinal, should it be applied the same? The Court of Appeals has finally recognized that the medical use of cannabis cannot be held against probationers, or even denied. 

PEOPLE OF MI V MICHAEL EUGENE THUE

Michael Thue was arrested in 2019, and ultimately placed on probation. When this occurred the probation department denied Thue the right to use Cannabis, although he held a valid medical card. Thue filed a motion, and argued this was a violation of the MMMA law passed in 2008 which states “A qualifying patient who has been issued and possesses a registry identification card is not subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau, for the medical use of marihuana in accordance with this act.” The Court of Appeals turned to People v Koon, and People v Latz, which both held that when a statute conflicts with the MMMA, the MMMA provides that all inconsistent acts do not apply to the medical use of Marijuana, and so long as the patient is in compliance with the MMMA, they remain immune from such prosecutions. Through their debate, the Court turned to many out of state cases, before ultimately, the Court of Appeals held under People of the State of Michigan v Michael Eugene Thue that a probationer cannot be refused their right to use Medicinal Cannabis, when they remain compliant to the rules of the MMMA. Josh Covert, of the Michigan Cannabis Lawyers stated “This is a win for the many patients Cannabis has proven to help.” If you, or someone you know, is placed on probation, and needs to ensure they may still continue the use of Cannabis while completing this process, be sure to reach out to the Michigan Cannabis Lawyers (Covert Law Firm), and allow one of us to help you through this process and ensure your rights are also not violated!

 

Written By: attorney Ashley Petriches