Marijuana Licensing

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CRA Announces New Testing Requirement for MCT Oil

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June 27, 2024 – Today, Michigan’s Cannabis Regulatory Agency (CRA) issued a technical bulletin announcing that MCT (medium-chain triglyceride) oil will be added as a target analyte for marijuana vape cartridges as part of the Sampling and Testing Technical Guidance for Marijuana Products, effective October 1, 2024.

MCT oil, commonly derived from coconut or palm oil, is primarily used in oral supplements and food products. However, when aerosolized and inhaled, MCT oil may pose dangers to respiratory health. Inhalable marijuana products that fail testing for MCT oil cannot be remediated.

“From a public health and safety standpoint, the potential for adverse effects with MCT oil underscores the importance of safety guidelines for product development,” said CRA Executive Director Brian Hanna. “Michigan’s licensed marijuana businesses must prioritize respiratory safety when formulating or using inhalable products, opting for ingredients that have been thoroughly evaluated for their compatibility with lung health. I look forward to when our new state reference laboratory is up and running, advancing the health and safety of Michigan cannabis consumers with advanced testing for diluents.”

“Several of our retail members have been proactively pulling and testing their inventory to ensure the brands they showcase on their shelves do not contain MCT oil,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association. “Moving forward, this testing will take place before the retailers purchase inventory from producers, easing the burden on retailers and ensuring that the products they sell are safe. Required testing for MCT oil will further protect cannabis customers from vape-related lung illnesses and is a win for both the industry and consumers.”

“I fully support the state’s decision to restrict the use of MCT oil in vape cartridges,” said MiNORML Executive Director Anqunette Sarfoh. “The health and safety of cannabis consumers must always be our top priority. Emerging evidence suggests that inhaling MCT oil can pose serious respiratory risks, and it’s imperative that we take proactive measures to prevent potential harm. By enforcing stricter regulations on vape product ingredients, Michigan is taking a significant step towards ensuring a safer cannabis industry for everyone and we commend the state’s commitment to protecting consumers.”

“I applaud the CRA’s decision to ban the use of MCT oil in all regulated vape cartridges,” said Anton Harb Jr., an Iraq combat veteran and founder of the Veteran Access Program in Michigan. “As the cannabis industry matures, so will the scientific and regulatory safety measures protecting it. This regulatory decision helps ensure the continued safety and well-being of all Michigan cannabis consumers.”

The CRA is committed to evidence-based decision-making when implementing technical guidance for licensed laboratories. As research into marijuana use, safety, and testing advances, the Sampling and Testing Technical Guidance for Marijuana Products may be revised and updated to reflect these changes.

Michigan CRA Issues Recall Bulletin and Product Advisory Bulletin

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May 15, 2024 – In the interest of public health and safety, the Cannabis Regulatory Agency (CRA) issued a recall bulletin for 1,098 units of infused pre-rolls produced by Flavor Galaxy LLC (license no. AU-P-000373), located at 21015 John R Road, Hazel Park, MI 48030.

In its investigation, the CRA discovered that Flavor Galaxy LLC did not submit certain infused pre-rolls for testing in their final form. The statewide monitoring system (Metrc) indicated that the infused pre-rolls only had safety compliance testing for raw marijuana flower and potency and were not tested after Flavor Galaxy LLC added cannabis distillate and/or terpenes to the product. Consumers who purchased a Flavor Galaxy LLC produced infused pre-roll (with AU-P-000373 on the package label) between November 25, 2023, and May 6, 2024, should check the recall bulletin to determine if the product is subject to recall.

In addition, the CRA issued a product advisory bulletin alerting marijuana consumers to marijuana products that were not properly tracked in the statewide monitoring system (Metrc) by Flavor Galaxy LLC. In its investigation, the CRA reviewed Metrc and discovered that Flavor Galaxy LLC added marijuana product to numerous packages of pre-rolls after the packages had been sampled by a licensed laboratory for compliance testing. Metrc information also showed that Flavor Galaxy LLC added marijuana product to numerous packages of vape cartridges after the packages had been sampled by a licensed laboratory for compliance testing. A link to the Metrc tag numbers for affected products can be found in the product advisory bulletin.

Marijuana consumers who have experienced adverse reactions after using these products should report their symptoms and product use to their health care provider. 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. For more information about the CRA, please visit www.michigan.gov/CRA.

Cannabis Regulatory Agency Issues Reminder Regarding Illegal Sales of Marijuana in Michigan

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April 23, 2024 – Today, Michigan’s Cannabis Regulatory Agency (CRA) reminded licensees and businesses of their roles and responsibilities regarding the selling of cannabis in Michigan.

Under state law, THC is defined to include THCA and marijuana, generally, is defined as cannabis in any form with a THC concentration greater than 0.3%. Therefore, cannabis in any form with a concentration of THC (including THCA) greater than 0.3% is, by definition, marijuana. Under the Medical Marihuana Facilities Licensing Act (MMFLA), marijuana and industrial hemp have the same meaning as defined in the Michigan Regulation and Taxation of Marihuana Act (MRTMA).

If law enforcement identifies an unlicensed business selling cannabis in any form with a concentration of THC (including THCA) greater than 0.3%, they can seize the product and the offenders may be subject to criminal charges.

“A person not licensed under the MRTMA or MMFLA who sells marijuana or possesses marijuana in quantities greater than allowed by statute is in violation of state law and the CRA will refer potential criminal complaints to the Michigan State Police,” said CRA Executive Director Brian Hanna. “We work shoulder to shoulder with law enforcement to ensure the health and safety of cannabis consumers in Michigan.”

“The Marijuana and Tobacco Investigation Section of the Michigan State Police is a key strategic partner of the CRA, and we are committed to investigating retailers who would offer for sale marijuana products and derivatives in violation of state law,” stated D/F/Lt. Thomas Kish, commander of the MSP Marijuana and Tobacco Investigation Section. “Further, both the MSP and CRA share health and safety concerns for consumers participating in Michigan’s licensed adult-use market and we will work diligently to do what we can to ensure these products meet all regulatory standards for safety.”

If members of the public witness businesses selling any cannabis in any form with a concentration of THC (including THCA) greater than 0.3%, without a license, or if employees suspect that their employer is selling cannabis in any form with a concentration of THC (including THCA) greater than 0.3%, without a license, they are encouraged to reach out to local law enforcement, the Michigan State Police, or the Cannabis Regulatory Agency.

CRA Warns of Specific Scam Targeted at Michigan Licensed Cannabis Businesses

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The Cannabis Regulatory Agency (CRA) is issuing this bulletin to notify licensed marijuana businesses about recent fraudulent activity in the cannabis industry.

This week, the CRA was informed by a CRA-licensed business that they were contacted by an individual claiming to work for the CRA and asking for immediate payment of licensing fees under the threat of license revocation.

The CRA reminds licensees that all communications from the CRA will come through Accela or from a Michigan.gov email address and that the CRA will not call licensees to collect payment of fees. In addition, the CRA reminds licensees that the CRA does not accept alternative payment methods such as Bitcoin.

Licensees are encouraged to have their staff verify the validity of a call or text with a manager or owner before processing any payments to an individual claiming to be from the CRA. Licensees and applicants are reminded that the administrative rules require they notify the CRA and local law enforcement within 24 hours of becoming aware – or within 24 hours of when they should have been aware – of the theft or loss of any product or criminal activity at the marijuana business.

Incidents of fraudulent activity or attempted fraudulent activity that coincide with the above themes should be reported to the CRA using the online reporting form process and should be reported to local law enforcement. Questions can be sent to the Cannabis Regulatory Agency Field Operations Section at CRA-CSS@michigan.gov.

FY25 Budget Recommendation – elimination of monthly Metrc subscription fee

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LANSING, MI – February 16, 2024: Cannabis Regulatory Agency (CRA) Executive Director Brian Hanna applauded Governor Gretchen Whitmer’s Fiscal Year (FY) 2025 Executive Budget Recommendation, which includes additional support for the agency’s initiatives.

This year’s budget is balanced, fiscally responsible, does not raise taxes on Michiganders, and contains support for key CRA initiatives, including:

  • Eliminating the monthly subscription fees that licensees currently pay to access the statewide monitoring system
  • Increased support to combat illicit activity in the cannabis market
  • Improved enforcement efforts and workload management within the Licensing Division
  • Reducing wait times for fire safety inspections

“We are excited to continue moving forward with support for our key initiatives, which stakeholders have indicated are important for a thriving and growing cannabis market,” said Hanna. “By removing the burden and cost of the monthly subscription to the statewide monitoring system, the CRA is investing in the stability and long-term success of the legal market. Increased support for combating illicit activity, improving enforcement efforts, and increasing safety with fire inspections will help us continue to support our state’s licensed businesses.”

“We applaud Governor Whitmer for putting forward a comprehensive budget for our program that will address a number of urgent requests from our members,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association (MiCIA). “The budget contains several important allocations that will increase safety, reduce businesses’ regulatory costs, and increase profitability for law abiding operators by increasing enforcement against illicit activity in our market. As we work toward the continued improvement of our industry, we appreciate the Michigan Cannabis Regulatory Agency’s willingness to listen to our concerns and take action to address them.”

CRA Issues $212,000 Fine and 30-Day Suspension of Vassar Licensee

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January 25, 2024 – Today, the Cannabis Regulatory Agency (CRA) issued a $212,000 fine and a 30-day suspension of 664 Vassar, LLC, dba Premier Provisioning Center #2, located at 664 State Rd., Vassar, Michigan 48768.

664 Vassar, LLC’s license shall be suspended from Saturday, February 3, 2024 through Sunday, March 3, 2024.

On April 21, 2022, the CRA visited 664 Vassar, LLC to conduct a compliance check and found the following at its facility:

  • Several clear totes containing expired marijuana products including distillate carts, medicated syrup, gummies, and chocolates stored in the “bathroom area” located upstairs in the northern most east backroom. This product was not under video surveillance.
  • 15 separate strains of individually bagged untagged flower in a large black garbage bag located in the upstairs central storage area. This product was not under video surveillance.
  • Untagged “House wax” in individual 1-gram jars and 1-ounce sheets. This product was not under video surveillance.
  • Approximately 38 jars of house wax on the sales floor and several sheets of house wax on the sales floor. Both products, although in different forms, contained the same statewide monitoring system (Metrc) tag number.
  • Chemicals – specifically, Round Up pesticide – stored on the landing area leading to the upstairs where marijuana product is stored.
  • Several hundred small, 1-gram jars of caregiver “house wax,” a marijuana product, stored in cardboard boxes.
  • Untagged medicated syrup called ‘Chill Medicated,” a marijuana product.

On April 22, 2022, the CRA requested video surveillance footage from all camera views for the past 30 days. 664 Vassar, LLC provided the requested footage on May 10, 2022 but the video footage would not play completely and did not show how the abovementioned products entered the facility. 664 Vassar, LLC was unable to provide a working copy of 30 days of video surveillance footage as requested by the CRA.

Further details can be found in the related formal complaints and consent orders:

Adult-Use Consent Order and Stipulation

Adult-Use Amended First Superseding Formal Complaint

Medical Consent Order and Stipulation

Medical First Superseding Formal Complaint

664 Vassar, LLC must comply with the following within 40 days:

  • Provide updated standard operating procedures (SOPs) for the following: the statewide monitoring system (Metrc), sales and transfers of marijuana and marijuana product, video surveillance system, storage of marijuana and marijuana products, and storage of chemicals and solvents. 664 Vassar, LLC must correct any deficiencies identified by the CRA within 30 days of receipt of the deficiency notice unless agreed upon by the CRA in writing.
  • 664 Vassar, LLC must train all managers and employees on the updated SOPs, and provide a document, signed by a manager, with the names and positions of all managers and employees trained, dates of completion for each; and provide a written training agenda, and copies of all training materials.

664 Vassar, LLC must comply with the following terms within 160 days:

  • 664 Vassar, LLC must schedule a date to destroy all of the untagged marijuana and marijuana product at issue in paragraph 6.b. in the amended first superseding formal complaint in the presence of a CRA staff member and provide video surveillance proof demonstrating compliant destruction.
  • 664 Vassar, LLC must conduct an inventory audit and provide a report to the CRA demonstrating that its physical inventory matches inventory in Metrc and explaining any discrepancies.

CRA Administrative Rules Correction: National Poison Control Hotline phone number UPDATE

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An error in the Cannabis Regulatory Agency’s administrative rules has been corrected.

Old/incorrect:

• 504(4) “National Poison Control Center Hotline 1-800-222-1212,”

New/correct:

• 504(4) “National Poison Control Center Hotline 1-800-222-1222,”

CRA Adds Former Licensee to Michigan’s Marijuana Industry Exclusion List

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December 14, 2023 – On November 14, 2023, the Cannabis Regulatory Agency issued a consent order and stipulation, resolving the formal complaint that had been issued on March 31, 2023, against the medical marijuana provisioning center license PC-000254 of Clark Street Investment Group Inc. dba The Reef, located at 6640 E. 8 Mile Road, Detroit, Michigan 48234.

Clark Street Investment Group Inc. dba The Reef and Anthony Czuchra are permanently prohibited from applying for or otherwise seeking any new marijuana business license in the State of Michigan; exercising managerial control over a such a business; or otherwise meeting the criteria to be deemed an applicant, supplemental applicant, or otherwise subject to a background investigation of any such business.

In addition, Clark Street Investment Group Inc. dba The Reef and Mr. Czuchra are permanently prohibited from obtaining any new ownership interest in a licensed marijuana business in the State of Michigan. Mr. Czuchra is permanently prohibited from being employed or working in any capacity at a licensed marijuana business in the State of Michigan, including but not limited to, performing the functions of a regular or managerial employee, rendering any services as an independent contractor, or rendering any services via another party.

The following lapsed or closed licenses held by Clark Street Investment Group Inc. dba The Reef and Anthony Czuchra, will not be renewed, reinstated, reissued, or reactivated, limited or otherwise, at any future date: PC-000254, GR-C-0001040, GR-C-0001041, GR-C-0001021.

On October 13, 2022, the CRA received a complaint alleging Clark Street Investment Group Inc. dba The Reef was selling marijuana product to individuals without a medical marijuana card. On November 29th, CRA investigators made an unannounced site visit to the provisioning center.

The factual allegations are detailed in the formal complaint and resulted in 14 counts of violated administrative rules in the following categories:

  • Licensees may sell or transfer marijuana to a registered qualifying patient or registered primary caregiver only after it has been tested and bears the label required for retail sale.
  • Licensees must accurately identify, enter, and track all transactions, current inventory, and other information into the statewide monitoring system as required.
  • Licensees must not have marijuana products that are not identified and recorded in the statewide monitoring system, nor without a batch number or identification tag or label.
  • Marijuana product that is to be destroyed or is considered waste must be rendered into an unusable and unrecognizable form.
  • Licensees must securely lock the marijuana business.
  • Licensees must ensure the video surveillance system records any areas where marijuana products are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the marijuana business.
  • Marijuana products sold or transferred must be clearly labeled with the tracking identification numbers assigned by the statewide monitoring system affixed, tagged, or labeled and recorded, and any other information required. Before a marijuana product is sold or transferred, the container, bag, or product holding the marijuana product must be sealed and labeled with all of the required information.
  • Licensees may not advertise a marijuana product in a way that is deceptive, false, or misleading, or make any deceptive, false, or misleading assertions or statements on any marijuana product, sign, or document provided.
  • Licensees must ensure that employees handle marijuana product in compliance with Current Good Manufacturing Practice, Hazard Analysis, and Risk Based Preventative Controls for Human Food, 21 CFR part 1107.
  • Consumption of food and beverages by employees or visitors is prohibited where marijuana product is stored, processed, or packaged or where hazardous materials are used, handled, or stored.

Clark Street Investment Group Inc. dba The Reef and Anthony Czuchra have been added to Michigan’s marijuana industry exclusion lists, which are available online and include individuals excluded from participating in the licensed marijuana industry in Michigan.

Licensees must screen prospective employees, supplemental applicants, and owners against the exclusion list as they are prohibited from employing excluded individuals or allowing them to be supplemental applicants on a license.