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An unannounced compliance visit resulted in a 30-day license suspension and $75,000 fine for one of Michigan’s medical marijuana supply centers.
When Cannabis Regulatory Agency (CRA) officials inspected Mary Jane’s home on May 19, 2021 in Detroit, they “observed multiple bags, backpacks, and gym bags containing marijuana products that did not have tracking ID numbers assigned by the statewide surveillance system. (METRC) attached,” according to a complaint released Oct. 10 by the agency.
State officials informed the licensee that none of the product in the unmarked bags could be sold or destroyed until an investigation was completed and the CRA provided tips. Regulators also required The House of Mary Jane to provide video surveillance for the past 30 days, which is required by state administrative rules, according to the complaint.
The licensee allegedly failed to provide video surveillance, and when CRA officials returned to the retail store six days later and inquired about the unlabeled cannabis products, the licensee claimed to have destroyed the remaining evidence with “motor oil and had instructed Waste Management to remove the destroyed product,” according to the complaint.
“The Cannabis Regulatory Agency has a legal responsibility to protect the health, safety and welfare of the public,” CRA spokesman David Harns said in a public statement. “Our license holders must follow all rules and laws that govern the cannabis industry. Unlabeled marijuana products and failure to provide video footage are simply unacceptable.
With the exception of designated consumer establishments or temporary cannabis events authorized under the Michigan Regulation and Taxation of Marihuana Act (MRTMA), a cannabis business must not have cannabis products that are not identified and recorded in the statewide surveillance system. ARC officials requested video recordings of the product’s destruction, as required by state code, but the licensee did not provide the monitoring, according to the complaint.
In light of the disciplinary action taken against The House of Mary Jane, ARC officials have distributed a notice to its licensees reminding them that Michigan’s administrative rules require, in part, all of the following:
- Cannabis businesses must not have any cannabis product without a lot number or label or identification tag;
- A licensee must retain surveillance records for at least 30 days, except in the event of an investigation or inspection by the agency, in which case the licensee must retain the records until the agency l ‘informs that the recordings can be destroyed; and
- Licensee’s monitoring records are subject to inspection by the agency and must be retained in a manner that enables the agency to view and obtain copies of the records immediately upon request.