Regulators Issue 30-Day Suspension, $75K Fine to Detroit Cannabis Licensee

An unannounced compliance visit has resulted in a 30-day license suspension and a $75,000 fine for one of Michigan’s medical marijuana provisioning centers.

When Cannabis Regulatory Agency (CRA) officials inspected The House of Mary Jane on May 19, 2021, in Detroit, they “observed multiple bags, backpacks and duffle bags of marijuana products that did not have the tracking identification numbers assigned by the statewide monitoring system (METRC) attached,” according to a complaint released Oct. 10 by the agency.

State officials advised the licensee that none of the products within the unmarked bags could be sold or destroyed until an investigation was completed and guidance was provided by the CRA. The regulators also requested The House of Mary Jane to provide video surveillance for the past 30 days, which is required by the state’s administrative rules, according to the complaint.

The licensee allegedly failed to provide the video surveillance, and, when CRA officials returned to the retail facility six days later and inquired about the untagged cannabis products, the licensee claimed to have destroyed the remaining evidence with “motor oil and had Waste Management remove the destroyed products,” 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 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.”

Except for designated consumption establishments or temporary cannabis events licensed 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 monitoring system. CRA officials requested for video recordings of the product’s destruction, as required by state code, but the licensee did not provide the surveillance, according to the complaint.

In light of the disciplinary action taken against The House of Mary Jane, CRA officials distributed a notice to its licensees reminding them that the Michigan Administrative Rules require, in part, all of the following:

• Cannabis businesses must not have any cannabis product without a batch number or identification tag or label;
• A licensee shall keep surveillance recordings for a minimum of 30 days, except in instances of investigation or inspection by the agency, in which case the licensee shall retain the recordings until the agency notifies the licensee that the recordings may be destroyed; and
• Surveillance recordings of the licensee are subject to inspection by the agency and must be kept in a manner that allows the agency to view and obtain copies of the recordings immediately upon request.