Michigan Cannabis Regulators Discipline 3 Companies With $16K in Fines

The fines were handed out to license holders in Kalamazoo, Ann Arbor and Bangor for non-compliant transfers, sampling and testing, and shipping.

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Three Michigan cannabis license holders were issued fines of $1,000, $5,000 and $10,000, according to a June 2022 disciplinary action report released July 7 by the state’s Cannabis Regulatory Agency (CRA).

Green Mitten Agricultural Corp., a Class C cultivation license holder near Bangor, was fined $5,000 for allegedly shipping a fresh frozen cannabis product that weighed roughly 1,391 pounds on the shipped manifest but then weighed roughly 1,226 pounds on the received manifest—a difference of 165 pounds—in May 2021.

The company admitted  it waited approximately six months to ship the package to the receiving establishment and did not reweigh the package prior to shipping, and that the product was not properly stored prior to shipment, according to a consent order and stipulation and formal complaint between CRA and the company.

Cross Country Enterprises LLC (doing business as Exclusive Kalamazoo), a state-licensed retailer, was fined $1,000 for allegedly transferring 240 cannabis packages from its Kalamazoo facility to a Grand Rapids facility in February 2021.

Transferring cannabis product from one provisioning center to another is a violation of Michigan law, which states “a provisioning center license authorizes the purchase or transfer of marihuana only from a grower or processor and sale or transfer to only a registered qualifying patient or registered primary caregiver,” according to a consent order and stipulation and formal complaint between CRA and the company.

And Exclusive Brands LLC, a vertically integrated company that operates a Class C grower facility and has four retail locations in the state, was fined $10,000 for allegedly having two Metrc statewide monitoring system tags fail compliance testing for Pyrethrins, a banned chemical residue, in January 2020 at its Ann Arbor facility.

Pyrethrins is a published chemical residue banned by CRA for use in cannabis cultivation. The use of Pyrethrins is in violation of Michigan law, which states the CRA “shall publish a list of banned chemical residue active ingredients that are prohibited from use in the cultivation and production of marihuana plants and marihuana products to be sold or transferred in accordance with the acts or these rules,” according to a consent order and stipulation and formal complaint between CRA and the company.

In all three cases, the conduct described “is a risk to public health and safety and/or the integrity of marihuana facility operations,” according to CRA officials.

The agency’s disciplinary action report released July 7 comes a month after regulators announced enhancements to their public complaint process and continued improvements to the report’s transparency.

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