Starting October 1, 2024, the Michigan Cannabis Regulatory Agency (CRA) will replace its current system of scheduled semi-annual inspections at licensed marijuana stores and related facilities with surprise visits conducted by regulation officers. The change is expected to provide more flexibility in scheduling and increase efficiency, while also promoting a better understanding of rules and regulations among cannabis business employees.
During a recent educational session held via Zoom, Mandi Cooley and Kevin Cook from the CRA's enforcement division emphasized the flexibility of the new process, stating that it will be open to corrective action plans and allow business owners some autonomy in addressing non-compliance issues. Cook acknowledged that the transition may not be flawless and that accommodations will be made as needed, with the main goal being to ensure licensees remain compliant at all times.
CRA spokesperson David Harns reiterated the benefits of the new plan, stating, "This will help increase efficiency and flexibility with scheduling. This transition will instill a need for businesses to further educate employees at all levels – not just their job functions as they do now, but also in compliance and understanding of the business requirements."
To prepare for the unannounced inspections, the CRA advises owners of licensed cannabis-related businesses to ensure their on-site managers and employees are equipped to handle inspections by knowing how to access required items such as employee backgrounds, standard operating procedures, logs, surveillance systems, certifications, and METRC information (the state's seed-to-sale monitoring system). The agency also recommends providing employees with inspection checklists available on their website.
The CRA is updating and streamlining inspection checklists and creating documents to be sent out to businesses after an inspection. Regulation officers will also reach out to low-staffed and part-time businesses to better understand when surprise inspections should occur to avoid arriving when the facility is closed.
Harns noted that scheduled semi-annual inspections have shown a regulation compliance rate of approximately 93 percent, not accounting for minor deficiencies that were quickly remedied. Common issues across all business types include METRC tracking and identification, as well as surveillance equipment problems. Minor non-compliance issues are typically resolved through re-inspection, while more serious deficiencies may lead to investigations and potential fines or license revocations.
As Michigan's cannabis industry adapts to this new inspection protocol, businesses are encouraged to prioritize employee education and maintain a high level of regulatory compliance to ensure a smooth transition and continued success in the evolving market.
During a recent educational session held via Zoom, Mandi Cooley and Kevin Cook from the CRA's enforcement division emphasized the flexibility of the new process, stating that it will be open to corrective action plans and allow business owners some autonomy in addressing non-compliance issues. Cook acknowledged that the transition may not be flawless and that accommodations will be made as needed, with the main goal being to ensure licensees remain compliant at all times.
CRA spokesperson David Harns reiterated the benefits of the new plan, stating, "This will help increase efficiency and flexibility with scheduling. This transition will instill a need for businesses to further educate employees at all levels – not just their job functions as they do now, but also in compliance and understanding of the business requirements."
To prepare for the unannounced inspections, the CRA advises owners of licensed cannabis-related businesses to ensure their on-site managers and employees are equipped to handle inspections by knowing how to access required items such as employee backgrounds, standard operating procedures, logs, surveillance systems, certifications, and METRC information (the state's seed-to-sale monitoring system). The agency also recommends providing employees with inspection checklists available on their website.
The CRA is updating and streamlining inspection checklists and creating documents to be sent out to businesses after an inspection. Regulation officers will also reach out to low-staffed and part-time businesses to better understand when surprise inspections should occur to avoid arriving when the facility is closed.
Harns noted that scheduled semi-annual inspections have shown a regulation compliance rate of approximately 93 percent, not accounting for minor deficiencies that were quickly remedied. Common issues across all business types include METRC tracking and identification, as well as surveillance equipment problems. Minor non-compliance issues are typically resolved through re-inspection, while more serious deficiencies may lead to investigations and potential fines or license revocations.
As Michigan's cannabis industry adapts to this new inspection protocol, businesses are encouraged to prioritize employee education and maintain a high level of regulatory compliance to ensure a smooth transition and continued success in the evolving market.