Michigan's regulatory body for cannabis, the Michigan Cannabis Regulatory Agency (CRA), is under the spotlight for alleged tardiness in addressing violations within the marijuana business sector. A comprehensive state audit has drawn attention to this delay, igniting concerns over the potential risks posed to consumers.
The Office of the Auditor General, in its review, found that the CRA can take up to two years to implement disciplinary actions against defaulters. This delay is concerning, as timely interventions by the CRA can help mitigate potential risks to cannabis consumers in Michigan and prevent future violations by licensees.
Delving into the details, the audit scrutinized the CRA's approach towards 678 complaints from April 1st, 2021, to September 30th, 2022. The findings were revealing. On average, it took the agency 196 days to discipline businesses cited in 123 of these complaints. The most prolonged disciplinary process extended up to 757 days. The nature of these complaints spanned various segments of the cannabis industry - from production and sales to operations and security.
While the CRA has made some improvements to the complaint process within its jurisdiction and has claimed to prioritize consumer safety-related complaints, the report indicates there's much left to be desired.
The CRA's mandate, as outlined by Sections 333.27303 and 333.27957 of the Michigan Compiled Laws, is clear. It's responsible for taking corrective actions against any infractions and imposing requisite fines or sanctions against violators of marijuana laws.
The standard procedure post any violation report is systematic. After an internal investigation, the CRA issues a formal complaint to the concerned business, detailing the violations and the impending disciplinary actions. At this stage, businesses have the right to contest the complaint. If they choose this route, other state agencies get involved, and the CRA loses control over scheduling these hearings. Post these hearings, a final order specifying the disciplinary action by the CRA is issued.
While the process seems straightforward, the figures tell a different story. Of the 678 formal complaints, only 14% of the completed and 7% of the ongoing complaints seemed to involve a contested hearing. Despite this, the delay in action remains significant. The CRA cited staffing shortages as a significant hindrance in managing the inflow of disciplinary cases during the audit period. To address this, post-audit, the CRA has set metrics to expedite the disciplinary process.
Furthermore, another area of concern is the timely inspections of medical and adult-use marijuana facilities. CRA's inspections are designed to ensure the safe and compliant operations of these facilities, from pre-licensure inspections to post-licensure and periodic checks. These checks help affirm the correct operations of facilities, ensuring the right safety and operational standards, and preventing sales to those under 21. However, between April 1st, 2021, and September 30th, 2022, there were significant delays in these inspections.
Lastly, an urgent need was identified for the CRA and the Department of Licensing and Regulatory Affairs (LARA) to improve security and access controls over their systems, Accela and Metrc. This is crucial to prevent unauthorized data access and ensure marijuana facility and patient data protection.
The state audit has thrown a spotlight on significant areas needing improvement within Michigan's cannabis regulatory framework. While the CRA has recognized some of these issues and is working towards addressing them, it's clear that more robust and timely interventions are necessary to ensure the safety and interests of Michigan's cannabis consumers.
The once-feared "kingpins" of yesteryears are now legally armed investors. While they've traded bullets for lawsuits, the financial stakes remain high.
In Menominee, a quaint city nestled by the northwestern shores of Lake Michigan, allegations of murky ethics, clandestine dealings, and potential conflicts of interest are rife.
Although the Menominee cannabis market doesn't seem too promising at first glance, it's pegged to be worth tens of millions. The high demand isn't primarily driven by the city's residents but by its proximity to Wisconsin, which hasn't legalized the retail sale of recreational cannabis and might not for a few years.
This strategic location has fueled a booming cross-border cannabis business.
Michigan places no cap on the number of cannabis businesses within its communities. Local governments or voter initiatives shape the licensing processes. Many Michigan regions have enacted bans on cannabis enterprises. However, Menominee reversed its stance in October 2020, launching a scoring system for applicants and paving the way for two recreational cannabis stores.
Among the 14 applicants, Rize (operating under First Property Holdings) and the Fire Station clinched the licenses. Those unsuccessful alleged the selection was biased and subsequently sued Menominee.
These companies, including prominent names like Lume, Higher Love, and Green Pharm, found their efforts thwarted in court. Yet, they weren't done.
Before the legal tussle concluded, these cannabis companies proposed a settlement to the city council. They offered to withdraw the lawsuits in exchange for business licenses. The council passed the settlement, 6-3, after the court's decision, leading to another lawsuit alleging conspiracy between Menominee politicians and certain cannabis firms.
Councilwoman Marineau, among the dissenters, remains perplexed over the council's insistence on issuing licenses to companies that previously sued.
The lawsuit points to potential ethics violations. It claims some cannabis company lawyers, notably from OI Holdings, had undue communications with council members who later backed their settlement. A notable link exists between an attorney from OI Holdings and Councilman Josh Jones, brothers. While this potential conflict was declared, it wasn't deemed problematic by the council.
The council's decisions did not go unchallenged. Menominee residents, spearheaded by Adam Michaud, sought to bring the matter before voters. Yet, maneuvers by the city council appear to have sidelined this initiative, sparking another legal challenge alleging a violation of the Open Meetings Act.
Commenting on the ongoing saga, John Chamberlain, a former ethics professor at the University of Michigan, expressed shock. He underscored the importance of transparency, echoing Justice Brandeis's sentiment that "sunshine is the best disinfectant."
While legal maneuvers dominate the current landscape, Chamberlain feels that the essence of democracy and ethical governance shouldn't be lost amidst the legalities.
When Okemos High School senior, Zachary Barker, shares that he's involved in a project about growing and selling marijuana at a high school, eyebrows raise. But the surprise turns to intrigue when he reveals it's for a musical.
"I had them at the edge of their seats until I clarified – it's a musical!" Barker chuckles.
Barker lends his voice to the chorus of "Rocky Mountain High," a budding musical under development at Michigan State University as part of the annual New Musical Laboratory (previously ĭmáGen). This collaborative effort ropes in Broadway veterans, MSU scholars, and local high school talents, representing a partnership between Wharton Center's Institute for Arts & Creativity and the MSU Department of Theatre.
The musical is scheduled for public performances at the Pasant Theatre on September 15th at 7 p.m. and September 17th at 2 p.m.
Helmed by luminaries like Mark Hollmann of "Urinetown The Musical" and the creative duo Kia Beth and Cooper Kofron, "Rocky Mountain High" paints a whimsical picture. The story revolves around a football-centric high school on the brink of financial collapse. The solution? Transform their state-of-the-art stadium into a marijuana greenhouse – a plan not just to save the school but also to counter a conservative televangelist with ulterior motives.
Hollmann expresses his fascination with the script, emphasizing the blend of humor, reality, and larger-than-life characters. He highlights the contemporary relevance, pointing to school funding challenges, the legalization of marijuana, and the ongoing debate around religious influence in education.
Barker and Lucy Prush, a junior from Holt High School, have prior experience with the program and were eager to return. Both laud the script for addressing compelling issues with a comedic twist.
Having been in the works since 2018, "Rocky Mountain High" has undergone several revisions. Workshops in Colorado and New York paved the way for its current iteration at MSU. Hollmann, now the chief composer, appreciates the diversity of musical styles, combining the pop rock vibes from former composer Drew Gasparini with his classic musical theater touch.
A segment in the second act, the marijuana dream ballet, particularly stands out. It offers a blend of diverse musical materials intertwined with dialogue, making it one of the musical's more experimental pieces.
Both Barker and Prush vouch for the program's immense contribution to their growth in musical theater. They emphasize the unparalleled exposure, performing alongside seasoned professionals at the Wharton Center, and the discipline and etiquette inculcated by the rigorous routine.
Moreover, the program offers them invaluable networking opportunities with industry stalwarts and fellow students, which Prush sees as a significant advantage.
Witnessing her enthusiasm, it's evident that "Rocky Mountain High" is more than just a musical; it's an experience, a learning journey, and perhaps the stepping stone to many bright futures in the world of theater.
For more details or to snag your tickets, click here and dive into the musical mayhem of "Rocky Mountain High"!
In the early hours of Friday, September 1st, Southfield police responded to a break-in at Lume Cannabis Recreational Dispensary located at 26760 Lahser Road. Arriving at approximately 2:33 a.m., officers found the establishment's front door open, propped with a wooden stool. As they approached, four individuals sped away in a silver Hyundai, previously reported stolen from Royal Oak on the evening of August 31st.
Engaging in a high-speed chase, the suspects, traveling at over 100 mph on Interstate 696, began discarding stolen goods from the vehicle. The pursuit concluded near Mound Road in Warren, where the suspects made a dangerous attempt to drive south in the northbound lanes. Officers utilized a precision immobilization technique (PIT) maneuver, causing the vehicle to stop. While two suspects remained with the car, two others fled on foot but were quickly detained.
The Southfield police department suspects this group might be linked to several recent break-ins at marijuana dispensaries in Center Line and other neighboring cities.
Southfield Police Chief Elvin Barren addressed the issue: "Southeast Michigan is currently grappling with a surge in car thefts and smash-and-grab incidents. This latest incident in Southfield stands as a clear message. Culprits should think twice before committing crimes here; our officers will pursue and employ all necessary techniques to ensure justice."
The identities of the suspects were withheld at the time of the report. However, their backgrounds shed light on their histories:
The driver, a 21-year-old from Detroit, has prior charges for felony weapons, controlled substance, felony resisting, and obstruction, along with several warrants. Police are now recommending charges for fleeing and eluding, breaking and entering, and driving without a license.
The front-seat passenger, a 27-year-old from Detroit, has a record of felony firearm offenses. He is currently facing charges of breaking and entering, and resisting and obstructing.
One of the rear passengers, aged 20 from Detroit, has no prior offenses but now faces charges for breaking and entering.
The other rear passenger, a 29-year-old from Detroit currently on probation for assault, has a history of carjacking, armed robbery, concealed weapon offenses, felony theft, and multiple warrants, including one for probation violation. The police are now seeking to charge him with breaking and entering and resisting and obstructing.
Between April 1st, 2021, and September 29th, 2022, 18 Michigan doctors issued nearly 62% of the state's 134,709 medical marijuana patient certifications. The Cannabis Regulatory Agency (CRA) raised concerns over this concentration, especially since two doctors alone certified over 23,000 patients, averaging more than 30 patients a day. These certifications, with fees starting around $100, potentially generated revenues exceeding $13.5 million.
In contrast, a 2018 Physicians Foundation survey revealed most doctors felt overworked after seeing 11-20 patients daily. Given these statistics, the audit questioned the legality of certain certifications. Although the vast number of certifications by a few doctors alarmed CRA officials, they stated that privacy laws prevent them from reporting potential unethical behavior.
The CRA ensures that every doctor's credentials are verified with the Michigan's Bureau of Professional Licensing. Most rejections are due to inadequate licensing information. However, the names of the physicians in question have been kept confidential.
Notably, a doctor previously faced a two-year license suspension in 2018 for certifying almost 22,000 medical marijuana patients within a year.
Certified patients can purchase stronger cannabis products and evade a 10% tax on recreational marijuana. Due to these benefits, some applicants might approach doctors who provide certifications without a proper patient-doctor relationship. Michigan law mandates a comprehensive evaluation for such certifications, including a review of medical history and a proper follow-up.
With telemedicine on the rise, many get their medical marijuana card certifications online. Fees usually start at $100. After a brief virtual consultation, some users receive their certification on the same day. The state charges an additional $40 for processing, and certifications are valid for two years.
The Michigan Medical Marijuana Act, established in 2008, allows certified patients to purchase and possess specific marijuana quantities. The CRA manages the program and also verifies caregivers who can grow and produce cannabis products for up to five patients and themselves.
However, both the number of caregivers and patients have seen a decline. The number of registered patients decreased by an average of 5,640 monthly, and caregivers by 875 monthly over the last year.
Moreover, fewer retailers now sell medical-designated cannabis. Initially, the CRA required retailers to have both recreational and medical licenses. Now, many are forgoing the medical license. Currently, 296 stores are licensed for medical marijuana, whereas 704 are licensed for recreational sales.
Michigan witnessed a record-breaking month in July, with cannabis sales soaring to nearly $277 million. The majority of these sales, amounting to $270,603,217, came from adult-use marijuana, while medical marijuana sales stood at $6,143,046. This represents an increase of over $16 million from the previous record set in June.
The data from the Michigan Cannabis Regulatory Agency (CRA) revealed that the predominant form of cannabis purchased was flower, followed by vape cartridges and infused edibles. This information was initially reported by New Cannabis Ventures.
Interestingly, these escalating sales figures are being recorded even as the average cost of marijuana remains notably low. Currently, the price for an ounce of adult-use cannabis is around $98, compared to its cost of approximately $180 in December 2021. The average cost for medical marijuana in July was slightly higher at $102 an ounce.
The Michigan cannabis market's growth is commendable, but the sector isn't without its challenges. The federal prohibition on cannabis means that many businesses in this space lack access to conventional financial services. This restriction has fostered a predominantly cash-driven industry, which becomes an attractive target for criminal activities.
In a notable incident, former Michigan House Speaker Rick Johnson (R), who later chaired the state's Marijuana Licensing Board, was charged in April for allegedly accepting bribes. The charges pertained to the provision of insider information and aid to specific license applicants. Plea agreements were subsequently reached in this case.
Michigan has actively channeled tax revenues from adult-use cannabis sales for research and public welfare. Last year, regulators disclosed plans to allocate another series of grants to fund research into the therapeutic benefits of marijuana for military veterans. In this phase, the CRA proposed granting $20 million to two universities under the Veteran Marijuana Research (VMR) Grant Program.
Additionally, the state announced the distribution of nearly $150 million in marijuana tax revenue last year. This amount was divided among localities, public schools, and a transportation fund.
In a progressive policy shift, Michigan officials recently revised the state's employment guidelines. As per the new rules, most government job applicants will not be subject to pre-employment marijuana drug testing.
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