The Michigan Cannabis Regulatory Agency (CRA) has initiated formal legal proceedings against One Love Labs, LLC, an adult-use cannabis processor operating under license number AU-P-000519. Located at 1271 Eden Way, Suite P in Chesaning, Michigan, the business faces serious allegations that could lead to significant penalties, including fines, license suspension, or even revocation.
The CRA's complaint, filed on July 31st, 2024, accuses One Love Labs of multiple violations of the Michigan Regulation and Taxation of Marihuana Act (MRTMA) and associated administrative rules. These allegations are based on findings from a CRA investigation that began in June 2024.
The formal complaint outlines several critical violations:
Improper Transfer and Mislabeling: On June 25th, 2024, One Love Labs accepted a shipment of 50,067 grams of product identified as CBD isolate. However, the CRA determined that the product was actually cannabis. The shipment originated from an Oregon-based industrial hemp processor, not a licensed cannabis business, and was delivered via UPS, bypassing Michigan's requirement for secure transport by a licensed provider.
Mixing of Products Without Proper Testing: The CRA alleges that One Love Labs mixed the received isolate with five grams of THCA oil they had produced. This new mixture was labeled and logged in Michigan's statewide monitoring system (Metrc) under a new tag, but without ensuring all necessary compliance tests had been passed before creating the new product.
Non-Compliance with Testing Protocols: During an inspection on June 29th, 2024, CRA agents found that the company had failed to properly sample and test the combined product. Video surveillance indicated that samples were taken only from one bucket, while the other nine remained sealed. This improper sampling resulted in incomplete and unreliable testing, which is a direct violation of the state's strict testing regulations.
Premature Transfer of Product: Despite pending test results, One Love Labs transferred all 10 buckets of the questionable isolate back to the originating Oregon processor on July 3rd, 2024, in an apparent attempt to avoid further scrutiny.
The CRA's complaint underscores the potential penalties One Love Labs could face, including the suspension, revocation, or restriction of their operating license. The CRA also has the authority to refuse license renewal or impose significant fines. One Love Labs has the right to request a hearing within 21 days of the complaint to contest the allegations or negotiate a compliance agreement.
One Love Labs must decide how to respond to the complaint, whether by requesting a hearing or attending a compliance conference to discuss the allegations and potentially resolve the issues without further legal action. If they fail to respond, the CRA will proceed with a contested case hearing to determine the appropriate sanctions.
These allegations against One Love Labs, if proven, highlight the importance of strict adherence to Michigan's cannabis regulations and the potential consequences for those who fail to comply.
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