Sixty-seven licensed marijuana businesses in Michigan were fined in November for violating various regulations, with penalties ranging from $333.33 to $19,000. The Michigan Cannabis Regulatory Agency (CRA) revealed the fines in a recent announcement, highlighting widespread issues across the state’s cannabis industry.
Blue Fox Brands Hit With Heaviest Fine
The steepest penalty was imposed on Blue Fox Brands, a Lansing-based marijuana operator, which faced a $19,000 fine. The infractions included noncompliance with Metrc, the state’s seed-to-sale tracking system, as well as surveillance and security shortcomings. This underscores the CRA’s focus on ensuring rigorous compliance with operational and safety protocols.
Blue Fox Brands’ violations served as a stark reminder of the consequences of neglecting Michigan’s stringent cannabis regulations. Surveillance and tracking compliance, pivotal to maintaining transparency in the industry, topped the list of issues.
Common Violations Across the State
The CRA detailed a range of infractions that led to the penalties. These included:
- Annual financial statement noncompliance.
- Failing to report material changes such as changes to legal entities or operational locations.
- General operational issues, including noncompliant sales and handling.
- Noncompliant waste disposal practices.
- Packaging, advertising, sampling, and testing violations.
These violations signal ongoing challenges in maintaining consistent adherence to state standards across Michigan’s marijuana sector.
Detroit Leads in Violations
Detroit, the state’s largest city, accounted for the highest number of cited violations, with eight businesses penalized. Meanwhile, Lansing and Warren tied for second place, each reporting six violations.
This concentration of infractions in urban hubs reflects the complexity of operating in high-demand areas. Regulatory enforcement, already stringent, has intensified under the leadership of Brian Hanna, the CRA’s executive director.
Increased Enforcement Under Brian Hanna
Appointed as executive director in September 2022, Brian Hanna has prioritized strict regulatory compliance within the cannabis industry. His background includes years of service with the Michigan State Police in criminal intelligence and time as a deputy sheriff in Kalamazoo County. Additionally, Hanna served as a captain in the U.S. Army Reserve, specializing in intelligence and civil affairs.
Since his appointment, Hanna has ramped up compliance enforcement, holding operators accountable for lapses in areas critical to public safety and industry transparency. This shift reflects an aggressive stance by the CRA to address ongoing issues and maintain trust in Michigan’s growing cannabis market.