Michigan’s Cannabis Regulatory Agency has been on a tear over the last month issuing more than $4 million in fines and revoking at least 20 operator licenses for rule violations.
The CRA revoked Budbridge LLC’s retailer license Oct. 1 and issued a fine of $251,250 over allegations that the cannabis vendor transferred hundreds of vape cartridges to two social media influencers over the summer, in violation of the state’s transaction limits. Those transfers were allegedly split into numerous smaller transactions in what the CRA claimed was an attempt to skirt purchasing limits.
Budbridge allegedly gave 200 cartridges, each containing 2 grams of oil, to influencer Eva Lester, valued at roughly $5,400 according to the state’s report, and 487 vape cartridges to influencer Porsche Williams, with an estimated worth of $4,383. The size of the cartridges in the second set was not specified by the state report. Neither individual could be reached for comment.
“Deliberately bypassing purchase limits is a serious violation of the responsibilities that come with a marijuana license,” said CRA Executive Director Brian Hanna in a statement. “Licensed retailers must verify identification, accurately track their inventory, and follow the law every time they transfer product.”
A few days prior, the CRA pulled 20 cultivation licenses held by GP Holdings LLC doing business as Millie Montana Industries, and issued the company $2 million in fines. The company allegedly transferred post-harvest plant waste, also known as shake, to licensed processors with labels that identified the material as cannabis flower.
“Shipping dirt and mulch under manifests identifying it as marijuana flower is egregious conduct that strikes at the integrity of Michigan’s regulated marijuana market,” said Hanna.
Following an investigation into the claims about the mislabeled product, the CRA inspected Millie Montana Industries’ cultivation site and found numerous large bags full of untagged flower and stems. The inspection also found labeled product that did not match the weight of product that was entered into the state’s Metrc tracking system.
“Respondent admitted to the CRA that it was unfamiliar with how to enter product weight into Metrc. Respondent also admitted to the CRA that it did not weigh the product associated with the [previously identified shake transfers’] manifests for accuracy,” said the Department of Licensing and Regulatory Affairs’ 55-page order. “Additionally, Respondent admitted to not having a Standard Operating Procedure regarding its drying process.”
The CRA shut down, effective Sept. 24, the adult-use and medical processor licenses held by Michigan Investment 10 LLC, and issued a $2 million fine after regulators discovered several violations from the operator, including allegedly repackaging product that previously failed testing for banned chemicals under a new label, combining it with product that was previously untested. The operator also allegedly converted product that failed testing into distillate.
While the alleged repackaging was taking place, the facility’s surveillance cameras were pointed toward the wall, preventing it from catching any of the reported activity on video.
Michigan currently has 2,469 active cultivation licenses, 333 active processor licenses and 925 active retail licenses, according to the CRB Monitor database. The state permits cultivators to stack licenses at a single address.
None of the businesses involved with the disciplinary actions responded to emailed requests for comment.
Michigan regulators are not the only ones dinging scofflaw operators.
Vermont’s Cannabis Control Board recently revoked the cultivation license for Forbins Finest for “misaligned payments,” while several other operators in the Green Mountain State continue to appeal disciplinary action from the board.
New Jersey’s Cannabis Regulatory Commission reportedly suspended Magic Garden Botanicals’ cultivation license on Oct. 2, after regulators discovered unauthorized and unsecured grow sites outside of the facility on its property.
Meanwhile, the Oklahoma Medical Marijuana Authority suspended licenses for Casper & Grave Smith Inc., along with Snows Herbal Remedy LLC, on Oct. 2. In both cases, inspectors allegedly found inventory discrepancies that implied possible diversion of product.
