The state of Michigan’s Cannabis Regulatory Agency (CRA) is changing its inspection strategy by moving away from scheduled semi-annual visits to licensed marijuana establishments. Instead, regulation officers will conduct surprise inspections, a move aimed at enhancing oversight and ensuring compliance through Michigan Surprise Inspections.
The CRA believes this shift will offer “more flexibility for scheduling” and increase efficiency, while also helping employees at these businesses become more familiar with the relevant rules and regulations.
The new protocol for unannounced inspections will begin on Oct. 1, though prelicensure inspections will still be scheduled as before.
During a Zoom educational session on Aug. 22, Mandi Cooley and Kevin Cook from the CRA’s enforcement division stressed the “flexibility” of the new process. Cooley explained that the approach would allow for corrective action plans and provide business owners with some autonomy in addressing noncompliance issues.
Cook noted that the CRA does not expect a “flawless” transition, acknowledging that “accommodations” will be made as necessary. The primary goal is to ensure that licensees remain compliant at all times.
CRA spokesperson David Harns reiterated that this transition is designed to increase both efficiency and flexibility for businesses. He emphasized that unannounced inspections aim to ensure that employees understand compliance requirements and the broader business regulations, beyond just their immediate job responsibilities.
Inspection costs will continue to be covered by the fees associated with licensing.
To prepare for these changes, the CRA recommends that owners of licensed cannabis businesses ensure their on-site managers and employees are ready for inspections. This includes being familiar with necessary items such as employee records, standard operating procedures, surveillance systems, and METRC information—the state’s seed-to-sale tracking system. Additionally, businesses are encouraged to utilize checklists available on the CRA’s website to help employees manage inspections smoothly.
The CRA is also working on updating and refining inspection checklists to streamline the process. Regulation officers will reach out to businesses with limited staff or part-time operations to coordinate the best times for inspections, ensuring that inspectors do not arrive to find the establishment closed. Business owners are also reminded to verify the identity of regulation officers by requesting their CRA-issued photo IDs and contacting the Regulation Office’s verification hotline with any questions.
Harns mentioned that previous scheduled inspections have shown a compliance rate of approximately 93%, with minor deficiencies typically being corrected quickly. However, more serious noncompliance, such as issues with METRC tracking or surveillance footage, may lead to investigations, fines, or even license revocation, depending on the severity of the violation.
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