Cannabis Regulatory Agency Director Brian Hanna said, during the agency’s quarterly public meeting, that if industry members want to see change, the best way may be to talk directly with state lawmakers. CRA enforces the laws, it doesn’t make them.
“We understand that there is oversupply in the state of Michigan,” he said. “We understand that there are people that are still cheating in the regulated environment, and we continue to have enforcement efforts, and we’re looking for greater tools to continue to work on that.”
“If you want to see change in certain policies in this state, please talk to your lawmakers right now,” Hanna said. Cannabis sales in 2024 topped $3 billion, making it a major industry in Michigan.
The CRA announced July 3 that it has adjusted its disciplinary guidelines in response to feedback from stakeholders across Michigan’s regulated cannabis industry. The updates reflect the CRA’s continued commitment to transparency, fairness, and responsible oversight.
“We want to be clear: your voice matters,” said Hanna. “We’ve heard from licensees, advocates, and industry leaders, and we are pleased to make changes that reflect that input. We’ve reduced the fines on nearly 2/3 of the violations in the disciplinary guidelines.”
The disciplinary guidelines are available on the CRA website.
Hanna said challenges include enforcement of licensees, increasing supply and falling prices, unlicensed illicit activity and the proliferation of intoxicating hemp-derived products.More on industry challenges: ‘Life savings are on the line’: Michigan cannabis regulator warns of industry crisis
More on threats to the industry: As Michigan cannabis prices fall, business owners point to other threats to their survival
In recent years, many cannabis business operators in Michigan have been calling for increased enforcement of the industry because they say other operators are cutting corners and are using illicit cannabis in their products. The desire for more enforcement was a major reason Hanna, who had previously worked for the Michigan State Police, was hired as the agency’s executive director in 2022.
To discipline licensees, the agency will file a formal complaint against them, which could result in a licensee paying a fine or reaching a negotiated settlement, for example.
One disciplinary tool the agency would like to have is the ability to immediately suspend a license, which the CRA would do if the safety or health of employees or customers is jeopardized by the continued operation of a business.
The CRA has proposed new rules (required by state law so that the agency can enforce the law), which are making their way through the state’s rulemaking process. In those proposed rules, the CRA has spelled out situations that would put the safety or health of employees or customers at risk and will allow the agency to suspend a license, such as a business possessing marijuana for which the source can’t be determined or a licensee obstructing an agency investigation.
An in-house cannabis testing lab also is currently being built, which will allow the agency to perform investigative testing itself and help with enforcement, such as if they find a sample collected from an operator contains illicit material. Hanna said the lab is expected to be operational in the second quarter of 2026.
When it comes to oversupply issues, Hanna noted that in Michigan, state law does not limit the number of marijuana business licenses that can be issued. An applicant is awarded a license as long as they meet the state’s regulatory criteria, though each municipality that allows sales is allowed to impose its own limits. He showed a chart that illustrates a steady increase in the number of active grower licenses over the past four years, while processor and retailer licenses have remained relatively stagnant in that time.
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