The state’s Cannabis Regulatory Agency is doing away with its semi-annual scheduled inspections at licensed marijuana stores and related facilities, and instead will have its regulation officers conduct surprise visits.

The CRA said the change is expected to “allow more flexibility for scheduling,” and will be more efficient. It will also result in increased knowledge about rules and regulations among the businesses’ employees, according to the CRA.

The new plan for unannounced inspections takes effect on Oct. 1. Prelicensure inspections will still be scheduled.

During an education session held Aug. 22 via Zoom on the transition, Mandi Cooley and Kevin Cook of Michigan’s CRA enforcement division mentioned “flexibility” several times regarding its implementation.

“It will be a flexible process, open to corrective action plans,” Cooley said, adding that business owners will “have some autonomy on how to address” noncompliance issues.

Cook said the CRA doesn’t anticipate a “flawless” transition, and that “accommodations” will be made. He also said a main goal is to have licensees “compliant at all times.”

CRA spokesperson David Harns has a similar take on the new plan.

“This will help increase efficiency and flexibility with scheduling. This transition will instill a need for businesses to further educate employees at all levels – not just their job functions as they do now, but also in compliance and understanding of the business requirements,” he said. “The goal of unannounced inspections is that licensees are compliant at all times and employees have a solid understanding of the regulations surrounding their place of work.”

Inspection costs are covered by licensing fees.

Getting ready

To get ready for the change, the CRA suggests owners of licensed cannabis-related businesses prepare on-site managers and other employees to handle inspections by knowing how to access required items such as employee backgrounds, standard operating procedures, logs, surveillance systems, certifications and METRC information — the state’s seed-to-sale monitoring system — and more. It’s also recommended that owners provide employees with checklists on inspections, available at the CRA website www.michigan.gov/cra.

The CRA is preparing for the new procedure by updating and streamlining inspection checklists, and creating documents to be sent out to businesses after an inspection, Cook said. Also, regulation officers will be reaching out to businesses that are low-staffed and/or open part-time to get a better understanding of when a surprise inspection should happen rather than arriving to find the place closed.

Cooley said the CRA “is working on the process” for what to do if a business isn’t open when an inspector shows up.

Further, business owners are urged to ask regulation officers for their CRA-issued photo IDs, and to contact the Regulation Office’s verification hotline with questions. An email blast will be distributing the hotline number only to licensees.

So far, Harns said, scheduled semi-annual inspections have shown a regulation compliance rate of approximately 93 percent, “not accounting for minor deficiencies found during the inspection which were remedied quickly.”

“All business types have their common issues,” he said. “Generally speaking, METRC tracking and identification – along with surveillance equipment issues – tend to be fairly common across the board.”

Non-compliance of “minor issues” such as standard operating procedures and labeling are typically resolved through re-inspection, Harns noted, and unlikely to be subjected to further investigation.

But for “more egregious noncompliance” such as deficiencies in METRC tracking/identification or not keeping 30 calendar days of surveillance footage, for example, an investigation can be expected. Fines or license revocation are possible based on what the investigation reveals, he said.

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