State Audit Unveils Michigan’s Cannabis Oversight: Lag in Business Violation Disciplinary Measures

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In an audit that cast a discerning eye upon Michigan’s Cannabis Regulatory Agency (CRA), a solitary “material condition” emerged as the gravest echelon of evaluation. As the custodian of the state’s cannabis purview, the CRA orchestrates an intricate symphony of licensing, scrutiny, inquiry, and enforcement across the spectrum of cannabis activities, encompassing cultivation, processing, testing, and commercial transactions.

The scrutineers from the Office of the Auditor General unveiled a mosaic of operational tempo. It was unveiled that the CRA’s stride in meting out disciplinary actions wavered, averaging a protracted 196 days, but in instances, extending its languor to a staggering 757 days for the culmination of reprimands tied to 123 formal grievances involving licensees’ infractions.

Within this somber canvas of regulatory performance, an even graver brushstroke found its place. In a realm where 555 formal complaints stood shrouded in the dim light of uncompleted disciplinary action, the passage of time was marked by an average of 529 days, as of the chronological milestone of September 30, 2022.

From the chalice of scrutiny, the prescription for amelioration emerged. The exhortation resonated for the CRA to fortify its procedural edifice, thereby birthing the seeds of timely penal adjudication against the backdrop of discerned violations. The underlying ethos was simple yet consequential: the dance of prompt action functions as the sentinel, warding off potential peril to the well-being of Michigan’s cannabis consumers and the surfeit of transgressions in days yet to unfold.

As the sands of time sifted, the panorama of cannabis endeavor revealed a tapestry woven with 1,353 medical and 1,781 adult-use licensed marijuana establishments. The contours of this landscape further extended to enshroud 195,776 active registered patients, each tethered to the realm of therapeutic succor, and an additional 21,698 active caregivers, the unsung sentinels of care.

The fiscal register for the year 2022 bore witness to the CRA’s fiscal prowess. With the coffers enriched by $40.6 million of revenue, juxtaposed against a backdrop of $23.2 million expended, the arithmetic of governance took center stage. A human chorus of 139 personnel lent their efforts to the agency’s operation, their impact echoing well into the twilight of late 2022.

Within this mélange of oversight and administration, the audit’s tendrils infiltrated the digital realm. Within the folds of its purview emerged lapses in the realm of cybersecurity. The cadence of signed security agreements missed the beat for 50 percent and 88 percent of scrutinized users within the CRA’s IT dominion. The sinuous dance of user access termination faltered as well, with 19 percent and 3 percent of dormant accounts continuing to linger within the labyrinth of digital corridors.

Yet amidst these shadows, beacons of competence shone. In a spirited display of responsiveness, the CRA steered the ship of investigation with alacrity, quelling the flames of concern for 91 percent of grievances assimilated. The specter of failed cannabis products found their antithesis in the proactive hold imposed, alongside the meticulous probes conducted, ensuring that the sullied fabric of products underwent either amelioration or obliteration in the interest of public safety.

As the chronicles of oversight unfold, a decree resonates – the Office of Internal Audit Services, State Budget Office shall don their mantle of judgment, perusing the roadmap of reform within 30 days of reception. Their imprimatur shall seal the fate of the proposed plan, or alternatively, herald the inception of further deliberations.

In the realm of fiscal numerology, the roll call of Michigan’s accumulated gains materialized. Amid the interstice of 2019 and 2022, the ledger bore witness to the gathering of $271 million in legal, adult-use marijuana tax revenue. The report, unveiled by the Marijuana Policy Project, provided an orchestrated symphony of financial accretion, echoing the resounding chords of tax revenue’s evolution since the advent of adult-use cannabis back in 2014.


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