Michigan Shifts to Surprise Inspections on Pot Businesses

Michigan weed dispensaries and other cannabis-related businesses will be subject to surprise inspections in the future. The inspections are conducted by officers with the state’s Cannabis Regulatory Agency (CRA) and so far they have been in a semi-annual scheduled format. 

However, the CRA no longer intends to schedule its visits. Instead, its staff will show up unheralded. The change is expected to “allow more flexibility for scheduling” and will be more efficient, the CRA said. 

The agency informed on the change over a Zoom session on Aug. 22, according to The Oakland Press. 

“It will be a flexible process, open to corrective action plans,” an agency spokesperson said, adding that business owners will “have some authority on how to address” noncompliance issues, The Oakland Press reported. 

The main goal with this transition is to make cannabis businesses compliant at all times, according to another agency spokesperson. 

Michigan Cannabis Businesses Will Need to Take Time to Prepare for Surprise Inspections

The transition will require business owners a certain period of time to prepare. The CRA has already recommended that owners of licensed cannabis businesses train on-site managers and other personnel on how to handle state inspections. 

During inspections, personnel will need to be well-clued with various business-related matters, such as standard operating procedures, surveillance systems, certifications, employees background, and the state’s seed-to-sale checklists, among other things. Owners can also provide employees with inspections checklists, available at the CRA official website. 

The Michigan state agency is also preparing for the transition with surprise inspections on cannabis businesses. The CRA is working on inspection checklist updates and creating documents that can be distributed to businesses after an audit. In addition, agency staff will reportedly communicate with smaller operators to determine best timings when to go forward with surprise visits and what to do if a cannabis business is not open when an inspector shows up.

Scheduled semi-annual inspections have reportedly so far shown 93 percent compliance rate among Michigan cannabis businesses. But the switch to surprise audits is aimed at making sure that weed dispensaries and other relevant businesses in the sector are following the rules every day.

Nevertheless, a pre-license inspection, a 30-day post-licensure inspection, and a follow-up inspection will still be conducted in a scheduled manner. 

What Are the Most Common Problems Found in Inspections? 

The Michigan state agency says that problems with the METRC tracking and identification system as well as surveillance equipment malfunctions are the two most common issues brought in during state inspections. 

Non-compliance with standard operating procedures and labeling are considered “minor issues,” and are usually resolved through re-inspection and do not require further investigation. 

However, irregularities with the METRC software or missing a 30-day calendar of surveillance footage are seen as more sizable issues, and can result with fines and even revoking a license. 

What Can Cannabis Businesses Do to Prepare for State Inspections?

Whether they’re scheduled or surprise, it’s always good to be ready for audits and handle them smoothly. 

If you are a cannabis business owner in Michigan, or anywhere else where there is a legal state market, here's what you can do in advance to ensure that everything goes well when an inspector shows up at your door: 

1. Self-audit your business premises for key areas that regulators look into (such as safety requirements, inventory management, and other standards). 
2. Prepare a manual for your staff so that everyone will be in the know of the state inspection process. 
3. Train your staff on compliance with regulations and operational procedures. 
4. Maintain complete and accurate records (such as inventory records, security logs, and employee’s training records). 

Read more here what else you can do to prepare ahead of time for (un)announced state inspections on your cannabis business. 

Also read on Soft Secrets: 

- Ohio Launches Recreational Cannabis with 98 Operators

- What Led to Minnesota's THC Beverage Boom?

- Is Maine’s Medical Market Facing a Crisis?