Michigan’s Cannabis Regulatory Agency (CRA) is discontinuing its scheduled semi-annual inspections of all licensed marijuana businesses, opting instead for unannounced visits by regulation officers. According to the CRA, this shift is intended to provide more scheduling flexibility and improve efficiency. It is also expected to enhance employees’ knowledge of rules and regulations.

The new approach to unannounced inspections will be implemented on October 1, though prelicensure and 30-day post-licensure inspections will still be scheduled. The CRA has acknowledged that the transition may not be “flawless” and that accommodations will be made as necessary, with the primary goal being to ensure licensees are “compliant at all times.”

The costs of these inspections will continue to be covered by licensing fees.

In preparation for the change, the CRA urges Licensees to ensure there is always a point of contact at the facility, “someone who is available and able to answer inspection-related questions, provide access to secure areas, demonstrate the use of video surveillance, provide requested documentation, and accompany the Regulation Officer throughout the inspection.”

The CRA advises Licensees to train on-site managers and employees on how to handle inspections. This includes knowing how to access necessary documents such as employee backgrounds, standard operating procedures, logs, surveillance systems, certifications, and METRC information—the state’s seed-to-sale tracking system. The CRA also recommends providing employees with inspection checklists, available on their website and also being updated before the change on October 1st. In addition, it would be wise for Licensees to create SOPs specifically for responding to and accommodating surprise inspections.

Regulation officers will contact businesses with low staffing, part-time hours, or that have irregular edible production schedules to determine the best times for surprise inspections, avoiding visits when the business is closed.

Business owners are encouraged to verify the identity of regulation officers by requesting their CRA-issued photo IDs and contacting the Regulation Office’s verification hotline if needed. The hotline number will be distributed to licensees via email.

While minor non-compliance issues, such as errors in standard operating procedures or labeling, are typically resolved through re-inspection with time to create a corrective action plan, more serious violations—such as deficiencies in METRC tracking or surveillance footage—may lead to an investigation and could result in fines or license suspension, depending on the findings.

As always, check back with Dykema’s Cannabis Law Blog for further developments.