Michigan Office of Administrative Hearings and Rules

611 W. Ottawa Street

Lansing, MI 48909

Phone: 517-335-8658 Fax: 517-335-9512

AGENCY REPORT TO THE

JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)

1. Agency Information

Agency name:

Licensing and Regulatory Affairs

Division/Bureau/Office:

Marijuana Regulatory Agency

Name of person completing this form:

JESSICA FOX

Phone number of person completing this form:

517-284-9294

E-mail of person completing this form:

FOXJ12@michigan.gov

Name of Department Regulatory Affairs Officer reviewing this form:

Elizabeth Arasim

2. Rule Set Information

MOAHR assigned rule set number:

2020-117 LR

Title of proposed rule set:

Marihuana Disciplinary Proceedings

3. Purpose for the proposed rules and background:

To update the existing rules to set standards for the exclusion of individuals from marihuana business

and employees from employment at marihuana businesses.

4. Summary of proposed rules:

The rule changes are designed to update and refine the disciplinary proceeding process used by the

agency when licensees are not in compliance with the statutes or the rules

5. List names of newspapers in which the notice of public hearing was published and

publication dates:

The Flint Journal – September 7, 2021

The Grand Rapids Press – September 7, 2021

The Mining Journal – September 7, 2021

6. Date of publication of rules and notice of public hearing in Michigan Register:

9/1/2021

MCL 24.242 and 24.245

Agency Report to JCAR-Page 2

7. Date, time, and location of public hearing:

9/27/2021 09:30 AM at Williams Building, 1st Floor Auditorium , 525 West Ottawa Street, Lansing,

Michigan

8. Provide the link the agency used to post the regulatory impact statement and cost-benefit

analysis on its website:

https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1243

9. List of the name and title of agency representative(s) attending public hearing:

Andrew Brisbo – Executive Director

Jessica S. Fox – Departmental Analyst, Scientific & Legal Section

Kelly Kronner – Departmental Analyst, PR Section

10. Persons submitting comments of support:

MICIA

NORML

Bob Hendricks

11. Persons submitting comments of opposition:

Gage Cannabis

Dickinson Wright

MICIA

Cresco Labs

NORML

My TCBD

Benjamin Joffe

42 Degrees

MCMA

Cannabis Attorneys of Michigan

Terrapin

Cannabis Law Section – Special Committee on Rules

12. Identify any changes made to the proposed rules based on comments received during the

public comment period:

MCL 24.242 and 24.245

Agency Report to JCAR-Page 3

Name &

Comments made at Written

Agency Rationale Rule number

Organization public hearing

Comments

for change

& citation

changed

1

Weedmaps

Public comment Definition updated R 420.801(1)

was received on to match definition (i)

the Licensees

Rule Set that a

licensing

in other rule set

where feedback

was incorporated

under R 420.101

agreement as

defined was too (1)(l).

broad and could

encompass

unintended

contracts.

2

Benjamin D.

Joffe

Cannot possibly The agency agrees R 420.802(3)

report an order

prior to its

with this

(g)

comment. This

provision was

removed and

issuance, could

report a

proceeding that notification

my lead to an

order.

required within 10

days under R

420.802(8).

3

4

Cresco Labs

MICIA

Change from 1

business day to 3 with this

business days.

Remove or

narrow this

language.

The agency agrees R 420.802(4)

comment.

The agency agrees R 420.802(4)

with this

(c)

comment. The

rule was narrowed

to remove the

provisions

regarding alleged

violations and

only in the

circumstances of

actual violation.

5

MCMA

Include clarity of The agency agrees R 420.802(4)

who "another

party" is based

with this

comment. The

(c)

upon definitions rule number for

included

the definition

previously.

wasn’t added

because the term is

defined elsewhere.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 4

6

7

8

Bob Hendricks

Gage Cannabis

MCMA

Refer to 420.801 The agency agrees R 420.802(7)

(1)(j) for

with this

definition.

comment. The

rule number for

the definition

wasn’t added

because the term is

defined elsewhere.

The agency agrees R 420.802(7)

with this

Should only

apply to

management

agreements that

cause a material

change to the

marijuana

comment.

business.

Accused/not

The agency agrees R 420.808a

convicted is too with this

far, "negatively comment. This

impact public

rule was modified

health, safety and to include only

welfare' is too

broad.

actual, not accused

violations of the

rules statutes and

actual convictions.

The agency agrees R 420.808a

9

MCMA

Fix the cross

reference to

420.705 to

420.704a.

with this

(3)

comment.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 5

10

Cannabis Law

Section –

Special

Committee on

Rules

Too ambiguous The agency agrees R 420.808a

why someone can with this (1)

be excluded.

comment. The

provisions leading

to possible

exclusion were

reduced from 6 to

3. The provisions

were also

narrowed to

conduct while

employed at a

marijuana

business,

exclusion in

another

jurisdiction and

conviction for

distribution to a

minor.

11

MICIA

Include factual

statement for

exclusion.

The agency agrees R 420.808a

with this

(2)(b)

comment. The

rule was revised to

require a factual

statement be

included.

12

13

MICIA

Include who the The agency agrees R 420.808a

filing is served on with this comment (4)

and how in the

rule.

and has added a

provision

regarding service

of the Notice.

Name should

The agency agrees R 420.808a

only go on the list with this comment (5)

after a hearing.

Rule says your

and has revised the

rule to state that

name goes on the the individual’s

list and if you

don't request a

hearing it stays

there.

name will be

placed on the list

if a hearing is not

requested.

13.Date report completed:

12/3/2021

MCL 24.242 and 24.245