Last verified: March 2026

Obtaining a cannabis license in Michigan is only the beginning. Licensed operators must maintain continuous compliance with CRA regulations — codified in administrative rules R 420.1 through R 420.1004 — covering every aspect of their operations. Non-compliance can result in fines, license suspension, or revocation. The CRA collected $42.4 million in regulatory revenue in FY2024 and actively enforces compliance across more than 4,300 active licenses.

Metrc Seed-to-Sale Tracking

Michigan requires all licensed cannabis businesses to use Metrc, the state's mandatory seed-to-sale tracking system. Metrc is the backbone of Michigan's regulatory compliance framework and tracks every cannabis product from cultivation through final sale. Key requirements:

Plant Tracking

• Individual plant tagging — Every cannabis plant must be assigned a unique Metrc RFID tag and tracked from seed or clone through harvest
• Growth phase reporting — Cultivators must record plant movements between growth phases (vegetative, flowering, harvest)
• Harvest batches — All harvested material must be weighed, recorded, and assigned to traceable batches in Metrc

Inventory and Transfers

• Real-time inventory — All inventory movements, processing activities, and product creation must be recorded in Metrc as they occur
• Transfer manifests — All shipments between licensed facilities require documented Metrc manifests with product details, quantities, and chain-of-custody information
• Waste tracking — Cannabis waste must be weighed, documented in Metrc, and disposed of according to CRA protocols

Retail Sales

• Point-of-sale integration — Retail POS systems must integrate with Metrc to record every transaction
• Purchase limit enforcement — Systems must track purchases to enforce daily and transaction limits
• Inventory reconciliation — Regular reconciliation between physical inventory and Metrc records is required

Failure to maintain accurate Metrc records is one of the most common compliance violations and can trigger CRA enforcement actions. Operators should invest in Metrc training for all staff and conduct regular internal audits.

Testing Requirements

All cannabis products must be tested by a licensed Safety Compliance Facility before they can be sold to consumers. Testing requirements include:

• Potency analysis — THC, CBD, and other cannabinoid content must be accurately quantified
• Contaminant screening — Products are tested for pesticides, heavy metals, microbials (mold, bacteria), mycotoxins, and residual solvents
• Moisture content — Flower products are tested for moisture levels to prevent mold growth
• Homogeneity testing — Edibles and infused products must demonstrate consistent dosing throughout the product
• Batch quarantine — Products must be quarantined until testing results are received and passed
• Certificate of Analysis (COA) — A COA from the testing lab must accompany every batch through the supply chain

Products that fail testing must be remediated (if allowed) or destroyed under CRA-approved protocols.

Packaging and Labeling

Michigan's packaging and labeling requirements are detailed and strictly enforced:

• Child-resistant packaging — All products must be sold in packaging that meets child-resistance standards
• Universal cannabis symbol — Michigan's designated cannabis symbol must appear on all packaging
• Required label information — Product name, license number, batch/lot number, THC and CBD content, net weight, ingredients, allergen warnings, testing lab name, and harvest/production date
• Health warnings — Mandatory warning statements about health risks, impaired driving, pregnancy, and keeping products away from children
• No appeal to minors — Packaging cannot use cartoons, characters, bright colors, or imagery that could attract individuals under 21
• No misleading health claims — Products cannot be marketed as having specific medical benefits unless operating under the medical program with appropriate claims

Security Requirements

All licensed cannabis facilities must maintain comprehensive security systems as approved in their facility license applications:

Video Surveillance

• Continuous 24/7 recording of all areas where cannabis is cultivated, stored, processed, or sold
• Camera coverage of all entrances, exits, loading areas, and parking lots
• Minimum 720p resolution with date and time stamps
• Recordings must be retained for a minimum period and made available to the CRA upon request

Access Controls and Alarms

• Limited-access areas restricted to authorized employees and escorted visitors only
• Electronic access control systems (key cards, PIN codes, or biometrics) for restricted areas
• Intrusion detection and alarm systems monitored by a licensed alarm company
• Visitor logs for all non-employee access to restricted areas

Advertising and Marketing

Michigan cannabis businesses face restrictions on advertising:

• No advertising where more than 30% of the expected audience is under 21
• No health benefit claims in marketing materials
• No imagery or messaging that could appeal to minors
• All advertising must include required warnings and the licensee's name
• Digital advertising must include age-gating mechanisms

Record-Keeping and Reporting

Cannabis businesses must maintain detailed records and make them available for CRA review:

• Financial records — Income, expenses, tax filings, and banking records
• Employee records — Hiring documentation, training records, background checks
• Inventory records — Metrc reconciliation reports, discrepancy reports, waste disposal logs
• Incident reports — Security incidents, theft, product recalls, diversion events
• Compliance documentation — SOPs, internal audit results, corrective actions

CRA Inspections and Enforcement

The CRA conducts both scheduled and unannounced compliance inspections of licensed facilities. Inspectors review Metrc records, security systems, inventory accuracy, packaging compliance, and operational procedures. Violations can result in:

• Warning letters and corrective action plans
• Monetary fines and penalties
• License suspension
• License revocation

Proactive compliance — including regular internal audits, updated SOPs, ongoing employee training, and accurate Metrc record-keeping — is the best protection against enforcement actions.