Rodents To Blame? Michigan Cannabis Lab Loses License Over 38 Camera Malfunctions And Other Violations

A Michigan cannabis business had its license permanently revoked by the state cannabis regulator over a series of violations, reported Crain’s Detroit.

What Happened

Candid Labs, doing business as Layercake Farms 2 and owned by Ramon Hana operated as a processor of both medical and recreational cannabis.

The Michigan Cannabis Regulatory Agency (CRA) initially suspended Candid Labs' licenses in February, followed by attempts to permanently suspend them through the courts. 

The regulators first inspected the business in early October after the company notified them about a video surveillance system malfunction at its grow facility. Inspectors found that 38 cameras were “inoperable and showing black screens.”

According to the agency’s press release issued on Thursday, Candid deliberately turned off its 38-camera monitoring system, a requirement imposed by the state, at its facility to hide the fact that illegally purchased marijuana crude and the distillate was being processed.

The company's excuse? Rodents destroyed wires on the camera.

Other Violations

During the inspection of the processing facility, investigators found a number of products that were not tagged with Metrc tags as well last fall. Metrc tags allow the CRA to monitor cannabis products from seeds to sale.

“CRA staff observed five tall, cylindrical glass jars with green lids each labeled with ‘Labyrinth Xtracts Ultra Fine Distillate Oil’ and a ‘Hempire State Growers Hudson Valley New York’ sticker inside” a storage trailer,” the agency said at the time.

Although labeled as a CBD distillate, state testing proved it was actually THC-marijuana distillate.

Moreover, the “tall cylindrical jars were filled to the top with what appeared to be marijuana distillate and were without Metrc tags.”

The CRA also said that complaints filed against the company’s processing licenses included 28 license violations.

“When licensees don’t act within the laws and rules that govern the cannabis industry, we must act swiftly to protect the public,” CRA executive director Brian Hanna said in the press release. “By revoking these state operating licenses, we are holding true to the CRA’s promise that egregious actions jeopardizing public health and safety will be taken seriously and have consequences.”

Photo: Courtesy of Georg Bommeli on Unsplash