Michigan cannabis regulators have, for the first time, issued a suspension of a hemp business license over excessive THC levels. The Cannabis Regulatory Agency (CRA) last week said it had suspended the license of Loud Labs of Michigan LLC after an investigation found the company possessed products containing delta-9 THC beyond the state’s legal hemp threshold of 0.3%.
CRA staff conducted a compliance inspection at the business on March 25, during which the inspectors observed multiple cannabis products and reviewed certificates of analysis indicating that certain products contained delta-9 THC that exceeded hemp threshold. The agency conducted an inventory audit on May 18 and identified multiple products for which corresponding laboratory certificates of analysis reported delta-9 THC concentrations above 0.3%.
The agency’s report points out five products in particular, including a concentrate with a reported delta-9 THC level of 92.84%; another with a concentration of 21.38%; and a third with a concentration of 20.35%. Two topical patches were also found to have THC levels in violation of state hemp laws – one tested at 0.59%, and another tested at 0.45%, according to the notice of suspension.
The CRA alleges that Loud Labs violated parts of the state’s Industrial Hemp Research and Development Act (IHRDA), which provides for suspension of a processor-handler license when the licensee intentionally possesses cannabis containing more than 0.3% delta-9 THC on a dry-weight basis. Based on those allegations, the agency suspended Loud Labs’ hemp processor-handler license effective immediately and has also provided notice of its intent to revoke the license.
Under the applicable provisions of the IHRDA, a license must be revoked if, following notice and an opportunity for a hearing, the CRA determines by a preponderance of the evidence that the licensee violated the relevant provision.
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