Marijuana top cop slams vendor for ‘clerical error’

AN ERROR THIS WEEK by a private “seed-to-sale” tracking service vendor for Michigan’s marijuana industry created pandemonium across the state and has the state’s marijuana agency rethinking its options.

METRC, a Florida vendor that provides tracking software that is monitored by regulators, noti ed the Michigan Cannabis Regulatory Agency on Monday that 85 percent of the system’s 3,178 active users in the state were more than 30 days past due on their $40 monthly service fee. METRC was going to revoke access to those users on March 1, e ectively shutting down marijuana sales in the state. However, it turns out METRC made what it told Crain’s was a “clerical error.” e actual number of METRC users in Michigan who were more than three months past due on their fees was only 11 percent, which was revealed to Crain’s by METRC and CRA on Wednesday evening.

“ e fact of the matter is we had multiple datasets from METRC that were apparently inaccurate,” Brian Hanna, executive director of the CRA, told Crain’s. “For us, this is concerning. e industry works very hard each and every day to use the system correctly. e industry is going through hardships right now with the prices being so low, and they don’t need inaccurate data and poor communication from METRC.”

Any movement — from cultivator to processor to dispensary to consumer — is tracked in the METRC system. Sales are illegal without being captured in METRC, under state regulations.

“ e $40 monthly fee is not new,” a spokesperson for METRC said in an email Wednesday night. “ is is a cost that has been in existence since the Metrc system was implemented in Michigan in 2018. Most licensees are in good standing and regularly pay the $40 fee.” e company did not respond to additional requests for comment ursday.

Hanna said many companies have reported to him that METRC even overcharged many clients, along with not registering their payments.

To avoid a near total shutdown of the state’s industry, Hanna met virtually with representatives from METRC to negotiate a grace period until March 27 for all users to straighten out who and who doesn’t owe METRC fees.

“METRC needs to get their invoicing system gured out,” Hanna said. “With 3,178 active users at $40 a month, they are making $1.5 million in the state annually. ey have the cash to do a better job.” crainsdetroit.com

President and CEO KC Crain

Group Publisher Jim Kirk, (312) 397-5503 or jkirk@ crain.com

Publisher Lisa Rudy, (313) 446-6032 or lrudy@crain.com

Executive Editor Mickey Ciokajlo, (313) 446-0319 or mickey.ciokajlo@crain.com

Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com

Director of Audience and Engagement Elizabeth Couch, (313) 446-0419 or elizabeth.couch@crain.com

Audience Engagement Editor Matthew Pollock, matthew.pollock@crain.com

Creative Director Thomas J. Linden, tlinden@crain.com

Digital Portfolio Manager Tim Simpson, (313) 446-6788 or tsimpson@crain.com

Assistant Managing Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com

Assistant Managing Editor Lauren Abdel-Razzaq, (313) 446-5800 or lauren.razzaq@crain.com

Assistant Managing Editor-Special Projects Leslie Green, lgreen@crain.com

Projects Editor Stacy Sominski, stacy sominski@ crain.com

Associate Creative Director Karen Freese Zane, kfreese@crain.com

Art Director Kayla Byler, kayla.byler@crain.com

Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com

Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com

Newsroom (313) 446-0329

REPORTERS

Jason Davis, restaurants, retail and small businesses. (313) 446-1612 or Jason.davis@crain.com

David Eggert senior reporter, politics, policy and energy. (313) 446-1654 or david.eggert@crain.com

Arielle Kass, city of Detroit. (313) 446-6774 or arielle.kass@crain.com

Nick Manes residential real estate and mortgage industry. (313) 446-1626 or nmanes@crain.com

Kurt Nagl manufacturing, law and courts. (313) 446-0337 or knagl@crain.com

Kirk Pinho, senior reporter, real estate. (313) 446-0412 or kpinho@crain.com

Dustin Walsh, senior reporter, health care and cannabis. (313) 446-6042 or dwalsh@crain.com

Rachel Watson, West Michigan and insurance. (989) 533-9685 or rachel.watson@crain.com

Sherri Welch, senior reporter nonpro ts, philanthropy and higher education. (313) 446-1694 or swelch@crain.com

MEMBERSHIPS

CLASSIC $169/yr.

ALL ACCESS + DATA $499/yr. Visit www.crainsdetroit.com/membership or call (877) 824-9374

Group and Corporate Membership Sales Deb Harper, (313) 446-1623 or dharper@crain.com

ADVERTISING/MARKETING

Sales Inquiries (313) 446-6032; FAX (313) 393-0997

Senior Vice President of Sales Susan Jacobs, (312) 649-5492 susan.jacobs@crain.com

Director of Custom Content Kristin Bull, (313) 446-1608 or kbull@crain.com

Content Studio Manager Clare Pfei er (313) 446-0423 or clare.pfei er@crain.com

Events Director Samantha Flowers

Senior Account Executives Maria Marcantonio, Sharon Mulroy

Advertising Sales Ainsley Burgess

Content Marketing Specialist Allie Jacobs

People on the Move Manager Debora Stein, (917) 226-5470, dstein@crain.com

Media Services Manager Nicole Spell (212) 210-0230 or nspell@crain.com

Classi ed Sales Suzanne Janik, sjanik@crain.com

CUSTOMER SERVICE

Single copy purchases, publication information, or membership inquiries: (877) 824-9374 or customerservice@crainsdetroit.com

Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com

Crain’s Detroit Business is published by

Crain Communications Inc.

Chairman, Editor Emeritus Keith E. Crain

Vice Chairman Mary Kay Crain

President and CEO KC Crain

Senior Executive Vice President Chris Crain

Chief Financial O cer Robert Recchia

G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)