Marijuana Regulatory Agency Suspends Processor Licenses of 3843 Euclid LLC in Bay City

July 12, 2021 - Today, the Marijuana Regulatory Agency (MRA) issued a formal complaint against - and summarily suspended - the licenses of 3843 Euclid, LLC, a medical marijuana processor facility and an adult-use marijuana processor co-located at 3843 N. Euclid, Bay City, Michigan 48706.

The MRA has determined that the safety or health of patrons is jeopardized by the continued operation of 3843 Euclid, LLC and that the conduct described below is a risk to public health and safety and/or the integrity of marijuana establishment operations. The MRA has determined that emergency action is required and has ordered 3843 Euclid, LLC's licenses to be summarily suspended, effective immediately.

On August 31, 2020, the MRA entered a final order against 3843 Euclid LLC based on allegations that employees contaminated pre-rolled marijuana products with human saliva. The license was suspended from August 6, 2020, until the issuance of the final order. Pursuant to the final order, the license was suspended for an additional ten days and until the licensee terminated specific employees, employed an on-site supervisor and on-site compliance officer, updated their quality control manual, completed an employee training manual, and provided proof of compliance with all relevant rules, procedures, and restrictions. 3843 Euclid LLC's licenses were also subject to additional restrictions and conditions until August 31, 2021.

Following additional investigation, the MRA determined that 3843 Euclid LLC violated state laws and/or administrative rules as follows:

• On March 23, 2021, marijuana infused / edible marijuana product (Covert Cups) were sampled for safety compliance testing at its business and, on March 29, 2021, passing compliance test results were entered into METRC.
• On April 2, 2021, the MRA performed a compliance check and observed approximately 10,000 Covert Cups in the Safe Room Vault area that were in non-opaque yellow, clear, or silver final consumer packaging, and stored in approximately 21 black plastic bins, in violation of the MRA's administrative rules; neither packaging nor the bins had METRC tags affixed.
• The MRA's review of the Certificate of Analysis for Covert Cups only shows photographs of the product in the yellow consumer packaging, not the clear or silver packaging. This sample was not representative of the entire production batch because 843 Euclid LLC did not provide the safety compliance facility with access to the entire production batch for sampling.
• The MRA's review of video footage also showed that no one from 3843 Euclid LLC observed the sampling process, that an employee consumed food product and/or edible marijuana product inside of the business, and that the licensee did not follow Current Good Manufacturing Practices in the production of marijuana infused products and edible marijuana products, including allowing employees to wear only their street clothing during production, use cellphones with gloved hands, and not wash their hands. On at least eight occasions, after opening an ingredient for use, an employee placed her gloved finger into the product and placed her finger in her mouth. On at least two occasions, an employee licked the spatula that she used to the stir the product and then put the licked spatula back into the product.
• As of July 7, 2021, 3843 Euclid LLC failed to maintain adequate records of formulation.

"It is imperative that our licensees follow the rules and laws while producing marijuana products," said MRA Executive Director Andrew Brisbo. "The MRA goes to great lengths to make sure that the marijuana product in the regulated industry meets established safety standards. Michigan's marijuana laws and rules were established to provide safe sources of marijuana to Michigan residents, and it is important that we take action against those facilities that disregard the rules."

According to state law and the MRA's administrative rules, the MRA may suspend a license without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by continuing a marijuana facility's operation. Any party aggrieved by an action of the MRA suspending, revoking, restricting, or refusing to renew a license, or imposing a fine, shall be given a hearing upon request. A request for a hearing must be submitted to the MRA in writing within 21 days after service of the complaint.

The licensee also has the right to request a compliance conference, an informal meeting at which the licensee has the opportunity to discuss the allegations in the complaint and demonstrate compliance under state law and administrative rules. If the licensee fails to timely respond to this formal complaint, a contested case hearing will be scheduled to resolve this matter.