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BJH H03623'25_HB6215_INTR_1 4qtik3
HOUSE BILL NO. 6215
A bill to provide for an appeal process for violations of
certain laws related to marihuana; to provide for the manner in
which disciplinary actions are taken against certain licensees; to
create the cannabis licensing appeals board and prescribe its
powers and duties; to provide for the powers and duties of certain
state governmental officers and entities; to provide for the
promulgation of rules; and to provide for sanctions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act may be cited as the "cannabis licensee 1
enforcement and appeals act". 2
July 03, 2026, Introduced by Reps. McKinney, Miller, Tsernoglou, Edwards, Skaggs, Dievendorf,
Wilson, Steckloff, Andrews and Myers -Phillips and referred to Committee on Regulatory
Reform.
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Sec. 2. As used in this act: 1
(a) "Administrative procedures act of 1969" means the 2
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 3
24.328. 4
(b) "Appeals board" means the cannabis licensing appeals board 5
created in section 5. 6
(c) "Cannabis regulatory agency" means the marijuana 7
regulatory agency created under Executive Reorganization Order No. 8
2019-2, MCL 333.27001, renamed the cannabis regulatory agency under 9
Executive Reorganization Order No. 2022-1, MCL 333.27002. 10
(d) "Licensee" means a person holding either of the following: 11
(i) A state operating license issued under the medical 12
marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 13
333.27801. 14
(ii) A state license issued under the Michigan Regulation and 15
Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967. 16
(e) "Marihuana" means that term as defined in section 3 of the 17
Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 18
333.27953. 19
(f) "Marihuana acts" means both of the following: 20
(i) The medical marihuana facilities licensing act, 2016 PA 21
281, MCL 333.27101 to 333.27801. 22
(ii) The Michigan Regulation and Taxation of Marihuana Act, 23
2018 IL 1, MCL 333.27951 to 333.27967. 24
(g) "Minor" means an individual who is less than 21 years of 25
age. 26
(h) "Rules" means the rules promulgated by the cannabis 27
regulatory agency under the marihuana acts. 28
(i) "Violation" means a violation of any of the following: 29
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(i) The marihuana acts. 1
(ii) The rules. 2
(iii) An order issued by the cannabis regulatory agency under 3
the marihuana acts. 4
Sec. 3. This act applies to all licensees and disciplinary or 5
enforcement actions taken by the cannabis regulatory agency for a 6
violation. This act is intended to implement and be consistent with 7
all of the following: 8
(a) Section 8(k) of the Michigan Regulation and Taxation of 9
Marihuana Act, 2018 IL 1, MCL 333.27958(k). 10
(b) Sections 303 and 407 of the medical marihuana facilities 11
licensing act, 2016 PA 281, MCL 333.27303 and 333.27407. 12
Sec. 4. (1) The cannabis regulatory agency shall enforce 13
compliance with the marihuana acts and rules through a graduated 14
disciplinary system. A disciplinary action taken by the cannabis 15
regulatory agency must be proportionate to the seriousness of a 16
violation and the licensee's record of compliance, beginning with 17
the least severe action reasonably necessary to address the 18
violation and escalating only for an immediate public health or 19
public safety based offense, an offense that could lead to illness 20
or poisoning within the general public, an offense that implicates 21
illegal activity, including a felony involving financial fraud, tax 22
evasion, money laundering, or another serious financial crime, or a 23
repeat violation. The cannabis regulatory agency shall include in 24
each notice of disciplinary action that it issues to a licensee a 25
statement that informs the licensee of the licensee's right to 26
appeal to the appeals board under this act and the applicable 27
deadline to submit an appeal to the appeals board under this act. 28
(2) For a first-time violation that does not involve either of 29
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the following, the cannabis regulatory agency may issue a written 1
citation or warning notice to the licensee but shall not, subject 2
to subsections (3) and (8), impose a civil fine to the licensee or 3
suspend the licensee's license: 4
(a) An immediate risk to the public health, safety, or 5
welfare, including, but not limited to, selling marihuana to a 6
minor. 7
(b) Marihuana that was not produced, distributed, or taxed in 8
compliance with the marihuana acts, as applicable. 9
(3) A citation or warning notice issued under subsection (2) 10
must describe the violation and may require the licensee to take 11
corrective action. The license shall keep a citation or warning 12
notice issued under subsection (2) in the licensee's records for as 13
long as the licensee holds a license. A citation or warning notice 14
issued to a licensee under subsection (2) may be considered in 15
determining sanctions for a subsequent violation by the licensee. 16
In determining sanctions for a subsequent violation, the cannabis 17
regulatory agency may consider prior violations or formal warnings 18
if the prior incidents occurred within the preceding 2 years before 19
the current violation. If a licensee fails to correct a violation 20
within 30 calendar days after receiving a citation or warning 21
notice issued under subsection (2), the cannabis regulatory agency 22
may impose a civil fine. 23
(4) The cannabis regulatory agency shall establish categories 24
of violations. A subsequent violation falls in the same or similar 25
category as a prior violation if it involves the same requirement 26
or safeguard. As used in this subsection, "same" or "similar" means 27
a violation of the same legal provision or a substantially related 28
rule addressing the same subject matter or obligation as the prior 29
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offense. 1
(5) Escalating a penalty based on a past incident requires 2
that the prior citation or warning was formally recorded and 3
communicated to the licensee. 4
(6) If a violation is of a materially detrimental or flagrant 5
nature and involves intentional misconduct or poses a risk to the 6
public health, safety, or welfare, or if the licensee has 7
previously been issued a citation or warning notice under 8
subsection (2) for a violation within 1 calendar year from the date 9
of the same or similar violation, the cannabis regulatory agency 10
may impose a civil fine for the violation. 11
(7) The cannabis regulatory agency shall include with each 12
civil fine imposed under this section a notice of the violation and 13
an explanation of the licensee's right to appeal under section 6. A 14
civil fine imposed under this act must not exceed $5,000.00 against 15
an individual and must not exceed $10,000.00 or an amount equal to 16
the daily gross receipts, whichever is greater, against a licensee 17
for each violation. The imposition of a civil fine is in addition 18
to, and does not bar, any other lawful remedial measures or 19
sanctions or penalties that apply to the same conduct, except that 20
multiple fines are subject to section 8. 21
(8) The cannabis regulatory agency may suspend a licensee's 22
license if a licensee does either of the following: 23
(a) Commits a violation that endangers the public health, 24
safety, or welfare. 25
(b) Exhibits a pattern of repeated violations that 26
demonstrates an intentional, reckless, or negligent failure to 27
comply with the marihuana acts, rules, or orders issued by the 28
cannabis regulatory agency under the marihuana acts. 29
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(9) The cannabis regulatory agency may suspend a licensee's 1
license under subsection (8) for a defined term or until specified 2
conditions are met. Except as otherwise provided in subsection 3
(10), the cannabis regulatory agency shall not impose a suspension 4
without first issuing a formal complaint or notice to the licensee 5
and providing an opportunity for a hearing or appeal in accordance 6
with this act and the administrative procedures act of 1969. 7
(10) If the cannabis regulatory agency determines that a 8
licensee's continued operation poses an imminent threat to the 9
public health, safety, or welfare, the cannabis regulatory agency 10
may summarily suspend the licensee's license. The cannabis 11
regulatory agency shall issue to the licensee, not later than 3 12
calendar days after making the determination, a written order that 13
identifies the threat. A hearing must be promptly scheduled after 14
the suspension to determine whether the suspension should remain in 15
effect. The suspension remains in effect only for the duration of 16
the threat, and the cannabis regulatory agency shall end the 17
suspension immediately when the threat has been abated or 18
adequately addressed by the licensee. 19
(11) Subject to subsection (12), the cannabis regulatory 20
agency may revoke a licensee's license for either of the following 21
reasons: 22
(a) The licensee commits an egregious violation, including, 23
but not limited to, diverting marihuana to the illicit market, 24
intentionally providing false information to the cannabis 25
regulatory agency, the appeals board, or a law enforcement agency, 26
operating while the licensee's license is suspended, or engaging in 27
conduct that causes serious harm. 28
(b) The licensee has a series of persistent violations that 29
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demonstrates that the licensee is unwilling or unable to comply 1
with the marihuana acts and rules and to protect the public health, 2
safety, and welfare. 3
(12) The cannabis regulatory agency shall not revoke a license 4
unless all of the following requirements have been met: 5
(a) The cannabis regulatory agency has issued to the licensee 6
a notice of the reasons for the revocation. 7
(b) The cannabis regulatory agency has given the licensee an 8
opportunity for a contested hearing or appeal under section 6. 9
(c) A finding has been made that the revocation is warranted. 10
(13) A licensee whose license has been revoked under this act 11
and an individual who was an owner, officer, or director of or had 12
a controlling interest in the licensee at the time of revocation 13
are ineligible to apply for or hold a license under the marihuana 14
acts for a period of 1 year from the date of revocation, or for a 15
longer period if specified by the revocation order. 16
(14) If a license is suspended under this act for a specified 17
period or until certain conditions are met, the licensee and an 18
individual who was an owner, officer, or director of or had a 19
controlling interest in the licensee at the time of suspension are 20
ineligible to apply for or be granted a new license for the 21
duration of the suspension. 22
(15) If a licensee holds multiple licenses under the marihuana 23
acts, a suspension or revocation under this section may be limited 24
to the specific license or facility where the violation occurred. 25
The cannabis regulatory agency shall not suspend or revoke all 26
licenses held by a licensee unless the cannabis regulatory agency 27
determines, through substantial evidence, that the violation 28
resulted from a systemic failure or willful noncompliance by the 29
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licensee across its operations. In such a case, the cannabis 1
regulatory agency may impose corresponding sanctions on other 2
licenses held by that licensee. 3
(16) The graduated sanctions described in this section do not 4
prohibit the cannabis regulatory agency from using other 5
enforcement actions allowed under the marihuana acts or other laws. 6
Sec. 5. (1) The cannabis licensing appeals board is created in 7
the cannabis regulatory agency. The appeals board shall function 8
independently of the cannabis regulatory agency's investigations 9
and enforcement personnel. A member of the appeals board shall be 10
impartial in reviewing a cannabis regulatory agency disciplinary 11
action and must not have been directly involved in the 12
investigation or issuance of the disciplinary action under appeal. 13
At the time of appointment and during service on the appeals board, 14
a member shall not be any of the following: 15
(a) A licensee or an applicant for a license under the 16
marihuana acts. 17
(b) An owner, officer, director, manager, employee, agent, 18
consultant, independent contractor, vendor, shareholder, or 19
representative of a licensee or an applicant for a license under 20
the marihuana acts. 21
(c) A registered qualifying patient or a registered primary 22
caregiver under the Michigan Medical Marihuana act, 2008 IL 1, MCL 23
333.26421 to 333.26430. 24
(d) An individual with a direct or indirect financial interest 25
in, or compensation arrangement with, a licensee or an applicant 26
for a license under the marihuana acts. 27
(2) The governor shall appoint the members of the appeals 28
board with the advice and consent of the senate. The board must 29
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consist of 3 members that collectively represent expertise in 1
administrative law, regulatory compliance, and the marihuana 2
industry or small business operations. Not more than 2 members may 3
be from the same political party. Before an individual is submitted 4
to the senate for advice and consent under this subsection, the 5
individual shall submit to the governor a signed written disclosure 6
statement identifying any current relationship and any relationship 7
during the preceding 5 years that the individual, or an immediate 8
family member of the individual, has or had with a licensee or an 9
applicant for a license under the marihuana acts, including any 10
ownership interest, employment relationship, contractual 11
relationship, vendor relationship, management role, representation, 12
registered qualifying patient status, registered primary caregiver 13
status under the Michigan Medical Marihuana act, 2008 IL 1, MCL 14
333.26421 to 333.26430, or other direct or indirect financial 15
interest. The governor shall transmit the disclosure statement to 16
the senate with the appointment request. 17
(3) The governor shall appoint 1 of the first members to a 1-18
year term, 1 of the first members to a 2-year term, and 1 of the 19
first members to a 3-year term. After the first appointments, the 20
term of a member of the appeals board is 4 years or until a 21
successor is appointed under subsection (2), whichever is later. 22
The governor shall designate 1 member as the chairperson. 23
(4) If a vacancy occurs on the appeals board, the governor 24
shall appoint an individual to fill the vacancy for the balance of 25
the term. 26
(5) The governor may remove a member of the appeals board for 27
incompetence; dereliction of duty; malfeasance, misfeasance, or 28
nonfeasance in office; or any other good cause. As used in this 29
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subsection, "good cause" includes, but is not limited to, any of 1
the following: 2
(a) A violation of subsection (1). 3
(b) A failure to submit, update, or correct a disclosure 4
required under subsection (2). 5
(c) A knowing omission or misrepresentation of a material fact 6
in a disclosure required under subsection (2). 7
(d) A conviction of, or plea of guilty or nolo contendere to, 8
tax evasion, money laundering, fraud, bribery, or another felony 9
involving dishonesty or breach of public trust. 10
(e) Participation in a matter in which the member, or an 11
immediate family member of the member, has a prohibited conflict of 12
interest under this section. 13
(6) A member who becomes aware of a potential conflict of 14
interest shall immediately disclose the conflict to the governor 15
and the member shall not participate in the matter unless the 16
governor determines that the matter does not involve a prohibited 17
conflict of interest under this section. 18
(7) The chairperson shall call the first meeting of the 19
appeals board. At the first meeting, the appeals board shall elect 20
officers that it considers necessary or appropriate. 21
(8) Two of the members of the appeals board constitute a 22
quorum for transacting business. A vote in favor by 2 of the 23
members of the appeals board serving is required for any action of 24
the appeals board. 25
(9) The appeals board shall conduct its business in compliance 26
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. 27
(10) A writing that is prepared, owned, used, possessed, or 28
retained by the appeals board in performing an official function is 29
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subject to the freedom of information act, 1976 PA 442, MCL 15.231 1
to 15.246. 2
(11) A member of the appeals board is entitled to compensation 3
of $300.00 for each meeting of the appeals board attended by that 4
member. The cannabis regulatory agency may reimburse a member for 5
actual and necessary expenses incurred in serving on the appeals 6
board. 7
(12) The appeals board shall do both of the following: 8
(a) Conduct hearings regarding appeals of disciplinary actions 9
taken by the cannabis regulatory agency against a licensee. 10
(b) Issue determinations regarding the appeals described in 11
subdivision (a). The board's determination must state the reasons 12
for its conclusion. 13
(13) The appeals board may do any of the following: 14
(a) Affirm an action of the cannabis regulatory agency. 15
(b) Modify a sanction of the cannabis regulatory agency. 16
(c) Overturn a determination made by the cannabis regulatory 17
agency that a violation occurred. 18
(d) Remand a matter to the cannabis regulatory agency for 19
further investigation or consideration of new evidence. 20
Sec. 6. (1) Except as otherwise provided in subsection (2), a 21
licensee aggrieved by a disciplinary action of the cannabis 22
regulatory agency may appeal the disciplinary action to the appeals 23
board before the initiation or completion of a contested case 24
proceeding under the administrative procedures act of 1969. To 25
initiate an appeal, a licensee must submit a written appeal 26
petition to the appeals board not later than 21 days after the 27
licensee receives 1 of the following, as applicable: 28
(a) Notice of the cannabis regulatory agency's disciplinary 29
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action. 1
(b) A settlement offer under section 9. 2
(2) If the notice of disciplinary action states that the 3
alleged violation involves public health, public safety, or a 4
serious financial violation, including tax evasion or money 5
laundering, the licensee shall not appeal the disciplinary action 6
to the appeals board under this section. A disciplinary action 7
described in this subsection remains subject to a contested case 8
hearing under the administrative procedures act of 1969 and 9
judicial review as otherwise provided by law. 10
(3) An appeal petition filed under subsection (2) must be 11
accompanied by a filing fee of $500.00. However, the filing fee for 12
a licensee that is participating in the cannabis regulatory 13
agency's social equity program at the time the appeal petition is 14
filed is $375.00. 15
(4) Upon the submission of a petition with the appeals board 16
under subsection (1), the cannabis regulatory agency's disciplinary 17
action is stayed and the cannabis regulatory agency shall not 18
enforce the disciplinary action until the appeal is resolved. 19
However, for a summary suspension under section 4(10), the cannabis 20
suspension remains in effect unless stayed by the appeals board or 21
by the cannabis regulatory agency. A licensee may request expedited 22
review by the appeals board of a summary suspension under section 23
4(8). 24
(5) A licensee may file a written request for expedited review 25
if delaying the appeal would cause specific harm or undue 26
prejudice. The appeals board shall grant a request under any of the 27
following situations: 28
(a) A risk of significant economic harm to the business from 29
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waiting on the normal appeal timeline. 1
(b) Substantial prejudice due to procedural delays not caused 2
by the licensee. 3
(c) Other time-sensitive business needs of the licensee that 4
justify urgent consideration. 5
(6) To initiate an expedited appeal, the licensee must submit 6
a written request, with the appeal petition separately, clearly 7
explaining the urgency. The request must detail the specific 8
reasons why an expedited hearing is needed, including any evidence 9
of impending economic losses, ongoing business hardship, or 10
critical time constraints. 11
(7) Not later than 5 business days after receiving a complete 12
written request for expedited appeal, the cannabis regulatory 13
agency or appeals board shall issue a decision granting or denying 14
the request. 15
(8) Upon granting expedited review, the appeals board shall 16
conduct the appeal hearing without undue delay. 17
(9) The appeals board shall schedule an appeal hearing or 18
meeting to review the appeal that must take place as soon as 19
practicable, but not later than 30 days after the appeals board 20
receives the appeal petition, unless the licensee agrees to a later 21
date. The appeals board may conduct appeal hearings informally and 22
in a manner designed to be accessible to a licensee that elects not 23
to be represented by a lawyer. A licensee has the right to be heard 24
and to present written and oral evidence as to why the cannabis 25
regulatory agency's disciplinary action was in error or why the 26
cannabis regulatory agency's sanction is excessive or unwarranted. 27
Cannabis regulatory agency staff involved in the decision may 28
present their rationale and supporting evidence to the appeals 29
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board. The formal rules of evidence do not apply to an appeal 1
hearing, but the appeals board may develop guidelines to ensure 2
that the proceedings are fair and focused. A licensee may choose to 3
have a lawyer or representative at an appeal hearing. A licensee 4
must not be charged a fee other than the filing fee required under 5
subsection (1) for submitting an appeal petition or for engaging in 6
an appeal hearing. 7
(10) After considering the evidence and arguments at an appeal 8
hearing, the appeals board may affirm the cannabis regulatory 9
agency's action, modify a sanction, overturn the cannabis 10
regulatory agency's finding of a violation and dismiss the 11
disciplinary action, or remand the matter to the cannabis 12
regulatory agency for further investigation or consideration of new 13
evidence. The appeals board shall issue a written order of the 14
appeals board's decision, including the reasons for its decision, 15
to the licensee and the cannabis regulatory agency. If the appeals 16
board does not issue a decision within 45 days after the appeal 17
hearing, the licensee may elect to treat the appeal as denied and 18
request a contested case hearing under subsection (11) or may 19
consent to allow additional time for the appeals board's decision. 20
(11) The appeals board process is an optional, intermediary 21
step before a contested case hearing is conducted under the 22
administrative procedures act of 1969. A licensee's decision to 23
appeal to the appeals board does not waive the licensee's right to 24
a contested case hearing under the administrative procedures act of 25
1969. Not later than 21 days after receiving the appeals board's 26
decision, the licensee may submit a written request to the cannabis 27
regulatory agency for, or the cannabis regulatory agency may 28
initiate on its own, a contested case hearing under the 29
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administrative procedures act of 1969. 1
(12) If a contested case hearing is not requested or initiated 2
within the time period described in subsection (11), the appeals 3
board's decision is considered a final cannabis regulatory agency 4
action for purposes of judicial review and enforcement. If, after 5
the appeals board issues a written decision, a contested case 6
hearing is conducted, the appeals board's decision is void. 7
(13) If a licensee or the cannabis regulatory agency requests 8
a contested case hearing under subsection (11), the hearing must be 9
conducted by an administrative law judge as a contested case in 10
accordance with the administrative procedures act of 1969. Upon 11
conclusion of the contested case hearing, the administrative law 12
judge shall prepare a proposal for decision containing findings of 13
fact and conclusions of law. The proposal for decision must be 14
transmitted to the appeals board. The appeals board shall review 15
the proposal for decision and issue the final decision and final 16
order of the cannabis regulatory agency. The appeals board's final 17
order may adopt, reverse, or modify the proposal for decision in 18
whole or in part and must include the appeals board's determination 19
of any penalty or sanction. The appeals board's final order 20
following a contested case hearing is subject to judicial review as 21
provided by law. 22
(14) If the licensee or cannabis regulatory agency does not 23
request a contested case hearing under subsection (11), the appeals 24
board's decision is final and binding on the licensee and the 25
cannabis regulatory agency, and the cannabis regulatory agency 26
shall take action consistent with the appeals board's decision. 27
(15) The cannabis regulatory agency and the appeals board 28
shall ensure that the appeal process established under this section 29
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is accessible to small businesses and social equity licensees. 1
Forms, instructions, and guidance for filing an appeal must be 2
written in plain language and made readily available. The cannabis 3
regulatory agency shall publish or make available information on 4
common reasons for appeals and examples, that have all identifying 5
information redacted, of past appeal board decisions. 6
Sec. 7. (1) A licensee that voluntarily reports to the 7
cannabis regulatory agency that the licensee committed a violation 8
is not subject to a civil fine for the violation if all of the 9
following conditions are met: 10
(a) The cannabis regulatory agency and any law enforcement 11
authority was not aware of the violation and had not initiated an 12
investigation into the matter before the licensee reported the 13
violation. 14
(b) The violation does not pose an imminent or direct risk to 15
the public health, safety, or welfare and is a regulatory 16
compliance issue of an administrative or technical nature, 17
including, but not limited to, any of the following types of 18
violations: 19
(i) Inventory tracking discrepancies. 20
(ii) Record-keeping errors. 21
(iii) Minor security lapses that did not result in any harm. 22
(c) The licensee discovers the violation on its own and, not 23
later than 5 days after the discovery, or a longer period of time 24
if justified by the circumstances, notifies the cannabis regulatory 25
agency in writing of the violation. 26
(d) The licensee's report to the cannabis regulatory agency is 27
made in good faith, fully discloses the nature and scope of the 28
violation, and includes, or is followed by a corrective action plan 29
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from the cannabis regulatory agency within 48 hours from report 1
submission that includes, the steps taken or to be taken to remedy 2
the violation and prevent its recurrence. 3
(e) The licensee cooperates with any inquiry by the cannabis 4
regulatory agency regarding the violation. 5
(2) The cannabis regulatory agency may issue a written notice 6
or warning that documents a violation described in subsection (1) 7
only if the cannabis regulatory agency includes in the notice or 8
warning a statement that the licensee reported the violation under 9
subsection (1), and may require certain corrective actions or a 10
period of compliance monitoring. If a licensee that submits a 11
report under subsection (1) complies with an applicable corrective 12
action plan, the cannabis regulatory agency shall not consider a 13
notice or warning issued under this subsection to be a disciplinary 14
action for purposes of determining prior violations. 15
(3) If a licensee fails to comply with a corrective action 16
plan described in subsection (2), or if the cannabis regulatory 17
agency determines that the licensee was not fully truthful or 18
withheld material information in the report that the licensee 19
submitted under subsection (1), the licensee is subject to an 20
applicable civil fine, and a record in the licensee's file for not 21
more than 2 years, for the violation, and the cannabis regulatory 22
agency may consider a notice or warning issued under subsection (2) 23
to be a disciplinary action for purposes of determining prior 24
violations. 25
(4) The cannabis regulatory agency shall promulgate emergency 26
rules in accordance with section 48 of the administrative 27
procedures act of 1969, MCL 24.248, and develop and publish 28
guidelines and a process for licensees to submit reports under 29
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subsection (1). The guidelines must encourage licensees to submit 1
reports under subsection (1). The cannabis regulatory agency may 2
provide training or resources to assist licensees in conducting 3
self-audits and submitting reports under subsection (1). 4
(5) A licensee's submission of a report under subsection (1) 5
must not, by itself, be used in any criminal or civil proceeding as 6
evidence of an intent to violate the law. If the licensee was 7
truthful in its report and the public was not harmed as a result of 8
the violation, the report must not be considered an admission 9
against the licensee's interests in any other context. The cannabis 10
regulatory agency may refer a report submitted under subsection (1) 11
to a law enforcement agency only if the violation is of a nature 12
that would have otherwise required the cannabis regulatory agency 13
to report the violation to a law enforcement agency. 14
Sec. 8. The cannabis regulatory agency shall not enforce more 15
than 1 civil fine against a licensee for the same, continuous 16
violation. The cannabis regulatory agency shall do both of the 17
following: 18
(a) Treat related violations as 1 violation for purposes of 19
assessing sanctions and issue a single citation that addresses all 20
relevant violations instead of issuing a separate citation for each 21
violation. The cannabis regulatory agency may include multiple 22
violations in a notice, but the violations must be consolidated and 23
addressed together in 1 disciplinary action and resolved through 1 24
sanction or multiple sanctions that are imposed simultaneously. 25
(b) Impose only 1 of the following: 26
(i) A civil fine. 27
(ii) A set of graduated sanctions for the violations. 28
Sec. 9. (1) This act does not prohibit a licensee from 29
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engaging in a compliance conference or otherwise negotiating a 1
settlement or consent order with the cannabis regulatory agency to 2
resolve a violation or alleged violation without proceeding to a 3
contested case hearing, if the conference or negotiations are 4
otherwise allowed by law. The cannabis regulatory agency is 5
encouraged to resolve matters through consent orders under the 6
appropriate circumstances. A consent order is not effective unless 7
it is approved by the director of the cannabis regulatory agency or 8
director's designee. A consent order approved under this subsection 9
is considered a final cannabis regulatory agency action for 10
purposes of judicial review and enforcement. 11
(2) In determining an appropriate settlement or consent order, 12
the cannabis regulatory agency shall consider all mitigating 13
factors that may warrant leniency and all aggravating factors that 14
may warrant a stricter sanction. 15
(3) Mitigating factors described in subsection (2) include, 16
but are not limited to, any of the following: 17
(a) The licensee's good-faith efforts to comply and cooperate 18
with the marihuana laws, the rules, the cannabis regulatory agency, 19
and law enforcement. 20
(b) Whether the licensee reported the violation under section 21
7(1). 22
(c) Whether the licensee has any previous violations or has 23
not committed a violation not more than 1 calendar year from the 24
date of the last violation. 25
(d) Whether the licensee took corrective action upon 26
discovering the violation and, if so, the extent of the corrective 27
action. 28
(e) Whether the violation was minor or technical in nature. 29
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BJH H03623'25_HB6215_INTR_1 4qtik3
(f) The extent of the effect of the violation on the public. 1
(4) Aggravating factors described in subsection (2) include, 2
but are not limited to, any of the following: 3
(a) Repeated similar violations or a recent history of 4
violations within the previous 180 calendar days. 5
(b) Whether the licensee or the nature of the violation showed 6
an intentional or reckless disregard of the law. 7
(c) The severity of actual or potential harm caused by the 8
violation. 9
(d) Whether the licensee failed to cooperate with an 10
investigation conducted under this act or the marihuana laws. 11
(e) Whether the licensee attempted to conceal the violation. 12
(5) If the cannabis regulatory agency makes a settlement offer 13
or consent order proposal to a licensee to resolve 1 or more 14
violations, the cannabis regulatory agency shall include with the 15
offer a written explanation of the factors that the cannabis 16
regulatory agency determined were relevant under subsections (3) 17
and (4). 18
(6) The cannabis regulatory agency shall develop and publish a 19
nonexhaustive list of typical mitigating and aggravating factors 20
that it considers under this section. The cannabis regulatory 21
agency's disciplinary guidelines and sanction schedule must 22
integrate these factors to guide cannabis regulatory agency staff 23
in settlement negotiations. 24
Sec. 10. The cannabis regulatory agency may promulgate rules 25
under the administrative procedures act of 1969 to implement this 26
act. 27
Enacting section 1. This act takes effect 90 days after the 28
date it is enacted into law. 29