Cannabis processor loses medical license, fined $100K for violations

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Cannabis processor loses medical license, fined $100K for violations

By Emily Brown

Published: Jul. 5, 2023 at 6:10 PM EDT|Updated: 14 hours ago

 

 

 

 

 

MT. MORRIS, Mich. (WNEM) - A Mt. Morris medical and recreational cannabis processor must surrender its medical processor license, meet stringent compliance requirements for its adult-use processor license, and pay a $100,000 fine for violating laws, according to the Cannabis Regulatory Agency (CRA).

The CRA announced it is taking disciplinary action against Sky Labs LLC, located on 9421 N. Dort Hwy. in Mt. Morris for multiple violations that occurred in 2021 and 2022.

“When businesses don’t follow the laws and rules that govern the cannabis industry, it is important that they be held accountable for their actions,” said CRA Executive Director Brian Hanna. “It is vital to the health and safety of the public that all licensees in Michigan’s cannabis industry abide by the rules and laws that are in place to protect the public.”

For Sky Labs to continue to maintain its adult-use processor license, they will need to have a full, onsite audit conducted by CRA staff and correct any deficiencies found, provide a copy of all standard operating procedures and all logs maintained on a monthly basis for one year to the CRA, and pay the $100,000 fine.

If Sky Labs cannot comply to the terms in a timely manner, its license will be suspended until the terms are met.

The CRA discovered in the spring of 2021, Sky Labs vape cartridge concentrates failed safety compliance testing for banned chemical residues. In addition, a product failed safety compliance testing for Vitamin E Acetate, which is banned for inhalation by the Food and Drug Administration.

In September 2021, the CRA observed 11 employees working in production of marijuana products that were not trained on safe food handling and were not in the possession of food handling training certificates. In addition, Sky Labs was producing, packaging, and storing products in a trailer without video surveillance along with other products and storage that were not tagged with the statewide monitoring system (Metrc).

The CRA audited multiple Metrc package tags from Sky Labs inventory which previously passed full compliance testing in December 2021. The first packages tested were not the same as those tested a second time and/or the packages were not in the same condition as they were previously, the CRA said.

In June 2022, Sky Labs distributed Chewii Sour Cherry Edibles packages to 10 employees of the adult-use processor establishment. They were handed out as trade samples and were mislabeled as containing CBD rather than THC. An employee gave her 4-year-old child the edibles. The child ate two edibles that contained 20 milligrams of THC, and the child became seriously ill and needed to be hospitalized. A police report was filed with the Davison City Police Department and an investigation was opened with Child Protective Services.