Plan of Progression

A robust seed-to-sale tracking system for medical cannabis in Michigan is finally underway. A strictly regulated industry is no different from the agricultural industry, as cold items, produce, meat and vegetables, as all need similar systems in place to ensure freshness, quality and safety.

As Michigan adopts the three-bill batch of regulations signed by Gov. Rick Snyder last year, 11 companies bid to run the state’s tracking system. The Michigan Department of Licensing and Regulatory Affairs (LARA) has recommended that Florida-based Franwell oversee the state’s seed-to-sale tracking system. Franwell Inc.’s software, titled “Marijuana Enforcement, Reporting, Tracking and Compliance” (METRC) is the same system that’s currently used in Colorado and other states that have legalized medical or recreational cannabis. The $447,625 contract would include a hosting charge of $35,000 per year for the first two years. There would also be five possible annual contract extension options.

Other companies are have placed bids for the Michigan contract, including Florida-based BioTrackTHC, Denver-based MJ Freeway LLC, among others, but the Department’s recommendation has officially gone to Franwell. Franwell only engages in contracts with government agencies and not with individual collectives or businesses. Scott Denholm is Executive Director at Franwell’s Marijuana Business Unit. “Franwell was selected from a highly competitive bid process,” Denholm told CULTURE. “While we don’t have all of the details we feel our experience and capability was a key factor in that decision. We are deployed in four states, Colorado, Oregon, Alaska and Maryland, and have a proven track record of successful deployments and a strong industry support program.” Franwell METRC supplies radio frequency ID (RFID) tracking technology to a number of states and was awarded a five-year, $1.2 million contract in Colorado.

“Where we are deployed products are safe for consumers, federal intervention has been very low and prices remain stable.”

Every cannabis product in Michigan will have a unique identification number that start with the grower last throughout that product’s life when it is sold at a collective. “We believe the benefit [of a tracking system] is universal in that it benefits everyone connected to the industry,” said Denholm. “A solid regulatory system helps the industry by providing a state with a system that meets the standards of the [Department of Justice] Cole Memo allowing a state to have a marijuana program that will not be contested at a federal level.” This system also ensures that only legally cultivated and produced cannabis and cannabis products are sold in the regulated market. Additionally, this system ensures public safety for consumers. “It benefits the consumers purchasing product by providing a strong chain of custody, traceability and properly tested and verified product,” Denholm said. Finally, this system will serve as an accounting system to regulatory agencies, ensuring compliance by all entities involved. Overall, this system provides a necessary level of consistency in Michigan’s medical cannabis industry.

The recent formation of the newly formed Bureau of Medical Marihuana Regulation will fall under the Department of Licensing and Regulatory Affairs. The Marihuana Tracking Act resembles rules that are mandated in other states such as Colorado. Michael J. Loepp is Communications Representative for the cannabis Department of Licensing and Regulatory Affairs. “At this time, the Department has recommended the award go to Franwell Inc.; however, the contract has not yet been finalized,” Loepp told CULTURE. “The system, pursuant to the [Marihuana Tracking Act, 2016 PA 282 Act], is required to at a minimum to be capable of storing and providing access to information that, in conjunction with one or more third-party inventory control and tracking systems allows the system to verify a registry identification card is current and valid and has not been suspended, revoked or denied, retain records of the date, time, quantity, and price of each sale or transfer of marihuana to a registered qualifying patient or registered primary caregiver; track sales and transfers, and monitor marihuana seed-to-sale transfers.”

Seed-to-sale tracking not only benefits the state government, but it also benefits the consumer as well. A solid tracking system is one way of showing the federal government that no enforcement is necessary. “Many people believe that regulations are an industry hindrance but our experience has been just the opposite,” Denholm said. “Where we are deployed products are safe for consumers, federal intervention has been very low and prices remain stable.”