Oregon Cracks Down on THC Inflation and Testing Labs

On September twenty fifth, the Oregon Liquor and Hashish Fee (OLCC) despatched notices to seven licensed testing laboratories, proposing license cancellation in some instances and suspension or fines in others. The notices middle on alleged THC inflation, and lengthen again to situations recognized in 2023. We solely have eleven labs in Oregon accredited to do that obligatory work, so OLCC chasing seven of them is an enormous deal.

This story broke yesterday afternoon within the Portland Enterprise Journal (“Journal”). See: Oregon hashish labs face shutdown in testing crackdown. I’m guessing that hyperlink is paywalled for many of our readers, so I’m glad to have this platform to share some ideas under.

The proposed suspension and cancellation notices

An apparent query right here is why OLCC has proposed to expel a few of these licensees, however solely droop or advantageous others. We’re speaking about Class I violations throughout the board, in spite of everything, and the default sanction for any Class I violation is license revocation.

Right here, although, the Fee appears to be conduct in two distinct camps: a) conduct that merely may very well be negligence (and particularly, lazy sampling); and b) makes an attempt to rig outcomes by adulterating merchandise. All seven labs received dinged on “a”, whereas three additionally received dinged on “b.”

Within the “a” notices, fees embrace: i) failures to make sure a complete batch of marijuana was obtainable for sampling, and ii) inadequate sampling increments. Within the “b” notices, OLCC alleges that “the Licensee’s workers, brokers or representatives deliberately added a cannabinoid focus, kief [], to the samples taken for testing.” Which isn’t nice.

A very long time coming

Controversy round hashish testing is an outdated story in Oregon. Previous to OLCC regulation, we had “medical marijuana” from 1998 to 2014 with no testing necessities by any means. In 2014, after dispensary licensing commenced, the Oregon Well being Authority (OHA) issued poorly-written testing guidelines that nobody actually adopted. In these days lab procuring was widespread, dozens of dangerous pesticides had been allowed, and OHA didn’t even have the authority to manage producers or labs, anyway.

In 2015, the Oregonian revealed a landmark investigative piece known as “A Tainted Excessive” exposing all of this and extra. In 2016, the OLCC program launched, with extra testing guidelines and extra enforcement authority, at which level a severe testing bottleneck ensued. As soon as issues cleared up, focus shifted to microbiological and heavy metallic contaminants, alongside inflated THC numbers. In 2019, the Secretary of State advisable shelf audits at dispensaries, which ultimately did happen.

The most recent noise round testing was the aspergillus litigation, the place the Hashish Trade Alliance of Oregon (CIAO) gained a brief keep of enforcement on testing for that mildew, and OHA deserted guidelines on the subject. In 2023, we additionally received Home Invoice 2931, which creates a state-run hashish reference lab. In June of final 12 months, I wrote:

Why did everybody, together with trade, really feel a state hashish reference lab was wanted? First, for so long as the OLCC program has existed (and even earlier than that, within the OHA medical program), companies have fielded complaints from hashish licensees round testing. These complaints embrace allegations of labs spiking efficiency ranges on check samples, and of labs falsifying failed check outcomes. From there, you have got the associated ideas of “lab procuring” by licensees and “pay to play” testing with labs.

State companies have argued that to correctly regulate licensed labs, an impartial mechanism to confirm check outcomes is required. Audits have equally advisable this. The newly created reference lab will present: a) a impartial, third-party supply for testing and re-testing; b) high quality assurance evaluation for licensed labs; and c) a mechanism to audit complaints from licensees about defective lab testing. This can be a optimistic growth.

So, everybody has been this for some time. And now we’re full circle on this inflated THC factor– an issue that’s not distinctive to Oregon.

What occurs subsequent?

All the OLCC labs that acquired the September twenty fifth notices have till tomorrow, October twenty fifth, to request a listening to earlier than an administrative regulation choose. This can be a essential deadline; hopefully all of them have completed so. The foundations additionally require a solution to be filed with any listening to request, however historically OLCC affords licensees as much as two weeks previous to any prehearing convention to make the submission. (This isn’t recommendation.)

You’re right here for the large query, although, which is: does OLCC plan to go to the mat on this, with large fines, suspensions and license cancellations? I don’t suppose so, essentially, nevertheless it’s clearly a case-by-case factor. A lot will rely upon the underlying testimony and experiences; whether or not a lab proprietor knew what their workers had been allegedly doing; how the licensees reply; and so forth. However as I advised the Journal: “They’ll’t haven’t any labs. OLCC could push for labs to return to them and say we’re sorry, it is going to by no means occur once more, and present inner (commonplace working procedures) and possibly artistic options”. . . so as to safeguard testing.

Is that this only a downside for labs?

No. I advised the Journal that “it’s not truthful simply accountable the labs.” And it’s not. With kiefing, specifically, the lab workers would have acquired the focus from clients in most or all instances. This conduct is in the end pushed by market pressures: for no matter silly purpose, the strongest weed tends to draw probably the most curiosity and highest costs. (Fortunately, alcohol doesn’t work this fashion.)

However I digress. Earlier than signing off, I’d like to focus on one remaining quote I gave the Journal. It’s this: “They’re going after the labs, then the workers concerned, then all of the producers and wholesalers who’re implicated. You noticed the primary wave, however you’re going to see extra.”

Anybody else receiving a violation discover from OLCC can have the identical alternative to reply, and hopefully settle, because the labs. All of this can take a while to play out.

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If, within the coming weeks and months, you’re one of many unlucky licensees or permittees on the receiving finish of an OLCC charging doc, I like to recommend you begin your studying right here. Then, give us a name. We may help.