🧪 Cannabis testing in turmoil

Plus, lawmakers call for rescheduling

Good morning.

In this one, we have a column on how legal cannabis testing labs are failing consumers, a fact-check for the anti-legalization claim that Florida’s Amendment 3 would hand Trulieve a monopoly, and more. 

Let’s get to it. 

-JB & JR

This newsletter is 925-words or about a 5-minute read. 

💡What’s the big deal?

TESTING TROUBLES
States are failing to regulate cannabis testing

What happened: Multiple states are failing cannabis consumers with poorly regulated testing labs. It’s a widespread problem in the industry. 

It’s happening throughout the US. In California, a fourth lab recently had its license revoked, after a whistleblower sued the state’s Department of Cannabis Control in September over what they alleged is widespread testing fraud.

And a new investigation from The Boston Globe reports that the state’s testing regulations are so poorly enforced that cannabis brands often “shop around” until they get the most favorable results — whether that’s potency, or obscuring the fact that the cannabis may be moldy or contain concentrations of pesticides or other chemicals harmful to humans.

Connecticut and New York have dealt with backlogs and other problems with their testing labs as well. 

Back up: Lab shopping has been an open secret in the cannabis industry, since, well, the start of legal cannabis.

In November of last year, we reported on a study from Yasha Kahn, of the Massachusetts-based MCR Labs, which found that labs routinely inflate the potency of tested products to the tune of 25% or more. 

Khan said at the time that some labs are forced to do this to survive in a competitive market. Others are simply poorly regulated, or lack the oversight and rigor of other, more established federally-regulated industries.

Inaccurate labels are one thing. It’s another thing to combust moldy pot or pesticides and inhale it into your lungs. 

The industry take: “The cannabis testing lab markets have proven over and over again that they cannot govern themselves effectively – regulators have to provide a strong structure of governance and enforcement,” Sarah Ahrens, the president of the New Jersey-based testing lab Trichome Analytical, told MJBizDaily

Why it matters: Safe, tested cannabis is one of the chief justifications for legalization. 

Without that, consumers can’t trust what they are putting into their bodies. That’s what the entire edifice of legal cannabis is based on. 

There are a few ways to improve the system, though it’s easier said than done without the federal government leading on the issue, as scientists have called for

Ideally, the federal government could step in to institute national standards and develop an unbiased regulatory agency not funded by the industry housed within the Food and Drug Administration or even the Centers for Disease Control. 

Absent that, state regulators should work to improve testing standards and rigor. And states like Ohio, which just opened its cannabis market, and Florida, which is weighing legalization, should learn from the failures that came before them.

- JB

📣 Quotable

“We applaud the Biden-Harris Administration’s efforts in initiating this review, conducting a thorough scientific and medical analysis, and engaging in the rulemaking process,” Reps. Jerrold Nadler (D-NY) and Frank Pallone (D-NJ), wrote in a letter to Attorney General Merrick Garland, urging the Drug Enforcement Administration to reschedule cannabis to less restrictive Schedule III. 

“We urge you to swiftly complete this process and transfer marijuana to schedule III. We also call on the Department of Justice and HHS to continue to assess whether schedule IV, schedule V, or descheduling may be appropriate.”

Nadler and Pallone both want rescheduling to happen — but the letter goes further, and suggests agencies evaluate whether an even lesser schedule, or fully removing cannabis from the list of federally controlled substances would be more effective than Schedule III.

🥊 Quick hits

Politifact says ‘No on 3’ campaign is lying 🌿

The ballot measure to legalize cannabis in Florida, Amendment 3, wouldn’t create a cannabis monopoly in the state, Politifact, a nonpartisan fact-checker, said. That’s despite what both the ‘No on 3’ campaign and Gov. Ron DeSantis suggested in attack ads. “Just because millions are being spent does not mean the ballot measure is rigged," said Ciara Torres-Spelliscy, a Stetson University law professor, said. Read the Politifact report here.

Georgia Hemp Act goes into effect 🍑

The Georgia Hemp Farming Act went into effect on October 1. The law places strict regulations on hemp products sold within the state — it makes selling consumable hemp products to those under 21 illegal, and requires hemp retailers to obtain a state license. Read more from Atlanta News First.

Layoffs in OKC 👀

An Oklahoma cannabis firm, Mood Cannabis, filed a notice indicating it plans to lay off 120 workers, reports The Oklahoman. The company launched in 2022 as an online-only dispensary selling low-THC hemp products.

🤝 Deals, launches, & partnerships

Philly-based influencer GillieDaKing, with over 3.7 million followers on Instagram, is launching a line of cannabis products called Gillie Grows with Insa.

😜 One fun thing

The LA-based cannabis brand Dr. Norm’s is launching a ‘fiery hot’ Cheetos bar with 100mg of THC. Yum.

📰 What we’re reading

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