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On September 25th, the Oregon Liquor and Cannabis Commission (OLCC) sent notices to seven licensed testing laboratories, proposing license cancellation in some cases and suspension or fines in others. The notices center on alleged THC inflation, and extend back to instances identified in 2023. We only have eleven labs in Oregon accredited to do this mandatory work, so OLCC chasing seven of them is a big deal.
This story broke yesterday afternoon in the Portland Business Journal (“Journal”). See: Oregon cannabis labs face shutdown in testing crackdown. I’m guessing that link is paywalled for most of our readers, so I’m glad to have this platform to share some thoughts below.
The proposed suspension and cancellation notices
An obvious question here is why OLCC has proposed to expel some of these licensees, but only suspend or fine others. We’re talking about Category I violations across the board, after all, and the default sanction for any Category I violation is license revocation.
Here, though, the Commission seems to be looking at conduct in two distinct camps: a) conduct that simply could be negligence (and specifically, lazy sampling); and b) attempts to rig results by adulterating products. All
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