A cannabis testing lab in New York is facing a three-year ban and a record fine of $2 million after state investigators found unacceptable levels of pesticides in products the company had cleared as safe for sale.
The Office of Cannabis Management on Wednesday said it was seeking to permanently close the company, Lexachrom Analytical Laboratory, after a roughly four-month investigation had uncovered several violations. Lexachrom, based on Long Island, already surrendered its license in June, citing financial woes. The announcement on Wednesday starts an administrative process that could lead to a public hearing before any penalties can be finalized.
The fine against Lexachrom is the biggest noncompliance penalty ever sought by the four-year-old office, which oversees the legal cannabis market, including 14 licensed labs responsible for ensuring that the products sold at dispensaries are safe to consume. It comes as the state is investigating several labs over testing irregularities that may have allowed unsafe products to reach consumers.
“When a lab fails to follow regulatory safety and reporting standards, it violates public trust and puts the health of New Yorkers at risk,” Felicia A.B. Reid, the cannabis agency’s acting executive director, said in a statement.
Alex Woodmass, the chief executive of Lexachrom, a small, family-owned facility, hung up on a reporter who called his cellphone seeking comment on Wednesday.
With Wednesday’s announcement, New York joins other states that have legalized marijuana in cracking down on labs that have provided erroneous results. Last month, Michigan shut down a cannabis testing lab for fraud that was owned by former State Police investigators.
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