New York Proposes 3-Year Ban for Testing Lab Linked to Cannabis Recall

The company is also facing up to $2 million in penalties.

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The New York State Office of Cannabis Management (OCM) served a notice of pleading against Long Island-based Lexachrom Laboratory after an investigation uncovered severe regulatory violations. OCM’s investigation included two site inspections and an in-depth audit of Lexachrom’s records and practices. The findings revealed serious failures and lapses in quality assurance processes.

The OCM’s investigation also linked Lexachrom to a recall where cannabis products that passed Lexachrom testing were, upon additional testing, discovered to contain unacceptable levels of pesticides.

While Lexachrom voluntarily surrendered its permit, the OCM is seeking to ban the lab from industry participation for up to three years; financial penalties totaling between $890,000 and more than $2 million; and a formal written closure plan to resolve outstanding issues.

The OCM said the pleading is a critical step in holding Lexachrom accountable to consumers and regulation.

“New Yorkers expect transparency in the cannabis they purchase and that OCM is doing the work to investigate licensee malpractice,” said Felicia A.B. Reid, Acting Executive Director of The New York State Office of Cannabis Management. “When a lab fails to follow regulatory safety and reporting standards, it violates public trust and puts the health of New Yorkers at risk. OCM doesn’t play when it comes to these kinds of violations, and this agency will continue to take clear-eyed action to make sure that all licensees take the integrity of this industry seriously.”

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