Insufficient marijuana labs may cause bottleneck

Published 5:55 am Wednesday, January 27, 2016

Oregon has no shortage of people willing to grow and sell marijuana under its regulatory system for the recently-legalized crop.

However, the state is facing a dearth of labs that can test marijuana products for the psychoactive chemical THC as well as prohibited pesticides and contaminants, as required by law.

At this point, 228 growers, 96 retailers, 38 processors, 31 wholesalers and one researcher have applied for marijuana licenses with the Oregon Liquor Control Commission, which oversees the regulatory tracking system for the crop.

The number of laboratories that have applied? Zero.

Complications and expenses, rather than a lack of interest, have prevented laboratories from enrolling in the system so far, said Steve Marks, OLCC’s executive director.

While no existing laboratories have yet been licensed by OLCC for marijuana testing, a handful have expressed interest in obtaining certification from the Oregon Health Authority, Marks said. Both agencies must approve labs for the tracking system.

Insufficient laboratories could prove to be a bottleneck in Oregon’s marijuana regulatory system, at least initially. The system will be in “good shape” if six or seven facilities are licensed, but will face challenges with only one or two, he said.

“We’re going to have enough eventually, it’s just how quickly they can do it,” Marks said.

Some laboratories that provide testing for industrial companies may be able to enroll without significant changes, but smaller facilities that are already serve marijuana producers may have to undertake significant upgrades, he said.

New equipment needed to comply with testing standards can cost $50,000 and needs to be calibrated for marijuana, Marks said. Labs will also need to train existing employees or hire more personnel to handle the added workload.

Medical marijuana dispensaries can currently sell the recreational crop from “grandfathered” grow sites, but retail marijuana sold to consumers must meet testing requirements by June 1.

Growers who want to produce recreational marijuana for retail sales must demonstrate they have water rights to grow the crop and obtain a statement from their city or county government attesting they meet land use requirements.

Producers can grow canopies of marijuana up to 10,000 square feet indoors and 40,000 square feet outdoors, but commercial marijuana production is currently prohibited by 76 cities and 19 of Oregon’s 36 counties.

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