Arizona health department acts against cannabis testing labs

The Arizona Department of Health Services is taking steps against two cannabis testing laboratories, Full Spectrum Lab and Kaycha Labs, due to serious allegations regarding their testing practices. Full Spectrum Lab is under scrutiny for violating anti-nepotism laws linked to its largest client, while Kaycha Labs faces claims of providing inaccurate results regarding potency and contamination levels.

Full Spectrum Lab, located in Tucson, is accused of having a conflict of interest. The lab’s designated technical director is the son of the chief financial officer at Downtown Dispensary, which is Full Spectrum’s biggest client. This relationship raises concerns about the lab’s independence and reliability. In a letter dated May 13, the health department indicated that these violations could lead to the suspension or revocation of Full Spectrum’s license. However, the department has not specified when any enforcement actions will occur.

Simultaneously, Kaycha Labs, which operates in several states, including Arizona, is being referred to the health department’s enforcement team for alleged non-compliance with regulations. An 11-page violation report outlined a series of issues, including improper testing methods that could potentially misrepresent the potency and safety of cannabis products. The report suggested that the lab knowingly conducted tests that did not adhere to required scientific standards. For instance, Kaycha Labs was found to have retested potency samples at the request of clients without valid reasons, which could skew results higher than accurate levels.

These recent actions are part of a broader pattern in Arizona where cannabis testing labs have faced scrutiny. In 2020, the state penalized OnPoint and Pure Labs for similar violations, including conducting unreliable tests and having improper relationships with clients. Following these actions, both companies shut down.

The cost of cannabis testing remains high, with full-panel tests reaching up to $400 for each sample. Dispensaries often must test hundreds of samples regularly, creating pressure on testing labs to deliver favorable results. This competitive atmosphere has led to unscrupulous practices, according to industry experts. Demitri Downing, president of the Marijuana Industry Trade Association, pointed out that dispensaries may pressure labs to produce higher potency results, which can lead to unethical behavior.

The state of Arizona has a troubled history with cannabis testing. Although medical marijuana was legalized in 2010, the initial law did not require product testing, leading to concerns over inflated potency and the presence of harmful contaminants. A new law implemented in 2020 aimed to address these issues by mandating that testing labs be certified and overseen by the health department. As of April 2023, there were 11 certified testing labs in Arizona, including Full Spectrum and Kaycha.

Despite these regulations, many consumers remain skeptical about the reliability of lab results. Investigations by The Arizona Republic in 2022 revealed that some cannabis products sold to medical patients contained heavy metals, while others had significantly lower potency than advertised. Lawmakers have attempted to introduce reforms, but no new testing laws have passed in recent years.

An investigation into Full Spectrum Lab’s ownership revealed potential conflicts of interest. Sam Levenberg, the chief financial officer of Downtown Dispensary since 2018, founded Full Spectrum Lab in 2020 with his family members involved in the business. State law prohibits testing labs from working with dispensaries with which they have familial or financial ties. The health department’s letter stated that these violations create an appearance of impropriety and jeopardize public safety.

Kaycha Labs has also faced criticism for its testing procedures. The state report indicated numerous failures in testing protocols, including improper methods for microbial and pesticide testing. These discrepancies raised concerns over the accuracy of results, which could mislead consumers about the safety and quality of cannabis products.

As the health department continues its investigations, some dispensaries are taking precautionary measures. For example, Steve Cottrell, manager of Phoenix Cannabis Co., removed all products tested by Kaycha Labs from their shelves, prioritizing customer safety.

Industry insiders express concern that the competitive pressures within the cannabis testing sector may lead to further instances of misrepresentation and unethical practices. Cannabis activist Sam Richard noted that while many labs take their responsibilities seriously, the environment fosters challenges that could compromise public health. As the state grapples with these issues, the health department’s actions against Full Spectrum and Kaycha Labs underscore the ongoing need for transparency and integrity in cannabis testing.