New York State Cracks Down on Cannabis Lab with Stiff Penalties and Accountability

Image | adobe.stock/YARphotographer

Lexachrom Penalties

The New York State Office of Cannabis Management (OCM) announced in a recent press release (1), that following an extensive investigation which unveiled significant regulatory violations, that the organization would be serving a Notice of Pleading (Pleading) to Lexachrom Laboratory, a Long Island-based facility. During the investigation, OCM conducted two site inspections, as well as an “in-depth audit of Lexachrom’s records and practices,” (1). It was discovered that Lexachrom had experienced lapses in their quality assurance processes, among other failures.

Following their investigation, OCM identified that Lexachrom could be connected to a recall involving cannabis products that went through testing at the facility. Further testing showed that the items contained levels of pesticides that were unacceptable. OCM (1) expressed how, “The alleged violations jeopardized public health and safety; compromised the strict standards of laboratory operations; and, attempted to undermine the integrity of cannabis lab testing, which aims to ensure transparency and consumer confidence.” Lexachrom has voluntarily surrendered their permit.

As mentioned in the press release, OCM has proposed penalties that include (1):

1. To ban the lab from industry participation for up to three years
2. Financial penalties totaling between $890,000 and more than $2 million
3. A formal written closure plan to resolve outstanding issues.

By issuing the “Pleading” OCM mentioned that this was an important step to holding the laboratory accountable (1).

“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 (1). “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.”

“Testing labs are a cornerstone of the legal cannabis system,” said Stephen Geskey, Director of Labs, Compliance and Licensing at The New York State Office of Cannabis Management (1). “When a lab fails, it endangers consumers and disrupts the entire market. OCM is committed to protecting New Yorkers by enforcing strict standards and taking swift action to ensure the cannabis products on shelves are safe, tested, and reliable.”

Lab Testing Discrepancies

On past episodes of our Noid Knowledge podcast (2-5), Yasha Kahn discusses how the cannabis industry is experiencing manipulation of test results, also known as “lab shopping.”

“We had a lab in Pennsylvania, an excellent lab performing fast and accurate testing. Then some of our clients, cultivators, would come to us and say, you failed us, but this other lab offered not to fail us or didn’t fail us for anything,” explained Kahn. Instead of trying to figure out the discrepancies or remediate any issues such as mold, it was easier for those cultivators to just use the labs that passed them. Similarly, Kahn said that in Massachusetts, clients began coming to them demanding better potency results. “[They] would say that another lab is giving them much higher potency results. If we don’t do the same, if we can’t match the potency results that they get at the other lab, they’re going to leave us for that lab,” said Kahn (2).

“There are labs you can find that will pass you in almost every state, not every, but almost every state. And so…limits are just not a relevant topic up until the result manipulation issue [is addressed],” explained Kahn (2). “Once we deal with that problem...then we should address action limits. And there needs to be public health officials that make that decision on what the limits should be. I can see in the data, in labs that test honestly, around 12 to 16% of flowers will fail at the 10,000 colony forming units action limit. Around 4 % will fail at the 100,000 colony forming units action limit.”

References

1. https://cannabis.ny.gov/system/files/documents/2025/09/lexachrom-laboratory-violation-release-2.pdf (accessed Sep 15, 2025).
2. Krawiec, S. Result manipulation: From THC inflation to aspergillus https://www.cannabissciencetech.com/view/result-manipulation-from-thc-inflation-to-aspergillus (accessed Sep 15, 2025).
3. Noid Knowledge. Ep 24, Part I: Data Transparency in Cannabis Testing with Yasha Khan. Cannabis Science and Technology. November 21, 2024. https://www.cannabissciencetech.com/view/ep-24-part-i-data-transparency-in-cannabis-testing-with-yasha-khan (accessed Sep 15, 2025).
4. Noid Knowledge. Ep 24, Part II: Data Transparency in Cannabis Testing with Yasha Khan. Cannabis Science and Technology. December 12, 2024. https://www.cannabissciencetech.com/view/ep-24-part-ii-data-transparency-in-cannabis-testing-with-yasha-khan (accessed Sep 15, 2025).
5. Noid Knowledge. Ep 24, Part III: Data Transparency in Cannabis Testing with Yasha Khan. Cannabis Science and Technology. December 26, 2024. https://www.cannabissciencetech.com/view/ep-24-part-iii-data-transparency-in-cannabis-testing-with-yasha-khan (accessed Sep 15, 2025).