Overview
Of the 160,625 packages that were completely tested and sold by marijuana establishments (MEs) during the audit period, we determined that 1,517 (less than 1%) contained some amount of product that had been last tested for contaminants more than one year before. Sales of these products totaled $10,192,986 and consisted of 130,875 individual products in various forms and another 737 pounds of flower or buds.
The sale and consumption of marijuana products that contain materials that were last tested for contaminants more than one year before could result in a potential public health risk and loss of consumer confidence in the Massachusetts marijuana industry.
Authoritative Guidance
According to Section 500.160(4) of Title 935 of the Code of Massachusetts Regulations (CMR), which was in effect during the audit period, “Marijuana or Marijuana Products with testing dates in excess of one year shall be deemed expired and may not be dispensed, sold, Transferred or otherwise conveyed until retested.”
Reasons for Issue
The Cannabis Control Commission (CCC) has not developed and implemented monitoring controls to identify all products with materials that were last tested for contaminants more than one year ago and prevent the sale of those products to consumers.
Recommendation
CCC should develop and implement monitoring controls to identify all products with materials that were last tested more than one year ago and prevent the sale of those products to consumers.
Auditee’s Response
The Commission agrees with the recommendations and has taken actions to implement it. The Commission staff made improvements to controls since the start of adult-use sales and will continue to make changes. . . .
Based on the audit report, over 99% of products sold met the one-year period of testing. We agree that anything less than 100% is unacceptable. . . .
Through its regulatory scheme, the Commission built and deployed seed-to-sale reporting and prioritized investigators’ and compliance officers’ routine compliance inspections as controls. . . . To enhance these controls, the Commission requested that its vendor, Metrc, make modifications and enhancements in the seed-to-sale system in 2022 to highlight testing dates. Additionally, and again to improve controls, every fiscal year since its inception, the Commission has sought and gratefully secured funding to increase the number of investigation and enforcement staff and contracted support, including from specialized vendors for seed-to-sale software and financial and background investigations, which strengthen controls for testing and other elements of compliance.
Specific to this finding, the Commission has implemented controls—independent from the audit’s finding and recommendations—since 2020 to ensure products are sold within the test validity dates. These improvements include:
- The Data Manager creating a monthly report of testing dates from Metrc and provide the report to investigators and compliance officers. The report covers all licensees’ inventory, prioritizing retailers and [medical marijuana treatment centers].
- Investigator or Compliance Office will issue a notice of deficiency (NOD) if a product is out of testing validity dates. The first NODs for this deficiency were issued in April 2022.
Relatedly, the Commission seeks to clarify that products sold beyond the test date were not “expired” in the sense that other consumer goods may be. The shelf stability of cannabis depends largely on the specific product and any other ingredients, additives, and hardware that may be associated with it. For instance, edible products made with perishable ingredients may be recommended for consumption within a calendar year. Other products may be consumable outside of a calendar year. The purpose of the retest, and the reason the Commission requires it, is to ensure any new contaminants have not been introduced to the product, or that there has not been any degradation of the potency or cannabinoid concentration, for instance. This is especially true for products such as vape products and flower. Patients and consumers are advised, therefore, to carefully read the label of products for any specific consumption requirements or suggestions.
Auditor’s Reply
The Office of the State Auditor acknowledges that what is expired in the scenario described in Finding 1 is the test date of the product, not necessarily the product itself. We also acknowledge that, depending on the type of product and its associated ingredients, some products may be consumable outside of a calendar year. However, as noted above, state regulations consider products themselves to be expired (and not to be sold until retested) when the last testing dates were over one year ago.
In its response, CCC states that it had controls in place during the audit period and has continued to enhance these controls since its inception. As noted above, during the audit period, we identified $10,192,986 worth of product that contained some amount of material that was last tested for contaminants more than one year before it was sold to consumers. We believe this indicates that the process in place during the audit period needed improvement, and based on its response, CCC is taking appropriate measures to address our concerns in this area.
| Date published: | September 26, 2023 |
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