Arizona Cannabis Testing Lab Fined Nearly $500k for Repeated Violations

An Arizona cannabis testing lab will pay a $468,000 civil penalty following repeated violations of state law, 3TV/CBS5 reports. The deal between the state and OnPoint Laboratory comes after the state threatened to pull the lab’s certification but does not require the company to admit to any liability or wrongdoing.

In a report prepared by the Arizona Department of Health Services (AZDHS), deficiencies and violations by the laboratory go back to September 2020, and the agency described them as “committed intentionally” and “a risk to the health, safety, and welfare of the public and medical marijuana qualifying patients.”

Inspectors found OnPoint failed to have complete records and documentation for inventory, cannabis disposal, maintenance records for equipment, chemical storage, and employee training, the report says. The report also found machines not properly calibrated to detect accurate levels of pesticides and herbicides, solvents, heavy metals, and bacteria. The company had been linked to a cannabis recall over possible Salmonella contamination.

The inspectors also found that at least one employee was trained to use a technique that produced inflated potency results, allowing dispensaries to charge more for the product.

The report also documented security lapses including a delivery driver accessing the area where cannabis was stored, non-employees accessing unlocked front doors, and propped open doors.

In a statement, OnPoint Spokesperson Steve Elliott told 3TV/CBS5 that the “violations noted in the Reports of Findings have been corrected and has provided verification that the laboratory owner no longer has a familial or financial relationship with or interest in a dispensary or related medical marijuana business entity.”

Under the terms of the deal, OnPoint will also select an outside auditor at its own expense, which AZDHS will have to approve, to perform additional inspections. The auditor will have to submit a written report to AZDHS within 30 days. The agreement came nearly 18 months after the initial inspection revealed the violations.