CA Pot Market Slowdown

Many businesses in California are on edge with the looming July 1st deadline.

As part of Prop. 64, the agreement to legalize marijuana, California has set up strict lab testing guidelines for all products before they can be approved for sale.

These tests look for pesticides, residual solvents and microbial contamination. Needless to say, they are very important.

The problem is that there are no where near enough lab testing facilities for the volume of weed being manufactured and purchased. The fear is that there will be a bottleneck that will create a shortage of product on the market, which will hurt the cultivators, the shops and the patients!

Since legalization in January, dispensaries have been allowed to operate in a grey area, selling products that are not required to meet the safety standards laid out by Prop. 64. And some of them have even been found to be contaminated and harmful to use.

One of the most famous cases of contamination, concerns rapper Xzibit, who is currently the defendant in a class action lawsuit over his “Brass Knuckles” brand vape carts.

The six month grace period, which is coming to an end in July, was supposed to give companies a chance to get their products tested and ready for the market. However, because of the massive shortage of available labs, most companies have opted to focus on other issues in hopes there will be a solution by July.

There have only been 26 licenses issues for labs in California and only 12 of those are actually operating today. Currently, the turn around for test results is a minimum of three days, but no one is really sure how long it will be by July.

This type of bottleneck is not unique to California. It has been seen in both Oregon and Colorado’s legal markets over the last four years. Not only is it the first real test to legal weed in California, it is also an awesome opportunity for those who can figure out how to fill the gap in the market!