One of Minnesota's longstanding cannabis testing labs has ended its cannabis and hemp testing program following regulatory troubles.
Legend Technical Services announced this week it has shut down its cannabis testing program. This comes weeks after the state’s cannabis agency froze Legend’s cannabis testing license after the lab failed to complete compliance requirements.
“We no longer see the Minnesota Cannabis Program fitting with our long-term corporate plans for the laboratory and consulting services at LEGEND,” Legend said in a written statement. “Under the current regulatory framework, we do not see foresee an ability to continue to meet our client expectations in an economically viable manner.”
Legend was founded in 1991 and was the first to develop testing methods for cannabis after Minnesota legalized medical use in 2014. It also does environmental and medical device testing.
The statement also described the circumstances around the decision as a “mutually frustrating period of change.” Legend’s cannabis and hemp program manager, Taylor Schertler, told MPR News that employees were informed of the decision last Friday and a few were let go.
He says he was one of at least three employees laid off.
“The main feeling was kind of a shock and bafflement that this decision to me, at least, seemed sudden,” Schertler said.
He says the decision has already shaken up the industry. Minnesota currently has five other licensed testing labs: ChRi Labs, Adams Independent Testing, PhytoLab, True North Analytical and Fina Lab. Three of them can do full compliance testing.
Back in February, testing backlogs meant turnaround times at Legend and ChRi — Minnesota’s two longest-running labs — stretched up to three weeks. Legend’s absence has left a gap among the remaining labs, most of which are new, and will likely lead to longer turnaround times for cannabis and hemp testing.
According to Schertler, the lab was working with some of the biggest players in the cannabis market including the two major medical cannabis businesses and several tribal nations — all who now have to find a new lab. MPR News reached out to several for comment and did not immediately hear back.
Less than a month ago, state regulators paused cannabis testing at Legend because it had not met security and testing requirements. Office of Cannabis Management communications director Josh Collins said the agency allowed Legend to operate because of sufficient testing capacity, but the lab had to complete “method validations.”
“We are disappointed to hear their decision, as Legend has been a part of Minnesota’s medical cannabis program since its inception,” Collins said. “The integrity, health, and safety of Minnesota’s cannabis market depend on all testing facility license holders being held to the same standards, including being able to demonstrate validated testing methods and ensuring minimum security measures are in place. Businesses must decide if they are willing to meet those consistent requirements if they intend to participate as a license holder in Minnesota’s cannabis industry.”
Last fall, Schertler told MPR News that the new testing standards are stricter compared to previous standards for testing medical cannabis, including adding more security cameras and testing methods for pesticides and residual solvents. Legend had to re-evaluate nearly all of its established testing practices. The lab had been running hundreds of products each week until its license paused last month.
Collins says all of the remaining labs are close to or already meeting the recommended 10-day turnaround time for testing to move product to market.
“OCM will continue to prioritize the development of a robust testing infrastructure to support the state’s emerging adult-use cannabis industry,” he said.
