Michigan Cannabis Testing Facility Iron Labs Pays Fine To Stay Open

Iron Laboratories LLC — one of six facilities in Michigan licensed to test marijuana for pesticides, molds, yeasts and THC content — will shell out $100,000 in a settlement with the state’s Marijuana Regulatory Agency in order to reopen.

What Happened

In mid-August, the MRA, a division of the Department of Licensing and Regulatory Affairs, suspended the business’s license for alleged violations of testing and reporting policies. 

“While we are pleased that the licensee worked quickly to resolve these issues, it is clear that these actions never should have happened in the first place,” MRA Executive Director Andrew Brisbo said in a Wednesday statement. 

“It is imperative that our safety compliance facilities — and all of our licensees — adhere strictly to the law and the administrative rules.”

In addition to the fine, the business must amend its practices, correct errors in the state monitoring database and update the MRA with additional reports for the next year. Its chief operating officer is also barred from attending sampling events, entering data in the state monitoring system and participating in customer transactions for 180 days.

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Why It’s Important

In the Iron Laboratories case, the state is demonstrating its force ahead of a major industry growth spurt.

The MRA opens applications for recreational marijuana businesses Nov. 1, and it expects significant interest.

“Michigan’s marijuana laws and rules were established to provide safe sources of medical marijuana to Michigan residents,” Michigan Attorney General Dana Nessel said in a statement. “Accurate testing and transparent reporting are critical to ensuring a safe product, and misleading or unreliable information only impedes that process.”

The attorney general's office is working with the MRA to enforce compliance and ensure the industry takes the regulations seriously, she said. 

What’s Next

The MRA said it will reinstate Iron Laboratories’ license after it approves new quality control assurances, microbial testing methods and other standard operating procedures. At that point, Iron Labs can reopen under strict regulatory oversight.

The company could incur additional fines or other penalties for failure to comply with the settlement terms.

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