75B - PH CANNABIS TESTING LABS - Laserfiche WebLink

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Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 2 at laboratories licensed by the Bureau of Cannabis Control (BCC). Pursuant to various State laws, a cannabis testing laboratory may not hold any other license type, which is intended to ensure neutrality and product safety. Significance of cannabis testing Cannabis testing is a critical component of the commercial cannabis supply chain. Voters in Colorado, a state considered to be an early adopter of commercial cannabis regulations, approved Colorado Amendment 64 in 2012 legalizing adult -use commercial cannabis in their state. Although Amendment 64 permitted testing laboratories at the time, it did not require safety and potency testing for all types of commercial cannabis products. In July 2016, Colorado adopted regulations that required testing of all products, including medicinal products. Because the supply chain had been largely established without an integrated testing stage, the supply chain was disrupted by new and stringent requirements for product testing. California voters approved Proposition 64 in November 2016, legalizing certain types of commercial and adult use cannabis business activities. Proposition 64 requires testing for some cannabis products by July 1, 2018 and for all products by January 1, 2019. This accelerated timeline is based in part on lessons learned from supply chain disruptions in Colorado. The State of California began issuing cannabis business licenses on January 1, 2018; since then, numerous commercial cannabis testing laboratories have expressed interest in operating in Santa Ana's industrial zoning districts. Nearby jurisdictions have adopted ordinances to allow cannabis testing laboratories, including Bellflower, Costa Mesa, Irvine, Long Beach and Los Angeles, while the City of La Habra is considering ordinances in the near term to allow various forms of commercial cannabis business activity, including testing. Local impacts Testing laboratories are the least "public" of all the commercial cannabis business activities since they are prohibited from holding any other commercial cannabis license and may not co -locate with any other commercial cannabis business. Similar to other quality -control product testing facilities, they require high-value, high-technology equipment and employ highly -educated and highly - trained personnel. Because cannabis is a lightweight product, facilities may occupy as little as 500 square feet, although typical testing facilities range between 2,000 and 4,000 square feet. All testing laboratories are subject to strict State regulations regarding the quantity of cannabis that may be on the premises, the operation of equipment, and disposal of tested materials. The proposed ordinance revisions will also include mandates to ensure safe laboratory testing operations. 75B-2