Maine’s governor called for lab testing and stronger tracking of the state’s vibrant medical cannabis market as it continues to grapple with illicit cultivators suspected of sending their supply out of state.
Gov. Janet Mills made her comments during her Jan. 28 state of the budget address about two weeks after the state’s cannabis regulator told the legislature’s Committee on Veterans and Legal Affairs that his hands were tied when issuing licenses to illicit operators. Meanwhile, a bill has been introduced to address some of her concerns regarding track and trace and lab testing of medical cannabis.
Maine has 1,677 registered caregivers throughout the state, of which, 237 operate storefronts that essentially serve as medical cannabis small businesses. There are also 46 non-caregiver medical cannabis retail shops. None are required to submit tracking data to the state or test products.
This light regulation has led to growing concerns about illegal cultivation sites in rural Maine that are potentially fueling underground and gray markets outside of the state. More than 120 suspected illegal grow operations have obtained medical caregiver licenses since the state crackdown first began in January 2024, according to a Jan. 30 story in the Portland Press Herald.
“I want to say that the time has come to better regulate the medical market with testing and tracking requirements so that those consumers – just like recreational users – can be confident that those products are safe. If you are ingesting cannabis for medical reasons, you should want to know that you are not consuming pesticides or other contaminants that are going to make your health worse,” Mills said.
“We cannot continue to encourage the wild wild west of medical cannabis, which is contributing to the illicit market that has emerged – and that needs to be fought – across rural Maine,” she added.
State Rep. Marc Malon of Biddeford filed HP 69 on Jan. 8, which would require seed-to-sale tracking of medical cannabis plants and sets new testing requirements.
The bill requires testing of all harvested medical cannabis for metals, pesticides, molds, mildews and other harmful microbes as well as the THC potency and cannabinoid profile. Those results must be reported to the Department of Administrative and Financial Services’ Office of Cannabis Policy (OCP). The bill also allows OCP to take samples of a harvest in order to audit that harvest’s testing results.
Medical operators would also have to track all of their products in the statewide inventory tracking system and retain that information for at least six years. The bill does not specify a track-and-trace vendor, but the state currently uses Metrc for its adult-use market.
Maine lawmakers have repeatedly attempted to institute mandatory lab testing and track and trace for medical cannabis providers, but those efforts fell short amid staunch pushback from caregivers.
The Medical Marijuana Caregivers of Maine Trade Association (MMCM) argued in a response to the governor’s address, that the plan to impose testing and tracking requirements on medical cannabis producers would create an unfair burden on caregivers.
“If Governor Mills is concerned about illicit market activity, the solution is stronger law enforcement for known bad actors, not punishing legitimate small businesses with costly regulations,” wrote MMCM President and Board Chair Tammy Smith. “Mandatory testing will not curb illegal grows — it will only push legal caregivers out of the market, making illicit operations even more dominant.”
OCP director says he cannot deny licenses to illicit growers
HP 69 has been referred to the Committee on Veterans and Legal Affairs, which heard a routine report on the cannabis program from OCP Director John Hudak on Jan. 15.
At the hearing, Rep. Ann Fredericks said the state’s sheriff’s departments have struggled with the proliferation of illicit grow sites. Many of those sites are suspected of being involved with Chinese organized crime, which is often referred to as “Triad.”
“Just this week the sheriff’s association of our state had a legislators presentation on Tuesday. The talk was all about Triad weed and the illicit market.” she said. ”Their hands are tied because the violator at that address may be set aside, and then there’s a new name that comes forward at that same address that is now being licensed by OCP [Office of Cannabis Policy]. It seems like we’re in a crisis right now.”
About a year ago, reports began to emerge about an increase in illegal grow sites in rural Maine. Many of the sites that have been raided by local law enforcement were allegedly operated by Chinese nationals. Much of the illicit product is suspected of being trafficked outside of the state, which already has a vibrant adult-use retail market. Similar examples of illicit grows feeding outside markets have been suspected in states with an abundance of legal grows, such as Michigan, Oklahoma and the West Coast.
OCP Director Hudak told the committee that his office was unable to deny medical license applications based solely on the fact that the applicant may or may not have been involved in an illegal grow site.
“There have been instances where people applied to our medical program and in some cases we have no grounds to bar them,” said Hudak. “They haven’t been convicted of a disqualifying offense. They filled out their form, they’ve paid their fees, in some cases. They’ve worked with consultants where there are language barriers. Under very few circumstances do we have the authority to deny individuals from the program after they have been caught up in one of these search warrant executions or because they operate out of an address that previously had a search warrant executed.”
Hudak also noted that these illicit growers who may seek legitimate licenses pose a challenge considering part of the program’s intent is to license people with prior drug-related convictions. He suggested that some of these applicants may return to illicit grows, using their license as what he described as a “get out of jail free card.”
“It’s important to bring illicit actors out of the shadows and into the regulated program,” he said.
Cheehaut Kang, a Brooklyn-based consultant who helps Chinese growers obtain caregiver licenses, told the Portland Press Herald that many of the Chinese workers who have been caught up in illicit grows function as small businesses and may have struggled to fully understand the illegality of their actions due to a language barrier.
He also acknowledged that much of the product is grown in homes with mold and pesticides.
“I’m well aware of their practices,” Kang told the Portland Press Herald. “I partake, but I would not smoke my clients’ stuff.”
