Maine’s medical cannabis providers have once again fought off a controversial requirement to start testing their products — at least for now.

A legislative committee killed one bill and carried over another that would have instituted testing and tracking requirements that industry members have said for years would put them out of business or force price increases.

While Maine’s recreational cannabis market requires testing for contaminants and potency and includes potency limits, the medical market requires neither. Maine is the only state that doesn’t mandate medical cannabis to be tested.

LD 104, proposed by the state’s Office of Cannabis Policy and sponsored by Rep. Marc Malon, D-Biddeford, would have required seed-to-sale plant tracking and standardized chemical, mold and heavy metal testing between recreational and medical cannabis. LD 1847, sponsored by Rep. Anne Graham, D-North Yarmouth, sought to do the same while also adding potency caps on edibles. The latter will be taken up again next year.

“I have listened and I’ve read testimony and I’ve worked with public health advocates to make sure that the medical cannabis industry survives, thrives and (can) be regulated so that when patients buy cannabis, they know that they have a safe product and they know what the potency is,” Graham said. “ … Clearly our regulations and how we look at (testing), it needs work, a lot of work.”

But it’s also “hugely complicated,” she said, and needs more time.

Jennifer Belcher, president of the Maine Cannabis Union, said there’s a “sense of relief now that we know that nothing is going through this year. If either bill passed as written, she said “the medical program would be done.”

Belcher was encouraged by how receptive the committee was to the industry’s concerns, and while “it is nerve-racking that we are going to face this next session,” there’s also an exciting opportunity for collaboration.

“(LD) 1847 gives us an opportunity to focus on the facts, the research, the science,” she said.

AN ONGOING FIGHT

John Hudak, director of the office, has been clear that implementing a testing program is a top priority, but this session was the first time since he was appointed to the office in late 2022 that an official proposal has been before the committee.

Following a 2022 law, any major substantive rule-making from the department must be approved by the Legislature.

“If a business model is one in which producing clean cannabis is too costly, there’s something wrong with the business model,” he said previously. “We’re not going to focus on profits at the expense of patients’ health.”

Supporters of the bill have referenced a 2023 report by the Office of Cannabis Policy that found about 45% of the cannabis in Maine’s medical market would fail the standards set for the recreational market. They also pointed to the influx of suspected illegal growers allegedly tied to Chinese organized crime who have been selling bulk cannabis at “rock bottom” prices to legal dispensaries.

However, in a public hearing last month, dozens of medical cannabis caregivers and consumers testified in opposition to the bills and the committee received roughly 1,000 pieces of written testimony. They criticized the state’s testing program, citing several recalls in the recreational program last year that have brought the science behind the tests and the state’s standards into question. The recent recalls, they argue, prove the testing doesn’t work and shouldn’t be forced on the medical program.

The fight is just the latest in a series of uphill battles for Maine’s medical cannabis providers.

Oversaturation, competition with recreational cannabis and high costs have caused revenue to plummet and people to leave the industry in droves.

Unlike many other states, Maine’s medical cannabis market has always outperformed its recreational counterpart. But the gap between the two is narrowing, and in 2023 the medical market brought in about $280 million (down from $371 in 2021), while the recreational market brought in $217 million. The number of providers, known in the industry as caregivers, has been cleaved in half from its 2016 peak of 3,257 to 1,627 in May, according to state data.

“We are literally fighting for our lives at this point,” Belcher said.

OTHER BILLS

The committee carried over several other bills, including one that would require the director of the Office of Cannabis Policy be confirmed by the Legislature rather than appointed by the commissioner of the Department of Administrative and Financial Services, which oversees the office. Sen. Craig Hickman, D-Winthrop, who drafted the bill, said the committee needed time to investigate whether there are other directors, like the heads of the state’s alcohol and gambling control agencies, that should also be subject to legislative approval.

Lawmakers also carried over a proposal to allow cannabis “social clubs” or public consumption, based off recommendations in a task force report this winter.

Earlier this session, the committee killed two bills that would have implemented revenue sharing across Maine’s cannabis industry, meaning towns and cities that allow recreational businesses could receive a portion of the tax revenue they generate. Legislators hoped the bills would encourage more towns and cities to allow cannabis shops and help them recoup the costs of overseeing the recreational program.