MichBio Supports SB 704 to Establish State Cannabis Reference Laboratory

MichBio has expressed strong support for SB 704, legislation that would establish a State Reference Laboratory to strengthen oversight, standardization, and scientific integrity in Michigan’s cannabis testing system - see our letter of support.

Over the past several years, cannabis markets nationwide - including Michigan’s - have grappled with persistent concerns over potency inflation and inconsistent laboratory results. Numerous media investigations across legal cannabis states have documented significant THC potency discrepancies between labs, as well as allegations that certain laboratories inflated results to satisfy client demand. Because retail purchasing decisions are often driven by labeled THC potency, these inflated results can distort consumer behavior and create unfair competitive advantages.

In highly competitive markets, some operators have engaged in “lab shopping” - seeking out testing facilities perceived to produce higher potency numbers. Reports in Michigan and others states such as Colorado, California, Nevada, and Massachusetts have highlighted systemic variability in THC testing results and regulatory actions taken against labs accused of overstating potency. Such practices erode consumer trust, disadvantage compliant operators, and strain regulatory oversight systems.

Michigan’s Cannabis Regulatory Agency (CRA) has taken steps to address these challenges, but as MichBio noted in its February 20 letter to the Senate Regulatory Affairs Committee, the absence of a centralized, state-run reference laboratory limits the state’s ability to establish uniform scientific baselines and independently verify testing methodologies.

SB 704 offers a science-based solution by creating a State Reference Laboratory that would: 

• Establish uniform testing standards and validated methodologies, reducing variability among private labs. 

• Provide independent verification and audit capacity, allowing regulators to conduct confirmatory testing and investigate discrepancies with greater technical authority. 

• Protect market integrity and fair competition, ensuring that success is based on product quality and compliance - not inflated potency results. 

• Strengthen consumer confidence and public health protections through reliable and consistent testing standards.

By establishing a state reference laboratory, Michigan would join a growing number of jurisdictions recognizing that robust scientific oversight is essential to maintaining credibility in regulated cannabis markets. A centralized reference lab would serve as the benchmark against which private laboratories are measured, helping to eliminate incentives for potency inflation and reinforcing consistent, defensible testing standards.

Michigan has long been a leader in laboratory sciences and public health infrastructure. SB 704 builds on that legacy while directly addressing testing inconsistencies that have challenged cannabis markets nationwide.

MichBio urges passage of SB 704 as a forward-looking policy that will enhance regulatory consistency, protect consumers, and ensure a fair, transparent, and scientifically credible cannabis marketplace in Michigan