The Unintended Consequences of Mandatory Pre-Packaging in the cannabis industry

The medical marijuana scene in Oklahoma stands on the cusp of significant change as Representative TJ Marti makes another attempt to introduce pre-packaging regulations with HB 3361, echoing the ambitions of similar, previously unsuccessful bills.

HB 3361 sets forth that all medical cannabis must be pre-packaged before distribution to dispensaries, specifying package sizes to range from a minimum of half a gram up to a maximum of three ounces. This latest legislative effort for pre-pack, surfacing despite prior dismissals by both the Oklahoma legislature and the Governor, reignites debates over the potential consequences such a mandate may hold for patients, business licensees, and the broader environmental landscape. In this blog, we delve deep into the pivotal issues surrounding the concept of pre-packaged cannabis, highlighting the myriad ways in which this strategy could inadvertently inflict more harm than benefit.

1. Environmental Impact and Waste: The cannabis industry is already grappling with sustainability issues, particularly regarding packaging waste. The EPA estimates that single-use containers and other plastic packaging waste accounts for 30% of total waste produced in the United States annually. 91% of packaging materials go unrecycled, contributing to the waste problem, with the cannabis sector playing a role in this issue. According to Sustainable Cannabis Coalition, In 2020, the U.S. cannabis industry used almost one billion pieces of single-use plastic.
   
   While the legislature looks for ways to reduce risk, they should also take into account environmental and sustainability risks. As the Oklahoma legislature points to other states who have implemented pre-packaging mandates, they conveniently ignore the plastic waste piling up in those states, and how urgently some of them are looking for new solutions.
   

2. Reduced Patient Interaction with the Product: The therapeutic effectiveness of medical marijuana is partly determined by its cannabinoid and terpene profiles. Allowing patients to interact with cannabis helps them find and develop more personalized and productive medicinal interventions. Many studies have established “terpene profiles not only embody the characteristics of cannabis genotypes, but their entourage effect with cannabinoids could enhance their medicinal functionality.” They enhance many therapeutic benefits, especially as aromatherapy.
   
   Eliminating the opportunity for patients to engage directly with the unique terpene profiles of specific cannabis strains can result in them selecting medications that may not fully meet their therapeutic needs. The nuanced interplay of terpenes and cannabinoids, known for their synergistic effects, is crucial in tailoring effective medical treatments. This sensory engagement not only aids in identifying the most beneficial strains but also enhances the overall therapeutic efficacy of the chosen cannabis product.
   

3. Supply chain complexities: Historically, large quantities of cannabis could be transferred in a minimal number of containers, such as a single bag for a 10lb transfer. However, HB 3361 mandates packaging in smaller quantities, like 3oz bags, drastically increasing the number of packages required for the same amount of product.

   This shift results in a minimum 5:1 increase in packaging volume for just one pound of product, assuming only 3oz bags are used—which will almost never be the case given consumer market demand. The complexity escalates when considering packaging in even smaller units, such as 3.5g (eighth of an ounce) portions, where 130 bags would be needed for a single pound, and a maximum harvest batch would require 1,130 bags.
   
   The cost of these materials, along with the design and labor involved in packaging that meets state regulations would add a significant overhead to the product's final price for patients. More packages mean more handling, tracking, and logistical coordination, also adding layers of complexity to the distribution process. The need to manage a larger volume of smaller packages could slow down the supply chain, making it less efficient and ultimately potentially affecting access and/or harvest sales expectations. Due to pre-packaging requirements, dispensaries might face a tough choice: buy in smaller quantities to keep costs down and make smaller margins on sales or keep purchase volumes the same and increase price margins. Either way, the end result is the patient pays. For medical marijuana patients, particularly those on fixed incomes or who require specific, often more expensive strains for their conditions, this could limit their access to necessary treatments. The ability for patients to receive customized quantities and strains is greatly reduced, limiting personalized treatment options.
   

4. Quality control challenges: TJ Marti said he’s “talked to 100’s of MMJ dispensary workers that say they have mold in their buckets daily.” Ironically, he doesn’t realize this exact point is a pillar in the argument against his proposal.
   
   The move towards pre-packaging cannabis products, though intended to streamline quality and consistency, introduces significant hurdles in maintaining quality control. When products are sealed at an early stage in the supply chain, opportunities for thorough inspection by dispensary staff are greatly reduced. Marti exclaiming 100s of dispensary workers find mold in their jars means 100s of dispensary workers are directly keeping contaminated products from reaching the consumer—something they would not be able to do with pre-pack. This lack of post-packaging inspection means that issues such as mold, contamination, or even inconsistencies in product potency and composition would not be identified until after the product has been purchased by the consumer.

   This challenge is compounded by the fact that certain quality issues, particularly those related to mold and microbial contamination, can develop or become more pronounced after packaging if the product was not properly cured or if there is residual moisture. In a bulk or deli-style system, dispensary staff can continuously monitor the product's condition, removing any compromised product before sale. This ongoing quality assurance process is a critical component in ensuring patient safety and product efficacy.

   Moreover, the reliance on pre-packaged goods might lead to a reliance on lab testing alone for quality assurance. While lab testing is a crucial part of ensuring product safety, it typically occurs before packaging and might not account for changes or contamination that can occur post-test and pre-sale. This situation would be like meticulously testing produce for quality and safety before it arrives at the grocery store, only to then place it on the shelf and neglect it, allowing it to deteriorate. And despite this, still using the original tests as proof of its quality, ignoring the natural degradation that occurs over time and the absence of continued oversight.

   In essence, pre-packaging could obscure visibility into the product's ongoing quality, making it more challenging to uphold and guarantee the high standards necessary for medical cannabis, potentially impacting patient trust and safety.

The push for mandatory pre-packaging of medical marijuana raises significant concerns that extend beyond the intended goals of standardizing product safety. There are reasons this bill has failed multiple times over. The potential environmental impact, the risk to product freshness and efficacy, the reduction in patient-product interaction, the complexities and costs added to the supply chain, and the challenges in maintaining quality assurance present a compelling case for permanently shelving pre-pack proposals moving forward.

HB 3361 has passed in the House and is now in the Senate for review. Please contact your local representatives to share this blog and or your thoughts with them.