The attorney general's office notified San Francisco police on Dec. 2 that there was not sufficient evidence to charge Deborah Madden, AG spokesman Jim Finefrock said Friday.
Madden, 60, had been accused of stealing small amounts of cocaine from the lab while working there last year.
The allegations led to the lab's closure in March and the dismissal of more than 600 drug cases. It also created a nightmare for District Attorney Kamala Harris, who asked the attorney general's office in April to handle any possible prosecution.
Madden's attorney, Paul DeMeester, said Friday his client is ecstatic.
"This lifts quite a burden for her," DeMeester said. "This is very positive news."
Public Defender Jeff Adachi said the decision raises concerns about a possible double standard when it comes to charging a police employee who acknowledged doing wrong.
"This scandal resulted in the dismissal of hundreds of cases and we're still reviewing thousands of others," Adachi said. "This has cost the city and county millions of dollars. The average citizen has to be scratching their heads on the rationale behind this.
"Somehow, I don't think we've heard the last of this."
Police Chief George Gascon said Friday that while he is "extremely disappointed," he respects the attorney general's decision.
"I'm not second-guessing the attorney general's office," he said. Gascon said that after discovering the theft, he knew the lack of physical evidence could be a problem in prosecuting the case. The lab has since undergone several new procedures and was reaccredited earlier this month to do DNA and ballistics tests
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