Business
German Cabinet Approves Plan To Liberalize Pot Laws
The approval will decriminalize possession and allow members of cannabis clubs to buy weed for recreational purposes.
Germany took a major step toward marijuana reform on Wednesday when the country’s cabinet approved a bill that will liberalize its cannabis laws.
The approval comes a month after the country’s ministry of health released the draft bill of the new marijuana regulations.
After Wednesday, the measure still must be approved by the German parliament before it becomes law, but it marks a significant step.
As the Associated Press put it, the approval by the cabinet sets the stage “for the European Union’s most populous member to decriminalize possession of limited amounts and allow members of ‘cannabis clubs’ to buy the substance for recreational purposes.”
“The legislation is billed as the first step in a two-part plan and still needs approval by parliament. But the government’s approval is a stride forward for a prominent reform project of Chancellor Olaf Scholz’s socially liberal coalition, though significantly short of its original ambitions,” the Associated Press reported on Wednesday. “The bill, which the government hopes will take effect at the end of this year, foresees legalizing possession of up to 25 grams (nearly 1 ounce) of cannabis for recreational purposes and allowing individuals to grow up to three plants on their own.”
According to the AP, German residents “who are 18 and older would be allowed to join nonprofit ‘cannabis clubs’ with a maximum 500 members each,” while the “clubs would be allowed to grow cannabis for members’ personal consumption.”
The reform effort has been months in the making, with German Health Minister Karl Lauterbach spearheading the charge.
“This is an important law that will represent a long-term change in drug policy,” Lauterbach said on Wednesday, as quoted by The New York Times.
In April, Lauterbach and other German officials unveiled a decidedly more scaled-back cannabis reform proposal than what was originally envisioned.
The original proposal, announced by Lauterbach last fall, “foresaw allowing the sale of cannabis to adults across the country at licensed outlets,” the Associated Press reported.
The revisions to the cannabis proposal came after German officials met with the European Union. EU laws are always bound to be a potential impediment to the reform effort.
German Agriculture Minister Cem Özdemir said that European law “sets us limits we must respect, but that I will also say we are pushing,” as quoted by the Associated Press.
Still, the reform is significant for what is Europe’s largest economy.
The New York Times has more background on how the weaker measure arrived before the cabinet on Wednesday, and all the obstacles it overcame along the way:
“The socially liberal coalition announced its intent to legalize recreational marijuana when it came into power in 2021, quickly finding consensus on an issue opposed for years by the government of Chancellor Angela Merkel. But implementation has proved difficult. A version of the plan introduced last year by Mr. Lauterbach would have allowed the distribution of marijuana through commercial stores. That idea was scuttled after meeting resistance from the European Union’s executive arm, the European Commission. Instead, the legislation approved on Wednesday allows distribution through the creation of licensed private cultivation associations with no more than 500 members. Members would be allowed to buy up to 25 grams — slightly less than an ounce — on any one day, but with a limit of 50 grams in a month. The German government also plans to launch a series of regional pilot programs that would allow the sale of cannabis through a small number of licensed specialty shops, in an attempt to gather more information about the effects of allowing individuals to purchase marijuana commercially.”
Source: https://hightimes.com/news/german-cabinet-approves-plan-to-liberalize-pot-laws/
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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