Business
Congressman Introduces Bill To Withhold Federal Funding From States With Legal Weed
A Republican congressman has introduced a bill that would deny federal funding to states and tribes that have passed laws permitting recreational marijuana use.
Rep. Chuck Edwards, who represents a district in western North Carolina, unveiled the “Stop Pot Act” on Friday, saying that the bill “will withhold 10 percent of federal highway funds for governments that violate federal law under the Controlled Substances Act, which prohibits recreational marijuana and classifies it as a Schedule I drug.”
The legislation “does not apply to jurisdictions that authorize medical use of marijuana when prescribed by a licensed medical professional,” the congressman’s office said in a press release.
“The laws of any government should not infringe on the overall laws of our nation, and federal funds should not be awarded to jurisdictions that willfully ignore federal law,” Edwards said in a statement.
“During a time when our communities are seeing unprecedented crime, drug addiction, and mental illness, the Stop Pot Act will help prevent even greater access to drugs and ease the strain placed on our local law enforcement and mental health professionals who are already stretched thin.”
Edwards’ bill is being introduced amid a sea-change in marijuana policy across the United States. Twenty-three states have legalized recreational cannabis for adults. Recreational pot has also been made legal in the District of Columbia, and the U.S. territories of Guam and the Northern Mariana Islands. As local news station ABC11 reported, Edwards’ bill also “comes as the Eastern Band of Cherokee Indians is set for a referendum election next week that has a question about whether to legalize the sale and use of recreational marijuana on tribal lands.”
If the referendum passes when the vote is held on Thursday, “the Qualla Boundary will be the only place in North Carolina to buy marijuana legally for recreational use,” Edwards’ office said.
But marijuana remains illegal on the federal level due to its status under the Controlled Substances Act.
In the press release for the bill on Friday, Edwards’ office noted that the measure has been endorsed by “Smart Approaches to Marijuana Action,” a coalition that aims to create a society “where marijuana policies are aligned with the scientific understanding of marijuana’s harms, and the commercialization and normalization of marijuana are no more,” and the Christian Action League.
“Today’s marijuana isn’t Woodstock Weed. It is a highly engineered drug that’s often wrapped in kid-friendly packaging, with potencies of up to 99 percent. The legalization movement has worsened America’s mental health and addiction crisis by preying on communities of color and young people. Today’s commercial marijuana products are associated with depression, suicidality, IQ loss and most recently psychosis and schizophrenia, especially for young people,” Smart Approaches president and CEO Dr. Kevin Sabet said in a statement.
“Federal law is clear – sales of marijuana and THC drugs are illegal. Congressman Edwards’ ‘Stop Pot Act’ holds states accountable for violating federal law and undermining the authority of the FDA and the DEA. In states across the country, we’ve seen marijuana and THC drug legalization lead to increases in marijuana-related driving crashes and deaths. As CBS News reported just today, a recent study found that in states where cannabis is legal, cannabis-related DUIs happen 32 percent more than in states where the drugs are not legal. By following the model used to raise the legal drinking age to 21 and making highway funding conditional upon responsible marijuana policy, this bill will improve roadway safety. That’s good news for everyone.”
The Eastern Band of Cherokee Indians have been preparing for a multi-million dollar dispensary for months, although the project has hit snags along the way.
In May, Richard Sneed, the principal chief of the tribe, said that he “vetoed the Tribal Council’s recent approval of the final $64 million for the project because the original proposal said the entire project would be completed for $50 million.”
“The fact that this project’s original cost for an outdoor grow, an indoor grow and an indoor dispensary was $50m, and we are now being told it is $95m, demonstrates that there is an immediate need for a full accounting of the money that has been expended to date,” Sneed wrote in a Facebook post at the time.
The tribe has been working to convert an old bingo hall into a marijuana superstore, which would be the only dispensary (medical or recreational) in the state of North Carolina.
Last fall, the tribe announced that it was beginning to grow its inaugural cannabis crop after a 2021 vote to legalize medical marijuana on its land.
“The Council’s approval of a medical marijuana ordinance is a testament to the changing attitudes toward legal marijuana and a recognition of the growing body of evidence that supports cannabis as medicine, particularly for those with debilitating conditions like cancer and chronic pain,” Sneed said in 2021 following the vote.
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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