Business
Delaware House Approves Legalization Bill
The Delaware measure is expected to pass in the Senate, but the governor’s expected veto looms.
Lawmakers in the Delaware House of Representatives on Tuesday approved a bill to legalize adult-use marijuana in the state––but the governor’s veto pen continues to loom over the effort.
The bill passed the chamber on a bipartisan vote of 28-13, according to Delaware News Journal, which noted that the measure picked up two votes from Democratic lawmakers who had not previously supported cannabis legalization.
The lone Democrat to vote against, according to the newspaper, was the party’s leader in the chamber, House Speaker Pete Schwartzkopf.
Schwartzkopf is not the only senior Delaware Democrat to break from his party in opposing cannabis legalization––a policy that is supported by a large majority of Democratic voters nationwide, and that has become a virtual mainstream position among Democrats in Washington and state Houses across the country.
Delaware’s Democratic governor, John Carney, has been firm in his opposition to marijuana legalization.
Last year, after a similar bill was passed by both chambers of the Delaware general assembly, Carney vetoed the measure, and lawmakers were unable to generate enough votes to override the veto.
“[The legalization bill] would, among other things, remove all penalties for possession by a person 21 years of age or older of one ounce or less of marijuana and ensure that there are no criminal or civil penalties for transfers without remuneration of one ounce or less of marijuana between persons who are 21 years of age or older,” Carney said in his veto statement at the time.
“I recognize the positive effect marijuana can have for people with certain health conditions, and for that reason, I continue to support the medical marijuana industry in Delaware,” the governor continued. “I supported decriminalization of marijuana because I agree that individuals should not be imprisoned solely for the possession and private use of a small amount of marijuana—and today, thanks to Delaware’s decriminalization law, they are not.”
“That said, I do not believe that promoting or expanding the use of recreational marijuana is in the best interests of the state of Delaware, especially our young people,” Carney added. “Questions about the long-term health and economic impacts of recreational marijuana use, as well as serious law enforcement concerns, remain unresolved.”
Undeterred, Democrats, who continue to hold majorities in the general assembly, renewed their legalization drive in January.
“My hope is that with continued open dialogue with the governor’s office, that will help alleviate a veto,” State House Rep. Ed Osienski, a Democrat who is sponsoring the new bill, said earlier this year. “I have more support from my members … for a veto override, but I’m hoping it doesn’t come to that.”
Early signs are not great, as a spokesperson for the governor said earlier this year that his position on marijuana remains unchanged.
But still, the Democrats press on. According to Delaware News Journal, “the bill now makes its way to the Senate, where it is expected to pass, the looming question is if Democrats have the political support this time around to override another possible Carney veto.”
The newspaper has more details on the latest legalization proposals in the general assembly:
“House Bill 1 would remove all penalties for possessing 1 ounce or less of marijuana for those ages 21 and older. This legislation required a simple majority of 21 votes. As of now, marijuana is decriminalized in Delaware. The second bill, HB 2, would create a framework to regulate the growth, sale and possession of weed. Lawmakers say marijuana would be regulated and taxed the same way alcohol is. This legislation requires a three-fifths vote because it deals with revenue and taxation. This is expected to be voted on soon.”
Source: https://hightimes.com/news/delaware-house-approves-legalization-bill/
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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