Business
North Carolina Cherokee Chief Rejects $64 Million Proposal for State’s First Dispensary
The so-called marijuana superstore is scheduled to open later this year in North Carolina.
A tribal chief in North Carolina has reportedly vetoed a proposed $64 million in additional spending for what is expected to be the state’s first medical cannabis dispensary.
The Charlotte Observer reports that Richard Sneed, the principal chief of the Eastern Band of Cherokee Indians, said in a Facebook message on Friday 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 the message, as quoted by the Charlotte Observer.
The tribe is currently planning on opening a massive, cannabis superstore that will be the first marijuana dispensary in North Carolina. According to the Charlotte Observer, the “Cherokee are converting their massive old bingo hall into the dispensary that is a first of its kind in North Carolina — the only location that would be in a three-hour’s drive from Charlotte where weed is sold legally.”
The Eastern Band of Cherokee Indians approved an ordinance in 2021 to legalize medical cannabis 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 at the time.
In November, the tribe announced that it was starting the the first harvest of its marijuana crop.
There are no other dispensaries in North Carolina, where both medical and recreational cannabis are illegal under state law, but the Cherokee, as with other tribes throughout the United States, have sovereignty over their land.
According to the Charlotte Observer, in his Facebook post on Friday, Sneed “attached a copy of a letter he sent to Tribal Council Chairman Richard French informing him of his veto and his reason.”
The Observer has more background on the dispute:
“Sneed told French he ‘fully supports cannabis, both medical and adult use.’ He also is ‘encouraged and inspired’ by tribal workers at the growing operation at Cooper’s Creek on the tribe’s Qualla Boundary in Cherokee, he added. The operation is run by Qualla Enterprises LLC, the tribe’s for-profit medical cannabis arm. Yet, Sneed told French, ‘I am very troubled by the lack of accountability for the managing of the business side of the operation. The current projected cost is almost 100% over budget as compared to the original RFP projected cost.’ RFP stands for ‘request for proposals.’”
The dispensary is expected to open sometime this year.
Lawmakers in the North Carolina legislature have pushed a bill that would legalize medical cannabis treatment in the state.
Republican state Sen. Bill Rabon introduced a bill earlier this year called the “North Carolina Compassionate Care Act,” which would legalize the treatment for a host of qualifying conditions including: “Cancer; Epilepsy; Positive status for human immunodeficiency virus (HIV); Acquired immune deficiency syndrome (AIDs); Amyotrophic lateral sclerosis (ALS); Crohn’s disease; Sickle cell anemia; Parkinson’s disease; Post-traumatic stress disorder … Multiple sclerosis; Cachexia or wasting syndrome; Severe or persistent nausea in a person who is not pregnant that is related to end-of-life or hospice care, or who is bedridden or homebound because of a condition; A terminal illness when the patient’s remaining life expectancy is less than six months; [or] A condition resulting in the individual receiving hospice care.”
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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