Business
NY State Senator Urges Aggressive Action on Unlicensed Cannabis Shops
New York State Senator Brad Hoylman-Sigal urged the Office of Cannabis Management to take action on unlicensed dispensaries.
A New York state senator wrote a letter to the state’s Office of Cannabis Management, urging leadership to engage in “aggressive action” on unlicensed cannabis retailers after witnessing them in his own neighborhood.
State Senator Brad Hoylman-Sigal, chair of the Senate Judiciary Committee, and representing New York’s 47th State Senate District on Manhattan’s West Side, is tired of unlicensed cannabis stores and dispensaries popping up across town.
Hoylman-Sigal wrote a public letter on July 17, addressed to Office of Cannabis Management Executive Director Christopher Alexander and Tremaine Wright, chair of the Cannabis Control Board, urging action immediately.
“In the 2023 budget, the New York State Legislature granted additional authority to the Office of Cannabis Management (OCM) and the Department of Taxation and Finance (DTF) to address unlicensed cannabis stores,” Hoylman-Sigal wrote. “This includes conducting inspections, imposing civil penalties, and seeking injunctions to shut down stores. I am grateful to see OCM and DTF begin to take action. Given the serious issues caused by these stores, I urge OCM and DTF to continue to act quickly and aggressively to shut down these unlicensed stores.”
Hoylman-Sigal addressed the severity of the issue, including stores dotting Manhattan.
“The scale of these unlicensed stores is staggering, with over 100 stores identified in Hell’s Kitchen alone. As I have expressed previously, these stores are deceptive to consumers, hazardous to public health, cheating on their taxes, undermining the State’s equity-based and legal cannabis rollout, and have little incentive to inspect IDs to ensure they are not selling to minors. Additionally, because these stores are unregulated and have little oversight, they pose a danger to employees and neighbors.”
Hoylman-Sigal went a step further to name dispensaries that are either unlicensed or have received complaints.
“I am enclosing a list of stores which have been reported to us by constituents as well as a list of unlicensed stores in Hell’s Kitchen compiled by the Hell’s Kitchen Neighborhood Coalition. I urge OCM to act expeditiously to shut down these stores.”
New York Takes Action on the Proliferation of Unlicensed Cannabis Shops
New York Gov. Kathy Hochul is also ramping up efforts to tackle the illegal dispensary situation.
New York State Office of Cannabis Management and Department of Taxation and Finance began inspections of unlicensed shops in early June under a new law signed by Gov. Hochul a month prior in May.
The new law signed by the Governor in May is part of the State’s Fiscal Year 2024 Budget. The beefed up penalties include fines of up to $20,000 per day, used to discourage illegal activity.
“Under new powers that I fought for in this year’s State budget, we can now conduct enforcement against businesses illegally selling cannabis, and I’m proud to report that in just the first three weeks of our efforts, we’ve seized nearly $11 million worth of illicit products off the streets,” Governor Hochul said. “These unlicensed businesses violate our laws, put public health at risk, and undermine the legal cannabis market, and with the powerful new tools in our toolbelt we’re sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped.”
The New York City Council is also stepping in. At a meeting of the New York City Council last January, officials pledged increased enforcement against unlicensed cannabis retailers and said that the state legislature is drafting new legislation to give law enforcement additional powers to shut down illicit pot shops. For the time being, unlicensed stores are easy to find in the state.
Source: https://hightimes.com/news/ny-state-senator-urges-aggressive-action-on-unlicensed-cannabis-shops/
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
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/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
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.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
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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