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Red Lake Nation Opens Minnesota’s First Adult-Use Dispensary
The first regulated sales of adult-use cannabis in Minnesota began at the Red Lake Nation reservation on Tuesday.
Sales of regulated adult-use cannabis began in Minnesota on Tuesday with the launch of recreational marijuana sales at a dispensary located on the Red Lake Nation’s tribal lands.
The Red Lake Nation’s foray into the adult-use cannabis market on tribal lands in northwestern Minnesota coincided with the statewide legalization of recreational marijuana. Under legislation approved by state lawmakers and Governor Tim Walz in May, possession of cannabis by adults 21 and older was legalized on August 1, although sales of recreational marijuana at state-licensed dispensaries are not expected to begin until 2025. But as sovereign nations, Minnesota’s Native American communities have the option of regulating cannabis production and sales on tribal lands.
“It’s one of the few advantages that tribal nations have had, an edge on everybody else,” Jerry Loud, who manages operations at the Red Lakes Nation dispensary NativeCare, told WCCO News. “So we’re going to capitalize on this.”
NativeCare was established after the tribe legalized medical marijuana in 2020. The shop began welcoming adult-use cannabis customers on Tuesday, allowing tribal members and non-members aged 21 and up to purchase limited amounts of cannabis products. Tribal Secretary Sam Strong said he barely slept Monday night, anticipating Minnesota’s launch of regulated cannabis sales and the end of marijuana “prohibition.”
“It’s a big day,” Strong said. “It’s the end of this war on drugs that was really meant to repress minorities. So it’s only fitting that the Native American tribes are participating in this industry — we’ve been harmed most by the war on drugs. Now it’s time to flip that script and create an economic development venture that can help heal our community.”
Minnesota Legalized Weed In May
Walz signed a bill legalizing recreational marijuana on May 30, making the state the 23rd in the nation to legalize cannabis for adults. The bill, which was approved by the Minnesota legislature on May 20, allows adults 21 and older to use marijuana recreationally and to possess up to two ounces of cannabis in a public place, going into effect on August 1.
The legislation also legalizes the possession of up to two pounds of marijuana in a private residence and the limited home cultivation of cannabis by adults aged 21 and older. Under the legislation, adults are allowed to grow up to eight cannabis plants at home, including four mature, flowering plants and four immature plants.
Minnesota’s marijuana legalization bill also legalizes commercial cannabis activity, with regulated sales of recreational marijuana coming after rules are drafted and approved by the Office of Cannabis Management, a new state agency created by the legislation. The new agency will also regulate medical marijuana and cannabis products derived from hemp.
State agencies have set a target date of May 2024 to begin accepting applications for adult-use cannabis retailers, with dispensary sales of recreational marijuana anticipated to start in January 2025. Once regulated sales of recreational marijuana begin, adults will be permitted to purchase up to two ounces of cannabis, eight grams of cannabis concentrate and edible products containing up to 800 milligrams of THC, the cannabis compound largely responsible for the classic marijuana “high.”
Native American Dispensaries Taking First Shot At Market
The Red Lake Nation and at least one additional Native American community are taking the lead on regulated sales of adult-use cannabis with their own enterprises. Charles Goodwin, an enrolled member of the Red Lake Nation, made the first recreational purchase at the tribe’s dispensary. He told the Star Tribune that the day was a “long time coming” and that the dispensary is a “huge step forward” for the community.
At least one other Native American community also plans to regulate sales of adult-use cannabis on tribal lands. Last week, the Tribal Council for the White Earth Nation, also in northwestern Minnesota, voted to legalize recreational marijuana, with sales of cannabis beginning at a dispensary on its tribal lands expected to begin in the first half of August. White Earth Chairman Michael Fairbanks said that selling cannabis grown on the reservation represents a significant opportunity for the tribe. He expects the enterprise to be able to produce high-quality cannabis and sell for prices that are lower than the coming competition.
“It’s good not just for our constituents, but it’s good for all Minnesotans,” Fairbanks said in a statement to the Minnesota Reformer.
The citizens of White Earth Nation voted in 2020 to legalize medical marijuana and planned to open its dispensary in Mahnomen, about 35 miles north of Detroit Lakes, to patients on Monday. Sales of recreational marijuana to tribal members and non-members aged 21 and up are slated to begin shortly thereafter.
However, the tribal dispensaries selling recreational marijuana will not be convenient for most Minnesotans. The reservations for both Ojibwe tribes are not near the state’s largest population centers, requiring a drive of more than three hours from Duluth and four hours or more from the Twin Cities of Minneapolis and St. Paul.
Source: https://hightimes.com/dispensaries/red-lake-nation-opens-minnesotas-first-adult-use-dispensary/
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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