Government
Arkansas Weed Legalization Initiative Qualifies for November Ballot
State officials in Arkansas announced on Friday that an initiative effort to legalize recreational cannabis has received enough signatures to qualify for this year’s ballot.
Arkansas state officials announced last week that a proposed ballot measure to legalize recreational marijuana has received enough signatures to qualify for the November ballot. Activists with the group Responsible Growth Arkansas, which is headed by former Arkansas Democratic House minority leader Eddie Armstrong, submitted the petitions to the secretary of state’s office last month, saying at the time they had collected more than twice as many signatures necessary to qualify the proposal for this year’s general election.
Kevin Niehaus, a spokesman for the Arkansas secretary of state’s office, said after signature counters reached 90,000 verified signatures on Thursday night they notified the Responsible Growth Arkansas campaign that the constitutional amendment initiative had been approved for the November ballot. State officials will now concentrate their efforts on verifying signatures for a separate measure to amend Arkansas’ casino gambling statute.
“Because of the time frame to get this done, they stopped at 90,000 verified signatures and now have moved on to the casino petition,” Niehaus said on Friday. “Knowing how many signatures they still had left to go and with it already reaching 90,000 signatures, they felt comfortable saying they made it.”
Arkansas Initiative Would Legalize Recreational Weed
If the initiative is successful at the polls in November, it would legalize cannabis for use by adults 21 and over. The proposal would also allow the state’s existing medical pot growers and dispensaries to apply for adult-use cannabis licenses. Another 40 licenses, to be awarded through a lottery system, would also be issued for recreational marijuana operations. The total number of licenses statewide would be limited to 20 cultivation and 120 dispensary licenses, including those for existing medical marijuana businesses.
In July, Responsible Growth Arkansas submitted petitions containing 192,828 signatures of voters supporting the legalization amendment. Under state law, the group needed 10% of the number of votes cast in the last gubernatorial election, or 89,151 signatures, to qualify for this year’s ballot. Officials with the campaign said that support for the initiative effort was strong across the state.
“It was across the entire state, and it really shows a broad level of support geographically,” said Steve Lancaster, counsel for Responsible Growth Arkansas. “To get that many signatures from Arkansans it can’t be all Democrats, or all Republicans, or all Independents. You need a large swath of Arkansans to get that many signatures. The people want to vote on this and make this decision themselves.”
“We are really grateful for the voters who signed our petitions and appreciative to the secretary of state’s office for verifying our signatures,” Lancaster added.
Before the measure is officially approved for the ballot, the proposal’s ballot title and popular name must be approved by the Arkansas Board of Election Commissioners. Lancaster said that a meeting of the panel is expected to take place on Wednesday.
Two Initiative Proposals Vying for Voters’ Attention
The effort by Responsible Growth Arkansas is one of two proposals to legalize adult-use cannabis in the state. A separate measure from activists to qualify the Arkansas Adult Use and Expungement Marijuana Amendment for the ballot has been pushed back until 2024. Under that proposal, the number of business licenses would be set as a proportion of the state’s population. The proposal also includes provisions for the home cultivation of cannabis, expungement of past pot-related convictions, and assistance for low-income medical cannabis patients.
Patient advocate Melissa Fults, who opposes the Responsible Growth Arkansas measure, hopes that voters will wait until 2024 to legalize recreational pot. She is also skeptical of the number of signatures submitted by the campaign.
“It’s kind of strange,” she said. “We were told by supposedly very reliable sources they only had 79,000 signatures at the start of June. In 30 days they got 120,000 signatures during one of the hottest summers around. I am really concerned about how valid those signatures are.”
But Niehaus noted that the secretary of state’s office uses software that goes through the submitted petitions page by page to verify the number of signatures.
“It verifies if they are a registered voter and makes sure they didn’t accidentally sign a petition two or three times,” Niehuas said.
Source: https://hightimes.com/news/arkansas-weed-legalization-initiative-qualifies-for-november-ballot/
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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