Business
Black Market Thrives in Morocco’s Rif Mountains
Al Jazeera reports locals in Morocco are reluctant to move into the legal sector.
Cannabis resin world capital Morocco is struggling to reconcile its historical but illegal cannabis production region with the emerging legal market.
According to the United Nations (UN) Office on Drugs and Crime, the northern Rif Mountains region is the world’s top producer of cannabis resin. Cannabis has been tolerated in Morocco’s kingdom for hundreds of years, however it has been illegal in all forms since the county’s independence in 1956.
In 2021, with a goal to improve poverty-stricken regions in Morocco, the kingdom’s ruling party decided to officially approve Law 13-21, a bill legalizing the production of cannabis for industrial, medicinal, and cosmetic purposes in the three provinces of the Rif while also creating a National Regulation Agency for Cannabis Activities (ANRAC) to monitor the production of cannabis.
Morocco launched its cannabis industry last October by issuing the country’s first 10 permits to businesses to produce cannabis.
Under the law, farmers in Morocco’s northern mountainous areas who organize into collectives will gradually be permitted to cultivate cannabis to fill the needs of the legal market. Abdeluafi Laftit, the Interior Minister of the Alaouite kingdom, Morocco’s reigning monarchy, said the legalization of cannabis is part of the government’s plan to create new “development opportunities,” according to a report.
Al Jazeera reports that black market cannabis production in the Rif mountains is thriving more than ever before, and tourists continue to flock to the area because of it. The mountainous and fertile area borders Tangier to the west, and runs along the Mediterranean to the north. Hippies have been traveling there for generations to get their hands on Moroccan hash.
“After the independence of Morocco, the hippies came to the mountains and taught us how to harvest the cannabis plants into cannabis resin [hashish],” Mourad, a father of six, told Al Jazeera. “Personally, I learned from my family and from my friends.”
But despite efforts to loosen laws in the area surrounding cannabis production, old habits die hard, and locals say illegal cannabis is more profitable.
“Official representatives came to the village in March to discuss the new bill with us and take the names of the people who might be interested,” Mourad said. “For my part, I do not really know what I am going to do. If I am forced to switch to legal production, I will, but if most of my neighbours continue to produce cannabis illegally, I will do like them.”
“Of course, I don’t like living in fear, and I would rather have a legal activity. At the same time, I honestly don’t think most farmers are going to follow the bill because we don’t feel like it will benefit us. But I am aware this might be my last year producing cannabis illegally. For my own sake, I will probably have to switch to legal production soon,” he added.
According to data from the Ministry of Interior given to the Agence France-Presse news in 2013, at least 700,000 people—including 90,000 families—lived off the production of cannabis in Morocco.
Al Jazeera reports that the Republic of the Rif was established by Abdelkrim Khattabi in 1921. For about 100 years, the Rif people are reported to be hostile towards the Moroccan state, saying they are left out of Morocco’s economic development.
“Switching to a legal production of cannabis would make us lose money because it is the government that is going to set the prices,” Anouar, a local in Bab Taza told Al Jazeera.
“Producing illegally is not that dangerous when you have a trustworthy network of buyers. For our part, we sell the cannabis to four family friends only, whom we have known for years, and they deal with bringing it to other cities in the country and to Europe,” Anouar says.
Source: https://hightimes.com/news/black-market-thrives-in-moroccos-rif-mountains/
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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