Business
British Columbia Considers MJ Consumption Spaces, Citizens and Businesses Weigh In
It’s been a question since recreational cannabis legalization first reached the lips of legislators.
If cannabis is legal, but consumers are only allowed to smoke in private residences, where does that leave tourists, or local cannabis consumers enjoying a night out, to reap the benefits of a legal market? Considering the amount of public spaces to consume alcohol, it seems like a severe limitation that folks can’t similarly enjoy cannabis in a public, social setting.
States around the U.S. have only just started to move forward with public consumption lounges over the last few years, but is the country’s northern neighbor Canada ready to make the plunge? The jury’s out on the country as a whole, but a new government report indicates that the province British Columbia is considering the leap.
It’s worth noting that British Columbian policy around public consumption is already a bit more liberal than that of many U.S. states. According to the province site, adults over the age of 19 are “generally allowed” to smoke or vape cannabis in public spaces that allow tobacco smoking and vaping. Of course, these spaces are distinct from a cannabis consumption space, typically used to refer to a business like a lounge, special event or establishment that allows for cannabis use, and potentially sales, on site.
In spring 2022, the province asked citizens for feedback on allowing cannabis consumption spaces through a demographically and geographically representative telephone survey, online survey and written submissions. British Columbia officials not only sought to understand citizen stances on consumption spaces but also to what extent people agreed or disagreed with proposed policy principles that could potentially guide regulations within these spaces.
Among 730 random phone survey respondents, 61% supported consumption spaces, and 35% had used cannabis at least once in the past year. However, only 34% of online respondents voiced their support, which the government said could partially be due to the specific research method and potential for self-selection bias. There were 15,362 total online respondents, and 305 had used cannabis in the past year.
Most of those who use cannabis also supported consumption spaces, along with cannabis retailers, producers and industry associations who provided written submissions, the report notes. The majority of cannabis users also said they would visit a cannabis consumption space to purchase and use cannabis, showing the most interest in cannabis cafés and lounges.
Those opposed generally did not use cannabis or were from a public health and safety organization or local government who provided written submissions. Non-users also indicated they would be likely to avoid events and businesses allowing cannabis consumption. The main concerns were the potential for spaces to serve both alcohol and cannabis and the potential increased risk of impaired driving.
Post-legalization studies in Canada have found time and time again that, at least with the country’s current laws, there hasn’t been a spike in stoned driving, including one just after the country’s 2018 legalization, another the following year and another from 2021, concluding that there was no evidence of significant changes surrounding cannabis legalization and weekly counts of emergency department visits. Of the U.S. states that have allowed cannabis consumption spaces, or promote special events like cannabis-infused dinners, there are generally specific bans on allowing alcohol and cannabis to be served at the same location.
The report cites the 2021 BC Cannabis Use Survey, which found an estimated 1.4 million people living in British Columbia reported using cannabis at least once in the past year. Therefore, it states there may be at least 750,000 people in the province who are interested in visiting a cannabis consumption space “at least once.”
“Health and safety are our utmost priorities as we consider how provincial cannabis policies could evolve,” said Mike Farnworth, Minister of Public Safety and Solicitor General, in a news release. “This report provides valuable insights into people in B.C.’s perspectives on cannabis and will help guide our work to support a strong, diverse and safe legal cannabis sector across the Province.”
One reason Canada has yet to implement legal consumption spaces has to do with its smoking bylaws. The bylaws were put into place for the sake of public health and safety, though research shows that cannabis and tobacco smoke are not equally carcinogenic.
While the report provides further insight around the wants, and concerns, of B.C. residents, the government has yet to make further decisions around cannabis consumption spaces and how they would be regulated.
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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