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Cannabis Retail Ban Finally Lifted in Pasco, Washington

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Reversal makes Pasco first in Tri-Cities to permit pot sales.

The city of Pasco, Washington this week officially lifted its ten-year ban on cannabis retailers, an historic change for that part of the state. 

The city council there voted 5-3 on Monday in favor of zoning changes that will lift the ban, according to the Tri-City Herald

The newspaper reports that the vote “marks the end of a decade-long struggle by local marijuana activists and business owners to ease government restrictions in the city of 80,000.” 

“The ordinance lifts the ban in three commercial zones (C-1, C-2 and C-3) and three industrial zones (I-1, I-2 and I-3) found throughout the city, and opens up business to certain areas along North Road 68, Kings Corner, Broadmoor Boulevard, East Lewis Street and Court Street. It will take effect five days after approval, pending any publication requirements,” according to the Herald

With the vote, Pasco becomes the first in the so-called “Tri-Cities,” a metro area in eastern Washington comprising three communities that border one another (Richland and Kennewick are the other two).

Washington became one of the first two states in the country to legalize recreational cannabis for adults back in 2012, when voters approved a ballot measure to end the prohibition. (Colorado voters approved a similar proposal that same year.)

Some countries and cities opted out of the new law in Washington, voting instead to ban retail cannabis sales within their jurisdiction. 

But over the years, as legalization has spread nationwide, some residents in those communities began to have second thoughts. The Tri-City Herald reported earlier this year that a “2021 community survey showed that 46% of Pasco residents would not back changes to allow marijuana retail sales in city limits, while about 45% said they would strongly or somewhat support it.”

The newspaper reported in March that the Pasco city council had voted to moved ahead “with plans to draft an ordinance to lift its ban on retail cannabis in commercial and industrial zones,” while rejecting a proposal “to ask voters for their opinion on the issue.”

“The decision puts Pasco ever closer to becoming the first city government in the Tri-Cities to lift its ban on retail cannabis. But they will first need to pass an ordinance in the coming weeks or months before stores can open up to sell pot,” the Herald reported then. “An estimate shows cannabis retailers could bring in at least $200,000 a year in revenue for Pasco, said Interim City Manager Adam Lincoln.”

That day officially came on Monday. 

The city council provided more details on the new ordinance:

“The current draft ordinance does limit the number of potential cannabis retail facilities to three (3) stores with up to four (4) stores total as long as one is a “social equity licensee.” This is reflective of the current number of licenses available for the City of Pasco and Franklin County generally that the Washington State Liquor and Cannabis Board has allotted. While it is unclear what the actual effect of the Social Equity License Program would be, there appears to be a potential for licenses that have been allotted to other counties to locate in Pasco in the future, and hence, is the reason for the inclusion of a limitation on a number of retail facilities in the draft ordinance. Although, this is not a requirement of any ordinance and can easily be amended should Council choose to do so. It should also be noted that the draft ordinance does not allow ‘cooperatives’ and still prohibits cannabis production and processing facilities within the City of Pasco as was requested by Council.”

Source: https://hightimes.com/news/cannabis-retail-ban-finally-lifted-in-pasco-washington/

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New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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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:

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/

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Marijuana companies suing US attorney general in federal prohibition challenge

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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.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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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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