Business
Colorado’s Cannabis Party Buses Keep Chugging Along
The cannabis bus services hit the road earlier this year.
Meet Colorado’s latest cannabis entrepreneurs: bus drivers.
Earlier this year, the state began doling out licenses to businesses providing 4/20-friendly bus tours.
The first business to receive such a business, Cannabis Experience, hit the road in early March in Denver.
Local news station Denver7 reported at the time that the Denver Department of Excise and Licenses, which issued the license, “believes it may be the first and only licensed mobile marijuana hospitality establishment in the nation.”
The company’s CEO, Sarah Woodson, explained to the station how the business would operate:
“There are several rules guests must follow. Woodson says IDs will be checked, and safe consumption information will be shared before the tour begins. Guests will be allowed to smoke on the bus, but marijuana won’t be sold during the ride. Non-alcoholic beverages and food will also be available for guests to enjoy. As far as tours go, Woodson says there will be a variety of options, including airport pickup and drop-off.”
Riders have to bring their own weed to Cannabis Experience, but if they’re dry, the drivers will bring them to local dispensaries.
According to the Denver Post, cannabis bus tour companies must comply with a bevy of local regulations.
“Denver requires marijuana buses have a GPS tracking system and ventilation that prevents second-hand smoke from reaching the driver. They are also required to submit pre-planned driving routes as well as timely updates if the routes change. That’s one reason The Cannabis Experience will start by picking up and dropping off airport travelers, as well as two of its tours, at Union Station,” the newspaper reported.
“Because we’re first, there’s going to be a learning curve on how everything is going to work as smoothly as possible,” Woodson told the Denver Post.
Other entrepreneurs have gotten in on the act, seeking licenses from local retailers.
Local station 9NEWS reported last month that three other businesses “have applied for the city’s new marijuana mobile hospitality license, which allows people to legally smoke weed while riding a bus.”
The station noted that Denver has made such licenses available only to “social equity” applicants who must meet one of the following requirements: “The applicant resided for at least 15 years between 1980 and 2010 in certain neighborhoods”; “The applicant or applicant’s family member was arrested for a marijuana offense, convicted of a marijuana offense, or was subject to a civil asset forfeiture related to a marijuana investigation”; “The applicant’s household income in the previous year was less than 50% of the state median income for that household size.”
While businesses like Cannabis Experience represent the first state-licensed companies of their kind, there have been other unregulated weed-friendly bus tours in Colorado before.
As the Denver Post noted, such businesses began to surface when recreational pot sales began a decade ago.
“In 2018, for example, undercover cops raided local marijuana tour buses and cited many customers and employees for participating in unlawful activities. At the time, ironically, city regulators were considering legalizing the business model,” the Post said. “The conundrum highlighted a gap in Colorado’s then-newly minted marijuana market: Locals and visitors had a plethora of places where they could legally buy products, but nowhere except a private residence they could legally consume.”
The newspaper continued: “That’s why, in 2019, state regulators developed the marijuana hospitality license, which allowed for a new type of business where patrons could smoke, eat or vape cannabis onsite. Hospitality establishments have been slow to get off the ground, however, as municipalities need to opt in to allow them. The first chance cities had to do so was Jan. 1, 2020, but because of the COVID-19 pandemic, few did so immediately. Denver didn’t open applications until November 2021.”
Source: https://hightimes.com/business/colorados-cannabis-party-buses-keep-chugging-along/
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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