Business
Connecticut Launches Recreational Cannabis Sales
Regulated sales of recreational marijuana began in Connecticut on Tuesday at seven existing medical marijuana dispensaries now licensed to also sell adult-use cannabis.
Regulated sales of recreational marijuana began in Connecticut on Tuesday, less than two years after the state legalized cannabis for use by adults. Adult-use cannabis is now available at seven shops across the state, all of them existing medical marijuana dispensaries that have been licensed as hybrid retailers to serve recreational customers.
Connecticut Governor Ned Lamont signed legislation to legalize recreational marijuana in June 2021, ending the prohibition on possession of cannabis by adults 21 and older and creating a framework for regulated adult-use cannabis sales. The bill also included restorative justice and social equity measures, including provisions that led to the expungement of nearly 43,000 marijuana-related convictions last week. The effort to legalize recreational marijuana in Connecticut was led by Democrats including the governor, who argued that regulating cannabis would protect consumers and help communities impacted by the enforcement of punitive drug laws.
“Today marks a turning point in the injustices caused by the war on drugs, most notably now that there is a legal alternative to the dangerous, unregulated, underground market for cannabis sales,” Lamont said in a statement on Tuesday.
Medical marijuana dispensaries in Branford, Meriden, Montville, New Haven, Newington, Stamford, and Willimantic were expected to open their doors to adult-use cannabis stores beginning at 10 a.m. on Tuesday. Two more, in Danbury and Torrington, are expected to open soon. Up to 40 additional cannabis retailers are expected to begin operations before the end of the year, according to media reports.
Transitioning To A Regulated Cannabis Economy
Adam Wood, president of the Connecticut Cannabis Chamber of Commerce, said that Connecticut’s regulated marijuana industry is expected to create about 10,000 jobs for workers in the state over the next few years. He added that cannabis will generate hundreds of millions of dollars in new revenue that will be used to benefit communities harmed by nearly a century of marijuana prohibition.
“Today is historic, but the real story is about the benefits to come that will transform lives and communities,” Wood said in a statement.
Verano Holdings, a multistate cannabis operator with active operations in 13 states, entered the Connecticut medical marijuana market in 2021 with the acquisition of Connecticut Pharmaceutical Solutions (CT Pharma). The company launched adult-use cannabis sales in the state on Tuesday at its Zen Leaf branded dispensary, formerly Willow Brook Wellness, in the city of Meriden. George Archos, Verano co-founder and CEO, said that the company “is proud to stand alongside Connecticut residents in celebration of the end of cannabis prohibition.”
“Legal cannabis in Connecticut will have a positive impact on the economy and local communities, and we’re honored to celebrate this historic moment in the Constitution State,” Archos wrote in an email to High Times. “We’re grateful for the leadership of Governor Ned Lamont, the Department of Consumer Protection, local communities, our team members, medical cannabis patients and advocates for making this exciting day a reality.”
In addition to the Zen Leaf dispensary in Meriden, Verano’s operations in Connecticut include CT Pharma, a 217,000-square-foot cultivation and processing facility in Rocky Hill, and Caring Nature in Waterbury, a medical dispensary that will soon begin adult-use sales under the Zen Leaf retail brand.
Recreational Weed Purchases Limited To Seven Grams
Sales of recreational marijuana will initially be limited to purchases of up to seven grams (about a quarter of an ounce) of cannabis flower or the equivalent in other products to ensure that retailers have enough merchandise on hand to serve medical marijuana patients. The Connecticut Department of Consumer Protection will monitor supplies of cannabis in the state to determine when purchase caps on adult-use cannabis will be lifted.
The Botanist hybrid recreational and medical marijuana retail shop in Montville is operated by New York-based multistate operator Acreage Holdings. Kate Nelson, senior vice president of the company’s Midwest and Northwest regions, said that she expects the dispensary’s previous customer count of 200 to 300 patients per day to increase by about 150% during the first week of adult-use cannabis sales. But after the initial rush of excitement, sales are expected to level off.
“I think even before the 40 operators come online, you’ll start to see less of that excitement of something new and more so of kind of what the status quo will become,” Nelson said. “We’re in an area now in the country where there’s other adult-use states nearby. So it’s really going to be a focus of ours, in the state of Connecticut specifically, to make sure that this adult-use program has the product that it needs to have and we can support the industry … to make sure Connecticut sets themselves apart from other competing markets.”
Source: https://hightimes.com/news/connecticut-launches-recreational-cannabis-sales/
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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