Business
Cory Booker Says Mitch McConnell Is Blocking Cannabis Bills
Democratic Sen. Cory Booker of New Jersey says that Senate Minority Leader Mitch McConnell is blocking cannabis reform bills from being passed by Congress.
Democratic U.S. Senator Cory Booker of New Jersey says that Senate Minority Leader Mitch McConnell is opposed to marijuana policy reform and is blocking cannabis bills from being approved by his Republican colleagues. Booker said that McConnell’s opposition is preventing the passage of marijuana legislation in the upper chamber of Congress before the end of the year, after which control of the House of Representatives will switch to the GOP.
Cannabis policy reform advocates had hoped to be able to pass meaningful reforms during the current lame-duck session of Congress before control of the House Representatives passes to the Republican Party. But Booker said that McConnell’s opposition to reforms including restorative justice for those harmed by decades of marijuana prohibition and a bill that would allow the legal cannabis industry access to banking services is influencing the stand taken by other GOP senators.
“They’re dead set on anything in marijuana,” Booker told NJ Advance Media. “That to me is the obstacle.”
The Republican party will take control of the U.S. House of Representatives in the new session of Congress next year after gaining a slight majority in last month’s midterm elections. Cannabis policy reform is not likely to be a legislative priority for GOP leaders, who have been less enthusiastic about marijuana legalization than their Democratic counterparts. If cannabis policy reform advocates do not pass a bill before the end of the year, the change in House leadership makes progress on the issue a long shot for at least the next two years.
Republican Representative Brian Mast of Florida, the co-chair of the Congressional Cannabis Caucus, said that cannabis policy reform is consistent with traditional Republican values, but McConnell has failed to take a leadership role on the issue.
“It’s not something that he’s historically been interested in moving or seems to be interested in moving right now,” said Mast. “He should. Just as much as Republicans have been out there arguing states’ rights over Roe v. Wade for the last several months, this is just as much of an issue.”
Hopes For Reform Hinge On SAFE Banking Act
Cannabis policy reform is currently largely focused on the Secure and Fair Enforcement (SAFE) Banking Act, which would ease access to traditional financial services for regulated marijuana businesses. Provisions of the bill have been passed by the House of Representatives seven times since 2019, but the measure has failed to gain the approval of the Senate. Most recently, language from the SAFE Banking Act was included in the House version of an annual defense spending bill, but the cannabis provisions were left out of the version released last week.
For the Republicans, bipartisan negotiations on cannabis policy reform are being led by Senator Steve Daines, with the goal of drafting a bill that includes restorative justice provisions championed by Booker while gaining the support of enough GOP senators to be approved in the Senate, where 60 votes from the nearly evenly split body of 100 lawmakers are needed to advance most legislation.
“The senator is doing everything he can to get this bipartisan bill across the finish line this year for the sake of public safety,” said Rachel Dumke, a spokeswoman for Daines’ office.
But Booker thinks that opposition to marijuana policy reform from McConnell, who has been a leader in hemp legalization, is making his fellow Republicans hesitant to support the SAFE Banking Act or a comprehensive legalization bill.
“The caucus is clearly divided but the people in power in their caucus are clearly against doing anything on marijuana,” Booker said.
Cannabis advocate Justin Strekal, the founder of the marijuana policy reform political action committee BOWL PAC, said that he is hopeful that provisions of the SAFE Banking Act can be attached to an upcoming must-pass omnibus spending bill currently being negotiated in Congress. If the cannabis policy reform measures are part of a larger bill, which would fund the federal government through September of next year, Republican senators could vote for the bill without being forced to openly “defy Mitch McConnell in front of him,” Strekal said.
Source: https://hightimes.com/news/cory-booker-says-mitch-mcconnell-is-blocking-cannabis-bills/
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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