Business
First State-Licensed Medical Dispensary Set to Open in South Dakota
The business, located in Hartford, South Dakota, will open June 27.
It has been more than a year since the new medical cannabis law in South Dakota officially took effect, but there are still no state-approved dispensaries serving patients.
That is about to change.
Next week, when Unity Rd. opens its doors in Hartford, South Dakota––a town of about 3,300 located just outside Sioux Falls, the state’s largest city––it will make history as the first state-licensed medical cannabis dispensary in the Mount Rushmore State.
“We were really pushing hard to get that number one on the door to be the first legal, state-issued license,” B.J. Olson, one of the co-owners of Unity Rd., told the Argus Leader newspaper. “That doesn’t happen, unless you have your foot on the gas from the beginning.”
“We bought the property, we began building the building with no piece of paper, and worst case, we decided we’re gonna build a beautiful structure to lease to somebody and best case, we’re going to be the first dispensary in the state,” said Adam Jorgenson, the other co-owner.
According to the Argus Leader, “Unity Rd. is a franchise and also has shops in Oklahoma and Colorado.”
Voters in South Dakota overwhelmingly approved a ballot measure in 2020 that legalized medical cannabis treatment in the state.
The law officially took effect on July 1, 2021, well before the state had begun issuing licenses for would-be dispensaries. But members of the Flandreau Santee Sioux Tribe opened a dispensary shortly after the official start date last summer, bringing tension between the tribe and the state.
South Dakota Gov. Kristi Noem and other state officials have said that they will not recognize medical cannabis cards issued to individuals who are not members of the tribe.
The Argus Leader reported that, as of February, “the Flandreau Santee Sioux Tribe [had] issued about 8,000 medical marijuana cards to tribal and non-tribal members,” and that, “although several county- and city-level law enforcement agencies and state’s attorneys have eased up on arrests and prosecutions for possession of small amounts of marijuana all together, others, like the Flandreau Police Department are not honoring some tribal-issued medical cards.”
The tribe said at the time that more than 100 people who had been issued tribal medical cannabis cards had been arrested since the dispensary opened last July.
Unity Rd. will “offer a number of products including flower, vape cartridges, topicals, pre-rolls and edibles,” according to the Argus Leader, although initially “only flower will be sold, but the business expects to add products in a couple of weeks.”
The state’s medical cannabis law has faced a sluggish rollout. As of April, there were barely 400 patients who had been enrolled in the program, while only 90 doctors statewide were allowed to approve the use of medical cannabis for their patients.
South Dakota voters also approved an amendment in 2020 that legalized recreational cannabis, but that law was ultimately overturned by the state Supreme Court after it drew a legal challenge by Republican Gov. Kristi Noem.
Noem, a possible 2022 GOP presidential contender, celebrated the ruling.
“South Dakota is a place where the rule of law and our Constitution matter, and that’s what today’s decision is about,” Noem said at the time. “We do things right—and how we do things matters just as much as what we are doing. We are still governed by the rule of law. This decision does not affect my Administration’s implementation of the medical cannabis program voters approved in 2020. That program was launched earlier this month, and the first cards have already gone out to eligible South Dakotans.”
South Dakota will have another shot at legalizing recreational cannabis this fall, however, with a new measure qualifying for the November ballot.
Source: https://hightimes.com/news/first-state-licensed-medical-dispensary-set-to-open-in-south-dakota/
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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