Business
Florida AG Says No Recreational Weed in Florida Because, Well, Technically, Weed is Illegal in America
The Florida AG askes the Supreme Court to toss out the recreational cannabis ballot question
The Attorney General of Florida has presented a document to the state Supreme Court outlining her justifications for preventing a marijuana legalization proposal from appearing on the 2024 ballot. Alongside her, the Florida Chamber of Commerce and an anti-drug organization have also filed documents opposing the initiative. Notably, most of this measure’s funding is provided by Trulieve, a cannabis company operating in multiple states.
Attorney General Argues Ballot Summary of Cannabis Measure is Misleading to Voters
Following a court-granted extension of two weeks, Attorney General Ashley Moody (R) submitted the initial brief before the Monday deadline. As anticipated, her office is once again making efforts to invalidate the cannabis measure, asserting that its ballot summary is intentionally misleading for several reasons, thereby confusing voters.
One of the key points raised by Moody is the failure of the initiative to adequately disclose that marijuana would continue to be illegal under federal law. According to her brief, previous court decisions regarding earlier legalization proposals failed to recognize the necessity of providing clear guidance to voters before they are asked to eliminate state-level penalties for possessing a substance that could potentially subject them to severe criminal consequences under federal jurisdiction.
The brief further emphasizes the importance of clarity due to the prevalence of misinformation in the media and the sponsor’s promotion of the initiative, asserting that it amplifies the need for accurate information to be conveyed to voters.
Attorney General Argues Misleading Aspects of the Cannabis Measure
The attorney general’s second point of contention revolves around the alleged misleading nature of the measure. It suggests that the measure falsely indicates that it would directly increase the number of available consumer retailers. In contrast, its effect is to maintain the legislature’s authority to expand retail operations, with no guarantee that lawmakers will choose.
Because increasing competition in the marijuana market will reduce retail costs and raise the standard and professionalism of producers and merchants, the brief emphasizes that Floridians would probably be worried about this issue. The proposed amendment would not change the fact that only Medical Marijuana Treatment Centers (MMTCs) are now permitted to engage in the marijuana trade in Florida; nonetheless, it is made clear that this situation will remain unchanged.
Moreover, the ballot summary is criticized for “misleading” reasonable voters by implying that the measure limits the immunity to possessing up to three ounces of cannabis. The brief argues that it would impose specific penalties for possession exceeding the allowable amount and restrict the legislature’s ability to raise the limit. The measure’s language would effectively result in prohibiting most, if not all, marijuana cultivation within the state.
The brief further contends that by limiting personal possession of marijuana to three ounces, the amendment favors corporate interests, such as Trulieve, in solidifying their dominance in the marijuana market. Prohibiting the possession of quantities exceeding three ounces would make it challenging, if not impossible, for individuals to cultivate marijuana for personal use or for the consumption of their friends and family, thereby compelling users to rely solely on the retail marketplace.
Lastly, the attorney general asserts that the proposal is misleading in failing to disclose that the Department of Health would lack the same constitutional regulatory authority over recreational marijuana as it currently has over medical marijuana. It also neglects to mention that there would be a substantial period during which medical cannabis dispensaries engage in the unregulated trade of recreational marijuana.
In conclusion, the attorney general’s office argues that the Adult Personal Use of Marijuana amendment seeks significant changes to Florida’s Constitution but does not provide honest information to voters about the nature and consequences of those changes. As a result, the initiative should be invalidated.
Challenges to the Cannabis Legalization Initiative and Signature Qualification
Meanwhile, the Chamber of Commerce has presented a distinct brief challenging the initiative’s constitutionality by arguing that it violates the requirement for single-subject ballot measures. The chamber asserts that the proposal unlawfully combines the subjects of decriminalization and commercialization of recreational marijuana.
The Drug-Free America Foundation, a non-profit organization, has also submitted a brief arguing that the initiative is facially invalid under the Supremacy Clause of the United States Constitution, as it conflicts with federal law.
State officials declared earlier this month that the legalization issue had amassed enough valid signatures to qualify for the 2024 ballot thanks to the efforts of the Smart & Safe Florida campaign. The number of validated signatures had above the necessary level of 891,523 as of the end of May, according to the Florida Division of Elections, which publishes updates on petition tallies.
In January, the measure successfully cleared a significant initial hurdle by obtaining enough signatures to initiate a review of the measure’s language by the state Supreme Court. However, the attorney general’s office is now challenging the language through an initial filing submitted by Moody last month.
Despite the attorney general’s objections, activists assert that they have thoroughly examined the measure and are confident that the court will agree it meets constitutional requirements.
It is worth noting that Moody made a similar argument against a legalization measure in 2022, which the Supreme Court subsequently invalidated. With the initial brief now filed, reply briefs are expected to be submitted by July 19 and 26, according to the extended timeline.
To qualify for the ballot, an initiative must gather valid signatures from registered voters, amounting to at least 8 percent of the district-wide vote in at least 14 of the state’s 28 congressional districts, and meet the statewide signature requirement. The marijuana campaign has met the threshold in exactly 14 districts, per the recently updated state data.
Bottom Line
The Attorney General of Florida, supported by the Chamber of Commerce and the Drug-Free America Foundation, seeks to prevent a marijuana legalization initiative from appearing on the 2024 ballot. The Attorney General argues that the measure’s ballot summary needs to be more accurate and disclose crucial information to voters. Challenges to the initiative’s constitutionality have also been raised. However, the Smart & Safe Florida campaign has successfully gathered enough valid signatures to qualify the initiative for the ballot. The next steps involve the submission of reply briefs and the court’s decision on the matter. As the legal battle unfolds, the fate of marijuana legalization in Florida hangs in the balance.
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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