Business
Germany Releases Draft Bill For Cannabis Legalization
The country’s ministry of health released a draft of the measure on July 5.
Germany continues to inch closer to a new era of cannabis legalization.
Last week, the country’s ministry of health unveiled a draft bill providing details on new regulations for personal use and cultivation of marijuana.
It has been a longtime coming for Europe’s largest economy, with German policymakers driving to reform the country’s cannabis laws for the last year.
The release of the draft bill, the ministry of health explained, is one part of a “two-pillar model” to “legalize private cultivation by adults for personal consumption as well as communal, non-commercial cultivation of cannabis in cultivation associations.”
According to Forbes, under the draft bill, “adults aged 18 and above will be allowed to possess up to 25 grams of cannabis for personal use and cultivate a maximum of three plants.”
“However, the consumption of cannabis in the ‘immediate vicinity’ of individuals under 18, within a 200-meter radius of schools, children’s and youth facilities, playgrounds, publicly accessible sports facilities, and pedestrian zones between 7 am and 8 pm, will remain prohibited. It’s important to note that fines and criminal charges will continue to be imposed for specific unlawful activities,” Forbes reported.
In addition, the outlet noted that the “proposed legislation allows an association to accept up to 500 members,” with each “member belonging to the association … eligible to receive either 25 grams per day or 50 grams per month for personal use.”
In April, following meetings between German leaders and European Union officials, the country signaled that its cannabis reform would be significantly scaled back from the initial aspirations.
The Associated Press reported at the time that the “German government revised the plan following talks with the European Union’s executive commission.”
German Agriculture Minister Cem Özdemir said EU law “sets us limits we must respect, but that I will also say we are pushing,” as quoted by the Associated Press at the time.
“Lauterbach had cautioned all along that the government would only proceed with its original plan if it got the green light from the EU,” according to the AP. “Germany has allowed some patients to get cannabis as a prescription medication since 2017.”
In a primer posted on its website, the German Ministry of Health explained what will happen next in the draft bill’s road to becoming law.
“It is planned to pass the draft law in the federal cabinet during the summer break. The draft law will then be introduced into the parliamentary legislative process and discussed in both the German Bundestag and the Bundesrat in the autumn. The German Bundestag is responsible for the final decision on the law,” the government agency explained. “The law does not require the approval of the Bundesrat. It is scheduled to come into force at the end of 2023. Once the bill comes into force, adults can legally smoke a joint in Germany under the proposed law. Until then, cannabis will remain prohibited.”
The ministry also explained why the German government decided to reform its cannabis laws.
“In the opinion of the federal government, the current drug policy on cannabis use is reaching its limits. Despite the ban on its purchase and possession, cannabis is widely used and use has increased in recent years,” the agency explained. “The consumption of cannabis, which is obtained from the black market, is often associated with an increased health risk, since the THC-The content is unknown and may contain toxic admixtures, impurities and synthetic cannabinoids whose potency cannot be estimated by the consumer. The law aims to contribute to improved health protection, strengthen cannabis-related education and prevention, curb organized drug crime and strengthen child and youth protection. To protect consumers, the quality of consumer cannabis should be controlled and the transfer of contaminated substances should be prevented. Incentives to expand cannabis use should not be created.”
Source: https://hightimes.com/news/germany-releases-draft-bill-for-cannabis-legalization/
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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