Business
Is Cannabis Legalization Stalling Out Across America? – Rec Weed Fails in Arkansas, North Dakota, South Dakota, and Oklahoma
Some people don’t think marijuana should be sold for fun in their state.
As the winds of change blow across the United States, many states have lifted their bans on recreational cannabis. However, not every state has embraced the green wave with open arms. Despite the growing popularity of cannabis and its proven medical benefits, some states remain resistant to legalizing recreational use. Whether it’s a concern for public health, public safety, or a reluctance to break tradition, these states have chosen to swim against legalization. So, while some states are blazing a trail towards a more enlightened approach to cannabis, others remain firmly planted in the past.
Recently, Arkansas, North Dakota, South Dakota, and Oklahoma have voted against recreational cannabis legalization demonstrating that not all US states are welcoming cannabis legalization with open arms,
Arkansas
The Arkansas state legislature proposed Issue 4, which seeks to legalize cannabis for personal use by adults. This amendment would authorize licensed commercial facilities to cultivate and sell cannabis while regulating their activities. The amendment would make one ounce of cannabis for recreational use legal for adults 21 years of age and older under Arkansas state law while acknowledging that the drug is still illegal under federal law. It would also permit holders of medical marijuana cards to buy recreational cannabis without that amount adding up to how much they can buy for medicinal reasons.
However, the preliminary vote count reveals that over 56% of Arkansas voters have turned down Issue 4, which aimed to legalize cannabis. It means that the amendment would not be enacted. It’s worth noting that Arkansas voters had previously approved the use of medical marijuana in 2016.
Legalizing recreational marijuana faced opposition from the Arkansas Family Council Action Committee because it could escalate minor criminal activities and fuel substance addiction. This faction and other groups sought to garner the backing of influential political personalities such as former Vice President Mike Pence and the Governor of Arkansas, Asa Hutchinson, to thwart the proposal.
North Dakota
Measure 2 was proposed to sanction the use of cannabis for adults in North Dakota, granting those aged 21 and above the right to possess a restricted quantity of cannabis derivatives. Furthermore, the measure proposes a framework to safeguard users, impose restrictions and penalties, and define the rights of employers concerning the utilization of cannabis products.
North Dakota voters decisively rejected Measure 2, with approximately 55% opposing the legalization of cannabis, despite having 99% of the votes counted. The opposition to marijuana was apparent even in the more progressive areas of the state. The New York Times reported that Burleigh County, which comprises Bismarck, the state capital, voted against legalization by 58%.
While Cass County, where the city of Fargo is located, displayed a more favorable response, it was inadequate to counterbalance the conservative areas of the state. The ballot measure was similar to a bill that passed the North Dakota House of Representatives in 2021.
Comparable to Arkansas’ amendment, the initiative proposed the legalization of possession of one ounce of marijuana for individuals aged 21 and above, with the added provision of allowing residents to cultivate up to three plants in their homes. North Dakota voters also rejected cannabis legalization in the 2018 Midterm Elections.
South Dakota
Measure 27 is a statutory initiative in South Dakota that proposes the legalization of adult-use cannabis aged 21 and above. The measure permits South Dakotans to possess one ounce of marijuana or eight grams of marijuana concentrates and to give these amounts to other adults without compensation. Furthermore, residents of cities or counties without licensed marijuana retailers would have the right to cultivate up to three plants per individual or six plants per household.
The ballot initiative prioritizes an employer’s right to maintain drug-free workplace policies and refrains from mandating accommodation for employee marijuana use. Private property owners can disallow marijuana cultivation or consumption on their property. The proposal also subjects individuals who cultivate marijuana without ensuring its invisibility or locked status from public view to small administrative fines. Finally, it allows for penalties on adults who smoke marijuana in public areas.
With 99% of the expected vote being tallied, South Dakota voters ultimately rejected Measure 27, with almost 53% voting against legalizing the possession and usage of marijuana for those aged 21 and above, as reported by NBC. The ballot initiative should have elaborated on the state’s anticipated regulatory policies. According to Marijuana Movement, the policy did indicate that state and local governments could prohibit its use in structures that are “owned, leased, or occupied” by a government entity.
South Dakota voters had previously expressed support for the legalization of marijuana in 2020, with 54% of voters favoring the move. However, a legal challenge spearheaded by Governor Noem obstructed the reform’s progress. According to a faculty member at Northern Kentucky University, Kreit, many South Dakota residents hold Governor Noem’s views in high regard. Although Noem secured re-election significantly, she told voters she would not impede marijuana legalization again if the initiative passed. However, she was also observed encouraging individuals to vote against the ballot measure in campaign advertisements.
Oklahoma
The legalization of recreational marijuana was also denied by Oklahoma voters after a last-minute surge of opposition from religious leaders, law enforcement officials, and prosecutors. If approved, Oklahoma would have become the 22nd state to legalize adult cannabis use, joining conservative states such as Montana and Missouri that have authorized similar measures in recent years.
The proposal faced opposition from Republican Governor Kevin Stitt and numerous GOP legislators, with almost every Republican senator taking a stand against it. The “no” campaign was spearheaded by ex-FBI agent and former Republican Governor Frank Keating, alongside Terri White, who previously headed the Oklahoma Department of Mental Health and Substance Abuse Services.
Expressing their contentment with the outcome, Pat McFerron, a Republican political strategist who managed the opposition campaign, remarked that the voters’ decision was a clear indication that they disapproved of the recreational undertones of the medicinal system. He believed that the election result reflected voters’ dissatisfaction with the overly recreational nature of the state’s medicinal system. McFerron also noted that the voters recognized the criminal elements associated with the system and acknowledged the need for addressing mental health concerns in the state.
Conclusion
The legalization of marijuana has become an increasingly contentious issue in the United States, with some states embracing it and others vehemently opposing it. The results of the recent elections in Arkansas, North Dakota, South Dakota, and Oklahoma demonstrate the divide among Americans regarding cannabis reform.
While some states have taken steps toward legalization, others have maintained the status quo. Regardless of the outcome of these elections, it is clear that the conversation around marijuana reform will continue to evolve as more and more states weigh in on the issue.
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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