Business
Kentucky Governor Signs Executive Order To Allow Use of Medical Cannabis
Kentucky Governor Andy Beshear signed executive orders on Tuesday to allow the use of medical marijuana and to regulate delta-8 THC.
Democratic Governor Andy Beshear of Kentucky on Tuesday signed an executive order authorizing the use of medical marijuana for some patients. Under the order, Kentuckians with certain specified serious medical conditions will be able to use medical cannabis beginning next year.
“Kentuckians suffering from chronic and terminal conditions are going to be able to get the treatment they need without living in fear of a misdemeanor,” Beshear said in a statement from the governor’s office. “With 37 states already legalizing medical cannabis and 90% of Kentucky adults supporting it, I am doing what I can to provide access and relief to those who meet certain conditions and need it to better enjoy their life, without pain.”
Beshear’s executive order authorizes patients with at least one of 21 medical conditions including cancer, terminal illness, muscular dystrophy, epilepsy, and post-traumatic stress disorder to use medical marijuana. To comply with the executive order, medical cannabis must be purchased in a state that has legalized and regulates marijuana and the patient must retain the receipt. Possession of medical marijuana is limited to eight ounces, which is the difference between a misdemeanor and a felony for marijuana possession in Kentucky. Patients are also required to have certification from a licensed medical provider that shows the patient has been diagnosed with at least one of the specified medical conditions.
The governor added that guidelines were being developed for law enforcement to help officers quickly determine who is eligible to use and possess medical marijuana. Beshear also emphasized that his executive order is not a substitute for “much-needed legislation to fully legalize medical cannabis.” The governor plans to work with lawmakers in the upcoming legislative session to advocate for comprehensive medical marijuana legalization, “which would further provide relief for those suffering, fuel job growth and support Kentucky’s farmers.”
Panel Finds Strong Support For Legalizing Marijuana
The executive order follows the failure of the state legislature to pass legislation earlier this year and Beshear’s creation of the Team Kentucky Medical Cannabis Advisory Committee in June. The panel traveled throughout the state, hosting town hall meetings to listen to Kentuckians’ views on the legalization of medical marijuana. In addition to the town hall meetings, the state’s medical cannabis website allowed Kentuckians to submit their opinions online. The website received 3,539 comments, 98.64% of which expressed support for legalizing medical cannabis in the state. On September 30, Beshear released a summary of the committee’s work that showed a majority of Kentuckians agree that it is past time for the state to take action on legalizing medical cannabis.
“Our committee met good people all across the commonwealth who are suffering from terrible chronic conditions that are relieved by medical cannabis,” said Kerry Harvey, co-chair of the committee and secretary of the Justice and Public Safety Cabinet. “This is real-world experience, not conjecture. The Governor’s action will improve the quality of life for these Kentuckians, but more should be done in the coming legislative session.”
“It took bravery to overcome anxiety and often physical pain to stand up at a town hall meeting, but people did it to make sure their story was heard. Not only for themselves, but also for the benefit of family members, friends and others facing a similar condition,” added Ray Perry, co-chair of the committee and secretary of the Public Protection Cabinet. “Each story made it clear that people are finding real relief from chronic conditions with medical cannabis.”
Second Executive Order Regulates Delta-8 THC in Kentucky
Beshear also signed a second executive order on Tuesday that regulates delta-8 THC, a psychoactive cannabinoid that can be manufactured from legal hemp. The governor noted that delta-8 is not a controlled substance in Kentucky or at the federal level, and a court has ruled that the substance is legal in Kentucky.
“Right now, there are no checks on how it is packaged and sold. We must establish a regulatory structure to ensure that Delta 8 is sold and purchased safely in the commonwealth,” Beshear said. “The structure can and will also serve as a template for when the General Assembly fully legalizes medical cannabis. That means we can learn in real-time, train our people and be ready to go.”
The governor’s office noted that a total of 37 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have approved legislation to allow cannabis for medical use by qualified individuals. Additionally, Kentucky’s neighboring states of Ohio, Illinois, Missouri, and West Virginia have legalized medical cannabis.
“This is not a red or blue issue,” Beshear said. “It is about our people and helping those who are in pain and suffering.”
Beshear’s executive order to legalize marijuana is scheduled to go into effect on January 1, 2023.
Source: https://hightimes.com/news/kentucky-governor-signs-executive-order-to-allow-use-of-medical-cannabis/
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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