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Legalization Opponents Sue To Block Initiative From Missouri Ballot

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Opponents of a Missouri initiative to legalize recreational cannabis have filed a lawsuit to block the measure from the November ballot.

A coalition of groups opposed to drug reform efforts has filed a lawsuit to block an initiative to legalize recreational pot from the Missouri ballot, arguing the measure did not meet constitutional requirements and failed to receive enough petition signatures. Missouri Secretary of State Jay Ashcroft certified the initiative, which would legalize marijuana for adults and permit commercial cannabis activity, earlier this month.

John Payne, a spokesman for Legal Missouri, the group sponsoring the legalization effort, said that it is the only initiative that had the public support necessary to collect enough signatures to qualify for the ballot.

“This lawsuit lacks merit and in less than three months Missouri will be the 20th state to regulate, tax and legalize cannabis,” said Payne.

The lawsuit was filed on August 19 on behalf of Joy Sweeney, a resident of Jefferson City, Missouri, who serves as the deputy director of training, technical assistance and community outreach for Community Anti-Drug Coalitions of America, a coalition of community groups that aims to prevent substance use and abuse. The legal action is also supported by Protect Our Kids PAC, a Colorado-based super PAC started earlier this year to oppose drug policy reform efforts.

“Not only does the language deceive voters about the harms of legalization, it is in violation of state law and the Missouri Constitution,” Luke Niforatos, the CEO of Protect Our Kids PAC, said in a statement. “We hope the courts will rule on this issue expeditiously and spare Missouri’s children from targeting by Big Marijuana.”

JoDonn Chaney, a spokesman for the Missouri Secretary of State’s Office, said the office had not been officially served with the suit and that he could not comment on the specifics of the legal action. But he added that the signature totals and certification process “speak for themselves.”

“The individuals responsible for submitting this (initiative petition) met the constitutional requirements as required by statute, therefore Secretary Ashcroft certified Amendment 3 to the ballot,” Chaney said. “The secretary followed the law and fulfilled his statutory duty and stands behind his certification.”

To qualify for the ballot in Missouri, initiative campaigns must collect enough signatures from registered voters to equal at least 8% of the votes cast in the 2020 gubernatorial election in a minimum of six of the state’s eight congressional districts. Those backing the lawsuit note that unofficial tabulations of the petition signatures conducted by local election officials last month showed the campaign was short by 2,275 signatures. But after backers of the petition requested a review of the total by the Secretary of State’s Office, officials determined that the campaign had collected enough signatures and Ashcroft certified the petition for the November ballot on August 9.

The legal action claims that Ashcroft “certified and counted signatures that were marked through by the local election authorities and, absent this action, the marijuana initiative petition would not have had a sufficient number of valid signatures in six of eight congressional districts.” The suit notes that signature counts and voter rolls requested under Missouri’s open records law have not been provided to the plaintiff.

The lawsuit also alleges that the marijuana legalization initiative fails to comply with requirements that ballot measures cover only one subject. Under the Missouri Constitution, initiative petitions that amend the state constitution, “shall not contain more than one amended and revised article of this constitution, or one new article which shall not contain more than one subject and matters properly connected therewith.”

The court filing for the suit claims that the initiative would not only legalize recreational marijuana but would also criminalize cannabis possession beyond a statutory limit, create a process for licensing marijuana cultivators, set tax guidelines, create a new position to oversee licensing “on a preferential basis,” and establish a system to expunge past marijuana convictions.

Under Missouri law, the lawsuit will be advanced to the court docket so it can be heard and decided in an expedited manner.

Source: https://hightimes.com/news/legalization-opponents-sue-to-block-initiative-from-missouri-ballot/

Business

New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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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:

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/

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Marijuana companies suing US attorney general in federal prohibition challenge

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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.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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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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