Business
Maryland Voter-Approved Legalization Measure Takes Shape in New Year
A huge majority of Maryland voters passed the proposal in November.
Maryland might still be years away from the launch of its new legal marijuana market, but the start of the new year has still marked the beginning of the post-prohibition era mid-Atlantic state.
A large majority of Maryland voters approved a ballot initiative in November that will both legalize recreational pot use for adults in the state and also establish a regulated retail cannabis market.
Per local news station WJLA, although “recreational marijuana won’t be fully legal until July 1, as of now possession of up to 1.5 ounces is no longer a crime”; instead, according to the station, “It’s a civil violation carrying a $100 fine.”
“For amounts up to 2.5 ounces the fine is $250,” the station reported.
But the new law will yield immediate changes on the criminal justice front.
According to WJLA, Marylanders with a cannabis-related conviction on their criminal record on will have it automatically be expunged by July 1, 2024, but they do not have to wait that long.
“You can go to the Maryland Courts website and apply for an expungement without any help from an attorney. They even have instructional videos,” the station said.
WJLA continued: “There is also very good news for those currently locked up for cannabis-related crimes. As long as that is the only crime for which they’re serving a sentence, they can immediately ask for resentencing and a judge must resentence to time served and they must be released.”
Sixty-seven percent of Maryland voters approved Question 4 in November, making the state the latest to end the prohibition on cannabis use.
The “Yes on 4” campaign was bankrolled by Trulieve, a major cannabis company with a significant presence in Maryland’s existing medical cannabis market.
The campaign also deployed former Baltimore Ravens player Eugene Monroe as its chairman.
“Tonight voters in Maryland made history by bringing the era of failed marijuana prohibition to an end,” Monroe said in a statement following its passage in November, as quoted by the Associated Press. “For decades, the unequally enforced criminalization of cannabis in Maryland inflicted damage upon Black and Brown communities. We must turn the page on that disturbing history by centering Maryland’s legal marijuana market around racial equity. Cannabis legalization will create good-paying jobs, open up doors for small business owners, and generate new tax revenue for our state. Legislators in Maryland have a responsibility to ensure people in historically underserved communities are able to enjoy those benefits.”
The success of Question 4 was foreshadowed by a series of encouraging polls for the campaign.
One that was released in early October by the University of Maryland and The Washington Post found more than 70% of voters in favor of cannabis legalization.
“The thing that stood out to me is the high level of support and the diversity of support. Whether you look across party, region, almost every characteristic, you see majorities supporting this,” said Michael Hanmer, the director of the University of Maryland’s Center for Democracy and Civic Engagement, as quoted by The Washington Post. “That’s been the trend across the country. People have really shifted their views across time on this issue, all pointing in the direction of being more supportive.”
The “Yes on 4” campaign has been optimistic about the new law’s potential economic benefits for the state, projecting that legalization could “provide the state with over $135 million in tax revenue.”
“That figure does not include city and county revenue or the savings from the millions of dollars Maryland spends each year enforcing marijuana possession laws. Passing Maryland Question 4 would empower local law enforcement to focus its limited resources on combating violent crimes. Of the ten counties in the United States with the highest rates of marijuana possession arrests, Maryland is home to three of them,” the campaign said on its website.
Source: https://hightimes.com/news/maryland-voter-approved-legalization-measure-takes-shape-in-new-year/
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/
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.”
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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