Business
Mississippi Lawmakers Approve Changes to Medical Cannabis Law
The Mississippi legislature has approved a bill that makes several changes to the medical marijuana legalization measure passed by lawmakers last year.
Mississippi lawmakers last week approved a bill mandating changes to the state’s Medical Cannabis Act, the bill to legalize medical marijuana that was passed by the legislature last year. The measure, House Bill 1158, now heads to the desk of Republican Governor Tate Reeves for his consideration.
Republican Senator Kevin Blackwell, a Republican and one of the bill’s authors, said that the legislation clarifies provisions of Mississippi’s medical marijuana law, which was passed by state lawmakers in 2022.
“Unfortunately the Department of Health in their rules and regs probably accepted some things that were not intentioned by the bill,” Blackwell said on the Senate floor on March 8. “So we are trying to correct those … and we do so in the bill.”
The primary author of the legislation, Republican Representative Lee Yancey, gave an example of a rule enacted by state regulators that would be rolled back by House Bill 158 if the governor signs the legislation.
“The Board of Medical Licensure began implementing additional requirements for doctors to be able to certify people, so… and that was not in the bill. So, it was not our intention for there to be any additional requirement,” said Yancey, who noted that the bill is designed to help Mississippi’s medical marijuana program operate more smoothly. “So, they have to do those eight hours the first year, and then there’s five hours of continuing education every year after that. We felt like that was sufficient just to keep them apprised of what the new research was showing.”
In an attempt to prevent similar discrepancies between state laws and regulations passed by state agencies in the future, the measure also includes language designed to prevent regulators from passing rules that do not comply with the state’s medical marijuana statute.
“No state agency, political subdivision or board shall implement any rule, regulation, policy, or requirement that is contrary to the provisions of the Mississippi Medical Cannabis Act,” reads the text of the bill.
Bill Makes Several Changes To Mississippi Medical Cannabis Act
House Bill 1158 also makes investigations by state agencies, including citations issued by the Department of Health, confidential until an investigation into the matter has been completed. An earlier version of the bill kept such records out of public view indefinitely, but some senators argued that keeping such material off the public record for any length of time is not acceptable.
“I think if it was put out in transparency, it would dispel any of the back and forth on social media,” said Republican Senator Angela Burks Hill, one of five senators who voted against the bill. “I think hiding that is only going to fuel that speculation.”
The bill also makes the physical address of all medical marijuana companies except dispensaries confidential. During public hearings on the legislation, Yancey said the provision was designed to protect the security of cannabis operators, who often must keep large quantities of product and cash onsite.
House Bill 1158 also requires the Mississippi Department of Health to approve a patient’s application to use medical marijuana within 10 days, a reduction from the current requirement of 30 days. The change was enacted to help address a backlog in processing applications by the agency.
Other changes include allowing patients to conduct follow-up visits with a doctor other than the one who first approved the medical marijuana recommendation without experiencing a lapse in certification or access to medicinal cannabis. Additionally, medical professionals who have approved a patient to use medical marijuana are now permitted to assist them with filling out the required state application for a medical marijuana identification card.
Another provision of the legislation allows dispensaries to sell topical medical cannabis products that can not be ingested to adults 21 and older without a medical marijuana identification card. The bill also allows licensed medical marijuana dispensaries to sell hemp-derived products that are legal under federal law, including low-THC CBD formulations. The bill also specifies that hemp products are not subject to control by the state’s Medical Cannabis Act.
The bill also permits the Department of Health to contract with private laboratories to conduct compliance testing of medical marijuana products. Such labs, however, are not permitted to conduct commercial analyses for licensed medical marijuana businesses. Under the legislation, labs conducting testing for licensed medical marijuana businesses are permitted to become licensed cannabis transporters or to contract the services of an independent licensed transporter.
The legislation also allows licensed medical marijuana businesses to use marijuana imagery in company logos and other branding. Photographs of medical marijuana products for sale may be posted online by dispensaries.
House Bill 1158 received final approval from the Mississippi legislature on March 14. The bill now awaits action from the governor.
Source: https://hightimes.com/news/mississippi-lawmakers-approve-changes-to-medical-cannabis-law/
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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