Business
No One Has Applied For A Cannabis Retail License in Guam Yet
However, Guam regulators have approved 11 “responsible officials.”
The newly established recreational cannabis industry in Guam is taking shape, slowly but surely.
Pacific Daily News reported this week that government regulators in the United States territory have approved 11 so-called “responsible officials” to participate in the recreational pot market, but the Department of Revenue and Taxation says that “no one has taken the next step of applying for a cannabis establishment license.”
Earning that designation is a crucial step toward landing a license, however.
Jeff Wells, the chief executive officer of Metrc—the seed-to-sale tracking system Guam is using—said last year that the company was “excited to rise to the challenge of this unique regulatory opportunity.”
“Metrc is thrilled to partner with the Department of Public Health and Social Services as Guam builds its medical marijuana market. We look forward to working with both regulators and licensed business owners to implement the island’s first regulatory track-and-trace program. We are proud to play a leading role in ensuring the safety and security of the nation’s legal cannabis market,” Wells said at the time.
Guam legalized recreational cannabis back in 2019 with the Guam Cannabis Industries Act.
The measure “legalizes the personal possession of marijuana by adults, and establishes regulations governing the plant’s commercial production and retail sale,” according to NORML.
“The law permits those age 21 or older to legally possess and transfer up to one ounce of marijuana flower and/or eight grams of concentrated cannabis. The measure, which took immediate effect, also permits adults to privately cultivate up to six cannabis plants (no more than three mature) in an ‘enclosed, locked space.’ Public consumption of cannabis will remain a violation of law,” NORML explained after the measure was approved. “The Act creates a new regulatory board to draft rules governing the plant’s commercial production and retail sale. The board has a one-year timeline to adopt rules necessary to permit for the operation of licensed cannabis establishments.”
Guam’s Cannabis Control Board gave the greenlight to two more “responsible officials” on Monday, according to Pacific Daily News. The regulator had already given the go-ahead to nine other individuals who earned the designation.
Those individuals were “briefed about the next steps during a Nov. 17 meeting and were given the application forms required to open a cannabis establishment,” Pacific Daily News reported.
“They have it, they’re working on their packet, but none of them actually submitted to the office for review or consideration at this time,” Craig Camacho, a compliance supervisor for the Department of Revenue and Taxation, told the Cannabis Control Board, as quoted by Pacific Daily News.
Guam’s governor, Lou Leon Guerrero, announced late last year that the island had “executed a contract with Metrc, an experienced provider of cannabis regulatory systems in the United States.”
“Over the last decade, we have seen substantial evidence that cannabis has medicinal benefits. With the final review by our Cannabis Control Board on the rules and regulations for the industry, we can more efficiently control recreational use and ensure safe and regulated products,” Guerrero said in a statement at the time. “The cannabis industry will benefit our community by funding expanded public services in health and public safety, and providing alternative treatment and rehabilitation for people who need it.”
Guam lieutenant governor Josh Tenorio said that as “an island territory and tourism hotspot, Guam’s cannabis market faces unique challenges when it comes to regulation and oversight.”
“We are excited for this historic partnership between DPHSS and Metrc, which will assist our government in executing the secure and responsible implementation of our cannabis industry on Guam, and further provide us with the tools we need to ensure our success,” Tenorio said.
Source: https://hightimes.com/news/no-one-has-applied-for-a-cannabis-retail-license-in-guam-yet/
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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