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No, You Can’t Give Away Weed, Anymore – Cannabis Gifting Ban Starts with Connecticut and Spreads to Other States

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Many states are banning cannabis gifting and weed as a purchase add-on for other things

Earlier this year, Connecticut drew up a bill proposal to ban cannabis gifting and charge offenders up to $10,000. But, immediately after the proposal hit the news, it was faced with many criticisms with advocates hoping the bill won’t be enacted.

Unfortunately, the governor of Connecticut, Gov. Ned Lamont, in the last week of May, signed into law the reform bill that bans cannabis gifting. Not just that, but another bill was also signed into law to regulate cannabis advertising within the state.

The Genesis of the Bill

Earlier this year, in February, to be precise, the General Assembly of Connecticut brought forward Bill No. 5329. The bill was proposed to deal with the loopholes of cannabis gifting.  New York recently stepped up to ban cananbis gifting as well.

On the 8th of March, 2022, a meeting was held by the General Law committee on the bill which would see offenders face a fine of $10,000 for gisting cannabis. At the meeting, cannabis advocates shared their concerns on why the bill shouldn’t be enacted. California cannabis gifting has been an issue since the 2016 election that legalized recreational marijuana in the state.

Connecticut is one the other newest states to legalize recreational use of cannabis with Governor Ned Lamont passing the bill into law in 2021. Following the roadmap, recreational cannabis sales us expected to kick off within the state towards the end of the year.

But with the proposed bill, cannabis advocates claim it is an attempt to re-criminalize marijuana before its legalization even kicks off. According to the text in the bill, no individual shall sell, transfer or gift marijuana to another individual. The bill also states that marijuana shall not be swapped as a donation, via giveaways, or as access to an event or at any locale outside of a licensed marijuana dispensary.

Duncan Markovich, a cannabis business owner who was present at the meeting aired his skepticism about the bill. He affirmed that some of the terms used in the bill would in fact re-criminalize cannabis, setting the industry’s progress backward. He went on to say that the citizens of Connecticut and active members of the cannabis culture and community, advocates, and the entire industry cannot use such language around cannabis.

Legislation a law that Douglas the gifting of cannabis and cannabis products be it medicine to friends and family members or strangers is unethical, unimaginable, and shameful. Duncan also contended that giving out cannabis should be on the same pedestal as giving out produce from one’s garden.

Justin Welch, another advocate present at the meeting and a member of the New England Craft Cannabis Alliance, made known his resistance to the bill. He claimed that for a very long time now, good people have been prosecuted for possessing and using cannabis. He acclaimed that the local marijuana community present in Connecticut will continue to grow stronger once the bill is passed it not. He concluded that practical policies in cannabis need to be brought forward to regulate the cannabis community. 

Regardless, there’s a definite disparity between gifting marijuana to loved ones or friends and gifting it with a differently purchased item. For instance, the gifting implied in the bill is seen in the High Bazaar event which took place in Hamden, Connecticut. The event hosted about 1,200 visitors to experience live music and try out local vendors. Reports from the New Haven Register indicated that a referendum put an end to the High Bazaar event due to not having adequate permits.

Michael D’Agostino, a representative of Hamden at the meeting took his time to explain the concept of gifting referred to in the bill. The bill is not against personal cannabis gifting, instead, it is to prevent gifting on a large scale. The committee using such language intended to turn to retail hosting events that have become popular in the state. In his assertions, D’Agostino claims that the bill is just an end-run around the transaction process and permitting that were established via the cannabis laws.

As it stands, the bill has been enacted following a signature from Gov. Ned Lamont, although some effective changes were made.

Regarding if the High Bazaar will continue its events in the near future, no confirmation of that effect has been announced. Although, the mayor’s office in Hamden would look for a new location to operate very soon. The chief of staff of Mayor Lauren Garret, Sean Grace, said that the present administration is in support of cannabis-related businesses and organizations. Hamden is opening arms to High Baazaar but the issue with hosting such an event is the safety concerns. She believes the events are profitable and successful hence they attract late numbers of people, so there’s a need to get the venue right.

Enacting the Bill

On the 24th of May, 2022, Gov. Ned Lamon signed into law Bill No. 5329, banning the gifting of cannabis in exchange for indirect payment or donations. However, different from the initially proposed $10,000 fine against offenders, it was eventually reviewed to a maximum of $1,000 fines for offenders. The law explicitly defined that individuals can share cannabis with friends, families, and strangers provided the exchange isn’t transactional.

The governor also signed into law another bill to regulate cannabis marketing and advertising in the state. The bill restricts cannabis ads within 1,500 yards of churches and schools and also prohibits billboard advertisement by unlicensed cannabis firms in the state. The legislation only authorizes cannabis-related adverts between the hours of 11 pm and 6 am in order to limit children’s exposure to cannabis.

Conclusion

It can be said that the government of Connecticut has done due diligence in trying to navigate through various cannabis legislation to be at this juncture. While the state allows for adult and medical use of cannabis, it also thrives to help protect minors from cannabis exposure while carefully marketing the cannabis industry to adults.

Adults in Connecticut can possess a maximum of 5 ounces of cannabis in private and a maximum of 1.5 ounces in public. As things are, medical cannabis dispensaries will be the first to be licensed to sell cannabis to adults absent of medical prescription. Although recreational cannabis sales are also expected to kick off by the end of this year.

Meanwhile, patients with doctor’s prescriptions are allowed to cultivate their cannabis in their home gardens from the 1st of October 2021.

Source: https://cannabis.net/blog/news/no-you-cant-give-away-weed-anymore-cannabis-gifting-ban-starts-with-connecticut-and-spreads-to

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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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