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North Dakota Could Have Legalization Proposal on This Year’s Ballot

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A group submitted petitions to the North Dakota secretary of state this week.

Activists in North Dakota took a big step this week toward getting a cannabis legalization measure before the state’s voters in November.

The group known as New Approach North Dakota said that it submitted boxes’ worth of signatures on Monday to the secretary of state’s office in the capital city of Bismarck in an effort to get the measure on this year’s ballot.

According to local television station KFYR, organizers for the group “submitted a petition with more than 25,000 signatures,” which was “over 10,000 more than they need to place the issue on the ballot in November.”

The secretary of state’s office now has until August 15 “to verify the signatures and determine whether the measure will be placed on the ballot,” according to the station.

Should the measure qualify for the ballot, it could serve as another test case for how much attitudes have shifted on the issue, even in the most conservative corners of the United States.

It will also reveal how much public opinion has changed in North Dakota since 2018, when voters in the state rejected a ballot initiative that would have legalized recreational cannabis.

“In a four-year period, call it, we’ve gone from being surrounded by non-legal states, to everything around us being legal. And that just shows the entire culture and attitude, not just in North Dakota, but in the Midwest as a whole, is shifting on this,” said David Owen, campaign manager for New Approach North Dakota, as quoted by KFYR.

If the measure qualifies for the ballot and wins approval from voters, individuals in North Dakota “who are 21 and older will no longer be punished for using marijuana in the privacy of their home,” according to a summary of the measure, which would permit “adults to possess up to one ounce of cannabis, up to four grams of cannabis concentrate, and up to 500 milligrams of cannabis in an infused product,” and to “cultivate up to three cannabis plants in a secure, enclosed location on their property.”

The new law would also establish “a system of registered dispensaries, manufacturers, and testing laboratories,” with each product “analyzed to determine potency and screened for unsafe contaminants,” and “tracked, traced, and accurately labeled in an inventory system from seed to sale.”

The proposal’s title reads: “This initiated measure would create a new chapter of the North Dakota Century Code. It would allow for the production, processing, and sale of cannabis and the possession and use of various forms of cannabis by individuals who are 21 years of age and older, within limitations as to location; direct a state entity to regulate and register adult-use cannabis production businesses, dispensaries, and their agents; permit an individual to possess a limited amount of cannabis product; provide protections, limitations, penalties, and employer rights relating to use of cannabis products; and provide that fees are to be appropriated for administration of the chapter.”

Organizers in North Dakota may have been encouraged by what they’ve seen from their neighbors to the south.

A majority of voters in South Dakota approved an amendment legalizing recreational cannabis use for adults in the 2020 election, only to see the law unravel under a legal challenge spearheaded by the state’s Republican Gov. Kristi Noem.

But polls have shown that voters in South Dakota remain supportive of legalization (while disapproving of Noem’s handling of the issue), and activists there are aiming to put another proposal on this year’s ballot.

Following the vote in South Dakota, some Republican lawmakers in North Dakota introduced bills to legalize pot in the state, which was described as an effort to “head off citizen-initiated efforts to legalize marijuana through the constitution, after South Dakota voters did just that last year.”

Source: https://hightimes.com/news/north-dakota-could-have-legalization-proposal-on-this-years-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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