Government
Rejected Cannabis Ballot Initiative in Arkansas Taken to Supreme Court
After an Arkansas ballot initiative was denied due to its name, a lawsuit is being taken to the Supreme Court asking for a preliminary injunction.
The ballot initiative submitted by the Responsible Growth Arkansas, a cannabis advocacy group, was recently rejected on Aug. 3 by Board of Election Commissioners for its name and title. On Aug. 4, the group filed a lawsuit with the state Supreme Court to challenge the decision.
As of July 29, Responsible Growth Arkansas provided at least 90,000 valid signatures needed to qualify for the ballot (the group provided more than was necessary). However, once the Commissioners reviewed the submission, they claimed that the ballot title did not fully explain the amendment description to voters, and specifically stated that the current language would alter Arkansas’s current THC edible restrictions. The proposal in question, called “An amendment to authorize the possession, personal use, and consumption of cannabis by adults, to authorize the cultivation and sale of cannabis by licensed commercial facilities, and to provide for the regulation of those facilities,” would allow possession of up to one ounce of cannabis for adults over 21 years, and would permit state-licensed dispensaries to sell recreational cannabis, if passed.
Commissioner J. Harmon Smith focused on the THC limits for edibles. “If I’m a voter I might be all for this but I’d like to safeguard that edible limit,” Smith said.
Responsible Growth Arkansas’s attorney, Steven Lancaster, explained that this is an unreasonable request. “The type of detail that the board expected, or demanded in this case, would make our ballot title thousands and thousands of words long,” said Lancaster. “That just simply is not workable for a ballot.”
Following the rejection, the group filed a lawsuit to appeal the decision “to challenge the State Board of Election Commissioners’ thwarting of the will of the people and their right to adopt laws by initiative,” the filing states, according to KNWA. “The Board has attacked that heart through its incorrect rejection of the ballot title.” The filing includes a complaint against Secretary of State and Commissioner Chair John Thurston, who had certified that the initiative did receive enough signatures to be placed on the ballot on Aug. 2.
The filing claims that Thurston is required to certify the popular name and ballot title if they “are not misleading.” “The popular name and ballot title are legally sufficient under this Court’s precedent because they give voters an impartial summary of the Amendment that provides a fair understanding of the issues presented and of the scope and significance of the proposed changes to the law,” the filing continues. “Nothing is omitted that would give voters serious grounds for reflection, and nothing in the popular name and ballot title is misleading in any way. The Board thus erred in denying certification.”
Ultimately, the lawsuit claims that the rejection was unconstitutional, and asks for a preliminary injunction from the Supreme Court to include the ballot initiative, “because it is unlikely that the Court will decide this action before the August 25 deadline for certification for the Amendment to appear on the November 2022 ballot.”
Just before the initiative was rejected by Commissioners, Arkansas Gov. Asa Hutchinson expressed his opposition to the recreational cannabis initiative while speaking at the Arkansas Municipal Police Association on Aug. 3. “And the reason I oppose it is simply this: that it will increase the usage of marijuana,” Hutchinson said. “I believe that marijuana is a harmful drug. It is as simple as that. I look back to Alaska. In the 70s, they decriminalized marijuana. Marijuana use went up dramatically, particularly among their teens, and Alaska reversed courses and re-criminalized marijuana.”
Hutchinson claimed that cannabis is “harmful.” “Now, they’re going to sell this as something that’s going to help law enforcement. Fifteen percent of the revenue from the taxes on the sales of marijuana will go to a fund to support law enforcement stipends, 10% of it will go to UAMS in Little Rock, and 5% will go to drug courts,” Hutchinson continued. “And so, once again, they’re selling a harmful drug to the citizens of Arkansas based upon promises that look good. Now, those promises might be a reality, but I think you’ve got to be prepared for this debate.”
Source: https://hightimes.com/news/rejected-cannabis-ballot-initiative-in-arkansas-taken-to-supreme-court/
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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