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Senator Files Bill To Prep for Federal Cannabis Legalization

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Sen. John Hickenlooper of Colorado introduced a bill that would lay the groundwork for regulations to govern the eventual legalization of cannabis at the federal level.

Democratic Senator John Hickenlooper of Colorado on Thursday introduced legislation designed to prepare the country for national cannabis legalization, laying the groundwork for drafting regulations to govern legal marijuana at the federal level. The bill, the Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act, directs the U.S. attorney general to develop a regulatory framework to be in place for the eventual federal legalization of cannabis by Congress, which is likely inevitable as the popularity of cannabis policy reform continues to grow.

Hickenlooper was the governor of Colorado when voters legalized recreational marijuana with the passage of Amendment 64 in 2012. A month later, he convened the Amendment 64 Task Force to provide recommendations for the establishment of regulations that set the stage for Colorado’s successful legal cannabis industry. Last month, 10 years after Amendment 64 was approved by Colorado voters, Hickenlooper revealed that he planned to introduce the bipartisan PREPARE Act to create a similar commission at the federal level. 

“A decade after Colorado pioneered marijuana legalization, Americans overwhelmingly support the same at the federal level,” Hickenlooper said in a statement from the senator’s office. “This bipartisan, bicameral framework, based on Colorado’s Amendment 64 Task Force, will replicate our success nationally.”

Companion Measure To House Bill

Hickenlooper’s legislation is a companion bill to a House version of the measure sponsored by Representative Dave Joyce, a Republican from Ohio.

“I’m thrilled that the PREPARE Act has been introduced in the Senate, making it not only further bipartisan, but bicameral, and bringing it one step closer to becoming law,” said Joyce. “This legislation gives lawmakers on both sides of the aisle the answers they need to effectively engage on cannabis reform, safely and effectively regulate it, and remedy the harms caused by the failed war on cannabis.” 

“With those answers, Congress can develop a much-needed federal regulatory framework that not only respects the unique needs, rights, and laws of each state, but also ensures a responsible end to prohibition and a safer future for our communities,” he continued. “I was proud to lead the introduction of this commonsense bill in the House and thank Senator Hickenlooper for advancing it in the Senate.”

The bill directs the attorney general to establish a “Commission on the Federal Regulation of Cannabis” to advise on the development of a regulatory framework, which would be modeled after existing federal and state regulations for alcohol. The 24-member commission would consist of representatives from relevant government agencies and offices, individuals nominated by Senate and House leadership and individuals nominated by other government agencies.

The legislation requires the plan developed by the commission to account for the unique needs, rights and laws of each state, and directs the commission to present the plan to Congress within one year of enactment of the PREPARE Act. The commission would not have rulemaking authority. The panel’s only role would be to develop proposals and make policy recommendations.

The regulatory framework developed by the commission would be required to include “ways to remedy the disproportionate impact cannabis prohibition has had on minority, low-income and veteran communities; encourage research and training access by medical professionals; encourage economic opportunity for individuals and small businesses; and develop protections for the hemp industry,” according to Hickenlooper’s office.

Growing Support For Cannabis Policy Reform

Hickenlooper’s bill highlights the growing support for cannabis policy reform in the United States. In October, President Joseph Biden announced he would pardon all federal convictions for simple marijuana possession, and last week a new Pew Research poll found that 90% of Americans favor legalizing cannabis in some form.

“President Biden recently—and correctly—declared the federal government’s categorical criminal ban on cannabis a failure and urged executive leadership at the state and federal levels to take concrete steps to bring about rational reform,” Shane Pennington, an attorney with the cannabis and psychedelics law firm Vicente Sederberg LLP, wrote in an email to High Times. “The PREPARE Act seeks to ready the federal government for the far broader reforms, which are now imminent. Undoing decades of inane cannabis laws and regulations will require a coordinated and concerted effort at every level of government and among countless federal agencies. The PREPARE Act would lay the necessary groundwork to ensure that the federal government carries out legalization in a fair, efficient, and effective manner.”

Khadijah Tribble, the CEO of the trade group the US Cannabis Council, said the “Biden administration’s review of cannabis scheduling, midterm ballot measures, and polling on cannabis decriminalization all signal that the end of cannabis prohibition isn’t just inevitable — it’s imminent. The PREPARE Act would help ensure that the federal government has a plan in place to ensure a smooth and responsible transition to legal cannabis.” 

“We commend Sen. Hickenlooper and his counterparts in the House for the forethought and attention reflected in the PREPARE Act’s robust legislative framework, which wisely aims to also address the unjust consequences of the War on Drugs by developing recommendations on social equity and policies that create economic opportunity for minority entrepreneurs who want to operate in the legal marketplace,” she continued. “The US Cannabis Council will continue to work with Congress to help the nation get ready for the day legal cannabis is the law of the land.” 

The PREPARE ACT is supported by a range of stakeholders and cannabis policy reform advocates including the US Cannabis Council (USCC), the City of Denver, the National Hispanic Cannabis Council, Black Cannabis Equity Initiative, VS Strategies, Vicente Sederberg LLP, Metric, National Cannabis Industry Association, and Better Organizing to Win Legalization.

Source: https://hightimes.com/news/senator-files-bill-to-prep-for-federal-cannabis-legalization/

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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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