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Ship Cannabis Across State Lines and Brag About It Online? – Licensed Vermont Grower Gets $20,000 Fine for Illegal Shipments

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Word to the wise, if you ship cannabis across a state line and brag about it online, prepare for the consequences?

Devon Deyhle, the proud owner of Tall Truck, a small-scale cannabis growing operation based in the small town of Peachham, made a costly mistake when he decided to promote his business on social media. The ambitious grower, who cultivates his plants indoors in a Tier 1 facility spanning less than 1,000 square feet, posted a video on Instagram showcasing his bountiful yield of high-quality cannabis.

Little did Devon know that this seemingly harmless promotional video would prove a costly mistake. The local authorities, who had long been keeping a close eye on the cannabis industry in the area, were alerted to Devon’s video and promptly launched an investigation.

Despite his initial excitement over the promotional video he had recorded, Devon Deyhle was ultimately forced to admit that the consequences of his actions far outweighed any benefits he may have gained. “It was a great, great video, but it wasn’t worth it,” he lamented, recognizing the gravity of his mistake.

In the unfortunate video, which was recorded in early December and has since been taken down, Deyhle can get out of his vehicle and enter a storefront in the heart of Manhattan. The problem? The store was not licensed to sell adult recreational retail cannabis, a fact that Deyhle was unaware of at the time.

As it turns out, the storefront was little more than a makeshift cannabis dispensary, complete with a smoking lounge out back. While this may have seemed like an excellent opportunity to showcase his cannabis products, Deyhle failed to consider the legal implications of his actions.

At the time when Devon Deyhle recorded his promotional video, the sale of recreational cannabis was still illegal in the state of New York. This meant that the storefront he entered to promote his products was operating without a license and outside the boundaries of the law.

It wasn’t until late December, after Deyhle had posted the video that the first licensed adult cannabis retail establishment opened in New York. This new development made it clear that the rules around cannabis sales and distribution were changing rapidly, and those who failed to keep up with these changes risked severe consequences.

In the video, Deyhle can be seen confidently touting his “little tasty treat from Vermont” as he hands over a green and yellow box of cannabis products emblazoned with the logo of his business, Tall Truck. The unsuspecting women behind the counter appear unaware of the legal implications of accepting the products, and Deyhle fails to disclose that the store is operating without a license.

Consequences of Deyhle’s Action

In a notice issued by the Vermont Cannabis Control Board, it has been stated that Deyhle was caught red-handed delivering cannabis to the Tall Truck business via video evidence available on Instagram. The notice has cited Deyhle for contributing to the illicit market in New York City by transporting cannabis illegally.

According to Deyhle, possibly opening up the market in New York City for Tall Truck was more of a publicity stunt. “I suppose I went too far in testing the waters,” he added. Unfortunately, someone reported the video to the Vermont Cannabis Control Board, and as a result, Deyhle had to pay a hefty fine of $20,000 for illegally transporting cannabis outside of Vermont. “This is a huge blow for someone like me,” he lamented.

Apart from the monetary penalty, the board had initially imposed a 60-day suspension of Deyhle’s license. Furthermore, he was slapped with an additional fine of $10,000 for reportedly providing false information to the board, explicitly denying the intention of selling cannabis outside of Vermont. On top of that, Deyhle was handed another $10,000 fine for supposedly diverting Vermont cannabis to the illegal market in New York.

However, as long as Deyhle adheres to Vermont’s cannabis regulations for the next two years, the board has decided to suspend the additional penalties. Deyhle has a philosophical approach toward the incident, stating that he is responsible for his actions and must bear the consequences of his mistakes.

Recreational Cannabis in Vermont

Vermont legalized cannabis in 2018 through the passage of H.511, a revised version of a prior bill, which ultimately became known as Act 86. This law allowed individuals aged 21 and above to possess up to an ounce of cannabis and two mature and four immature marijuana plants. However, public use of cannabis is still prohibited and restricted to areas where smoking tobacco is permitted.

Even though Vermont legalized the possession of small quantities of cannabis in 2018, recreational cannabis sales didn’t begin until 2022. cannot currently purchase cannabis products from dispensaries. In the first three months of cannabis recreational sales in Vermont, about 25 cannabis businesses got licensed and immediately began operating.

Vermont Medical Cannabis Laws

Vermont has been legally allowing the use of medical marijuana since 2004. However, patients could not access Vermont dispensaries until 2013, despite the legalization of medical marijuana.

Rather than legalizing dispensaries, SB 76 enabled qualified patients to possess up to two ounces of cannabis or cultivate one mature and two immature plants. Patients with conditions such as cancer, glaucoma, multiple sclerosis, HIV or AIDS, or other life-threatening or debilitating conditions were eligible for this program.

The medical marijuana laws in Vermont have undergone significant changes since the introduction of SB 76. Currently, patients can grow up to nine plants but only two mature plants at a time. The list of qualifying conditions has also expanded to include Parkinson’s disease, Crohn’s disease, and PTSD. In addition, patients can purchase cannabis from one of the five operational dispensaries serving patients in Vermont.

Conclusion

Devon Deyhle’s ill-fated attempt at promoting his cannabis products on social media is a cautionary tale for anyone in the cannabis industry. His failure to adhere to the rapidly changing rules and regulations around cannabis production and distribution had severe consequences, underscoring the importance of staying informed and compliant in this ever-evolving industry.

As the legal landscape around cannabis continues to shift, growers and distributors must stay up-to-date on the latest guidelines and best practices to avoid the costly mistakes that Deyhle made.

Source: https://cannabis.net/blog/news/ship-cannabis-across-state-lines-and-brag-about-it-online-licensed-vermont-grower-gets-20000-fi

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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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