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Will a Verified Emblem on the Door Help LA Crack Down on Illegal Cannabis Operators and Trap Shops?

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The emblem program will allow legal cananbis business to post a verified sign on their door.

In an attempt to protect marijuana users from unregulated and untested products at unlicensed cannabis dispensaries, a motion was approved by the Los Angeles City Council on the 7th of June 2022. The motion aims at establishing a county initiative that issues licensed cannabis businesses emblem placards to display.

Under the Emblem Program of the Los Angeles County for licensed cannabis businesses, cannabis stores and storefronts will be able to request an emblem. By so doing, they get to invite the agency for necessary inspection and if approved, they get to display the emblem on their business premises for everyone to see.

Councilman Paul Koretz, the man who co-introduced the initiative with Councilman Curren Price was very optimistic about the idea. According to him, the initiative provides a way forward in making it easier to distinguish between illegal and legal dispensaries.

However, he believes there’s more to the situation as conversations around the issues are primarily centered around dispensaries operating as illegal or unpermitted. Meanwhile, the bigger issue which is the safety and health impacts of illegal dispensaries on users is barely talked about.

Koretz further explained that unpermitted cannabis dispensaries often sell products that have been contaminated, tainted, and mislabeled. He added that this greatly undermines the legal structures put in place to make sure Angelenos are protected from dangerous cannabis products when they visit a dispensary.

The initiative has granted the Attorney of Los Angeles City to outline an ordinance that would implement the program across the city. Koretz clarified that the motion was brought forward in May and if the ordinance is sanctioned, the program should get to launch before the year ends. 

According to Price, setting up an emblem program will offer buyers the opportunity to make a conscious decision about their dispensary of choice, and to spend their money. He added that the program will offer a level of comfort to patrons that they shop at a dispensary that is properly inspected and regulated by the state. When the motion was introduced in May, Price earlier noted that the initiative will help notify buyers of safe dispensary locations to get their cannabis.

The Director of the Public Health Department in Los Angeles, Barbara Ferrer applauded both council members for introducing the initiative and having the state in the program.  Ferrer strongly believes that the initiative would make sure the safety of both cannabis consumers and employees is guaranteed. The initiative authorizes Public Health officials to carry out inspections on dispensary locations and make sure they comply with related public health regulations and statuses.

The acting director of the Cannabis Regulation Department in Los Angeles, Michelle Garakian was also eager to work on the program. He affirmed that the DCR is ready to educate, facilitate and verify that licensed dispensaries in the state meet all the prerequisites of public health standards. He believes this will help patrons make healthy and informed decisions regarding where to shop. 

According to Garakian, the partnership between DCR and the Department of Public Health in Los Angeles is a welcomed development. He believes that both departments will together work towards achieving the goal of protecting the health of employees, consumers, and the overall community.

Comcerns on Public Health and Safety

The California Department of Public Health on the 12th of November, 2019 recorded more than 150 cases of vaping-related pulmonary injury in California. To this end, the CDPH surveyed 86 respondents. Among the respondents interviewed, 83% (71) claimed to consume vaping products infused with THC.

Out of the 71 respondents that claimed to use vaping products infused with THC, only one confirmed buying THC from a licensed dispensary.  The remaining 70 respondents confirmed buying vaping products from unlicensed dispensaries.

According to several sources, these illegal dispensaries are fond of cutting corners, mixing various agents with their oils, which when vaporized can cause severe lung complications.

A clear verdict from these studies is that there’s a greater threat to public health from the use of cannabis-related products obtained from illegal or unlicensed dispensaries.

The QR code Initiative

The emblem initiative won’t be the only regulation towards curbing sales of unlicensed cannabis in L.A. County. The emblem program will work in confluence with the QR code initiative that was enacted across California in early 2020.

Referring to the vaping crisis of 2019, cannabis regulators in California compelled every licensed cannabis distributor and retailer to display a QR code. This is to make sure that patrons can identify legal cannabis products from unlicensed ones.

This regulation came into effect after the Office of Administrative Law sanctioned the initiative making QR codes one of the vast nationwide efforts to curb illicit cannabis dispensaries. Other efforts such as raids, arrests, lawsuits, and asset seizures have also been ongoing within the state.

According to the Bureau of Cannabis Control in California, the QR code initiative will help patrons recognize licensed cannabis dispensaries. Not just that, citizens will also be able to help law enforcement agents during investigations once they can identify illegal dispensaries. Through this, the legal cannabis market will boom, facilitating an influx of safe cannabis products into the market, and ensuring public health and safety.

The QR code initiative was compelled given the vaping crisis of 2019 which saw 60 people die fromvape-related lung diseases and  more than 2,500 hospitalized statewide.

All retailers and distributors are mandated to display their distinct WR codes to the public. The code itself is small having a size of 3.75 inches x 3.75 inches. Employees, retailers, and distributed are also compelled to hold a copy of their QR code when distributing or transporting their products.

Conclusion

The state of California enacted its regulations for adult-use cannabis sales in 2018 and then went kn to establish the biggest legal cannabis market in the United States. However, legal cannabis businesses have continuously struggled due to competition from the illegal cannabis market.

While the illegal cannabis market steals patrons away, they also threaten public health and safety due to tainted and contaminated cannabis products many of them produce. If the L A county can successfully differentiate these markets through the emblem initiative and use of QR codes, public health safety will be guaranteed and the legal cannabis market will witness more growth.

Source: https://cannabis.net/blog/locations/will-a-verified-emblem-on-the-door-help-la-crack-down-on-illegal-cannabis-operators-and-trap-sh

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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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