Latest / NRBC Compliance Brief / Vol. 1, Ed. 44 — Sat Sep 26: Montana ties cannabis licenses to resident control
Transcript
- This is the New Realm Compliance Brief, Volume One, Edition Forty-Four, for Saturday, September Twenty-Six. Our top story: Montana's Department of Revenue has adopted a rule, effective today, that ties every cannabis license in the state to resident operational control. Licensees across cultivation, manufacturing, testing, transport and retail must identify each person with day-to-day operational control of the business and prove those individuals are Montana residents. The department pointed to a Ninth Circuit decision holding that dormant Commerce Clause protections do not apply to state cannabis licensing while cannabis remains federally scheduled, and said state law has always contained a residency requirement. Industry consultant Pepper Petersen said the rule violates the Commerce Clause and burdens small operators. Any operator with out-of-state managers in Montana should document resident control now, since the rule applies to applications and renewals starting today. Around the states: Arizona Attorney General Kris Mayes has sued Botanic Tonics, maker of the Feel Free kratom and kava shots, in what her office called a first-in-the-nation consumer protection case. The state alleges the two-ounce shots were marketed as energy drinks and wellness products while concealing their kratom content and its addiction risks. Mayes said the company repeatedly and willfully violated the Arizona Consumer Fraud Act. In Pennsylvania, a Senate committee held a hearing Friday in Philadelphia on adult-use cannabis legalization, with two bills pending: one creating a Cannabis Control Board, and a broader legalization measure now on the Senate calendar. On the radar: the United States import ban on most Canadian packaged alcohol takes effect Tuesday, September Twenty-Nine, at one minute past midnight Eastern. Virginia's preliminary feedback window on its draft adult-use retail rules is expected in late October. Missouri's hemp T-H-C restrictions take effect November Twelve, and the federal hemp redefinition takes effect December Eleven. Full details and source links are in today's email. This update is for general information only — it is not legal advice.