MJBiz - November/December 2023 - 61

If rescheduling happens, " then
immediately there's a lot of positive
sentiment toward pushing for
interstate commerce, " Ning said.
California, Oregon and Washington
all have passed interstate commerce
laws that permit licensed cannabis
businesses to transport THC
products across state lines and into
other regulated markets-but only
if the federal government legalizes
marijuana or its interstate commerce.
Potential rescheduling " at the very
least pokes the federal government to
consider whether they will allow or
regulate interstate commerce, " Ning
said. He added that he believes the
federal government wouldn't interfere
with marijuana interstate commerce if
it complied with state rules.
" If the federal government doesn't
say anything, then the states can
technically cooperate on an interstate
level, " Ning said.
But Ning also warned, given that so
many cannabis markets have a glut of
product, marijuana legally imported
from other states could exacerbate
the difficult business climate in
oversaturated markets if interstate
commerce isn't done correctly.
" A lot of states probably are plenty
fearful that California products
flooding into their market will
immediately plunge the prices of
goods, which would actually hurt the
domestic market within a particular
state, " Ning said. In those situations,
he added, states concerned about
tumbling prices would probably
seek to impose import and export
tariffs-as well as interstate commerce
taxes-to shield their local cannabis
industries.
Ning noted that such policies are
not so unusual because states have
their own alcohol-distribution laws
that companies must comply with.
" Every state has its own tax laws if
you transport liquor. If you wanted
to transport alcohol across state
lines, you have to go through specific
To move cannabis between stores in the Hawaiian Islands, Big Island Grown has to cross
federal waters. Photo courtesy of Big Island Grown
Jaclyn
Moore
distributors. Different states have
different taxes, require different sets
of paperwork. So, you have to abide
by the compliance within each state.
It's a lot of overhead. But I think that
cannabis is probably headed in that
direction, just given how the market
has evolved thus far. "
Hawaii also is testing federal
marijuana enforcement waters. In
June, Hawaii legislators passed House
Bill 1082, a piece of legislation that
permits state-licensed companies to
sell wholesale marijuana to cannabis
businesses, including those located on
other islands. Those rules went into
effect Aug. 7. That's important because
traveling from one island to another
requires crossing federal waters.
Big Island Grown, headquartered
in Hilo, Hawaii, completed its first
inter-island transport to Green Aloha
dispensaries on Kauai on Sept. 1.
Jaclyn Moore, CEO of Big Island
Grown, noted that the Hawaii
legislation cautions cannabis
businesses that state law does
not negate federal marijuana
prohibitions.
" It's still very much at your own risk,
even though it was passed into law, "
Moore said.
Does Moore have peace of mind that
the feds won't somehow interfere with
interisland marijuana shipments?
" Who knows what the feds are going
to choose to do or not do? The best
way to operate is to be as compliant
as possible, go above and beyond
compliance requirements, " she said.
" Because regulators know that there is
also a problem with the illicit market,
and if the feds are going to exercise
their enforcement powers, the greater
need for enforcement is with the illicit
market, not with super-compliant
state businesses. "
mjbizdaily.com | November-December 2023 61
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MJBiz - November/December 2023

Table of Contents for the Digital Edition of MJBiz - November/December 2023

MJBiz - November/December 2023 - CT1
MJBiz - November/December 2023 - CT2
MJBiz - November/December 2023 - Cover1
MJBiz - November/December 2023 - Cover2
MJBiz - November/December 2023 - 3
MJBiz - November/December 2023 - 4
MJBiz - November/December 2023 - 5
MJBiz - November/December 2023 - 6
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