Tuesday, January 31, 2023

A Rhode Island Grower Won A Cannabis Competition — The State Fined It $10,000

The enforcement serves as a cautionary tale for businesses looking to subvert the still-current federal prohibition of transporting cannabis product across state lines.

By Adam Jackson

As Rhode Island commenced adult-use sales last week, growers will look to compete against those vying for cultivation notoriety. However, one operator’s experience serves as a reminder for those operating in the nascent market.

The state told Rhode Island-based cultivator Mammoth Inc. that it has to cough up $10,000 after the grower took home the top prize in March for a THC flower strain at the New England Cannabis Convention (NECANN).

cannabis bud
Photo by Tetra Images/Getty Images

The issue? The competition took place at the Hynes Convention Center in Boston — across the state border. The state’s Office of Cannabis Regulation eventually caught wind of the development after the company posted the win on its Instagram page.

The fine was to be paid in four installments over a nine-month period, with the second payment due at the end of this month.

The enforcement serves as a cautionary tale for businesses looking to subvert the still-current federal prohibition of transporting cannabis product across state lines.

RELATED: International Cannabis Reform Ramps Up In Europe, South America

In a September document, regulators stated that Mammoth transported 28 one-gram samples across state lines to be entered into the competition nearly a month prior.

The company’s attorney, Lisa Holley, told NBC 10 WJAR that the company had a booth at the convention but did not sign up for the competition itself, contending that there is no evidence that points to Mammoth as the party that transported the product to Massachusetts.

RELATED: Bill Would Make Cannabis Companies Eligible For SBA Loans

“They accepted it. That’s what they did wrong,” Holley told the outlet, adding that Mammoth believes someone entered its cannabis in the competition because they liked the product.

This article originally appeared on Green Market Report and has been reposted with permission.

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