Tag: legalized marijuana

Managers Of New York Cannabis Social Equity Fund Earned $1.7 Million Despite Accusations Of Predatory Lending And Mission Failure

They haven’t come close to fulfilling Gov. Kathy Hochul’s (D) goal of helping 150 people victimized by the state’s old, racially biased drug laws enter the legal cannabis business—and some they have assisted fear their dispensary dreams are collapsing.

But the three managers of a public–private loan fund established to carry out the primary social mission of New York’s sweeping cannabis legalization program are doing just fine.

Records obtained by THE CITY show that they earned $1.7 million over the most recently tallied 12-month period and stand to make millions more in years to come, even though the New York Cannabis Social Equity Investment Fund has faced charges of predatory lending, secrecy and mission failure. By a conservative estimate computed by THE CITY, the managers’ longterm haul could easily come to $15 million over a decade.

The state selected the three managers, who operate under the almost identical name of Social Equity Impact Ventures, after a bidding process in June 2022: Bill Thompson, a former New York City comptroller and mayoral candidate; the former NBA star Chris Webber; and Lavetta Willis, a former sneaker entrepreneur based in Los Angeles.

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Federal Court Upholds Order Requiring Alaska Airlines To Rehire Worker Who Was Fired Over Positive Marijuana Test

A federal judge in Seattle has rejected an effort by Alaska Airlines to overturn an arbitration order reinstating the employment of an aircraft maintenance technician whom the company fired over a positive test for THC.

The worker insisted that he did not knowingly use cannabis and was unaware of how the drug entered his system, speculating he may have accidentally eaten an infused edible at a neighborhood block party.

The employee, Gregory Chappell, was given a random drug test in July 2022. The level of THC metabolites came back above a minimum threshold, and he was immediately fired given the safety-sensitive nature of his lead aircraft maintenance technician (AMT) role.

Chappell denied using marijuana and said it was possible he’d unwittingly consumed an edible at the neighborhood party, where none of the potluck foods were labeled. The airline did not investigate that claim, instead relying on the company’s policy against drug use by safety sensitive employees.

Chappell’s union challenged the firing, and in October of last year, an arbitration panel reversed his termination.

Alaska Airlines promptly filed a lawsuit in federal court seeking to undo the arbitration board’s decision, arguing that it was undisputed Chappell failed the marijuana test. The company said the employee’s claim “that he may have unknowingly and accidentally ingested a marijuana edible at a block party simply” amounted to “a fantastical story” and “bizarre speculation,” according to the arbitration panel’s account of the case.

But in a federal court order on Tuesday, U.S. District Judge John H. Chun rejected the company’s challenge, ruling that the arbitration board “did not exceed its jurisdiction” in ordering Chappell be rehired.

“To vacate an adjustment board’s award, a court must conclude that the board’s reasoning was ‘wholly without foundation in…fact,’” the court wrote.

“And insofar as Alaska Airlines contests the Board’s reinstatement of Chappell,” the decision continues, “Alaska Airlines cites no authority suggesting that the board’s remedy was unfair, much less warranting judicial intrusion in an area over which the Board has special expertise.”

The judge further awarded the union attorneys fees and costs for the case, though it remanded the matter to the arbitration board to determine how to handle backpay and benefits for the past year.

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Arizona Court Says Marijuana Users Must Actually Be Impaired To Be Punished For DUI

The state can’t suspend someone’s driver’s license because they have THC in their bloodstream unless they are actually impaired while behind the wheel, the Arizona Court of Appeals ruled, upholding a provision in a marijuana legalization law that voters passed in 2020.

Aaron Kirsten was pulled over for speeding in Sedona in October 2022, and the police officer saw that he had bloodshot eyes, slurred speech and was unsteady on his feet. Kirsten refused a field sobriety test, but when he did a breathalyzer test, he blew a 0.083, slightly above the legal limit, and he was arrested.

While in custody, Kirsten consented to a blood draw, but the Department of Public Safety’s analysis showed his blood alcohol content was just 0.063, less than the 0.08 maximum BAC allowed under state law.

But DPS also tested Kirsten’s blood for drugs and found he had tetrahydrocannabinol metabolites. As a result, the Arizona Department of Transportation suspended his license for 90 days, citing a state law that bars driving if THC metabolites are present.

At an administrative appeal, Kirsten testified that he hadn’t consumed THC in the 24 hours prior to his arrest, and any effects from the THC he had consumed had long ago passed. A family member who is a nurse and chiropractor also testified on Kirsten’s behalf, telling the administrative law judge that THC metabolites—the compounds that form as the body breaks down a substance—can stay in the blood for weeks after consumption.

But the administrative law judge said it was “irrelevant” whether Kirsten had smoked marijuana within 24 hours of his arrest and sided with ADOT, ruling that the agency didn’t need to prove he was impaired by THC to suspend his license for using it previously.

Kirsten appealed the ruling to the Maricopa County Superior Court, which upheld the administrative judge’s reasoning.

But the appellate court said both got it wrong and effectively ignored voter-created laws that bars the state from punishing drivers who have legally used marijuana products but are not impaired while driving.

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8 Years After Legalizing Pot, California Will Finally Allow Cannabis Cafés

When he endorsed marijuana legalization in Florida last August, Republican presidential nominee Donald Trump emphasized the importance of regulations to protect bystanders from exposure to pot smoke. “We need the State Legislature to responsibly create laws that prohibit the use of [cannabis] in public spaces,” Trump wrote on Truth Social, “so we do not smell marijuana everywhere we go, like we do in many of the Democrat run Cities.” Trump’s running mate, Sen. J.D. Vance (R–Ohio), has expressed similar concerns, saying “we haven’t quite figured out how this new regime coexists with not polluting our public spaces.”

Expanding the legal options for cannabis consumption outside the home, as California is finally doing eight years after legalizing recreational use, is one promising way to address such complaints. On Monday, Gov. Gavin Newsom, who last year vetoed a bill that would have authorized Amsterdam-style cannabis cafés in California, signed a revised version into law. Assembly Bill 1775 allows dispensaries, with local permission, to sell hot food and nonalcoholic beverages along with marijuana products. Such businesses will also be allowed to host “live musical or other performances,” as bars and restaurants that serve alcohol routinely do.

State law previously allowed on-site consumption at specially licensed pot shops, but their culinary options were limited to prepackaged snacks and drinks. California marijuana merchants hope the new dispensation will help them compete against unlicensed pot dealers who do not have to collect taxes or comply with burdensome state and local regulations. “Cannabis cafés are going to be a huge part of the future of cannabis in our state and help to beat back the illegal drug market,” said Assemblymember Matt Haney (D–San Francisco), the bill’s sponsor.

California’s new flexibility is an important step toward solving a puzzle that was typically overlooked in the early days of legalization: Once people could legally buy marijuana, where could they legally consume it? The main answer was at home, which was not practical for visitors from other states, might not be allowed in rentals, and precluded consumption in many social settings. That gap inspired creative solutions, such as members-only clubs and cannabis-friendly bus tours, that in turn inspired crackdowns by disapproving local authorities.

Since then, early legalizers such as Colorado and Alaska have been gradually coming around, amending their rules to allow cannabis consumption outside of private residences. Some states that legalized marijuana later, such as Massachusetts and Illinois, at least notionally allowed on-site consumption from the beginning. But regulatory approval of specific businesses has been slow, and the options in most places remain few and far between.

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Ohio Recreational Marijuana Sales Top $76 Million Within First Two Months Of Market Launch

Ohio recreational marijuana sales have surpassed $76.2 million in less than two months.

The state’s total recreational marijuana sales was $76,280,490 as of September 21, according to the Ohio Department of Commerce Division of Cannabis Control. Ohio has a 10 percent tax at the point of sales for every non-medical marijuana transaction.

Recreational marijuana sales started in Ohio on August 6 and sales topped $11.5 million in less than a week. Fifty-seven percent of Ohioans voted to legalize marijuana last November through the passage of Issue 2, which also legalized home grow for Ohioans 21 and older with a cap of six plants per person and 12 plants per residence.

There have been 8,813 pounds of plant materials sold and 1,187,395 units of manufactured products, according to the DCC.

There are 124 dual-use marijuana dispensaries in Ohio, meaning they can sell both medical and non-medical marijuana, according to the division. Columbus has 13 dual-use marijuana dispensaries, Cincinnati has 10, Dayton has six and Cleveland has five.

Ohio has more than 107 local moratoriums prohibiting adult-use cannabis business as of Monday, according to Ohio State University’s Moritz College of Law.

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California Governor Vetoes Bill To Let Marijuana Growers Sell Directly To Consumers At State-Run Farmers Markets

California Gov. Gavin Newsom (D) has vetoed a bill to allow small marijuana growers to sell their products directly to consumers at state-organized farmers markets.

Ahead of a Monday deadline to act on legislation, the governor blocked final approval of the measure from Assemblymember Gail Pellerin (D), saying that while he appreciates “the author’s intent to support small and equity cannabis cultivators,” he is “concerned that the bill’s broad eligibility, which extends to the vast majority of licensed cultivators, would undermine the existing retail licensing framework and place significant strain on the Department of Cannabis Control’s ability to regulate and enforce compliance.”

“I remain open to considering a more flexible and narrowly focused version of this bill next year that can better respond to market dynamics, without imposing a rigid monitoring and compliance framework,” Newsom wrote in a veto message. “Such policies must be considered within the broader context of efforts that are necessary to address the fundamental issues straining the legal cannabis market, such as competition from unregulated sources and improving access to regulated products.

“It is essential that we prioritize solutions that strengthen, rather than further burden, the existing regulated market,” he said.

While the governor supports cannabis legalization, he’s been notably reserved about various drug policy proposals in recent years, for example vetoing legislation to legalize psychedelics and allow safe consumption sites for illegal drugs.

Newsom has yet to act on a separate bill to legalize cannabis cafes from Assemblymember Matt Haney (D).

Newsom vetoed a prior version of Haney’s cannabis cafe bill, saying that while he appreciated that the intent was to “provide cannabis retailers with increased business opportunities and an avenue to attract new customers,” he felt “concerned this bill could undermine California’s long-standing smoke-free workplace protections.”

To that end, the measure as passed by the legislature contains changes to create separation between public consumption spaces and back rooms of businesses where food is prepared or stored in order to better protection the health of workers in line with the governor’s concerns.

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LAPD raid goes from bad to farce after gun allegedly sucked onto MRI machine

An officer with the Los Angeles Police Department found out the hard way that you can’t take metal near an MRI machine after their rifle flew out of their hands and became attached to the machine during a pot raid gone bad, according to a federal lawsuit filed last week.

The incident’s details were described in a lawsuit filed by the owners of a Los Angeles medical imaging center, who allege that their business was wrongly targeted by LAPD during a raid in October 2023 The lawsuit was first reported on by Law360.com.

The owners of NoHo Diagnostic Center are suing the LAPD, the city of Los Angeles and multiple police officers, alleging they violated the business owners’ constitutional rights and demanding an unspecified amount in damages. Officers allegedly raided the diagnostic center, located in the Van Nuys neighborhood of Los Angeles, thinking it was a front for an illegal cannabis cultivation facility, pointing to higher-than-usual energy use and the “distinct odor” of cannabis plants, according to the lawsuit. 

Officers raided the facility on Oct. 18, 2023, and detained the lone female employee while they searched the business, the lawsuit said. However, they didn’t find a single cannabis plant and only saw a typical medical facility with rooms used for conducting x-rays, ultrasounds, CT scans and MRIs, the owners said. 

The officers then released the employee and told her to call a manager, the lawsuit said, while they continued to wander around various rooms of the facility. The plaintiffs say the officers’ behavior was “nothing short of a disorganized circus, with no apparent rules, procedures, or even a hint of coordination.”

At one point, an officer walked into an MRI room, past a sign warning that metal was prohibited inside, with his rifle “dangling… in his right hand, with an unsecured strap,” the lawsuit said. The MRI machine’s magnetic force then allegedly sucked his rifle across the room, pinning it against the machine. MRI machines are tube-shaped scanners that use incredibly strong magnetic fields to create images of the brain, bones, joints and other internal organs.

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Illinois Supreme Court Says Police Can’t Use Smell Of Burnt Marijuana To Justify Vehicle Searches

The Illinois Supreme Court has ruled that the odor of burnt marijuana alone cannot be lawfully used by police as probable cause to conduct a warrantless vehicle search.

On Thursday, justices published an opinion in two consolidtated cases—People vs. Redmond and People vs. Molina—concerning law enforcement searching the cars of people after claiming they could smell burnt cannabis. Officers discovered small amounts of marijuana and charged the defendants for improper storage, as state law requires that cannabis being transported is kept in odor-proof containers.

After reviewing the cases, justices upheld lower court decisions to grant defendants’ motions to suppress the cannabis as evidence in the trial, affirming that “the odor of burnt cannabis, alone, is insufficient to provide probable cause for police officers to perform a warrantless search of a vehicle.”

The Supreme Court opinion was delivered by Justice P. Scott Neville, with five other justices concurring. The opinion pointed out that Illinois State Police Officer Hayden Combs “did not observe any signs of impairment or signs indicative of recent cannabis use” when he pulled over Ryan Redmond in 2020, and the officer later tried substantiating the search after learning that he was traveling from Des Moines to Chicago, which he claimed to be “hubs of criminal activity.”

Neville noted that “cannabis law has changed drastically over the last decade,” with Illinois enacting adult-use legalization in 2019. While the “appellate court has reached conflicting results in cases concerning the effect of legalization on probable cause for automobile searches,” the Supreme Court has now rendered a final verdict on the issue.

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The Only Legal Marijuana Store In North Carolina Is Thriving—And Represents A Win For Tribal Sovereignty, Leaders Say

More than a week after legal marijuana sales kicked off to all adults at The Great Smoky Cannabis Co., in Cherokee, North Carolina, thousands from across the region have now made purchases at what’s currently the only regulated cannabis retailer within hundreds of square miles.

Marijuana remains outlawed for all purposes in North Carolina, and none of the state’s neighbors—Georgia, Tennessee, South Carolina or Virginia—have legalized recreational sales. That puts Great Smoky, located on the 57,000-acre Qualla Boundary of the Eastern Band of Cherokee Indians (EBCI), in a unique and sometimes complicated situation.

Ahead of last year’s election in which the tribe legalized adult-use cannabis, for example, a U.S. congressman representing North Carolina introduced legislation that would have cut federal funding for tribes where marijuana is legal.

But since first opening to all adults 21 and older on September 10, the mood at Great Smoky has been celebratory. Tribal members—including Great Smoky’s general manager, Forrest Parker—and the thousands of non-members who’ve showed up in recent days are reveling in the significance of the moment.

Parker himself described the project as “the most inspiring thing I’ve ever been a part of.”

“We’re the first regulated cannabis in the Bible Belt—in this region,” he told Marijuana Moment in an interview last week. “When you go talk to some of these people, even if they’ve been waiting way longer than they expected, a lot of folks are showing up to just be part of history.”

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Thousands Flock To Tribal Marijuana Store In North Carolina, Where Cannabis Is Otherwise Illegal, For Launch Of Adult-Use Sales

More than 4,000 of people lined up at The Great Smoky Cannabis Co. this past weekend as the tribal marijuana retailer began the first-ever legal adult-use cannabis sales within North Carolina.

Michell Hicks, principal chief of the Eastern Band of Cherokee Indians (EBCI), which voted a year ago to legalize adult-use cannabis on its 57,000-acre Qualla Boundary, called the launch “a significant milestone for our tribe, marking a new chapter of opportunity and growth.”

“This initiative is our right as a Tribal government to assert our Sovereignty,” he wrote.

“I want to take a moment to personally acknowledge and thank everyone who has poured their hard work, time, and passion into making this day possible,” he said. “Your dedication has been instrumental in bringing this vision to life, and I’m confident that this is just the beginning.”

Sales began at 10 a.m. local time on Saturday, with any adult 21 and older eligible to buy marijuana products.

“It’s a special day for us,” Forrest Parker, general manager for Qualla Enterprises, which operates Great Smoky Cannabis Co., told the tribe’s newspaper, Cherokee One Feather. “It’s a special day for the Eastern Band of Cherokees, period.”

Videos posted to social media on opening day Saturday showed a long line of cars waiting to take advantage of the dispensary’s drive-thru.

“When you see the people in this line, it’s clear,” Parker said. “And it’s very validating, I think, to the plant and to the medicine that comes from the ground. Which, nobody understands that more than Indigenous people.”

Great Smoky Cannabis began selling medical marijuana on April 20 of this year. In July, the store began recreational sales, but only to members of EBCI and other federally recognized Indian tribes. Saturday marked the first time any adult 21 and older could purchase cannabis from the store.

Speaking to local reporters on Monday, Parker said the opening was “humbling” and that he expects even more activity as momentum builds.

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