Business
California Task Force Recommends Apology, Drug War Reparations for Black Americans
A California task force voted on Saturday to officially recommend a series of proposals to compensate and apologize to Black residents for generations of harm caused by discriminatory policy and the War on Drugs.
The nine-member committee first convened almost two years ago and gave their final approval to a lengthy list of proposals in Oakland, California over the weekend, which will now head to the governor and legislature to consider.
The draft final report notes that federal and state governments have long targeted Black people with “discriminatory arrest and incarceration,” and the scope of this unjust policing was only exacerbated when the War on Drugs began in 1971 under the Nixon Administration.
“Reparations are not only morally justifiable, but they have the potential to address long standing racial disparities and inequalities,” said U.S. Rep. Barbara Lee, D-Oakland, at the meeting.
The first vote approved a detailed account of historical discrimination against Black Californians, specially examining areas like voting, housing, education, disproportionate policing and incarceration, among other topics.
In addition to reparation recommendations, the task force also approved a public apology that acknowledges the state’s responsibility for past wrongs and promises the state will not repeat them. The apology would be issued in the presence of people with ancestors who were enslaved.
“An apology and an admission of wrongdoing just by itself is not going to be satisfactory,” said Chris Lodgson, a Coalition for a Just and Equitable California organizer.
Members quantified the impact of racially discriminatory enforcement and incarceration over drugs by incorporating analysis on the cost of time spent in prison with other collateral consequences relating to drug convictions. They assessed racial discrimination based on comparisons of average arrest rates, convictions and sentencing between Black and white people who engaged in drug-related activity at comparable rates who experienced disparate consequences in the criminal legal system.
The task force “recommends that compensation for community harms be provided as uniform payments based on an eligible recipient’s duration of residence in California during the defined period of harm (e.g., residence in an over-policed community during the ‘War on Drugs’ from 1971 to 2020),” according to the report.
Members also recommended that the Legislature enact an “individual claims process” to compensate people who can prove “particular injuries,” like an individual who was arrested or incarcerated for a drug charge in the past, especially if the drug is now considered legal, as cannabis is in many states.
The panel specifically concluded that the legislature should pay an estimated 1,976,911 Black Californians $115,260 in 2020 dollars, reflecting a total of $2,352 per person for “each year of residency in California during the 49-year period between 1971 and 2020,” or a total of $227,858,891.023 in reparations for all affected, according to Marijuana Moment.
“To measure racial mass incarceration disparities in the 49 years of the war on drugs from 1971 to 2020, the Task Force’s experts estimated the disproportionate years spent behind bars for African American non-Hispanic Californian drug offenders compared to white non-Hispanic drug offenders,” the report states. “Since these disparities are measurable in years, the experts attached a monetary value to these disproportionate years spent in prison by calculating what an average California State employee would have earned in a year.”
The report notes that the drug war resulted in “massively disproportionate incarceration of African Americans,” additionally contributing to unemployment and homelessness in economically depressed African American communities once incarcerated individuals were released. The panel is also proposing additional compensation for health disparities and housing discrimination.
It also points out the sentencing disparities between crack and powder cocaine enacted by Congress during the Reagan administration, specifically citing it as one example of drug policy being authored in a way that disproportionately impacted Black communities.
Additionally, the task force made recommendations to reinstate affirmative action, abolish the death penalty, restore voting rights for formerly and currently incarcerated people, provide free college tuition to those who qualify for reparations under the proposal, eliminate cash bail and provide universal single-payer healthcare, among others.
Members will convene once more on June 29 before submitting the final report to the legislature.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
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:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
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/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
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.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
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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