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Nevada Medical Pot Patients Can Sue Former Employer If Fired, Court Rules

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A landmark court decision empowers Nevada medical cannabis patients.

If you’re a medical cannabis patient in Nevada, smoke up: medical cannabis patients in the state were recently empowered to consume cannabis on their own time after a landmark decision in court.

On December 1, the Nevada Supreme Court ruled that employees in the state have the right to sue their former employees if they were terminated for consuming cannabis off the clock. Keep in mind, however, that adult-use cannabis consumers in the state aren’t exactly provided the same protections.

The ruling dates back three years, when Jim Roushkolb filed the lawsuit in the Eighth District Court in November 2019.

“It relaxes me,” Roushkolb told FOX affiliate KTNV, who suffers from PTSD and numerous other conditions. In 1995, Roushkolb was severely attacked when a former inmate assaulted him in his car as a corrections officer in Ohio.

“He opened the door, and he grabbed me, and he just hit me in the head with a pipe,” he said, “and just started beating me in the head, and he took his thumb and jammed it in my eye like that and tore my retina.”

Roushkolb used cannabis to ease PTSD symptoms and anxiety, but then in 2018, his employer, Freeman Expositions LLC, fired him on the spot after he tested positive for THC, which he was taking legally as a medical cannabis patient in Nevada.

His attorney Christian Gabroy immediately recognized a clear-cut case. 

“The company acted discriminatory, this company violated his rights, and this multi-jurisdictional, multi-million dollar company, they terminated him in violation of Nevada law,” Gabroy said.

Not the Same For Adult-Use in Nevada

Recreational cannabis smokers in Nevada might not get the same outcome in court. NORML pointed out last September that recreational cannabis consumers and patients are subject to a different set of parameters.

Nevada law limits employers from punishing workers who are enrolled in the state’s medical cannabis access program. Furthermore, a 2019 law makes it “unlawful for any employer in [Nevada] to fail or refuse to hire a prospective employee because the prospective employee submitted to a screening test and the results of the screening test indicate the presence of marijuana.” 

But good luck fighting it in court if you’re fired for a drug test. As it turns out—there’s plenty of legal precedent on the matter: Just last August, the Nevada Supreme Court denied a similar lawsuit for an employee fired for testing positive for THC.

The Nevada Supreme Court upheld a lower court’s decision to dismiss a complaint by an employee who was fired for testing positive for THC for a routine test after getting in an accident.  

In the case of Ceballos v. NP Palace, LLC, the employee said that the positive THC result was due to his use of recreational cannabis at home, and that he was not intoxicated or impaired at work, complying with state law. 

Nevada law under NRS 613.333(1) makes it unlawful for employers to “[d]ischarge . . . any employee . . . because the employee engage[d] in the lawful use in this state of any product outside the premises of the employer during the employee’s nonworking hours” so long as “that use does not adversely affect the employee’s ability to perform his or her job or the safety of other employees.”

However, Nevada judges ruled that federal law—and the federal status of cannabis—also applies in that clause, and the plaintiff’s complaint was denied. A similar decision was reached by the Colorado Supreme Court in 2015. Using this logic, however, medical cannabis would also be illegal under federal law.

Source: https://hightimes.com/news/nevada-medical-pot-patients-can-sue-former-employer-if-fired-court-rules/

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New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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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:

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/

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Marijuana companies suing US attorney general in federal prohibition challenge

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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.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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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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