LOCAL NEWS

EX MAYOR GUILTY OF TAKING POT BUSINESS BRIBES

Aformer mayor of Fall River, Massachusetts has been found guilty of extortion related to bribes he accepted from marijuana business hopefuls, among other crimes. Jasiel Correia, who became the youngest ever mayor of Fall River when he was elected at the age of 23, had been accused of taking $600,000 in bribes. In return, Correia, now 29, provided non-opposition letters to people attempting to open legal Cannabis businesses in the city. The letters are an essential step in the process of obtaining a license to operate a marijuana-related business under Massachusetts state law.

While prosecutors argued that Correia cravenly took advantage of his position to extort money from would-be Cannabis businessmen – sometimes collecting bribes personally in a city-issued vehicle – some industry watchers criticized the outsized influence granted to local officials by the state’s legal marijuana law.

Under Massachusetts law, a Cannabis business must sign a “host community agreement” with the local government of the city in which it hopes to operate. These agreements must be completed before the business can apply for a license from the state. This unusual provision – unique to the Cannabis and gaming industries – gives local elected officials the power to block or fasttrack would-be pot businesses. And while this dynamic may not often lead to extortion per se, advocates are concerned with the legal demands officials make of applicants, including donating to local charities, pledging their employees’ time to municipal functions and other “good faith” payments.

Such requests are generally not made of applicants seeking to open businesses outside of the marijuana industry. One Cannabis business advocacy group claimed that “legalized extortion is the norm,” when it comes to securing

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a pot-related operating license in Massachusetts.

In addition to the pay for play bribes he took from pot businesses, Correia was also charged with misusing investor funds from his smartphone app SnoOwl. He was found guilty on 21 of 24 counts of fraud, extortion and conspiracy. The jury returned its verdict after less than 24 hours of deliberation. The disgraced ex-mayor faces 20-year prison terms for both the wire fraud and extortion charges. His sentencing hearing will take place September 20.

MAINE CONSIDERS PSYCHEDELIC THERAPY

new measure introduced in Maine would make the therapeutic use of psilocybin legal for adults 21 and older. The bill, introduced by Sen. Donna Bailey, would establish licensed psilocybin producers A and retailers. While it would be legal for adults to purchase psilocybin products, consumption would have to take place under the supervision of “service facilitators.”

Psilocybin is of course the psychoactive compound in magic mushrooms. Research supporting the drug’s ability to help treat mental health disorders like anxiety, depression and PTSD has led to a renewed interest in psilocybin therapy, as well as legalization or decriminalization efforts at the state and local level.

On Election Day 2020, Oregon voters became the first in the country to legalize psilocybin for therapeutic use. Lawmakers across the nation took notice. Since Oregon’s historic vote, psilocybin bills have been introduced in Hawaii, Florida and Connecticut. Additionally, several Massachusetts cities have since approved psychedelic reform initiatives.

Maine’s psilocybin bill is modeled on the Oregon law and even includes instructions to regulators “to otherwise make this Act as consistent as possible in substance to the laws governing psilocybin in Oregon.”

The Maine measure relies on the state’s Health and Human Services department to create the therapeutic rules, establish possession limits and set licensing requirements. A psilocybin advisory board would also make recommendations to regulators. The bill does not require a diagnosis for those seeking psilocybin treatment.

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MASS CITIES SQUEEZE POT BUSINESSES FOR MILLIONS

The practice of collecting fees from marijuana business applicants in Massachusetts through host community agreements (HCAs) was the subject of a committee hearing in early May.

Business owners and advocates testified before the Joint Committee on Cannabis Policy calling for oversight on the agreements that they say favor local governments and take advantage of marijuana businesses.

The state law allows municipalities to impose an “impact fee” on Cannabis businesses to address the effect the business might have on the community, such as traffic or public safety. However, industry advocates claim that most local governments demand the maximum fee – three percent of the business’ gross sales – without having to demonstrate that the business warrants such a charge or account for what the city does with the money. And some jurisdictions demand more than the three percent allowed by law.

During the committee hearing, business owners and advocates asked that municipalities be made to prove the costs that they claim pot shops are responsible for through increased traffic, parking and policing, and called for the Cannabis Control Commission – the state’s marijuana regulatory agency – to have oversight of host community agreements.

In addition to impact fees, some local governments demand other payments from Cannabis business hopefuls, including donations and reimbursements.

According to a new study, local governments in Massachusetts have collected nearly $2.5 million more than allowed by law through host community agreements.

The study, conducted by the University of Massachusetts in Boston, highlights the need for legislation that establishes standards and oversight to avoid corruption.

The committee hearing took place as former Fall River mayor Jasiel Correia stood trial for extorting money from would-be pot businesses. However, the UMass study makes it clear that the system encourages local governments to squeeze cash out of pot businesses.

In 2019, a Massachusetts law firm found that nearly four out of five host community agreements were illegal. That same year the FBI began looking into corruption in the Massachusetts pot industry.

Currently, nine separate bills take up the issue of host community agreements. All nine received a committee hearing. Hopefully one of them can end the insidious pay for play model established by the state’s marijuana law.

New York will collect $245 million a year in legal marijuana revenue, according to an analysis of the budget by the state comptroller. The Cannabis cash comes from taxes on retail sales through New York’s new adult-use marijuana law.

The comptroller’s analysis projects steady growth in Cannabis tax revenue, beginning with $20 million in fiscal year 2021-2022, then climbing to $115 million in 2022-2023, $158 million in 2023-2024 and finally hitting $245 million when the program is fully implemented in fiscal year 2024-2025.

While possession of up to three ounces of Cannabis is now legal in New York, sales of recreational pot aren’t expected to begin until 2022, which accounts for the estimate’s slow start.

And while Gov. Andrew Cuomo initially claimed that New York’s legal pot program would ultimately pull in $300 million a year in tax revenue, the comptroller’s estimate will still be welcome news to the cash strapped state.

After covering operational costs, 40 percent of the Cannabis cash will go to schools, while another 40 percent goes to communities most impacted by prohibition. The remaining 20 percent of tax revenue funds drug treatment and education.

Negotiations between lawmakers and Cuomo on the final adult-use bill helped establish a stronger social equity plan for the state, both in the form of reinvestment and industry opportunity.

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NEW YORK’S MARIJUANA MILLIONS

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>> Continued from pg. 13 New Jersey Towns Ignore Voters, Look to Ban Pot Support for taxed and regulated marijuana was strong across different age groups, political affiliations and races. Pot was popular in urban and rural areas. The message was clear: New Jersey was all in on Cannabis. And yet, just six months after the election and three months since Gov. Phil Murphy (finally) signed legislation legalizing marijuana and establishing the state’s legal framework, town after town in New Jersey is looking to opt out of the Cannabis industry. While some elected officials have cited fears of exposing children to marijuana retail or becoming known as a Cannabis hot spot as reasons for opting out, it really shouldn’t matter as New Jersey residents made it crystal clear how they felt about the marijuana industry last November. Despite this, city councils and committees across the state are ignoring the will of the voters and making the decision to ban Cannabis, eschewing much needed tax revenue from pot sales in the process. A report by nj.com found that more than 70 towns had pot business bans in place before Murphy even signed the legalization bill into law. New Jersey’s marijuana law allows towns to opt out of the recreational industry, banning dispensaries, grow facilities and manufacturing. However, any ban put in place by a city prior to the legalization law taking effect is meaningless. Jurisdictions have 180 days from the date the bill was signed by the governor Photo by Cambridge Jenkins IV to craft and pass an ordinance banning Cannabis. If it passed a ban before I n the lead up to Election Day 2020, polling indicated that New Jersey residents supported marijuana legalization at near historic levels. And when voters had the opportunity to approve a legal pot industry in the legalization, it has to start all over again. If a town does not have a ban in place by the deadline, August 21, 2021, it will be governed by the state’s marijuana law for a period of five years. After five years, the jurisdiction will have another opportunity to ban the Cannabis industry. Garden State, they were emphatic. Legalization passed with an astounding 67 While municipalities are allowed to opt out of the pot industry, possession is percent of the vote in New Jersey. Post-election analysis revealed that pot was still legal and local governments cannot prevent delivery services from bringing approved in 562 of the state’s 565 municipalities. marijuana orders to residents in their jurisdiction.

COURT: COMPANY MUST PAY FOR WORKER’S MEDICAL POT

The New Jersey Supreme Court provided yet another example of society’s growing acceptance of marijuana when it ruled that an employer must pay for an injured worker’s medical Cannabis. The state’s high court upheld an earlier ruling by the Appellate Court in a decision that could have a significant impact on medical Cannabis cases.

Vincent Hager was seriously injured when cement fell on him while he was working for a construction company in 2001. The accident caused Hager chronic pain in his back and legs that led to multiple surgeries. Hager began taking opioids for the pain and became addicted to pills, until a doctor recommended medical Cannabis in 2016.

Cannabis eased Hager’s pain and got him off of painkillers. So it only seemed right that his former employer pick up the tab for this highly effective medicine.

However the employer, M&K Construction, disagreed and appealed the workers’ compensation decision. The company opposed paying for a drug that is illegal at the federal level.

Fortunately, the court stepped in and explained that M&K would not be breaking the law, nor would it be in possession of Cannabis. Instead, the company would be reimbursing an injured worker for the cost of his medication, as compelled by a court.

In early 2020, when the case was before the Appellate Division, Hager’s medical marijuana costs were approximately $616 a month.

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CHURCH LEADERS

OPPOSE LEGALIZATION

s Connecticut attempts to join the ranks of legal Cannabis states and lawmakers work to amend Gov. Ned Lamont’s adult-use bill to include stronger social equity programs, clergy members are making their voices A heard. Their message? Just say no.

Just as legalization was on a positive track in Connecticut and lawmakers expressed optimism that a bill would advance, a number of prominent religious leaders have asked the governor and legislators to abandon all dope.

Seven Christian clergy members and an Islamic leader held a press conference to express their opposition to legalization.

Archbishop Leonard Blair claimed that ending prohibition “does nothing … to benefit the common good of our state and its people. In the pursuit of money, the well-being of our neighbors has been discounted.”

One could argue that simply ending arrests for Cannabis would “benefit the common good” – as the criminal justice system tends to leave significant psychological scars and criminal records make it difficult to find employment, housing and other benefits.

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Legal Pot Definitely Maybe in Rhode Island

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But beyond that, a good adult-use Cannabis bill would encourage entry to a lucrative industry for equity applicants, it would expunge criminal records for past marijuana offenses and reinvest money in communities that have suffered greatly under the war on marijuana. Not to mention the job creation and revitalization that come along with legal Cannabis businesses.

Rev. Theodore Brooks of the Pentecostal Assemblies of the World was thinking of the children. “In Black and brown communities, we are going to have legalized pot stores open up and our children are going to be affected by this. We cannot allow this to happen,’’ Brooks noted. “This notion of legalized pot, it doesn’t make sense.”

While Rep. Josh Elliott, a sponsor of the adult-use bill, explained that municipalities would have the final say over whether a pot shop opened in their jurisdiction, it did little to win over the assembled clergy.

One can only hope that when Connecticut moves forward and enacts meaningful marijuana-law reform, the clergy members turn the other cheek.

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Rhode Island lawmakers continue to refer to legalization of recreational marijuana as “inevitable.” However, they also continue to not advance an adult-use bill.

So far, Gov. Dan McKee and Senate Majority Leader Michael McCaffrey have both introduced competing legalization proposals. Those proposals continue to be weighed by legislators who generally sound optimistic. But recently, House Speaker K. Joseph Shekarchi told reporters that neither proponents nor opponents of legal weed are happy with the two bills.

According to Shekarchi, “there’s a lot of uncertainty around it.” And even worse, the speaker doesn’t believe that legalization will happen this year.

Don’t get Shekarchi wrong. “It’s going to happen.” He’s just not sure exactly when. Pressed on the issue, the speaker said, “I think it is about a 50-50 shot [of legalization passing this year] … There are a lot of issues on the table.”

Senate President Dominick Ruggerio also refers to legalization in Rhode Island as “inevitable.” However, when pressed, Ruggerio said, “Do we need to pass it this year? Not necessarily, but I think we have worked pretty hard on this … The House doesn’t really have a plan at this point in time so we will see where it goes.”

Complicating things further, another lawmaker introduced another Cannabis bill. The latest, a House bill, is from Rep. Scott Slater. And while it is not an adult-use legalization bill, Slater claims his measure would establish a “de facto recreational program.” Essentially, the bill relaxes regulations in the state’s medical Cannabis program, allows more conditions to qualify for medical pot and increases patient possession limits to 16 ounces.

As for the recreational measures being considered, Sen. Ruggerio says, “At least get something in the form of legislation so we can take a look at it, yes or no.”

With time running out on the legislative session, hopefully he gets his wish.