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Judge tosses lawsuits stemming from Michigan’s marijuana recall

Jan 23, 2024 | Blog, Lab Scandals, Michigan News, News

Judge tosses lawsuits stemming from Michigan’s marijuana recall

LANSING, MI — A Michigan Court of Claims judge on Jan. 2 dismissed two lawsuits linked to Michigan’s enormous 64,000-pound, $229 million 2021 marijuana recall that impacted an estimated 60% of all cannabis products in the state.

The dispute centers on the Michigan Cannabis Regulatory Agency’s (CRA) Nov. 17, 2021 decision to recall any marijuana tested between Oct. 10 and Nov. 16, 2021 by Viridis Laboratories, a licensed safety lab tasked with ensuring cannabis products are safe for public consumption.

The CRA issued the recall after noticing the Viridis lab in Lansing passed as safe marijuana that had previously failed testing for the presence of aspergillus, a potentially harmful type of mold.

“We had started noticing in … our statewide monitoring system that packages were failing for aspergillus and then being sent the next day to the (Viridis) laboratories, at which point they were being reported as passing without remediation by the grower,” MRA Scientific and Legal Section Manager Claire Patterson testified on Dec. 2, 2021. If a product tests positive for aspergillus, the mold must be eradicated and the marijuana retested prior to sale.

Read More Here at MLive

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Another city approves to deprioritize enforcement of psychedelics

Jan 22, 2024 | Blog, News

Another city in Michigan has recently agreed to prioritize local enforcement of laws pertaining to psychedelic substances. Additionally, they have shown their endorsement for a bill at the statewide level that aims to legalize specific ethogenic plants and fungi.

On Tuesday, the Ypsilanti City Council unanimously approved the psychedelics measure after hearing testimonies from supporters.

The whereas section on our website acknowledges the potential of psychedelics to facilitate transformative personal and spiritual experiences. Scientific, clinical studies, and traditional practices have demonstrated their beneficial impact on individual and community well-being in managing conditions such as anxiety and post-traumatic stress.

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It also points out that the Washtenaw County District Attorney’s office expressed support for a similar resolution that was adopted in Ann Arbor in 2020.

The latest measure specifically says that it is not intended to legalize the commercial sale of psychedelics.

It declares that the arrest and investigation of individuals involved in psychedelics-related activities, including possession and cultivation, are deemed as the City of Ypsilanti’s lowest priority for law enforcement.

It is also emphasized that no city funds or resources will be utilized in any investigations, detentions, arrests, or prosecutions related to alleged violations of state and federal laws concerning the use of Entheogenic Plants.

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Decision holding mandatory life without parole unconstitutional

Jan 19, 2024 | Blog, Michigan News, News

COA 352569 PEOPLE OF MI V JOHN ANTONIO POOLE Opinion

People v Poole (Docket No. 352569) decided January 18, 2024

The State Appellate Defender Office celebrates today’s outcome for our client John Antonio Poole. As an 18-year-old child, Mr. Poole was sentenced to life without the possibility of parole. Now in his 40s, Mr. Poole has a chance at freedom. Today, the Court of Appeals held that all individuals who were sentenced to life without the possibility of parole as 18-year-olds are entitled to resentencing, regardless of when that sentence was imposed. The mandatory sentence of death in prison for an 18-year-old violates the state constitutional prohibition on cruel or unusual punishment.

More than 250 individuals in Michigan will now have the potential to receive new sentences offering an opportunity for parole. The State Appellate Defender Office is looking forward to representing many of those individuals in their resentencing hearings.

Mr. Poole’s attorney Maya Menlo said: “We are gratified by this decision. Mr. Poole and so many others like him who received unconstitutional life without parole sentences, deserve an opportunity to demonstrate that they are capable of rehabilitation.”

Read the court’s decision here

COA 352569 PEOPLE OF MI V JOHN ANTONIO POOLE Opinion 20240118_c352569_158_352569.opn

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Legal Consequences of Rescheduling Marijuana – 2024

Jan 18, 2024 | Blog, News, USA news

January 16, 2024

On August 29, 2023, the Department of Health and Human Services (HHS) reportedly recommended to the Drug Enforcement Administration (DEA) that marijuana be rescheduled from Schedule I to Schedule III under the Controlled Substances Act (CSA). DEA is currently reviewing HHS’s recommendation.

When considering whether to schedule or reschedule a controlled substance, DEA is bound by HHS’s recommendations on scientific and medical matters.

However, DEA has also stated that it has “final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act.”

A previous CRS Insight outlined policy considerations related to rescheduling marijuana. This Legal Sidebar provides additional information on the legal consequences of the possible move of marijuana from Schedule I to Schedule III.

Current Legal Status of Cannabis Under the CSA

Cannabis and its derivatives generally fall within one of two categories under federal law: marijuana or hemp. Unless an exception applies, the CSA classifies the cannabis plant and its derivatives as marijuana (some provisions of the statute use an alternative spelling, “marihuana”).

The CSA definition of marijuana excludes

(1) products that meet the legal definition of hemp and (2) the mature stalks of the
cannabis plant; the sterilized seeds of the plant; and fibers, oils, and other products made from the stalks and seeds.

Marijuana is a Schedule I controlled substance under the CSA.

Federal law defines hemp as the cannabis plant or any part of that plant with a delta-9
tetrahydrocannabinol (THC) concentration of no more than 0.3%. The non-psychoactive compound cannabidiol (CBD) falls within the legal definition of hemp. Hemp is not a controlled substance under the CSA.

Substances become subject to the CSA through placement in one of five lists, known as Schedules I through V.

Congress placed marijuana in Schedule I in 1970 when it enacted the CSA. A lower schedule number carries greater restrictions under the CSA, with controlled substances in Schedule I subject to the most stringent controls. Schedule I controlled substances have no currently accepted medical use.

It is illegal to produce, dispense, or possess such substances except in the context of federally approved scientific studies, subject to CSA regulatory requirements designed to prevent abuse and diversion.

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Unauthorized activities involving Schedule I controlled substances are federal crimes that may give rise to large fines and significant jail time. DEA is required to set annual production quotas for Schedule I controlled substances manufactured for use in approved research.

In addition to the general regulatory framework that applies due to marijuana’s Schedule I status, some provisions of the CSA apply specifically to marijuana. For instance, 21 U.S.C. § 841 imposes mandatory minimum prison sentences for persons convicted of criminal CSA violations involving set quantities of specific controlled substances, including marijuana. In addition, 21 U.S.C. § 823 creates special registration requirements for those who manufacture marijuana for research purposes.

In sharp contrast to the stringent federal control of marijuana, in recent decades nearly all the states have changed their laws to permit the use of marijuana (or other cannabis products) for medical purposes.

In addition, twenty-four states and the District of Columbia have passed laws removing certain state criminal prohibitions on recreational marijuana use by adults.

As the Supreme Court has recognized, states cannot actually legalize marijuana because the states cannot change federal law, and the Constitution’s Supremacy Clause dictates that federal law takes precedence over conflicting state laws.

So long as marijuana is a Schedule I controlled substance under the CSA, all unauthorized activities involving marijuana are federal crimes anywhere in the United States, including in states that have purported to legalize medical or recreational marijuana.

Nonetheless, Congress has granted the states some leeway to allow the distribution and use of medical marijuana.

In each budget cycle since FY2014, Congress has passed an appropriations rider barring the Department of Justice (DOJ) from using taxpayer funds to prevent states from “implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.” Courts have interpreted the appropriations rider to prohibit federal prosecution of state-legal activities involving medical marijuana.

However, it poses no bar to federal prosecution of activities involving recreational marijuana.

Moreover, the rider does not remove criminal liability; it merely limits enforcement of the CSA in certain circumstances while the rider remains in effect. While official DOJ policy has varied somewhat across Administrations, recent presidential Administrations have not prioritized prosecution of state-legal activities involving marijuana.

Read the rest here –> Legal Consequences of Rescheduling Marijuana Jan 2024

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Michigan Marijuana Sales Surpassed $3 Billion In 2023

Jan 18, 2024 | Blog, Michigan News, News

In 2023 according to sources on the internet the Michigan lottery made 46 million , liquor taxes made $31.5 billion this year, a slight increase from previous projections but close to $400 million less than the previous year. Marijuana about 3 billion.

Michigan’s legal marijuana retailers experienced remarkable success in 2023, generating an impressive $3 billion in cannabis sales. Notably, the sales soared even higher in December, surpassing all previous records.

Licensed businesses achieved a remarkable milestone last month, generating an impressive $279.9 million in total sales, as revealed by the latest state sales data. This outstanding performance sets a new record, surpassing the previous highest monthly earnings of $276.7 million, which were accomplished in July of the previous year.

All recorded sales for 2023, including both adult-use and medical purchases, reached a staggering $3,057,161,285.85, as reported by Michigan’s Cannabis Regulatory Agency (CRA). This figure surpasses the previous year’s total of $2.29 billion by approximately one-third, highlighting the remarkable growth within the industry.

See the CRA Reports

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Detroit casinos report $116.2M in December revenue, $1.237B for year

DETROIT, Jan. 9, 2024 — The three Detroit casinos reported $116.2 million in monthly aggregate revenue (AGR) for the month of December 2023, of which $111.4 million was generated from table games and slots, and $4.8 million from retail sports betting.

The December market shares were:

MGM, 44%
MotorCity, 32%
Hollywood Casino at Greektown, 24%
Monthly Table Games, Slot Revenue, and Taxes
December 2023 table games and slot revenue increased 2.9% when compared to December 2022 revenue. December’s monthly revenue was also 46.6% higher than November 2023. From Jan. 1 through Dec. 31, the Detroit casinos’ table games and slots revenue decreased by 2.7% compared to the same period last year.

The casinos’ monthly gaming revenue results were mixed compared to December 2022:

MGM, down 0.7% to $50.6 million
MotorCity, up by 5.1% to $34.7 million
Hollywood Casino at Greektown, up by 7.5% to $26.1 million
In December 2023, the three Detroit casinos paid $9.0 million in gaming taxes to the State of Michigan. They paid $8.8 million for the same month last year. The casinos also reported submitting $13.8 million in wagering taxes and development agreement payments to the City of Detroit in December.

Quarterly Table Games, Slot Revenue, and Taxes
For the fourth quarter of 2023 that ended Dec. 31, aggregate revenue was down for all three Detroit casinos by 12.9% compared to the same period last year. Quarterly gaming revenue for the casinos was:

MGM: $118.6 million
MotorCity: $84.4 million
Hollywood Casino at Greektown: $66.2 million
Compared to the fourth quarter of 2022, MGM, MotorCity, and Hollywood Casino at Greektown were down by 17.7%, 11.6%, and 4.7%, respectively. The three casinos paid $21.8 million in gaming taxes to the state in the fourth quarter of 2023, compared to $25.0 million in the same quarter last year.

Monthly Retail Sports Betting Revenue and Taxes
The three Detroit casinos reported $30.4 million in total retail sports betting handle, and total gross receipts were $4.8 million for the month of December. Retail sports betting qualified adjusted gross receipts (QAGR) in December 2023 were up by $3.1 million when compared to December 2022. Compared to November 2023, December QAGR increased 54.9%.

December QAGR by casino was:

MGM: $291,171
MotorCity: $2.3 million
Hollywood Casino at Greektown: $2.2 million
During December, the casinos paid $180,822 in gaming taxes to the state and reported submitting $221,005 in wagering taxes to the City of Detroit based on their retail sports betting revenue.

Annual Revenue for Table Games, Slots, and Retail Sports Betting
The total yearly aggregate revenue of $1.237 billion — a slight decrease of 3.1% compared to last year — by the three Detroit casinos for slots, table games, and retail sports betting was generated by:

Slots: $984.1 million (80%)
Table games: $238.7 million (19%)
Retail sports betting: $14.0 million (1%)
The casinos’ market shares for the year were:

MGM, 46%
MotorCity, 31%
Hollywood Casino at Greektown, 23%
Compared to 2022, slots and table games yearly gaming revenue for the three casinos were as follows:

MGM, down by 6.0% to $564.0 million
MotorCity, down by 5.8% to $373.6 million
Hollywood Casino at Greektown, up by 9.5% to $285.2 million
Aggregate retail sports betting qualified adjusted gross receipts (QAGR) for 2023 was down by 25.7% to $14.0 million compared to last year, with MGM totaling $2.3 million, MotorCity totaling $5.0 million, and Hollywood Casino at Greektown totaling $6.7 million.

In 2023, the three Detroit casinos paid the state $99.0 million in wagering taxes for slots and table games, and $528,314 in wagering taxes for retail sports betting. In 2022, they had paid $101.8 million and $711,087 for each, respectively.

Fantasy Contests
For November, fantasy contest operators reported total adjusted revenues of $1.8 million and paid taxes of $149,915.

From Jan. 1 through Nov. 30, fantasy contest operators reported $21.3 million in aggregate fantasy contest adjusted revenues and paid $1.8 million in taxes.

Gambling in any form is for entertainment purposes only. If someone has a gambling problem, please call the state’s 24-hour, toll-free helpline at 1-800-270-7117 or the MGCB’s responsible gaming section at 1-888-223-3044. Visit the Responsible Gaming page of the MGCB website for information on self-exclusion programs including the Disassociated Persons List and the Internet Gaming and Sports Betting Responsible Gaming Database, and DontRegretTheBet.org for additional tools to game responsibly.

The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the state of Michigan. Learn more at Michigan.gov/MGCB.

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MI COURT OF APPEALS – Over 1000 Cannabis Plants Just a Misdemeanor

Jan 7, 2024 | Blog, News

Court rules, Illegal marijuana grow of any size only a misdemeanor in Michigan.

Past defendants may have grounds to fight their prior convictions.

Since the act’s passage in 2018, the outdated 1978 law has led to the charging and conviction of over 3,500 individuals, as per analysis shared by Michigan Supreme Court spokesperson John Nevin with MLive. A total of 1,072 people have been convicted under this law.

Those defendants may have grounds to fight their prior convictions.

From MLIVE

Attorney Michael Komorn of the Komorn law firm specializes in cannabis defense and currently has several clients charged under felony marijuana possession laws.

In light of the Court of Appeals ruling, he plans to file motions requesting those charges be reduced to misdemeanors. Komorn said most prosecutors and police have already placed a low priority on marijuana enforcement, except for “certain pockets” of the state. “They’ll raid like the old days, come in with guns and masks and go through that whole process,” he said, “but their dilemma is, how do we charge somebody.

What, do you get charged with a misdemeanor? “I have a number of cases where they’ve seized property and not charged anybody. And you can only reap the benefits of forfeiture if you get a felony conviction.”

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TIP: We get calls all the time with people who regret hiring a lawyer to represent them for cannabis related charges that didn’t know squat about the laws. One shouldn’t have to tell them about the law before they convince you to plea. Hire right the first time because you may not get a second chance to fix it! Ask the attorney questions.

The appellate court reviewed a case that arose from an August 2020 raid in Tuscola County. This raid was conducted by the state police-led Thumb Narcotics Unit, which operates across Huron, Tuscola, Sanilac, and Lapeer counties.

Tuscola County prosecutors have charged Kejbou with two crimes related to the 1978 drug law. This law stipulates that individuals found in possession of less than 20 marijuana plants may face a maximum sentence of four years in prison, while those possessing over 200 plants could face up to 15 years of imprisonment.

Based on the aforementioned felony charges, the Tuscola County Prosecutor’s Office further filed charges against Kejbou for the offense of possession of a firearm in connection with the commission of a felony.

The unanimous ruling by the three-judge Court of Appeals panel concludes that the case should be prosecuted under the Michigan Regulation and Taxation of Marijuana Act (MRTMA).

Violations for exceeding allowed amounts range from civil infractions to misdemeanors.

As the act states,“subject to imprisonment unless the violation was habitual, willful, and for a commercial purpose or the violation involved violence,”

The panel determined that felony punishments were not applicable.

Document Link

COA State of MI v SHAALN M KEJBOU- 231005 Pub -1000+ plants

Jan 2024 – Update on Cannabis Scheduling

Officially, cannabis still remains federally prohibited under the Controlled Substances Act as a Schedule I substance. This classification is reserved for substances that are considered to lack any currently accepted medical use and have a high potential for abuse.

However, the U.S. Department of Health and Human Services recommended in August that cannabis be moved from Schedule I to Schedule III.

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COA 352569 PEOPLE OF MI V JOHN ANTONIO POOLE Opinion

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Court rules, Illegal marijuana grow of any size only a misdemeanor in Michigan.

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Jan 2024 – Update on Cannabis Scheduling

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