The saga continues for four Massachusetts-based business owners who filed a lawsuit against the U.S. Justice Department in an attempt to overturn cannabis prohibition.

The plaintiffs include owners of Canna Provisions, Inc., Gyasi Sellers, Wiseacre Farm, Inc., and Verano Holdings Corp., who are represented by David Boies and Josh Schiller of Bois Schiller Flexner LLP. The lawsuit was first issued in October 2023, and used the results of a court case from 2005, Gonzales v. Raich, to showcase how federal prohibition of cannabis is outdated. “The federal criminal prohibition on intrastate marijuana remains in place, an unjustified vestige of a long-abandoned policy,” the lawsuit states. “This unjustified intrusion of federal power harms Plaintiffs, threatens the communities they serve, and lacks any rational purpose.”

According to a news report published by The Boston Globe, U.S. Attorney General Merrick Garland filed a motion to dismiss the case on Jan. 23, stating that the plaintiffs have no standing on which to sue, and have presented no evidence that prohibition has caused them injury (such as being arrested or prosecuted). The motion stated that “Even if the court were free to disregard Raich ’s holdings (it is not), Plaintiff’s attacks on that holding are unpersuasive,” that the “Plaintiffs lack standing to challenge the CSA [Controlled Substances Act],” and “Courts have consistently, and correctly, held that no fundamental right exists to distribute, possess, or use marijuana.”

The Boston Globe noted that the Department of Justice declined to comment, as of Jan. 29.

In defense of the business owners, Schiller described how there is evidence that the longstanding illegality of cannabis from a federal standpoint is “well-established.” Schiller cited examples such as cannabis businesses being heavily taxed, forced to pay insurance premiums, cannot take credit cards as a form of payment, and usually pay a higher price for rent or mortgages, “Almost like they are illegal businesses.”

James Smith, of Smith, Costello, & Crawford, commented on the lawsuit and told The Boston Globe that winning a case like this one is a “high hill to climb.” Even still, Smith described Massachusetts’ regulatory framework for legalization as “pretty pristine.” The federal government has yet to make a move on federal legalization and has made no constructive decisions regarding major industry issues, such as banking. Smith added that with a lack of action from the federal government, that leaves state legislators to act—and courts are waiting for them to do so.

Another comment was provided by Boston University professor and author, Jay Wexler, who told the news outlet that if legislators lose interest in regulating cannabis federally, then expecting the federal government to take on the role of cannabis business in all states “falls apart.” Wexler also stated that this current case could eventually reach the Supreme Court. “These are cases where plaintiffs are aiming for the Supreme Court because there are precedents,” said Wexler. “It’s pretty unlikely that lower courts will feel comfortable agreeing with the plaintiffs.”

Schiller estimated that the lawsuit could take two years to reach a conclusion. But one of the plaintiffs, Gyasi Sellers, who owns a delivery service called Treevit, explained that it’s worth the wait. The opportunity to freely and legally take credit cards as a form of payment would improve his entire business, making delivery quicker and also maintaining a safe work environment for employees. Sellers described how prohibition would be “like getting our training wheels taken off, or our handcuffs taken off, depending on how you want to look at it. It’d be nice to say our fate is actually in our hands, and we have the ability to reach our true potential.”

The support for putting an end to prohibition continues to grow. Following the recommendation to move cannabis from a Schedule I to a Schedule III substance by the U.S. Department of Health and Human Services, the industry eagerly awaits the decision of the Drug Enforcement Administration. Meanwhile, multiple House representatives and Senators are calling out to President Biden to make a move as well.

In a High Times exclusive interview, New York Senator Kristen Gillibrand called for an end to prohibition. “Studies show that legalizing marijuana could help reduce violence in international drug trafficking and generate billions of dollars for the economy,” Gillibrand said. “The vast majority of Americans agree that marijuana should be legalized—that’s why I’m calling on the Attorney General and the Drug Enforcement Administration to swiftly deschedule marijuana from the Controlled Substances Act.”

Many predict that rescheduling cannabis could give Biden a huge boost in the upcoming election later this year. A survey conducted by Lake Research Partner showed that Biden could benefit from an 11% boost from younger voters (based on the opinions of 900 voters used in the survey, spread out across the U.S.).

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In Alabama, women are being jailed to prevent them from consuming while pregnant. Wait ’till you hear what’s happening in legal states.

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Colorado Gov. Jared Polis last week announced the launch of a state grant program for cannabis social equity companies, offering licensed operators a new source of capital for their businesses. The governor’s office said in a statement that the new grant program is “a bold, forward-thinking initiative to save small businesses money, foster a more equitable cannabis industry, and make it easier for Coloradans to thrive in one of the state’s fastest growing industries.”

The new grants are an initiative of the Colorado Office of Economic Development and International Trade (OEDIT) and its Cannabis Business Office. The program is designed to provide financial support to licensed cannabis social equity companies to accelerate the growth of their enterprises.

“Colorado’s nation-leading innovations in the cannabis industry are strengthening our economy, advancing diversity, and inclusion, and saving small business owners money,” Polis said last week in a statement from the governor’s office.

Catching Up on Social Equity in Colorado

When Colorado legalized recreational pot in 2012, the state’s groundbreaking cannabis reform legislation failed to adequately address decades of racial disparities in the enforcement of cannabis prohibition. Since then, social equity has become a key issue as other states draft plans to remove criminal penalties for cannabis use and legalize a regulated cannabis economy.

Colorado is now taking measures to institute social equity provisions into the state’s cannabis regulations. In 2020, the state passed legislation to pardon those with past cannabis convictions. And last March, Polis signed a bill creating the Cannabis Business Office to provide financial and technical support to businesses owned by individuals disproportionately impacted by the War on Drugs. The agency opened and began providing services to social equity applicants in July.

“The Cannabis Business Office will provide novel and ambitious programming to provide more equitable opportunity in the cannabis industry,” program manager Tristan Watkins said when the Cannabis Business Office opened last summer. “As the office expands, we are confident it will further solidify Colorado as the leader in the nation’s cannabis industry.”

A 2021 state report found that after a decade of cannabis legalization in Colorado, Blacks and Latinos were still arrested for cannabis-related offenses at a higher rate than whites, with African Americans twice as likely to face charges. Entrepreneurs of color are also underrepresented in the state’s cannabis industry and face unique challenges in raising capital to fund the costs of launching and growing a business.

“Finding funding opportunities is an ongoing challenge that cannabis entrepreneurs face in the US,” Watkins said in last week’s announcement. “The Pilot Grant is designed for early-stage and growing businesses to gain access to the capital they need to succeed — whether it’s for seed money to get started, or to help cover costs to improve their business.”

Grant Applications Now Open

The application period for the first round of grants opened on Friday for eligible social equity businesses that have been awarded or are pursuing a cannabis license from the Colorado Marijuana Enforcement Division. Qualified social equity applicants include those who have lived in a state-recognized opportunity zone for at least 15 years, people with past weed-related convictions and those in households making less than half of the median income for the state.

To be eligible for a grant, businesses are required to complete the state’s Cannabis Business Technical Assistance Program or a partner program, which teaches the fundamentals of opening a business in the regulated cannabis industry. Companies will then complete the pre-application and application processes, which include the development of a detailed proposal to outline the intended use of grant funding. Approved applications will then undergo reviewer evaluations, with selected businesses receiving notification and funding shortly thereafter.

Applicants will be divided into two groups based on business maturity. Businesses in the foundational group are eligible for grants of up to $25,000, while companies in the growth category can be awarded up to $50,000. Grant funds can be awarded for completed or upcoming projects including “brick and mortar regulatory requirements, technical and expert requirements, licensing and regulatory fees, operation needs and innovative initiatives.”

More information about Colorado’s Cannabis Business Pilot Grant program for social equity companies is available online.

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Calm down. You’re not poisoned. You’re high. This is what happens when people can’t buy safe, regulated products.

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In Florida and other states, “THC cap” bills are gaining traction—and could force patients into the unsafe illegal market.

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The story of Harry Anslinger’s racist harassment of Billie Holiday, one of America’s greatest artists, will break your heart.

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After serving on a bomb squad in Iraq, Sean Worsley managed his PTSD with medical marijuana—until Alabama sent him to prison for it.

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