New York City’s Commission on Human Rights Thinks It Can Tell Prada What To Sell. Prada Agrees.

The New York City Commission on Human Rights, an oversight agency that monitors compliance with the city’s incredibly broad anti-discrimination law, has ordered the fashion company Prada to stop selling certain toy dolls—described by many as racist caricatures akin to blackface—and send its employees to sensitivity training.

In doing so, the overzealous agency is claiming vast new powers to police a private entity’s behavior. Unfortunately, Prada is meekly submitting to the commission’s demands, and other companies—including Dior and Gucci—are facing similar inquisitions.

This is just the latest in a series of power grabs on the part of the commission, which has vastly exceeded its authority and now represents a serious threat to free expression in New York City.

In September, the commission announced that an employer or landlord’s use of the term “illegal alien” could be considered a form of illegal discrimination, and result in a fine of up to $250,000. This sweeping declaration was made without any reference to oft-cited limitations: Hostile speech must generally be severe, pervasive, and objectively offensive to rise to the level of harassment, for example. This raises questions about whether the commission’s guidance would survive a legal challenged on First Amendment grounds.

But even before this declaration, the commission had begun an investigation into Prada after receiving complaints that some of their merchandise was racially insensitive, according to The New York Times:

For the last year, the New York City Commission on Human Rights, the law enforcement agency of the municipal government charged with overseeing the city’s human rights laws as they apply to housing, retail establishments and other areas, has been investigating and in settlement talks with Prada, a process culminating in a deal signed on Feb. 4, just in time to set nerves on edge during fashion month.

The commission sent Prada a cease and desist letter—a warning to stop selling the dolls in question—in December 2018, after a member of the commission saw a New Yorker’s angry social media posts about the dolls. This New Yorker, Chinyere Ezie, a civil rights attorney, filed a complaint with the commission last January.

Prada’s signed agreement with the commission is incredible. The company will put all New York store employees—and company executives in Milan—through racial sensitivity training. Prada will also appoint a diversity and inclusion officer, subject to the commission’s approval. This person will be tasked with “reviewing Prada’s designs before they are sold, advertised or promoted in any way in the United States,” according to the terms of the agreement. Even The Times’ reporter found this to be a fairly absurd requirement—”Given the hundreds of products Prada creates every season, this is a pretty extraordinary task,” the articles notes in an aside.

And that’s not all:

A year after signing the agreement, Prada is required to tell the commission “the demographic make-up” of its staff at every level, and summarize “Prada’s past and future activities aimed at increasing the number of people from protected classes under-represented in the fashion industry.”

Many of the conditions within the Prada agreement mirror commitments Gucci has already announced, including the creation of scholarships and promises to diversify its design and executive team. In July, it hired Renée Tirado, its first global head of diversity and inclusion, who formerly held a similar role for Major League Baseball.

Gucci declined to comment on the status of its discussions with the commission, though it did not deny the conversations were taking place. Dior did not respond to requests for comment.

In short, government bureaucrats have decided that existing anti-discrimination law gives them the power to tell fashion companies what sort of merchandise they can sell. Explicitly, this is the power they have claimed for themselves. Deputy Commissioner Sapna Raj made this clear to the Times, saying, “I don’t know that we realized previously so many major fashion houses had this ignorance of the history of racism in this country. We hope companies realize they need to be very careful about how they market and advertise—that they need to have a larger social and cultural consciousness.”

She’s not kidding: Companies that are ignorant will be forced to educate themselves. If they do not market their products in a manner the commission approves of, reflecting a “larger social and cultural consciousness,” they will be compelled to change. This naked authoritarianism should be challenged in court; unfortunately, it will take a more courageous handbag maker than Prada to bring such a suit.

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Watch Live: Senate Votes On Trump Impeachment

Watch Live: Senate Votes On Trump Impeachment

After an afternoon of podium-pounding and bloviating, the US Senate will vote to acquit or convict President Trump at 4 p.m. ET.

Watch live:

Earlier Wednesday, Sen. Mitt Romney (R-UT) broke ranks with his party and said he would vote to convict President Trump on one impeachment charge of abuse of power, calling Trump’s conduct with Ukraine an “appalling abuse of public trust.”

Romney’s decision reportedly surprised colleagues, many of whom expected him to vote to acquit after two other fence-sitting Republicans (Collins and Murkowski) announced they would oppose the articles of impeachment.


Tyler Durden

Wed, 02/05/2020 – 15:50

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WeSleep?  Casper Lowers IPO Range Amid No Love For Unicorns

WeSleep?  Casper Lowers IPO Range Amid No Love For Unicorns

Update (Feb. 05):  Casper Sleep Inc. reminds us of the WeWork implosion late last summer when the shared workspace company failed to IPO, ran out of cash, and was then bailout out.

The unicorn mattress retailer slashed its IPO price in the latest filing, now between $12 and $13 per share, a far cry from $17 to $19 last week. The move in price reduced the company’s valuation to $500 million, down from $768 million last week, and down from $1.1 billion in the latest private funding round. This means the company has lost more than half of its value in about one year.

Morgan Stanley, Goldman Sachs, and Jefferies are some of the underwriters on the deal.

This appears to be yet another move by VC firms and investment banks to dump trash onto the public markets to save their high net worth clients of financial elites, politicians, Hollywood actors, and sports icons, which some in the latest round, could take a massive haircut on their investment.

And what does Twitter have to say about Casper’s IPO attempt? 

* * * 

“Smart money” investors, such as some Hollywood actors and sports icons, are linked up with top VC firms and investment banks, have been stung by the VC bubble of overinflated unicorns that see a valuation collapse right before IPO. 

Think WeWork, and what happened to the office-sharing space company last fall, it’s valuation plunged as it attempted to IPO. The company then ran out of money and was bailed out by its largest shareholder, SoftBank. 

Leonardo DiCaprio and rapper 50 Cent have been the latest “smart money” investors to feel the pain of plunging valuations, after their investments in Casper Sleep Inc., an online mattress retailer, saw valuations fall as it attempts to IPO. 

Reuters notes that the unicorn mattress company will issue 9.6 million shares between the $17 to $19 level, which is at the top part of the range, giving the company $182.4 million in IPO proceeds. Such a level would also give the company a $768 million valuation, or about a -23% drop in book value from its latest funding round. 

In 1Q19, the money-losing company was valued at $1.1 billion, which is a -30% decline in today’s valuation versus what was seen early last year. 

We noted since WeWork imploded last fall, investors’ risk appetite for money-losing companies has collapsed. This has also marked the top of not just the VC bubble, but also the IPO bubble

“Valuations in the private market are currently under the microscope, especially with unicorns, as they attempt to tap the public markets,” said Jeff Zell, a senior research analyst at IPO Boutique.

“The biggest hurdle that Casper Sleep is going to have during the roadshow process is proving to investors a viable path to profitability while competing in a highly competitive industry,” Zell said. 

Even “smart money” in Hollywood is feeling the pressure as the bubble of everything deflates. 


Tyler Durden

Wed, 02/05/2020 – 15:30

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‘The President Is Guilty.’ Mitt Romney Will Break Party Lines, Vote To Remove Trump.

When President Andrew Johnson was impeached in 1868, not a single Democratic senator voted for his removal.

When President Bill Clinton was impeached in 1998, his fellow Democrats were similarly unanimous in their support for acquittal.

Those two facts make what Sen. Mitt Romney (R–Utah) announced on Wednesday afternoon pretty significant. In a speech on the Senate floor, Romney said he plans to vote for President Donald Trump’s removal from office.

“The president is guilty of an appalling abuse of the public trust,” Romney said. Trump’s purpose in asking the Ukrainain government to investigate Joe Biden and his son, Hunter, was “personal and political,” Romney added.

There are two important caveats here. First, Romney’s vote is highly unlikely to derail Trump’s acquittal by the Senate—the final vote is expected later today.

Second, Romney’s home state of Utah is about as anti-Trump as a red state can be in 2020. When he was elected to the Senate in 2018, Romney promised to be an independent voice within the increasingly Trumpy Republican Party—despite his earlier flirtations with a possible cabinet position in the Trump administration.

In an interview with The Atlantic, Romney talked about relying on his Mormon faith to help make what the senator said was “the most difficult decision I have ever had to make in my life.” That’s certainly an appeal to his constituents, and his vote against Trump is certainly a less risky bet than it would have been for many other GOP senators.

And yet. This is an historic vote, and one that will plant a target firmly on Romney’s back. There is no world in which casting this vote makes it easier for Romney to continue to do his job, or to win another term in office. As tempting as it always is to roll one’s eyes when an elected official talks about “doing the right thing,” this is a rare instance where a senator is doing exactly that—or, at least, believes that he is.

Not surprisingly, the announcement earned Romney some praise from Rep. Justin Amash (R–Mich.), the only other current or former Republican to vote in favor of impeaching Trump.

But the vote is unlikely to win Romney praise from his fellow Republicans. Sen. Josh Hawley (R–Mo.), who is widely regarded as one of the White House’s closest allies in the Senate, told CNN’s Manu Raju that he was “surprised and disappointed” by the announcement. Other rebukes will surely use harsher language.

As he concluded his remarks on Wednesday, Romney tried to downplay the historic nature of the vote he was promising to cast.

“The results of this Senate court will in fact be appealed to a higher court: the judgement of the American people,” he said. “I will tell my children and their children that I did my duty to the best of my ability, believing that my country expected it of me.”

“I will only be one name among many,” he added. “No more, and no less.”

But on Wednesday evening, Mitt Romney’s name will likely stand alone.

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New York City’s Commission on Human Rights Thinks It Can Tell Prada What To Sell. Prada Agrees.

The New York City Commission on Human Rights, an oversight agency that monitors compliance with the city’s incredibly broad anti-discrimination law, has ordered the fashion company Prada to stop selling certain toy dolls—described by many as racist caricatures akin to blackface—and send its employees to sensitivity training.

In doing so, the overzealous agency is claiming vast new powers to police a private entity’s behavior. Unfortunately, Prada is meekly submitting to the commission’s demands, and other companies—including Dior and Gucci—are facing similar inquisitions.

This is just the latest in a series of power grabs on the part of the commission, which has vastly exceeded its authority and now represents a serious threat to free expression in New York City.

In September, the commission announced that an employer or landlord’s use of the term “illegal alien” could be considered a form of illegal discrimination, and result in a fine of up to $250,000. This sweeping declaration was made without any reference to oft-cited limitations: Hostile speech must generally be severe, pervasive, and objectively offensive to rise to the level of harassment, for example. This raises questions about whether the commission’s guidance would survive a legal challenged on First Amendment grounds.

But even before this declaration, the commission had begun an investigation into Prada after receiving complaints that some of their merchandise was racially insensitive, according to The New York Times:

For the last year, the New York City Commission on Human Rights, the law enforcement agency of the municipal government charged with overseeing the city’s human rights laws as they apply to housing, retail establishments and other areas, has been investigating and in settlement talks with Prada, a process culminating in a deal signed on Feb. 4, just in time to set nerves on edge during fashion month.

The commission sent Prada a cease and desist letter—a warning to stop selling the dolls in question—in December 2018, after a member of the commission saw a New Yorker’s angry social media posts about the dolls. This New Yorker, Chinyere Ezie, a civil rights attorney, filed a complaint with the commission last January.

Prada’s signed agreement with the commission is incredible. The company will put all New York store employees—and company executives in Milan—through racial sensitivity training. Prada will also appoint a diversity and inclusion officer, subject to the commission’s approval. This person will be tasked with “reviewing Prada’s designs before they are sold, advertised or promoted in any way in the United States,” according to the terms of the agreement. Even The Times’ reporter found this to be a fairly absurd requirement—”Given the hundreds of products Prada creates every season, this is a pretty extraordinary task,” the articles notes in an aside.

And that’s not all:

A year after signing the agreement, Prada is required to tell the commission “the demographic make-up” of its staff at every level, and summarize “Prada’s past and future activities aimed at increasing the number of people from protected classes under-represented in the fashion industry.”

Many of the conditions within the Prada agreement mirror commitments Gucci has already announced, including the creation of scholarships and promises to diversify its design and executive team. In July, it hired Renée Tirado, its first global head of diversity and inclusion, who formerly held a similar role for Major League Baseball.

Gucci declined to comment on the status of its discussions with the commission, though it did not deny the conversations were taking place. Dior did not respond to requests for comment.

In short, government bureaucrats have decided that existing anti-discrimination law gives them the power to tell fashion companies what sort of merchandise they can sell. Explicitly, this is the power they have claimed for themselves. Deputy Commissioner Sapna Raj made this clear to the Times, saying, “I don’t know that we realized previously so many major fashion houses had this ignorance of the history of racism in this country. We hope companies realize they need to be very careful about how they market and advertise—that they need to have a larger social and cultural consciousness.”

She’s not kidding: Companies that are ignorant will be forced to educate themselves. If they do not market their products in a manner the commission approves of, reflecting a “larger social and cultural consciousness,” they will be compelled to change. This naked authoritarianism should be challenged in court; unfortunately, it will take a more courageous handbag maker than Prada to bring such a suit.

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“Pretty Much Every Client We Talk To Wants To Buy The Dip, And That Is Not Comforting”

“Pretty Much Every Client We Talk To Wants To Buy The Dip, And That Is Not Comforting”

In the past few days there has been much speculation that in light of the violent reversal in stocks following the early Coronavirus scare and subsequent rebound, that investors were positioned extremely bearishly and were caught offside, forced to once again chase stocks higher amid a general short squeeze. While that may indeed be the case, especially considering the violent move higher in most shorted stocks, a note from Citi’s Tobias Levkovich indicates the opposite, namely that far from bearish, “pretty much every clients wants to buy the dip”, which “implies that people are very long the market and are willing to let share prices to go higher.

We agree, as this clearly suggests that not only are most investors not bearish, but they don’t consider even a potential global pandemic as a reason to sell off stocks, and use any catalyst to chase risk.

Pretty much every client we talk to wants to buy the dip, and that is not comforting. It implies that people are very long the market and are willing to let share prices to go higher. When we are asked what factors made the Panic/Euphoria Model move into euphoric territory, we highlight one of the inputs (though several caused the shift), as it looks at premiums paid for puts versus calls, and the prices have dropped for puts. Fewer deem the need to pay up for insurance, which indicates substantive complacency. Accordingly, the qualitative/anecdotal evidence is supporting the more quantitative approaches.

Source: Scott Barlow


Tyler Durden

Wed, 02/05/2020 – 15:12

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Lawsuit Targets Nashville Courts for Treating Bail Money Like Down Payments for Fines, Fees

Criminal courts in Nashville are demanding that some defendants treat bail funds as down payments for any potential court fines and fees. Today, several civil rights groups filed a lawsuit to stop the practice, arguing it’s unconstitutional.

The American Civil Liberties Union, the Civil Rights Corps, and Nashville-based Choosing Justice Initiative are suing the criminal court of Davidson County, Tennessee, in federal court. They filed suit on behalf of a community bail fund and they are asking the court to rule that these garnishment demands are violations of the Eighth Amendment’s prohibition on excessive fines and fees, as well as the 14th Amendment’s right to due process.

When arrestees in Davidson County are offered bail to avoid pretrial imprisonment, they can go through a bail bond company or they can put the money up themselves. Those defendants who attempt to cover their own bail (including those who seek help from family members) face an additional requirement: A bail bond rule requires defendants to agree that the money they give the county to cover the bail can be garnished to pay for any fines and fees the defendant may owe the court if convicted.

The purpose of cash bail is, ostensibly, to make sure that defendants show up for court dates and don’t cause trouble or commit offenses while awaiting trial. If defendants do as ordered, their money is supposed to be returned to them. But in Davidson County’s system, if the defendant is convicted, the court can take their bail money as payment for any fines or fees the defendant owes.

“These garnishment practices bear no relationship to the constitutionally acceptable purpose of money bail: reasonably assuring court appearance. [Criminal Court Clerk Howard] Gentry’s enforcement of these policies harms presumptively innocent people and their support networks by impermissibly taxing pretrial freedom and chilling the posting of bail,” the lawsuit argues.

This garnishment practice means that family members or friends who offer their financial assistance to help a defendant make bail risk losing that money to the court if their friend is convicted, despite the fact that bail is supposed to be returned when the defendant shows up to court. While it is difficult to say what kind of chilling effect this practice has had on defendants looking for bail help from friends and family, Andrea Woods, an ACLU staff attorney with its Criminal Law Reform Project, tells Reason that roughly half of the people who were arrested in Davidson County in 2019 and given bail orders were unable to raise the funds they needed.

In late 2019, the rule became a problem for the Nashville Community Bail Fund (NCBF), a non-profit group that helps low-income defendants post bail. The Fund had been treated by the courts as exempt from the garnishment rule. People would donate to the fund, the fund put up money for bail, and then the fund got its money back when defendants met their pretrial release obligations. This system has enabled the NCBF to help about 1,000 people in the Nashville area get out of jail since 2016. (And lest anybody thinks that they’re helping “criminals” get out of jail to cause more crimes—the narrative opponents of bail reform are using in New York—the NCBF notes that in 53 percent of the cases they assist, the result is no conviction.)

The NCBF operated with this exemption for three years. But in May, the judges with Davidson County’s criminal court decided to rescind NCBF’s exemption, claiming a concern that the bail fund had a significant amount of “conditional forfeiture” potential, essentially meaning that the fund was covering a lot of people’s bail and that money could potentially be lost if defendants don’t show up for court. What this has to do with garnishment is unclear, and the lawsuit notes that the judges didn’t explain how revoking the exemption would actually make it more likely that defendants would show up for court.

“This practice is not rationally connected to the purpose of bail,” Woods tells Reason. “It doesn’t promote court appearances, and instead it’s harming hundreds of people in Nashville. It’s really baffling.”

The most logical explanation is that the loss of the exemption means that the NCBF won’t be able to help as many people, and therefore more people will likely remain in jail. The lawsuit notes that the fund has had to institute a monthly cap of $20,000 in bail assistance. Before the exemption was revoked, the organization reports spending an average of $67,000 each month in bail assistance. While it’s not clear why the court revoked NCBF’s exemption, it’s clearly resulting in the organization helping fewer people make bail.

Nashville is not the only place where courts use bail payments to cover future fees if the defendant is convicted, so there may be other lawsuits like this one down the line. The effort to significantly reduce or eliminate cash bail demands altogether is getting much more media attention. But Woods notes that similar demands happen in Florida, Wisconsin, and Alabama, elsewhere in Tennessee, and in parts of Michigan.

Statistics show that people who aren’t able to get bailed out of jail often end up facing harsher sentences and accept worse plea deals than those who are free to fight their case outside the confines of a jail cell. Davie Tucker Jr., the vice chairperson of NCBF’s board, notes in a prepared statement that these garnishment rules are just another way to keep people behind bars even though they haven’t been convicted.

“Without our intervention, those who cannot afford bail are forced to sit in cages, losing jobs, housing, and being separated from their families until their case concludes,” Tucker said. “In the end many individuals plead guilty just to get out of jail.”

The lawsuit, Nashville Community Bail Fund v. Gentry, was filed in the U.S. District Court for the Middle District of Tennessee. The lawsuit is asking the court to rule that these garnishment demands violate the Eighth and 14th Amendments, and they are seeking an injunction that would stop Davidson County from enforcing this policy.

Read the lawsuit here.

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On Marijuana, Sanders Promises the Impossible, While Bloomberg Promises More of the Same

Michael Bloomberg, who as mayor of New York City presided over a dramatic surge in pot possession busts and last year called legalizing cannabis “perhaps the stupidest thing we’ve ever done,” now says “putting people in jail for marijuana” is “really dumb.” You might suspect that Bloomberg’s turnaround on marijuana, like his sudden repudiation of the NYPD’s “stop, question, and frisk” program after years of steadfastly defending it, has something to do with his entry into the race for the Democratic presidential nomination. But his new position is morally incoherent, since he continues to support prohibition even while saying marijuana use should not be treated as a crime.

While Bloomberg was visiting Denver on Saturday, a reporter for the local NBC station noted his condemnation of marijuana legalization and asked, “Are the people of Colorado stupid for legalizing it?” Bloomberg’s response:

The first thing is we shouldn’t put anyone in jail over it. Colorado has a right to do what they want to do. I would advise going slowly to any other state because it’s not clear, doctors aren’t sure whether or not it’s doing damage. If a state wants to do it, and Colorado and Washington were the first two that did it, that’s up to the state. What I really object to is putting people in jail for marijuana. That’s really dumb.

As long as producing and distributing cannabis remain illegal, of course, the government will still be “putting people in jail for marijuana,” which according to Bloomberg is “really dumb.” If people should not be arrested for marijuana use, as Bloomberg now claims to believe, it is hard to see why people should be arrested merely for facilitating marijuana use.

Since three-quarters of Democrats support marijuana legalization, Bloomberg’s continued opposition puts him at odds with the primary voters he is counting on to secure his nomination. Except for former Vice President Joe Biden, all of the other Democratic presidential contenders favor repealing marijuana prohibition, not just keeping consumers out of jail or tolerating state-level legalization.

At the other extreme in the Democratic field is Sen. Bernie Sanders (I-Vt.), who is now promising that “on my first day in office through executive order we will legalize marijuana in every state in this country.” That idea is legally impossible for at least three reasons.

First, while the executive branch has the authority to reclassify marijuana without new legislation, the process is rather complicated, involving consultation between the attorney general and the Department of Health and Human Services (HHS). After the department evaluates the merits of moving a drug to a different schedule based on a list of specified criteria, it makes a recommendation to the attorney general, who decides whether to initiate a rulemaking process. All of this obviously could not be accomplished on the first day of a Sanders administration (or even within the first few months), especially since he would not even have had a chance to appoint a new attorney general or HHS secretary.

Second, while the Controlled Substances Act lets the attorney general move marijuana from Schedule I to a less restrictive category, the statute’s incorporation of treaty requirements seems to preclude removing marijuana from the schedules altogether without amending the law.

Third, even if Sanders could magically overcome those obstacles on his first day in office, the effect would be to repeal the federal ban on marijuana, which would not “legalize marijuana in every state.” States would still be free to retain their own laws criminalizing the production, distribution, and possession of marijuana.

But at least Sanders’ heart is in the right place on this issue, while Bloomberg’s position is a moral muddle.

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Lawsuit Targets Nashville Courts for Treating Bail Money Like Down Payments for Fines, Fees

Criminal courts in Nashville are demanding that some defendants treat bail funds as down payments for any potential court fines and fees. Today, several civil rights groups filed a lawsuit to stop the practice, arguing it’s unconstitutional.

The American Civil Liberties Union, the Civil Rights Corps, and Nashville-based Choosing Justice Initiative are suing the criminal court of Davidson County, Tennessee, in federal court. They filed suit on behalf of a community bail fund and they are asking the court to rule that these garnishment demands are violations of the Eighth Amendment’s prohibition on excessive fines and fees, as well as the 14th Amendment’s right to due process.

When arrestees in Davidson County are offered bail to avoid pretrial imprisonment, they can go through a bail bond company or they can put the money up themselves. Those defendants who attempt to cover their own bail (including those who seek help from family members) face an additional requirement: A bail bond rule requires defendants to agree that the money they give the county to cover the bail can be garnished to pay for any fines and fees the defendant may owe the court if convicted.

The purpose of cash bail is, ostensibly, to make sure that defendants show up for court dates and don’t cause trouble or commit offenses while awaiting trial. If defendants do as ordered, their money is supposed to be returned to them. But in Davidson County’s system, if the defendant is convicted, the court can take their bail money as payment for any fines or fees the defendant owes.

“These garnishment practices bear no relationship to the constitutionally acceptable purpose of money bail: reasonably assuring court appearance. [Criminal Court Clerk Howard] Gentry’s enforcement of these policies harms presumptively innocent people and their support networks by impermissibly taxing pretrial freedom and chilling the posting of bail,” the lawsuit argues.

This garnishment practice means that family members or friends who offer their financial assistance to help a defendant make bail risk losing that money to the court if their friend is convicted, despite the fact that bail is supposed to be returned when the defendant shows up to court. While it is difficult to say what kind of chilling effect this practice has had on defendants looking for bail help from friends and family, Andrea Woods, an ACLU staff attorney with its Criminal Law Reform Project, tells Reason that roughly half of the people who were arrested in Davidson County in 2019 and given bail orders were unable to raise the funds they needed.

In late 2019, the rule became a problem for the Nashville Community Bail Fund (NCBF), a non-profit group that helps low-income defendants post bail. The Fund had been treated by the courts as exempt from the garnishment rule. People would donate to the fund, the fund put up money for bail, and then the fund got its money back when defendants met their pretrial release obligations. This system has enabled the NCBF to help about 1,000 people in the Nashville area get out of jail since 2016. (And lest anybody thinks that they’re helping “criminals” get out of jail to cause more crimes—the narrative opponents of bail reform are using in New York—the NCBF notes that in 53 percent of the cases they assist, the result is no conviction.)

The NCBF operated with this exemption for three years. But in May, the judges with Davidson County’s criminal court decided to rescind NCBF’s exemption, claiming a concern that the bail fund had a significant amount of “conditional forfeiture” potential, essentially meaning that the fund was covering a lot of people’s bail and that money could potentially be lost if defendants don’t show up for court. What this has to do with garnishment is unclear, and the lawsuit notes that the judges didn’t explain how revoking the exemption would actually make it more likely that defendants would show up for court.

“This practice is not rationally connected to the purpose of bail,” Woods tells Reason. “It doesn’t promote court appearances, and instead it’s harming hundreds of people in Nashville. It’s really baffling.”

The most logical explanation is that the loss of the exemption means that the NCBF won’t be able to help as many people, and therefore more people will likely remain in jail. The lawsuit notes that the fund has had to institute a monthly cap of $20,000 in bail assistance. Before the exemption was revoked, the organization reports spending an average of $67,000 each month in bail assistance. While it’s not clear why the court revoked NCBF’s exemption, it’s clearly resulting in the organization helping fewer people make bail.

Nashville is not the only place where courts use bail payments to cover future fees if the defendant is convicted, so there may be other lawsuits like this one down the line. The effort to significantly reduce or eliminate cash bail demands altogether is getting much more media attention. But Woods notes that similar demands happen in Florida, Wisconsin, and Alabama, elsewhere in Tennessee, and in parts of Michigan.

Statistics show that people who aren’t able to get bailed out of jail often end up facing harsher sentences and accept worse plea deals than those who are free to fight their case outside the confines of a jail cell. Davie Tucker Jr., the vice chairperson of NCBF’s board, notes in a prepared statement that these garnishment rules are just another way to keep people behind bars even though they haven’t been convicted.

“Without our intervention, those who cannot afford bail are forced to sit in cages, losing jobs, housing, and being separated from their families until their case concludes,” Tucker said. “In the end many individuals plead guilty just to get out of jail.”

The lawsuit, Nashville Community Bail Fund v. Gentry, was filed in the U.S. District Court for the Middle District of Tennessee. The lawsuit is asking the court to rule that these garnishment demands violate the Eighth and 14th Amendments, and they are seeking an injunction that would stop Davidson County from enforcing this policy.

Read the lawsuit here.

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On Marijuana, Sanders Promises the Impossible, While Bloomberg Promises More of the Same

Michael Bloomberg, who as mayor of New York City presided over a dramatic surge in pot possession busts and last year called legalizing cannabis “perhaps the stupidest thing we’ve ever done,” now says “putting people in jail for marijuana” is “really dumb.” You might suspect that Bloomberg’s turnaround on marijuana, like his sudden repudiation of the NYPD’s “stop, question, and frisk” program after years of steadfastly defending it, has something to do with his entry into the race for the Democratic presidential nomination. But his new position is morally incoherent, since he continues to support prohibition even while saying marijuana use should not be treated as a crime.

While Bloomberg was visiting Denver on Saturday, a reporter for the local NBC station noted his condemnation of marijuana legalization and asked, “Are the people of Colorado stupid for legalizing it?” Bloomberg’s response:

The first thing is we shouldn’t put anyone in jail over it. Colorado has a right to do what they want to do. I would advise going slowly to any other state because it’s not clear, doctors aren’t sure whether or not it’s doing damage. If a state wants to do it, and Colorado and Washington were the first two that did it, that’s up to the state. What I really object to is putting people in jail for marijuana. That’s really dumb.

As long as producing and distributing cannabis remain illegal, of course, the government will still be “putting people in jail for marijuana,” which according to Bloomberg is “really dumb.” If people should not be arrested for marijuana use, as Bloomberg now claims to believe, it is hard to see why people should be arrested merely for facilitating marijuana use.

Since three-quarters of Democrats support marijuana legalization, Bloomberg’s continued opposition puts him at odds with the primary voters he is counting on to secure his nomination. Except for former Vice President Joe Biden, all of the other Democratic presidential contenders favor repealing marijuana prohibition, not just keeping consumers out of jail or tolerating state-level legalization.

At the other extreme in the Democratic field is Sen. Bernie Sanders (I-Vt.), who is now promising that “on my first day in office through executive order we will legalize marijuana in every state in this country.” That idea is legally impossible for at least three reasons.

First, while the executive branch has the authority to reclassify marijuana without new legislation, the process is rather complicated, involving consultation between the attorney general and the Department of Health and Human Services (HHS). After the department evaluates the merits of moving a drug to a different schedule based on a list of specified criteria, it makes a recommendation to the attorney general, who decides whether to initiate a rulemaking process. All of this obviously could not be accomplished on the first day of a Sanders administration (or even within the first few months), especially since he would not even have had a chance to appoint a new attorney general or HHS secretary.

Second, while the Controlled Substances Act lets the attorney general move marijuana from Schedule I to a less restrictive category, the statute’s incorporation of treaty requirements seems to preclude removing marijuana from the schedules altogether without amending the law.

Third, even if Sanders could magically overcome those obstacles on his first day in office, the effect would be to repeal the federal ban on marijuana, which would not “legalize marijuana in every state.” States would still be free to retain their own laws criminalizing the production, distribution, and possession of marijuana.

But at least Sanders’ heart is in the right place on this issue, while Bloomberg’s position is a moral muddle.

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