Julie Holland: ‘How You Can Feel Good, With or Without Drugs’


Julie-Holland

My guest today is Julie Holland, a psychiatrist whose newest book is Good Chemistry: The Science of Connection from Soul to Psychedelics.

It’s a fantastic read that is steeped in the latest research about what she calls the loneliness epidemic and the psychopharmacology that is helping us find our way forward. When I asked her to summarize what her book is about, she told me, “Good Chemistry is about all the good stuff, how you can feel good, with or without drugs.” That last point is particularly important, I think: Drugs are tools that can help us become all that we can be (to paraphrase the United States Army’s advertising slogan in the 1980s), but they are neither necessary nor sufficient by themselves.

At 56, Holland is armed with degrees from Philadelphia’s University of Pennsylvania and Temple University and decades of clinical and research experience. She’s a legend and pioneer in the psychedelic space, where she has long worked with groups such as MAPs (the Multidisciplinary Association for Psychedelic Studies) and edited volumes such as Ecstasy: The Complete Guide and The Pot Book: A Complete Guide to Cannabis. She’s one of the people who is building out what I think of as a post-prohibition drug culture by asking what our world might look like when we are finally free from government restrictions on all the tools available to us to actualize fully as individuals and as a society.

Holland is also the author of the bestsellers Moody Bitches and Weekends at Bellevue, parent to two kids, a musician, and a headliner at The Psychedelic Assembly, a fantastic event this September 10 and 11 in New York City at which I’ll also be appearing.

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‘Pain Is Coming’: Pro-Powell-Pivot Positioning Pummeled As Hawks Hammer Markets

‘Pain Is Coming’: Pro-Powell-Pivot Positioning Pummeled As Hawks Hammer Markets

“Don’t Fight The Fed!”

Powell said he’s prepared to cause some pain to bring down inflation:

“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.

Ian Shepherdson, chief economist, Pantheon Macroeconomics:

“Chair Powell’s speech forcefully reiterated the Fed’s intention to tighten policy enough to bring inflation down to target and then keep it here, acknowledging that this likely means ‘…some pain to households and businesses.’ The Fed appears frustrated by market expectations — which we have never shared — of easing next year.

Here’s why Powell was pissed off – thanks to the rip higher in stocks, financial conditions are now easier than when The Fed started tightening!!

Source: Bloomberg

However, Americans face an opposing force:

  • Powell: pain is coming; we are going to crush demand.

  • Biden: midterms are coming, we are going to boost demand, discharge debt and come up with stimmies and new definitions

Short-Term Interest-Rates (STIRs) never bought the ‘pivot’ bullshit and both rate-hike expectations and rate-cut expectations have been pushing hawkishly for two weeks…

Source: Bloomberg

September rate-hike odds shifted hawkishly from pre-Powell levels to around a 66% chance of 75bps, 33% of 50bps…

Source: Bloomberg

So the sudden realization among Wall Street’s best and brightest that there is no ‘Powell Pivot’ and never was, sparked mayhem across markets.

Stocks were clubbed like a baby seal today. Nasdaq suffered the biggest drop -4% since early-June (thanks in part to an ugly day from AAPL on anti-trust headlines). The S&P was down 3%…

On the week, Nasdaq was the ugliest horse in the glue factory, dropping almost 5% (worst week since June)…

Today’s hammering sent The Dow, S&P and almost the Nasdaq down to their 100DMAs…

The Dow dropped 1000 points intraday today, back below 33k…

“Most Shorted” stocks were hammered today, erasing all the week’s gains…

Source: Bloomberg

Energy was the only sector to end the week green while Tech was wrecked…

Source: Bloomberg

Treasuries were very mixed on the week with the long-end dramatically outperforming (2Y +16bps, 30Y u-1bp)…

Source: Bloomberg

Which sparked dramatic flattening (further inversion) in the yield curve…

Source: Bloomberg

The Dollar ripped higher on Powell’s hawkishness today, back into the green for the week…

Source: Bloomberg

Cryptos were slammed after Powell’s hawkish comments with Bitcoin tanking back below $21,000 to its lowest in six weeks…

Source: Bloomberg

Oil prices ended the week higher amid OPEC headlines on supply cuts which dominated any recessionary demand threats…

The rise in crude (and wholesale gasoline) suggest the charge lower in pump prices could be set to stall very soon…

Source: Bloomberg

Gold ended the week lower, back around $1750, after being monkeyhammered lower today on Powell’s hawkishness…

Finally, in case you were wondering where this ends. Short-term, the ‘Powell-Pivot’ rally will go (notice that STIRs never fell for the pivot bullshit)…

Source: Bloomberg

And then this?

Source: Bloomberg

Wondering what the catalyst could be? There is $155BN ($36BN in S&P) of CTA selling over the coming month in a down tape..

Will that be enough “pain” for Powell to pivot?

Tyler Durden
Fri, 08/26/2022 – 16:00

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Bloomberg To Hike Terminal Costs By 10%, Blames “Competition For Talent”

Bloomberg To Hike Terminal Costs By 10%, Blames “Competition For Talent”

While everyone was hyper-focused on Federal Reserve Chair Jerome Powell’s comments from Jackson Hole, Wyoming, hitting the wires around 1000 ET, a mere 15 minutes later, Bloomberg Terminal customers were greeted with an email about how subscriptions would jump nearly $200 a month starting next year.

According to the email, Terminal prices will increase by 9.65% for those with multiple licenses and 8.46% for single subscriptions. For two-year subscription terms, the increase represents about 4.8% per year. 

Terminal users who renew in 2023 will be hit with a price hike of $195 per month on top of the already base $2,300 per month (without tax). 

Even though Terminal service prices are adjusted every few years, the email blamed the coming price hikes on “expenses for labor and materials have increased significantly, and there is escalating competition for talent.” 

Here’s the email Bloomberg blasted out to hundreds of thousands of Terminal users. 

How many users actually saw the email as it was sent out 15 minutes after Powell’s comments? 

Tyler Durden
Fri, 08/26/2022 – 15:45

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After J-Hole, Can We Get Back To War, Energy, Inventory, China And Stimulus?

After J-Hole, Can We Get Back To War, Energy, Inventory, China And Stimulus?

By Peter Tchir, strategist at Academy Securities

Powell sounded as tough as he could on inflation he tried to “correct” some of the market’s “misperceptions” from his press conference at the last FOMC. Today’s format was not conducive to letting his inner dove out.  It’s still there, but he had a mission today and a format that let him carry out his mission. 

He leaned towards moderately higher, definitely longer, with a tilt to fight inflation at expense of economy.  But the inner dove is there and while the September meeting is now most likely 75 bps, the future is as uncertain as the data 

War and the European Energy Crisis. FX markets are paying attention and things do not look good. A recession with rolling blackouts may become the “best” case scenario (for now the situation has only deteriorated to base case). 

Not sure where to put Iran and nuclear deal, other than that the more cynical members of the GIG express concerns that we risk fixing a short term problem (oil) with a longer term problem (a nuclear weaponized Iran). Some think the deal is workable but just like I was dubious Russian sanctions would work (they aren’t) I’m dubious about our ability to monitor and contain Iran’s nuclear ambitions. 

Inventories. This remains my biggest concern. While not quite related, today’s talk, and price action so far do not spell good news for crypto. I continue to believe that crypto failing has far reaching consequences for markets and the economy. 

China. How bad is the economy? (It seems bad) will their stimulus be enough? Will they take actions on the geopolitical front (more support for Russia, more agitation around Taiwan) to district their population from the problems at home?

Stimulus. The executive order that wipes out some student debt (a big number in aggregate) and takes steps to limit interest payments could be very stimulative. It seems likely to be challenged, so it is difficult to bet on too significantly. This is on the back of the so-called Inflation Reduction act which also provides some stimulus, but with some potential tax consequences. Ultimately the stimulus could provide a boost like what we saw during Covid, but it seems premature to bet on that.

Bottom Line. I’m skewed towards more risk off with stocks fading and credit spreads widening. 

On rates a “pivot” flattener makes sense with the front end under pressure but back end yields getting some support. This might be the right time for the 20-year to be star of the show. 

After today, I think the “bad news is good news” trading strategy will fail until more bad news is priced in, or the economy surprises me to the upside. 

Tyler Durden
Fri, 08/26/2022 – 15:25

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Iowa Crop Tour Reveals “Underwhelming” And “Disappointing” Cornfields Ahead Of Harvest

Iowa Crop Tour Reveals “Underwhelming” And “Disappointing” Cornfields Ahead Of Harvest

Crop scouts have wrapped up their four-day Pro Farmer Midwest Crop Tour across the western crop belt. Earlier this week, scouts revealed that menacing heatwaves and drought this summer had damaged corn and soybean crops. One of the last legs of the survey was farmland in Iowa on Thursday. What the scouts found was nothing short of “underwhelming,” “disappointing,” and just “not great,” according to Bloomberg

Iowa is the top producing state for corn output in the US, the world’s leading exporter. That’s why the state of corn in Hawkeye State is critical to understand during the tour. 

What scouts uncovered yesterday as they inspected farmland were large swaths of cornfields damaged by heat and dryness. Some said many of the fields they visited were in worse shape than last summer. 

“Iowa was disappointing on my route, especially on corn,” said Mark Bernard, a crop consultant for Agro-Economics. He was one of the scouts that inspected the eastern leg of the Pro Farmer Midwest Crop Tour. 

Pro Farmer Iowa’s results show that 2022 harvests are expected to be below 2021 levels and barely above a three-year average. 

Other crop scouts pointed out corn was stressed. 

Reuters’ ag specialist Karen Braun examined fields and found corn harvests will likely be below last year’s harvest levels. 

Here’s another crop scout:

Corn futures in Chicago have risen all week as the scouts made their way across the western crop belt. We noted earlier this week that scouts in Illinois, Nebraska, Minnesota, and South Dakota were “shocked it’s as bad as it is” because heat and lack of rainfall damaged corn ahead of fall harvests. 

The news from Iowa and other top producing states of drought-stricken cornfields is discouraging as the world banks on the North American growing season to produce a bumper harvest this year as food disruptions and inflation remain troublesome. 

Tyler Durden
Fri, 08/26/2022 – 15:05

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Nearly 50,000 People Were Held in Solitary Confinement in the U.S. Last Year, Study Finds 


hands hanging out of a prison cell

Despite a number of state reforms over the past decade, nearly 50,000 people were held in solitary confinement in prison systems across the country last year, according to a report released Wednesday. 

The report, “Time-In-Cell: A 2021 Snapshot of Restrictive Housing,” co-authored by the Correctional Leaders Association and the Arthur Liman Center for Public Interest Law at Yale Law School, estimates that as of July 2021, between 41,000 and 48,000 people were held in isolation in U.S. prison cells.

The report is part of a decadelong study on the number of prisoners held in solitary confinement, the most comprehensive attempt yet made to measure the use of solitary confinement in the U.S., which the authors define as isolation in a cell for 22 or more hours a day for 15 days or more. (In 2011, the United Nations Special Rapporteur on torture concluded that solitary confinement beyond 15 days constituted cruel and inhumane punishment.)

“The Liman report is the gold standard in tracking solitary confinement in US prisons,” says David Fathi, director of the American Civil Liberties Union’s National Prison Project. “Unfortunately, this time around 15 states refused to participate, including some of the most notorious users of long-term solitary confinement.”

The reports show a gradual downward trend in the use of solitary confinement. The authors say three states reported holding no one in isolation in July, and two other states reported fewer than 10 people in solitary.

Prior to COVID-19, the daily number sat around 60,000 people, according to 2018 estimates. However, during the pandemic, the number of inmates held in solitary confinement spiked to 300,000, according to a report released by Unlock the Box, a coalition of civil rights groups that oppose solitary confinement.

In 2016, there were at least 67,000 inmates in solitary confinement, according to the survey, and in 2014, there were 80,000 to 100,000. Those numbers are all self-reported by jails and prisons.

Part of the decline is due to state reforms, and part is due to the overall decline in prison populations. Wednesday’s report notes that “between 2018 and 2020, when the last report was published, legislators in more than twenty-five states introduced bills to limit the use of restrictive housing, and some fifteen enacted legislation.”

Advocacy groups put pressure on state prison systems to limit the use of solitary confinement, citing evidence that locking human beings in tiny boxes alone for years at a time has profound negative psychological effects, especially on those already suffering or at risk of mental illness. 

Such observations are not new. After visiting Pennsylvania’s Eastern State Penitentiary in 1842, Charles Dickens wrote that the “immense amount of torture and agony” inflicted by solitary confinement was largely hidden from public view, and he denounced the practice as “a secret punishment which slumbering humanity is not roused up to stay.”

Wednesday’s report says that prison systems reported a total of 1,138 seriously mentally ill people in restrictive housing.

Advocacy groups also drew attention to the plight of people who had been held in solitary confinement for years, sometimes decades. One of the most notable cases was Albert Woodfox, who spent 43 years in solitary confinement, possibly the longest stint in U.S. history, in Louisiana’s notorious Angola Prison. Woodfox was freed in 2016 and died earlier this month

According to Wednesday’s report, 6,040 individuals were in solitary confinement for a year or more, and 924 had been in restrictive housing for more than a decade.

“While the apparent decline in solitary confinement is welcome news, the fact remains that the number of people in solitary should be zero,” Fathi says. “Decades of evidence shows the irreversible physical and psychological harm long-term solitary confinement causes. There is no defensible reason for prisons and other detention facilities to keep using long term solitary confinement, which is recognized as a form of torture.”

The post Nearly 50,000 People Were Held in Solitary Confinement in the U.S. Last Year, Study Finds  appeared first on Reason.com.

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Anti-Cheating ‘Room Scans’ During Online Tests Are Unconstitutional, Rules Ohio District Court


Illustration of an eye on a laptop screen

On February 17, 2021, Cleveland State University student Aaron Ogletree was directed to allow an online test proctor to conduct a “room scan” of his bedroom and desk area, a popular method of preventing cheating during online classes. Ogletree expressed reservations about allowing the scan, sending an email to Cleveland State Testing Services to note that he “currently [had] confidential settlement documents in the form of late arriving 1099s scattered about [his] work area and there is not enough time to secure them.” Ogletree ultimately complied.

Ogletree later filed a lawsuit against the university, claiming that the room scan constituted an illegal search and violated his Fourth Amendment rights. On Monday, the U.S. District Court of the Northern District of Ohio Eastern Division agreed. The court ruled that Cleveland State’s room scans were unconstitutional. The room scanning practices are “a variable policy—enforced, unevenly, in the discretion of a combination of proctors and professors—of using remote scans that make a student’s home visible, including to other students, with uncertain consequences,” wrote Judge J. Phillip Calabrese. He continued, “rooms scans go where people otherwise would not, at least not without a warrant or an invitation.”

Cleveland State University defended the room scans by claiming that Ogletree’s expectation of privacy was unreasonable. The university noted that the scans are a “standard industry wide practice” designed to prevent students from viewing notes or other material during the test and that students regularly allow them to be conducted without issue.

The university further argued that room scans are not technically searches because they are “routine,” limited in scope, and the technology they use is in “general public use.” It further argued that previous cases affirming that “technological change affects the degree of privacy that society accepts as reasonable” should be applied outside of the employment context.

The court was unconvinced by those claims. Calabrese argues that the searches are not routine because they “peer behind walls and make visible places outside the ambit” of previous cases. Further, the court rejected the university’s claims that searches conducted using technology in “general public use” is not subject to the Fourth Amendment, writing “the procedural antecedents to a search that the Constitution requires apply even where new technologies make accessible places and information not otherwise obtainable without a physical intrusion.” Further, the court rejected the university’s attempts to apply case law concerning employment to education, writing that applying this law in new contexts “lies with another court, particularly if doing so pares back constitutional protections across different areas of the law.”

This case is a decisive victory for digital privacy advocates. “Traditionally, the Fourth Amendment requires a warrant before the government can search in our homes, and that includes searches by government institutions like a state-run university,” Jason Kelley, the Associate Director of Digital Strategy at the Electronic Frontier Foundation, a digital privacy and free speech group, tells Reason. “There are few exceptions to this requirement, and none of the justifications offered by the university—including its interests in deterring cheating and its assertion the student may have been able to refuse the scan—sufficed to outweigh that requirement in this case.”

According to Kelley, the ruling will likely limit schools’ ability to invade students’ privacy in the name of cheating prevention. There is now legal precedent that just because examining students’ bedrooms might help prevent some forms of cheating doesn’t mean it isn’t an illegal search that substantially violates students’ right to privacy.

“We hope more schools will recognize that just because an invasive surveillance tool exists, it isn’t necessarily helpful to education,” Kelley told Reason. “And as this ruling illustrates, it may in fact be a violation of students’ rights.” 

 

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Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature written by a bunch of people at the Institute for Justice.

New on the Short Circuit podcast: Minnesota appellate attorney Scott Flaherty joins the show to talk Indian Law. With a special guest appearance by Captain Ahab.

  • Two judges say the National Park Service’s permit-and-fee requirements for filmmakers violate the First Amendment. Unfortunately for the plaintiff, it’s the district judge and the dissent. D.C. Circuit: The requirements are reasonable.
  • A John Doe plaintiff alleges that he was put through a biased Title IX tribunal while a student at MIT. But before that can be resolved, we need to know if he can proceed pseudonymously. First Circuit: Which is a question that has bedeviled the federal courts. So here is some detailed-but-not-exhaustive guidance for how courts in this circuit should think about it.
  • Members of the Shinnecock Indian Nation would like to fish in the Shinnecock Bay, but New York officials keep ticketing and prosecuting them. Tribe members: We have a right to fish in the bay based on these colonial-era deeds. District court: Congratulations! You’ve won the suing-the-gov’t trifecta! You lose on sovereign-immunity grounds. And Younger abstention. And lack of Article III standing. Second Circuit: Actually, those defenses don’t apply to at least some of these claims.
  • Pennsylvania man pays off loan from the U.S. Dept. of Agriculture, but the USDA tells a credit reporting agency that he’s in arrears, damaging his credit. Feds: Sovereign immunity; we can’t be sued for any Fair Credit Reporting Act violations. Third Circuit (adding to a juicy circuit split): Reversed. The FCRA waives sovereign immunity by allowing civil damages claims against “any person” who violates the Act, and that plainly includes the federal gov’t.
  • Mississippi’s constitution disenfranchises felons convicted of certain crimes. The section was originally adopted in 1890 and at a convention steeped in racism. It’s since been reenacted twice—in 1950 and 1968—via legislative proposal and ratification by the people. Fifth Circuit (en banc, per curiam): The 1968 reenactment cleansed the provision of its previous discriminatory taint. Judge Graves, dissenting: A law expressly aimed at preventing Black Mississippians from voting cannot be saved via reenactment by a virtually all-white group of people who engaged in massive and violent resistance to the Civil Rights Movement—some of whom burned a cross on my grandmother’s lawn, two doors down from where I grew up.
  • Can a Baylor student sue the university for only providing online instruction during the Spring 2020 semester after the COVID-19 shutdown? District court: Get out of my courtroom. Fifth Circuit: “We espy a potential ambiguity in the definition of ‘educational services’ and remand for further consideration of that issue.” Concurrence: Also, a “merger clause” ain’t a force majeure clause. That’ll be bad for Baylor on remand.
  • Friends, you may remember the time the Fifth Circuit granted qualified immunity to Arlington, Tex. officers who tased a suicidal man who’d doused himself in gasoline, knowing it would set him on fire. It did; he died; and it burned down his family’s house. This week, the Fifth Circuit (unpublished, over a dissent) says the district court was a little too quick to dismiss the family’s claims against the city.
  • Intoxicated San Antonio, Tex. man found sleeping in the driver’s seat is arrested, spends over 16 months in pretrial detention before charges are dismissed. Fifth Circuit: The length of his detention is a “wretched commentary,” but he can’t sue the arresting officers.
  • The Chief of Investigation for the Mississippi State Penitentiary at Parchman is fired for testifying at a criminal hearing on behalf of one of his investigators (who was criminally charged following a convoluted throwdown fight between investigators and prison officials). The now-former chief sues for First Amendment retaliation. Fifth Circuit: It’s clearly established that a public employee can’t be fired for testifying outside of their ordinary job duties. But mayhaps the chief’s testimony was within his job duties, and it’s not clearly established he can’t get fired for that. Qualified immunity. Judge Costa (dissenting): But actually, it’s obvious he wasn’t testifying as part of his duties. He was subpoenaed by the criminal defendant, after all.
  • Texas state troopers pull over man, smell marijuana, and then find a handful of ecstasy pills. He’s arrested and they search the car, finding a small amount of pot plus “100 pairs of women’s underwear, a number of sex toys, and lubricant,” “children’s school supplies” and three cellphones. Intrigued, the troopers apply for warrants to search the phones—ostensibly for drug dealing and based on the drug evidence only. Yikes! They find some child porn on the phones, which leads to a second set of warrants that then lead to almost 20k child porn images. Was there probable cause for the search? Fifth Circuit (en banc): “Close call” but who cares because the good-faith exception applies. Concurrence: Yeah, good faith, but we’ve got to be careful going forward with phones. People have a lot of stuff on them. Dissent: There was only evidence of drug possession, not drug dealing.
  • After New Orleans officials began experimenting with a licensing scheme for allowing short-term rental on platforms like Airbnb, the city decided to scale things back, restricting such rentals to a single owner-occupied house per applicant. Out-of-state license holders—now rendered ineligible—sue, alleging violations of the Takings Clause and the dormant Commerce Clause. Fifth Circuit: The out-of-staters have no takeable property interest in the temporary licenses, but they can’t be treated worse than locals.
  • Sixth Circuit: It feels like this should be unnecessary, but if you are a defense attorney representing a Black man convicted of murder, and your goal is to keep him off death row, maybe don’t have a shrink testify during the penalty phase that a huge proportion of Black people are incurably violent.
  • Two off-duty Indianapolis officers choke bar patron unconscious, drag him facedown to parking lot, beat him still further, empty his wallet, and leave him covered in blood. Jury: The city needs to pay the man $1.2 mil. Seventh Circuit: On the contrary, the officers violated a bunch of city policies, and (under doctrine that your humble editor blithely asserts is wrong) the city can’t be held liable simply for employing some baddies. (The officers were fired—but acquitted of felony battery.)
  • After a local paper reported that Wisconsin financial adviser Thomas Batterman had been accused of mishandling funds and committing wrongdoing, he sued for defamation. But, says the Seventh Circuit, he cannot prevail because Wisconsin financial adviser Thomas Batterman had, in fact, been accused of mishandling funds and committing wrongdoing.
  • Arkansas healthcare professionals cannot legally provide minors with or refer them for gender transition procedures, including medication and surgeries. Eighth Circuit: The law discriminates on the basis of sex, and the state hasn’t met its burden of showing that the law is supported by an “exceedingly persuasive justification.” Preliminary injunction affirmed.
  • Overseer of federal consent decree gets five Oakland, Calif. cops, who fatally shot a homeless man, fired. A violation of the city charter? District court: No. Ninth Circuit: Vacated. The procedure to fire cops is a state-law issue, and this case should be in state court. Dissent: This case is all about what the federal consent decree requires, so it does belong in federal court.
  • Kissimmee, Fla. seventh grader is having a bad hair day, and when his mom takes off his hoodie (to comply with the school dress code) he pushes her away. A school resource officer arrives, curses and mocks the 13-year-old for several minutes, and then slams him to the ground without warning. Eleventh Circuit: The officer had arguable probable cause to arrest him for battering his mother, so qualified immunity on the false arrest claim. But (over a dissent) it is “obviously clear” the officer used excessive force. (The officer was convicted of battery.)
  • Eleventh Circuit: The FDA failed to consider vaping companies’ marketing plans before denying approval for sale of their vaping devices and liquids. They need to go back and do that. Dissent: “SPOILER ALERT,” we all know how that’s going to turn out. Let’s not waste everyone’s time.
  • On-duty Bureau of Indian Affairs officer threatens to arrest woman and have her children taken away if she does not have sex with him. (She does and has the officer’s child; he’s sentenced to three years in prison.) Feds: Ah, but she can’t sue under the Federal Tort Claims Act because he was acting outside the scope of his employment. Montana Supreme Court: Wrong, she can sue. (IJ signed onto an amicus brief that urged the court to reach this result.)
  • And in en banc news, the Seventh Circuit will not reconsider its decision that it did not violate the Eighth Amendment to deny an Illinois inmate access to exercise for two years. In concurrence, Judge Scudder says it’s an issue that “cries out” for review in a different case.
  • And in panel rehearing news, the Ninth Circuit will reconsider its decision that federal law does not preempt a California law that makes it a crime for employers to require unwilling employees to agree to arbitration as a condition of employment.

IJ client Visibly offers online vision tests to consumers so they can easily renew prescriptions for eyeglasses or contacts. But in 2016, South Carolina legislators overrode the governor’s veto and banned such tests even though there is no plausible concern about their safety or reliability. We are pleased to announce, however, that after six years of litigation the South Carolina Supreme Court announced this week that our clients unequivocally have standing to challenge the law that bans them from operating in the state. To the merits!

 

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Environmental Lawsuits Tried To Block 50,000 Homes From Being Built in California In One Year


dreamstime_l_150452918

California policy makers are seemingly getting serious about solving the state’s housing crisis by passing a bevy of laws that ease restrictions on new development. But the benefits of this deregulation are often undone by environmental lawsuits, and there’s evidence that the problem is getting worse.

In 2020, almost 48,000  new housing units were targeted with lawsuits, according to a new report from the law firm Holland & Knight. That’s roughly 50 percent of the 110,784 annual housing units the state has built on average over the past six years.

Two-thirds of these anti-housing lawsuits filed under the California Environmental Quality Act (CEQA) allege that new residential development violates state targets on reducing greenhouse gases and vehicle miles traveled.

“CEQA has indeed become a population control (aka reduction) statute,” writes the report’s author Jennifer Hernandez. “California is losing people, and the people being expelled are our families, our kids and grandkids, our favorite young teacher, our most compassionate nurse, our lifeline electricians and carpenters, our first responders, and our future caregivers.”

CEQA, passed in 1970, requires that governments study and mitigate the environmental impacts of new developments they have discretion over. The law also gives third parties the ability to sue governments for approving projects without allegedly studying them enough or requiring sufficient mitigation of their environmental effects.

That setup has made the law a go-to tool for anti-development Not in my Backyard (NIMBY) activists, who can hold up new projects for years with (often very flimsy) CEQA lawsuits. Despite its original purpose of protecting the environment, CEQA enables reams of litigations targeting everything from new apartments to new solar panels.

One state lawmaker described it as “the law that swallowed California.” A recent law paper called it a “super-statute” that has serious implications for all other laws in the state.

Hernandez argues in the Holland & Knight report that the state’s ambitious plans for achieving reductions in greenhouse gas emissions through reductions in vehicle miles traveled are leading to an increase in CEQA litigation.

The report notes that the impact of CEQA lawsuits on new housing is probably greater than the mere 47,999 that have been explicitly challenged. These legal challenges also target upzoning measures that would allow developers to propose more housing.

That’s helped to keep California’s housing production numbers flat over the past few years, despite the passage of nearly 80 laws aimed at boosting housing production or bringing housing costs down.

The Holland & Knight report argues that the mandates on greenhouse gas and vehicle miles traveled are also environmentally counterproductive. Rising housing costs are forcing more families to move from California, which has the lowest greenhouse gas emissions per capita, to states with far higher per capita emissions.

This is a common criticism leveled at CEQA: It requires policy makers to consider the immediate environmental impacts of a project without considering the wider state, national, or even global impacts of new development.

University of California, Davis Law School professor Christopher Elmendorf made this point to The New York Times when local NIMBYs successfully used CEQA to force U.C. Berkeley to freeze student enrollment because of the alleged environmental impacts of those young scholars.

“Someone in Berkeley — a city with great public transit, in a temperate climate with minimal heating and cooling costs — is going to have less of an environmental footprint than if they were living elsewhere in California,” said Elmendorf. “But CEQA pretends that if those people weren’t living in Berkeley they wouldn’t be living on planet Earth, where they’ll be driving or making trash or noise or starting wildfires or bulldozing habitat.”

The California Legislature this week passed a bill to exempt campus housing from CEQA. This is one of many amendments and exemptions that lawmakers have passed to try and par back the breadth of the law. Last year, the state also exempted upzonings near transit from CEQA.

The Holland & Knight report makes clear that more sweeping, wholesale reform is necessary if the state wants to bring housing costs down. The only downside of that would be improving the environment as well.

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Anti-Cheating ‘Room Scans’ During Online Tests Are Unconstitutional, Rules Ohio District Court


Illustration of an eye on a laptop screen

On February 17, 2021, Cleveland State University student Aaron Ogletree was directed to allow an online test proctor to conduct a “room scan” of his bedroom and desk area, a popular method of preventing cheating during online classes. Ogletree expressed reservations about allowing the scan, sending an email to Cleveland State Testing Services to note that he “currently [had] confidential settlement documents in the form of late arriving 1099s scattered about [his] work area and there is not enough time to secure them.” Ogletree ultimately complied.

Ogletree later filed a lawsuit against the university, claiming that the room scan constituted an illegal search and violated his Fourth Amendment rights. On Monday, the U.S. District Court of the Northern District of Ohio Eastern Division agreed. The court ruled that Cleveland State’s room scans were unconstitutional. The room scanning practices are “a variable policy—enforced, unevenly, in the discretion of a combination of proctors and professors—of using remote scans that make a student’s home visible, including to other students, with uncertain consequences,” wrote Judge J. Phillip Calabrese. He continued, “rooms scans go where people otherwise would not, at least not without a warrant or an invitation.”

Cleveland State University defended the room scans by claiming that Ogletree’s expectation of privacy was unreasonable. The university noted that the scans are a “standard industry wide practice” designed to prevent students from viewing notes or other material during the test and that students regularly allow them to be conducted without issue.

The university further argued that room scans are not technically searches because they are “routine,” limited in scope, and the technology they use is in “general public use.” It further argued that previous cases affirming that “technological change affects the degree of privacy that society accepts as reasonable” should be applied outside of the employment context.

The court was unconvinced by those claims. Calabrese argues that the searches are not routine because they “peer behind walls and make visible places outside the ambit” of previous cases. Further, the court rejected the university’s claims that searches conducted using technology in “general public use” is not subject to the Fourth Amendment, writing “the procedural antecedents to a search that the Constitution requires apply even where new technologies make accessible places and information not otherwise obtainable without a physical intrusion.” Further, the court rejected the university’s attempts to apply case law concerning employment to education, writing that applying this law in new contexts “lies with another court, particularly if doing so pares back constitutional protections across different areas of the law.”

This case is a decisive victory for digital privacy advocates. “Traditionally, the Fourth Amendment requires a warrant before the government can search in our homes, and that includes searches by government institutions like a state-run university,” Jason Kelley, the Associate Director of Digital Strategy at the Electronic Frontier Foundation, a digital privacy and free speech group, tells Reason. “There are few exceptions to this requirement, and none of the justifications offered by the university—including its interests in deterring cheating and its assertion the student may have been able to refuse the scan—sufficed to outweigh that requirement in this case.”

According to Kelley, the ruling will likely limit schools’ ability to invade students’ privacy in the name of cheating prevention. There is now legal precedent that just because examining students’ bedrooms might help prevent some forms of cheating doesn’t mean it isn’t an illegal search that substantially violates students’ right to privacy.

“We hope more schools will recognize that just because an invasive surveillance tool exists, it isn’t necessarily helpful to education,” Kelley told Reason. “And as this ruling illustrates, it may in fact be a violation of students’ rights.” 

 

The post Anti-Cheating 'Room Scans' During Online Tests Are Unconstitutional, Rules Ohio District Court appeared first on Reason.com.

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