The Brief

The U.S. Drug Enforcement Administration is considering reclassifying marijuana from a Schedule I drug to Schedule III. Schedule III drugs, while still controlled substances, are treated differently under the law from Schedule I drugs, which, according to the DEA, have “no currently accepted medical use and a high potential for abuse.”

How could this new classification affect California’s legal cannabis industry? On LAist’s daily news show AirTalk, host Larry Mantle spoke with stakeholders to find out.

The tax man cometh

The biggest benefit of the reclassification of marijuana could come from the IRS. A new classification could allow cannabis businesses to deduct expenses that they currently can’t.

“Right now, they tax these businesses as illegal businesses, and they're not allowed to depreciate or deduct most of their costs,” said Richard Ormond, shareholder at Buchalter, a West Coast-based law firm, where he founded their cannabis law practice group.

Jerred Kiloh, owner of the Higher Path Collective in Sherman Oaks and chairman of the United Cannabis Business Association, is optimistic.

“I just look at my own individual business and I see probably around ... $250,000 a year in federal taxes that I will be able to deduct like a normal business expense, which seems like a really big deal for a company that is just a mom-and-pop trying to make it.”

But Ormond sounded a note of caution. “Until the tax scheme changes, a lot of these businesses are going to be overburdened with licensing fees, taxes, and other government obligations that they have to pay,” he said. “I don't think the tax code is going to be reformed for quite a while.”

Unlocking research

In a statement, Director of the California Department of Cannabis Control Nicole Elliot applauded the DEA’s move, “It will enable new scientific research, so that we can better understand cannabis’ medical value—and also its potential risks.”

UCBA's Kiloh echoed the potential benefits of new research.

“This can only signal to consumers that we're doing more to protect you, we're doing more to understand this plant and its effects on your body, and then that will then signal people to enter the industry with a little less trepidation.”

All the way to the bank

Banking is a significant pain point for businesses selling marijuana, as major banks and payment processors don’t allow cannabis transactions. Kiloh thinks the federal government softening its attitude towards cannabis could “start to signal to credit card companies and banks and processors that … they can move some of their policies away from being so stringent.”

Baby steps

“[Reclassification] is step one of about eight steps that the federal government needs to take to make this a real viable industry,” explained Ormond. According to him, crucial next steps towards a thriving cannabis industry include Congress enacting a safe banking statute and robust interstate commerce. “For this to be a real viable industry, you have to open up those interstate commerce channels.”

What's next

The proposal will be studied by the White House Office of Management and Budget before entering a 60-day public comment period. Lastly, an administrative judge would need to sign off on the decision.

Listen to the conversation

The L.A. County District Attorney alleges a former Los Angeles Unified information technology employee illegally helped a tech company win more than $22 million in district contracts. Prosecutors say the case is “one of the largest money laundering schemes” in the district’s history.

According to the complaint, between 2018 and 2022 Hong “Grace” Peng worked in LAUSD’s IT department and participated in the approval and recommendation of over $22 million in payments to Innive Inc. for services primarily related to the district’s student data system. In the same time period, prosecutors allege Innive CEO Gautham Sampath paid Peng over $3 million.

“This is the type of evidence that you just shake your head, like you can’t believe it,” said District Attorney Nathan Hochman in a recorded statement about the case.

Hochman presented multiple text messages where Peng and Sampath discussed Innive’s contracts with the district. In one, Peng said Sampath was “lucky” she was on a selection committee. When he asked why, she responded "Because you have me...lol...I broke all law for you already lol."

Peng declined to comment when reached by LAist.

Michael Kraut, an attorney for Sampath, said his client had no knowledge of how the contract was awarded.

 "There's been no wrongdoing in terms of not producing, or theft of this money, or embezzling this money," Kraut said. "This is a case in which my client and his company produced exactly what they were contracted to do in the high tech field for LAUSD and the software."

Kraut said the $3 million was related to other "long-term contractual issues" with Peng and had "nothing to do" with the LAUSD contract.

"The DA's office is going to realize that they have made a mistake in this matter and jumped the gun and in fact, there is no criminal intent or actions by my client or his company," he said.

How did the alleged conduct come to light?

According to the complaint, the district first became aware of the alleged scheme in 2022, when an LAUSD IT employee attended a conference and learned from a former colleague of a possible connection between Peng and Sampath. The district employee alerted a supervisor, who alerted the district's inspector general.

A district spokesperson sent LAist a statement Thursday saying staff will continue to participate in the investigation “as appropriate.”

“We will not comment further on the specifics of the case while legal proceedings are ongoing,” the statement read.

What happens now?

Prosecutors charged Sampath with felony counts related to money laundering, “having a financial interest in a contract or purchase made in an official capacity” and “aiding and abetting a government official to have a financial interest in a contract or purchase” made in an official capacity. Peng faces two felony counts — one related to money laundering and the other with “having a financial interest in a contract or purchase made in an official capacity.”

The court issued warrants for Peng and Sampath’s arrests and bail was set at $500,000 for each.

The Los Angeles Metro Board approved on Thursday the agency staff-recommended route of the K Line Northern extension with an amendment.

The amendment calls for additional study of tunneling under Mid-City to inform what that section of the train ends up looking like.

The amendment was billed as a compromise in a political push-and-pull that continued into early Thursday morning between unabashed supporters of the route, including the city of West Hollywood, L.A. County Supervisor Lindsey Horvath and L.A. Mayor Karen Bass, who has tried to appease persistent concerns over the project's impact on residents of the Lafayette Square neighborhood.

“ I am very optimistic, and I'm very pleased that we got to an agreement so that we can all move together jointly,” West Hollywood Mayor John Heilman said to LAist in an interview before the vote.

Metro staff, Horvath and Bass assured the public Thursday that the approved amendment won’t delay the project, including the city of West Hollywood and L.A. County’s joint plan to potentially front billions of dollars to kickstart the project without raising taxes.

“[The amendment] explicitly ensures that continued study, engagement and refinement in the Mid-City segment will proceed without scheduling, cost or job impacts,” Bass said about the amendment during the meeting.

The amendment was unanimously approved in an 11-0 vote. Metro Board Directors Jacquelyn Dupont-Walker and Holly Mitchell recused themselves since they own property in proximity to the proposed extension.

Los Angeles County Supervisor Lindsey Horvath has championed the K Line Northern Extension.

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Samanta Helou Hernandez

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LAist

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The low-down on the extension

The K Line currently runs from Redondo Beach to Crenshaw and stops at the LAX/Metro Transit Center. Earlier in March, Metro officials recommended a nearly 10-mile route for the train to continue north through Mid City and West Hollywood and terminate at the Hollywood Bowl.

The route would connect to the D Line in Wilshire and the B Line in Hollywood, closing a north-south gap that currently exists in Metro’s rail network. The extension would link to cultural hubs, including the Museum District and Hollywood Bowl, major employers such as Cedars Sinai Medical Center and queer nightlife along Santa Monica and Sunset boulevards.

According to Metro staff estimates, the route that was mostly approved today would serve the highest number of riders and reach the most residents and jobs compared to other alternatives studied.

You can read more about the specifics and the lead up to Thursday’s vote in our earlier coverage.

Didn’t Metro already study tunneling in Mid-City?

Lafayette Square residents have for years expressed fears over the effects of tunneling on property values, noise and vibration.

Based on the concerns, the Metro Board directed agency staff in October 2024 to do further analysis and community outreach. That work, which cost an additional $2.3 million, involved studying 12 different route options through Mid-City and concluded that tunneling will be deep enough to zero out any surface-level disruptions.

It’s unclear what the study prescribed by the amendment approved Thursday will materialize that hasn’t already been addressed.

Once fully built out, the K Line will run from the South Bay to Hollywood.

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L.A. Metro

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What happens now?

Thursday’s affirmative vote was necessary before the city of West Hollywood and L.A. County pursue a plan to capture a certain proportion of future property tax growth in a defined area near the project and funnel it towards construction. Critically, this plan wouldn’t involve raising taxes.

“Every time a property is redeveloped or sold, it adds to that increment, which adds to the amount of money that you can raise,” Eli Lipmen, head of transit advocacy group Move LA and supporter of the Metro-recommended route for the extension, said to LAist last week.

Now that the board green-lit the route, West Hollywood City Council and the L.A. County Board of Supervisors will pursue creating the district within which property tax growth could be captured.

The completion of that legislative work will trigger a 12- month clock to conduct the additional Mid-City tunneling study and finalize the route there.

It’s all about compromise

A draft version of the amendment that circulated earlier this week did not include the 12-month time cap on the additional analysis, which raised a red flag for the city of West Hollywood.

“If additional outreach and technical work must be done … it should be capped at a reasonable maximum duration to prevent further delays,” Heilman and City Councilmember Chelsea Byers wrote in a Wednesday letter to the Board.

Heilman said he worked through Wednesday night and into Thursday morning with Horvath and Metro and Bass’ staff toward the amendment that the Board approved.

Today’s vote isn’t final project approval, and it will return back to the Metro Board several more times before shovels hit the ground.

The projected cost of the train is fluid until the Mid-City section is finalized. However, earlier estimates had the staff-recommended route for the train extension coming in at around $15 billion. Measure M, the half-cent sales tax county voters approved a decade ago, includes more than $2 billion for the project.

Those funds won’t be available until the 2040s, but the financing plan that West Hollywood and the county are pursuing could expedite the release of that money and construction.

The current Metro K Line train opened to the public on October 7, 2022.

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Raquel Natalicchio

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for LAist

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K Line Northern Extension elicited historic feedback from community

Public officials said the K Line Northern extension was an extraordinary display of community passion and pressure.

Inglewood Mayor James Butts, who sits on the Metro Board and was listed as a co-author on the draft amendment, said he received “767 emails from West Hollywood.”

“I applaud you,” Butts said during the meeting. “You guys are the strongest advocacy group I’ve seen in 54 years of municipal service.”

The days are getting longer and there's way more pastel out there — yes, it's Easter Sunday on April 5. You may be thinking about getting together with friends and family, so here's a list of the best Easter brunches under $100 per person that your whole fluffle will love.

(In case you didn’t know, a fluffle is an adorable way to say a group of bunnies, so rabbits just got even cuter.)

The London West Hollywood at Beverly Hills (West Hollywood)

Celebrate Spring with a lively Easter brunch.

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Courtesy The London West Hollywood at Beverly Hills

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The London West Hollywood at Beverly Hills is hosting a Rooftop Easter Brunch & Egg Hunt when you visit the hotel on Easter weekend.

The menu for Easter Sunday is à la carte and includes crab toast green papaya ($24), lemon ricotta hotcakes ($26), and wood charred spring lamb ($48), among others. Guests with brunch reservations can also enjoy a visit from the Easter Bunny, cookie decorating on the rooftop, plus an egg hunt at 9:30 a.m. or 12:30 p.m. for the kids. Meanwhile, adults can take a ride on the London rooftop Bloody Mary trolley ($26).

Make your reservations on OpenTable

• Location: 1020 N. San Vicente Blvd., West Hollywood
  Hours: Brunch is from 10:30 a.m. to 1:30 p.m. 

LouLou Santa Monica (Santa Monica)

The Easter-themed champagne flight at LouLou.

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Courtesy LouLou

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Perched atop the Santa Monica Place mall is Lou Lou, a French-inspired rooftop spot known for live DJs, drag shows, and more.

For Easter, they're offering an unlimited brunch buffet ($75), including “Le Gigot D’agneau,” a seven-hour roasted leg of lamb, along with dauphine potatoes, flageolet beans, and deviled eggs. Easter-themed cocktails will also be available. Entertainment includes Live DJ Music and a visit from the Lapin himself.

Make your reservations on OpenTable. Parking is FREE for 90 minutes in the surrounding structures.

• Location: 395 Santa Monica Place #300, Santa Monica
  Hours: Brunch is available from 11:30 a.m. to 4:30 p.m. 
  

Rooftop of the Wayfarer Hotel (DTLA)

The view from the Wayfarer hotel rooftop.

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Courtesy Wayfarer Hotel

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Get lost in the skyline of downtown Los Angeles as you nibble Nueske’s applewood smoked bacon and plunge into buttermilk pancakes. This unlimited brunch includes glazed honey ham, roasted Pacifico sea bass, and a roasted leg of lamb with pomegranate chimichurri. Dessert includes a seasonal fruit display, mini cheesecakes, and cookies. The cost is $70 for adults and $35 for children ages 3 to 12.

Make your reservations on OpenTable.

• Location: 813 Flower St., Los Angeles
  Hours: Brunch is available from 10 a.m. to 2 p.m. 

The Raymond 1886 (Pasadena)

The Raymond 1886 Hotel's exterior

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Courtesy The Raymond 1886

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There's nothing quite like stepping back in time while dining in the craftsman-style dining room at The Raymond 1886. Whether you're outside on the patio or tucked inside a dark booth, it's hard not to feel right at home. Easter specials include a pastry and fruit board for the table, featuring everything from apple coffee cake to spinach quiche, plus seasonal fruit and berries ($40). You also can't go wrong with Grand Marnier-infused French toast ($24) or a garden omelette ($24). Brunch cocktails include familiar mimosas ($15) alongside more inventive beverages like a charred sunset cocktail with mezcal strawberry foam ($18).

Reservations can be made on their website.

The Portofino Hotel & Marina (Redondo Beach)

The view from the Portofino hotel and marina.

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Courtesy The Portofino Hotel and Marina

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For a truly family-friendly experience, visit The Portofino Hotel & Marina in Redondo Beach, where the Bayside Ballroom is home to your brunch. The hotel will offer two seatings for an endless dining experience, complete with pancakes and waffles, a smoked salmon station, a full charcuterie and cheese board, made-to-order omelettes, prime rib and a sweet station.

Even more important than the food is the fun, which includes an egg hunt and face painting for the kids following the brunch. Adults also have a chance to win prizes, like an overnight stay in a junior suite. The price is $95 for adults and $45 for children under $12.

Reservations can be made on their website.

Gelson's (Various)

Focus on family instead of fixing things up, thanks to an Easter brunch at home, catered by Gelson's.

Try a spiral-glazed ham that feeds eight ($60) or a vegetable lasagna for 12 ($75) Finish the fiesta with touches like fresh flowers ($8.99+) and smoked salmon deviled eggs with caviar ($45 for 24 pieces).

Online ordering is already open with store pickup from April 3 to April 5. The last day to order is April 3.

The Culver Hotel (Culver City)

Tea for two, or however many you'd like, at the Culver Hotel.

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Courtesy Culver Hotel

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The Culver Hotel will host their afternoon tea in the Grand Lobby and Crystal Room, where Easter bonnets are encouraged. Take in the sounds of a live harpist while you relish in housemade scones, chicken curry tea sandwiches, petit fours, and loose-leaf teas.

The cost is $75 per person before adding on garden-fresh cocktails or bubbly. The hotel will also be hosting a full buffet brunch for $95 per person and $45 for children if you'd prefer a little more feasting. Face painting will be offered in the garden for children of all ages.

Make your reservations on OpenTable for both the tea and the brunch.

Bunny Bungalows (The Grove and The Americana at Brand)

Too many brunch cocktails and you'll start thinking this guy is real.

Although not a brunch, it’s easy to curate an afternoon adventure around this family photo opportunity. The Easter Bunny is currently burrowing at the Bunny Bungalows at The Grove and The Americana at Brand. Make your reservations from now until Sunday, April 5, for VIB (very important bunny) photo packages. Caruso Members can get extra perks like petting zoo access on select days, and keep your eyes open for golden egg days, which come with $15 vouchers to select restaurants. Pricing begins at $55.

The International Olympic Committee will prohibit transgender athletes from participating in women's sports, starting at the 2028 Summer Olympics in Los Angeles.

The new policy, approved by the IOC's executive committee Thursday, requires all athletes to undergo a genetic test to compete in women's sporting events at the Olympics.

The move comes as transgender athletes' participation in sports at all levels — from youth athletics to professional competition — faces intense scrutiny and often partisan debate, including in communities in California.

"At the Olympic Games, even the smallest margins can be the difference between victory and defeat," IOC President Kirsty Coventry said today, announcing the ban. "So, it is absolutely clear that it would not be fair for biological males to compete in the female category."

The number of transgender women competing in international sporting events like the Olympics is estimated to be tiny, according to the Williams Institute at UCLA Law, a research center focused on sexual orientation and gender identity law and public policy. The push to bar trans athletes from girls' and women's sports has picked up as a raft of new policies in the U.S. target the rights of transgender people.

The Trump administration has ramped up efforts to keep trans athletes out of women's sports, through an executive order and legal action, including a lawsuit against California for allowing trans girls to compete in girls' school sports.

" It is basically the IOC bowing down to the pressure on its body by the federal government, and particularly Donald Trump," said Terra Russell-Slavin with the Los Angeles LGBT Center, responding to the new policy on Thursday.

About the new policy

The new Olympic policy limits participation in the women's competitions to "biological females" in order "to ensure fairness, safety and integrity in elite competition."

The IOC had previously allowed individual sports federations to set their own rules for trans athletes — but the topic became a huge focus of controversy in Paris in 2024, when conservative commentators questioned the sex of two female Olympic boxers, including gold medalist Imane Khelif, kicking off an international firestorm.

The policy change faced immediate criticism from some women's groups and LGBTQ organizations.

“By mandating sex testing and excluding transgender and intersex women from competition, the International Olympic Committee is embracing a policy that invites confusion, stigma and invasive scrutiny rather than clarity or safety," Brian Dittmeier, director of LGBTQI equality at the National Women’s Law Center, said in a statement.

Dittmeier also said the decision would "trickle down" to school sports and discourage young athletes. According to a recent survey by the L.A.-based Trevor Project, less than one in three young LGBTQ people reported participating in sports. Many cited fear of discrimination as a barrier.

The policy will require all female athletes to do an SRY gene test to determine if a "Y" chromosome is present. According to the IOC, with "rare exceptions," no athletes who test positive will be able to compete in women's sports at the Olympics.

Groups respond to new rule

InterACT, a group that advocates for intersex youth, said the IOC's new required genetic test discriminates against intersex athletes — athletes whose sex characteristics don't fall into the binary categories of male or female.

"Sex testing invades all women’s privacy, forcing them to give up their personal medical and genetic information for the IOC to determine if they are 'woman enough' to compete," Erika Lorshbough, interACT’s executive director, said in a statement.

Some groups in California celebrated the change, including the California Family Council, a conservative and religious advocacy group that is pushing the California Interscholastic Federation, California high school's governing body for sports, to ban trans youth from girls' sports.

"We're going to see that reflected in the Olympics, which will be coming up in L.A.," Sophia Lorey with California Family Council said in a video on Instagram about the IOC's new policy. "So it's going to be interesting to see how this plays out."

Russell-Slavin with the L.A. LGBT Center said Olympic organizers and local politicians should respond to the ban by affirming their support for trans people in Los Angeles.

" The fact that the policy will be implemented for the first time in Los Angeles is also at direct odds with our values as a city," she said. "I feel very clearly that one of the things that makes Los Angeles so great is our diversity and our inclusion, and this is the opposite."