LOCAL NEWS

New Jersey regulators have approved guidelines to protect employees who legally use Cannabis. The guidance comes months after the state Senate Judiciary Committee held a lengthy hearing with the Cannabis Regulatory Commission (CRC) – the body in charge of overseeing the pot industry in the Garden State, responsible for establishing guidelines for workplace drug testing and impairment now that Cannabis is legal in New Jersey.

Creating a fully fleshed out recreational pot program takes time, but lawmakers felt the CRC was dragging its feet on this issue. Now, officials have approved a set of temporary rules for employers dealing with Cannabis in the workplace.

Fortunately, the new rules prohibit employers from firing an employee who tests positive for pot on a drug test. To determine if an employee is currently impaired, an interim staffer or third-party contractor would need to fill out a “Reasonable Suspicion Observation Report” to provide evidence of impairment at the workplace.

While an employer can still require workers to take a drug test, a positive test for pot isn’t enough to take action.

The CRC seems to understand that Cannabis remains in the system long past the point of impairment and because of this, drug testing is not an accurate means of demonstrating that someone was high on the job.

According to CRC Executive Director Jeff Brown, “A scientifically reliable objective testing method that indicates the presence of cannabinoid metabolites in the employee’s bodily fluid alone is insufficient to support an adverse employment action.”

“Striking a balance between workplace safety and work performance, and adult employees’ right to privacy and to consume Cannabis during their off hours, is possible,” Brown added. “ … We have been doing that with alcohol without thought.”

The guidelines are temporarily in place while officials work out the certification process for “Workplace Impairment Recognition Experts” (WIREs).

Photo by Pavel Danilyuk

WIREs are required by New Jersey law and are charged with examining the employee under suspicion to determine if they were truly high on the job. WIREs must be certified by the state to perform field sobriety tests, identify signs of intoxication and investigate workplace accidents.

While the new workplace Cannabis rules are just a placeholder, the guidelines will help protect workers from anti-pot employers.

New Jersey began retail marijuana sales at hybrid medical/recreational dispensaries in April.

COURT: MAINE RULE UNCONSTITUTIONAL

federal appeals court struck down a Maine law that required A each year since its introduction in 2014, and the First Circuit Court of Appeals considers this evidence “that this market may all medical Cannabis companies to be continue to exist in some circumstances free from federal criminal owned by state residents. enforcement.”

The residency requirement for In the majority opinion, the Court wrote, “Whatever the medical pot businesses was challenged circumstances may be with respect to other goods that Congress in 2020 by Wellness Connection, the has deemed contraband, this is not a case in which Congress may state’s largest medical dispensary. The be understood to have criminalized a national market with no U.S. District Court for Maine ruled that expectation that an interstate market would continue to operate … the requirement is unconstitutional, Quite the opposite.” as it violates the Dormant Commerce Maine initially installed residency requirements for both medical Clause – a rule established to prevent and adult-use Cannabis businesses. However, in 2020, the restrictions of interstate commerce. state dropped the requirement for recreational dispensaries but

The state appealed that decision, Photo by Yash Lucid continued to insist that medical business owners reside in the state. but the First Circuit Court of Appeals upheld the lower court’s ruling 2-1 – The federal court ruling could impact Maine’s Cannabis industry in a finding that Maine’s residency requirement restricts interstate commerce and is number of ways, including importing and exporting marijuana. But perhaps therefore unconstitutional. the biggest concern involves the state’s equity program.

Supporters of the residency requirement argued that Cannabis is not Advocates fear that a similar argument involving interstate commerce could constitutionally protected for interstate commerce because it is still illegal be used to strike down social equity policies, which give priority to people at the federal level. However, the court pointed out that Congress already who have been disproportionately impacted by prohibition. Many equity laws acknowledges medical marijuana federally through the Rohrabacher-Farr prioritize applicants who live in areas affected by the drug war, leaving reason Amendment, which prohibits federal agencies from using resources to for concern that the court’s decision could pave the way for constitutional prosecute medical Cannabis companies. Congress has approved the law challenges that jeopardize such programs.

MORE EXPUNGEMENTS IN MASSACHUSETTS

Aruling from Massachusetts’ Supreme Judicial Court could help thousands of residents expunge their Cannabis-related criminal records.

Expungement has been a major element in state legalization laws. Too often, a Cannabis conviction on someone’s record can prevent them from finding housing, employment or even getting into college. When a state no longer treats Cannabis possession as a crime, it stands to reason that those convictions should be erased.

Many states have included automatic expungements as part of their legalization legislation, where past pot-related convictions are automatically wiped from records, and most states have tried to make the process as easy as possible for those affected by past Cannabis “crimes.”

Unfortunately, when Massachusetts legalized adult-use marijuana in 2016, the law fell far short on expungements when compared to other states. While the new law makes it possible for records to be expunged, it’s up to the individual to petition the court to have their record cleared. And the law grants leeway to judges to decide whether or not to allow records to be expunged – meaning that there is no guarantee that you’ll get your past pot conviction erased at all.

In fact, according to data from state officials, less than 20 percent of Cannabis expungement requests were granted in the 2022 fiscal year. The probation service can outright reject such requests, and those that are granted can still be thrown out by the courts.

Recently the state Supreme Court justices reviewed a case in which a Boston man petitioned to have his pot possession arrest from 2003 expunged and a municipal judge denied the request, stating that it was not in the “best interests of justice.” Fortunately, the high court unanimously overturned the municipal court’s decision, writing that the judge had “abused his discretion.” Furthermore, the court ruled that expungement petitions must be given a “strong presumption in favor” of approval. This decision, along with changes in dealing with expungements included in Gov. Baker’s recent state Photo by Kindel Media budget, should limit judicial power in denying expungement requests, making the process easier and more equitable – as it should have been all along.

AN EQUITABLE START IN NEW YORK

New York is now accepting the first applications for retail licenses. These early applications are part of the state’s social equity plan as initial licenses are only available to “justice-involved” people who have been adversely impacted by prohibition.

The first step in implementing New York’s retail pot program is awarding Conditional AdultUse Retail Dispensary (CAURD) licenses. A max total of 150 CAURD licenses can be awarded throughout the state, with as many as 70 located in New York City’s five boroughs. Officials are heavily emphasizing the equity aspect of the state’s licensing process. In fact, of the 19 states that have legalized adult-use pot, New York is the only one to exclusively offer the first dispensary licenses to people convicted of a Cannabis crime. Office of Cannabis Management (OCM) Executive Director Chris Alexander stated, “Our team here at OCM will keep launching programs to make sure New York’s industry is equitable, is diverse and accessible to all New Yorkers. … I’ve said it time and time again, and I want to say it here again today: Equity is not a thing. It is the thing.”

Qualifications for social equity applicants vary state-to-state. In New York, an individual must be “justice-involved” – meaning they were convicted for a marijuana-related crime during prohibition or have a close relative with a Cannabis conviction. However, officials recently changed the rule to include those who were arrested for pot but convicted for a lesser crime.

Qualified applicants must also have experience operating a business. The state will decide whether the applicant’s business experience meets its qualifications.

Those who are awarded a Conditional Adult-Use Retail Dispensary license will have access to the state’s $200 million Social Equity Cannabis Fund, as well as turnkey storefront facilities – with the state’s Dormitory Authority charged with building out a number of retail shops as part of New York’s equity program.

The CAURD application portal opened in late August and closed September 26.

New York has made strides of late as it attempts to catch up to neighboring New Jersey. Earlier this year, Gov. Kathy Hochul signed legislation creating conditional cultivation licenses. Thus far, officials have approved 242 cultivation license applications.

The state hopes to begin retail sales in some form by the end of the year. In the meantime, OCM regulators continue sending cease-and-desist letters to New York businesses that have jumped the gun and started selling Cannabis illegally.

>> Continued from pg. 15 Pot Arrests Down IN NEW JERSEY

Arrests for illegal Cannabis sales have dropped significantly in New Jersey since the state legalized recreational pot, according to Politico.

On Election Day 2020, 67 percent of New Jersey voters approved legalizing adult-use Cannabis. Around three months later, on February 22, 2021, Gov. Phil Murphy signed a legalization bill into law. And while the launch of retail sales was still more than a year away at that point, the criminal justice system underwent a significant change that day.

The new law, which would also establish a taxed and regulated Cannabis industry, legalized personal possession of up to six ounces of marijuana.

Without state-approved sources providing the product and an outright ban on growing Cannabis (both recreational and medicinal), arrests of small-time dealers nonetheless dropped by thousands.

Much of this comes from police now being required to eschew arrests and instead issue a written warning to dealers for a first offense. Nonetheless, the state Judiciary reports that between March 1, 2021 and August 15, 2022, just 34 arrests have been made for manufacturing, distributing or dispensing less than an ounce of pot. In the two years leading up to legalization in February 2021, police made 2,117 arrests for the same crimes.

When the amount of Cannabis is increased to between an ounce and five pounds, 556 arrests were made for those crimes since legalization began – compared to 1,492 arrests in the two years leading up to February 2021.

The biggest change, obviously, involves arrests for simple possession. According to state Judiciary data, 37,000 arrests were made in the two years leading up to legalization for personal possession of 50 grams or less. Such possession is no longer a crime in New Jersey, essentially wiping away nearly 40,000 arrests.

Police arrested 2,837 people for possessing more than 50 grams of pot in that same time period. Under the state’s adult-use law, it is legal to possess up to six ounces of pot. Since March 1, 2021, 317 people have been arrested for possessing more than the six ounces allowed by law.

New Jersey’s adult-use law also makes it illegal for police to conduct a search based on the smell of marijuana. This too has played a role in reducing Cannabis-related arrests in the Garden State. Additionally, police can face deprivation of civil rights charges for searching or arresting someone underage for possession of small amounts of Cannabis.

Photo by Kindel Media

CT PAYS $600K TO

VET EQUITY APPLICANTS

onnecticut officials have hired a New York-based C accounting firm to help vet social equity retail applications for the state’s nascent Cannabis industry. As covered here last month, the application process isn’t going particularly well in Connecticut. The state has, admirably, reserved half of its licenses for qualified social equity applicants. However, it’s the “qualified” part that has caused problems. Since we last reported on the application process, the number of Cannabis business hopefuls Photo by Ron Lach suing the state’s Social Equity Council (SEC) jumped from four to 11. According to one of those businesses, The Hartford Cannabis Company, regulators changed their own requirements for social equity approval midway through the application process and then would not allow them to adjust their application.

As it turns out, the state was not necessarily behind the equity application rejections – officials acknowledge they hired the CohnReznick accounting firm to help them review applications. And while SEC regulators had the final say in who was accepted and who was rejected, council members did not go against the firm’s decisions.

Five accounting firms were vying for the opportunity to help Connecticut officials with the application process. However, CohnReznick was the only firm to respond when the state asked for a request proposal – so they got the job. CohnReznick was tasked with creating a “comprehensive review system” beginning in March 2021. The firm’s contract runs through the end of the year and is worth $600,000.

“CohnReznick was chosen for their ability to provide valuable expertise in reviewing the applications, which includes complex analysis of income and residency documents and business structures,” Kristina Diamond, the legislative program manager for the SEC said.

While the lawsuit doesn’t specifically name CohnReznick directly, the firm is responsible for recommending all 11 rejections. Of course, the SEC ultimately signed off on the recommendations.

NYC VS WEED TRUCKS

New York City’s ongoing feud with “weed trucks” continued in September as two dozen tow trucks and NYC Sheriff’s Office cars confiscated pot trucks in a sweep that took place in both Manhattan and Brooklyn.

Earlier this year, in June, dozens of Weed World Candies trucks were towed and confiscated due to $500,000 in unpaid parking tickets.

It’s unclear exactly what brought about the most recent sweep, as officials have been careful not to pin the crackdown on Cannabis. The Sheriff’s Office explained that the trucks towed in September were in the crosshairs because of registration issues and parking problems, not the fact that the trucks are used to hawk weed (or simply CBD products, depending on who you ask).

For most residents in neighborhoods where these trucks set up, quality of life is certainly a concern. The trucks are large, garishly decorated and continually blasting music, all of which attracts a crowd – which is, of course, the whole point.

A month earlier, in August, the NYPD towed 19 weed trucks from Times Square. However, in that case, Mayor Eric Adams was quick to blame illegal Cannabis sales.

“Many people don’t read the complete law. All they read is, ‘Weed is legal,’ and they just kick into gear. … We have to now identify when people are reporting illegal weed being sold – which is far more stores than we realize – and then there’s steps to going in and confiscating those items,” Adams said during an unrelated press conference.

In the August car confiscation, weed truck operators were given six criminal court summonses, along with five parking tickets.

For the most part, New York officials have been taking a hands-off approach to stopping illegal pot sales, opting to send cease-and-desist letters to first-time offenders.

“You have to go in with a warning. There are layers to it, and we are implementing those steps. … We have to educate folks and understand – next to the can soda can’t be Cannabis,” Mayor Adams explained.

Photo by James Ross

RHODE ISLAND IS READY

The nation’s smallest state is hoping that Cannabis will be a big industry for its residents, as officials plan to launch retail sales by the end of the year.

Matthew Santacroce, the deputy director of the R.I. Department of Business Regulation, expects seven dispensaries will be selling recreational Cannabis by December 21 in the Ocean State. He anticipates nine storefronts in operation by the spring of 2023.

Other officials believe the number of operational dispensaries across the state will be even greater, but much of that will depend on how many municipalities opt-out of the Cannabis industry.

Rhode Island’s adult-use law established an opt-out system for jurisdictions that don’t wish to participate in legal marijuana. However, unlike several other states, cities and towns are automatically eligible for Cannabis industry businesses unless they specifically decide to opt-out. Officials in municipalities that would prefer to eschew legal pot and all the business that comes along with it, must place the opt-out question on the November ballot and let the residents decide.

Thus far, 31 cities and towns have decided to include the question on the upcoming ballot. While that number is higher than some lawmakers anticipated, many believe it’s a form of “political cover” so local elected officials don’t get blamed for bringing Cannabis into their community.

Of course, jurisdictions that embrace legal pot will be rewarded with the tax revenue created by Cannabis, as municipalities can collect a three-percent sales tax on marijuana sold in their jurisdiction.

State lawmakers gave regulators until October 15 to approve guidelines for dispensaries, and entrepreneurs are eagerly awaiting the details. However, most are confident that Rhode Island’s Cannabis industry will be a success.

“We know basically what demand is going to look like … Marijuana use is not new here, it will not be new on December 21, and it won’t be new in 2023. What I hope we can achieve is to bring that demand more obviously … into the regulated market,” Santacroce explained.