In today’s evolving cannabis landscape, new developments, challenges and opportunities arise daily. Those who follow cannabis know that rescheduling is a trending topic, with the DEA proposing rules to reclassify marijuana from Schedule I to Schedule III nearly a year ago.
Yet, the most crucial battles often turn out to be the ones that are closer to home. When our state’s industry launched, stakeholders united in advocating for policies designed to uplift communities and individuals disproportionately affected by the War on Drugs. Thanks to their voices, we have social equity initiatives aimed at rectifying historical injustices. Then, last May, Section 280E was decoupled from our state’s tax code, allowing cannabis businesses to deduct necessary business expenses from their income. What initially seemed as mere “fine print” – a minor statute buried among thousands of pages of regulations – had a profound impact on our industry.
Now, amidst the rescheduling talk, we must not overlook the pressing battle unfolding right now in our state. New Jersey cannabis professionals, budding canna-preneurs, aficionados and hopefuls: the time is NOW to come together in support of the regulation of intoxicating hemp-derived cannabinoids.
Addressing a Public Health Emergency
Exploiting a loophole in the 2018 Farm Bill, hemp-derived intoxicants such as Delta-8, Delta-9 and Delta-10, are now widely accessible, often sold at gas stations and convenience stores. Their easy availability, low price and ability to produce a “high” effect, make them very attractive not only to the average cannabis consumer but also to minors. Unlike tested, regulated cannabis sold by licensed dispensaries, intoxicating hemp-derived cannabinoids are produced in an unregulated market with no quality control, packaging restrictions or buying guidelines. This lack of oversight leads to product mislabeling and uninformed purchasing decisions, resulting in potentially dangerous outcomes for consumers. Unfortunately, we have repeatedly witnessed these dangerous outcomes due to a lack of manufacturing regulation, both in New Jersey and other states. Over the past few months, the CDC and FDA have received more than 110 reports of severe acute illnesses and other adverse effects, including two potential deaths, following consumption of Diamond Shruumz™ products. Just this week, the New York Post reported that cannabis contaminated with fentanyl was found in unlicensed Connecticut smoke shop.
The NJCTA has consistently advocated for the regulation, not prohibition, of intoxicating hemp-derived cannabinoids since our market’s inception. We have engaged in countless discussions with legislators and decision makers, testified before the Legislature and presented our cause to local elected officials, municipal leaders and law enforcement at the New Jersey League of Municipalities.
To our gratitude, this spring, New Jersey State Senators Teresa Ruiz and Paul Moriarty along with Assemblymembers Herb Conaway and Annette Quijano introduced S3235/A4461 – the “hemp bill.” This vital piece of legislation addresses the public health emergency by removing unregulated, untaxed and unsafe intoxicating hemp-derived products from the market, thereby keeping them out of the hands of minors. We commend the Legislature for acknowledging this crisis and applying the same rigorous standards that licensed cannabis businesses adhere to for intoxicating hemp-derived cannabinoid products.
Standing Up Against Big Liquor
With progress come challenges, and New Jersey’s cannabis industry is no stranger to them. We heard at the Senate Judiciary Committee hearing on S3235 in May that the alcohol industry was seeking an amendment, or carve out, so they are allowed to produce, wholesale, and retail beverages that are infused with intoxicating hemp-derived cannabinoids. For clarity, they have already been producing, wholesaling and retailing these products via the Farm Bill loophole for the past few years, thumbing their noses at and bypassing the laws of this state and the federal government.
Let us be clear - the NJCTA is opposed to any carve out or exception that would allow the sale of intoxicating cannabinoids anywhere but a Cannabis Regulatory Commission (CRC) approved and state-licensed Class 5 retailer. Every Class 5 retailer licensed by the CRC is required to certify their employees are properly trained to educate adults on the impact of intoxicating cannabinoids on a person’s mind and body. The alcohol industry has none of these training protocols.
Additionally, a municipality may charge a 2% tax on sales of recreational cannabis at a licensed Class 5 retailer within that municipality. Are liquor stores prepared to implement those processes for sales of hemp-derived intoxicating cannabinoids? Allowing the liquor industry to encroach on this market undermines the principle of home rule, which the cannabis industry has always abided by and respected.
Licensed cannabis businesses in New Jersey have responsibly overseen the legal cannabis marketplace since its inception. We are the ones best suited to oversee this emerging market.
Protecting Cannabis
New Jersey’s cannabis industry is still in its infancy – it requires nurturing and protection to reach its full potential. We have built this industry from the ground up, advocating for and implementing responsible regulations and policies to create a legal marketplace that is not only safe, accessible and affordable but also equitable and just. We must come together as one unified voice to continue fighting for laws that will allow licensed cannabis operators to be successful.
The NJCTA will extend its advocacy efforts at NECANN on September 6-7 at the Atlantic City Convention Center. We will have a presence on the exhibition floor and look forward to personally engaging with attendees and discussing ways to help our industry thrive. I will also be speaking on a panel with our General Counsel Mike McQueeny and NJCTA member David Little of Jersey Canna about intoxicating cannabinoids as well as other important matters impacting our industry. I invite you to visit our booth, Booth 746, join the conversation and show your support for our industry during this critical time.
Todd Johnson
Executive Director
New Jersey Cannabis Trade Association (NJCTA)
Comments