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Posted on March 13, 2018 by Paul P. Josephson

NJ Governor Murphy Projects Adult Use Cannabis Legalization by January 2019

In his first budget address, New Jersey Governor Phil Murphy today reaffirmed his commitment to promptly expand the state’s currently moribund medical marijuana program, and the full legalization of adult use marijuana by January 1, 2019.

In his address, Governor Murphy explained:

We must also make sure we are investing not just in individuals, but also in entire communities – particularly our long-overlooked urban neighborhoods. We must recommit to opening the doors to economic opportunity for the thousands of young men and women – especially young men and women of color – jailed for non-violent drug-related offenses. Our current system has failed them, and put a mark on them that they will carry for their entire lives, preventing them from furthering their educations or getting jobs.

It’s the principal reason I advocate for legalizing adult-use marijuana. According to research, New Jersey spends upwards of $140 million per year adjudicating low-level marijuana possession offenses. And, marijuana-related arrest rates are tilted three-to-one against African-Americans, even though rates of marijuana use are similar among races.

These resources must have a better use, whether to tackle the trafficking of illegal guns, provide stronger community policing, or to crack the back of our opioid epidemic, which was devastating our urban centers long before it made headlines.

I greatly respect those in this chamber who have proposed decriminalizing possession of small amounts of marijuana, and I thank them for recognizing the importance of doing what’s right and just for those who carry criminal records for past possession arrests. But decriminalization alone will not put the corner dealer out of business, it will not help us protect our kids, and it will not end the racial disparities we see.

If these are our goals – as they must be – then the only sensible option is the careful legalization, regulation, and taxation of marijuana sales to adults.

Legalization will allow us to reinvest directly in our communities – especially the urban neighborhoods hardest hit by the misguided War on Drugs – in their economic development, in health care and housing, child care and after-school programs, and other critical areas. These investments will pay dividends far greater than the cost of mass incarceration.

I did not come to this overnight, myself. After all, we are the parents of four children under the age of 21. But from the standpoint of social justice, and from the standpoint of protecting our kids and lifting up our communities, I could not arrive at any other conclusion.

In the Budget in Brief submitted to the Legislature today, the Administration stated that it “plans to legalize adult-use marijuana by January 1, 2019. The State will also move forward with expanding access to medical marijuana to alleviate patient suffering.”

The Budget projects $80 million in new revenue from legalizing marijuana, without specifying tax rates or the number of dispensaries the Governor anticipates.  This is part of $2 billion in new revenues to meet the $37.5 billion budget that also includes a millionaires tax ($765 million), restoring the sales tax rate to 7% ($581 million) and business tax modernization ($110 million).

Next on the Governor’s agenda: the anticipated release of substantially revised regulations governing New Jersey’s medical marijuana program that currently consists of only 6 vertically-integrated, nonprofit dispensaries serving less than 15,000 patients.  The Governor has promised rules by March 24 designed to increase the qualifying conditions for which marijuana may be prescribed and to increase patient access to medical marijuana.

Medical marijuana expansion can be largely accomplished by the Governor without legislation, though it is anticipated the  Legislature is expected to consider changes beyond the Governor’s regulatory authority, including clear authorization to dispense edible products to medical marijuana patients.

 

 

 

Posted on February 22, 2018February 22, 2018 by Duane Morris

Legalizing Marijuana in New Jersey – What It Means to Your Business

Duane Morris Partner Paul P. Josephson and Associate Sarah M. Bachner will be speaking on a panel for the Commerce and Industry Association of New Jersey, “Legalizing Marijuana in New Jersey – What It Means to Your Business” to be held Wednesday, March 7, 2018 at 8:00 a.m

For more information and to register, please visit the event site.

Posted on February 15, 2018February 15, 2018 by Duane Morris

The Duane Morris Cannabis Webinar Series-IP, Trademark and Branding, and Marketing

Duane Morris is presenting a series of monthly webinars throughout 2018 to discuss issues affecting the cannabis industry. Each session will cover a specific subject and feature a “Hot Topics” segment to cover recent developments in the industry.

Join us for the second session on Tuesday, February 27, 2018, covering topics impacting the cannabis industry.

Cannabis 102: Intellectual Property, Trademark and Branding, and Marketing

  • Trademarks and Branding Cannabis Products
  • Patenting Cannabis and Cannabis Products
  • Trade Secrets: Advantages and Challenges
  • A Company’s Perspective with Guest Speaker: Gary Traynor, VP of Operations and Sales, LeafGoods, LLC

Presenters

  • Christiane Schuman Campbell, Partner, Duane Morris LLP
  • Vicki G. Norton, Ph.D., Partner and Co-Chair, Life Sciences and Biotechnology Group, Duane Morris LLP
  • Gretchen L. Temeles, Ph.D., Associate, Duane Morris LLP

REGISTER

For more information, as well as upcoming dates and topics, visit the webinar event page.

Posted on January 31, 2018April 6, 2020 by Duane Morris

“Cannabis 101” Webinar Replay Available

A video replay of the webinar Cannabis 101: Update on the Federal Enforcement & State Regulatory Environment is available to view.

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https://video.amazon.duanemorris.com/events/Cannabis101updateEdited.mp4

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The webinar covers the topics:

  • Attorney General Jeff Sessions’ Memo Rescinding the Cole Memo—What Has Changed?
  • How Federal Enforcement Works from the Perspective of a Former Federal Prosecutor
  • Federal Legislative Update—Congressional Attempts to Protect the Cannabis Industry
  • State Regulatory Actions and How Courts Are Interpreting Cannabis Regulations

Watch above in the embedded viewer, or go to the event page to watch the replay.

Posted on January 23, 2018January 23, 2018 by Paul P. Josephson

NJ Governor Murphy Signs Executive Order Expanding New Jersey’s Medical Marijuana Program

Just a week in office, Governor Phil Murphy has taken the first step in process of bringing much needed reform to New Jersey’s medical marijuana program. He signed an Executive Order today calling for his Commissioner of Health and the Board of Medical Examiners to report back in 60 days concerning expansion of the currently limited medical marijuana program consisting of five operating centers.

Gov. Phil Murphy signs executive order
Gov. Phil Murphy signs executive order

New Jersey’s existing medical marijuana program is problematic and ineffective for a number of reasons. The current program allows for a very limited number of qualifying patient conditions, has an overly burdensome regulatory process and associated administrative fees that discourage both doctor and patient participation, has an arbitrary and unnecessary limit on the amount of dispensaries permitted to operate in the state. It also places illogical limits on the types of medical cannabis strains permitted to be sold in each dispensary.

Stay tuned for more developments.

Posted on January 23, 2018 by Duane Morris

The Duane Morris Cannabis Webinar Series

Duane Morris is presenting a series of monthly webinars throughout 2018 to discuss issues affecting the cannabis industry. Each session will cover a specific subject and feature a “Hot Topics” segment to cover recent developments in the industry.

Join us for the kickoff session on Monday, January 29, 2018, covering topics impacting the cannabis industry.

Cannabis 101: Update on the Federal Enforcement & State Regulatory Environment

  • Attorney General Jeff Sessions’ Memo Rescinding the Cole Memo—What Has Changed?
  • How Federal Enforcement Works from the Perspective of a Former Federal Prosecutor
  • Federal Legislative Update—Congressional Attempts to Protect the Cannabis Industry
  • State Regulatory Actions and How Courts Are Interpreting Cannabis Regulations

Presenters

  • Jennifer Fisher, Partner, Duane Morris LLP
  • George D. Niespolo, Partner and Co-Chair, White-Collar Criminal Defense, Corporate Investigations and Regulatory Compliance Division, Duane Morris LLP
  • Jerry Levy, Partner, Duane Morris LLP

REGISTER

For more information, as well as upcoming dates and topics, visit the webinar event page.

Posted on January 19, 2018January 19, 2018 by Duane Morris

Massachusetts US Attorney Issues Warning to Cannabis Actors

By Alexandra Slavet

On January 8, the U.S. Attorney for the District of Massachusetts, Andrew E. Lelling, noted in an official statement that he “cannot provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution.” This appears to be the strongest negative statement yet from a federal prosecutor following US Attorney General Jeff Sessions’ recent rescission of a series of memoranda which had suggested low prioritization of prosecution of those in the cannabis industry. Sessions is offering each local US Attorney the discretion to pursue prosecutions of state-legal actors as long as they follow long established Department of Justice guidelines for all prosecutions. Other US Attorneys have, for the most part, stayed silent on the issue, confirmed no change in approach, or said they would study the issue.  Continue reading “Massachusetts US Attorney Issues Warning to Cannabis Actors”

Posted on January 10, 2018 by Duane Morris

Pennsylvania Department of Health Publishes Regulations on Special Medical Marijuana Clinical Research Licenses

The Pennsylvania Medical Marijuana Act uniquely provides for a special class of licenses for growers and dispensaries to partner with medical schools to undertake real clinical research on medical marijuana.

On January 3, 2018, the Pennsylvania Department of Health (DOH) published for comment the final clinical registrant regulations. The process of issuing these licenses will be underway shortly. While other states are focused on increasing the availability of nonmedical adult-use marijuana, Pennsylvania seeks to become the leader in clinical research on the medical benefits of cannabis.

To read the full text of this Alert, please visit the Duane Morris website.

Posted on December 19, 2017December 19, 2017 by Joseph J. Machi

San Diego Dispensary Receives the First License to Sell Recreational Cannabis in California

Joseph Machi

On December 15, 2017, the California Bureau of Cannabis Control granted the first license for the sale of adult use marijuana in California to a San Diego dispensary. Torrey Holistics, located in Sorrento Valley, has sold medicinal marijuana since 2015. The dispensary also received a new license to continue the sale of medicinal marijuana.

The adult use retailer license received by Torrey Holistics is one of ten licenses, including one to another San Diego dispensary, Urbn Leaf in Linda Vista, for the sale of adult use marijuana granted by the California Bureau of Cannabis Control since the agency launched its online licensing system earlier in December. The licenses received by Torrey Holistics and the other medicinal and adult use retailers are temporary though. After 120 days, a permanent license must be obtained by the businesses. The licenses also do not go into effect until January 1, 2018.

For more information or questions on licensing of retailers of medicinal and adult use in California, please contact Joe Machi in our San Diego office or another member of the Duane Morris Cannabis Group.

Posted on December 14, 2017 by Joseph J. Machi

Takeaways from the Medicinal and Adult-Use Cannabis Regulation and Safety Act

While most of us were hitting the beaches over the summer, California lawmakers updated California’s regulations for the cannabis industry when they passed California Senate Bill 94, or the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA” or “the Act”). MAUCRSA repeals the Medical Cannabis Regulation and Safety Act and amends the Adult Use of Marijuana Act, resulting in MAUCRSA regulating both adult use (i.e. recreational) cannabis businesses and medicinal cannabis businesses. For purposes of the Act, an adult is considered to be anyone 21 years of age or older. Bus. & Prof. Code § 26001.

While the Act provides a comprehensive regulatory framework for key segments of the cannabis industry, it also raises new questions and concerns that will require further clarification from, and coordination with, California lawmakers and agencies. The discussion below addresses some of the key provisions of the Act.

Continue reading “Takeaways from the Medicinal and Adult-Use Cannabis Regulation and Safety Act”

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Duane Morris attorneys in offices throughout the U.S. have extensive experience with the wide array of issues attendant to legal cannabis business activities, including licensing for cultivation, processing and dispensing; litigation; banking and finance; raising and deploying capital; protecting intellectual property; real estate development; public company representation and SEC filings; land use and zoning; healthcare and research; and taxation.

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