SJBiz_Dept_Rec_Weed_1123_Dept 11 / 6 / 23 11 : 56 AM Page 1 E M E R G I N G I N D U S T R Y While adult - use recreational cannabis has been legal in New Jersey for a year and a half , industry insiders assess its evolution and anticipate plans for the future . The Blunt Reality [ By Carly Murray ] of Cannabiz he prospect of legal marijuana has been a journey across decades . “ It's difficult for someone in a mom - West Coast states became tourism hotspots for recreational purchase a lit - and - popscenario , and that's sort of what tle more than a decade ago , and researchers in the ‘ 90s began demonstrat - encourages the corporate actors , ” she T ing marijuana’s medical benefits in alleviating symptoms of illnesses such continues . “ In New Jersey , at least the as HIV , PTSD and cancer for all ages without dangerous side effects or signs of addic - stated purpose was to allow disadvan - tion . New Jersey legalized medical marjuana in 2010 , following the precedent set by Cal - taged Jersey residents and mom - and - ifornia in 1996 with the Compassionate Use Act . pop - type businesses to open . … It's so From there , the industry expanded across the country despite the federal classifica - wide - rangingin terms of what their munic - tion of cannabis as a Class 1 drug — which many cannabis experts disagree with . This and ipal requirements are , there’s really no other longstanding misconceptions still seep into today’s cannabis market , creating ob - standardization there . ” stacles in a relatively new industry . Despite efforts by the Cannabis Regulatory Commis - Beyondthe cannabis industry , a lack of sion ( CRC ) to prioritize veterans , BIPOC , women and individuals affected by prior mari - clarity is contributing to some organiza - juana convictions , self - starters still face both financial and legal impediments that tions ’ struggle to balance a legal recre - complicate launching small - business dispensaries . ationalmarket with workers ’ on - site safety “ The provisional licensing process … can take some time , ” says Seth R . Tipton , Esq . , andperformance . partner of Florio Perrucci Steinhardt Cappelli & Tipton LLC and author of New Jersey “ While the law prohibits employers Cannabis Regulation . “ While you get a leg up and get a conditional license first , if you from taking any adverse action against don't have the ability to raise the capital necessary to start a business , or you don't have employeesbecause of a positive cannabis a location that you can secure , you're still going to have the same troubles as everyone test alone , employers are not prohibited else . It's an extraordinarily thin market to raise capital . With interest rates where they are frommaintaining a drug - and alcohol - free today , it's very hard for cannabis businesses to raise money when there are more tradi - workplace , ” notes Susan S . Hodges , Esq . , tional investments available with sizable returns . a shareholder and chair , labor and em - “ They're under an extraordinary amount of stress and challenge here . You're start - ployment , at Parker McCay . “ Most em - ing a program from the ground up . You have no legacy industry . As a result , the CRC is ployers … had to adjust their drug - testing dealing with those sort of nuts - and - bolts regulatory issues and operations issues for new policies because the New Jersey licenses , at the same time as they're trying to fundamentally change and address the war CannabisRegulatory , Enforcement Assis - on drugs and all the effects . That's a lot to try to do . It's an ambitious plan . I have seen tance , and Marketplace Modernization in my own clients that the diverse clients have tended to move faster through the licens - Act ( CREAMMA ) requires an employer , ing process , which I think was a key goal . ” prior to conducting most marijuana drug New Jersey has thus far handled dispensary licensing with caution . Large , corporate testing , to conduct a ‘ physical evaluation ’ dispensaries with locations in other states dominate the market in retail for recreational of an employee and to use a so - called and medical , as well as for cultivation and distribution . Yet , the state provides little guid - WIRE - certified individual to make a deci - ance on operation regulations , as it has been primarily the decision of local townships . sion about whether the employee is im - “ Being able to get through the municipal application process , getting the property , pairedby marijuana . … Unfortunately , we the building — it's such a highly regulated business that it's really quite expensive . It's not are still waiting for further guidance on hard to spend a quarter of a million dollars on getting from A to Z , and I have clients that how employers can get an individual have frankly spent much more than that to get through the process . So , you have to have trained to be an interim wire . ” some real upfront money to be able to get into this at all , ” says Sheila M . Mints , Esq . , Hodges does offer some advice as chair of Capehart Scatchard’s Cannabis Law Group , adding that supply - and - demand is employers wait for further guidance to a challenge , too . “ It can take two years to get from getting a license and cultivation to come to fruition . actually getting product out the door . ” “ Review and revise your policies to 14 | SOUTH JERSEY BIZ | VOLUME 13 ISSUE 11 | SouthJerseyBiz.net