Cannabis Law October Update

Ansell Grimm October 19, 2021

New Jersey Weekly Bar Report

On Monday, October 18, 2021, the New Jersey Law Journal’s weekly Bar Report spoke with NJSBA Cannabis Law Committee Co-Chairs Joshua S. Bauchner, Esq. (of Ansell Grimm & Aaron, PC) and Lisa Gora, Esq. (of Wilentz, Goldman & Spitzer, PA) about the legal landscape surrounding the new state law and what can be expected in the early days of this new industry. The Report includes a Q&A that touches on the new law’s impact on attorneys, opportunities for New Jersey entrepreneurs, municipal involvement, and current expected timelines. A copy of the report can be viewed here.

Cannabis Regulatory Commission Meeting

On Friday, October 15, 2021, the New Jersey Cannabis Regulatory Commission held a meeting during which they voted on and issued recommendations for applicants for Cultivator and Vertically Integrated Licenses as part of the 2019 RFA round. The Commission did not take any action with regard to applicants for Dispensary Licenses. Initially, it was expected that five (5) Cultivator Licenses and four (4) Vertically Integrated Licenses would be awarded. At the meeting, the Commission announced that they would be recommending double the number of Cultivator Licenses. The Commission stipulated that these Cultivator Licensees will need to operate for one (1) year prior to being able to begin adult-use sales. A recording of the meeting will be available on the Commission’s website shortly.

New Jersey Law Journal

On Monday, October 18, 2021, the New Jersey Law Journal published HIGH-lights: A Look at Personal Use Cannabis Rules Adopted by the Cannabis Regulatory Commission. The article, a collaboration between Zachary L. Windham, Esq., of Ansell Grimm & Aaron, PC and Lisa Gora, Esq., of Wilentz, Goldman & Spitzer, PA, focuses on the upcoming adult-use application process in light of the initial regulations released by the Cannabis Regulatory Commission. The article discusses who will receive “prioritization” in the application process and the impact of receiving such priority, as well as surmising when and what to expect for application submission window(s) given the limited details on the topic within the Commission’s initial rules. A copy of the article can be found here.

2018 RFA Awards Still Outstanding

Despite the Commission’s award of 14 new licenses to applicants from the 2019 RFA, the results of the 2018 RFA are still pending. It has been nearly three (3) years since several rejected applicants filed suit against the state due to lack of transparency and endemic errors in the scoring process implemented by the Department of Health. Last November, a three-judge appellate court vacated the initial 2018 awards and ordered the DOH to develop a new rating system for applications and to increase transparency. The responsibility for reevaluating these applications has been transferred to the Cannabis Regulatory Commission. The Commission has stated that the 2018 RFA applications are still under review. Appellants recently wrote the CRC requesting information on resolving this three-year old matter, however there is no indication of when this review might be completed.

Cannabis Regulatory Commission Cannabis Informational Webinar

On Wednesday, October 13, 2021, the New Jersey Cannabis Regulatory Commission held an informational webinar. During the webinar, the Commission briefly explained the equity and safety provisions in the initial rules as well as providing general guidance for municipalities. The Commission also discussed basic application requirements and what preliminary steps businesses can take to prepare for applying. The biggest news from the webinar was likely the Commission’s statement that Class 5 Retail License holders will be permitted to provide delivery services for their own products without holding a separate Class 6 Delivery Service License. A recording of the webinar can be viewed here.

NJSBA CLE: Latest Developments In Cannabis Law

On Thursday, October, 28 2021 the New Jersey State Bar Association’s Cannabis Law Committee will be hosting a seminar to discuss The Latest Developments In Cannabis Law, including the Cannabis Regulatory Commission’s initial regulations for the industry. In addition to the personal use cannabis regulations, there will be a panel of township officials to discuss Municipalities and Town Councils, as well as a discussion of corporate and real estate transactions; whether that be the acquisition or disposition of a cannabis operation or the real estate considerations when acquiring real property for, and when leasing to or by, a cannabis operation.

Program Chairs are Joshua S. Bauchner, Esq. of Ansell Grimm & Aaron, PC, and Lisa Gora, Esq. of Wilentz, Goldman & Spitzer, PA. Speakers will include John Barree AICP, PP of Heyer, Gruel & Associates, Jack Fersko, Esq. of Greenbaum Rowe Smith & Davis, LLP, Mollie F. Hartman Lustig, Esq. of Cappuzzo, PC, Michael A. Hoffman, Esq. of The Hoffman Centers, PC, Mayor Ryan Martinez of Butler, Morris County, Ronald P. Mondello, Esq. of Law Offices of Ronald P. Mondello, Robert E. Schiappacasse, Esq. of Sills Cummis & Gross P.C, Mayor Domenick Stampone of Haledon, Passaic County, and Sarah Trent, Founder and CEO of Valley Wellness.

For more information and to register for the NJICLE Seminar – Latest Developments In Cannabis Law click here.

Notice of Privacy Incident

Ansell Grimm October 18, 2021

Ocean, New Jersey August 23, 2021 – Although unaware of any actual or attempted access or misuse of individual’s information, Ansell Grimm is providing notice to certain individuals of an incident involving limited personal information.

Ansell Grimm recently learned of suspicious activity occurring within employees’ email accounts. Ansell Grimm immediately took steps to secure the email accounts and commenced an investigation to determine what happened. The investigation could not confirm what emails or attachments within those accounts were viewed or accessed by an unknown actor. Therefore, in an abundance of caution, Ansell Grimm reviewed the impacted email accounts to identify personal information within those accounts. This review was recently completed and Ansell Grimm then immediately began reviewing records to identify address information for individuals.

Ansell Grimm determined, through its investigation, that the information potentially at risk included a limited number of individuals’ names, addresses, Social Security numbers, dates of birth, employee identification numbers, bank or financial account information, credit or debit card information, driver’s license or state identification numbers, user name within login information, electronic signature, medical information, or health insurance information.

While unaware of misuse of any personal information, beginning on June 25, 2021, Ansell Grimm began mailing or emailing notices to those potentially impacted by this incident, and provided information about the event and steps that can be taken to safeguard one’s information. Specifically, Ansell Grimm encourages impacted individuals to remain vigilant against incidents of identity theft and fraud by reviewing their account statements and explanations of benefits for suspicious or anomalous activity. Any suspicious activity should be promptly reported to the appropriate provider, insurer, or financial institution.

Ansell Grimm has established a dedicated call center for individuals to contact with questions or concerns or to determine if they are impacted. This dedicated call center can be reached at 855-867-0065, Monday through Friday from 9am to 9pm Eastern, excluding U.S. holidays.

Notice of Privacy Incident

Come see us at the CAI Expo on Oct. 21

Ansell Grimm October 6, 2021

AGA’s Community Association Practice Group will be exhibiting at the New Jersey Community Associations 2021 Annual Conference & Expo on October 21^st, 2021.

The 2021 CAI Conference & Expo will be held from 8:30 a.m. to 3 p.m. at The Event Center @ iPlay America located at 110 Schanck Road, Freehold, NJ.

CAI’s Annual Conference & Expo provides learning and networking opportunities for homeowners, managers and business partners. Registration is free for all homeowners and community association managers and includes complimentary breakfast and lunch, educational programs, and multiple chances to win $1,000 during the show (must be present to win).

When you are at the expo, please visit us at Booth #823. You can also contact David J. Byrne, Esq., if you wish to set up a meeting with one of our attorneys while you are at the conference. Mr. Byrne can be reached at djb@62q.f7d.myftpupload.com or by calling 609-751-5551.

Hudson Valley CAI In-Person Expo slated for September 30

Ansell Grimm September 16, 2021

Hudson Valley CAI Chapter President Stacey R. Patterson Esq., and the entire Hudson Valley Board is pleased to announce the return of our IN-PERSON Expo on Sept. 30, 2021 from 10 a.m. to 2 p.m. The Expo will be held at Homewood Suites in New Windsor, NY Our Hudson Valley vendors from attorneys to accountants, engineers to insurance agents, and everyone in between will be there to welcome back our loyal members and greet new members. The Expo promises to be filled with education and entertainment including interactive games, door prizes, and refreshments.

Ms. Patterson says: “I am looking forward to seeing familiar faces and getting acquainted with the new ones. It’s been way too long since we’ve been able to get together.”

Registration is free and open until the day of the event. Those who register prior to Sept. 23 are eligible for a $200 drawing.

Andrea White Joins Family Law Committee

Ansell Grimm September 15, 2021

Andrea B. White, Esq., a partner at Ansell Grimm & Aaron PC, has been appointed to a 3-year term on the Family Law Committee of the Monmouth Bar Association. The Monmouth Bar Association exists to uphold the honor of the profession of the law, to encourage cordial association among members of the Bar, to coordinate the activities of the members of the Bar and to advance the honor, welfare, service, and enjoyment of its members.

Richard Ansell Passes Away

Ansell Grimm September 8, 2021

In Memoriam

Richard Ansell

OCTOBER 28, 1942 – SEPTEMBER 6, 2021

Byrne set to speak at Webinar

Ansell Grimm August 12, 2021

David J. Byrne Esq., Chair of Ansell Grimm & Aaron’s Community Association Law Group, will be a featured presenter at the Community Associations Institute of New Jersey’s Wednesday, August 18^th, Webinar. CAI’s Webinar one-hour Webinar will begin at noon. Mr. Byrne’s presentation will focus on the rights of, and strategies available to, community associations facing demands for accommodations, emotional support and service animals.

Registration is free and currently open for all CAI-NJ members via the CAI-NJ website. Community association managers will receive 1 CEU credit for attending.

Ansell Grimm & Aaron Roundup July 2021

Ansell Grimm August 12, 2021

Mitchell Ansell Featured in Industry Magazine

Mitchell Ansell, Shareholder, and Chair of the Criminal Defense Department, recently was featured as a power player by Industry Magazine in their July/August 2021 issue. This inclusion provides an opportunity to more personally know a power player who prides himself on the lasting impact and positive influence he provides to clients.

Industry Magazine covers anything and everything of interest for influential tastemakers and trendsetters across New Jersey and New York, from fashion and entertainment to lifestyle and health, to travel and business. The article is available here.

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NJSBA Submits Report & Recommendations to the NJCRC

The New Jersey State Bar Association’s Cannabis Law Committee provided the New Jersey Cannabis Regulatory Commission (“CRC”) with a report and recommendations regarding the CRC’s implementation of the New Jersey Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”). The report covers a broad range of topics, from macro-issues like marketplace and licensing regulations to more micro-issues related to expungements and CREAMMA’s impact on family law matters. Both Joshua Bauchner and Zachary Windham (pictured) of AGA’s Cannabis Law Practice Group, contributed to the report and recommendations. A copy of the report is available here.

Michael Benedetto Closes on Ocean Block Lot Sale

Michael Benedetto, Managing Partner and President of the Firm, who also serves as the Chair of the Commercial Real Estate Department and the Corporate, Finance, & Banking Department, recently served as counsel to the Seller in an off-market sale of a parcel of property that sits approximately 300 feet from the Atlantic Ocean in Long Branch, New Jersey. The property was the last parcel for an ocean block assemblage of just over 1.8 acres. The purchaser of the property was PV Motel, LLC, an affiliate of Kushner Companies, who reportedly intends to construct an oceanfront hotel on the site along with three other lots which make up the assemblage.

Joshua Bauchner Featured in Commerce Magazine

Joshua Bauchner, a shareholder who serves as both Co-Chair of the Litigation Department and head of the Cannabis Law Practice Group, was featured in the July 2021 issue of Commerce Magazine as part of the article Cannabis: A Growing Business Sector in the Garden State? Josh was one of several influential attorneys from across New Jersey asked to discuss what this budding industry means for entrepreneurs right now. Commerce Magazine is the flagship publication of the Commerce & Industry Association of New Jersey. The article is available here.x

Ashley Whitney Files PBA Appeal with NJ Supreme Court

Ashley Whitney of AGA’s Woodland Park office recently filed an appeal with the New Jersey Supreme Court, challenging an opinion from the Appellate Division which upheld the termination of a police officer with no prior discipline for alleged violations of the Criminal Justice Information System through his use of full-disclosure vehicle registration searches despite the police department’s failure to identify a single full-disclosure search conducted without justification.

The Appellate Division’s decision may have a lasting impact upon the law enforcement community as the performance of searches by police has not been significantly addressed by New Jersey Courts since the decision in State v. Donis, 157 N.J. 44 (1998).

The decision is especially pertinent to the issues facing police as it comes on the heels of the Supreme Court’s decision in the matter of In re AG Law Enf’t Directive Nos. 2020-5 & 2020-6, 2021 N.J. LEXIS 486 (June 7, 2021), which upheld the New Jersey Attorney General’s Directives requiring the release of the names of police officers who receive major discipline.

Seth Rosenstein Appointed as FINRA Arbitrator

Seth Rosenstein of AGA’s Woodland Park and White Plains offices was recently appointed a FINRA Dispute Resolution Services Arbitrator. Having practiced in all aspects of securities class action litigation before state and federal courts throughout the United States, as well as representing Fortune 500 financial services companies in arbitration actions brought before FINRA arbitration panels, Mr. Rosenstein will now hear disputes subject to FINRA jurisdiction — which will supplement his unique perspective and experience representing aggrieved investors and financial services professionals. FINRA representation is one component to Mr. Rosenstein’s multi-disciplined practice, which continues to include commercial litigation, cannabis law, and disputes concerning real estate and home improvement contractors.

Roy Hibberd Counsels Insurance Company Acquisition

Roy Hibberd, corporate counsel in the firm’s Ocean office, recently provided legal counsel to McCue Captains Agency of Little Silver, NJ, in its acquisition by World Insurance Associates LLC. The acquisition was announced on July 1, 2021. As a Top 100 Insurance Brokerage, World Insurance Associates’ acquisition will provide McCue the opportunity to expand their national presence while continuing to provide personalized services in Property, Liability, Life and Benefits insurances for both businesses and individuals.

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Jennifer Krimko Helps Hillel Win Expansion Approval

Jennifer S. Krimko, Esq., Co-Chair of the Firm’s Land Use and Zoning Department, recently secured approval for an expansion of the Hillel School campus in Ocean Township, as well as the construction of a new, state-of-the-art firehouse for the Township’s Fire District, at no cost to the taxpayers. The approval includes the construction of: a new, approximately 56,613 square-foot, three-story high school building; approximately 15,872 square foot addition to the school’s early learning center building; and approximately 6,725 square-foot, new fire station building. Additionally, construction of tennis courts, a basketball court, new parking, drainage structures, landscaping, and related site improvements were also approved.

You can view the video of the Board’s decision, including a digital rendering of the expanded facility here.

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Cannabis CLEs

On July 22 Joshua Bauchner participated as an invited speaker for a webinar hosted by the New Jersey State Bar Association’s Cannabis Law Committee. The webinar, The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey, addressed the parameters set out by the New Jersey Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) and what those parameters mean for potential licensees.
The panel discussed the six classes of licensure, microbusinesses, impact zones, municipal land use, and anticipated regulations from the Cannabis Regulatory Commission (“CRC”).
Josh also moderated a CLE on August 5, 2021, as part of the NJ Society of CPA’s day-long Cannabis Conference. The panel will discuss “The Legal Lifecycle of a Cannabis Business.”

Ansell Grimm & Aaron is Hiring

Ansell Grimm & Aaron PC is seeking a Law Clerk to work in our Real Estate Department. For more information or to apply, please visit us on LinkedIn .

Cannabis Law Update

Ansell Grimm July 16, 2021

NJSBA Cannabis Law Committee Issues Report and Recommendations to NJ Cannabis Regulatory Committee

On Tuesday, July 13, 2021, the New Jersey State Bar Association Cannabis Law Committee provided the New Jersey Cannabis Regulatory Committee with a comprehensive Report detailing issues with the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”), and proposing recommendations to resolve those concerns. The Report was presented with the goal of clarifying apparent ambiguities, providing further transparency, and remedying apparent inconsistencies identified in CREAMMA.

In doing so, the Report identifies twelve (12) overarching topics on various issues of concern and provides a recommendation for each; including: (i) lab testing, (ii) regulation of cannabis, (iii) marketplace regulations of recreational cannabis, (iv) marketplace regulation pertaining to hemp, (v) licensing, (vi) microbusiness and conditional licensing, (vii) municipal/land use, (viii) taxes, (ix) taxes, (x) impact zones, (xi) acute impairment considerations, (xii) expungement, and (xiii) family law considerations.

Ansell Grimm & Aaron attorneys Joshua S. Bauchner, co-chair of the Cannabis Law Committee, and Zachary L. Windham, a committee member, led the effort in conjunction with Lisa Gora, co-chair, and Sarah Trent, secretary. The Report was informed by the contributions of numerous Committee members across multiple disciplines, as reflected in the appendix.

A copy of the Report is available here:
Report and Recommendations to
NJ Cannabis Regulatory Commission

The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey

On Thursday, July 22, the New Jersey State Bar Association’s Cannabis Law Committee will be hosting a webinar to discuss what you need to know about licensing in the State’s new recreational cannabis industry. The webinar will address the industry parameters set out by New Jersey’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) and what those parameters mean for potential licensees. Topics will include the six classes of licenses, microbusinesses, impact zones, municipal land use, and anticipated regulations from the Cannabis Regulatory Commission (“CRC”). You will hear from Jordan Asch, Esq. of Asch Legal LLC, Joshua S. Bauchner, Esq. of Ansell Grimm & Aaron, PC, Lisa Gora, Esq. of Wilentz, Goldman & Spitzer, PA, Charles Latini of L&G Planning, LLC, and Sarah Trent, Esq. of Valley Wellness.

For more information and NJICLE Webcast- The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey click here.

Ansell Grimm & Aaron’s Cannabis Law Practice helps clients, at every stage of their cannabis business’ development, to navigate the complex legal landscape including production, sale, use, regulation and legalization. Please contact Joshua S. Bauchner, Esq. (jb@62q.f7d.myftpupload.com) or Zachary L. Windham, Esq. (zlw@62q.f7d.myftpupload.com) at (973) 247-9000 for additional information.

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Client Alert: Municipalities’ Implementation Of CREAMMA
What You Need To Know

Ansell Grimm June 15, 2021

Q. When do we need to decide whether to opt in or out?
A. Municipalities have 180 days from the effective date (February 22, 2021) of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) to opt-out of specific cannabis license Classes, or by August 21, 2021.

Q. What happens if we do not make a decision before the opt-out deadline?
A. If no action is taken, Class 5 license activity (cannabis retailers) will be a conditional use in all commercial zones or retail zones and Class 1, 2, 3, 4, and 6 license activities (cultivator, manufacturer, wholesaler, distributor, & delivery respectively) will be permitted uses in all industrial zones. In effect, taking no action equates to opting-in.

Q. Can we choose to opt-out of specific license Classes?
A. Yes. A municipality may prohibit the operation of any one or more license Classes. However, the license Class(es) you do permit will fall under the default zoning requirements without additional municipal action.

Q. Can we prohibit adult-use cannabis establishments if we already have an Alternative Treatment Center dispensary in our municipality.
A. Yes. However, a prohibition ordinance could impact the Alternative Treatment Center’s ability to participate in the adult-use cannabis market depending on the license Class(es) you prohibit in the ordinance.

Q. Can we limit the number of licenses of a particular Class?
A. Yes. Municipalities can restrict the number of available licenses for each Class of license permitted in the Municipality.

Q. What sort of distance requirements can we place on cannabis licenses?
A. You can require that cannabis licenses be minimum distances from places like schools, houses of worship, childcare facilities, substance rehabilitation facilities, etc. You can tailor the requirements by cannabis license class or location, requiring licensees maintain a certain distance. You can also require that cannabis licensees be a minimum distance from other cannabis licensees and specify by license class.

Q. Can we regulate the signage/store front of a cannabis licensee?
A. Yes. You can regulate a cannabis establishment’s signage as you would any other business in your municipality.

Q. Can we create a local licensing process for potential licensees?
A. Yes. Municipalities can impose their own local licensing requirements as part of the restrictions on the number of cannabis licenses.

Q. Can we make state licensure a requirement for municipal approval?
A. No. CREAMMA dictates that a municipality shall notify the Cannabis Regulatory Commission that it either approves or denies each application forwarded to it. Therefore, municipal approval is a prerequisite to receiving a state license from the Commission.