Medical and Recreational Cannabis

Cannabis is a perpetually evolving issue that impacts nearly all aspects of the insurance industry. As of May 2023, 38 states and the District of Columbia have legalized the use of medical cannabis. 23 of those states and the District of Columbia have legalized cannabis for recreational use, with recent polls indicating that around 88% of Americans support medical or recreational cannabis legalization.

Under the Controlled Substances Act of 1970, however, cannabis is classified as a Schedule I drug, along with LSD, MDMA, and heroin. Therefore, under federal law, it is illegal to use, cultivate, transport, sell, or possess any amount of cannabis, and doing so is punishable under federal law. The discrepancy between state and federal law has generated an internal conflict within the insurance industry. As state governments have legalized and regulated the use of cannabis, the need for insurance in the cannabis industry is growing indefinitely. But insurers are hesitant to underwrite policies for businesses that cultivate, sell, or transport cannabis due to an unclear terrain and conflicting legal precedent.

Background

Cannabis is a psychoactive drug extracted from the cannabis plant. The main psychoactive extract of cannabis is referred to as THC and its ingestion has both psychological and physiological effects. When cannabinoids stimulate receptors in the brain, users experience a “high” that can alter perceptions and mood, impair coordination and thinking, create feelings of euphoria and relaxation, and increase appetite. Users can also experience altered perceptions of time, intensified colors, sounds, and skin sensations. Other short-term side effects may include impaired motor skills, decreased short-term memory, dry mouth, red eyes, increased heart rate, and feelings of paranoia. Cannabis is the most commonly used illicit substance in the world and may be ingested through smoking, oils, edibles, or vaping.

CBD refers to a low THC, non-psychoactive component of the cannabis plant most often used to reduce symptoms of anxiety and disordered thinking without producing the same psychoactive high as high-THC extracts. CBD is subject to Federal Drug Administration approval under the Federal Food, Drug, and Cosmetic Act (FD&C Act). CBD medicines have been approved for epilepsy treatments, but are not legally allowed to be added to food or drink products.

Medical cannabis is most often used to treat chronic pain from seizures, HIV/AIDS, cancer, Parkinson’s, multiple sclerosis, and glaucoma. In addition, there is reasonable evidence to believe that ingesting cannabis alleviates moderate pain, reduces nausea and vomiting, increases appetite, and may reduce the amount of seizures experienced by epileptics. Through laboratory experiments, THC and CBD have also been shown to shrink brain tumors in lab rats. In addition to treatment of physical pain, medical cannabis can be prescribed to address the symptoms of anxiety, insomnia, depression, and addiction. More importantly, the use of medical cannabis has been used as a drug alternative to addictive pharmaceutical drugs associated with the opioid epidemic in the United States.

Under The Controlled Substances Act of 1970, cannabis, in any form, is classified as a Schedule I drug; This means that it is classified by the federal Drug Enforcement Agency as having a high potential for abuse with no accepted medical treatment.

Since 1970, state legislatures have passed their own laws regulating the use and distribution of both medical and recreational cannabis. The two most prominent states leading the endeavor have been California and Colorado. In the U.S., 38 out of 50 states and the District of Columbia have legalized medicinal cannabis in some capacity, with 23 states and the District of Columbia legalizing its recreational use. As a result, the cannabis industry has grown over the past four decades with a new set of questions for the insurance world regarding the sale, possession, cultivation, and transportation of cannabis.

Policy writers have been hesitant to engage with the cannabis industry, since doing so violates federal law. There are serious legal issues being contemplated by (re)insurers when considering whether to enter the industry. Property and casualty lines are heavily impacted by cannabis and the future outlook of insurance and the cannabis industry remains extremely unclear.

Injuries and Damages

There is general agreement that cannabis can be related to certain types of injury or damage.

Medical Risk

Cannabis is the third most used drug in the United States, right behind alcohol and nicotine. And while there is medical speculation that cannabis is a safer alternative, no long-term scientific studies have ruled out the possibility that cannabis may project some serious medical risks onto its users.

There are both psychological and physiological risks associated with cannabis use. Cannabis can impact memory and retention and impair learning patterns. Exposure to cannabis also puts users at risk for substance abuse, cognitive impairment, suicide, and other mental illnesses including schizophrenia, depression, and anxiety. Ingesting cannabis also increases heart rate and smoking it may be an irritant to the lungs.

Cannabis’s status as a “gateway drug” has been heavily contested for decades.
According to some theorists, cannabis use at a young age can desensitize individuals to the use of illicit drugs and prime the brain for heightened responses to harder lethal drugs, such as cocaine and methamphetamine, later in life. In this way, cannabis has previously been described as a gateway to continued drug abuse, causing greater personal and social injury. This claim is largely based off longitudinal studies and controlled laboratory experimentation on mice.

However, the status of cannabis as a gateway drug has been heavily contested as correlational rather than causational. Some argue that drug abuse is heavily dependent on availability of illicit drugs and socially-influenced factors, such as poverty, mental illness, and trauma, rather than on the recreational pleasure of cannabis. In the Netherlands, government officials praise their ability to have decreased the prevalence of cannabis use by creating a market for soft drugs, both destigmatizing the drug and deglamorizing its use. Additional research has shown that opioid abuse has decreased by approximately 25% between 1999 and 2010 in states with legalized medical cannabis policies. Similar studies have noted that states that have legalized cannabis have seen a decrease in workplace fatalities among young adult workers. Nevertheless, all parties in the debate would agree that further testing and evidence is required to determine the long-term influences of cannabis use and the impacts that legalization may have on drug abuse.

Citizen Harm & Spike in Traffic Incidents

The effect of THC on decision-making and motor coordination can make long-time users more likely to suffer injuries or die from motor vehicle accidents, creating a liability issue for insurers. Since Colorado legalized recreational cannabis in 2014, the state has seen an increase in emergency room visits related to cannabis usage. The number of cannabis-positive fatal crashes spiked, while the number of traffic collisions associated with cannabis quadrupled. One potential reason for these increases, however, might be the result of an increased willingness of patients and defendants to admit to cannabis use as stigma has decreased in legalized states.

Environmental Impact

The growth of cannabis can cause environmental damage that creates liability concerns. Pesticides used during cannabis cultivation can harm wildlife and infect water supplies. In 2016, officials in Hugo, CO found a local water supply was contaminated with THC from cannabis growth. While nobody was harmed, there is potential for private medical cannabis businesses to affect their local environments. Additionally, cannabis cultivation can have high energy costs given the advanced lighting, watering, and ventilation systems installed in cannabis growing facilities.

Legislation and Regulation

There is a large amount of legislation that exists in governing the possession, sale, cultivation, and transportation of cannabis. Regulations from the Department of Justice, the Food and Drug Administration, and the Trump administration provide contradictory analysis on the appropriate use of cannabis.

Cannabis was criminalized in the 1930s and was later classified as a Schedule I substance under the Controlled Substances Act. Any possession, consumption, or trafficking of cannabis – even for medical purposes – violates federal law, even in states where such use is legal. A 2014 federal spending bill contained a provision that prevented federal drug agents from raiding retail medical cannabis operations. This provision made this policy official after the Obama administration had started it in practice in 2013. In July of 2019, Congressman Nadler (D-NY) introduced the “Marijuana Opportunity Reinvestment and Expungement Act of 2019” bill to the House Judiciary Committee. The committee passed the bill, which would remove cannabis from the list of federally controlled substances, expunge federal cannabis convictions and arrests, and approve allocation of resources for communities affected by the war on drugs. The bill would also establish the Cannabis Justice Office and introduce a 5% sales tax on cannabis in states that preserve the legality of cannabis. The bill has been reintroduced in subsequent congresses but has yet to pass.

Despite federal law, the US Department of Justice (DOJ) has maintained an informal policy of non-prosecution for cannabis businesses, even after the Cole Memo was rescinded, in states that have legalized medical marijuana, assuming strong regulation at the state level. As specified by the DOJ, drugged driving, the involvement of criminal enterprises, drug use by minors, and diversion to other states remains subject to federal prosecution. However, unlike the provision governing medical cannabis, the DOJ’s policy governing recreational cannabis is not federal law and could be subject to change under new administrations.

The Federal Drug Administration (FDA) has not yet determined that cannabis is a safe or effective treatment option for any disease or condition, but it continues to support research into the medical uses of cannabis. Studies regarding the effectiveness of medical cannabis on some diseases are under review by the FDA. The 2018 Farm Bill provided protections form hemp and its derivatives Some states such as Connecticut and South Dakota, have based cannabis legislation on the stipulation of regulation by the FDA. But since the FDA has not approved cannabis for any medical or recreational purposes, these states have essentially eliminated the potential for its use.

In addition to DOJ and FDA regulations, there is also an extensive list of federal laws that are of concern to those insurers who are considering underwriting policies in the cannabis industry. Again, under the Controlled Substances Act and regardless of state legislation, any use, cultivation, sale, transportation, or possession of cannabis is subject to federal law. Therefore, the insurance and banking sides of the cannabis industry are also subject to federal violations of laws such as the Bank Secrecy Act, PATRIOT Act, and Anti-Money Laundering Act. An RAA supported bill, the Secure and Fair Enforcement (SAFE) Banking Act, would provide a safe harbor from these laws for the banking and insurance industries to provide their services to cannabis businesses operating legally under state law.

California

Under California’s November 2017 emergency regulations to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), the state’s cannabis businesses insurance requirements were clarified. Cannabis distributors applying for a license with the California Bureau of Cannabis Control must have proof of insurance. This must include a minimum of $2 million in commercial general liability insurance, an amount no less than $1 million for each loss, and a $5,000 surety bond required by the state.

Oregon

In June 2017, the Oregon Department of Financial Regulation issued DFR 2017-4, Proposed Bulletin on Coverage of Marijuana Items and Activities, to clarify insurance regulations for the state’s cannabis industry. The bulletin clarifies coverage for cannabis activities and items, to provide certainty to insurers and the insured on cannabis-related coverage and exclusions. Though cannabis is illegal under the Federal Controlled Substances Act, Oregon law permits insurers to provide coverage for cannabis items and activities within state boundaries. Generally, an insurance policy may not contain a provision that is ambiguous or likely to mislead the policyholder. In policy terms, general language excluding “illegal activity,” “contraband,” “criminal acts under federal law,” or “coverage inconsistent with public policy” provides inconsistent guidance to policyholders. Thus, it would be unlawful for the insurer to later deny the policyholder coverage based on such vague, exclusionary language. Bulletin DFR 2017-4 was effectively signed on June 29, 2017, providing a gradual implementation period of 90 days and 12 months.

Washington

Under WAC 314-55-082, Washington state requires a minimum $1 million in general liability insurance for all cannabis businesses. All licensees shall carry and maintain commercial general liability insurance, from an insurance company licensed to do business in the state, to cover claims for bodily injury, property damage, and personal injury that may arise out of licensed activities.

Liability and Insurance

Insurance and liability concerns arise as this industry moves into the popular domain, particularly concerning banking credit, property and casualty lines, and life and health insurance. A 2020 report by New Dawn Risk determined that there are currently only six insurers offering cannabis coverage.

Limited Access to Banking and Credit

Strict federal regulations have left financial institutions unwilling or unable to process transactions with cannabis businesses. Under the Bank Secrecy Act and the PATRIOT Act, financial institutions are required to establish strong anti-money laundering programs and ascertain the identities of clients and the nature of their businesses. Thus, financial institutions can only open accounts for cannabis businesses if potential clients comply with the DOJ’s policy of non-prosecution, leaving a large liability for these institutions if any aspect of a cannabis business or its clientele violates DOJ policy. Without financial support from banks and other financial services, many cannabis businesses must remain cash-based, making the industry difficult to regulate and limiting the tax revenue that states could collect from such businesses.

Reputational Risk

The reputational risk associated with cannabis could present significant problems for the industry. Many banks are even more unwilling to provide services to cannabis businesses because of the stigma attached to cannabis usage. Insurers must also consider the soundness of the medical science behind cannabis as a treatment for medical illnesses. Moreover, with conflicting federal and state rulings, insurers must ask themselves if there is even an insurable interest in the cannabis industry and whether the U.S. Government could possibly seize reserves held to pay claims.

Underwriting Policies

With constantly emerging research about the impact of cannabis use, underwriters are re-evaluating policies for medical cannabis patients based on medical risk. In the past, insurers that drug tested applicants treated cannabis and tobacco consumption equally in their underwriting practices, but studies have indicated that cannabis users are no more likely to suffer cancer, lung or cardiac diseases than tobacco smokers. Some insurers have begun offering different rates to cannabis users who do not smoke tobacco than those who do smoke tobacco to reflect the lower risks associated with cannabis usage. Insurers are emphasizing both how often an applicant uses cannabis as well as their medical history to establish rates.

Drug Testing and Workers' Compensation

Cannabis legalization has affected drug testing procedures and workers’ compensation. Procedures to measure cannabis use are complicated and time-consuming. Traditional urine tests can be inaccurate and unfair to chronic users. THC remains in the body for a longer period of time than most drugs; depending on frequency of cannabis use, positive tests indicate the presence of THC in the system without measuring its recency. As a result, infrequent users are less likely to fail drug tests, even when they have smoked more recently than frequent users.

Drug testing for cannabis is only reliable up to a certain point. Most companies will administer a urine test that will only indicate consumption up to around a 30-day period. An alternative to this form of testing is the collection of a hair sample, which can indicate consumption up to 90-days from the most recent date of consumption. These tests, however, only indicate consumption and do not measure the chronic use of cannabis. From this discrepancy, drug tests might be easily manipulated or avoided, creating a risk for liability for insurers of companies and patients. In states where medical cannabis is legal, a failed drug test can indicate either recreational or medical use. There are no reliable means of distinguishing a medical cannabis patient from a recreational user, and this can create a serious gray area when moving to terminate the employment of someone who has failed a drug test.

In light of the new developments about cannabis, some insurers have emphasized the need for additional drug testing for cannabis usage to properly assess potential risks. For underwriters, a positive test can indicate an undisclosed medical problem that cannabis is used to treat. In this case, insurers can re-evaluate risks based on information about the frequency and extent of cannabis use. Positive tests for recreational use can indicate a higher risk for drugged-driving accidents, which have become more common in recent years.

The effects of cannabis on workplace performance are unclear, so hiring and firing based on drug use may not actually help create a stronger workforce. In terms of workers’ compensation, cannabis legalization creates some interesting dilemmas. First, it remains to be seen whether workers can be fired for using cannabis to treat a medical condition. Also, one could argue that medical coverage for workplace injuries should include the costs of purchasing or growing cannabis. Medical cannabis is not currently mentioned in the Official Disability Guidelines (ODG), American College of Occupational & Environmental Medicine Practice Guidelines (ACOEM), the Occupational Safety & Health Administration (OSHA), or any other workers’ compensation treatment guideline.

Prescription Status and Dosage Standards

While licensed doctors cannot legally prescribe cannabis, they can recommend cannabis to patients in states where medical cannabis is legal. With proof of a medical referral, patients can then buy or grow cannabis for consumption from a separate cannabis business. The lack of cannabis dosage standards and the support of licensed medical professionals presents problems for medical cannabis users and insurers. Due to the lack of FDA approval, cannabis used for medical purposes can vary in purity and potency, making for less standardized administration.

Property and Casualty Lines

Property and casualty lines are left heavily impacted by the growing cannabis industry. The need for property insurance has grown faster than industry capacity. Cannabis dispensary operators need many different types of coverage addressing the possession, cultivation, sale, and transportation of cannabis. Growers need coverage for property, fire, product liability, workers’ compensation, business interruption, auto insurance, employee theft, cyber insurance, and earthquake coverage. But even operational dispensaries with business insurance have had difficulty getting insurers to accept their claims, with insurance companies citing a violation of federal law as the foundation of a refusal to pay for damages.

Life & Health

In addition to property and casualty lines, life and health insurance implications of the cannabis industry will need to be considered. Many doctors say that cannabis use has some real health and medical benefits. Should it be covered by standard health insurers and group medical? Similarly, those who use medical cannabis to treat chronic and debilitating conditions may live longer, potentially affecting the writing of life insurance policies.

Litigation

Litigation surrounding medical cannabis primarily focuses on disputes over growing, selling, and purchasing cannabis in states where its use has been legalized. Product liability suits have also been filed, accusing suppliers of “failure to warn,’ negligence, and intentional misrepresentation. Federal class action securities lawsuits against publicly traded cannabis businesses doubled from 2018 to 2019. Recent securities suits filed by investors aimed to hold the cannabis industry accountable for failure to disclose weak demand for the product or expected decline in revenue. Regarding insurance, there are inconsistencies in litigation depending on the state in question.

Trulieve Cannabis v. Florida Department of Health

Trulieve Cannabis is the largest medical cannabis licensee in Florida. They challenged the Florida Department of Health for instituting statutory caps on the number of Medical Marijuana Treatment Centers. Trulieve claimed that the statutory caps hindered the company from effectively distributing its treatment centers proportional to patients location, driving up the cost of operating in the state. The court decided that the establishment of statutory caps does not support voter-approved constitutional goals.

Gaddis v. Just Brands USA Inc.

A suit brought against JustCBD claims that the company has mislabeled their products, portraying more cannabinoids than the products actually contain. Testing found that JustCBD Liquid Honey Tincture contained 51.08% less CBD than advertised on the label. The class action lawsuits included claims of breach of express warranty, breach of implied warranty, unjust enrichment, fraud, and violation of the New York and Florida consumer protection laws. The suit is still pending.

Tracy v. USAA

In 2012, an individual filed suit against USAA Casualty Insurance Company in Honolulu, Hawaii, alleging insufficient coverage of stolen property. When the plaintiff’s legal cannabis plants were stolen from her property, she argued that her insurance policy with USAA covered “trees, shrubs, and other plants.” However, under federal law, replacement plants could not be granted. When the insurance company refused to reimburse the plaintiff for the cash value of the crops, citing the lack of an insurable interest in the plants, the plaintiff sued. The Hawaii District Court ruled in favor of the defendant and posited that federal law preempts the state’s medical cannabis law.

Green Earth Wellness Center, LLC

Green Earth Wellness Center is a medical cannabis dispensary and growing facility in Colorado Springs, Colorado. In 2012, Atain Specialty Insurance Company issued Green Earth an insurance policy covering commercial property and general liability. Atain denied Green Earth’s claim when smoke and ash from a nearby wildfire caused approximately $240,000 in total damages. Subsequently, the company filed suit. In 2013, Atain again denied coverage when Green Earth filed a claim for destruction of property after a robbery at its growing facility. In 2016, the court partially granted Green Earth’s claims, stating that Atain would be liable to cover the structural damage resulting from the robbery, and that the insurance policy’s claim to deny coverage of federal “contraband” was ambiguous given the legality of medical cannabis in Colorado. However, the Court also ruled that Green Earth’s cannabis plants were “crops,” not “stock,” therefore making them ineligible for insurance coverage.

Harborside Health Center

Cannabis collectives, dispensaries, and patients regularly find themselves in legal disputes over the contradictions that exist between the Controlled Substances Act (CSA) and state legislation. In 2013, the city of Oakland, California filed a lawsuit against the federal government for attempting to initiate civil forfeiture action against Harborside Health Center, a medical cannabis dispensary often considered one of the largest in the country. The DOJ entered into the legal battle with Harborside, and eventually the local government in Oakland, based on the theory that Harborside’s business violated CSA regulations. In 2016, the DOJ finally dropped its four-year litigation against Harborside and the city of Oakland. While the DOJ did not comment on the rationale for dropping the case, many speculate that new regulations limiting federal spending on cannabis-related civilian property seizures brought an end to this litigation.

Supreme Court Protection

Colorado has legalized cannabis for both medical and recreational use. While the state has seen tremendous growth of the cannabis industry since 2012, neighboring states have claimed that Colorado’s legalization has become a burden for their constituencies. In particular, authorities in Nebraska and Oklahoma have argued that thousands of pounds of cannabis were being exported to non-legalized states, harming the health of their residents and increasing criminal justice system costs. In 2016, two neighboring states, Nebraska and Oklahoma, attempted to file a lawsuit against the state of Colorado by way of the Supreme Court. The Supreme Court denied the motion to file a bill of complaint, upholding the legality of Colorado’s medical and recreational cannabis operations under state law.

Future Outlook

The question of cannabis use in the United States, while still unclear, is a growing, multi-billion dollar industry. Despite its growth and potential, the cannabis industry remains immature and presents unknown liability risks for insurers. Similarly, there exists a possibility for an upheaval of the Obama-era cannabis policies as the Trump administration contemplates changes to federal regulation. Nevertheless, the cannabis industry has made significant strides towards integrating cannabis into the insurance industry. In October 2017, the first admitted insurance carrier filed to provide coverage to California’s cannabis industry, with several more carriers stating their intent to file. As popular support to legalize cannabis increases, insurance providers will have the opportunity to shape and support this massive new industry.

In the News

2024

• Maine regulators reject utility proposal to report suspected marijuana grow operations to police - The Canadian Press (08/13/2024)
  Maine utility regulators unanimously rejected on Tuesday an electric utility's proposal to proactively report high consumption that signals a marijuana growing operation to law enforcement officials in an attempt to aid police crackdown on illicit operations.
• New Mexico regulators revoke the licenses of 2 marijuana grow operations and levies $2M in fines - Susan Montoya Bryan, The Associated Press (01/02/2024)
  New Mexico marijuana regulators on Tuesday revoked the licenses of two growing operations in a rural county for numerous violations and have levied a $1 million fine against each business. One of the businesses — Native American Agricultural Development Co. — is connected to a Navajo businessman whose cannabis farming operations in northwestern New Mexico were raided by federal authorities in 2020. The Navajo Department of Justice also sued Dineh Benally, leading to a court order halting those operations.

2023

• New York’s cannabis board votes to settle lawsuits that have stalled legal dispensaries - The Associated Press (11/27/2023)
  New York cannabis regulators approved a deal on Monday to settle lawsuits that have blocked recreational marijuana dispensaries from opening, as officials move to restart the state’s troubled legal market.
• Loosening restrictions on marijuana may not be boon for reform - Fenit Nirappil and David Ovalle, The Washington Post (11/22/2023)
  Federal authorities are weighing whether to stop classifying marijuana among the riskiest drugs, a move that cannabis advocates have long hoped would result in more research on its health effects, businesses having an easier time selling it and fewer people going to jail. But experts warn the August recommendation by the Department of Health and Human Services to strip marijuana’s designation as a Schedule I drug may not fulfill those hopes.
• A cannabis worker died on the job from an asthma attack. It’s the first reported case in US - Patrick Whittle, The Associated Press (11/16/2023)
  The U.S. cannabis production industry’s first reported occupational asthma death took the life of a worker in Massachusetts, federal health and safety officials said. The woman, 27, was working in a cannabis cultivation and processing facility when she experienced worsening work-related respiratory symptoms that ended in a fatal asthma attack in January 2022, officials said in a federal report published Thursday.
• Amwins Releases State of the Market Report: A Focus on the Cannabis Market - AMWINS (07/20/2023)
  Today, Amwins, a global distributor of specialty insurance products and services, released their State of the Market Cannabis report, providing up-to-date market intelligence on pricing, capacity and coverage trends across the cannabis insurance market.
• Oregon regulators recall weed strain found to contain arsenic - FOX 12 Staff, FOX 12 Oregon (07/13/2023)
  The Oregon Liquor and Cannabis Commission (OLCC) on Thursday issued a product recall for a batch of cannabis flower that tested positive for heavy metals including arsenic. Arsenic is highly toxic and can cause a number of health problems in humans including cancer.
• Co-founders feud over popular hemp-infused seltzer tied to N.J. medical cannabis company - Jackie Roman, NJ.com (04/07/2023)
  The co-founder of the popular hemp-infused beverage Kaló is suing New Jersey-based Hillview Med Inc. and CEO Kenneth VandeVrede, alleging the high-profile cannabis entrepreneur misappropriated funds, committed fraud and stole the brand.
• Mass. lawmakers propose cannabis reforms, decriminalization of psychedelics - Dan Adams, The Boston Globe (01/23/2023)
  When Massachusetts lawmakers rewrote the state’s marijuana laws in 2022, they focused largely on changing the legal cannabis industry. Now, it appears the emphasis will shift to consumers and workers.

2022

• Mr. Nice Guys, a D.C. cannabis store, sues city over money police seized - Karina Elwood, The Washington Post (10/17/2022)
  A D.C. cannabis company has sued the city for damages and to demand the return of roughly $70,000 seized as evidence in police raids last year that yielded criminal charges, but no convictions.
• Mass. marijuana regulators started investigating a Holyoke facility over safety complaints. Then a worker collapsed and died in a dust-filled room. - Dan Adams, The Boston Globe (10/16/2022)
  A Holyoke marijuana production facility was already under investigation by Massachusetts marijuana regulators over safety concerns when a 27-year-old worker there collapsed and died on the job in January, state officials said Friday.
• South Carolina cannabis fight persists in farmer’s lawsuit - James Pollard, Associated Press (09/26/2022)
  A South Carolina farmer is suing several state agencies in federal court on grounds they conspired to deny him his due process rights after authorities in 2019 destroyed his hemp crop, which was grown in unregistered fields.
• N.J. regulators reiterate that workers can’t be fired for a positive cannabis blood testN.J. regulators reiterate that workers can’t be fired for a positive cannabis blood test - Harold Brubaker, The Philadelphia Inquirer (09/15/2022)
  New Jersey’s 2021 adult-use cannabis law specified that employers are not allowed to fire workers or suspend them based solely on a positive blood test.
• Oakland church that gives cannabis and psychedelic mushrooms as communion sues over police raid - Summer Lin, The Los Angeles Times (08/17/2022)
  An East Oakland church that gives out cannabis and psychedelic plants as sacrament filed a civil rights lawsuit against the city of Oakland and the Oakland Police Department over a 2020 police raid.
• Insurers in cannabis suit want case heard in federal court - Albuquerque Journal, Insurance News Net (08/01/2022)
  Several New Mexico health insurers involved in a class-action lawsuit that argues they should bear the brunt of the cost of medical cannabis for patients are trying to move the case to federal court.
• California Eliminates Cannabis Cultivation Tax - A.J. Herrington, Forbes (07/05/2022)
  California’s regulated marijuana growers will see relief from some of the taxes that insiders say are stifling the industry with last week’s passage of a bill to eliminate the state’s cannabis cultivation tax. The legislation, Assembly Bill 195, was signed by California Gov. Gavin Newsom on June 30 after receiving broad bipartisan support in both houses of the state legislature the day before.
• New edible cannabis law catches some Minnesota regulators, lawmakers by surprise - Ryan Faircloth, StarTribune (07/01/2022)
  A state law effective Friday that legalizes edibles containing certain amounts of the cannabis ingredient that makes people high apparently took some state regulators and lawmakers by surprise — revealing that some who signed off on the legislation may not have fully understood it.
• Baron Cohen drops lawsuit over cannabis dispensary billboard - The Associated Press, The Associated Press (05/18/2022)
  Actor Sacha Baron Cohen has dropped his lawsuit against a Massachusetts cannabis dispensary that used an image of his character Borat on a billboard without his permission.
• New Mexico doubles workplace safety staff as cannabis industry launches - Robert Nott, The Santa Fe New Mexican (03/31/2022)
  In the past seven years, the state’s Occupational Health and Safety Bureau has conducted just eight on-site inspections of medical cannabis facilities.
• High court may hear workers’ comp marijuana case - Laura Brown, The Minnesota Lawyer (03/17/2022)
  The U.S. Supreme Court may soon weigh in on an issue that has caused headaches for Minnesota workers’ compensation carriers and employers: whether employees can be reimbursed for injured workers’ medical marijuana.
• Legalizing marijuana gaining momentum in Wisconsin - Scott Bauer, The Associated Press (02/09/2022)
  The push to legalize marijuana in Wisconsin enjoys some bipartisan support, but backers of bills that would make it legal for either medical or recreational use say it won’t happen this year.
• TVA says it won’t power Mississippi medical pot businesses - The Associated Press, The Associated Press (02/07/2022)
  One of the main suppliers of wholesale electricity in north Mississippi says it is uncertain whether it can provide power to facilities that grow marijuana for medical use.
• Marijuana legalization bill clears House panel in Delaware - Randall Chase, The Associated Press (01/26/2022)
  A Democrat-led House committee voted mostly along party lines Wednesday to release a bill legalizing recreational marijuana use by adults in Delaware.
• Omicron strains marijuana industry supply chain - Dan Adams, The Boston Globe (01/16/2022)
  Licensed marijuana firms cannot legally move pot products across state lines. But that doesn’t mean they’ve been spared the supply chain disruptions wreaking havoc on the rest of the business world.
• Oklahoma Pot Farm Slapped with RICO From Next Door Neighbor - Benjamin M. Adams, High Times (01/07/2022)
  Approaching new levels of snitchery, a next door neighbor in Oklahoma filed a complaint under the Racketeer Influenced and Corrupt Organizations (RICO) Act—the worst type of lawsuit—after they accused a cannabis farm of growing too close to the property line.

2021

• Michigan judge lets some marijuana in massive recall return to shelves - Craig Mauger, The Detroit News (12/05/2021)
  Michigan Court of Claims Judge Christopher Murray has lifted a portion of the state's widespread marijuana recall, saying a segment of it was "in all likelihood based upon an arbitrary decision."
• Bought marijuana recently? State regulators say there's a good chance you should return it. - Adrienne Roberts, Detroit Free Press (11/18/2021)
  What is likely the largest marijuana recall in Michigan's history is currently underway after the state's Marijuana Regulatory Agency issued a health and safety bulletin Wednesday evening for many products tested by Viridis Laboratories.
• Company challenges seizure of marijuana proceeds in Kansas - The Associated Press, The Associated Press (10/27/2021)
  A cash management company has asked a federal court to return nearly $166,000 in proceeds seized in Kansas from sales at Missouri medical marijuana stores.
• Boise man sues Oregon marijuana company after taking CBD drops laced with potent THC - John Sowell, The Idaho Statesman (10/19/2021)
  Jason Crawforth was headed home to Idaho last month when he became dizzy and disoriented while driving a motor home in northern Nevada.
• Minnesota court: Workers’ comp can’t cover medical marijuana - Steve Karnowski, The Associated Press (10/13/2021)
  Workers’ compensation for injured employees doesn’t cover medical marijuana because the drug remains illegal under federal law, the Minnesota Supreme Court ruled Wednesday.
• Amazon is encouraging pot smokers to get jobs as delivery drivers, a report suggests - Kate Duffy, Business Insider (09/02/2021)
  Amazon has advised the mom-and-pop companies operating its blue delivery vans to tell would-be drivers they won't be screened for marijuana use, Bloomberg reported Wednesday.
• California Court Upholds Employer’s Refusal To Hire Applicant Who Failed Pre-Employment Drug Test Due To Medical Marijuana Use - Stacey Lococo, JD Supra (05/06/2021)
  A federal court in California dismissed the disability discrimination claims of a job applicant who failed a pre-employment drug test due to medical marijuana use, holding that he did not sufficiently prove that he was disabled. More specifically, the court concluded that the applicant’s “subjective belief” that he suffered from “chronic back pain” was insufficient to establish that he was disabled for purposes of the California Fair Employment and Housing Act (“FEHA”) where he failed to “provide any supporting documentation . . . to substantiate the nature of his purported physical disability or any consequent restrictions or limitations on his ability to perform his work.” Espindola v. Wismettac Asian Foods, Inc., No. 2:20-cv-03702 (C.D. Cal. Apr. 28, 2021).
• Medical marijuana bill stalls; employees fired for legal use - Alyssa Feliciano, April Rubin, The Associated Press (04/28/2021)
  The first time Allison Enright, a Brevard County teacher, fell at work, doctors prescribed her opioids to deal with the pain.
• House Passes Marijuana Banking Bill With Bipartisan Support - Jarrell Dillard, Tiffany Kary, Bloomberg (04/19/2021)
  The U.S. House of Representatives passed a bill that would give state-authorized marijuana businesses easier access to banking services.
• NJ Supreme Court: Company must pay medical cannabis bills - The Associated Press, The Associated Press (04/13/2021)
  The New Jersey Supreme Court ruled in favor of medical cannabis patients Tuesday, voting unanimously that a construction company must pay for an injured employee’s medical cannabis bills.
• Medical pot dispensary New MexiCann closes after workers hurt in fire - Dillon Mullan, Yahoo News (04/11/2021)
  New MexiCann Natural Medicine is closing medical cannabis dispensaries in Northern New Mexico following an explosion in October that severely injured workers and led to criminal charges against the company's executive director.
• MTA worker plans $5M suit over denial of medical marijuana, says agency forced him into drug rehab classes - Stephen Rex Brown, New York Daily News (04/11/2021)
  An ailing MTA worker says the agency forced him into drug rehab classes alongside hardened addicts just because he took medical marijuana to treat chronic pain.
• New York State Legalizes Recreational Marijuana - Jimmy Vielkind, The Wall Street Journal (03/31/2021)
  New York Gov. Andrew Cuomo signed a bill on Wednesday to legalize recreational marijuana for adults, paving the way for retail sales in the state to begin in 2022.
• Worker gets 2nd court victory over medical marijuana claim - Kathy McCormack, The Associated Press (03/02/2021)
  A man who was prescribed medical marijuana to help with back pain has won a second victory in his legal battle over whether workers’ compensation insurance can reimburse him for the cost, the New Hampshire Supreme Court determined Tuesday.
• Recreational Marijuana Is Legal In New Jersey: What Employers Need To Know - Mark Diana, Michael Riccobono, Mondaq (02/25/2021)
  On February 22, 2021, New Jersey Governor Phil Murphy signed into law the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA). Among other things, the 240-page measure legalizes the recreational use of marijuana for adults age 21 and older and-unfortunately for employers-places significant burdens on companies doing business in New Jersey with respect to marijuana and the workplace. Among other things, CREAMMA prohibits an employer from taking adverse action against an individual solely because that person does (or does not) use marijuana recreationally and, in doing so, creates a new "protected class" under New Jersey law. CREAMMA also imposes on an employer the obligation to conduct a "physical examination" of an individual along with any drug test for marijuana and calls for employers to use certified "experts" to make decisions about an individual's usage of, or impairment from, marijuana when employers conduct such testing.
• After long wait, New Jersey moves ahead on recreational pot - Mike Catalini, The Associated Press (02/22/2021)
  A recreational marijuana marketplace, cannabis decriminalization and looser penalties for underage possession of the drug and alcohol became law Monday in New Jersey, more than three months after voters overwhelmingly approved a ballot question to legalize adult use of the drug.
• Marijuana mystery? Fewer older employees file workers’ compensation claims in states where cannabis is legalized - Andrew Keshner, Market Watch (02/16/2021)
  In the ongoing debate over marijuana’s full legalization, a new study offers proponents this potential payoff: cheaper workers’ compensation claims for injured workers.
• Evolution Of The Cannabis Product Liability Lawsuit - Ian A. Stewart, Mondaq (02/03/2021)
  Cannabinoid science and medicine are maturing contemporaneously with the cannabis products that have quickly gained traction with millions of consumers, and it is all happening while the Food and Drug Administration (FDA) silently waits on the sidelines ‒ at least for now.
• Michigan marijuana may be contaminated with mold, testing labs warn - Frank Witsil, Detroit Free Press (01/28/2021)
  Marijuana for sale in Michigan is contaminated with mold and yeast, a group of cannabis testing labs is warning.
• Emerging Issues in Cannabis and Privacy - Jeremy Meisinger, JD Supra (01/08/2021)
  Though the final results of the 2020 presidential race took a few days to become clear, it was obvious by the morning of November 4 that cannabis legalization had run the table: from deep red Montana, South Dakota, and Mississippi, to purple Arizona, and blue New Jersey, voters overwhelmingly favored state ballot initiatives to legalize adult use and medical cannabis. The same Election Day, California voters approved an aggressive expansion of the California Consumer Protection Act (the “CCPA”) (already among the strictest state privacy laws) into the California Privacy Rights Act, which envisages extensive privacy protections one typically associates with the EU’s General Data Protection Regulation.

2020

• Maine’s largest cannabis company sues to open state’s medical marijuana market to outsiders - Penelope Overton, Portland Press Herald (12/21/2020)
  The state’s largest cannabis company has asked the court to strike down the residency requirement in Maine’s medical marijuana law, making the same constitutional argument it used to successfully open the state’s recreational market to out-of-state investors earlier this year.
• House votes to decriminalize marijuana at federal level - Matthew Daly, The Associated Press (12/04/2020)
  The Democratic-controlled House on Friday approved a bill to decriminalize and tax marijuana at the federal level, reversing what supporters call a failed policy of criminalizing pot use and taking steps to address racial disparities in enforcement of federal drug laws.
• Court dismisses cities' lawsuit challenging cannabis deliveries in California - Patrick McGreevy, Yahoo News (11/18/2020)
  In a win for California’s struggling cannabis industry, a Fresno judge has dismissed a lawsuit by 24 cities seeking to invalidate state regulations allowing delivery of cannabis to homes in communities that have outlawed sales in shops.
• Reminder: Cannabis Companies Must Comply With Federal Workplace Anti-Discrimination Laws Too - Nathaniel M. Glasser et al, Mondaq (11/09/2020)
  Although cannabis (marijuana) remains an illegal substance under federal law, companies in the cannabis industry are not exempt from complying with federal laws in general. A recent flurry of complaints filed in federal courts and with federal administrative agencies have highlighted the obligation of companies in the cannabis industry to comply with Title VII of the Civil Rights Act of 1964 ("Title VII"), the Age Discrimination in Employment Act of 1967 (the "ADEA"), and the Americans with Disabilities Act (the "ADA"). These employers must also remain compliant with state and local anti-harassment training regulations. Not only are such trainings required in many jurisdictions, but when considering the factual scenarios in the cases below, one can readily understand how the trainings can help reduce the risk of exposure to claims of harassment and discrimination. While employers may find the bevy of federal, state, and local anti-harassment laws overwhelming, Epstein Becker & Green's Halting Harassment® program is 50-state compliant and designed to help employers ensure compliance. Our Halting Harassment® program can help new cannabis companies navigate the gamut of anti-discrimination laws, and avoid the pitfalls of compliance.
• N.J. workers' comp could soon cover medical marijuana costs - Amanda Hoover, NJ.com (10/26/2020)
  New Jersey lawmakers took another step toward making medical marijuana expenses eligible for workers' compensation and some other insurance coverage Monday.
• Explosion at New Mexico Cannabis Plant Critically Injures 2 - Associated Press, US News & World Report (10/17/2020)
  Two men are in critical condition after an explosion at a cannabis manufacturing facility in New Mexico
• United States: The ‘High' Court Denies Review Of Federal Overtime Case Involving Cannabis Employees - Jinouth Vasquez Santos, Mondaq (10/13/2020)
  The 10th Circuit Grants Re-leaf to Workers Seeking Overtime Under the FLSA, the 10th Circuit held that cannabis employers are not immune from federal overtime laws even though the cannabis sector is illegal under federal law.
• A Roman Catholic diocese in New York City’s suburbs Thursday became the largest in the U.S. to declare bankruptcy, seeking relief from a torrent of lawsuits filed after the state suspended the statute of limitations for suing over sexual abuse by priests. - Stacy K. Marcus, Michael S. Isselin, Mondaq (09/30/2020)
  Two recent actions involving sellers and marketers of cannabidiol (CBD) and cannabis prove the "wellness" industry is not always so chill.
• United States: Cannabis And CBD Companies Subject To Increased Prop 65 Exposure - Ian A. Stewart, Mondaq (06/29/2020)
  Cannabis and CBD companies must prepare for increased liability under California's notorious Proposition 65 statute.
• Will Cannabis Businesses Finally Gain Access to the Federal Banking System? - Alyssa Pratt, JD Supra (05/31/2020)
  On May 15th the House of Representatives approved the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act (H.R. 6800). This bill included the Secure and Fair Enforcement (SAFE) Banking Act of 2020 which would exempt financial institutions from Federal prosecution for providing services to cannabis-related businesses legally operating under their respective states’ laws.
• Employer Rights Go Up in Smoke: NYC Largely Bans Marijuana Testing of Prospective Employees - Dana Feinstein, Loren Lee Forrest Jr., JD Supra (05/28/2020)
  New York City recently amended its New York City Human Rights Law (NYCHRL) to ban drug testing applicants for marijuana, with exceptions for positions involving construction, police, commercial driving, supervision of children, and other occupations involving health and safety. Additionally, positions where testing is required by law or agreed to in a collective bargaining agreement are exempt from this law. Simply stated, employers still may test many prospective employees whose jobs entail heightened safety requirements or otherwise fall in the exceptions set forth in the new law, and employers still may test current employees. The law became effective on May 10, 2020.
• Justice Department Blocks ‘Essential’ Marijuana Workers From Bankruptcy Protection - Jonathan Randles, The Wall Street Journal (05/28/2020)
  The Justice Department is preventing struggling cannabis businesses and their workers from accessing bankruptcy to weather the coronavirus-related downturn, even in states that determine medical marijuana is an essential industry during the pandemic.
• Medical Marijuana Use Worker Protections Growing, Rulings Show - Daily Labor Report, Bloomberg Law News (03/06/2020)
  Companies should pay serious attention to legal protections for employees’ medical marijuana use in light of recent pro-worker court rulings, management attorneys told Bloomberg Law.
• Legal marijuana use still costs people jobs. A new California bill takes on the issue - Patrick McGreevy, Los Angeles Times (02/19/2020)
  California voters legalized pot in 2016. But for many seeking jobs in state government, cannabis use has become an obstacle to getting hired.
• https://apnews.com/a185d2130c7635b787399c847d99da3c Click to copy Official: Injury claims could rise with recreational pot - James MacPherson, Associated Press (02/04/2020)
  North Dakota could see a rise in workers’ compensation claims if marijuana is legalized, the state’s workplace safety agency told lawmakers Tuesday.
• Heavy marijuana users who started young drive differently — even while not stoned, study says - Dan Adams, Boston Globe (01/14/2020)
  People who started using marijuana heavily before they were 16 exhibit poorer driving performance than those who abstain — even when they’re not high, according to a new study that underlines the risks of adolescent cannabis consumption.
• Nearly $3.2 million in legal weed was sold in Illinois on the first day of sales, marking one of the strongest showings in the history of marijuana legalization - Ally Marotti, Chicago Tribune (01/02/2020)
  Customers spent almost $3.2 million on legal weed in Illinois on the first day of recreational marijuana sales Wednesday, marking one of the strongest showings of any state in the history of pot legalization.

2019

• California officials side with marijuana company in new fight over home deliveries - Patrick McGreevy, The Los Angeles Times (11/26/2019)
  Escalating a legal battle with California cities and counties over where marijuana can be sold, state officials are intervening in a new court fight over home delivery of cannabis in communities that have banned or restricted pot shops.
• Amazon fired me for failing drug test even though I’m a medical marijuana patient, N.J. man’s lawsuit says - Rebecca Panico, NJ.com (11/11/2019)
  A Parlin man is suing Amazon after he said he was fired from his warehouse job for failing a drug test — even though he claims he had a valid medical marijuana card.
• Medical pot on campus: Colleges say no and face lawsuits - Dave Collins, The Washington Post (10/24/2019)
  Colleges are becoming a battleground in the conflict between federal and state marijuana laws as students who use medical pot challenge decades-old campus drug policies.Colleges are becoming a battleground in the conflict between federal and state marijuana laws as students who use medical pot challenge decades-old campus drug policies. In states where medical marijuana is legal, students disciplined for using it are taking their schools to court. College officials argue they could lose federal funding for failing to follow federal law that labels cannabis an illegal drug with no accepted medical use.
• Do you want your surgeon smoking pot, even when it’s legal? A safety nonprofit urges employers to ban all marijuana use for those in sensitive jobs. - Lisa Schenccker, Chicago Tribune (10/21/2019)
  With recreational marijuana use about to become legal in Illinois Jan. 1, the National Safety Council is urging employers to forbid workers in safety sensitive jobs from using cannabis, even when they’re off the clock.
• Cannabis Employers Can’t Escape Wage Claims, Says Court - Legal Alert, Fisher Phillips (09/30/2019)
  A federal appeals court just ruled an employee for a cannabis business could bring a claim for federal wage and hour violations against his employer despite the fact that another federal law continues to criminalize the drug. The September 20, 2019 ruling from the 10th Circuit Court of Appeals washes away a defense that other businesses have tried to use to their benefit. The ruling only directly applies to cannabis-related employers in Colorado, Kansas, and other nearby states. However, all employers in this field should pay attention to this decision as it may soon apply to you.
• D.C. Council hears comments on marijuana allowance for workers - Sophie Kaplan, The Washington Times (09/25/2019)
  A representative for building contractors stressed Wednesday the importance of drug testing in her industry during a D.C. Council hearing on legislation that would bar local businesses from testing job applicants who use medical marijuana.
• Haze of confusion - Staff, Insurance Information Institute (06/25/2019)
  How employers and insurers are affected by a patchwork of state marijuana laws
• Legal marijuana is coming to Illinois as Gov. Pritzker signs bill he calls an ‘important and overdue change to our state’ - Robert McCoppin, The Chicago Tribune (06/25/2019)
  Gov. J.B. Pritzker on Tuesday signed into law a bill that will legalize marijuana in Illinois next year, marking a momentous shift in how the state treats drug use.
• Maryland cannabis regulators warn of lead contamination risk as they expand tests for heavy metals - Doug Donovan, The Baltimore Sun (06/14/2019)
  Medical cannabis regulators in Maryland expanded testing for heavy metals in marijuana products as they warned the public about the risk for possible lead contamination in popular vaping devices.
• FDA Considers Safety of Food Infused With Cannabis Extract - Thomas M. Burton, The Wall Street Journal (05/31/2019)
  The U.S. Food and Drug Administration held its first-ever hearing on the safety and marketing of chemicals from the cannabis plant, with food makers and others in industry urging the agency to approve the ingredient CBD and academics raising safety concerns.
• Dozens of doctors, scientists warn Mass. marijuana is ripe for ‘regulatory failure’ - Naomi Martin, The Boston Globe (05/30/2019)
  Dozens of local doctors and scientists criticized the state's marijuana regulatory system Thursday, saying the current rules don't adequately protect public health from high-potency cannabis products now sold legally at 19 stores around Massachusetts.
• Labor And Employment Deep Dive: Marijuana And The Workplace - Evan Gibbs, Above the Law (04/26/2019)
  The patchwork of marijuana laws across the U.S. has made this a confusing topic for just about everyone.
• Pot Patients get protection from being fired - Susan K Livio, NJ.com (04/21/2019)
  
  New Jersey workers can't be fired if they flunk a drug test because they are medical marijuana patients, a state appeals court has ruled.
  The case is likely to reverberate in workplaces for years to come because a state appeals court says medical marijuana patients - as long as they are not under the influence at work - are protected by the state Law Against Discrimination.
• In a first, L.A. sues unlicensed cannabis dispensary, seeking millions - James Queally, LA Times (04/17/2019)
  

  The city of Los Angeles is seeking millions in civil penalties from an unlicensed South L.A. cannabis dispensary accused of selling marijuana contaminated with pesticides, a move officials said Wednesday is intended to crack down on widespread illegal pot sales.

  The dispensary, Kush Club 20, was selling cannabis tainted with paclobutrazol, a fungicide frequently used to make golf turf more dense and verdant, which is classified as a Type II toxic chemical by the U.S. Environmental Protection Agency and is not approved for use on cannabis in California, a lawsuit filed Monday by the Los Angeles city attorney's office said.

  "Customers patronize illegal shops at their peril, and undermine businesses who play by the rules - and whose product is tested to protect buyers' health," City Atty. Mike Feuer said in a statement.

• Positive Workplace Drug Tests Hit 14-Year High, Driven by Marijuana Use - Claire Hansen, US News (04/11/2019)
  

  The rate of American workers testing positive in workplace drug tests hit a 14-year high in 2018, driven by an uptick in marijuana use, a new analysis found.

  Last year, 4.4% of workers and job applicants tested positive for drugs, a 5% increase over 2017 and the highest mark since 2004, according to an analysis of more than 10 million workplace drug tests released Thursday by Quest Diagnostics, one of the largest drug-testing laboratories in the country. Despite the increase, the rate remains significantly lower than that in the late 1980s and early 1990s, when rates were in the double digits.

• Michigan Court of Appeals Rules in Favor of Employer in Medical Marijuana Case - Ogletree Deakins , JDSupra (03/21/2019)
  On February 19, 2019, the Michigan Court of Appeals issued a ruling in Eplee v. City of Lansing, clarifying that the Michigan Medical Marihuana Act (MMMA) does not create an independent right protecting the medical use of marijuana in all circumstances, nor does it create a protected class for users of medical marijuana.” . . . . The plaintiff in this case, Angela Eplee, applied for and was conditionally offered a position with the Lansing Board of Water and Light (BWL). Subsequent to Eplee testing positive for tetrahydrocannabinol (THC), BWL rescinded its offer. Eplee sued under the MMMA, Section 4(a), which states, in relevant part, that a qualifying medical marijuana patient who has been issued and possesses a registry identification card may not be “denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau” for the medical use of marijuana. Eplee also asserted a breach of contract claim against BWL. The trial court dismissed the case pursuant to BWL’s motion for summary disposition for failure to state a claim. Eplee appealed. . . . In affirming the trial court’s decision, the Michigan Court of Appeals held that Section 4 of the MMMA “does not provide an independent rightprotecting the medical use of marijuana in all circumstances, nor does it create a protected class for users of medical marijuana.” Furthermore, the court held that because Michigan is an at-will state, a conditional offer of employment could be rescinded for any reason or for no reason at all.
• New Hampshire: High Court Rules Medical Cannabis Costs Reimbursable - Norml (03/14/2019)
  Costs specific to the state sanctioned use of medical cannabis may be eligible to reimbursement under workers' compensation laws, according to a ruling by the Supreme Court of New Hampshire.
  Justices ruled that the state Compensation Appeals Board erred in denying a reimbursement claim solely on the basis that cannabis is federally illegal. The Court failed to find any evidence to support the Board's claim that reimbursing the employer for the payment of medical marijuana would be "in express violation" of federal law.
• Medical marijuana user loses workplace case in Court of Appeals - Kathleen Gray, Detroit Free Press (02/20/2019)
  As Michigan moves toward the widespread availability of marijuana for recreational use, a Michigan Court of Appeals ruling Tuesday could reinforce zero- tolerance workplace rules against the use of marijuana even in cases in which a person has a valid medical marijuana card. . . . The court ruling came in a lawsuit filed by a Dimondale woman, who had claimed that the Lansing Board of Water and Light rescinded a job offer after she tested positive for marijuana, even though she had a medical marijuana card. . . . The case involved Angela Eplee, who was conditionally offered a job at the Lansing Board of Water and Light in 2017, as long as she passed a drug test. When her test came back positive for THC — tetrahydrocannabinol, the psychoactive ingredient that results in the “high” associated with pot — the board withdrew the offer of employment even after finding out that she had a medical marijuana card that allows her to use marijuana. . . . The board denied the positive drug test was the reason for withdrawing the offer, rather “the needs of the department” dictated the decision.
• Connecticut Court Rules in Favor of Medical Marijuana User in Discrimination Case - National Law Review (01/02/2019)
  A recent U.S. district court decision in Connecticut shows that drug testing applicants and employees in jurisdictions that authorize the use of legalized medical marijuana may present challenges. On September 5, 2018, Judge Jeffrey Alker Meyer of the U.S. District Court for the District of Connecticut issued an opinion granting a motion for summary judgment on an employment discrimination claim brought on the basis of a person’s use of medical marijuana as authorized by Connecticut’s Palliative Use of Marijuana Act (PUMA). . . . In the summer of 2016, Katelin Noffsinger underwent mandatory drug testing after accepting an offer to serve as the activities manager at SSC Niantic Operating Company, LLC d/b/a Bride Brook Nursing & Rehabilitation Center. Noffsinger disclosed during the pre-employment process that she was approved under PUMA to use medical marijuana to treat her posttraumatic stress disorder (PTSD). When she tested positive for tetrahydrocannabinol, a chemical component of marijuana, the facility rescinded its employment offer, citing the federal prohibition against marijuana use. Through her subsequent lawsuit, Noffsinger alleged discrimination pursuant to the anti-discrimination provisions in PUMA.

2018

• States with legal marijuana see rise in car crashes, studies find - Brett Molina, USA TODAY (10/19/2018)
  Car crashes were up as much as 6 percent in states where the recreational use of marijuana has been legalized, said two studies. . . . According to research from the Insurance Institute for Highway Safety and the Highway Loss Data Institute, the frequency of collision claims filed to insurers were higher in four states where marijuana is legal: Colorado, Nevada, Oregon and Washington. . . . The studies were presented Thursday at the Combating Alcohol- and Drug-Impaired Driving summit.
• Medical marijuana user's boss can drug test him, court says - Bill Gallo Jr, NJ.com (08/01/2018)
  A New Jersey business does not have to waive its requirement for mandatory drug testing for a worker who uses medical marijuana, a federal court has ruled. . . .Daniel Cotto Jr. of Bridgeton had sued Ardagh Glass citing the New Jersey Law Against Discrimination after the company wouldn't allow him to return to his job unless he submitted to breathalyzer and urine screenings. . . . Ardagh asked that Cotto's suit be dismissed, an action which was granted by Judge Robert B. Kugler sitting in U.S. District Court in Camden.
• Top court to decide on issue of medical pot and workers' comp - DAVE SOLOMON, New Hampshire Union Leader (07/09/2018)
  A case now working its way through the state Supreme Court could determine if insurers have to pay for medical marijuana in workers’ compensation cases, even though state law exempts health insurance companies from covering the cost of therapeutic cannabis. . . . On one side are attorneys for an injured worker who say he is entitled to the coverage because workers’ compensation operates differently than health insurance, and the Legislature did not exempt workers comp carriers from medical marijuana claims. . . . Lawyers for the insurance company, with the support of the N.H. Compensation Appeals Board, argue they would face prosecution under federal law if they paid for a federally illegal drug.
• Top court to decide on issue of medical pot and workers' comp - DAVE SOLOMON, New Hampshire Union Leader (7/9/18) (07/09/2018)
  A case now working its way through the state Supreme Court could determine if insurers have to pay for medical marijuana in workers’ compensation cases, even though state law exempts health insurance companies from covering the cost of therapeutic cannabis. . . . On one side are attorneys for an injured worker who say he is entitled to the coverage because workers’ compensation operates differently than health insurance, and the Legislature did not exempt workers comp carriers from medical marijuana claims. . . . Lawyers for the insurance company, with the support of the N.H. Compensation Appeals Board, argue they would face prosecution under federal law if they paid for a federally illegal drug. . . . Four of the five state Supreme Court justices recently heard the appeal of Andrew Panaggio, a former employee of the W.R. Grace Company who suffered a serious job-related back injury in 1991, and settled his workers’ compensation claim in 1997.
• Court: Maine employers don't have to fund medical marijuana - DAVID SHARP, AP (06/14/2018)
  Maine employers don’t have to pay for medical marijuana under the state workers’ compensation system because federal law supersedes state law, the state supreme court ruled Thursday. . . . The court concluded in a 5-2 decision that federal law takes precedence in a conflict between the federal Controlled Substances Act and the state medical marijuana law. . . . Existing case law demonstrates that an individual’s right to use medical marijuana under state law “cannot be converted into a sword that would require another party” to engage in conduct that violates current federal law, Justice Jeffrey Hjelm wrote for the majority
• Privacy protection a make-or-break issue for Canadian cannabis users and retailers, according to new report - PERRIN GRAUER, StarMetro Vancouver (06/05/2018)
  As cannabis legalization approaches, Canadian consumers say cybersecurity tops the list of “must-haves” in a legal market, according to a new report from Deloitte. . . . The report, which looks at a wide range of consumer behaviours and preferences related to the cannabis market, shows one-third of cannabis consumers would prefer to purchase pot online.
• “High” Stakes for Employers Dealing With Evolving Cannabis Laws - PATRICK MCMAHON, LABOR AND EMPLOYMENT LAW PERSPECTIVES (05/29/2018)
  The evolving legalization of marijuana for both medical and recreational uses continues to cause workplace issues for employers. Nine states and the District of Columbia have legalized recreational marijuana, and 32 states have legalized medical marijuana under varying circumstances. In addition, three more states have 2018 ballot initiatives considering either recreational or medical marijuana uses. Employers need to consider their position as the pendulum continues to swing towards marijuana legalization in various forms. . . . One aspect that is particularly troublesome is that if employers choose to adopt or maintain a zero-tolerance policy, they may face a shrinking pool of potential employees. For the three states that legalized recreational marijuana in 2017 — Nevada, Massachusetts, and California — saw increases of 43 percent, 14 percent, and 11 percent, respectively, for positive workplace marijuana testing. For some employers, screening for marijuana (among other drugs) is a requirement under federal law based on the services their company provides (e.g., medical personnel and airline pilots). But on the flip side, employers that choose to remove marijuana testing entirely risk serious workplace safety concerns for employees who may show up to work under the influence. With no accepted scientific way to test if an employee is currently under the influence of marijuana, these hazardous conditions can create all types of liability for the employer, depending on the employee’s specific job.
• Company files lawsuit challenging Orlando's medical marijuana rules - Ryan Gillespie, Orlando Sentinel (04/26/2018)
  A company that planned to open a medical marijuana dispensary south of downtown Orlando is challenging the city’s ordinance regulating such businesses, alleging it violates state law. . . . Surterra Florida, which operates five dispensaries statewide, filed the suit in Orange County Circuit Court last week and is asking a judge to rule Orlando’s law is “invalid and unenforceable.” Tallahassee Attorney William Hall, who filed the suit, is also seeking a temporary injunction to keep the city from enforcing the law while the court rules. . . . The company had already leased a storefront at 1743 S. Orange Avenue in the city’s SODO district when it was told by Orlando officials last month that it wouldn’t be able to operate there because of its proximity to a residential neighborhood.
• Final Mass. “adult-use” marijuana regulations require “Marijuana Establishments” to have liability insurance - Mike Sampson and Kristy L. Keiser, Reed Smith , Reed Smith (03/16/2018)
  As part of its “adult-use” marijuana regulations, which are expected to take effect next week, the Commonwealth of Massachusetts will require that “Marijuana Establishments” – which include cultivators, manufacturers, and retailers – procure commercial liability insurance in established amounts. Massachusetts’ new regulations are the most recent reminder that cannabis-related businesses must be aware of state regulations and their insurance requirements. . . . On March 9, 2018, Massachusetts’ Cannabis Control Commission (the “Commission”) “filed its finalized regulations” intended to govern the Commonwealth’s adult-use marijuana industry with the Commonwealth’s Secretary of State. The “regulations are not yet in effect. … The regulations will become effective when published in the Massachusetts Register.” They “are on track to be published on March 23, 2018.”

2017

• 'Conspiracy' suits might be legal threat for pot businesses - JOHN SCHROYER, (12/14/2017)
  Another legal threat for marijuana businesses across the United States has emerged over the past few months: civil suits involving anti-racketeering laws. . . . One such case — a nearly 3-year-old lawsuit in Colorado — is scheduled to go to trial in Denver in July. . . . Two similar suits have been filed against licensed MJ companies and numerous other defendants in Oregon and Massachusetts. . . . All three lawsuits allege that the licensed companies are in violation of the Racketeering Influenced and Corrupt Organizations Act, or RICO. . . . The suits also name "co-conspirators" — simply put, other entities that played some role in helping the plaintiffs operate their businesses. . . . The litigation threat came to light last June, when the 10th Circuit Court of Appeals in Denver issued a ruling that gave legal legitimacy to some of the racketeering claims made by a Colorado couple who alleged they were being harmed by a licensed marijuana grower's operation. . . . The ramifications of the ruling could be the first of many expensive legal fights for cannabis businesses. . . . For now, the ruling allows a civil RICO lawsuit to proceed against three licensed marijuana companies and three individuals in Colorado. . . . The upshot? A married couple in Colorado who own land adjacent to a licensed MJ grow stand to win damages upwards of six or seven figures because of the RICO violations.
• Insuring the Product Liability Risks of Cannabis - Ian Stewart, Wilson Elser (10/11/2017)
  

  Legal adult-use marijuana is associated with risks that may cause bodily injury and property damage. Many of these risks have been well documented and widely discussed in the media, including theft, fire, motor vehicle accidents and consumption-related injuries. The potential for an increase in the number and value of cannabis-related product liability claims and lawsuits, however, is of particular concern to the cannabis and insurance industries. The production, distribution and sale of an ingestible product that has psychoactive effects – accompanied by a wide range of anticipated labeling and marketing representations – will certainly result in robust product liability litigation.

• Wildfires are endangering parts of California's $2 billion marijuana industry - Rich Pedroncelli , AP (10/09/2017)
  

  More than a dozen wildfires are raging across Northern California, collectively burning through over 100,000 acres and destroying 1,500 homes, businesses, and other structures. The situation is already 0one of hte worse firestorms in California history . . . . The fires not only threaten the state's famous wine grapes in Napa and Sonoma — but also its marijuana crops. . . . California produces over half of the marijuana consumed in the US. The state's legal cannabis sales totaled approximately $2 billion in 2016 and is expected to reach $5 billion in coming years, according to an analysis by University of California-Davis researchers.

• More workers failing drug tests in Northern California - JULIE JOHNSON, THE PRESS DEMOCRAT (10/06/2017)
  

  A growing number of people in Northern California are failing drug tests required by their employers, prompting some local companies to rethink their drug-free workplace policies in an age of legal marijuana. . . .The number of drug detections are relatively small, but the statistics indicate more people are using cannabis following voters’ decision last year to legalize its recreational use in California. . . .Marijuana was detected in about 3 percent of workplace drug tests taken last year across coastal Northern California, about 1.5 times the national average, according to data from Quest Diagnostics, one of the nation’s largest clinical lab companies.

• Insurer says it shouldn't have to pay for medical marijuana - AP (09/14/2017)
  

  The Maine supreme court on Wednesday began considering whether a paper millworker left suicidal by narcotic painkillers should receive workers' compensation for medical marijuana. . . . It's the first time the court has considered the question of insurance reimbursement for medical marijuana. . . . Madawaska resident Gaetan Bourgoin won a ruling from the state's Workers' Compensation Board two years ago saying the paper mill's insurer must reimburse him for medical marijuana. He contends marijuana is cheaper and safer than narcotics.

• Connecticut Court’s First Decision on Medical Marijuana Use Discrimination Is a Buzzkill for Employers, National Law Review - National Law Review (09/01/2017)
  

  Connecticut law allows the use of marijuana by qualified patients for medicinal purposes and expressly prohibits employers from taking adverse employment actions because of an individual’s status as a qualified medical marijuana user. Federal law classifies marijuana as an illegal controlled substance and categorically prohibits the use of marijuana for any purpose. For employers in Connecticut with pre-hire drug testing requirements and policies on illegal drug use, this conflict has led to a cloudy haze as to what actions may be taken if a registered medical marijuana user fails an employment-related drug test.

• Legalizing recreational marijuana could boost crash rates, safety group warns - Fredrick Kunkle, Washington Post (08/02/2017)
  

  The Insurance Institute for Highway Safety says that studies by the Highway Loss Data Institute and researchers at the University of Texas at Austin point to an increase in crash risk in states that legalized the recreational use of pot. . . . The Highway Loss Data Institute — which, like the IIHS, is a nonprofit organization backed by insurance companies — reported in June that insurance companies received higher-than-expected collision claims in Colorado, Washington and Oregon after those states allowed people to buy marijuana for recreational purposes. The frequency of claims rose about 3 percent, compared with surrounding western states that continued to have laws on the books prohibiting recreational use of marijuana, the institute found.

• Worker fired over marijuana use may sue company for discrimination, Massachusetts Supreme Judicial Court rules - Michelle Williams, Masslive.com (07/17/2017)
  

  A woman let go from her position due to her use of medical marijuana may sue her former employer for discrimination, the Massachusetts Supreme Judicial Court ruled in a landmark decision released Monday.  . . . Christina Barbuto accepted a position with Advantage Sales and Marketing in 2014. After one day of promoting products in a supermarket, Barbuto was fired. A human resources representative informed her that she did not pass the drug test and that the company follows federal, not state law. . . . Barbuto suffers from Crohn's disease, a gastrointestinal condition that can cause weight loss. As a result of her condition, Barbuto has "little or no appetite," and struggles to maintain her weight, something made easier with marijuana use, according to court documents.  . . . After medical use of marijuana became legal in Massachusetts, her physician provided her with written certification of her condition, which qualified her as a medical marijuana patient. 

• Man says he was wrongly fired for using medical marijuana - The Associated Press, The Miami Herald (07/05/2017)
  A glass company worker said he was wrongfully fired for using medically prescribed marijuana to treat his chronic illness.
• Insurance study ties legal pot to boost in car crash claims - Solomon Banda, The Washington Post (06/22/2017)
  A recent insurance study links increased car crash claims to legalized recreational marijuana.
• California’s Insurance Commissioner Encourages Admitted Carriers to Insure Cannabis Risks - Ian A. Stewart & Dean A. Rocco, The National Law Review (05/24/2017)
  
  We attended a teleconference led by California Insurance Commissioner Dave Jones with 63 insurance industry stakeholders on May 22, 2017, to discuss insurance requirements set forth in California's proposed cannabis regulations. Commissioner Jones stated that his goal is to make sure all Californians, including emerging cannabis businesses, have insurance protection. By way of analogy, he compared the challenges of the emerging cannabis insurance market to those confronted by the rideshare and autonomous vehicle industries. "The department has an important role to play as new industries emerge and the market adapts to meet the changing needs of all insurance consumers," he said. The current proposed Bureau of Medical Cannabis Regulation (BMCR) insurance provisions state that a licensee "shall … maintain commercial general liability insurance and commercial umbrella insurance for bodily injury and property damage arising out of licensed activities," with coverage for bodily injury, property damage and personal injury with limits of not less than $1 million. The proposed regulation also states that the licensee "shall maintain the insurance required … from an insurance company authorized to do business in California by the Secretary of State."
• Can a worker be fired for using medical marijuana? Massachusetts SJC to consider question - Shira Schoenberg, MassLive (03/09/2017)
  The Supreme Judicial Court on Thursday will take up the question of whether a business can fire an employee for using medical marijuana outside of work. . . . The case, Cristina Barbuto vs. Advantage Sales and Marketing, pits businesses that want to set their own rules about drug use against workers who want to be able to treat their medical conditions with marijuana. . . . "It's an issue of people with disabilities who are trying to get medical treatment that the voters of Massachusetts and several other states decided was appropriate for them to be able to use, and whether employees should have to choose between their livelihoods and medical treatment that gets them relief for chronic pain or other medical issues," said attorney David Russcol, who represents a coalition of organizations that filed a brief supporting Barbuto, including the ACLU, the Union of Minority Neighborhoods, and lawyers' groups focused on employee labor law, gay rights and the rights of individuals with mental health problems.
• ALJ Holds that Employer’s Worker’s Compensation Carrier Must Pay for Employee’s Medical Marijuana - Christopher Lowe & Samuel Sverdlov, Seyforth Shaw (02/14/2017)
  Last month, a New Jersey Administrative Law Judge (“ALJ”) held that an employer’s worker’s compensation insurance carrier must reimburse an employee who was injured on-the-job for his medical marijuana. . . . On-January 18, 2010, New Jersey became the 14th state to enact legislation permitting the sale of medical marijuana. . . . . As with other states, when medical marijuana was introduced in New Jersey, New Jersey employers became fearful of the law’s effect on the workforce. However, an ALJ decision from last month gives new reason for employers, and their worker’s compensation carriers, to be fearful.

2016

• Some medical marijuana gummies removed from dispensaries over mold risk - Angie Leventis Lourgos, Chicago Tribune (12/24/2016)
  Some packages of medical marijuana gummies produced in Illinois have been pulled from dispensary shelves and destroyed because of what appeared to be mold, according to the Illinois Department of Agriculture.
• Legal Marijuana Poses New Problems for Employee Drug Testing - Rachel Emma Silverman , The Wall Street Journal (11/22/2016)
  A raft of new state marijuana legalization laws presents employers with hazy challenges when it comes to workplace drug testing. Companies that wish to maintain drug-free workplaces face a confusing patchwork of state and federal laws, and it is a gray area in some states whether employers can fire or discipline workers for pot use, say employment lawyers. In California, where medical marijuana is already legal, voters approved recreational pot on Election Day. Maine, Massachusetts and Nevada passed similar measures, while Arkansas, Florida, Montana and North Dakota legalized or expanded medical marijuana measures. These new laws make pot legal in some form in more than half the country—28 states. Meanwhile, it remains illegal under federal law.
• Medical marijuana will be HR issue, experts warn - Sam Kennedy , The Morning Call (10/13/2016)
  Pennsylvania businesses better prepare for medical marijuana because they're going to have to deal with a whole range of complications once their employees start using it. That was the consensus of the panelists who participated in a forum Thursday morning sponsored by the Greater Lehigh Valley Chamber of Commerce Under the law, businesses will not be able to avoid the issue simply by firing employees who use medical marijuana, noted Frank Troilo, a lawyer who specializes in workers' compensation at Zenith Insurance Co. "The real important thing about this," added Keya Denner, an employment lawyer at Norris, McLaughlin & Marcus, "is that it creates a new protected class among your workers."
• Poll: 62 percent of Mass. firms oppose marijuana legalization ballot measure - Donna Goodison, Boston Herald (03/29/2016)
  Employers are sounding the alarm about a proposed November state ballot question that calls for legalization and regulation of recreational marijuana in Massachusetts.
• In Medical Marijuana Battle: Three Things You Need To Know - Fisher and Phillips LLP , Fisher and Phillips LLP (01/14/2016)
  Employers started 2016 by claiming another victory in the ongoing battle against medical marijuana in the workplace.

2015

• Legalizing pot wouldn’t halt job tests - Jon Chavez, Toledo Blade (09/24/2015)
  If an Ohio ballot issue legalizing marijuana for recreational use is passed by voters on Nov. 3, the result definitely will mean workplace changes for employers in the state... But it won’t prevent employers from testing for the drug and disciplining or firing workers who test positive, an attorney who deals with workplace issues said Wednesday.
• Even where it’s legal, marijuana still a drag for truck drivers - Aaron Marsh, Fleet Owner (07/30/2015)
  Oregon is the latest of a handful of states to legalize recreational use of marijuana — some 23 states allow medicinal use — as of July 1.

2014

• Emerging Exposures: Medical marijuana - Munich Re (12/01/2014)
  The legal no-man’s land of marijuana has probably generated more questions than actual claims, but the lack of claims hardly means the issue is going to disappear any time soon.
• Medical marijuana patient sues after Rhode Island firm won't hire her for internship - Associated Press (11/12/2014)
  A graduate student has sued a textile company for refusing to hire her for a two-month internship because she uses medical marijuana to treat frequent and debilitating migraine headaches, a decision her lawyer calls discrimination.

2010

• Insurers See Potential in Broader Drug Legalization - insurancenewsnet.com (06/21/2010)
  Insurance agent Michael Aberle is excited to be on the ground floor of what he sees as an emerging market: the medical marijuana businesses.

Additional Items

• California blaze threatens 'Emerald Triangle' marijuana zone
  The largest wildfire in California history is threatening the country’s biggest marijuana-growing region, and authorities are warning people in the area to protect themselves - not their crops - if it comes time to evacuate.
• Great-grandma arrested at Disney World over CBD oil sues for millions
  A great-grandmother who was arrested at Walt Disney World last year for possessing CBD oil is suing Disney.
• CONNECTICUT FEDERAL COURT FINDS EMPLOYER LIABLE FOR REFUSING TO HIRE MEDICAL MARIJUANA USER
  Last week, the United States District Court for the District of Connecticut (the Court) granted summary judgment to a job applicant on her claim that an employer discriminated against her because of her approved use of medical marijuana pursuant to the Connecticut Palliative Use of Marijuana Act (PUMA). . . . Plaintiff Katelin Noffsinger suffered from post-traumatic stress disorder (PTSD) as a result of a car accident in 2012. In 2015, Noffsinger's doctor prescribed her medical marijuana to combat the PTSD's effects. Pursuant to PUMA's requirements, Noffsinger registered with the Connecticut Department of Consumer Protection as a "qualifying patient" to use medical marijuana.