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N.J. CANNABIS INDUSTRY FACES SHOWDOWN BETWEEN REGULATORS AND BIG WEED. TOP DEM
IS UNHAPPY.


 * Updated: Dec. 13, 2023, 8:53 a.m.|
 * Published: Dec. 13, 2023, 8:00 a.m.

 * 
 * 

By
 * Jelani Gibson | NJ Advance Media for NJ.com

New Jersey cannabis regulators last week once again fined a large cannabis
operator and chastised others for alleged union violations, while legislative
sources say the president of the state Senate has been unhappy with those moves
by the Cannabis Regulatory Commission and may seek to change how it’s
structured.

State Senate President Nick Scutari, D-Union, has mulled pushing a bill to
revamp parts of the commission — including possibly making it part-time — during
the state Legislature’s current lame-duck session, according to two legislative
sources with direct knowledge of the situation who were granted anonymity to
speak candidly about the issue.



One source, however, said it’s “going to be tough” to get this done before lame
duck ends Jan. 9 and the newly elected state Legislature is sworn in. The source
noted there may be ethical questions about potential changes.

If a bill isn’t passed by that date, it would have to be taken up again in the
new session. Scutari was not available for comment after a Senate voting session
Monday at the Statehouse in Trenton.

Scutari, who primarily authored the state’s cannabis legalization bill, feels
there has been too much “meddling and obstruction,” the source said.

This comes as commission members have sometimes acted against the recommendation
of CRC Executive Director Jeff Brown when favoring fines. In some of those cases
it cited recommendations from agency investigators. The commission can choose
the viewpoint of these staffers over higher ranking leaders such as Brown in
making decisions.

Scutari’s dissatisfaction with the commission comes after state Sen. Vin Gopal,
D-Monmouth, proposed the idea of abolishing the commission several months ago.
That suggestion has the support of some of the companies the commission is
fining.



ACLU Policy Director Sarah Fajardo said the group opposes any effort to weaken
the commission.

“We’re here to push back against that,” she said Thursday as a coalition of
groups rallied outside the Statehouse to urge lawmakers to pass social justice
bills. “We need the CRC, we need all of the oversight to make sure that cannabis
legalization actually reaches the folks who have been penalized and criminalized
for years.”

TerrAscend, which was fined $20,000 last week as the commission said it did not
provide adequate access for medical cannabis patients, decried the commission’s
fines.

“With the facts it is hard to see your actions are in the best interest of New
Jersey patients and I wonder if they might be motivated by another agenda,” said
the company’s Chief Legal Officer Lynn Gefen.

In the wake of Gefen’s testimony at last week’s CRC meeting, Chris Goldstein, a
regional organizer for NORML, a cannabis advocacy organization, told the
commission he supported its decision to levy the fine. Goldstein added that
large cannabis companies pushed out weed for medical patients at higher prices
in the Garden State while charging less in other states, including Pennsylvania.



“We’re talking about patients that are expected to pay three and four times as
much to the same companies for the same products,” he said. “Consumers are not
stupid.”

Last week’s decision to fine TerrAscend passed in a 3-1 vote, with Vice Chair
Sam Delgado dissenting and Commissioner Maria Del Cid-Kosso abstaining. In
September, the company was fined $100,000, also for alleged patient access
violations, with Delgado again as the sole dissenter.

Commission chair Dianna Houenou has stood behind fining companies and has
sometimes favored the opinions of staff investigators over top leadership,
praising their work.

“Our investigators take the time to interview complainants, review evidence and
put together detailed reports and the board recognizes these efforts and takes
investigators assessments seriously,” said Houenou, who has worked for the ACLU
and the Governor’s office.

One of the more vocal opponents against that style of has been Delgado. Prior to
his appointment, Delgado held corporate roles at Verizon and was a U.S. Marine
Corps officer. Both experiences are central to his philosophy in opposing big
fines — and in valuing Executive Director Brown’s opinions as the highest
ranking staffer.



The commission last week renewed another batch of licenses that included large
cannabis companies, but Houenou made clear she felt some companies were not
complying with provisions that required them to conduct collective bargaining in
good faith. The commission approved the companies with a strong indication they
could still be investigated.

The commission earlier this year voted against allowing the state’s largest
cannabis company, Curaleaf, from continuing to operate some of its dispensaries,
a vote taken after it closed its cultivation site in Bellmawr, cutting loose
some 40 employees.

But that action was promptly reversed as a politically connected former state
attorney general hired by the company strongly opposed it. Critics charged
political interference was at play — a criticism the current attorney general’s
office, which advises the commission and all state departments on legal matters,
has denied.

Houenou put companies on notice that the commission would look into potential
union violations.



“We put the commission’s rules in place for a reason — to say what we mean and
mean what we say,” she said at the meeting.

One of the companies singled out during last week’s meeting was Columbia Care,
which eventually received approval — but not before receiving strong criticism
from Commissioner Krista Nash.

“The bottom line, based on the many reports that I have reviewed, the workers of
Columbia Care voted to be represented by the UFCW (United Food and Commercial
Workers),” she said. “It hasn’t bargained in good faith with that union. It
hasn’t even come to the table.”

The UFCW is the largest cannabis union in the state and has repeatedly alleged
that the Columbia Care wasn’t adhering to rules of good faith bargaining.

In a statement, Columbia Care Senior Vice President Adam Goers said the company
would play by the state’s rules.

“Our employees are at the heart of our company, and we have a steadfast
commitment to ensuring fair labor practices and stand by our workers’ rights to
unionize,” he said. “We will continue to adhere to all legal requirements and
maintain our compliance with the CRC.”



Some legal observers and legislators say the state’s requirement about
collective bargaining may be hard to enforce because that is traditionally the
responsibility of the federal National Labor Relations Board. When asked about
the matter, the NLRB declined to comment.

NJ Advance Media staff writer Brent Johnson contributed to this report.

Jelani Gibson is content lead for NJ Cannabis Insider. He may be reached at
jgibson@njadvancemedia.com. Follow him on Twitter @jelanigibson1 and on
LinkedIn.



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