Controlled Substances and Regulatory Law

Melanie Scroble Wins Blue Water Wave Award for Legal Professional of the Year

Ansell Grimm October 16, 2024

Ansell.Law is thrilled to announce that Shareholder Melanie J. Scroble was named Blue Water Wave’s Legal Professional of the Year. Blue Water Wave is an organization focused on peer-to-peer exclusive networking groups for legal and commercial real estate professionals.

Melanie’s award highlights character, excellence, and superior client relations. Clients described her as “a dealmaker who gets things done,” an “outstanding lawyer,” and “bright, loyal, upstanding, respected, and the very best at what she does.” Clients additionally praise her for having the “attitude of a consummate professional” and providing “innovative solutions to industry problems.”

A leader within the Firm, Melanie serves as the on-site managing shareholder of Ansell.Law’s Woodland Park office. She is a member of the Commercial Real Estate, Corporate, Finance & Banking, and Residential Real Estate departments. Throughout her career, Melanie has amassed an impressive track record and has become a trusted advisor for clients nationwide.

Specializing in complex commercial real estate matters, Melanie has successfully closed numerous real estate transactions, including acquisitions, dispositions, leasing, and financing of various commercial properties nationwide. Her expertise lies primarily in shopping centers, retail pads, multi-family apartment buildings, 1031 exchange transactions, and commercial financing and lending. Whether working with national REITs or first-time investors, Melanie is adept at building lasting relationships with her diverse client base. In addition to her practice, she is actively involved with the International Council of Shopping Centers and has been a roundtable speaker at their annual Law Conference.

As the cannabis industry has grown in New Jersey, Melanie has also developed niche experience navigating the challenges surrounding retail leasing matters. She is a valued member of the Firm’s Controlled Substances and Regulatory Law practice group.

New Jersey CRC Adopts Consumption Lounge Regulations

Ansell Grimm February 1, 2024

By Anthony Sango

On January 17, 2024, New Jersey’s Cannabis Regulatory Commission (CRC) adopted new regulations allowing cannabis consumption areas, commonly called consumption lounges. The regulations present a unique opportunity only seen in a few other legal states, including California and Colorado, the flagship states of cannabis legalization.

The new regulations allow the CRC to issue consumption lounge endorsements to both medical and recreational dispensary licensees and cannabis retailers, who may then host consumers in a casual setting to try their goods. The lounges can be either indoor and structurally enclosed or in an exterior structure. The CRC provides numerous requirements for indoor lounges, such as physically separating the lounge from the dispensary. For outdoor lounges, other CRC requirements apply, such as blocking the view from nearby sidewalks. Additional requirements apply to both indoor and outdoor lounges, but most importantly, the consumption lounge must be on the same premises as the dispensary that holds the license.

Other restrictions apply to consumption lounge endorsements, including their inability to serve food. The CRC did not explain why food sales are excluded at lounges, especially since cannabis enthusiasts are historically known for their appetites. Similarly, consumption lounges will not be permitted to serve alcohol – even if the licensee holds a separate liquor license. Interestingly, though, the new regulations also allow hotels, motels, and other lodging facilities to permit cannabis consumption in smoker guest rooms.

Much like cannabis licenses, the CRC gives local governments a great deal of authority to adopt ordinances or regulations that restrict or outright ban consumption lounges. However, the ordinances cannot conflict with the CREAMM Act. We can expect the same or greater setbacks and minimum distance requirements from consumption lounges and sensitive places, like schools, daycare centers, playgrounds, and houses of worship.

Local governments also have an opportunity to review consumption lounge applicants – even if the town or city allows consumption lounges. After a consumption lounge application is submitted to the CRC, the town or city determines whether the application complies with local ordinances and regulations. Then, the town or city can notify the CRC of its position. If the local government does not take a favorable position and denies the request for an endorsement, the applicant can demand a hearing and plead their case.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. Contact us if you have questions about this evolving area of law.

We Congratulate Our Client for Securing Its Latest New Jersey Cannabis License

Ansell Grimm January 19, 2024

Ansell.Law is delighted to congratulate its client, Mule Extracts LLC, on securing a cannabis license from the New Jersey Cannabis Regulatory Commission. Previously awarded a Conditional Class Two Manufacturer License, Mule Extracts recently obtained its Class Two Annual Manufacturer License, allowing it to operate in New Jersey. A highly nuanced and multi-step process, we guided Mule Extracts in obtaining both its early licenses and submitting the Conversion Application.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. Contact Kelsey Barber if you have questions about this evolving area of law.

Ansell.Law Elevates Seth Rosenstein and Tara Walsh to Partners

Ansell Grimm January 2, 2024

Ansell.Law is pleased to announce that Seth M. Rosenstein and Tara K. Walsh have been elevated to partners.

Seth enjoys a diverse practice handling litigation, controlled substances and regulatory law, and residential real estate matters. A savvy negotiator, Seth appears in state and federal courts and before the American Arbitration Association (AAA) and Financial Industry Regulatory Authority (FINRA) arbitration panels. He is licensed in New Jersey, New York, and Pennsylvania.

Before Seth joined Ansell Grimm & Aaron, he practiced in the Manhattan office of a national litigation firm. He earned his Juris Doctor from Benjamin N. Cardozo School of Law and his Bachelor of Arts from American University.

Tara specializes in criminal defense and municipal court defense and has taken several cases through trial. She has also handled high-profile criminal cases before the Monmouth County Superior Court Criminal Division. Tara frequently speaks on municipal court defense and criminal defense developments.

Dedicated to serving the greater New Jersey legal community, Tara is on the Monmouth Bar Association’s Municipal Court Committee and is an Inns of Court barrister. She also devotes significant time as secretary and board member of the Associate Board of Court Appointed Special Advocates for Children. Tara earned her Juris Doctor from New York Law School and her Bachelor of Arts from Syracuse University.

New Jersey CRC Proposes New Regulations for Edibles and Ingestibles

Ansell Grimm November 2, 2023

By Anthony Sango

On September 25, 2023, New Jersey’s Cannabis Regulatory Commission (CRC) released proposed regulations for the manufacturing and marketing of edible and ingestible cannabis products in the state. The proposed rules would allow Class 2 cannabis manufacturers to develop and offer an expanded range of products. The proposed regulations also seek to protect New Jersey consumers by extending federal, state, and local food-related health and safety standards to cannabis products.

The proposal represents an exciting expansion of New Jersey’s cannabis market. Soon, the New Jersey market will see the wide offerings of products found in the flagship states of cannabis legalization, like California and Colorado. The proposed regulations discuss edibles and ingestibles already commonly found in New Jersey dispensaries – such as pills and gummies – but provide several new categories, namely, syrups, single-serving beverages, oral suspensions, and shelf-stable foods. For shelf-stable foods, the proposal gives the example of “chocolates, …baked goods, butters, jams, and jellies.” Given the broad language used, New Jerseyans can expect much more, from cannabis-infused peanut butter to lozenges to ketchup.

THC Limits and Prohibition of Other Substances

However, these new categories are not without limitations. Each package cannot contain more than 100 mg in total of active THC, with each serving containing no more than 10 mg of active THC. Further, the regulation limits single-serving beverages to only 5 mg of active THC.

In addition to limits on the amount of THC an ingestible product may contain, the proposed regulations also establish strict prohibitions as to what these products cannot contain. Specifically, a finished product cannot contain alcohol, tobacco, nicotine, or a controlled dangerous substance. Manufacturers would also be prohibited from distributing products that require cooking or baking by the consumer or require sterile storage conditions.

New Health, Safety, and Packaging Standards

The proposal also features new health and safety standards aimed at protecting consumers. Manufacturers must obtain various certifications from the Department of Health and ensure that equipment complies with applicable health regulations. The proposed regulations further require manufacturers to educate their employees on preventing foodborne illnesses and ensuring safe food handling, including major food allergens. The proposed regulations also incorporate federal law by requiring compliance with the FDA’s “Generally Recognized as Safe” standard for ingredients.

If finalized in their current form, the regulations would make the packaging of cannabis products look much like the back of a box of macaroni and cheese. The packaging must include an ingredient list, providing every ingredient in descending order of predominance by weight or volume. Manufacturers must also apply a nutritional label to the packaging and list any major allergens found in the cannabis products. If the product needs refrigeration, the packaging must indicate “refrigerate after opening” and any timelines for consuming opened products. The proposed regulations continue to prohibit the marketing of cannabis products by using realistic or fictional humans, animals, or fruit. However, fruit and vegetable flavors are permitted, and manufacturers may package products with a cannabis leaf.

The CRC invites public comment at this link until December 15, 2023. If you have questions about the proposed regulations or would like assistance submitting a comment, please contact Anthony Sango at Ansell.Law.

Joshua Bauchner Presenting During the New Jersey League of Municipalities Conference

Ansell Grimm September 7, 2023

Shareholder Joshua Bauchner will join a panel of experts presenting “The Municipal Cannabis Matrix Reloaded” at the New Jersey League of Municipalities Annual Conference in Atlantic City, November 14-16, 2023. The largest municipal gathering in the nation, this conference provides New Jersey’s local government officials and professionals with extensive learning opportunities, meaningful networking, and a comprehensive showcase of the latest product innovations.

The panel will provide a brief introduction to municipal cannabis before a discussion with city leaders exploring what is and is not working in their cities. Joshua will share insights on how to avoid municipal cannabis litigation. The panel will also address a checklist for governing bodies to consider when drafting or amending cannabis ordinances, police enforcement, smoke-free laws, and cannabis taxation for municipal tax assessors and CFOs. Learn more and register here.

Joshua leads Ansell.Law’s dedicated Controlled Substances & Regulatory Law Practice Group. Our attorneys understand the laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. Controlled substance law remains a multifaceted and complex field with, at times, conflicting regulations from different governing bodies. We are prepared to assist in all aspects of this emerging field and are committed to helping our clients understand their rights and opportunities in this complex and evolving area of law. Please contact Joshua for additional information.

Joshua Bauchner Quoted in New Jersey Monitor Article

Ansell Grimm August 31, 2023

Shareholder Joshua Bauchner is quoted in a New Jersey Monitor article discussing the recent decision impacting New Jersey law enforcement officers’ rights to use cannabis when not on duty. The closely watched case of wrongful termination resulted in a win for police officers who want to use cannabis legally while off duty. The conflict between state and federal law makes this a complex and nuanced issue. Read the article.

Controlled Substances & Regulatory Law August Update

Ansell Grimm August 11, 2023

In the rapidly evolving area of controlled substances law, our attorneys are at the forefront of recent developments and important issues affecting business owners in this exciting space. Read below to learn more.

New Lawsuit Challenges Unconstitutional Bureaucratic Overreach by New York Cannabis Regulators

A new lawsuit challenges unconstitutional overreach by NY cannabis regulators that has delayed or denied dispensary licenses for hundreds of qualified applicants. Read More.

New York’s Cannabis Control Board Approves New Regulations for Select Cannabinoid Products

To curtail the largely uncontrolled New York market of hemp-derived cannabinoids, state regulators recently approved new regulations. However, these regulations are having an immediate negative impact on thousands of small businesses. Read More.

Ansell Law’s New York Controlled Substances and Regulatory Law Capabilities

New Cannabis License Categories Will Become Available in New Jersey

Beginning September 27, 2023, the New Jersey Cannabis Regulatory Committee (“CRC”) will open three new adult-use cannabis license categories- Wholesaler, Delivery, and Distribution- in the Garden State. Read More.

New Coalition Ups Pressure to Reschedule Cannabis From List of Controlled Substances

A new coalition of cannabis lawyers, researchers, activists, and businesses is ramping up pressure on the Biden Administration to either remove cannabis from the Controlled Substances Act’s list of controlled substances or reschedule it to a lower tier. Read More.

In Major Advancement, FDA Issues First-Ever Draft Guidance on Clinical Trials for Psychedelic Drugs

In a significant step that offers the promise of new medical treatments and advancements, the U.S. Food and Drug Administration issued its first-ever guidance for those wishing to study and test psychedelics for medicinal use. Read More.

Firm News

Joshua S. Bauchner and Kelsey M. Barber, two attorneys in our Controlled Substances and Regulatory Law Group, will present during the National Business Institute’s Marijuana Business Operations in New Jersey seminar on August 21, 2023. They will address critical human resources, labor, and employment issues affecting cannabis and marijuana businesses operating in New Jersey. Bauchner and Barber also will provide an ethics presentation exploring rules of professional conduct, the duty to pursue justice, attorney use of cannabis, and attorney ownership of cannabis businesses.

The full-day seminar will be offered live online on August 21, 2023, and available to view on demand. Learn more and register for this information-packed program presented by cannabis industry leaders.

Bauchner also contributed to the book “New Jersey Cannabis Regulation,” published by LexisNexis, which focuses on marijuana laws and regulations as interpreted by NJ courts. The book is available to order.

Ansell Law’s dedicated Controlled Substances & Regulatory Law Practice Group has an in-depth understanding of the laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. Controlled substances law remains a multifaceted and complex field with, at times, conflicting regulations from different governing bodies. Our attorneys are prepared to assist in all aspects of this emerging field. We are committed to helping our clients understand their rights and the opportunities in this complex and evolving area of law. For additional information, please contact Joshua S. Bauchner or Kelsey M. Barber at (973) 247-9000.

New York’s Cannabis Control Board Approves New Regulations for Select Cannabinoid Products

Ansell Grimm August 8, 2023

During a contentious assembly late last month, New York’s Cannabis Control Board (“CCB”) approved emergency regulations limiting the amount of THC allowed in products containing potentially intoxicating hemp-derived cannabinoids and banning some cannabinoids altogether.

Under the approved regulations, edible products must have a 15-to-1 ratio of CBD to THC and are limited to no more than 10 milligrams of THC per package and 1 milligram per serving. Retailers are also forbidden from selling products with more than 0.5 milligrams of THC to anyone younger than 21.

The new rules also ban Delta-8 THC, THC-A, and THC-O.

Until recently, companies selling hemp-derived cannabinoids could legally sell products containing the same amount of THC as those sold at licensed adult-use dispensaries.

New York regulators hope the move will ultimately curtail the largely uncontrolled market of hemp-derived cannabinoids, encompassing intoxicating delta-8 and delta-9 THC, alongside CBD. However, in the process, thousands of tax-paying small businesses throughout the State were suddenly rendered illegal, risking raids, seizures, fines, and closure. The ever-shifting regulatory landscape in the State continues to challenge operators seeking to engage in legal sales. More litigation against the OCM is sure to follow, further delaying the development of a lawful marketplace.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. We are committed to helping our clients understand their rights and opportunities in this evolving area of law.

Ansell Law’s New York Controlled Substances and Regulatory Law Capabilities

Ansell Grimm August 4, 2023

As one of today’s most rapidly evolving industries, lawyers in the cannabis space must be experienced in licensing, operations, and employment issues, including drug testing. These issues vary by state, and navigating the legal landscape can be challenging. Led by shareholder Joshua S. Bauchner, the attorneys in our Controlled Substances and Regulatory Law Practice Group are well-versed in this emerging area of law.

In addition to our strong foothold navigating New Jersey’s controlled substances industry, Ansell Law has a New York presence where we assist clients seeking a Conditional Adult-Use Retail Dispensary (CAURD) license. Different from medical dispensaries, CAURD license holders are the first retail dispensaries open for adult-use cannabis sales in the state of New York. Pursuing a CAURD license requires numerous considerations, including eligibility, the volume of applicants, state and federal legal issues, and necessary documentation.

Our attorneys actively monitor industry developments to best facilitate positive outcomes for clients in the cannabis or controlled substances industries. For those seeking to do business in New York or New Jersey, contact Josh with any questions about this emerging area of law.

Controlled Substances and Regulatory Law

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