A New Jersey appeals court has ordered the reinstatement of a lawsuit over plans to let cannabis retailers, consumption lounges, and delivery services operate in Highland Park, NJ, giving local residents another chance to state their objections. The appellate court also affirmed a decision by the trial judge rejecting arguments that New Jersey’s cannabis regulatory scheme and Highland Park’s ordinances allowing cannabis-oriented businesses are preempted by federal law.
Ryan Magee spoke with The New Jersey Law Journal about the ruling, noting that it affirms the status quo in terms of the conflict between federal and state cannabis regulation. “What they’re telling us now is it’s not impossible for New Jerseyans to comply with both the Controlled Substances Act and CREAMMA. Nearly every act that an individual or a cannabis business might undertake pursuant to CREAMMA will still subject them to exposure under federal law. And that’s kind of where the court hangs its hat. That’s been the reality of the cannabis industry nationwide. So, perhaps in that sense, it’s not as meaningful because it’s recognizing what the current state of affairs and status quo is nationwide. What we are seeking is a state court recognizing that dichotomy and stating that the two can coexist,” he said.
However, he also noted that there are signs from the federal government that it is taking a nonenforcement position with regard to cannabis following the federal Drug Enforcement Administration’s announcement that it would seek to reclassify marijuana from Schedule I, a category facing the strictest regulation, to Schedule III, which is less stringent. “To me, that’s not just a nonenforcement position, that’s trending towards full-fledged legalization,” Magee said. That move will “give federal legislators quite a bit of cover to stick their necks out further to say this is something we should do. Let’s go the distance and let’s legalize it and regulate it. That’s what most of us in the industry are hoping to see.”