What follows is a companion piece to this author’s participation in a panel discussion, entitled, “Cannabis Conundrum,” at the spring meeting of the (Urban Land Institute ULI) in Nashville Tennessee, April 17 through April 19, 2019.
“Conundrum” is indeed the appropriate word to describe the current state of the law in regard to the consumption of marijuana. In particular, our industry – hospitality goods and services – is acutely affected by the introduction of cannabis in this setting and the evolutionary nature of the applicable body of law.
The challenge to the hospitality provider is to develop an in-house policy and regulatory approach that balances the operator’s business objectives and the law against its relationship with its employees and invited guests.
Cannabis law is in a state of flux. As state law is concerned, a zero-tolerance policy may no longer be effective and in fact may expose an operator to legal action. The first point of analysis is federal law.
Marijuana, under federal law remains a Schedule I drug under the Controlled Substance Act (CSA) and is treated as having potential for abuse. Its derivative components, including CBD and THC, in any form are treated as illegal under the current scheme. The only permissible form of CBD is that which is derived from hemp, under .3 THC.
State law is another matter. In excess of 30 states have legalized the consumption of cannabis for medical purposes and 10 have approved it for recreational use. The body of law governing state activity varies greatly and is changing at a rapid pace.
As hospitality providers, any best policy framework needs to start with a thorough understanding of state law and a determination of the permissibility of medicinal vs. recreational legalization. What follows are “thinking points” for consideration and general best practice policies under the current state of the law as well as preparing for new developments under the law.
Hospitality providers must develop clearly articulated employee policies when it comes to marijuana use. Hiring and termination practices need to be established and communicated and memorialized for decision makers. Areas to consider are pre-employment drug testing under a medicinal regulatory scheme vs. a recreational scheme. It may be permissible to deny employment to a recreational user as opposed to a legitimate medical consumer of cannabis who has a prescription or state issued medical card. Importantly, on average, states seem to adhere to safety in the workplace. Consumption of marijuana while on duty may be treated the same way (generally) as consuming alcohol on the job…termination may follow. The critical takeaway is that all operators need to understand their own state(s) laws, design effective policies in-line with corporate culture and articulate those polices to all employees at every level. Articulation means documented policy guidelines and executed acceptance of the same from employees (have them sign jurat page stating that they have received, read and understand the company’s policies).
Guest accommodations should also be of paramount concern to the hospitality operator and an analysis similar to the above should be employed. However, in this arena there are other matters to consider including corporate culture, sales and marketing objectives and the general image the provider is portraying. Is the hospitality venue family-focused or is it something other? Balancing the guest experience of the cannabis consumer vs. non-consumer must be part of the equation. As example, assuming that recreational use is permissible, designated smoking areas should be considered. In the hotel setting, it may be advisable to designate certain floors as cannabis use floors and others not. Balancing the wants and needs of the non-consuming guest should be looked at. A guest code of conduct perhaps outlining permissible consumption activities and areas should be provided to consuming and non-consuming guests to either permit or avoid interaction depending on the individual guest’s wants. Lastly, providers need to consider examining their sales and marketing programs in this new paradigm. Creating messages that are welcoming to cannabis consumers and non-consumers should be worked through.
So, here we are, in a state of flux and change as it applies to cannabis consumption. Hospitality providers must educate themselves on permissible activities within the state(s) they operate, create employee and guest appropriate guidelines, effectively communicate those guidelines to all stakeholders and recognize that there is a learning curve in place.