Arkansas Cannabis Laws and Employment Issues

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Arkansas Environmental Energy and
Water Log Blog
http://www.mitchellwilliamslaw.com/blog
Three combined posts every business day addressing
federal/Arkansas legislation, regulation,
administrative/judicial decisions and personnel transitions
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What does the Arkansas Medical Marijuana Amendment
provide?
How are the cultivation and processing facilities
regulated from an environmental and safety standoint?
What are the rules applicable to medical marijuana
waste?
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Marijuana waste itself
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Marijuana waste such as solvents, oils, etc.,
generated in processing activities.
The various employer/employee issues raised by a
workforce that can now legally ingest marijuana if they
meet certain criteria (and how to address these issues)
4
 
Therefore, we will discuss key employment issues. We
also will focus on issues associated with marijuana
waste disposal such as:
Waste generated (variety of wastes may be
generated)
Disposal/treatment activities
Potentially applicable federal and state
environmental legal requirements
Contract Issues/Allocation of liability associated
with disposal
 
 
  
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Decriminalizes (from a state [Arkansas] standpoint)
certain use of marijuana
Establishment of regulation of cultivators and
dispensaries
Does not require “Employer to accommodate the
ingestion of marijuana in a workplace or an employee
working under the influence of marijuana.”
Outlines process pursuant to which an individual can
become a “Qualifying Patient” who can use medical
marijuana
Doctor certifies he/she has a “Qualifying Medical
Condition”
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DEA Schedule I controlled substance
Substances in this schedule have 
no currently
accepted medical use
 in the United States, a lack of
accepted safety for use under medical supervision,
and a high potential for abuse
Obama Administration Attorney General relaxed federal
enforcement
Trump Administration sending mixed messages
What will Biden Administration do?
7
 
Arkansas passage of the Arkansas Medical Marijuana
Amendment (“AMMA”) of 2016 set in motion fast-paced
efforts to put in place rules that will allow the cultivation,
processing, dispensing, and purchase of marijuana for
medicinal-related consumption.
Cultivation and dispensaries operating across the State
of Arkansas
Thousands of registry cards issued by Arkansas
Department of Health
The legalization of certain uses/cultivation of marijuana
in Arkansas is generating a host of legal issues including
healthcare, insurance, banking, OSHA, etc.
8
 
This is arguably particularly difficult for many employers
in the solid and hazardous waste and recycling
industries because of serious safety and environmental
issues:
Exposure to heavy machinery and dangerous
processes
May be long commutes to some facilities in a rural
state such as Arkansas
Presence of hazardous materials requires vigilance
More difficult to find young employees because of
strict drug policies
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Other laws create further confusion
Federal American Disabilities Act
Federal Drug Free Workplace Act of 1988
State Workers’ Compensation laws
Federal Department of Transportation Regulations
10
 
Presentation will identify issues that employers might
consider in view of potential employee use of medicinal
marijuana.
They may include any number of issues involving both
job applicants or current employees.
Suggestions for addressing issues arising out of
medicinal use of marijuana in the employment context
are provided.
First, we will discuss the environmental and other
regulatory issues associated with these facilities
Including impacts from an energy and water standpoint
11
Arkansas Agencies that Oversee
Medical Marijuana
Arkansas Medical Marijuana Commission (authorizes
cultivators, processors, and dispensers)
Alcohol Beverage Control (“ABC”)
Arkansas Department of Health
ABC administers regulations addressing facility security,
packaging, qualify control, structure design, etc. 
and
disposal of medical marijuana wastes
DOH addresses doctor certifications, qualifying patients, etc.
  
   
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State Regulation
Non-Hazardous (RCRA) Marijuana Plants waste (including
stalks, roots/soil) and unusable marijuana
Examples:
 
- Trim (leaves and other materials removed during a
 
   harvest
 
-  Shake (leaves fall off naturally)
Grow Medium
  
   
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a.
All medical marijuana waste shall be stored in a secure,
limited access area on the premises of the cultivation
facility or dispensary.
b.
All medical marijuana shall be rendered unusable
pursuant to the methods set forth in this rule prior to
disposal.
c.
All steps taken to render the marijuana unusable shall be
conducted under video surveillance by the licensed
facility’s video surveillance system
d.
All medical marijuana waste set for disposal shall be
properly weighed and recorded in the Inventory Tracking
System.
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e.
A cultivation facility or dispensary shall notify the
Division at least three (3) business days prior to
rendering the medical marijuana waste unusable
and 
disposing of it.  The notification shall include the
weight of the marijuana to be rendered unusable
f.
Medical
 marijuana shall be rendered unusable by
grinding and incorporating the cannabis plant waste
with other ground materials so the resulting mix is at
least 50% non-cannabis waste by volume.
“Division” is  a reference to ABC
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g.
Medical Marijuana waste rendered unusable by the
methods described in section (2), may be delivered
to a permitted solid waste facility for final
disposition.  Permitted solid waste facilities may
include:
Compostable Mixed Waste: Compost, anaerobic
digester, or other facility approved by the
Division
Noncompostable Mixed Waste: Landfill,
incinerator
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The following acceptable materials may be combined with
cannabis plant waste:
i.
Compostable Mixed Waste:  Cannabis waste to be
disposed of as compost, feedstock, or in another
organic waste method may be mixed with the
following types of waste materials:
1.
Food waste;
2.
Yard waste;
3.
Vegetable based grease oils;
4.
Agricultural
 Materials
5.
Biodegradable
 products and paper;
6.
Clean
 wood;
7.
Fruits
 and vegetables; or
8.
Plant
 matter.
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ii.
Noncompostable Mixed Waste:  Cannabis waste to
be disposed of in a landfill or another disposal
method, such as incineration, may be mixed with
the following types of waste materials.
 
1.  Paper waste;
 
2.  Cardboard waste;
 
3.  Plastic waste;
 
4.  Soil;
 
5.  Nonrecyclable plastic; or
 
6.  Broken glass.
 
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Medical Marijuana Wastes?
Examples from these categories
Trim and solid plant material used to create an
extract
Waste solvent (example – Butane making
concentrates via hydrocarbon extraction)
Laboratory waste
Extract that fails to meet quality testing
Used reactants
Residual solvents include butane, hexane,
alcohol, and ethanol which are byproducts of
extraction
  
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Medical Marijuana Wastes?
Examples (cont.) from these categories
Alcohols
Residual pesticides/fertilizers
CO
2
 cartridges
Cleaning solution
Lighting ballasts
Hydroponic waste
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Nutrients (significant phosphorous,
nitrogen, calcium and zinc)
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Wastewater
Light bulbs ([mercury] grow lights) 
 
 
 
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Energy Issues
A significant topic in states already allowing cultivation is the energy
impact of cultivation.
2000-3000 Kilowatt hours of energy per pound of product.  (NPCC)
The publication 
Utility Dive
 quotes Mr. Pete Rumsey, Executive Vice
President of Business Development at Lighting Science, who states:
Cannabis is one of the most energy-intensive industries
in the world.  Statistics show that one percent of all
electricity used in the United States today is used by
indoor marijuana growers, to the tune of almost $6 billion
annually.
 
The same publication notes that growing four mature marijuana
plants consume about as much power as running 29 refrigerators
around the clock.
 
  
 
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Energy Issues
Why are cultivation facilities motivated regarding energy
conservation?
Highly competitive industry
Margins decreasing
Energy is one of the largest cost components for
cultivation/infusion facilities
 
  
 
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Energy Issues (cont.)
Energy is consumed by cultivation activities and
processes such as:
Intense lighting (10,000 watt grow lights)
High pressure sodium
Ceramic metal halide
Light emitting of diode
Continuous air conditions (climate control)
Intricate
 ventilation systems
Water pumps and purifiers
Heaters for drying and curing marijuana
Extraction equipment filters
State of the art security measures
CO2 injection
High powered compressors (extraction)
   
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Water Use
Cultivating and processing marijuana is water
intensive.
A facility tapping into a public utility or municipal
water line if among a concentration of such facilities
could be a material issue in terms of quantity used.
For purposes of producing high marijuana yields
influent water may be scrutinized for:
Total soluble salt
Proportion of sodium cations
Excessive concentrations of elements that curves
toxicity on ionic imbalance in plants
Bicarbonate anion concentration as related to
calcium plus magnesium cations
   
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Wastewater
Wastewater utilities  will need to evaluate
cultivating/infusion facilities’ wastewater streams.
Scrutinize pollutant concentration
Nutrient issues (Phosphates and Nitrates)
Biocides interfere with treatment
Facility practices to address potential wastewater
issues
Available agronomy practices to reduce pollution
Minimize/use best practices for reducing solvent
usage for processing plant material
Recirculating hydroponic system
Address/sewer entry points in cultivation rooms
   
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Wastewater (cont.)
Infusion/Extraction/Production
Relevant pollutants?
Prevent gaseous solvents like carbon dioxide,
propane or butane discharging into sewer system
wastewater
Solvents such as hexane, etc., maybe flammable
Fats, oils, and grease from edible production
High concentration or improper use of cleaning
agents
   
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Air
  
Odors (release of VOCs) from cultivation/processing
(odor control plans are required such as carbon filtration,
etc.)
Emission of volatile organic compounds associated with
extractions and infusions
Fermentation to produce C02 to accelerate plant growth
(creating CO, nitrogenoxides, PM, S02 and VOCs)
Natural Gas Fired Boilers/Emergency generators
   
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Service/Disposal Agreements
Potential liability for improper disposal of medical
marijuana wastes
Allocate liability in service agreements
Generator warrant/certification waste meets
definition of 
unusable
Use of waste profile
Provisions for indemnity, rejection, expense for
sending back, etc.
Note:  Landfills operating procedures may consider
need for immediate burial, etc., to prevent scavenging.
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1.
Pesticides/Fungicides/Insecticides/Herbicides Restrictions
 
a.  Utilized in various stages of cultivation and processing
 
b.
 
Labeling/use restrictions/requirements
    
i.  Federal Insecticide Fungicide Rodenticide Act 
 
   
(“FIFRA”)
    
ii.
 
States Implementing/Enforcing FIFRA regulations
2.
State Air Requirements
  
a.
 
Permitting
   
i.  Potential Emission Sources
    
A.  Boilers/Generators/Heating Units
    
B.
 
Processing/Use of Solvents for Extraction 
 
     
(volatile organic compounds)
  
b.
 
Odor Issues
 
  
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3.
 
Solid Waste Management Requirements
a.
Restrictions on availability of composting for
marijuana-related solid waste such as
vegetative material and used plant growth soil
b.
Restrictions on availability of landfills, transfer
facilities, or transport for marijuana-related
waste
 
4.
Hazardous Waste Management Requirements
a.
Marijuana processing and cultivation activities
can generate hazardous wastes (discarded
solvents, chemicals, etc.) triggering Resource
Conservation and Recovery Act (“RCRA”)
Subtitle C (or state equivalent) requirements
  
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5.
State Wastewater Requirements
a.
Clean Water Act/National Pollution Discharge Elimination
System permits for direct discharges from
cultivation/processing structures into waterbodies
b.
Clean Water Act/Pretreatment Requirements imposed on
cultivation/processing structures discharging into municipal
wastewater treatment plants
6.
Fire Codes
a.
National Fire Protection Association
i.
National Fire Protection Association (“NFPA”) task
group developing specific Chapter for
cultivation/processing facilities
ii.
NFPA draft report issued in Fall 2016 titled “Marijuana,
Growing, Processing and Extraction Facilities”
iii.
NFPA 58 (Liquefied petroleum gas)
b.   Local/State Fire Codes
  
   
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Key Issues Affecting Employers
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Cancer
  
Glaucoma
HIV/AIDS
Hepatitis C
ALS
Severe Arthritis
Crohn’s Disease
Ulcerative Colitis
PTSD
Tourette’s Syndrome
Fibromyalgia
Alzheimer’s Disease
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Also includes chronic or debilitating diseases
with enumerated severe symptoms including:
Intractable Pain
Severe Nausea
Severe Muscle Spasms
Seizures
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N
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If a physician provides a written certification of a
qualifying condition, the qualifying patient can use the
certification to obtain a registry identification card from
the Arkansas Department of Health
Once the Qualifying Patient Obtains a Registry
Identification Card, he/she can purchase and possess
up to 2.5 ounces of marijuana without threat of criminal
prosecution or adverse state actions
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Some job applicants and employees may produce a
medical marijuana registry ID card approved by the
Arkansas Department of Health in response to a failed drug
test.
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Non-compliance with the Arkansas Medical Marijuana
Amendment of 2016 (AMMA) can pose significant risks
for an employer.  It includes a non-discrimination
provision directed at employers.  The provision provides
that:
o
“An employer shall not discriminate against an
applicant or employee in hiring, termination, or any
term or condition of employment, or otherwise
penalize an applicant or employee, based upon the
applicant’s or employee’s past or present status as
a qualifying patient or designated caregiver.”
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Damages under the AMMA for an employment
discrimination claim based on an applicant’s or
employee’s past or present status as a qualifying patient
or designated caregiver is capped in accordance with
the statutory caps in the Arkansas Civil Rights Act.
Liability for back pay is limited to no more than two
years prior to the filing of an action and the period within
in which an applicant or employee can bring such an
action is one year from when the alleged discrimination
occurred.
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What if your employee has a registry card?
Two straightforward conclusions:
o
There is no protected right either from the state or
federal government to be under the influence in the
workplace.
o
Off-duty consumption of marijuana without a
registration card still illegal
o
Reasonable suspicion testing
The rest of the questions are more difficult.
39
 
 
Systemic Marijuana Side Effects
(THC)
Short-term memory
problems
Impaired thinking and ability
to perform tasks requiring
mental alertness
Loss of balance and motor
function (e.g., coordination)
Decreased ability to
concentrate
Changes in sensory
perception
Decreased reaction time
Increased heart rate
Increased blood pressure
Dry mouth
Increased appetite, thirst
Drowsiness
Anxiety, insomnia, panic
attacks
Hallucinations
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Carry-over impairment effect
Slow rate of metabolization
Remains in system for extended period
Easily accessible
Pervasive unlawful use
High rates of chronic and habitual use
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General Concerns
What do we mean by “medical marijuana”?  What would
be permissible? Oil? Edibles? Smoked?
Could impact workplace policies on:
Smoking
Possession at work
Whether it can be consumed during work time
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Safety Still Important
Costs of ensuring safe workplaces continue to
escalate, including due to risks such as distracted
driving, increased driving time, faster production
demands, etc.
Industrial, manufacturing and 
energy
 facilities have
particularly complex operations including those relating
to protection of environment, health and safety.
More injuries means increased workers’ compensation,
unemployment, and litigation costs
43
Employer Issues
Costs of drug-testing applicants, employees
Increased management training costs
Increased need for supervision, oversight
44
Key Questions Faced by
Arkansas Employers
Do employers continue to enforce their traditional
substance-abuse policies, or adopt a new approach for
dealing with employees who test positive for marijuana
in the workplace?
Does the Americans with Disabilities Act (ADA) protect
employees who claim discrimination based upon their
use of marijuana for a disabling medical condition?
      (Yes)
45
Key Questions Faced by
Arkansas Employers (Cont.)
Do employers violate the Occupational Safety and
Health Administration’s (OSHA’s) General Duty Clause
by allowing employees who use marijuana to perform
safety-sensitive jobs, and thereby create a workplace
hazard that OSHA standards seek to eliminate?
(irrelevant fun fact – note use of drones by OSHA and
LA DEQ
Do the Department of Transportation’s (DOT’s)
substance-abuse regulations trump state marijuana
laws? (Yes)
46
Key Questions Faced by
Arkansas Employers (Cont.)
Heightened level of concern when claimant returns to a
safety-sensitive occupation, such as driving or
construction, while subject to potential adverse cognitive
and psychological effects of marijuana?
Quantification of the amount of marijuana consumed by
claimant is not available through urine medication
testing, thereby limiting ability to determine if he or she
has consumed prescribed dose, or is in fact acutely
intoxicated
47
Key Questions Faced by
Arkansas Employers (Cont.)
Can an employer ban the use of marijuana by an
employee if it is permitted by state law - and if the
employee has a prescription?
Does an employer have the right to terminate an
employee who tests positive for marijuana, even if the
employee shows no signs of impairment on the job?
48
Conclusions
Employees shown to be “impaired” on the job may be
disciplined and discharged by an employer.
As we will discuss, Federal government
contractors/grantees subject to the Drug Free
Workplace Act of 1988 should continue to follow all of
the requirements of the Act, even in states permitting
marijuana use by employees
Employers subject to Department of Transportation
HAZMAT rules must recognize the continued ban of
marijuana use.
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Establish a Drug Free Workplace
o
Note: qualified medical marijuana users can still be
employed
Make jobs with specific safety sensitive tasks or related
to public health
Have a way of tracking job performance
Have an action plan for how you will respond to an
employee who is a medical marijuana user
50
The Arkansas Amendment
Employer Issues/Suggestions
Create Written Job Descriptions which Designate Safety
Sensitive Positions within your Organization?
The AMMA permits employers to “exclude a qualifying
patient from being employed in or performing a safety
sensitive position based on the employer’s good faith belief
that the qualifying patient was engaged in the current use
of marijuana.”
Safety sensitive position is defined as “any position
designated in writing by the employer 
as a safety sensitive
position in which a person performing the position while
under the influence of marijuana may constitute a threat to
health or safety.
51
The Arkansas Amendment
Employer Issues/Suggestions
Creating written job descriptions which designate certain
jobs as “safety sensitive positions” permits employers to
exclude job applicants and employees with medical
marijuana registry ID cards from those positions.
What are safety sensitive positions in the oil and gas
industry?
This will be particularly important for many positions/tasks
in the oil and gas industry.
Shape your policies around specific job tasks that would
not be allowed to perform.
52
The Arkansas Amendment
Employer Issues/Suggestions (cont.)
Review and Update Your Employee Handbooks, and Drug
Testing Policies and Practices?
Some employers use employee handbooks to provide
definitive guidance on workplace policies or rules.
Revise your employee handbook to address the use of
marijuana in the workplace.
Employee handbooks should make clear that employees
are not permitted to possess, smoke, ingest, or engage in
the use of marijuana while on the employer’s premises
during the hours of employment.
53
The Arkansas Amendment
Employer Issues/Suggestions (cont.)
Employees should not be permitted to be under the
influence of marijuana while on an employer’s
premises or during the hours of employment.
Modify definition of “under the influence” to comply with
Amendment
54
Laws and Regulations
The Drug-Free Workplace Act of 1988
o
Prohibits the possession and use of marijuana (and
other drugs) in the workplace if the employer has a
federal contract of over $100,000 or is a federal
grantee of any kind
o
Applicable to certain federal contractors and
grantees
o
Penalties include cessation of payment, termination
of contract/grant, suspension/loss of federal
contractor or grantee status
55
Laws and Regulations (cont.)
Drug Free Workplace Act of 1988 (cont.)
Six requirements
Publish a policy statement informing employees that it is unlawful to
have or use drugs in the workplace and the penalties imposed if they
do
Create a drug free awareness program to educate employee
Notify employees that employment on a federal contract requires the
employee to abide by the drug free workplace policy
Notify the contracting federal agency within 10 days of receiving
notice that any employee has been convicted of a criminal drug
violation in the workplace
Impose a penalty on employees convicted of drug violations or
require participation in a drug rehabilitation program
Make an ongoing good faith effort to maintain a drug free workspace
It does not mandate testing
56
Possible Employer Drug Policies
Drug “use” vs. “impairment”
o
THC levels in medical marijuana user vs. casual
user
Policy should address prescription medication that may
affect employee’s ability to work safely and
competently
Consequences for refusal to submit to test?
57
The Arkansas Amendment
Employer Issues/Suggestions
Review drug testing policies and procedures.
Under the AMMA employers may continue to establish
and implement a substance abuse and drug-free
workplace policy that includes a drug testing program
that complies with state or federal law and may take
action with respect to an applicant or employee under
such a policy
Such policies and procedures reinforces the employer’s
prohibition on the use of marijuana in the workplace and
communicates the consequences of either a positive
test for marijuana or an applicant or employee’s refusal
to be tested.
58
The Arkansas Amendment
Employer Issues/Suggestions (cont.)
Train Managers and Supervisors to Identify Employees
Under the Influence with a Good Faith Belief Sufficient to
Support the Administration of a Drug Test
Employers may only act against an employee so long as
they have a good faith belief that the employee possessed,
smoked, ingested, or otherwise used marijuana, or was
under the influence of marijuana, while on the premises of
the employer or during the hours of employment.
59
The Arkansas Amendment Employer
Issues/Suggestions (cont.)
Employers must demonstrate they have the necessary
“good faith belief” to warrant the administration of a drug
test before taking action against the employee.
Managers and supervisors should not rely on a good
faith belief alone to support taking action against an
employee.
The observations of the manager or supervisor should
be used to support the administration of a subsequent
drug test.
60
The Arkansas Amendment Employer
Issues/Suggestions (cont.)
“Good faith belief” means a reasonable reliance on fact
and can be based on observed conduct, behavior or
appearance, information reported by a person believed
to be reliable, or written, electronic or verbal statements
from the employee or other persons.
A manager or supervisor deciding whether to administer
a drug test to an employee must be able to identify not
only the source of the information on which he or she is
acting, but also why their reliance on the information is
reasonable.
61
Drug Testing Recommendations
Institute policy that requires employees to disclose use
of medications that may impair their ability to work if
this request is job-related and consistent with business
necessity
If an employee tests positive for marijuana, confirm that
employee is prescribed marijuana
62
The Arkansas Amendment
Employer Issues/Suggestions (cont.)
Businesses should also train their frontline supervisors
and managers to identify when an employee may be
under the influence of marijuana during their hours of
employment.
The observation of these physical symptoms supports
the administration of a drug test, which if positive
supports the employer taking action against the
employee assuming the proper policies are included in
the employer’s handbook.
63
Employer Issues/Suggestions
The Americans with Disabilities Act
Employers may prohibit current illegal use of drugs and
alcohol in the workplace and require that employees
report for duty without engaging in the unlawful use of
drugs
A positive test result establishes “current” use
Under federal law, medical marijuana use is considered
illegal drug use
64
Laws and Regulations
Americans with Disabilities Act (cont.)
o
Contains an illegal drug provision (exception for use of
Schedule I drug taken under supervision by a licensed
health care professional)
o
Employees are seeking accommodation for the
underlying disability that necessitates the use of medical
marijuana
o
Does the accommodation impose an “undue hardship”?
Nature and cost of the accommodation
Financial resources of the employer
Type of operation of the employer
Impact of the accommodation
Is there a connection between the medical screening and the
work performed?
o
Examples – airline pilots, school bus drivers
65
Employer Issues/Suggestions (cont.)
Health Coverage Issues?
Some states with medical marijuana laws expressly do
not require health insurance providers to reimburse for
medical marijuana
Arkansas Amendment does not require a governmental
medical assistance program or private health insurer to
cover medical marijuana unless federal law requires it.
66
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Federal Drug Free Workplace Act
o
Federal grant recipients and contractors must adopt a
zero tolerance policy for drug use and certify that he
workplace is drug free.
Publish a written policy and require employee consent;
Initiate awareness programs about dangers of drug
abuse and available counseling/rehabilitation;
Requires employees to notify employers of any drug-
related conviction; and
Make an ongoing good faith effort to maintain a drug-
free workplace.
*The Act does 
not
 require (or prohibit) drug testing.
67
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68
Laws and Regulations (cont.)
Occupational Safety and Health Administration (OSHA)
General Duty Clause
o
Maintain workplaces that are free from hazards
likely to cause death or serious physical harm to
employees
o
Impairment caused by marijuana could be
considered a hazard and a possible violation of
OSHA
o
Does legalization have the potential to increase
injury and citation risks?
69
Laws and Regulations (cont.)
OSHA-Post-Accident Drug Testing
o
Employers may conduct post-incident drug testing if there
is a reasonable possibility that employee drug use could
have contributed to the reported injury or illness.
o
However, if employee drug use could not have
contributed to the injury or illness, post-incident drug
testing would likely only discourage reporting without
contributing to the employer’s understanding of why the
injury occurred.
o
Drug testing under these conditions could constitute
prohibited retaliation.
o
Testing consistently reduces chances of OSHA retaliation
claim
70
Laws and Regulations (cont.)
U.S. Department of Transportation
o
Omnibus Transportation Employee Testing Act of 1991
Requires drug and alcohol testing of drivers, pilots, and
other “safety-sensitive” jobs that are under the domain
of the Department of Transportation (DOT)
The DOT prohibits the use of medical marijuana by
transportation workers including pilots, school bus
drivers, truck drivers, subway operators, ship captains
and fire-armed transit security workers
DOT’s Drug Alcohol Testing Regulation – 49 CFR Part
40 – “does not authorize ‘medical marijuana’ under a
state law to be a valid medical explanation for a
transportation employee’s positive drug test result.”
71
Laws and Regulations (cont.)
Department of Transportation
Pilots, bus drivers, truck drivers, train engineers,
subway operators, aircraft maintenance personnel,
transit fire armed security personnel, ship captains and
pipeline emergency response personnel, among others
No driver may report for or remain on safety-sensitive
duty while using any controlled substance
No driver shall report for or remain on safety-sensitive
duty after testing positive for unlawful drugs
72
Laws and Regulations (cont.)
Department of Transportation (cont.)
On 10/22/09, DOT issued a statement asserting that its
regulated drug testing program will not change based upon
the DOJ’s 10/19 statement
DOT regs do not authorize ‘medical marijuana’ under state law
to be a valid medical explanation for a transportation
employee’s positive drug test result. (DOT takes priority)
“Therefore, Medical Review Officers will not verify a drug test
as negative based upon information that a physician
recommended that the employee use ‘medical marijuana…’ It
remains unacceptable for any safety-sensitive employee
subject to drug testing under the Dept. of Transportation’s
drug testing regulations to use marijuana.”
73
Laws and Regulations (cont.)
Employers subject to DOT regulations should continue
to follow the DOT substance-abuse regulations and
testing obligations per the DOT Medical Marijuana
Notice of February 22, 2013, and the Recreational
Marijuana Notice of May 27, 2014.
74
 
Use still prohibited by U.S. DOT for CDL drivers (DOT
last month
 issued second clarification because the
occurrence of positive drug test results for CDL drivers
using these products in increasing.) (Medical Review
Officer conducting driver tests will not issue a negative
test result simply because the THC detected in a urine
sample was from legal marijuana or CBD oil.)
75
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Explore the implications of the Arkansas Medical Marijuana Amendment on cannabis management, employee-related concerns, and waste disposal. Learn about regulations, employer responsibilities, and legal aspects surrounding medical marijuana in the state. Dive into topics like cultivation regulations, waste disposal requirements, and federal vs. state laws concerning marijuana.

  • Arkansas
  • Cannabis Laws
  • Employment Issues
  • Medical Marijuana
  • Waste Disposal

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  1. Cannabis Laws and the Future of Cannabis Management (Including Employee Issues) 2021 Arkansas Recycling Coalition Conference and Tradeshow 1

  2. Walter G. Wright wwright@mwlaw.com Stuart Spencer sspencer@mwlaw.com Cara Butler cbutler@mwlaw.com 2

  3. Arkansas Environmental Energy and Water Log Blog http://www.mitchellwilliamslaw.com/blog Three combined posts every business day addressing federal/Arkansas legislation, regulation, administrative/judicial decisions and personnel transitions 3

  4. Topics to be Addressed: What does the Arkansas Medical Marijuana Amendment provide? How are the cultivation and processing facilities regulated from an environmental and safety standoint? What are the rules applicable to medical marijuana waste? - Marijuana waste itself - Marijuana waste such as solvents, oils, etc., generated in processing activities. The various employer/employee issues raised by a workforce that can now legally ingest marijuana if they meet certain criteria (and how to address these issues) 4

  5. Therefore, we will discuss key employment issues. We also will focus on issues associated with marijuana waste disposal such as: Waste generated (variety of wastes may be generated) Disposal/treatment activities Potentially applicable federal and state environmental legal requirements Contract Issues/Allocation of liability associated with disposal 5

  6. Medical Marijuana Constitutional Amendment Decriminalizes (from a state [Arkansas] standpoint) certain use of marijuana Establishment of regulation of cultivators and dispensaries Does not require Employer to accommodate the ingestion of marijuana in a workplace or an employee working under the influence of marijuana. Outlines process pursuant to which an individual can become a Qualifying Patient who can use medical marijuana Doctor certifies he/she has a Qualifying Medical Condition 6

  7. Marijuana is still illegal at the Federal level DEA Schedule I controlled substance Substances in this schedule have no currently accepted medical use in the United States, a lack of accepted safety for use under medical supervision, and a high potential for abuse Obama Administration Attorney General relaxed federal enforcement Trump Administration sending mixed messages What will Biden Administration do? 7

  8. Arkansas passage of the Arkansas Medical Marijuana Amendment ( AMMA ) of 2016 set in motion fast-paced efforts to put in place rules that will allow the cultivation, processing, dispensing, and purchase of marijuana for medicinal-related consumption. Cultivation and dispensaries operating across the State of Arkansas Thousands of registry cards issued by Arkansas Department of Health The legalization of certain uses/cultivation of marijuana in Arkansas is generating a host of legal issues including healthcare, insurance, banking, OSHA, etc. 8

  9. This is arguably particularly difficult for many employers in the solid and hazardous waste and recycling industries because of serious safety and environmental issues: Exposure to heavy machinery and dangerous processes May be long commutes to some facilities in a rural state such as Arkansas Presence of hazardous materials requires vigilance More difficult to find young employees because of strict drug policies 9

  10. Medical Marijuana Other laws create further confusion Federal American Disabilities Act Federal Drug Free Workplace Act of 1988 State Workers Compensation laws Federal Department of Transportation Regulations 10

  11. Presentation will identify issues that employers might consider in view of potential employee use of medicinal marijuana. They may include any number of issues involving both job applicants or current employees. Suggestions for addressing issues arising out of medicinal use of marijuana in the employment context are provided. First, we will discuss the environmental and other regulatory issues associated with these facilities Including impacts from an energy and water standpoint 11

  12. Arkansas Agencies that Oversee Medical Marijuana Arkansas Medical Marijuana Commission (authorizes cultivators, processors, and dispensers) Alcohol Beverage Control ( ABC ) Arkansas Department of Health ABC administers regulations addressing facility security, packaging, qualify control, structure design, etc. and disposal of medical marijuana wastes DOH addresses doctor certifications, qualifying patients, etc. 12

  13. State Regulation Non-Hazardous (RCRA) Marijuana Plants waste (including stalks, roots/soil) and unusable marijuana Examples: - Trim (leaves and other materials removed during a harvest - Shake (leaves fall off naturally) Grow Medium 13

  14. ABC Regulations RR 18.1 Disposal of Marijuana by Cultivation Facilities and Dispensaries. All medical marijuana waste shall be disposed of in accordance with this rule. a. All medical marijuana waste shall be stored in a secure, limited access area on the premises of the cultivation facility or dispensary. b. All medical marijuana shall be rendered unusable pursuant to the methods set forth in this rule prior to disposal. c. All steps taken to render the marijuana unusable shall be conducted under video surveillance by the licensed facility s video surveillance system d. All medical marijuana waste set for disposal shall be properly weighed and recorded in the Inventory Tracking System. 14

  15. e. A cultivation facility or dispensary shall notify the Division at least three (3) business days prior to rendering the medical marijuana waste unusable and disposing of it. The notification shall include the weight of the marijuana to be rendered unusable f. Medical marijuana shall be rendered unusable by grinding and incorporating the cannabis plant waste with other ground materials so the resulting mix is at least 50% non-cannabis waste by volume. Division is a reference to ABC 15

  16. g. Medical Marijuana waste rendered unusable by the methods described in section (2), may be delivered to a permitted solid waste facility for final disposition. Permitted solid waste facilities may include: Compostable Mixed Waste: Compost, anaerobic digester, or other facility approved by the Division Noncompostable Mixed Waste: Landfill, incinerator 16

  17. The following acceptable materials may be combined with cannabis plant waste: i. Compostable Mixed Waste: Cannabis waste to be disposed of as compost, feedstock, or in another organic waste method may be mixed with the following types of waste materials: 1. Food waste; 2. Yard waste; 3. Vegetable based grease oils; 4. Agricultural Materials 5. Biodegradable products and paper; 6. Clean wood; 7. Fruits and vegetables; or 8. Plant matter. 17

  18. ii. Noncompostable Mixed Waste: Cannabis waste to be disposed of in a landfill or another disposal method, such as incineration, may be mixed with the following types of waste materials. 1. Paper waste; 2. Cardboard waste; 3. Plastic waste; 4. Soil; 5. Nonrecyclable plastic; or 6. Broken glass. 18

  19. Medical Marijuana Wastes? Examples from these categories Trim and solid plant material used to create an extract Waste solvent (example Butane making concentrates via hydrocarbon extraction) Laboratory waste Extract that fails to meet quality testing Used reactants Residual solvents include butane, hexane, alcohol, and ethanol which are byproducts of extraction 19

  20. Medical Marijuana Wastes? Examples (cont.) from these categories Alcohols Residual pesticides/fertilizers CO2 cartridges Cleaning solution Lighting ballasts Hydroponic waste - Nutrients (significant phosphorous, nitrogen, calcium and zinc) - Wastewater Light bulbs ([mercury] grow lights) 20

  21. Energy Issues A significant topic in states already allowing cultivation is the energy impact of cultivation. 2000-3000 Kilowatt hours of energy per pound of product. (NPCC) The publication Utility Dive quotes Mr. Pete Rumsey, Executive Vice President of Business Development at Lighting Science, who states: Cannabis is one of the most energy-intensive industries in the world. Statistics show that one percent of all electricity used in the United States today is used by indoor marijuana growers, to the tune of almost $6 billion annually. The same publication notes that growing four mature marijuana plants consume about as much power as running 29 refrigerators around the clock. 21

  22. Energy Issues Why are cultivation facilities motivated regarding energy conservation? Highly competitive industry Margins decreasing Energy is one of the largest cost components for cultivation/infusion facilities 22

  23. Energy Issues (cont.) Energy is consumed by cultivation activities and processes such as: Intense lighting (10,000 watt grow lights) High pressure sodium Ceramic metal halide Light emitting of diode Continuous air conditions (climate control) Intricate ventilation systems Water pumps and purifiers Heaters for drying and curing marijuana Extraction equipment filters State of the art security measures CO2 injection High powered compressors (extraction) 23

  24. Water Use Cultivating and processing marijuana is water intensive. A facility tapping into a public utility or municipal water line if among a concentration of such facilities could be a material issue in terms of quantity used. For purposes of producing high marijuana yields influent water may be scrutinized for: Total soluble salt Proportion of sodium cations Excessive concentrations of elements that curves toxicity on ionic imbalance in plants Bicarbonate anion concentration as related to calcium plus magnesium cations 24

  25. Wastewater Wastewater utilities will need to evaluate cultivating/infusion facilities wastewater streams. Scrutinize pollutant concentration Nutrient issues (Phosphates and Nitrates) Biocides interfere with treatment Facility practices to address potential wastewater issues Available agronomy practices to reduce pollution Minimize/use best practices for reducing solvent usage for processing plant material Recirculating hydroponic system Address/sewer entry points in cultivation rooms 25

  26. Wastewater (cont.) Infusion/Extraction/Production Relevant pollutants? Prevent gaseous solvents like carbon dioxide, propane or butane discharging into sewer system wastewater Solvents such as hexane, etc., maybe flammable Fats, oils, and grease from edible production High concentration or improper use of cleaning agents 26

  27. Air Odors (release of VOCs) from cultivation/processing (odor control plans are required such as carbon filtration, etc.) Emission of volatile organic compounds associated with extractions and infusions Fermentation to produce C02 to accelerate plant growth (creating CO, nitrogenoxides, PM, S02 and VOCs) Natural Gas Fired Boilers/Emergency generators 27

  28. Service/Disposal Agreements Potential liability for improper disposal of medical marijuana wastes Allocate liability in service agreements Generator warrant/certification waste meets definition of unusable Use of waste profile Provisions for indemnity, rejection, expense for sending back, etc. Note: Landfills operating procedures may consider need for immediate burial, etc., to prevent scavenging. 28

  29. Potentially Applicable Environmental/Safety Regulatory Requirements Not Specific to Marijuana (but may affect these facilities and wastes they generate) 1. Pesticides/Fungicides/Insecticides/Herbicides Restrictions a. Utilized in various stages of cultivation and processing b. Labeling/use restrictions/requirements i. Federal Insecticide Fungicide Rodenticide Act ( FIFRA ) ii. States Implementing/Enforcing FIFRA regulations 2. State Air Requirements a. Permitting i. Potential Emission Sources A. Boilers/Generators/Heating Units B. Processing/Use of Solvents for Extraction (volatile organic compounds) b. Odor Issues 29

  30. 3. Solid Waste Management Requirements a. Restrictions on availability of composting for marijuana-related vegetative material and used plant growth soil b. Restrictions on availability of landfills, transfer facilities, or transport for marijuana-related waste solid waste such as 4. Hazardous Waste Management Requirements a. Marijuana processing and cultivation activities can generate hazardous wastes (discarded solvents, chemicals, etc.) triggering Resource Conservation and Recovery Act ( RCRA ) Subtitle C (or state equivalent) requirements 30

  31. 5. State Wastewater Requirements a. Clean Water Act/National Pollution Discharge Elimination System permits for direct discharges from cultivation/processing structures into waterbodies b. Clean Water Act/Pretreatment Requirements imposed on cultivation/processing structures discharging into municipal wastewater treatment plants 6. Fire Codes a. National Fire Protection Association i. National Fire Protection Association ( NFPA ) task group developing specific Chapter for cultivation/processing facilities ii. NFPA draft report issued in Fall 2016 titled Marijuana, Growing, Processing and Extraction Facilities iii. NFPA 58 (Liquefied petroleum gas) b. Local/State Fire Codes 31

  32. Key Issues Affecting Employers 32

  33. Arkansas Amendment Details Qualifying Medical Condition Cancer Glaucoma HIV/AIDS Hepatitis C ALS Severe Arthritis Crohn s Disease Ulcerative Colitis PTSD Tourette s Syndrome Fibromyalgia Alzheimer s Disease 33

  34. Arkansas Amendment Details Qualifying Medical Condition (cont.) Also includes chronic or debilitating diseases with enumerated severe symptoms including: Intractable Pain Severe Nausea Severe Muscle Spasms Seizures 34

  35. Next Steps If a physician provides a written certification of a qualifying condition, the qualifying patient can use the certification to obtain a registry identification card from the Arkansas Department of Health Once the Qualifying Patient Obtains a Registry Identification Card, he/she can purchase and possess up to 2.5 ounces of marijuana without threat of criminal prosecution or adverse state actions 35

  36. Arkansas Amendment Non-Discrimination Provision Some job applicants and employees may produce a medical marijuana registry ID card approved by the Arkansas Department of Health in response to a failed drug test. 36

  37. Arkansas Amendment Non-Discrimination Provision (Cont.) Non-compliance with the Arkansas Medical Marijuana Amendment of 2016 (AMMA) can pose significant risks for an employer. It includes a non-discrimination provision directed at employers. The provision provides that: o An employer shall not discriminate against an applicant or employee in hiring, termination, or any term or condition of employment, or otherwise penalize an applicant or employee, based upon the applicant s or employee s past or present status as a qualifying patient or designated caregiver. 37

  38. Arkansas Medical Marijuana Act Non- Discrimination Provision (Cont.) Damages under the AMMA for an employment discrimination claim based on an applicant s or employee s past or present status as a qualifying patient or designated caregiver is capped in accordance with the statutory caps in the Arkansas Civil Rights Act. Liability for back pay is limited to no more than two years prior to the filing of an action and the period within in which an applicant or employee can bring such an action is one year from when the alleged discrimination occurred. 38

  39. Arkansas Medical Marijuana Act Non- Discrimination Provision (Cont.) What if your employee has a registry card? Two straightforward conclusions: o There is no protected right either from the state or federal government to be under the influence in the workplace. o Off-duty consumption of marijuana without a registration card still illegal o Reasonable suspicion testing The rest of the questions are more difficult. 39

  40. Systemic Marijuana Side Effects (THC) Short-term memory problems Impaired thinking and ability to perform tasks requiring mental alertness Loss of balance and motor function (e.g., coordination) Decreased ability to concentrate Changes in sensory perception Decreased reaction time Increased heart rate Increased blood pressure Dry mouth Increased appetite, thirst Drowsiness Anxiety, insomnia, panic attacks Hallucinations 40

  41. Unique Properties of Marijuana Carry-over impairment effect Slow rate of metabolization Remains in system for extended period Easily accessible Pervasive unlawful use High rates of chronic and habitual use 41

  42. General Concerns What do we mean by medical marijuana ? What would be permissible? Oil? Edibles? Smoked? Could impact workplace policies on: Smoking Possession at work Whether it can be consumed during work time 42

  43. Safety Still Important Costs of ensuring safe workplaces continue to escalate, including due to risks such as distracted driving, increased driving time, faster production demands, etc. Industrial, manufacturing and energy facilities have particularly complex operations including those relating to protection of environment, health and safety. More injuries means increased workers compensation, unemployment, and litigation costs 43

  44. Employer Issues Costs of drug-testing applicants, employees Increased management training costs Increased need for supervision, oversight 44

  45. Key Questions Faced by Arkansas Employers Do employers continue to enforce their traditional substance-abuse policies, or adopt a new approach for dealing with employees who test positive for marijuana in the workplace? Does the Americans with Disabilities Act (ADA) protect employees who claim discrimination based upon their use of marijuana for a disabling medical condition? (Yes) 45

  46. Key Questions Faced by Arkansas Employers (Cont.) Do employers violate the Occupational Safety and Health Administration s (OSHA s) General Duty Clause by allowing employees who use marijuana to perform safety-sensitive jobs, and thereby create a workplace hazard that OSHA standards seek to eliminate? (irrelevant fun fact note use of drones by OSHA and LA DEQ Do the Department of Transportation s (DOT s) substance-abuse regulations trump state marijuana laws? (Yes) 46

  47. Key Questions Faced by Arkansas Employers (Cont.) Heightened level of concern when claimant returns to a safety-sensitive occupation, such as driving or construction, while subject to potential adverse cognitive and psychological effects of marijuana? Quantification of the amount of marijuana consumed by claimant is not available through urine medication testing, thereby limiting ability to determine if he or she has consumed prescribed dose, or is in fact acutely intoxicated 47

  48. Key Questions Faced by Arkansas Employers (Cont.) Can an employer ban the use of marijuana by an employee if it is permitted by state law - and if the employee has a prescription? Does an employer have the right to terminate an employee who tests positive for marijuana, even if the employee shows no signs of impairment on the job? 48

  49. Conclusions Employees shown to be impaired on the job may be disciplined and discharged by an employer. As we will discuss, Federal government contractors/grantees subject to the Drug Free Workplace Act of 1988 should continue to follow all of the requirements of the Act, even in states permitting marijuana use by employees Employers subject to Department of Transportation HAZMAT rules must recognize the continued ban of marijuana use. 49

  50. What Should Employers Do? Establish a Drug Free Workplace o Note: qualified medical marijuana users can still be employed Make jobs with specific safety sensitive tasks or related to public health Have a way of tracking job performance Have an action plan for how you will respond to an employee who is a medical marijuana user 50

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