NEW TERRITORY
Convention in the
Mile-High city
Chad Scott, CEO of ePremium Insurance,
recently returned from NMHC’s annual
meeting in Boca Raton, Florida, where
the buzz was legalization of recreational
marijuana in Colorado and the NAA
Education Conference and Exposition.
Newly-posted sign addition in Denver
International Airport: In Colorado, where the
legal pot law gives property owners more authority to restrict the drug, some airports have banned
marijuana possession and enacted penalties,
including fines as high as $2,500 and a jail stint at
the airport in Colorado Springs. “Carrying marijuana in a civilian aircraft is illegal under federal regulations. That’s why we implemented the rule, to
prevent marijuana from reaching a civilian aircraft,”
said airport spokeswoman Kim Melchor, adding
that the airport has yet to levy a fine and that a
drop-box where travelers can toss excess weed
hasn’t been used. (AP)
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LISA BENSON
“There were a number of discussions among
executives and suppliers around whether
legal substances should be available at nonsanctioned events,” he said.
Certainly this was all to the chagrin of
executives at the National Apartment
Association (NAA), as they would prefer
convention excitement be based on learn-
MULTIHOUSING PROFESSIONAL | JANUARY FEBRUARY 2014
ing and networking opportunities.
Tongue-and-cheek quipping, and the possibility of controversial and unsanctioned,
albeit legal, events during the show give the
event somewhat of an unseemly haze.
In an effort to provide guidance to attendees regarding this topic and its newlyminted, uncharted territory, MHP reached
out for comment. Becky Sullivan, NAA
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vice president of communications and marketing said, “It is not our policy to take a
public stance on a law the voters passed in
Colorado that has no bearing on our meeting. We do not issue guidelines for behavior
for conference attendees. That is up to individual employers.”
While it might be expected that NAA
remain neutral on legislation not directly
pertinent to the industry, NAA’s annual
event, passage of said law after the stake was
in the ground on the venue, and a number
of potential corporate risks related to the
behavior of personnel in conference mode
begs some level of contemplation.
So as management executives and their
organizational regattas make plans to arrive
in Denver for the 2014 NAA Education
Conference & Exposition, we took a quick
survey of attitude and thought.
“The new law has absolutely no effect on
employers who can legally apply any limits
regarding marijuana consumption that they
like, including zero tolerance,” states Rich
Grant, director of communications for the
city’s visitors and convention bureau. “If
there is a violation of employee activity, for
example zero tolerance, the instance should
be handled under their corporate policy.
This is a new law, therefore there is a lot of
fear around the topic, which will, over time
mitigate itself.”
Pat Hutchison president of Denver,
Colo.-based Mission Rock Residential, managing 15,000 apartments adds perspective: “I
think this is much to do about nothing. I
walk down the streets of Denver and I’m not
accosted or surrounded by pot smokers.”
Colorado’s new law legalizing the use of
marajuana is having no effect on Denver
which continues to be a solid choice for
convention bookings, Grant said, “There
has been no change in our scheduled conventions due to the enactment of this law.”
Since its last successful show in Denver,
Sullivan reiterated, “We are on track for
another successful conference in June. The
new law has had no measurable effect on
attendance.”
When asked how Denver was selected
Sullivan said, “We booked our 2014 conference in Denver in 2009. The legalization of
marijuana was not an issue for us at that
time, nor is it now.”
The intersection of new law, employment
policies, and corporate liability to those
sending staff, or even concern for public
health, does give legal pause. It’s a quandry
with which law enforcement itself has yet to
fully reconcile. Quantifying potential risk to
employers and attendees is new territory.
There is little guidance for employers, and
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minimal conversation being taken publicly
on the matter.
Visit Denver’s spokesman, Grant, says,
“The media has been calling with interest
on the tourism factor, not from the commercial perspective. Due to the nature of the
law, prohibiting public consumption, the
chance of exposure will be limited; 99 percent of hotels do not allow consumption,
there are no dispensaries near the convention center. It’s definitely not obvious.”
Grant says that the average trade show
attendee will not be exposed to the behavior as it is not allowed near the convention
center district.
it’s likely that
there have been
attendees at most
previous NAA
events who have
used marijuana
while attending
Chad Scott, ePremium Insurance based
in Mason, Ohio, and veteran conference
attendee of fourteen years says such activity
is nothing new. “It’s likely that there have
been attendees at most previous NAA
events in locations such as San Diego,
Boston, Vegas, etc. who have used marijuana while attending. The only difference for
the upcoming conference in Denver is that
it will be legal—and there will certainly be
more partakers.” He adds, “regardless of geographical location, we can encounter situations that require judgment and action.
Those who choose not to be around it will
most likely do what they have always done,
remove themselves from the situation.”
Attorney Julie Heath of Dallas-based
Farrow-Gillespie & Heath LLP, specializes
in employment law and employer relations.
Whether choosing to use the drug or not
while attending the conference, either positions is legal and appropriate she says, commensurate to the particular company’s
stance. “Addressing the new Colorado law
from a human resources perspective
involves applying the same sort of reason-
ableness analysis as any other employer policy. You start with the premise that everything that is legal is not necessarily beneficial, particularly in an employment setting.
If an employer believes that an employee’s
off-duty, legal use of marijuana may negatively impact the company in any way—
from public perception of the employer to
decreasing the quality of the employee’s
work performance—an employer is free to
regulate the conduct.”
Hutchison’s local view looks ahead,
“Some companies may remind their
employees that while it is legal in Denver, it
is still against their company policy. I think
companies will likely only react if there is a
situation that they are made aware of that
puts the reputation or safety of their
employees in jeopardy.”
Victoria Cowart, VP of management at
Darby Development in Charleston, S.C.
and NAA board member says, “I think it is
incumbent upon each of us to determine
where our companies are with this topic
before going to this convention.”
Scott adds, “We plan to make our attending team aware of the rules and regulations
around the new consumption laws in
Colorado. We’ll also discuss the impact that
public consumption poses from a PR standpoint when interacting in group settings.”
Heath cautions, “Some employers might
be tempted to avoid addressing the topic
altogether hoping that things will not get
out of hand at the conference. But this sort
of approach would leave the employer in the
position of having to determine on the fly
what is ‘reasonable’ marijuana use and what
is reasonable in the eyes of one manager
might not be reasonable in the eyes of
another”
Heath adds, “For that reason, I think an
employer is safer prohibiting the use completely and communicating that policy to
the workforce prior to the conference. If the
employer then applies the no-tolerance policy uniformly, there should be no opportunity for an employee to allege that he or she
has been retaliated against.”
Still, some attendees may choose to put
themselves, as well as their employers in an
awkward position. Victoria Cowart, VP of
management at Darby Development in
Charleston, S.C. and NAA Board Member,
says, “We will not be testing our employees
upon return from Denver, unless there is an
accident.”
“Our company does not conduct random
drug testing and only as part of the new-hire
package. The only time we drug test is if an
employee is involved in an accident while
on company duties, or if a personnel action
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deems it necessary to do so.”
The executive team at Mission Rock
Residential holds firm, “Our position on
marijuana use is that, although it may be
legal in the state of Colorado, it is still illegal to smoke marijuana under federal law.”
Says Hutchison, “In addition, we believe it
is a safety issue. Our decision for now is to
not allow marijuana use among employees.”
For those employers placed in the precarious position, Heath shares, “An employer
may need to act immediately to protect the
employee and others, and it may choose to
follow up with discipline when the employee returns to work.” Keeping a level head is
important she explains, “This problem most
often arises when the comparative conduct
occurs at different times and in different settings. For that reason an employer should
have a pre-determined plan of action for
handling inappropriate social conduct. It
may be advisable to adopt a formal policy
governing after-hours or off-premises behavior. The bottom line is that, to avoid a later
allegation of discrimination, an employer
needs to take steps to ensure that similar
instances of bad conduct are handled in the
same manner.”
federal law continues to hold that
marijuana usage is
illegal... employers
in all states should
feel comfortable
continuing to
enforce zero tolerance drug policies
Heath adds, “Remember, too, that federal
law continues to hold that marijuana usage
is illegal which means that federal statutes
such as the Americans with Disabilities Act
will not require accommodations even for
the medical use of marijuana. Unless and
until federal law changes, employers in all
states should feel comfortable continuing to
enforce zero tolerance drug policies, including policies that forbid the use of marijuana
under any circumstances.”
38
Colorado primer: for the curious
As we get ready for the big Denver show in
June, here are a couple things to keep in
mind. Colorado’s law legalizing marijuana
took effect at the beginning of the year and
here are some details to know.
Who can smoke marijuana? Anyone
over 21 can legally use cannabis in
Colorado. For those under 21, it is illegal,
although minors can gain the benefits of
medical marijuana with parental consent.
Colorado legalized medical marijuana in
2000. People who already have medical marijuana cards will continue
to abide by the same rules.
Where do people buy
marijuana? Starting on
Jan. 1 licensed pot shops
began selling weed. Like
liquor stores, weed stores’
hours are mandated by the
state so no one can purchase weed before 8 am.
The state issued licenses to 136 shops, which
were all previously medical marijuana pharmacies that had to upgrade their security
systems and complete other required measures to become recreational pot shops. Most
of the approved locations are in Denver, but
others were issued to stores in Alma,
Edgewater, Fort Collins, Garden City,
Northglenn, and Pueblo.
How much marijuana can people buy?
Those with a state ID can purchase an
ounce each time they go to a pot shop,
while tourists can buy a quarter of an ounce.
Recreational marijuana will be sold for
$25 to $30 per one-eighth of an ounce. Plus
there’s a 25 percent state tax, which is
approximately $7 added to the sale. This
will still be cheaper than black market
weed, which averages for $50 an eighth.
Medical marijuana only has local and state
sales taxes applied to it, which range from 3
percent to 5 percent.
How will I know that my marijuana is
real and what is in it? Weed purchased at
pot shops must have a label that lists its
potency and any non-organic pesticides or
fungicides used in its cultivation.
Will Colorado have enough pot to meet
demand? Some believe the supply of legal
weed will not meet demand for it on Jan. 1,
especially since major towns, such as Aurora
and Boulder, have already announced they
will not be ready to sell legal weed.
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There’s also speculation that the stores
that open will not be able to deal with the
crowds and security. Weed can only be purchased with cash.
Marijuana ads will be allowed in local
magazines and television channels. They
will not be allowed in places where children
will likely see them. They are banned from
television shows where more than 30 percent of the audience is expected to be under
21. Outdoor ads like billboards and bus
decals are completely off-limits.
How does the state regulate
the
industry?
Marijuana businesses must
be licensed and are required
to record everything they do
from seed-to-sale.
The tracking, along with
restrictions on how weed can
be transferred is meant to
ensure that weed does not
flow outside of the state.
Businesses are also subject to
an audit or inspection by the state Marijuana
Enforcement Division at any time.
Will people get fired from their jobs for
smoking weed? They can. Every private
company can set its own rules about marijuana use.
Will people be allowed to drive while
stoned? Technically it is illegal and it can
result in a DUI, just like alcohol, for anyone
with 5 nanograms or more of THC in their
system while driving. But marijuana impairment can vary greatly from person-to-person and is hard to accurately detect.
Habitual smokers can retain 5 nanograms of
THC in their bloodstream, even if they
have not smoked for more than 24 hours.
It is illegal to smoke or eat marijuana in a
moving vehicle, but it may be carried in the
car as long as it is in a closed container.
Will people be allowed to take marijuana on the plane—even if it is just to another city in Colorado? No. Every city and
county in Colorado has its own marijuana
regulations, with Denver’s tending to be the
most relaxed. That said, the Denver
International Airport has specifically said it
is against the law to take marijuana into the
airport, so don’t expect any smoking
lounges. If you’re found with marijuana at
the airpot, you could lose your weed and
face a $999 administrative fine.
Source Michelle Broder Van Dyke, buzzfeed
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