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NABCA would like to wish you a Happy New Year and thank you for all your support throughout the year. We look forward to providing you more news in 2020.

Happy New Year!

• New whiskeys, rye (and a hurricane relief rum) coming to Virginia’s state-run liquor stores • TABC has a message for those crossing TODAY’S • Health warning issued over fake booze HIGHLIGHTS • Some Solid Advice on New Year's Resolutions That Might Stick • Who Wins Wine's Trade War? • Are Liquor Stores Open On New Year's Eve 2019: State Opening Hours For Buying Alcohol (excerpt)

CONTROL STATE NEWS He acknowledged the majority of arrests were well above .08. UT: Utah marks one year with .05, the nation’s toughest "Absolutely. In fact, I think looking at last year’s numbers, anti- law the 2018 numbers, about 7% were below .08," Col. FOX 13 Now Rapich added. "The numbers we’re tracking right now the By Ben Winslow percentage is lower." December 30, 2019 The final numbers will be made public in late January. SALT LAKE CITY -- The Utah Highway Patrol is compiling Lawmakers, industry groups and policy watchdogs have data from the first year of the nation's toughest anti- been eagerly anticipating them. drunk driving law. For David Morris, the president of the Utah Hospitality But so far, the state has not recorded a significant Association, a group that represents bar owners number of DUIs at the new blood alcohol level of .05. statewide, the numbers given out so far aren't terribly "On average, the state of Utah in total law enforcement surprising. agencies arrest about 10,000 DUIs a year," UHP Colonel "I think people are being responsible, people are being Michael Rapich said. "We’re within the ballpark of that smarter, they have options now," he said. this year. Maybe a little more than that." Morris, who owns the popular Piper Down bar on the Speaking on "Utah Booze News: An Alcohol Policy edge of downtown Salt Lake City, said he has seen more Podcast" produced by FOX 13 and The Salt Lake Tribune, rideshares to and from his establishment. It's convenient, Col. Rapich said the data was still being gathered. not cost-prohibitive and doesn't require someone to be Alcohol-related crashes were on a downward trend. Of the designated driver, he said. the approximately 10,000 DUI arrests statewide, about "People respond better to a carrot than a stick. It just is. 7% were at a level below .08 (the old legal limit). So if you can go have fun, have a good time and be safe, In the first quarter of 2019, the UHP recorded 2,713 that’s what you’re going to choose," Morris said. "But arrests statewide. But of those, only 135 were from .05 we’re in a place where we end public transportation to .079. before we end the sale of alcohol." "I can tell you this, from tracking it every quarter and When the Utah State Legislature passed .05, making Utah every month, it seems to be pretty consistent from what the nation's toughest anti-drunk driving law, hospitality we’ve seen in the first quarter," Col. Rapich said. and tourism groups worried it would have a negative impact. Utah already has a perception of "weird" liquor 2

laws. An alcohol beverage lobbying group ran ads "We've been here 55 years, I've never seen it this bad," mocking Utah with the tag line "come on vacation, leave said Rich McCarius, owner of Tom's Party Store. "It's on probation." certainly not at a lever that we need to do business, especially this holiday season." Morris said his bar sales are flat compared to previous years, but he doesn't know if .05 is a factor. Like the UHP, Since the shortage began in November, the distributor he wants to see more data. But Morris noted the majority says they've fixed some of the problems, but it's still not of arrests still being well above the old legal limit. enough. "I think .05, the legislation is a distraction from what we "They've sent out postcards apologizing, said McCarius. should be focusing on which is the guys at .16," Morris "But those don't really help us." said. "Those are the guys causing the crashes, those are McCarius said they get their liquor from Republic the guys killing people." National Distributing; he says their orders are missing So far, there has been no appetite in the legislature to everything from bottom-shelf liquors to the hard to find modify or repeal .05. Many lawmakers on Utah's Capitol bottles. Hill have told FOX 13 they believe it is here to stay. Now, "We just can't get it from the distributor," he said. "This other states have contacted the UHP and expressed is where we're making our bread and butter. If we can't interest in their highway safety data as they are get it, then we're just some guy on the street now." considering their own legislation to lower the blood alcohol level. There's concern the shortage will affect business on New Year’s Eve, when liquor stores expect to make the most Col. Rapich said he was supportive of it, arguing it has money. been a good policy to help reduce drunk driving and alcohol-related crashes. "This is a devastating blow during a season when they have to make a good part of their living...they want "It’s not taking any kind of an attack against the drinking customers to know they can come in" Douglas Stites, a population or the alcohol industry," he said. "It’s about customer of the party store, said. making good decisions and let’s not have tragedies on the road." McCarius said he's running of patience with the distributor. The Utah Highway Patrol was gearing up for a DUI enforcement blitz on New Year's Eve, but it is not the top "They need to get it fixed...it's just been too long. holiday for drunk driving. The agency said that would be Something should have been done by now." the annual state holiday of Pioneer Day, which has held A representative from the distributor said they're getting the title for about 10 years now, followed by Halloween. closer to being able to fulfill complete shipments, and that it's not uncommon for there to be shortages during the holiday season. MI: Stores still hurting from statewide liquor shortage The delivery issues were a result of consolidating WILX distributions to a facility in the Detroit area. By Kellan Buddy December 30, 2019 EAST LANSING, MI. (WILX) -- It's been over a month and a VA: New whiskeys, rye (and a hurricane relief rum) half since Republic National Distributing experienced coming to Virginia’s state-run liquor stores software problems, affecting local businesses. WTOP News 10 caught up with the owner of Tom's Party Store December 30, 2019 in East Lansing. The Virginia Alcoholic Beverage Control Authority is set to He said a month and a half later, they're getting deliveries add 47 new products to the shelves of state-run liquor on time, but they're still missing a lot of product. stores in 2020, including a rum whose proceeds help fund hurricane recovery in the U.S. Virgin Islands. He said ahead of one of their highest-selling days, with the upcoming holiday, he's worried they'll start to lose Five of those new products are made in Virginia itself. money. Virginia ABC reviews products submitted by distillers and 3

suppliers four times a year to decide which will be sold at LICENSE STATE NEWS more than 375 stores across the state. One of the new products is a Cruzan rum (pronounced TX: TABC has a message for those crossing alcohol croo’-shun) produced on St. Croix in the U.S. Virgin KGNS Islands named Hurricane Proof Rum. The spirit is bottled December 30, 2019 at 137 proof as a nod to the speed that qualifies a LAREDO, TX (KGNS) - For anyone heading into Mexico and hurricane as a Category 5 storm. coming back to the U.S. with alcohol, a state agency Part of the proceeds from Hurricane Proof Rum sales will wants to highlight a few rules you should keep in mind. go to the Island Spirit Fund, which provides financial aid With paisano season still in full force, the Texas Alcohol to Virgin Islands communities impacted by back-to-back Beverage Commission wants to ensure everyone has a Category 5 hurricanes Irma and Maria in September quick and safe trip. 2017. They're reminding the public that when crossing with New made-in-Virginia products that will be carried at alcohol you must stop at a TABC port of entry facility so Virginia ABC stores include Laird’s 10th Generation Apple they can inspect what you have. Brandy-Bottled-in-Bond 5 Year from Albermarle County, Virago 151 Rum from Richmond, Trump Sauvignon Blanc The state also requires you to pay a small tax and from Charlottesville and freeze-dried lemon and lime administrative fee on any spirits, wine or beer. cocktail garnishes from Buoys in Richmond. TABC spokesperson Chris Porter says every year they see Per a Virginia ABC news release, other new products a large number of people bringing in alcohol. added to shelves include: "All across the Texas border we generally collect about 5 • Old Forester Craft Whiskey 1910, a tribute to the million dollars in tax revenues per year just from folks aftermath of a distillery fire in 1910. bringing alcohol back back into the state from Mexico." • The Real McCoy 12 Year Rum, named after a -era rumrunner. INTERNATIONAL NEWS • Tin Cup American Rye, a tribute to American United Kingdom: Health warning issued over fake booze miners who drank rye whiskey out of tin cups. London News Online • The Dead Rabbit Irish Whiskey, named after a bar By Paul Lagan in New York City’s lower Manhattan. December 31, 2019 Virginia ABC stores are also following a trend, catering to New Year’s Eve revellers are being warned of deadly fake drinkers who want their cocktails ready-made. alcohol before the big night tonight. “Industry trends indicate consumers are choosing ready- The Local Government Association (LGA) warning follows to-drink alcoholic beverages more than in previous council seizures of counterfeit vodka from shops and years,” said ABC Chief Executive Travis Hill. “In the New storage facilities, including 900 bottles of fake vodka Year, we’re providing our customers with a wide seized from a storage facility in Greenwich in October. selection of these popular products by stocking our Some counterfeit bottles of vodka are said to contain shelves with 21 varieties of ready-to-drink cocktails.” industrial strength levels of alcohol which can lead to Virginia’s state-run liquor stores had a record $1 billion in vomiting, permanent blindness, kidney or liver problems, sales in fiscal 2019, with about half that amount taxes and and in extreme cases, death. profits that go to state-funded programs. With partygoers stocking up on alcohol at home and The Virginia ABC stores with the highest sales volumes in attending big celebrations in towns and city centres, Northern Virginia for the 2019 fiscal year were Duke councils are issuing safety advice to help people avoid Street in Alexandria and Old Courthouse Road in Tysons. harm from illegal alcohol. The top selling product at Virginia ABC stores in fiscal The LGA, which represents councils across England and 2019 was Tito’s Handmade Vodka, followed by Hennessy Wales, is urging shoppers to look out for tell-tale signs V.S. that bottles are fake. 4

These include unfamiliar brand names, crooked labels, nuts and seed. Reduce your consumption of sugar- spelling mistakes, very low prices which are “too good to sweetened beverages and drink more water instead. be true”, different fill levels in bottles of the same brand If you're prescribed antibiotics, take them exactly as and sediment in the liquid which should not be present. directed. Antibiotic resistance is a serious public health Greenwich Councillor Jackie Smith, cabinet member for problem. children’s services and community safety said: “Illegally If you drink alcohol, do so in moderation, which is up to produced alcohol poses a risk to people’s health because one drink per day for women and two drinks per day for it often contains dangerous chemicals. men. “The sale of illegal alcohol also affects the wider If you use tobacco or electronic cigarettes, talk to your community, as it can be linked to organised crime, child doctor about how to quit. exploitation, money laundering and even terrorism. If you're prescribed prescription pain medications such as “Consumers should ensure they buy from responsible opioids, follow your doctor's instructions, store them retailers and report any suspicions of illegal alcohol safely to prevent misuse, and properly dispose of any sales.” leftover medication. PUBLIC HEALTH NEWS Make sure everyone in your family is up-to-date on their vaccines, including the annual flu shot for everyone age 6 Some Solid Advice on New Year's Resolutions That Might months or older. Stick Manage stress and maintain good mental health by U.S. News eating a healthy diet, getting enough sleep (at least 7.5 By Robert Preidt, HealthDay Reporter hours per night), doing daily exercise, and engaging in December 30, 2019 wellness activities such as yoga and meditation. Don't (HEALTHDAY) - MONDAY, Dec. 30, 2019 (HealthDay hesitate to seek help from a mental health professional News) -- If you plan to make a New Year's resolution when you need it. about improving your health, the American Medical More information: The American Academy of Family Association (AMA) has some good suggestions. Physicians has more on healthy living. "With too many holiday sweets and not enough exercise likely in the rearview mirror, now is the perfect time to INDUSTRY NEWS consider your personal goals and how you can make Who Wins Wine's Trade War? positive health choices in the coming year," AMA We look at the potential winners and losers if the US and the President Dr. Patrice Harris said in an association news EU intensify their nascent trade war. release. Wine-Searcher "The good news is that there are a few easy steps you can By W. Blake Gray take that will set you on the right track for a healthier December 31, 2019 2020," Harris added. The wine industry is roiling over concerns that the US is Learn your risk for type 2 diabetes and take steps to going to expand its trade war with tariffs on all European prevent or delay the onset of the disease. wines: possibly as high as 100 percent. Get the recommended amount of physical activity. For As I reported earlier, and despite what you see elsewhere adults, it's at least 150 minutes a week of moderate- on the Internet, it seems unlikely that the US will actually intensity activity, or 75 minutes a week of vigorous- impose this high a tariff on all EU wines. intensity activity. But I do expect the US to slap a high tariff – maybe 100 Know your blood pressure and, if you have high blood percent – on Champagne, along with all other French pressure, take steps to get it under control. Doing so will sparkling wines, as part of a separate trade war that reduce your risk of heart attack or stroke. hasn't been as widely reported. France unilaterally Cut back on processed foods, especially those with added imposed a tax on digital services in July. The US Trade sodium and sugar. Eat less red meat and processed Representative (USTR) has decided that US companies meats, and eat more plant-based foods, such as olive oil, will be unreasonably burdened. 5

I rather like France's digital tax, which doesn't tax starting to appear on wine lists where heartier Spanish streaming services or Internet sales, but does tax and French reds once held sway. companies that profit from selling users' personal 4. Australian wineries - Wow, talk about a tough year. information. But France is out on a limb without the rest Australia has never had a hotter summer or worse global of the EU to back it. The wine press hasn't widely warming. Normally, Australia stands to benefit most from reported this trade war threat because only French almost any trade difficulties for other countries as it still sparkling wine is affected (along with cheeses, cosmetics produces great quality/price ratio wines. Moreover, and handbags and kitchenware.) But Champagne fans Australia has made strides in the last five years at might want to stock up. convincing US consumers to spend a little bit more than As part of a separate trade war, a much longer-lasting one $7 for a quality bottle of Aussie red. But I can't put it over Airbus subsidies, I wouldn't be surprised if the US higher on the list because who knows how this awful jacks up the tariffs from the current 25 percent on summer is going to affect the crop sizes. Australian French, Spanish and German still wines up to 14 percent wineries may have to worry more about servicing their alcohol. And I wouldn't be surprised by a new tariff on all existing customers than expanding the market. other wines from the EU, as the USTR is threatening. 5. South African wineries South Africa has never made Many publications are reporting who will lose this trade much headway into the US market, despite being a major war. In short: wine lovers; wine importers; small producer and exporter of quality wine. Part of the European wineries; restaurants with mostly French wine problem is a very simple image mismatch: you hear lists; wine itself. "Africa" and think "hot", but most of South Africa's best wines come from the windy, cool terroir at the southwest However, there will also be winners, and perhaps they're corner of the continent. South Africa doesn't have the not that obvious. The US is still the world's largest wine promotion money to spend that the countries above it on market and the trade war won't change that. Here are the the list have, but if sommeliers start looking around for potential winners of an escalation in the US-EU trade war. elegant wines, some will look here and like what they 1. Chilean wineries Chile had a terrible year in 2019, with find. rioting in the streets over income inequality. Greater 6. Israeli wineries Most of the Israeli wine market in the wine exports won't necessarily help. But Chile stands to US is Jewish consumers. That probably won't change in a benefit more than any other country from a US-EU trade trade war. What might happen is consumers who only war. Its exports to the US have been declining because of occasionally buy Israeli wine on a high holy day will drink the low-end image of its wines. But the country's it more often, with fewer competitive French and Spanish maritime climate has always been more conducive to wines to choose from. (There are a LOT of kosher French making European-style wines than most of its and Spanish wines, but they'll be hit with tariffs like all competitors. Independent Chilean wineries have taken the others.) Israeli wineries are as tech-savvy as the rest off over the last decade, and there's also a lot of French of the country and the wines are ready for their closeup. influence. Chile's mid-range wines (by price) in particular are now much better and more interesting than their 7. Georgia, Turkey and Moldova - These countries are reputation. If the US wine trade needs a replacement not in the EU, so no tariffs. They have barely any US specifically for French wines, Chile is one of the best market presence but they are producing some interesting places to look. wines that they'd like to export. The market for French natural wines is going to be devastated by higher tariffs; 2. New Zealand wineries - New Zealand is already doing Georgia stands to benefit. I'm not sure if Turkey or a terrific job of exporting to the US, mostly Sauvignon Moldova can crack the market but at least distributors Blanc. Burgundy fans will look for Pinot Noir will take more meetings with them. replacements if tariffs hit 100 percent. Oregon will take some of that, but look for more New Zealand Pinots on 8. US East Coast wineries - US President Donald Trump US wine lists, because the country already has a favorable owns a winery in Virginia. Does he stand to personally reputation. profit from the trade war? Yes he does, especially from a 100-percent tariff on Champagne, as sparkling wine is 3. Argentinian wineries - Argentina is still a basket case Trump winery's leading product. But he's not alone; government-wise, but as with Chile, the wines are better plenty of East Coast sommeliers are still reticent to put a and more interesting now than most people realize. It's lot of California wines on their list. Having openings not hard to foresee cool-climate Uco Valley wines 6

created by the absence of some French wines will lead consumption remain legal, and out of the dry counties, them to look more closely at quality wineries in Virginia, 23 have at least one "wet" city. New York and Maryland. Stated owned retail liquor stores, also known as ABC 9. Oregon wineries - Despite the fine reputation of stores, close on public holidays and have limited hours Oregon Pinot Noir and the growing investment by wine compared to privately owned stores. Residents can see companies from outside the state, I keep hearing that local store opening times using the Alabama ABC Board many wineries are having difficulty selling their wines. website. If you're after beer and wine, these are sold at Burgundy being double in price would change that. grocery stores. 10. Big wine distributors - The big distributors are still Normally, state-owned liquor stores open 9:00 a.m. until going to take a 30 percent cut of every wine you buy. If 9:00 p.m. Grocery stores open until 2:00 a.m. local time. you pay double for it, they make more money. If you buy Alaska South African wine instead, they still get paid. If you decide, this wine is too complicated, I'll have a cocktail – Alaska liquor stores will be permitted to be opened at they distribute spirits too. No matter who wins, they 8:00 a.m. until 5:00 a.m. AST. never lose. Arizona Where's California, you may ask? We'll see, but I'm not Beer, wine and spirits can be bought from grocery stores sure how much this trade war will help California between 6:00 a.m. to 2:00 a.m. local time. wineries. It's not going to make Eurosnobs start drinking Napa Cabernet and, as I delineated above, in today's wine Arkansas world there are a lot of options. Liquor stores in the state sell spirits and wine, with beer I think a big Champagne tariff will help California and Arkansas wine sold at groceries. Off-premise sale sparkling wine producers. But higher tariffs on still wines hours are 7:00 a.m. to 1:00 a.m. under 14 percent alcohol from Europe – would that California encourage more California producers to make lower- alcohol wine to grab that market segment? It's nice to California stores selling liquor can remain open until 2:00 end the decade on a hopeful note. a.m. local, when the law prohibits further sales. Stores can not reopen until 6:00 a.m. PST. DAILY NEWS Colorado Are Liquor Stores Open On New Year's Eve 2019: State Colorado stores can sell liquor from 8:00 a.m. MST until Opening Hours For Buying Alcohol (excerpt) midnight on a daily basis. Interestingly, businesses can only have a single full in the state, which Newsweek means that only one Target, Wal-Mart and Safeway in the By Sophia Waterfield entire state can sell liquor. December 31, 2019 Delaware New Year's Eve is a time for celebration and many Americans will be looking to raise a glass with their family On any day Monday through Saturday, liquor stores in and friends. Delaware are prohibited from selling alcohol between the hours of 1:00 a.m. and 9:00 a.m. local time. Anything However, buying alcohol—off-premise rather than in a in between is fair game. bar or restaurant—can be a tricky endeavor, especially for states that have wet, moist or dry areas. Florida Newsweek has rounded up the state laws for each of the Partygoers can pick up alcohol beverages after 7:00 a.m. American states to help readers navigate some complex until midnight in Florida, according to state law. shopping hours. Georgia Alabama In Atlanta, liquor patrons can purchase the alcohol of Let's start with one of the complicated American States. their choice from 9:00 a.m. and 2:30 a.m. local time. Alabama has 67 counties and 26 of them are dry, prohibiting the sale of alcohol. However, possession and

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Hawaii Massachusetts The state of Hawaii is on a county by county basis. In Massachusetts doesn't have a prohibition law for New Honolulu County, stores can sell liquor between 6:00 a.m. Year's Eve and stores are generally permitted to be open and midnight. In Kauai, Maui and Hawaii counties, liquor from 8:00 a.m. until 11:00 p.m. local time. can be sold by retailers between 6:00 a.m. to 11:00 p.m. Michigan local time. Some stores are able to sell for 24 hours a day with a special license. Liquor stores in Michigan are prohibited from selling alcohol between 2:00 a.m. and 7:00 a.m. on New Year's Idaho Eve (times are for January 1, 2020). On New Year's Eve, there are no specific restrictions on Minnesota liquor sales so stores will operate with regular business hours. Minnesotans should plan to head to the liquor store after 8:00 a.m. and before 10:00 p.m. local time when stores Illinois close. The sale of alcohol is not state controlled and all Mississippi beverages can be sold in grocery stores. Between Monday and Thursday, liquor can be sold at a store from In Mississippi, liquor stores can be open and sell alcohol 10:00 a.m. until midnight local time. from 10:00 a.m. until 1:00 a.m. CST the next day. Indiana Missouri The legal hours that alcoholic beverages are permitted to Normal hours of operation for liquor stores in Missouri dispense alcoholic beverages is 7:00 a.m. until 3:00 a.m. are from 6:00 a.m. until 1:30 a.m. local time the next day. local time. Montana Iowa In Montana, agency liquor stores may remain open Anyone needing alcohol for New Year's Eve needs to buy during the period between 8:00 a.m. and 2:00 a.m. local it after 6:00 a.m. and before 2:00 a.m. local time as the time the next day. law permits. Nebraska Kansas No alcoholic liquor, including beer, shall be sold at retail Retail establishments selling alcoholic beverages in or dispensed on any day between the hours of 1:00 a.m. Kansas can do so between the hours of 9:00 a.m. and and 6:00 a.m local time, according to state law. 11:00 p.m. local time unless they have extended hours. Nevada Kentucky Alcohol can be bought 24 hours a day, including on a Kentucky has wet and moist designated territories for Sunday, according to state law. This means that it is selling alcohol and aside from extended permits and dependent on your local store. prohibited Sunday sales, regulated hours are created New Hampshire through local ordinances. In New Hampshire, liquor stores can conduct transactions Louisiana from 6:00 a.m. until 11:45 p.m. EST local time. Louisiana hours are based on local ordinance and vary Click on link to see the full list. depending on where the business is located. https://www.newsweek.com/are-liquor-stores-open-new- Maine years-eve-2019-state-opening-hours-buying-alcohol-1479376

Alcohol in Maine can legally be sold after 6:00 a.m. local until 1:00 a.m. local time the next day. U.S. Transportation Department Drug and Alcohol Maryland Database Requirements Begin January 6 Maryland liquor store hours vary by county but in JDSupra Montgomery County, stores are open from 9:00 a.m. Jonathan Crotty, Parker Poe Adams & Bernstein LLP until 9:00 p.m. local time. December 30, 2019 8

Starting January 6, 2020, motor carriers subject to federal One thing for certain is regulations for marijuana drug and alcohol testing regulations must begin using the businesses have changed frequently since the Nov. 6, new FMCSA Drug and Alcohol Clearinghouse. The 2018, election when voters passed Proposal 1. The ballot clearinghouse is a secure federal database that will give proposal had 56 percent of statewide voter support and employers, licensing agencies, and other authorized officially took effect Dec. 6, 2018. users real-time information about DOT drug and alcohol “We’re always on our toes,” said Greg Maki, who opened violations by commercial driver’s license (CDL) holders. the first medical marijuana dispensary in Ottawa County The clearinghouse will contain records of violations of in August called Exit 9 Provisionary, and owns a medical drug and alcohol , including positive drug or dispensary named Park Place Provisionary in Muskegon, alcohol test results and test refusals. where he is applying for a recreational license. Employers must conduct an annual limited check, called “It seems like every two weeks the rug gets pulled out a limited query, of all currently employed CDL drivers, from under us,” Maki said. which will show whether there is any drug and/or alcohol violation information within the clearinghouse. Drivers For Don Lawless, a Grand Rapids-based attorney with must sign a written consent form that will allow their Barnes & Thornburg LLP, his clients want to understand employer to obtain the limited query. It can be signed what ever-changing marijuana legislation requires of electronically. For a limited query, employers may obtain them, and what options they have within that. a multi-year general consent from the driver. For a full Lawless has worked most closely with companies in West check, called a full query, the driver must provide specific Michigan and across the state to help them navigate consent to the employer prior to each review. This marijuana legislation, and has done webinar training for consent must be provided electronically within the out-of-state businesses as well, he said. clearinghouse. Employers must conduct a full check of the clearinghouse before hiring any new CDL driver, or if “Clients have had a year to work in this environment and a limited query indicates that there is information about right now the employers really continue to have a full the driver in the clearinghouse. range of choices on how they decide to regulate either recreational or medical marijuana in the workplace,” Motor carriers can register for the clearinghouse at Lawless said. “They’ve got the ability to accommodate clearinghouse.fmcsa.dot.gov. These new requirements medical and recreational marijuana should they choose do not change any of the underlying DOT drug and to do so.” alcohol testing regulations, but compliance with the clearinghouse rules will be part of DOT safety audits of There might be some room to litigate the scope of carriers. Motor carriers subject to these rules should marijuana policies, Lawless said, but employers in amend their driver policies before January 6, obtain Michigan still have the same right before Prop. 1 to fire necessary consents, and review the new requirements or not hire someone for a confirmed positive drug test for with their CDL drivers. THC — the main psychoactive compound in marijuana. Proposal 1 language states, “This act does not require an

employer to permit or accommodate conduct otherwise How the legalization of recreational weed affects allowed by this act in any workplace or on the employer’s employment policies property.” Grand Haven Tribune Lawless said it is still important for businesses to track By Kate Carlson - The Holland Sentinel marijuana legislation closely because it changes so often. December 30, 2019 Companies that operate in multiple states have to either MICHIGAN — It’s been just over a year since Proposal 1 create a uniform policy that complies with all local laws, was passed in Michigan. The ballot proposal legalized or modify their policies for each location where they do recreational marijuana for Michiganders over the age business. Many are still opting to modify policies based of 21. on different jurisdiction requirements. But 13 months later, in parts of West Michigan, “The only thing that is really prompting employers to recreational — technically referred to as “adult-use” — change their employee policies is the current hiring marijuana businesses are close to non-existent. market, that’s been the big driver, not so much that they have any legal obligation,” Lawless said. 9

Ottawa County had an unemployment rate of 2.8 percent Some employers, usually non-manufacturing companies, in 2018, while the statewide percentage was at 4.1 will put employees through a rehabilitation program and percent. During 2018, the city of Holland had just 565 let them return to work if they get a positive drug test, people unemployed out of a labor force of 17,374. Lawless said. The standard protocol of testing candidates for THC in the hiring process is also being reconsidered by The largest barrier reported by senior level executives some companies. Manufacturing jobs in particular are from Ottawa and Allegan counties was a lack of available holding tight with their marijuana regulations, but other labor supply, based on the Lakeshore Advantage 2019 employers are looking at dropping drug tests pre-hire. Economic Update report. Last year, Caesars Entertainment — one of the largest “The momentum over time will continue to develop, employers in Nevada — said it would no longer test probably where more and more employers will look at candidates for marijuana, according to a July New York accommodating off-duty use of marijuana to recruit or Times article. Recreational marijuana is legal in Nevada. because that continues to be the direction society is Apple has also halted testing most candidates, with the going,” Lawless said. exception of a limited number of positions with a safety Even though adults can legally use recreational marijuana risk, according to the Times story. in Michigan, rollout of the commercial sale of the Rather than fighting it, some companies are working to recreational product is still in the works, and many “get out ahead” of the issue and revise policies to treat municipalities in West Michigan have opted out of the marijuana more like alcohol, Lawless said; but treating retail side of Prop. 1. marijuana like alcohol is still complicated because it is About 80 percent of Michigan municipalities have opted much harder to test the level of THC in someone’s body out of the recreational marijuana market, according to than it is for alcohol. Michigan’s NPR. Those municipalities can opt in at a later “You can say ‘I’m going to treat it like alcohol,’ but you’ll date. just be left with what you observe to determine they are When this happens, communication will be especially under the influence,” Lawless said. “That’s not the end of important for employers to be up front with employees the world, and there is always a range in reasonable about their marijuana policies, Lawless said. judgments.” “Particularly when we start to get into these retail Lawless explained that employers can train staff to environments, it will be a good time for employers to be recognize when other employees are under the influence clear with employees where they stand on the issues, but of marijuana, and there is an accepted protocol for the I think they still have the ability to disqualify from a number of people and manner that the behavior is positive test,” Lawless said. witnessed. Most employers will probably supplement The growth rate (9.1 to 25 percent) in marijuana drug observations with a drug test, but some states are not testing positivity between 2017 and 2018 was higher than allowed to do that. the overall growth rate (7.7 percent) observed in the “Right now, employers generally still have the ability to general U.S. workforce during the same time period, do as they’ve always done based on the statues of the according to the annual Drug Testing Index from lab current case law,” Lawless said. services provider Quest Diagnostics.

Marijuana was the most commonly detected drug, with

the highest positivity rates, in the majority of sectors. Educational Services, Mining, and Public Administration were the only sectors where marijuana was not the most This email and any files transmitted with it are intended solely for the use of NABCA members, free-of-charge. If you do not wish to receive this daily service, commonly detected drug. please respond with “UNSUBSCRIBE” in the Subject line. In addition, if there is another individual within your company who should also be receiving this Employers with federal contracts or those licensed service, please forward their NAME, TITLE, EMPLOYER, and EMAIL ADDRESS through federal agencies are a different story, and legally to [email protected]. Thank you for your time and attention as we required to screen applicants for drugs, including continue to work to improve upon the services and benefits that we provide to our members. Please note that any views or opinions presented in this email marijuana — still classified as a Schedule 1 drug on the are solely those of the author(s) and do not necessarily represent those of the federal level. National Alcohol Beverage Control Association.