Cannabis Taxes Fund Grants Worth $5M for New York Youth

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The New York Office of Cannabis Management (OCM) is accepting applications for cannabis-funded grants seeking to benefit the state’s youth. The state has $5 million to award and each grant will be worth $100,000.

Under New York law, 40% of cannabis tax revenue goes back to the communities most affected by prior drug policies. The money is awarded through grants from the Cannabis Advisory Board (CAB) via the Community Grants Reinvestment Fund.

Grants are available for nonprofit programs seeking to help young people ages 0-24 in one of the following three issues:

  • Mental Health
  • Workforce Development
  • Housing

“If anyone needs another reason why buying cannabis from licensed dispensaries is the best option, here you go. Every dollar spent in a legal shop contributed to their important work of reinvesting in communities harmed by prohibition.” — OCM Director of Economic Development Tabatha Robinson, via the Daily Gazette

According to a recent OCM report, the New York state market earned more than $653.9 million in revenue in 2023. Additionally, officials said cannabis sales topped $260 million during the first half of 2024. The report also found that more than 200,000 cannabis-related convictions had been sealed under the state’s legalization policy, with more than 100,000 awaiting sealing.

Cannabis regulators have licensed more than 200 adult-use retailers statewide.

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California Regulators Revoke Cannabis Vape Manufacturer’s License

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The California Department of Cannabis Control (DCC) this week revoked the license of cannabis vape manufacturer K.U.S.H. Collective and ordered product recalls for the 12 brands associated with the company.

Regulators said “the licensee failed to demonstrate that cannabis products attributed to being manufactured on the licensee’s premises were in fact cultivated, processed, manufactured, packed, or held in a [duly licensed] location,” and that there was “probable cause to believe the products included in this notice of embargo may be adulterated or misbranded, posing a potential risk to consumers.”

The recalled products include vape cartridges and integrated vaporizer products from the following brands:

  • Backpackboyz
  • Circles
  • Cloud
  • Cure Injoy
  • DabGo
  • Everyday
  • High 90’s
  • Hollowtips
  • Mr. Nice Guy
  • Pow Wow
  • Supherb
  • The Marathon Cultivation

DCC officials said they would also send embargo notices to retail licensees with the products in their inventory. See the DCC press release for the full list of affected products.

Meanwhile, the California Department of Alcoholic Beverage Control (ABC) recently seized more than 700 products amid a statewide crackdown on intoxicating hemp products banned under the state’s new hemp industry restrictions, which took effect last month.

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Tennessee Regulators Publish New Regulations for Hemp Product Sales

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Officials with the Tennessee Department of Agriculture (TDA) have released new rules covering the sale of hemp-derived THC products set to take effect December 26, 2024, WKRN reports.

The rules update is aimed at regulating the sale of products containing hemp-derived cannabinoids like delta-8 THC, delta-9 THC, and THCa. The new regulations won’t ban THC products outright but they will change the rules to regard the total THC contents of products when they are burned — which causes decarboxylation and other transformations of the cannabinoids — and not when they are packaged and/or purchased, the report said.

Experts are still debating the expected effects of the rule changes but some business owners will likely be stuck sitting on non-compliant products come December, whether due to their cannabinoid content or packaging.

“The Department’s rules are crafted for operation of our regulatory programs for hemp and hemp-derived cannabinoid products. The Department’s authority for these rules and the allowable limit for THC and required testing method for hemp and hemp-derived products are prescribed by the legislature in state statutes. The permanent rules do not change those laws and the rules regulate, not ban, hemp and hemp-derived cannabinoid products, including THCa.” — TDA statement, via WKRN

The rules, however, may face legal challenges from hemp operators who stand to lose money on the changes, and a successful lawsuit could block the rules’ implementation in December, the report said.

 

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Farmer Tom Organics

Farmer Tom Lauerman: Grassroots Cannabis Advocacy and Planning For the Future

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In this episode of the Ganjapreneur Podcast, host TG Branfalt speaks with Tom Lauerman, better known as Farmer Tom, a longtime cannabis advocate, organic cultivator, and educator. As the founder of Farmer Tom Organics, Tom has worn many hats in his cannabis career, from medical grower and policy advocate to consultant and federal educator. In this insightful conversation, Tom reflects on his decades-long journey in the world of grassroots cannabis activism, including being arrested for cultivation in California, connecting with early pioneers like Dennis Peron and Brownie Mary, teaching federal scientists about organic cannabis farming, and more.

Tom also dives into the future of cannabis, offering his thoughts on the potential impact of federal rescheduling, the rise of pharmaceutical involvement in the industry, and the importance of patient rights and home grows. Whether you’re a home cultivator, medical patient, or curious about how the federal government is preparing for a change in policy, this episode delivers a wealth of knowledge: find us in your favorite podcast app, listen via the media player below, or scroll down for the full transcript!


Listen to the episode:


Read the transcript:

Editor’s note: this transcript was auto-generated and may contain errors.

TG Branfalt (00:52):

Hey there, I’m your host, TG Branfalt, and this is the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today I’m delighted to be joined by Tom Lauerman. He’s the founder of Farmer Tom Organic’s, a medical cannabis cultivator, federal policy reform advocate, hemp educator and industry consultant. How are you doing this afternoon, Tom?

Farmer Tom Lauerman (01:18):

Pretty good, TG. How are you doing, buddy?

TG Branfalt (01:20):

I’m great, man. I’m real excited to have you on the show today. We have a lot to discuss. You’re a man who wears many hats. So before we get into that though, tell me about your background and how you ended up wearing all of these hats.

Farmer Tom Lauerman (01:34):

Wow, it’s been a long road. I’ve been consuming cannabis for 50 years. I started in San Diego. I was selling weed so I could take care of myself, was never really much of a drug dealer because I like to smoke my own. I did it so I wouldn’t have to purchase so much cannabis. And we started growing at a young age there in 1994 and five. We worked along with Dennis Peron and the people from San Francisco and San Diego to get Prop two 15 on the ballot, which we were successful in doing. And then that led into our collective garden shelter from the storm where we had 20 patients. You bought a light, paid 50 bucks a month, patients got to take what they wanted. I was the grower. Steve McWilliams was kind of the head of the group and he supplied the phones to make it all happen too.

(02:40):

So that was good. And then we got arrested for 448 plants in 99. We were real active in the community down there in San Diego. We used to go to the townhouse meetings all the time and bring our four inch pot plants and tell ’em how safe marijuana was after the law passed and they continually rolled their eyes until they arrested us and we went back with the media and the mayor, Susan Golding wouldn’t come out of her office. Her husband owns like Jack in the Box, and she was horrified that her police arrested us and they already knew us all really well. They gave us back our grow equipment. So we popped up, they got us kicked like they usually do. They got us kicked out of our space. They threatened the landlords. That’s when these things go down. That’s the kind of model they use.

(03:34):

We’re going to take your property if you don’t get rid of these guys. So we popped up a little four by eight grow room and one of our patients, Michael Bartel, quadriplegic, good friend of mine, and we popped up in there and then other patients throughout the county gave us little starts and we grew ’em out. And our court date was so high profile that NORML gave us a free lawyer. So in the process when they raided us, we all had a media list back then. So that’s when I really got in tune with the media Brownie Mary back in the day. She got off of her charges because she had NBC there. So we knew we needed to buddy up with the media people in town and all the news stations and the newspaper and stuff because if we did, if any of us got busted, they wanted to know right away.

(04:30):

So we had all their pager numbers and we all have media lists. And when they raided us, my wife got all the trim out of her apartment, put it into a neutral space, and then got on her cordless phone and called all the media within 10 minutes. They were all there at the gate. And so it was really well documented, super high profile. We went to jail and then NORML gave us a lawyer. It was so high profile for free, and they decided not to charge us not to drop the charges because they were expecting us to at least one of us to make the mistake again. And so they didn’t charge us. So it was kind of hanging over our heads. And we moved a couple years later to San Diego. Wasn’t the cool little beach town I grew up in anymore. It was turned into Los Angeles and traffic all over the place and I was doing landscape construction and it just one development looked like all the rest of the developments.

(05:36):

I couldn’t tell where I was. So we moved to Williams, Oregon where we lived for a couple years. I was a farm manager, organic seed farm down there. Did some growing down there. Williams is kind of like the Garberville of Oregon. It’s kind of the main hub there, tucked way back in the woods. Very cool community. We had no idea when we moved there that it was that kind of community. But everybody at the health food store at obs, people’s co-op, you say, oh, you guys are going to love Williams. You’re going to fit right in. So that kind of got us up here. We stayed there for a couple years. I was a farm manager, organic seed farm, and then we bought our own farm here in Brush Prairie, Washington, which is on the outskirts of Vancouver, really in the Portland metropolitan area. So I’m like 20 minutes from the airport, half hour from downtown Portland, five minutes from the I-5 that goes from the Canadian border to the Mexican border.

(06:38):

So it really, for doing advocacy was ideal. So we grew for patients and then eventually I left my regular job and dove in full-time growing for patients here on our farm. We wrote a book Cannabis Consumers Guide that we put out. And I used to go to all the farmer’s markets. So before legalization happened, we had a medical marijuana farmer’s markets up here in Washington State. So like every weekend I would do a different farmer’s market selling weed and promoting my book and being out there in the community knowing I really, after being arrested and take it through the gauntlet in San Diego, I really wanted to take my advocacy to the next level and normalize cannabis. And we were fortunate enough that Washington and Colorado were the first two states and not California because then they would’ve just bulldozed the over as far as media attention and normalization.

(07:46):

And they have such a stronghold there and such a big economy too. So we had a bunch of media attention up here. I was on dozens of different local, I worked with Cuomo News a lot, NBC out of Seattle, did a bunch of pre cannabis stuff and then Markovich from Como News called me and said, Hey Farmer, all these people are blowing themselves up and blowing their houses up and people are getting maim producing BHO, butane Hasell. We all know that the butane puddles up on the ground close to the ground. You plug any device in little spark, boom, the whole place goes up. Hot water heater, pilot light on your stove or on your oven, the whole place can go up. It was happening regularly. And I said I knew that the legislators, we were very active up there too in Olympia, Washington kind of laying out the cannabis and we wanted to really keep patients rights in there, which they kind of destroyed, but that’s another story.

(08:56):

But anyway, so we put on, I go, sure man, let’s do it. I’ll do the open blast outside the total Safeway, we’ll show you how to do it. And then we’ll do closed loop inside and we’ll talk about CO2 and we’ll talk about bubble hash and water hash and we’ll talk about RSO because legislators traditionally know nothing about cannabis at all, like zero. And I don’t blame ’em because they got so much coming across their plate every day. There’s so much going on in every community. So I took the opportunity to educate them. I said, Matt, we’re going to put on a three hour symposium and we’re going to help them make the correct decisions because my talking point was, and I put it all together. So I made like everybody take off their big hats and just say, we’re going to come across as legitimate as possible on our message we want to get across is if you don’t tax it a regulator, you can continue to have these explosions.

(09:59):

It’s like a hundred dollars fix for the tube, some Pyrex, a little heater, coffee filter, zip tie, and a couple cans of butane and they’re blowing themselves up. And we explained to ’em that we are creatures of habit. We’d much rather go to the store and buy the beer than make it ourselves. And the same thing’s going to be with concentrates and BHO and concentrates we’re really taking storm across the country. And so two weeks later, a week and a half later, they changed their mind, changed the laws and made all concentrates legal at that point. And that really put me on the map. Previously, I’ve been on the cover of Northwest Leaves activists this magazine along with Grandma Kat and Jonah Tacoma from Dab Stars and Joy Beckerman Hemp like Ace Lady. And that got me out there. And then the opportunity came to work with the federal government and they knew that me and my wife were traditional medical growers.

(11:12):

We lived the lifestyle. We grew vegetables along with our cannabis. We were educators. We really wanted to set the stage. So the union guys thought it would be great if we did it. So they picked me out and I got on the phone with 10 agents from the CDC scientist agents from the CDC, and I asked them, where are you getting your info? And they said, oh, we’re getting it all off YouTube. And I kind of said, ah, that’s kind of, that’s really not fair to our industry. Why don’t I give you a tour? The lawyers and the DOJ said, no, we’re not doing a tour to these illegal operations, but we can make your pharma location where federal agents can learn touch and steady cannabis. So they said, well, we’re going to have to do a thorough background check. And me and my wife, we’ve always just played by the rules.

(12:04):

I’m not a baller, I’m not running stuff all over the place. I’ve got enough to take care of with my patients and my farm and living a good life as opposed to doing all the other stuff. A lot of people were partaking in at that time. So I said, dig in. So they came for two days in August. We had seven agents from the CDC there, all top scientists. Cton was in Africa studying Ebola victims. And he flew to my farm for the two day. We had set up a little popup using my veggies on the farm, serving him food, and we educated him. So I knew at this time that I had one chance to do this. I had one chance to normalize cannabis and teach these heavily PhD scientists about cannabis, not only cannabis, but be around people who are smoking cannabis all day long.

(13:01):

And so we started on the first day of education, we started smoking weed around it them well, somebody had to do it right? And if they don’t, you got to educate these people too. Like this isn’t heroin, we’re not meth out, we’re not fentanyl out, we’re not drooling, we’re not drunk. We’re none of those things. We’re we’re cannabis patients when we’re taking care of our health. So not only did we do that, we did dabs in front of ’em, we rolled joints. We really wanted to show ’em the whole consumer side. And then in between we had BHO hydrocarbon demonstrations. We had the top lab guys here to explain what’s going on in the laboratory and what they’re testing for. We did trimming, I mean trim machines. We had the whole gamut for two days. They went out with us for pizza and beer at night.

(13:57):

When they came out of the farm, we hugged, we gave them a big hug because I’ve been working with them on the phone. So I gave them a big hug and they welcomed them into our farm. And usually when they go out on these things, they’ve told me since they go, man, we usually met with lawyers and other tech people. Wherever we swab, they swab. Everybody’s documenting everything. And we really didn’t do any of that stuff. My goal was just to educate them as best possible. So when they come back for this study in October, they would have some knowledge on cannabis.

(14:35):

They saw my organic inputs, they saw how we grew our vegetables, they, how we grew our cannabis. I had two collectives at the time where we had over a hundred plants. So it was federally legal and just like with BHO thing, everybody think it was thought, I got so much shit for it. Unbelievable for educating the state government to make decisions. Oh, you’re showing them all of our secrets. You’re letting all this stuff. And then the same with this, oh, you’re bringing the feds on. They’re going to bust you all this stuff. But I got to know these guys and I trusted ’em. So we became, I still work with them today. They’ve got me looking for a hemp processor out there who’s willing to work with them. They want to collect some dust out of the corners and maybe put up some sniffers in there and collect the dust so they can go analyze it to look for any kind of allergic reactions, any of those type of things.

(15:35):

This is all our workplace health and safety stuff. So when they, in October, they came for the official HHE Health Hazard Evaluation. It’s a federally funded study. So we were one of the first to do a federally funded cannabis study on our farm where they did harvesting one day, big leafing another day and trimming. And the trimming day. That hooked us up with the cyber glove where they tracked the repetitive motion of our hands. And not long after that, the CDC put out a public service announcement stating that tremors can have carpal tunnel, can get carpal tunnel because of the repetitive motion. And it kind of went on from there. It was hard getting it into my hands and into the public because it went up on the website first and it was 2016 in election year, and the Democrats didn’t want to look like they were favorable to cannabis.

(16:43):

So they pulled it off the website and then Trump got elected and they brought in a new department head for Health and Human Services, and I guess they just go through and signed these things. So they had a backlog of ’em. So they stuffed mine in the middle. The guy went through and signed them all and then am delivery like six 30 in the morning. The next day the box arrived from UPS full of all these health hazard evaluations printed and ready to go because they knew if they got it to me, the public, then the cat when they couldn’t turn it back. So it was a big deal. We got the federal government to use the word cannabis instead of marijuana. James, one of the scientists I still am good friends with and work with, he said, Tommy never used the word marijuana once I go, I did it intentionally and I got flack from a lot of the old advocates for getting these scientists to use the word cannabis instead of marijuana.

(17:46):

They’re all like, we fought to use the word marijuana. What are you doing telling ’em it’s cannabis. I’m going, I use my own better judgment. These are the top scientists in the world for workplace health and safety. They ride all the reports and then OSHA makes laws out of them. So they’re highly esteemed. My message to ’em was, look, you don’t want to look like fools out there. You want to use the proper terminology so the rest of the world respects you. If you go into this scientific study with marijuana all over the place, people, these other scientists around the world, they’re, they’re not going to look highly on you. So we convinced them to do it. They used the word marijuana once. In the first paragraph it says cannabis, also known as marijuana. And then through the rest of the study, it can be found on my website on farmer tom organics.com, or you can go to farmer tom.com.

(18:44):

That’ll get you over there too. But the reports there, the educational days there, we took a bunch of pictures. So that’s been a really great experience. I’ve helped them with other projects along the way, and I’m still their go-to guy. If they need anything for hamper cannabis and want to do some studies, they call me up and ask me, Hey, do you want to do this? And I’m always up to helping ’em out. It’s not a paying gig, but it’s good communication and I found it very beneficial for me to still have a good rapport with them and work with them, especially since we’re moving into schedule three. I think that’s where my focus is right now. So I want to

TG Branfalt (19:32):

Ask, you kind of had a rocky start being arrested early in the nineties. Are you surprised that in 2024 we are talking about federal rescheduling?

Farmer Tom Lauerman (19:48):

Oh yeah. We never thought it’d be legalized Back in the day. We knew medical went in California, but we knew that was a slow road. California and the West Coast are usually ahead of things and just like storms sweep across the country, cannabis swept across the country from west to east. And that’s the kind of way I look at it. And I was blessed to already have my farm here and living here for over, well, in that time, almost 10 years I’d been here on this farm and that it all came together. So I talked with the media all the time. Most people weren’t talking to the media. Well, everybody was too. They knew the end was coming and they were getting as much money for their black market stuff as they could. And I’ve been more of an advocate as opposed to a major producer. So

TG Branfalt (20:46):

Your company, you have your obviously hands in a lot of different baskets. You’re spinning many plates. Can you tell me about your growth as a company as more states have gone online with medical and then later adult use programs?

Farmer Tom Lauerman (21:00):

Yeah, we’ve just been doing consulting. We did the first outdoor cannabis tours in the world here with Kush Tours back in the day. And this was Washington State, so all of the people who wanted to get into the cannabis came through my farm. They were money people and a lot of Chinese Mafia and Mexican mafia. And I didn’t care. They were paying Kush tours of me to have ’em on the farm. And I’m an eager educator. I probably a little bit too much to my demise or at least cash in the pocket. I like to spell it all out and give everybody good solid information. So we had a ton of people come through our farm where we educated them. And that kind of started it off. And then when other states came on board and then me working with the federal government, it kind of built me some cloud in my own way. My taught classes at Clark College here in Vancouver, I’ve been a keynote speaker. I’ve been an educator in cannabis for a really long time, and we were able to educate the federal government for the first time on production of processing cannabis on my farm.

TG Branfalt (22:19):

Well, I want to talk to you about that. I mean, you are a trailblazer. You’re the first to educate scientists in the federal government about our cannabis production. The first outdoor cannabis crow tour with Kush Tours was being first your goal when you set out on these projects?

Farmer Tom Lauerman (22:34):

No, I just knew I had the window to do it. I didn’t really think about the first so much. I knew that California, as soon as California goes legal, I’m going to be not the guy anymore. You know what I mean? I was the guy with the beard and the farmer, and then it went to California and all of a sudden it was Swami. He was the, but I knew I had a short window and then that we would be the first. So I always answered my phone. I always invited the mediocre. I always had. I’ve had a couple, two, maybe three documentaries done on me. I’ve been in 50 plus magazine and podcasts, and I was on NBC Nightly News, squawk Box, business News Weekly. I’ve been in Time Magazine, I’ve been in all of them starting off with this tourist stuff that kind of brought me into the national spotlight. Tourism and cannabis was a big deal when Colorado and Washington first came in to the game. Nobody else was doing it. People were coming to Washington and Colorado to buy legal weed, go to a store, get that whole thing that we’ve all been dreaming about for decades, upon decades is actually come to fruition. And you can go into a store, buy some weed and go, go smoke it or whatever consumption methods you want to do.

TG Branfalt (24:05):

I mean, you’re also the first federally recognized cannabis farmer processor in the us. What does that mean? What did that actually mean?

Farmer Tom Lauerman (24:18):

Well, the federal government during their backgrounds and had stuff and having me on their farm, having them on my farm, they recognize me as a cannabis producer and processor, and still to this day because they utilize me and what the strength it brings in, especially going into schedule three, I’ve already been vetted by the federal government to grow and process cannabis. I already have deep connections into the federal government to help businesses work their way through the next phase because cannabis, it’s a moving target. Anybody who thinks cannabis is going to stay the way it is for very long hasn’t been in cannabis very long because we all have to be like Gumby. We can’t set up and say, this is my business model and we’re not going to stray for it from it. We all have to. And they put new laws in and we’re like the work around experts. Cannabis people know how to, well, how can we work around it and what can we do to make sure that we can still do what we’re doing without too much interference?

TG Branfalt (25:27):

So I want to know more about advocating at the federal level, which again, you’re probably, what one, if not a handful of people who have probably taken this that’s not a paid lobbyist. Did anything surprise you that they knew the scientists that you met with? Is there anything that surprised you that they didn’t know? And ultimately, how were you received?

Farmer Tom Lauerman (25:53):

I was received great from them. We became buddies with them. I mean, we still text each other on the holidays. I’m friends with these guys and I’m the guy, we smoked weed around them and we went to the pub and drank beers. And then I would go out. I always do halfway through my meal burn one down, come back in. I just wanted them, I really wanted to normalize cannabis and break the stigma.

TG Branfalt (26:20):

Was there something that they knew that you were like, oh, this basic stuff, or were they all completely

Farmer Tom Lauerman (26:27):

Blank? They didn’t know anything. They were getting all their information from YouTube,

TG Branfalt (26:33):

Which is ridiculous on its face,

Farmer Tom Lauerman (26:35):

Which is totally ridiculous. That’s why I said, whoa, whoa, whoa, whoa. What can I do to educate you before you come and do the study? So you have some base about cannabis in general because for me, they went to the Mayo Clinic who does Minnesota, takes care of all of their edibles and products there. They’re made by the Mayo Clinic people. So they went for me. They went up. This is only going to happen once. We’re only going to go to one small farm and then we’re stepping up into the big leagues. I felt very blessed and honored, and I respect them and the work that they do. I don’t believe in everything governments do, but the civilian people that work there, the civil servants who are doing the day-to-Day science and protecting workers and stuff, man, they’re just people like us really. They just go by what the higher ups they’re telling them to focus on at each point along the way.

TG Branfalt (27:37):

So since the rescheduling sort of news, right, it’s still a proposal since that’s come out, there’s been a sort of, people have been speculating about what is going to happen to the cannabis industry as it sits. What’s rescheduling to schedule three would actually do. You’re somebody who has spoken to federal regulators, essentially. What do you think rescheduling cannabis federally would actually do and the potential impact on the current cannabis industry?

Farmer Tom Lauerman (28:08):

Yeah, it’s a hot topic now, but we were talking about it back in the nineties. We were always, everybody’s rescheduled. We were always, no, no, no. We want to, we want to make it like tomatoes. I could have it on my farm stand, a bag of wheated or a bag of fresh leaves for juicing or whatever. I want it to be a regular commodity. And so rescheduling what it’s going to do, it’s going to be a handoff to the pharmaceutical companies. Schedule three. You need a prescription for it. So you can see the writing on the wall. People don’t want to talk about it. They don’t want to talk about two 80 e and how great it is and how great it’s going to be for ’em. But I’m not really seeing it that way. I’m seeing it more once it goes federally legal, it’s going to be like Viagra or any other drugs that are in schedule three where you need a prescription and there’ll be TV commercials out there. Amazon’s already pouring money into the federal government for them to be able to ship it around. So it’s going to be like that. You are going to see a commercial. We have doctors on hand. They will write you your prescription for medical cannabis. Call us now. And then it’ll be discreetly shipped to you in a discreet packaging. And I think the way that’s the, it’s going to go.

(29:35):

Government follows certain things and they’re always set up to help the big corporations out at the end.

TG Branfalt (29:44):

So you think it’ll end up in the hands of the big pharmaceutical companies like Merck and so on?

Farmer Tom Lauerman (29:49):

Yeah, exactly. Or the bigger players that are in the game already who have the funds to do it because it, it’s a big as. But right now, the regular market, all they’re really focused on is high THC numbers. There’s some obscure products out there with CBD and CBG and different minor cannabinoids in there. But all of ’em are really just focused on how high this stuff will get you. And these people are, they’re capitalists, American capitalists. What they want to do is they want people to be able to smoke all the time. Like my strains that I grow, they’ll get you high for three or four hours, medicated for three or four hours. The strains they want is going to get you high for 15 minutes to a half an hour, and then you’re going to smoke more, right? They want to put that addictive thing in there.

(30:43):

Well, I need more to keep my high where I want it or whatever they’re looking for, whatever relief. So they’re not always straight up. They really don’t. As we’ve seen in every other business, they’re not looking out after really the consumer at all, or the regular people mean just look at our food supply, totally adulterated all these chemicals in it. They cause all these things. And then on the prescription side, on the pharmaceutical side, you see ’em on tv, it’s going to cause diarrhea and death and eczema and rashes, but it’ll help you with this one tiny thing, but it’s going to contribute to all these things. But what cannabis does in that is there’s all these different cannabinoids, there’s all these different terpenes, there’s all these different flavonoids. So there’s endless amounts of different therapeutics is what they like to call it these days.

(31:42):

Get these therapeutic blends out there and they don’t want to go away from their chemical based. These are all petroleum-based derivatives that create all the medication out there. And way back when, I think the Rothschild or whatever, once they went over and they kind of took over the colleges for medical school, and when you go to medical school these days, you learn a little bit about the body, but your main thing is to learn how to prescribe properly and to use our medicine. So cannabis can relieve all these different symptoms. It is great therapy for so many different things, but they don’t want it because it takes ’em away from what they’ve built decades to do. And it kind of smashes it all. And when you could do with terpenes of different cannabinoid compounds and flavonoid compounds address a lot of these issues therapeutically, then you really don’t need their expensive concoctions that they’ve made up that do all this other harm.

TG Branfalt (32:53):

I do want to go back a little bit to something that you said, talking about the trend of really THC, seeing how stone something can get you, and this is something that I’ve kind of pondered for a while, that there’s all these reports that cannabis is much stronger now. I don’t know how much I necessarily believe that, that sort of reporting, but it is true that when I started consuming cannabis in the early two thousands, you could get flour concentrates, you could get some hash here and there, but concentrates didn’t really exist in my world. I’m sure they existed, but not in my world. RSO, that sort of thing. Does that trend of these cannabis products, legal cannabis products being really potent, is that something that worries you as an advocate, as somebody who views it as a healing plant as opposed to a quote party drug?

Farmer Tom Lauerman (33:46):

Well, I think it’s going to be beneficial to have schedule three because the hemp side of it all, they’ve really focused on all the minor cannabinoids and they’re worlds ahead. They’re already federally legal out there, so they have to be GMP certified, they have to do all this thing. And there’s so much more advanced in the healing modalities or the healing components of cannabis than they are about profits and selling and getting people as baked as possible. So I really think the hemp, if we could concentrate on the hemp side of it and take the legalization that’s already happened and pull that model in, which is much less restrictive. They have to pay taxes, they have to do all the things that do a business, but being hemp, they can take the tax benefits too from it. So I just think that they’re way ahead.

(34:44):

I think the overregulation and the greed from the states, they really kick the patients to the side. And it’s all about making money for the states, mainly making money for the states. If you can’t ride off all these different tax exemptions and all the money’s just pouring into the different government agencies then. And really, I’m on the board of directors of a couple different medical groups, cannabis patients northwest here locally, and the Coalition for Patient’s Rights, which is a national organization based out of Nevada. And we look at all the different states, and it all started with medical, but now it’s all recreation and it’s all about money. So I learned when I was a kid, man, follow the money. Follow the money where it’s all happening. And if you follow the money in cannabis, it’s pretty much he tells the story.

TG Branfalt (35:46):

So I want to talk about your role as an educator. You launched the Hemp Farming Academy. You co-construct a cannabis and your health course at Clark College. Was education a natural progression for you?

Farmer Tom Lauerman (36:01):

Yeah, I always wanted to normalize and educate people and de-stigmatize the cannabis. I mean, that’s why we educated people here. When we did the tours originally, the book, I put out educated people, we educated the, I took the initiative. It was all my idea to educate the federal government. I said, well, let’s bring them in and teach ’em what’s really going on and let’s smoke weed in front of ’em and let’s show ’em how it is. And I can only assume that these are the same scientists from the Department of Health and Human Services that just recently made it said that cannabis has medicinal benefits, which has never been before, which is monumentally huge. It’s been downplayed, but what they’re doing now is monumentally huge, huge, huge. It just says that cannabis has medicinal benefits. That alone is crazy. So I’m all about get away from the rec side and let’s go back to the medicinal side and let’s force these pharmaceutical companies, these big companies, to focus on all the medicinal therapies that can be creative with terpenes and different cannabinoids and flavonoids, and let’s bring it all together and do some real medicine here.

(37:23):

Plant-based.

TG Branfalt (37:24):

Just as an aside, there are a lot of recreational consumers. They’re actually using cannabis therapeutically. They just don’t have to go through that medical sort of process, which for some people, maybe due to their job, they may work in a safety sensitive position or due to their owning of firearms, for example. I think that’s what keeps some people out of, because you do see, when RET goes online, you see a decline in patients. That doesn’t mean less people are using cannabis therapeutically. It means that less people are choosing to sort of register with the government. Do you think that that’s fair?

Farmer Tom Lauerman (38:10):

It’s what’s been going on. And people, they already know the products they’re after, they just can go buy it at a store without paying the extra fees, without being on a list is a big deal too. Who knows how these lists get opened up and then what could happen if a different administration comes in and they decide to clamp down? They got a list of all these patients if they really want to go. But I just don’t think, first of all, I don’t think the government, the federal government has the forces to regulate it, heavily regulated it anymore. The states definitely don’t. Every state has huge homeless populations, huge, huge step rings, like all, it’s kind of like our world’s just falling apart out there. I mean, I live in Portland and I was just in Portland and Portland yesterday, and the homeless problem there is huge still to this day. And they’ve made homelessness illegal, but it’s still all over the place. They don’t have the funds to control it. So I think people are out there. They know when they buy from the stores, they know what they’re getting. They want to make sure they get the right products.

TG Branfalt (39:30):

Tell me about your role as a consultant, which is I guess the sort of amalgam of everything that you’ve done in the cannabis industry and kind of in your life to this point when it comes to cannabis. What typically do people reach out to you for as a consultant?

Farmer Tom Lauerman (39:47):

Oh, I’ve been doing a lot of hemp consulting around the world. Did some in South Africa been helping out? A lot of different growers get started, and I think it’s more beneficial to bring somebody, it’s more beneficial and honest. Not that capitalistic businesses are honest. They want to bring in that best grower and then they want to have them there for a year and they want some kid to follow ’em around and learn everything that’s going on. And then they dump ’em for the $16 an hour, $20 an hour kid who’s learned the chops on growing cannabis and continuing it on. I think it’s better to bring on somebody like me. We walk you through, we educate you through the whole deal. You’re not screwing anybody over At the end of the day, your business doesn’t get black marked or looked down upon because you took advantage of people who, who’ve been in the cannabis industry for 20 plus years, or born into it from Oregon or Humboldt. Their parents grew cannabis too, and you get stained.

TG Branfalt (41:02):

So you said that you did some work in South Africa. What are other countries doing, or maybe the way that they regulate or maybe what some of the people that you are sort of working with, what are they doing that may be different than the United States or entrepreneurs in the United States?

Farmer Tom Lauerman (41:23):

Well, as far as South Africa is, the way they have their system set up is ideal. Everybody gets to grow their own weed and smoke their own weed, and there’s no recreational out there. It’s basically neighbors taking care of neighbors. I’m growing the corn, I’m raising the pig, I’m raising the cow, you’re growing the weed. We do a little exchange community, a community effort, and I think that’s really got the government, it’s all governments a little bit worried because they want to control everything and make as much money out of as possible. Basically, at the end of the day, it’s all about money.

(42:04):

Like South Africa, the government there knows nothing about cannabis. The inspectors, the police who come out to look at the fields, they really don’t know what they’re looking at. They have no idea what’s going on. There’s so much education that needs to take place in all of these countries. Now, if we look at Thailand now, Thailand went fully legal, but they saw that Schedule three popped up in the United States. And so we all want to keep America happy. So we’re going to get rid of our legal and we’re going to go back to medical. Sure, these stores are going to be open, but there’ll be a doctor in these stores or right next door. Yeah, go next door, see the doc next door. He’ll get you your paperwork. Then you can come and buy your products. So I think my spidey sense is that that’s what happened in Thailand. And if you do the math and look at the dates, as soon as the US government says we’re going to schedule three, which is back to a prescribed product, almost instantly the Thai government said, oh, we’re going to do the same thing.

TG Branfalt (43:16):

Do your Spidey senses tell you that we’ll see full decriminalization in your lifetime and possibly mine?

Farmer Tom Lauerman (43:25):

I don’t know. Well, yeah, on the federal level, I’m sure you won’t be able, I mean, people won’t be going to jail for it. The things that we really have to hold onto is home grow is huge and then medical patients’ rights to grow their own. And it’s been sad to see some people in the industry, even here in Washington in the early days, who had licenses to have a regular recreational license to sell, saying that, oh, we can’t have patients grow on their own. Oh, it’s too dangerous. They’re, they’re going to hurt themselves or somebody else, which is like a bunch of garbage, man. It’s a plant. If you can grow tomatoes, you can grow your own cannabis. Believe me,

TG Branfalt (44:11):

It may not be that good because I can grow tomatoes and I’ve tried to grow cannabis and it did not go well. What advice do you have for people looking to enter the cannabis space as it currently exists?

Farmer Tom Lauerman (44:28):

Well, I’d say be prepared for three. I’m really encouraging all of these groups to go. If you want to make the next move, bring somebody up like me who’s got experience working with federal regulators inside, I can get some inside information. I’ve already been vetted by the bring somebody in like me who can help you guide you through all the different things that are going on. Hold on one second. Since this is on tape, I don’t have to worry about it too much. But yeah, there’s going to be what’s coming down the road with Schedule three that’s going to bring both opportunities and challenges for all these businesses, right? They’re going to have to know about regulatory compliance, and I can help ’em with that. Dealing with the federal government and DEA and the F FDAs, all their rules and regulations. We can put in customized training programs to educate all their employees on a proper way to do GMP certified facilities and get up to date to play in that federal realm where it’s going, licensing, permitting.

(45:51):

I can help out with all those things. I can assist with federal licensing and applications and local stuff. Also operational audits and SOPs. I’m pretty, my SOPs through the work that I did with the federal government are the foundation for all workplace health and safety standards in the cannabis industry, and also my advocacy and representation. The work that I’ve already done carries a lot of weight in the federal laws that are coming aboard. And I think if you bring me on board, you have a better chance of participating in what’s coming because like I said, it’s a moving ball. Cannabis has always been a moving ball. If everybody thinks it’s going to be the way it is right now, it’s five, 10 years from now, I think you’re wrong.

TG Branfalt (46:44):

I would have to agree with you there. It sounds though like we would need for all the businesses and we would need a team of yous. Do you have any anticipation of training a team of yous in the future?

Farmer Tom Lauerman (46:59):

Yeah, definitely. I’ve got a group of people who are good educators like myself who have been around the plant for a long time. And yeah, I am looking forward to building a nice team around myself, a really well qualified educators and people who know the rules and what’s coming down the road.

TG Branfalt (47:22):

Tom, really, this has been a fascinating conversation. You have one of the most unique, interesting, and the longevity in this industry is really second to none. So I really appreciate you coming on the show and your candor throughout the course of the show. Where can people find out more about you? About Farmer Tom Organics? Yeah,

Farmer Tom Lauerman (47:48):

Go to farmer tom.com. That’ll shoot you over to the Farmer Tom Organics page. You can Google me. There’s a ton of information out there. You can just get on the phone. I answer my emails. I get back to people. I’m eager to help people ease into this new industry. It’s going to be a couple years, but the time to get started is now. And don’t dilly dally around because it’ll be here before you know it, and then you’ll all be scrambling and not being a part of the party. This is where it’s really going to be. And me, I really haven’t, I’ve turned down a lot of opportunities over the years because I listened to the people in my group who knew what was coming down the road. They knew it was going to be a race to the bottom. They knew all these startups, 90 something percent, just like any new industry that comes out, there’s endless amounts of failures out there.

(48:46):

So we own all of our own ip. I own all of my art. I was one of the first people to put his name and like this on a cannabis product by a guy named from a Nike artist, somebody from Nike, and then a guy from Marvel columnist did a full line of cannabis trading cars. So when you’re out there and just happened to be the first, you get all this influx. Everybody wants to jump on your ship, and that was cool. I got a lot of good, and we own our name. I’ve never taken any money, and I’m ready to work with any team who really wants to be a part of the next phase of cannabis, which is going to be pretty big, and it’s going to be some big dollars that are needed to be invested in to get to that place.

(49:35):

But with all of these cannabis companies and hemp companies that started off, there’s all these facilities out there right now that can be picked up for pennies on the dollar. So it’s a great time to jump in. It’s a great time to invest in some of these facilities that are fully functional, ready to go, but they’ve gone out of business and literally can pick those whole operations up for pennies on the dollar. I also have a genetics that I’ve been collecting and seeds that I’ve been collecting for years. Not only do I have the high THC ones, but I’ve got all the minor cannabinoids and all the terpenes covered. I have some high ling seeds that were collected from a friend of mine who recently passed away. He was a drug smuggler in the sixties, seventies, and he collected all these seeds and then he started breeding them and then he got sick.

(50:32):

So he had all these seeds and he started sending them to me. But he goes, I really want to get these good ones up and going again, so I’m going to send them to you. So he gave them to a mutual friend, and then he called the mutual friend and said, I need to go to the hospital. And then the next morning he died after the package was come into my house. So I have all these really old genetics and these really stable genetics with all of the cannabinoids and all the terpenes covered, not just the high THC one, but all the minor ones. So not only do I bring into your operation getting ready for schedule three, which is all going to be about therapeutics, and I have all the genetics that come with me. So not only are you working with the federal government being vetted all these things, but you’re also getting great genetics to start the process of creating great therapeutics.

TG Branfalt (51:35):

Tom, thank you so much for being on the show and for telling people not too dillydally because changes are coming soon.

Farmer Tom Lauerman (51:59):

Yeah, I want to thank everybody, at Ganjapreneur. You guys have been super good to me over the years. I appreciate getting to know you guys and supporting you. It’s definitely my go-to place to get cannabis news on a daily basis, kind of what’s breaking and yeah, it was pretty interesting to see what was going on with the DEA, getting their feedback, the public feedback. Nine out of 10 people want reform, want Descheduling want rescheduling, and then there’s only a handful of middle state attorney generals out there who really don’t want it. They’re still stuck in the caveman days and don’t want to budge. It’s too lucrative. It’s a money source for them. For all law enforcements, when they raid somebody, they can take your house, they can take your boats and your car, whatever you got, and that funds them. It’s money into them. So when cannabis became legal, they’re losing money from it.

TG Branfalt (53:07):

Money is also the only reason Smart Approaches to Marijuana exist, which is the opposition group who did a sort of form letter campaign against the federal rescheduling proposition and were one to every 100 was in opposition. Tom, thank you again so much for being on the show. That is Tom Lauerman, founder of Farmer Tom Organics, medical cannabis cultivator, federal policy reform advocate and educator and industry consultant.

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California Crackdown on Intoxicating Hemp Products Leads to Seizure of More Than 700 Products

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During a statewide enforcement crackdown on intoxicating hemp products, the California Department of Alcoholic Beverage Control (ABC) seized more than 700 products banned under recently enacted rules, FOX 26 reports. ABC agents inspected 383 establishments as part of the effort. ABC Director Joseph McCullough told FOX 26 that “97% were in compliance with the new regulations.”   

“ABC’s enforcement sweep demonstrated overwhelming compliance among licensees statewide. … While these numbers are promising, 100% compliance is our goal.” — McCullough to FOX 26 

In all, 12 of the 383 businesses inspected were in violation of the new regulations, which were approved by Gov. Gavin Newsom (D) as emergency regulations last month. Regulators seized the products of 14 brand names, including Cheech and Chong branded products. Cheech and Chong’s brand was among the plaintiffs in the legal challenge to the hemp ban, which is ongoing; however, last week a judge ruled that the ban could remain in effect while the case makes its way through the courts. A trial conference date for the case is set for November 22. 

Under the emergency rules, any hemp-derived cannabinoid products sold in the state must contain “no detectable amount of total THC,” can only be sold to individuals aged 21 or older, and set a five-serving-size cap for such products. 

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U.S. Supreme Court Hears RICO Arguments in Case of Truck Driver Fired Over Failed Drug Test

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The U.S. Supreme Court on Tuesday heard arguments over whether a truck driver who was fired for failing a drug test after using a CBD wellness product can sue the manufacturer under the Racketeer Influenced and Corrupt Organizations Act, or RICO, the New York Times reports. Provisions of RICO require claimants to show injury to “business or property” and the truck driver, Douglas Horn, contends his business was injured by the product, Dixie X, which was advertised in High Times magazine as containing no THC. 

Horn sued Medical Marijuana Inc., Dixie Holdings, and Red Dice Holdings under RICO, claiming the companies engaged in a pattern of racketeering carried on through an enterprise that included mail and wire fraud. Under RICO, courts can award triple damages to plaintiffs that show the defendant’s racketeering activity injured them in their business or property, a phrase the Supreme Court previously determined excludes personal injury. 

A federal trial judge has ruled that Horn’s injury is personal, rather than “business or property.” During the arguments, Justice Ketanji Brown Jackson disagreed saying Horn is not claiming that he got ill because of the product.”

“He’s not saying he was personally injured. He didn’t even know that he had ingested THC until the testing and the firing.” — Brown via the Times

Justice Clarence Thomas seemed to believe that Horn did not meet the burden under Rico, saying that “Medical marijuana did not fire you.”

The court’s decision is likely to come in June or July.

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Curaleaf Dispensaries in Arizona Selling Election-Themed Strains Based on Presidential Candidates

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Curaleaf dispensaries in Arizona are selling election-themed flower strains representing the Republican, Democratic, and Green Party candidates for U.S. president, FOX 10 Phoenix reports. The strains are called Kamala Kush, for Democratic candidate Vice President Kamala Harris; Donald OG, for Republican candidate and former President Donald Trump; and Space Jill for Green Party candidate Jill Stein.  

In an interview with FOX 10, Curaleaf representative Luke Flood, said “This is a fun industry and we tried to have as much fun as possible with this from an ideation side of things.” 

“So all three are testing right now around 29.5%. We want it to be a relatively clean slate and with all being a hybrid dominance, it depends on the palette, from the flavor profile side of things, but overall would people refer to you know, the flavor profile, being a little bit on the earthlier side, cheesy, zesty potentially.” — Flood to FOX 10 

Flood noted that sales for the strains representing Harris and Trump are “neck-and-neck.”  

The products, part of the company’s ‘Toke the Vote’ campaign, retail for $30 an eighth and are available at all 16 of the company’s Arizona locations through Election Day, November 5. 

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Study: Cannabis Use ‘Significantly Associated’ With Higher Exercise Rates

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Researchers at Brigham Young University in Utah found in a recent study that cannabis use is “significantly associated with higher prevalence of physical activity,” and that the prevalence of physical activity was generally much greater in states and territories “where cannabis is legalized for recreational and medical purposes.”

Additionally, researchers noted that patients with chronic conditions who use medical cannabis were more likely to be physically active than those with chronic conditions who do not use medical cannabis.

The study, published last week in the Journal of Cannabis Research, used data from 2016 to 20222 to evaluate associations between current cannabis use and exercise habits for adults aged 18 and older.

“As public health policy strives to influence better population health from scientific knowledge about the health challenges and benefits of cannabis use, the results of this study indicate that legal medical cannabis promotes greater physical activity in those experiencing chronic medical conditions and legal recreational cannabis promotes (even more so) greater physical activity in those not experiencing chronic medical conditions.” — Excerpt from the study’s conclusion

“These conclusions contradict longstanding stereotypes alleging that cannabis consumers are lazy or apathetic,” cannabis advocacy group NORML’s Deputy Director Paul Armentano said in a statement. “It’s unfortunate that many of these false claims have historically guided public health messaging about cannabis and have also been used to stigmatize and discriminate against those who consume it responsibly.”

The study is not the first to note that cannabis use could be linked to healthier exercise habits: in 2021, two studies found cannabis use to be associated with greater levels of exercise, further debunking the false “lazy stoner” stereotype. And, in 2019, a University of Colorado Boulder study found more than 80% of respondents enjoyed combining cannabis consumption with their exercise regimens.

Additionally, in 2022, UK researchers noted in a study that cannabis consumption is not associated with increased apathy among adults and adolescents.

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Florida Chamber of Commerce Lauches Anti-Cannabis Legalization Website

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The Florida Chamber of Commerce has launched a website opposing Amendment 3 – which if approved by voters would legalize adult-use cannabis in the state. The website, flbizagainsta3.com, opens with a YouTube video of Chamber President and CEO Mark Wilson arguing against the reforms.    

“Just like pregnant pigs had no place in our state constitution decades ago, legalizing drugs should not be rammed into our foundational document just because one company can dump $100 million into an ad campaign. The risks far outweigh any potential benefits, and we urge all Floridians to stand with us in opposing this dangerous amendment.” — Wilson, in the video 

The site also includes anti-legalization rhetoric from state officials, including Department of Corrections Secretary Ricky Dixon and State Attorney Larry Basford, along with members of city chambers of commerce.  

The campaign to enact the reforms is the most expensive cannabis legalization campaign since 2010, with supporters and opponents of Amendment 3 raising a combined $105.08 million by the end of September, according to a Ballotpedia review. The totals surpass the funds raised in California during the 2016 election cycle when Proposition 64 was on the ballot.    

According to the Ballotpedia review, as of September 23, upporters of Amendment 3 had raised $90,441,407 to support the ballot initiative, while opponents have raised $14,640,649. 

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Kamala Harris Pledges to Federally Legalize Cannabis if Elected President

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The presidential campaign for Vice President Kamala Harris (D) said on Monday that Harris would federally legalize cannabis if she wins the election. The announcement came via an update to the campaign agenda focusing on the vice president’s plan to “deliver for Black men and their families.”

The five-part plan includes “Legalizing recreational marijuana and creating opportunities for Black Americans to succeed in this new industry,” according to the campaign, and the legalization policy would “break down unjust legal barriers that hold Black men and other Americans back.”

During her tenure in the Senate, Harris — who as a prosecutor and attorney general in California once worked to put Americans in jail for cannabis-related crimes — evolved her political stance on cannabis and co-sponsored legislation to remove cannabis from the Controlled Substances Act (CSA).

The Biden Administration is currently maneuvering to move cannabis from Schedule I to Schedule III under the CSA. However, while this change would reduce restrictions, cannabis possession would remain a federal crime — and the vice president said on a podcast last month “We have come to a point where we have to understand that we need to legalize it and stop criminalizing this behavior.”

Meanwhile, Harris’ opponent, former President Donald Trump (R), recently said he would vote ‘yes’ on the Florida adult-use cannabis amendment heading to voters this November, and that he supports rescheduling cannabis under federal law and giving cannabis companies the ability to access banking services. The former president, however, stopped short of supporting federal cannabis legalization and previously stated he believes it’s an issue best left for individual states to decide.

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Judge Rules California’s Ban on Intoxicating Hemp Products Can Remain in Place

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A California court last week blocked a legal bid by hemp industry operators in the state to end enforcement of the state’s emergency regulations banning hemp-derived THC products. In a statement, Gov. Gavin Newsom (D) said officials “are pleased the court saw through their bogus arguments and put the safety of Californians first in its decision.” 

“We will not sit on our hands while bad actors in the hemp industry target our children with dangerous and intoxicating hemp products containing THC at our retail stores. Industry concerns about the regulations are more about protecting their profit than the public.” — Newsom in a press release 

The decision by Los Angeles County Superior Court Judge Stephen I. Goorvitch upholds California’s restrictions, which prohibit selling any industrial hemp food, beverage, or dietary product intended for human consumption if there is any detectable THC or other intoxicating cannabinoids per serving. 

In the ruling Goorvitch found that the plaintiffs did not demonstrate that the regulations would “cause widespread catastrophic destruction” of the state’s hemp industry, noting that even though they cannot sell food products with detectable levels of THC, they can sell other products, such as hemp flour and lotions and can sell hemp products with THC through the state’s adult-use cannabis system. The judge also found that the risks to children from the products outweigh the businesses’ interests.        

In a statement to Courthouse News Service, Jonathan Miller, general counsel for U.S. Hemp Roundtable, one of the plaintiffs, said the organization is reviewing its options for proceeding. 

“We still hold out hope that Governor Newsom will come to the table and work with industry to achieve our mutual goal – to robustly regulate hemp products and keep them out of the hands of children – without devastating hemp farmers, business and consumers as does his emergency regulation,” he said.  

While Goorvitch declined to impose a preliminary injunction, he did set a trial conference date for November 22. 

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Missouri Officials Certify Less Than Half of Cannabis Social Equity Licenses

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Just seven of Missouri’s 24 social equity cannabis dispensary applicants had their licenses approved by officials. The other 17 dispensary license winners were found ineligible by the Division of Cannabis Regulation (DCR) for “failure to provide adequate documentation” that the licensee met the criteria, according to the agency’s October 10 report 

Another 15 of the 33 wholesale licenses needed to create cannabis cultivation facilities were also deemed ineligible. In all, less than half – 25 of the 57 licenses – were certified by the agency. 

Licenses that were unable to be certified are subject to revocation, the report states, but those subject to revocation will have 30 days to respond to the denial. If the licenses are revoked, they will be added to the pool of licenses available in the next round.  

The 24 dispensary licenses were first awarded last June through a lottery process; however, a review by the Missouri Independent found 14 of those licensees are likely linked to Missouri investors and out-of-state groups accused of using individuals that meet the social equity requirements as fronts to obtain the licenses. State regulators have cracked down on that scheme, which often involves flooding the lottery application process to gain an advantage.   

According to the DCR, the denied licensees had “Issues in relation to … failure to provide adequate documentation to verify the majority owner met the eligibility criteria chosen at application, a disqualifying felony offense, and/or failure to provide documentation that the facility would be operated by eligible individuals as required” under state law. 

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New York Cannabis Convention in Syracuse October 25-26

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NECANN’s third annual New York Cannabis Convention presented by Berkshire Bank is October 25-26 at the NY State Fairgrounds (Center of Progress Building) in Syracuse. The largest gathering of the cannabis industry in the state includes three speaker tracks on the latest in the New York cannabis industry. The two-day event is highlighted by the Friday keynote presentation from the Weird Brains group: The Stoner Community As Subject Matter Experts. Other speaker presentations include updates to New York’s licensing roll out and new industry regulations being debated by lawmakers.

In addition to the educational component of the two-day event, 100+ businesses will be exhibiting the latest in cannabis products and services, with over 3,000 cannabis industry professionals expected to attend. The exhibit hall floor is open both Friday and Saturday from 10am to 3pm with displays, demonstrations and networking.  As always, a number of networking mixers surround the convention, see https://necann.com/new-york-convention/ for updates.

“Like all NECANN events, the New York Cannabis Convention is individually designed for this state’s cannabis market, giving a real opportunity for local industry leaders, advocates, entrepreneurs, career and knowledge seekers, and the canna-curious to come together to learn and meet the people paving the way for this exciting new industry,” said Marc Shepard, Founder and President of NECANN. “In a growing cannabis market like New York, it’s a timely opportunity for operating and new businesses alike to engage with and learn from consumers, promote their businesses, and promote their products.”

Programming details are available at: CLICK HERE

Exhibitor Floor Map: CLICK HERE

Advance tickets are available at: CLICK HERE

Location:NY State Fairgrounds Center of Progress Building

Hours: Friday: 10am-3pm  |  Saturday: 10am-3pm

Ahttps://nysfairgrounds.ny.gov/venues/center-of-progress-buildingdmission: $30 for one-day pass; $50 for two-day pass

About NECANN: Since 2014, NECANN has hosted the largest, most comprehensive cannabis industry event series in the country. Our annual schedule includes conventions in New Jersey, New York, Massachusetts, Vermont, Illinois, Maryland, and Connecticut, making it the largest series in the country. Information for NECANN events is available online at www.necann.com.

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Federal Judge Overturns Part of New Jersey Law to Restrict Intoxicating Hemp Sales

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Intoxicating hemp products were to be pulled from New Jersey store shelves on Saturday per the next stage of the rules signed into law last month by Gov. Phil Murphy (D).

The products — most typically seltzers containing hemp-derived delta-8 THC and other intoxicating cannabinoids — were sold prolifically in gas stations and liquor stores throughout the state and were not initially age-restricted by law. The new law sets the products’ age requirement at 21 and mandates that intoxicating hemp products only be sold by licensed cannabis retailers operating under the purview of the New Jersey Cannabis Regulatory Commission.

But the rules face a legal challenge brought by a group of hemp companies who want to pare back the law to just the 21-year age requirement, and federal Judge Zahid Quraishi last week overturned a part of the law that banned out-of-state hemp products because it violated the federal dormant commerce clause, which prohibits interference with interstate commerce, Asbury Park reports.

The ruling came just days before the hemp products were to be pulled from store shelves statewide — but while the ruling is unlikely to stop the ultimate implementation of the new law, the state’s cannabis regulators announced that officials would be enforcing only the age restriction portion of the law while the latest decision is under review.

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Report Finds Texas Medical Cannabis Program Inadequate for Patients

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The Texas Department of Public Safety (DPS) said the state’s medical cannabis program does not provide “statewide access” to medical cannabis and suggested that officials should take steps to expand accessibility for patients.

The Compassionate Use Program (CUP) allows for limited access to cannabis for patients with a qualifying condition and doctor’s recommendation, but only in non-smokable forms. Last week, DPS issued a report published in partnership with medical cannabis consulting firm Weeds, Inc., investigating the sustainability and accessibility of the program.

The report found the state could boost patient access by allowing for more retailers — there are currently just three dispensaries in Texas, which is the second-largest state in the U.S. in both size and population — and reducing some of the restrictions that retailers face. Additionally, the report suggests that expanding product options — as many patients have left the program due to the proliferation of delta-8 THC products derived from hemp, which is legal and largely unregulated in Texas — could improve accessibility.

However, the report stops short of making any official recommendations.

“At this time, given the proximity to the beginning of the 89th Texas Legislature, which convenes in January 2025, DPS will not be recommending any changes to CUP. However, the report has been provided to state lawmakers in the executive and legislative branches to determine what changes to the program, if any, may be warranted in the future.” — DPS statement, in a press release

Meanwhile, voters in Austin, Denton, Elgin, Killeen, and San Marcos have passed local cannabis decriminalization policies, and three more cities — Lockhart, Bastrop, and Dallas — are set to consider the reforms this November. Voters in Harker Heights also approved the reforms but the city council repealed the initiative. Texas Attorney General Ken Paxton sought to nullify the state’s local cannabis decriminalization ordinances but the lawsuit was dismissed in June.

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New Hampshire Fails to Stop Veto of Bill to Let Medical Cannabis Operators Use Greenhouses

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New Hampshire lawmakers this week failed to override a veto by Gov. Chris Sununu (R) of recent legislation that would have let licensed medical cannabis cultivators grow cannabis inside of greenhouses, Marijuana Moment reports.

House lawmakers voted 270-55 to override the governor’s veto but the state Senate blocked the effort, voting 14–9 against.

The bill sought specifically to allow the state’s medical cannabis operators to build greenhouses on their cultivation sites if approved by the state Department of Health and Human Services. Current state law requires medical cannabis to be grown indoors — supporters of the bill said letting the medical cannabis companies build greenhouses would help the industry cut costs and reduce its environmental impact.

Gov. Sununu vetoed the bill in July after it passed both legislative bodies. At the time, the governor argued the bill provided “scant detail regarding safety, security and location requirements” for the changes, calling such details “necessary to ensure appropriate controls.”

The bill’s sponsor, Rep. Suzanne Vail (D), said in the report that under the proposal, the new greenhouses would have been subject to the same stringent regulations as a new brick-and-mortar site.

“Contrary to the governor’s veto message, any new facility would go through the same process as the original dispensaries and their original cultivation locations, to get townspeople’s approval and to meet the rigorous security requirements that are already in place in the facilities that we have set up right now.” — Vail, via Marijuana Moment

Gov. Sununu did sign into law two medical cannabis expansion bills this year in July — one expanding who can recommend patients to the state’s medical cannabis program, and one to making it so qualified health professionals can recommend patients to the program for any condition they see fit.

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Massachusetts Cannabis Regulators Issue Fines for Pesticide & Record Keeping Violations

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The Massachusetts Cannabis Control Commission (CCC) issued fines on Thursday to Curaleaf and Ascend Wellness — two of the state’s largest cannabis companies — for self-reported improper pesticide use and record-keeping violations, The Boston Globe reports.

Regulators fined Ascend Wellness $85,000 for failing to comply with the state’s track-and-trace system which is supposed to keep track of all cannabis products produced and/or manufactured in the state, from seed to sale. The error ultimately left about 900 cannabis products that could not be tracked by regulators.

“Ascend is fully committed to adhering to the regulations set forth by the CCC and places great importance on compliance. We have already implemented most of the necessary actions and remain dedicated to working with the CCC to restore trust and confidence as we move forward.” — Frank Perullo, Ascend Wellness president and co-founder, via The Globe

Additionally, the Commission fined Curaleaf $80,000 due to a “systemic problem” of failing to follow best practices in its Amesbury and Webster cultivation facilities for limiting pesticide contamination, including leaving certain open doors against state rules and failing to seal doorways and ducts properly. Regulators found at least three cannabis product samples from the company contaminated with pesticides.

A spokesperson for Curaleaf told The Globe, “We feel confident about the changes made to ensure this doesn’t happen again,” and that the company’s number one priority is the “health and safety of our patients and customers.”

Curaleaf operates five dispensaries in Massachusetts, and Ascend operates three.

 

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Portland Dispensary Employee Turns Himself In After Deadly Shooting

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A cannabis store employee has been charged with two counts of second-degree murder after turning himself in following a deadly shooting at La Mota in North Portland, according to news outlet KGW. Jason Steiner, a Gresham resident and employee of the cannabis retailer, surrendered to detectives on Wednesday. Steiner pleaded not guilty to the charges and filed a notice for self-defense the next day, according to KPTV. An Oregon Live report stated that police indicated Steiner was working at the dispensary when the incident took place.

The incident occurred on Oct. 3 when police responded to reports of a shooting near North St. Louis Avenue and New York Avenue in the St. Johns neighborhood. Upon arrival, officers discovered two individuals, 18-year-old King Lawrence and 20-year-old Tahir Burley, dead at the scene.

According to investigators, the shooting took place during an attempted armed robbery involving three suspects. Portland police are continuing their search for the third suspect, and have encouraged anyone with knowledge of the incident to come forward.

Photos from inside the store shared by KGW, taken after the robbery, show extensive damage, including shattered glass, broken display cases, and a back pick-up window. A sign near the scene noted that the store had recently started closing earlier due to a rise in robberies, with the shooting occurring just 30 minutes after the store closed its doors.

Dispensaries like La Mota are frequent targets for robberies largely due to the substantial amounts of cash they are forced to keep on-site. This vulnerability stems from the federal government’s ongoing inaction in providing cannabis businesses with access to basic financial services, such as credit card processing and banking.

Despite the legalization of cannabis in many states, federal restrictions prevent these businesses from accessing traditional banking systems, leaving them reliant on cash transactions and making them prime targets for crime. Calls for federal reform continue, as the cannabis industry faces significant risks in the absence of such protections.

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Nebraska Officials Claim Fraud and Malfeasance on Medical Cannabis Petitions

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Nebraska officials are questioning the validity of more than half of the already-validated signatures on each of the state’s two petitions to legalize medical cannabis, the Nebraska Examiner reports. A legal brief filed last week by state Attorney General Mike Hilgers on behalf of Secretary of State Bob Evnen contends that an ongoing investigation “casts serious doubt” on about 49,000 signatures on the petitions.  

“In the aggregate, the petition circulator fraud and notary malfeasance described taints – strips the presumption of validity – from tens of thousands of submitted signatures submitted by the Sponsors.” — Hilgers, in the brief, via the Examiner 

In the filing, Hilgers and Evnen are asking the courts to determine the number of “valid” signatures and void the election results if there are not enough validated signatures. 

In a statement, Nebraskans for Medical Marijuana, the group behind the petitions, said “It is appalling that the State of Nebraska is working to silence and disenfranchise the voices of tens of thousands of Nebraskans based on primarily unsubstantiated technical issues.”  

“These issues have absolutely nothing to do with the more than 115,000 voters who signed each of these petitions,” the statement said, “or the dedicated patients and Nebraska citizens who worked hard to get the issue on the ballot.”     

The filing alleges fraud or malfeasance in petitions circulated in 72 of the state’s 93 counties, claiming three notaries served as both circulator and notary on an undisclosed number of petitions and that at least six notaries validated petitions outside the presence of the circulator who gathered the signatures.  

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Marijuana Policy Project Releases Gubernatorial and Senate Voter Guides

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The Marijuana Policy Project (MPP) on Tuesday released its 2024 cannabis policy reform voter guide for the governors and U.S. Senate races this November.  

In a statement, Karen O’Keefe, MPP’s director of state policies, said the guide’s goal is “to educate voters on where candidates stand on cannabis policy reform so that they can cast informed votes.”

“With Election Day quickly approaching, voters across the country will soon have an opportunity to cast ballots that will shape prospects for cannabis policy reform for years to come.” — O’Keefe in a press release

There are 11 states that will be choosing their governor this Election Day, while 34 Senate seats are on ballots. The gubernatorial guide includes public statements regarding cannabis and their votes on cannabis-related legislation, if applicable. The Senate guide includes public statements, responses to MPP survey questions and, for incumbents and those who hold other elected offices, how they voted on cannabis-related bills.

A Gallup poll released last November found 70% of Americans back broad cannabis legalization in the U.S. In all 24 states and Washington, D.C. have legalized cannabis for adult use. In November, voters in three states – Florida, North Dakota, and South Dakota – will decide whether to enact the reforms.   

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Survey: Government Least Likely to Be Source of Information on Cannabis

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Government sources are the least likely sources utilized by individuals when seeking information about cannabis, according to a study published this month in the Journal of Cannabis Research. The researchers found just 4.7% of survey respondents used government resources for cannabis information.  

The survey included 1,161 respondents, of which 27% reported consuming cannabis in the past year. Friends and family were the most common information sources for those surveyed (35.6%) followed by websites (33.7%). Healthcare providers were utilized for cannabis information by 9.3% of respondents – but 16.4% of those surveyed who were registered medical cannabis patients said they obtained their information from a healthcare provider – while dispensary employees were the source of information about cannabis by 8.6% of respondents.   

“As cannabis accessibility increases and legality continues changing, there is a strong need for better clinician education, improved public health outreach, and improved communication between patients and clinicians about cannabis.” — “Cannabis-related information sources among US residents: A probability-weighted nationally representative survey,” Journal of Cannabis Research, 10/1/24 

The survey included adults 18 and older. Gender demographics among the survey-takers were nearly even, with 51% identifying as female and 49% identifying as male. The researchers note that “past year cannabis use was positively associated with all information sources except government agencies and popular media articles.”  

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Cannabis Tech Firm Formerly Valued at $700M Going Out of Business

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Eaze Technologies Inc., the San Francisco-based cannabis technology giant that was once valued at more than $700 million, is laying off more than 500 workers and closing down later this year, SF Gate reports. The company launched in 2014 and offers on-demand delivery services in California and Michigan.

Eaze CEO Cory Azzalino said in a LinkedIn post on Monday that the company sold its assets at auction in early August and had begun “winding down operations” with plans to be shuttered completely by December 31.

“As we proceed with the transfer of the company’s assets, we will provide more clarity on the timing of events. We anticipate being able to provide an update on next steps on or around November 15, 2024. For employees represented by UFCW, we have already provided the Union notice and expect to engage with them in bargaining discussions regarding the effects of the wind down.” – Azzalino, in a letter to employees

Jim Araby, a vice president at the United Food Commercial Workers International Union (UFCW), told SF Gate that Eaze’s closure — and the resulting loss of nearly 500 union jobs — “should be a wake up call to the state legislators and the government that more action needs to be taken.”

The folding of Eaze marks the latest downfall of a California cannabis industry giant as the market continues to struggle against over-regulation and competition from illicit cannabis sources:

  • California-based MedMen, which once held retail dispensary licenses in state markets across the U.S., filed for bankruptcy earlier this year, entering receivership with more than $410 million in liabilities owed.
  • Last June, Herbl — formerly among the largest cannabis distributors in California — shut down operations and entered receivership.

In 2021, two former Eaze consultants were found guilty of having defrauded banks into processing more than $150 million in cannabis purchases, and were sentenced to prison.

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Arkansas Medical Cannabis Initiative Has Signatures to Qualify for November Ballot

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The Director of Elections at the Arkansas Secretary of State’s office said last week the petition to expand the state’s medical cannabis program has enough signatures to qualify for the November ballot, THV11 reports.

“I can confirm that no less than 91,000 signatures were verified pursuant to the counting as ordered by the Arkansas Supreme Court.” — Leslie Bellamy, director of elections, in the report

The admission came after Secretary of State John Thurston said previously that the signature-gathering effort by Arkansans for Patient Access, the group behind the medical cannabis expansions campaign, had fallen more than 2,000 signatures short of the 91,000 signature threshold to qualify for the ballot.

But the campaign appealed, arguing that Thurston failed to consider signatures collected during a “cure period” granted after the campaign initially came up short on signatures in July but, per state law, earned an extra month to pursue its goal. The Supreme Court ultimately ordered the secretary of state to verify the remaining signatures.

The amendment itself sought to improve patient access by allowing more medical professionals to certify people to the program and allowing medical cannabis ID certifications to be conducted via telemedicine. Additionally, the amendment would have legalized home grows for patients, allowed for out-of-state patient IDs, increased the patient registration period from one year to three years, and removed patient program application fees.

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Interview: Federal Rescheduling of Cannabis

Morgan Fox: The Symbolism and Reality of Federal Cannabis Rescheduling

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The DEA’s public hearing regarding changing the classification for cannabis is scheduled for December 2nd, but what would Schedule III really mean for the industry as it exists today? In this episode of the Ganjapreneur Podcast, host TG Branfalt sits down with Morgan Fox, Political Director for NORML, one of the nation’s leading cannabis advocacy organizations founded in 1970. Morgan brings over a decade of experience in cannabis policy reform to the conversation, discussing the Biden administration’s announcement on cannabis rescheduling and the real-world impact it may—or may not—have on the cannabis industry, consumers, and criminal justice.

Morgan also sheds light on the intricate political dynamics that influence cannabis policy at the federal level, from potential barriers in the rescheduling process to the ongoing battle for meaningful reform in Congress. Whether you’re interested in cannabis law, industry tax issues, or the future of cannabis legalization, this episode offers deep insights into the current state and future possibilities of cannabis policy in the United States.

Find the episode wherever you listen to podcasts, or listen via the media player below! (Scroll down for the full transcript.)


Listen to the episode:


Read the full transcript:

Editor’s note: this transcript was auto-generated and may contain errors

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TG Branfalt:

Hey there, I’m your host, TG Branfalt, and this is the Ganjapreneur.com podcast where we try to bring you actionable information and normalized cannabis through the stories of entrepreneurs, activists, and industry stakeholders. Today I am joined by Morgan Fox. He is the political Director for NORML, which has advocated for cannabis policy reforms since 1970. How are we doing this afternoon, Morgan?

Morgan Fox:

Doing great. How about yourself?

TG Branfalt:

Cool, man. Cool. We are recording this interview’s on the heels of the Biden administration announcing that they would reschedule cannabis from a Schedule one drug to a Schedule three drug. But before we get into that, my man, I know you’ve been on the show before, but just remind people about your background and how long you’ve been at NORML and what your job entails.

Morgan Fox:

Sure. So I’ve been involved in a cannabis policy reform professionally since 2008. Started out at Marijuana Policy Project as an intern with basically just a backpack, a guitar to skateboard, rolling down to DC from Cleveland and was offered a full-time position shortly after that. Spent about 10 years at Marijuana Policy Project finishing up there as their director of communications before moving over to the National Cannabis Industry Association as their media relations director, and then spent a little under four years there before pivoting to NORML and working primarily in federal policy and lobbying. Although these days I wear a lot of different hats within the organization, but I really wanted to move more towards a consumer advocacy perspective and NORML was a perfect opportunity for do that. So really happy to be at this organization doing the work that’s been going on for more than 50 years now, as you said, a very momentous time.

TG Branfalt:

Yeah. So let’s talk about that a bit. There’s a lot of punditry going on, a lot of what will this do in your eyes as political director for NORML in NORML’s eyes? What will Federal do sort of broadly and for the cannabis industry at large?

Morgan Fox:

Before we get into that, I think it’s really important that we talk about the timing.

TG Branfalt:

All right.

Morgan Fox:

And because I think a lot of people might have the misconception that because of the Biden administration announcements and because of a lot of the rumors that have been swirling around on the internet, et cetera, that this is a done deal and it is not. DEA has final jurisdiction over this call unless Congress acts. Now, obviously, the administration can put pressure on federal agencies to enact the policy changes that it wants to see, but unfortunately, the Biden administration is not really in a position to do that with an election coming up with increasing partisan ranker going on within Congress and just generally in the United States, but also when we’re seeing pretty much daily hearings in Congress about weaponization of federal agencies for political purposes, the Biden administration really isn’t in a position to put too much pressure on the DEA to either expedite this ruling or to rule in any particular way despite all of the research that backs up this move, this is one of the problems with calling for complete descheduling. So when this process began with the formal announcement from the DEA and the Department of Justice that there was a notice of prose rulemaking, the White House office had 60 days to approve that and move it further down the process, they did that within a couple of days, which was not entirely unexpected, but still a really good sign that the administration supports this move and that is willing to throw its way behind it. Bureaucratically now we’re entering into the public comment period, which starts officially tomorrow, supposedly and will last

TG Branfalt:

May 21st. May 21st,

Morgan Fox:

Exactly. And will last approximately 60 days normally. And our allies are going to be trying to flood the comment section with information that the DEA really needs to make a decision on this because if you noticed, and the notice of proposed rulemaking was almost a hundred pages long and essentially laid out all of the reasons why they are going to ignore the information that HHS sent them, which a lot of people are saying is binding, but as soon as the public comment period begins is no longer binding, it has to be given significant deference. But that’s a very subjective term.

TG Branfalt:

Lemme just ask you real quick is how much of a difference would, I guess, as you put it, flooding this public comment? What kind of impact could that have?

Morgan Fox:

Well, I think it could have a significant impact because all this stuff goes on the record, and we’re going to be working with physicians, with patients, with average citizens, with advocacy groups to try to get the best information submitted during that public comment to make sure that people are seeing the real science and also seeing the real impacts that rescheduling could have or that rather not that rescheduling could have, but that keeping cannabis in Schedule one will continue to have. But that’s a very important point, but that process only lasts 60 days, so that’s going to be starting on May 21st. Supposedly there might be a delay of a couple of days, but it seems like the process is moving already after that 60 days. There is an administrative review process, so for the first 30 days of the comment, people can request hearings. I am fairly certain that those hearings will be granted because DEA wants more opportunity to show why it disagrees with the recommendations based on scientific information to not reschedule cannabis.

TG Branfalt:

And DA thinks that they have that scientific information,

Morgan Fox:

They think they do, and they want every opportunity to show it. And because they are the sole arbiters of the administrative judicial review, they can make that last as long as they want in previous attempts. And NORML has been involved in rescheduling petitions since basically 1972, and this period has always lasted much longer than we thought it would. We’re talking years. So the DEA has the ability to make this period after the public comment last for as long as they want, and then after that, there’s an initial period of rulemaking and debate, and then once they make a final recommendation, there’s 30 days until it becomes law, at which point it is then able to be challenged through litigation before it really becomes a law. So we’re talking about a process that despite the fact that the Biden administration fast tracked its portion of it could potentially last years. So I just wanted to temper everyone’s expectations that this is something that’s going to happen immediately because it’s a long drawn out process that everybody that wants to see these changes happen is going to have to be involved in some fashion.

TG Branfalt:

I mean, but with your explanation, it doesn’t sound exactly like the monumental decision that the administration sort of pegged it as I

Morgan Fox:

Well, symbolically, I think it’s very, very important. This is the first time that any administration or HHS has said that cannabis does not belong in Schedule one, which we all know is the case. And it’s definitely the first time that the administration has fast tracked its portion of the review process after the notice of proposed rulemaking has happened. I think that solidly shows that the Biden administration is behind this change, but again, it’s going to take a while. So I think that we have to temper our expectations in that regard, but also we really need to think about what sort of practical changes a switch to Schedule three would actually have on both the industry as well as consumers and criminal justice.

TG Branfalt:

I do want to get to that, but let’s go back a little bit here. In layman’s terms, what would federal rescheduling actually do?

Morgan Fox:

Really the most notable change is that it would resolve, at least in theory, resolve the two 80 E tax issue for licensed cannabis businesses under the current two 80 E tax code. Legal cannabis businesses cannot deduct a lot of the same normal business expenses that any other industry can, resulting in an effective federal tax rate of sometimes up to like 70 or 80% if not more, in addition to all of the state taxes and local taxes and regulatory compliance costs that they have to deal with. Two 80 E is a big reason that most cannabis businesses are operating in the red right now and will continue to do so. It’s not the be all end all solution to their financial problems by any stretch of the imagination, but it does take a significant amount of heat off that. I think most importantly though, it’s to talk about what it doesn’t do, which is it does not harmonize state and federal cannabis law.

It does not all of a sudden make cannabis legal medically because in order to be in compliance with Schedule three, cannabis would have to be approved by the FDA. This is a process that could take 10. Well, first of all, it’s a process that the DEA or the F FDA A is not set up to handle. Cannabis is relatively unique and there’s no history within the FDA of approving a substance that has adult use purposes. It has medical purposes. It comes in many different forms. It’s a botanical substance, so it’s notable in any sort of a consistent manner. Basically, the FDA is not set up to deal with things like cannabis as it currently exists. It is definitely set up to deal with cannabinoid drugs that have been developed pharmaceutically such as Dronabinol, Marinol, ros, Epidiolex, et cetera. But in order to get those sort of specific cannabinoid pharmaceutical products approved takes tens to hundreds of millions of dollars and many years of approval process.

So it’s pretty clear that cannabis is not going to be approved as a plant medicine or just as a recreational plant or as a plant in and of itself by the FDA under its current structure, there is a lot of talk at the FDA to create a specific lane for cannabis or for specific cannabinoid products that would really encompass all of its different uses and all of its different formulations, but that has not really come to fruition yet. There’s congressional legislation that is looking at that, and I think folks at the FDA are also looking at that. But all that is to say that in order for even medical programs at the state level to be in compliance would, first of all, cannabis would have to be approved by the FDA, which is not going to happen under the current structure. And then if it was then all existing state systems regarding medical or even adult use would have to be completely broken down and start from scratch because cannabis would have to be sold in pharmacies instead of dispensaries.

It would have to be by prescription only. This is what Schedule three means for drugs from a consumer perspective, I think it’s also important to point out that Schedule three doesn’t really remove any significant barriers to research, which I know a lot of people have been talking about. It doesn’t do anything for the criminal justice aspect of cannabis at the federal level in terms of people continuing to get arrested or in terms of either pardons, expungements, clemency, sentencing, relief of any sort. And also there are a number of federal policies in place regarding employment suitability, security clearances, et cetera, that are specific to cannabis and are not related to the schedule whatsoever. That would also have to change. So a simple schedule change is really, I think, only going to impact the two 80 e tax code in any sort of a practical impact in the near term should it be approved, which is not a guarantee. And also that the time in which it would get approved is not a guarantee either.

TG Branfalt:

So I do want to ask you about the timing. Let’s say that this went beyond the whole process went beyond the election, and let’s say that Donald Trump, the Republican presumptive nominee were to be elected could with a sort of swipe of his pen, could he just say, no, we’re not doing this.

Morgan Fox:

I mean, he could certainly direct federal agencies to deprioritize it and in a different political environment might have a whole lot more power over exactly what they do. In particular, threatening to terminate the heads of agencies and organizations within the federal government. If they don’t comply, then the Biden administration currently has. So yes, I think it could get shut down or slowed down significantly. I think in that particular scenario, it really depends on whether or not a presumptive president Trump recognizes the political usability of allowing the process to go forward.

TG Branfalt:

Forward. And so you did mention that medical cannabis program, state cannabis programs would have to be broken down and start from scratch. Do you think that this is something that we really aren’t talking about? Because it is one of those things where when this was announced and I started talking to my friends who own shops and that sort of thing, and they said, oh, we’ll be able to two 80 E, and they talked about that, but I said, listen man, this could put you out of business effectively because of how schedule three, what’s under schedule three? Is that something that we are not talking about enough?

Morgan Fox:

I think we only have to worry about that if the federal government in particular DOJ and FDA decide that they want to really start enforcing it. DOJ has a current policy now of non-enforcement for people that are in compliance with state medical cannabis laws. That’s actually adjudicated by Congress in a recurring appropriations bill that actually prevents the Department of Justice from spending any money to go after people that are in compliance with state medical laws. And we’re in the process of trying to expand that to adult use programs. But aside from the medical part for adult use, DOJs policy has been since the Cole Memo and even after the recession of the Cole Memo from acting or then Attorney General Jeff Sessions to withdraw the Cole Memo, federal prosecutors have behaved relatively the same as under the Cole Memo, but there’s just a little bit less of an organization wide enforcement on that that could change if there is a change in administration and a change of Attorney General as we saw during the first Trump administration. But the bottom line is that unless there’s a huge uptick in enforcement from DOJ and FDA that states are going to continue doing what they have been doing, which is operating in violation of federal law.

TG Branfalt:

So regardless of this rescheduling proposition, the situation for cannabis businesses is still going to be precarious. Is that correct?

Morgan Fox:

I mean, as precarious as it always has been, it’s still in violation of federal law. There are going to be a number of factors that come into play regarding exactly how precarious it becomes over the coming months and over the next couple of years. But really it does not change things on the ground outside of the tax issue.

TG Branfalt:

And were you and NORML as an organization surprised at this action?

Morgan Fox:

I was surprised at how quickly the wheels of bureaucracy moved within the White House to approve it, that this is a major issue for the Biden administration and in particular vice President Kamala Harris, probably a little bit less so to the president himself, but it’s also an issue that the administration as a whole is really trying to make a standout issue to help attract younger voters. So I mean, I think that aside from the rescheduling conversation, it’s really important for us to continue putting pressure on the administration to do the things that it can do unilaterally, which is expand the scope of the pardons that it has already issued, start making stronger public statements about the need for descheduling and about the need for Congress to start enacting expungement provisions and things of that nature. But as I said, politically, it’s going to be very difficult for the administration to pull any levers in terms of the actual administrative process of schedule review after this point. The fact that they did so quickly I think is a really good sign that they’re in our camp and that they want to try to move this process along as quickly as possible, but now it’s not really in their hands anymore.

TG Branfalt:

And let me ask you about the impact, the overall impact of the, pardon that the pardons that President Joe Biden has given to federal cannabis people convicted of federal cannabis crimes. How much of a sort of was that revolutionary? I mean, how much of an impact did that really have because there’s not a whole lot of federal cannabis convictions for possession?

Morgan Fox:

Well, the estimates about how many individuals were impacted varies because in order to actually get the certificate, you had to individually apply. But all those pardons are in effect. It’s just that they might not necessarily impact somebody’s ability to get a job or to get housing or education unless they have the certificate and they have to go and try to get the certificate themselves. And so I think that additional promotion of the fact that a lot of folks that have these charges is really incumbent on the White House to do, and they’ve been doing a pretty good job of talking of this move and the president went so far as to then extend it a little over a year over or after the initial announcement in order to bring more people under the auspices of the pardon. But the pardon announcements have a very set date.

So anybody that gets arrested after the issue of events of the pardon is not eligible yet. We’re hoping to get expansion on that. But also it’s important to note that a pardon is not an expungement. So your arrest record at the federal level for a low level offense that may have been pardoned by the president is still going to show up in a background check. And you need to have that certificate there to show that it has been pardoned. And even then, it’s not an expungement, but we are talking about thousands of people that are eligible for this and that have been pardoned. Only a few hundred of ’em actually know about it yet and have gotten the certificates.

TG Branfalt:

So you’ve been in DC working on cannabis policy for the better part of a decade. Is this the most weed friendly administration during your time in Washington?

Morgan Fox:

Hands down.

TG Branfalt:

Hands down,

Morgan Fox:

Hands down.

TG Branfalt:

Is that a surprise?

Morgan Fox:

Do President has done more for cannabis policy reform than Joe Biden. Now there’s a lot more that he could do. There’s a lot more that he should do. But in terms of friendly administrations, this is really like a night and day change. During the Trump administration, we saw a few limited public statements and we saw a little bit of movement on criminal justice reform like the First Step Act, but a lot of it was really not focused on cannabis outside of a few pardons and clemency actions specifically directed towards some people that really, really, really deserved it. Folks like Walton Angelos and Alice Johnson. But in terms of mass actions, not really. And the first person that he put in charge of the DOJ was an avowed anti-cannabis drug warrior in Jeff Sessions. Admittedly, he fired him pretty shortly after he rescinded the Cole Memo and he put in somebody that for all of his potential faults and for all of his disagreements with the Trump administration, had made several statements that cannabis enforcement in legal states was not going to be a priority, which I think is a huge step in the right direction.

But yeah, if we’re really breaking it down, even if you go back to Obama, I mean during the first years of the Obama administration, we were still seeing massive raids in California of medical cannabis providers, violent SWAT raids. We never saw any public statements from the Obama administration that cannabis should be legal or that nobody should be put in jail for cannabis. I would like to see the Biden administration now that it’s admitted that nobody should be in jail for cannabis to extend that to nobody should be arrested for cannabis. But that being said, despite the fact that there’s a lot of things that the Biden administration can do in the next couple of months, and if it happens to win reelection for the next four years to improve upon its record, still more than any sitting president has ever done for this issue.

TG Branfalt:

And I want to talk to you about one of the bills in Congress that would legalize cannabis federally, the more act, again, you’re in Washington, you’re there in the sort of dirt of the Capitol. What are the odds that the more act could pass both chambers?

Morgan Fox:

Very good, but not in this current Congress. As I’m sure everybody listening knows, Congress is pretty dysfunctional at this point.

The idea of being able to pass comprehensive descheduling and regulatory legislation is slim to none. We might have some opportunities to be able to pass more incremental legislation like Safe Banking or Bills Protecting Second Amendment rights for lawful cannabis consumers or bills, protecting housing rights for lawful cannabis consumers, legislation that could potentially provide federal funding to states and localities that want to help expedite the expungement process at the local level. Because obviously most arrests happen at the state level. They don’t happen at the federal level. So providing resources to help expedite and move that process along are absolutely necessary, especially since a small amount of dollars go really, really far once you get the system automated. But in terms of passing standalone descheduling legislation, it’s just not going to happen in the current Congress. However, we do have an opportunity to try to get as many co-sponsors as possible on both the Moore Act and on the Senate side, the Cannabis Administration Opportunity Act, so that we can roll into the a hundred 19th Congress with a broader base of support and with enough support that we can actually get these bills introduced very early in the session and start fast tracking them.

TG Branfalt:

And you had mentioned the sort of incremental steps that we could take. In my sort of estimation, I believe that it’s going to be another 50 years before we get full federal legalization in Descheduling, and I think that we will get the maybe incremental steps like you mentioned. Is that me just being grim or what do advocates think about that?

Morgan Fox:

I think we’re on a much shorter timeline than that for Descheduling either administratively or through Congress. But I do think that it’s going to have to come through Congress, but I don’t think it’s going to take another 50 years. I am loathed to estimate exactly how long it could take because unfortunately cannabis is subject to a lot of political realities that are completely unrelated to cannabis that either lower its priority on the consideration scale or that cause people that might be supportive of cannabis policy reform to use it as a cudgel against people across the aisle or to try to attack their political rivals. And we saw a perfect example of this last year where a relatively innocuous veterans related study bill was passed in the Center of Veterans Committee. And then when that bill along with a bunch of other non-cannabis related veterans bills were brought up for a cloture vote to try to skip the whole process and just bring them to a vote. People that were on the Veterans Affairs Committee that voted in favor of that measure and others that were in the package voted no on bringing it to a cloture. And Senator John Corny from Texas was on record as saying that the reason for that was because they did not want to give Senator Tester from Montana who is a Democrat, a win when he was leading up to an election year. So unfortunately, cannabis is often the victim of things that are far beyond our control.

TG Branfalt:

And you had mentioned the Safe Banking Act, which the sort of short version is would allow cannabis companies access to traditional financial services. That legislation has passed the house, and I may correct me if I’m wrong here, six times, 7, 7, 7 times. Anyway, what is stopping it in Congress is it’s still just this politics sort of issue as you just alluded to.

Morgan Fox:

There’s a little bit of that, but also because in order for this to become law, I mean I think that if it were to come up for a vote in the Senate, it would probably pass, but there’s no solid pathway for it in the house right now because standalone legislation regarding cannabis or really related to anything other than appropriations is having a really hard time getting through the house just in terms of getting space on the schedule. As we get closer to the election, that time that’s available is going to be less and less. And also the focus on issues that are not purely political is going to be less and less.

TG Branfalt:

And even with, do you think that the odds are better? Were Democrats to have control of both chambers or because if they had a slim majority like the Republicans do now in the house, they maybe end up in the same sort of position where they’re again trying to, as you said, get standalone legislation through and they’re just not able to do it?

Morgan Fox:

Well, I mean the facts are on the table. We know that we have less co-sponsors in the GOP for any cannabis related bills than we do in the Democratic Party, with the exception of the Second Amendment bills, which me as a nonpartisan guy, but also as a Second Amendment fan are very much in favor of, because I don’t think that you should be treating people differently because they’re cannabis consumers, especially if they’re not medical patients. But by and large, there’s less support in Congress among the GOP than there are among Democrats. But even Democrats have been guilty of deprioritizing this issue when anything else that they feel is more important either politically or policy wise comes up. I think democratic control, both chambers would probably speed things along. But I’m curious about exactly how much I think that getting standalone legislation passed in any GOP controlled chambers in the next Congress is going to be difficult but not impossible, largely because I think that people are much more coming around to the idea that not only are these sensible policies, but also that they’re increasingly popular among their base regardless of political affiliation or political leanings.

For the last couple of years now, we’ve seen that a majority of Republicans support ending cannabis prohibition, and those numbers are climbing, especially among young voters. I think that if you’re looking at retaining power in either chamber or of the presidency, you really have to look to young voters because they’re the ones that turn out during presidential elections, which they will be doing in November. So changing, I’ll basically break it down like this. I think people that are opposed to cannabis policy prohibition or are trying to obstruct its path through Congress are going to increasingly see negative potentialities come true because of those decisions that are going to affect their ability to get reelected.

TG Branfalt:

So let me sort of switch gears a little bit here, but would the election of Trump change NORML’s game plan in 2025? And if so, how?

Morgan Fox:

Well, I mean there’s not a ton that we can do administratively, but politically I think it does kind of change the game plan a little bit and it would require us to put a lot more emphasis on the administration just because Republicans in Congress would largely be following Trump’s lead. That being said, I think that obviously this is not going to be a priority administratively for the Trump administration. So we have been traditionally focusing on Congress and taking the administrative changes as welcome changes and putting pressure on the administration to do what it can as we have with every administration before the Biden administration. So I think that that portion of it would probably stay the same. What it really means is a potential change in the nuances of how we go about trying to push this in Congress and trying to elevate this issue to a priority one and one that from our organizational perspective, protects consumers and public safety as its foremost.

TG Branfalt:

And just lemme ask you sort of personally, again, you’ve been in Washington for a long time working on these issues in different capacities. How has the anger politics or the way that the complete partisanship and sort of gridlock, how has that sort of changed your perception or your job in Washington in that role? It must have gotten harder.

Morgan Fox:

It has. It has because primarily legislators are not super interested in legislating, and that’s a problem when you’re trying to pass standalone legislation. But across the board, I think that a lot of folks are viewing this issue more through the lens of politics than they are through policy. And when it comes down to it, this is sound public policy, but we’re in a situation where a lot of people are acting reflexively on both sides of the aisle where if someone from party A says X and someone from party B says Y, then a lot of people just line up along those lines and don’t really think about what this actually is going to do for the American people.

TG Branfalt:

I mean, it is kind of wild too, to think that someone like Matt Gats conservative has tried to do a bit on cannabis policy, if you ask me anyway.

Morgan Fox:

Yeah, I mean there are a lot of folks, it’s a very, very big tent. People that want to see cannabis policy reform. A lot of it gets down to some of the nuances of it because unlike just a few years ago, lawmakers and their staff are much more informed about the nuances of cannabis policy and about its various effects on society and things like that. So they’re asking a lot harder questions, some of which we don’t have the research for, but we’re also seeing a lot less interest in moving these things unless they can be attached to some form of a political win for them. And if they can’t than the prioritization of that legislation starts to drop. We’re also seeing former bedfellows across the aisle. It’s probably a bad word to use for that, but former partners across the aisle sometimes getting into all sorts of issues with each other or potentially not pushing legislation that their major co-sponsors on or original sponsors on because of other political issues. I can think of a couple of examples right now, but there are some that even intraparty where if certain members that are considered problematic for basically either the establishment or that are burning bridges left and right are also on the bill, then there’s very much less likelihood that you’re going to get a whole bunch of sponsors from their party on that bill.

TG Branfalt:

And you mentioned that it’s that legalization or cannabis policy, I should say reforms are a big tent. What role, if any, do you think that sort of broad state laws, state law reforms have had on bringing people into that tent?

Morgan Fox:

They’ve definitely been useful, and I mean I think it’s really important that whether or not a federal lawmaker supports or opposes legalization, the simple fact of the matter is that once their state passes something, then it’s incumbent upon them to look out for the best interests of their state. In practice, that doesn’t always happen, but in theory that’s exactly what should happen and it does give us a little bit more of an in. So I mean as well as I do that states have always been leading the way on this, and we are getting close to, I mean, we’re already over 50% of the US population living in adult use states. Once we get to 50% of the states themselves having adult use, we might be in a slightly better position, but it’s certainly not guaranteed. I mean, a lot of people have been saying for the last 20 years that as soon as we get 25 states, then we’ll be able to flip this issue in Congress. And that’s just not the case. There are plenty of lawmakers that do not like legalization despite the fact that their state did it that are not only not necessarily going to vote for something that would help the cannabis consumers in their state or help support the laws within their state, but that also might not prioritize those issues.

TG Branfalt:

The insight on this is really great, and I really appreciate you being so forward with what you’re thinking on this. What is on or what legislation is on NORML’s agenda for next session? Regardless of the outcome of the election,

Morgan Fox:

All of it, every single piece of legislation that has been introduced in the hundred 18th, we want to see be reintroduced in the hundred 19th as soon as possible so that we can start having a substantive conversation about it in a new political paradigm. If one exists, I mean no matter what, it’s going to be a little bit different. So I want to see all those bills get reintroduced, but in particular, obviously the bigger descheduling bills as well as the incremental bills that we can maybe move a little bit more quickly while we’re talking about the larger issue of Descheduling at the federal level. Personally, I’m very invested in the housing legislation that was introduced by DC’s Delegate Holmes Norton and Senator Cory Booker. I’m very interested in the firearm and Second Amendment legislation. I’m very interested in the Veterans Access legislation and we’re seeing a lot of opportunities to be able to pass this legislation not just through the normal order as standalones, but also through appropriations, things like the Cure Act and improving suitability requirements for past cannabis users.

Obviously, we’d like to see that expanded to include current cannabis use in a rare moment of bipartisan support. We saw last September that a bill that was sponsored by Jamie Raskin and Nancy Mace the Cure Act, which as originally written, would have eliminated both past and current cannabis use from suitability for either federal employment or security clearances be cut down to just past use. But the trade off for that was that it passed through House Oversight Committee with flying colors in a hugely bipartisan vote. It was like 30 to 14 in a Republican controlled committee with a fairly staunch Republican Jim Comer as the head of that committee. So this is just an indication of what we can do through Compromise and bipartisan negotiations going forward. No matter who’s in charge, we can get a little farther down the road. Unfortunately, that Bill hasn’t moved since then, largely because the house has been tied up in all sorts of craziness. But we’re still seeing that Bill get additional. We’re still seeing Safe Banking get additional co-sponsors, and I think that if we can continue along this path of developing bipartisanship in the name of Sound public policy and avoid the politicization of cannabis, then we might be able to get a lot done in the next Congress and maybe a little bit done in this Congress.

TG Branfalt:

Morgan Foxman, I really appreciate you coming on the show as you are a wealth of knowledge and information. Morgan Fox is the political director of NORML, which has advocated for cannabis positive reforms since 1970. Where can people find out more about NORML and maybe get in touch with you?

Morgan Fox:

Well, you can go to NORML.org if you want to learn more about the issue or the organization. Feel free to send me an email at morgan@norml.org if you have any questions or just want to discuss the issues at hand. But I highly recommend people go to normal.org/act so that they can contact both their federal and state legislatures in support of sensible cannabis policy reform.

TG Branfalt:

Morgan, thank you so much for coming on the show. I appreciate you, appreciate all the work that you do in DC so people like me don’t have to go there.

Morgan Fox:

It is rough and super hot right now, but always happy to help out and anytime I can ever be of assistance, please lemme know.

TG Branfalt:

Appreciate you, man. You can find more episodes of the Ganjapreneur podcast and the podcast section at Ganjapreneur.com and wherever you get your podcasts. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along the transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Wayward Sound Studio. I’ve been your host, TG Branfalt.

 

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