The Delaware statehouse in Dover, Delaware.

Delaware Cannabis Legalization Task Force Estimates $9M-$20M in Revenues

A cannabis legalization task force in Delaware suggests that the state could raise between $9 million and more than $70 million annually by taxing and regulating adult-use cannabis sales, according to a Delaware Public Media report. Advocates at the meeting suggested the state would see even more savings derived from a reduction in law enforcement spending related to cannabis enforcement, prescription drug costs, and fewer opioid-related deaths.

However, Republican state Rep. Stephen Smyk, a former state trooper, contended that cannabis legalization would create a broader drug addiction problem in the state.

“Everyone not just gonna stop their heroin use and say ‘Let me go smoke a doobie,’” he said in the report. “That’s not going to occur. In fact, it actually promotes the use because the people who are actually fighting the addiction where they’ve hit rock bottom, any backward motion – they’re going to trip up on that.”

Rep. Helene Keeley, the Democratic sponsor of a legalization measure and co-chair of the task force, suggested that the task force would ask the legislature to extend the deadline to deliver its recommendations on legalization to Feb. 28, 2018 because the meetings have sparked “other topics” that need to be further evaluated.

Last March, Keely and state Sen. Margaret Rose Henry, who has backed legalization efforts in the Senate, suggested that they had enough votes to pass the measure. The bill was moved from the House Revenue & Finance Committee in May and was added to the chamber’s “ready” list.

End


A clump of miniature U.S. flags stuck in the lawn alongside of a parade.

American Legion Poll Finds Near-Unanimous Support for MMJ Research

A poll conducted by the American Legion, a U.S. veteran’s organization, found that 92 percent of veteran households support research into medical cannabis therapies for mental and physical conditions. Moreover, another 83 percent of the 1,300 respondents supported federal legalization of medical cannabis, and 82 percent wanted medical cannabis as a legal treatment option.

According to the survey results, 60 percent of respondents did not live in a state with a medical cannabis program, and just 22 percent indicated they were currently using medical cannabis to treat a medical condition.

Support for medical cannabis research was consistent regardless of the respondent’s age, political affiliation, gender or geography, including 79 percent of those over 60-years-old.

According to the American Legion, the results reinforce the group’s resolution in support of medical cannabis research and access more than a year ago.

“The American Legion urge the Drug Enforcement Agency to license privately-funded medical marijuana production operations in the United States to enable safe and efficient cannabis drug development research,” the resolution states. “The American Legion urges Congress to amend legislation to remove Marijuana from schedule I and reclassify it in a category that, at a minimum, will recognize cannabis as a drug with potential medical value.”

The organization is also urging the Veteran’s Administration to allow its physicians to talk to their veteran patients about medical cannabis.

End


A cannabis budtender places a sticky label onto the packaging for an eighth of cannabis flower.

Michigan Regulators Allowing Dispensaries to Stay Open with No License Impediments

Michigan regulators have decided to allow the state’s medical cannabis dispensaries to continue operating without facing an impediment to receiving an operations license under the new regime. Previously, state Department of Licensing and Regulation officials had warned that businesses continuing to operate without state or municipal approval would not be considered for license approval when the new rules take effect in the state.

In August, Michigan Medical Marihuana Licensing Board Chairman Donald Bailey suggested that all dispensaries would need to cease operations by Sept. 15 in order to be eligible for licenses under the legislatively-mandated reforms, arguing that “every dispensary” in the state “is in open violation of the Michigan Medical Marihuana Act.”

However, the Bureau of Medical Marihuana Regulation has decided not to punish current operators “after dozens of hours of public comments, discussions with more than 100 workgroup members and numerous letters and emails.”

“…It is clear that BMMR and the [MMLB] must enact measures that help protect medical marihuana patients and ensure they have continued access to their medicine,” said BMMR Director Andrew Brisbo in a statement. “Through emergency rules, the Bureau and Board will not consider a medical marihuana facility’s prior operation as an impediment to licensure as long as the applicant documents approval from their municipality in their application.”

The BMMR also announced it would accept pre-qualification license applications from current operators until Feb. 15, 2018 and LARA and the MMLB would begin issuing licenses by April 2018 or sooner.

End


Sunny skyline photograph of El Paso, Texas.

El Paso County, Texas Approves ‘First Chance’ Cannabis Offender Program

El Paso County, Texas commissioners have unanimously approved a measure that allows first-time cannabis offenders to avoid jail time or criminal charges, opting instead for eight hours community service and a $100 fine, KFOX14 reports. The new rules will apply to individuals caught with 4 ounces of cannabis or less.

Cases only dealing with possession charges are eligible for the First Chance Program and those charged with possession plus any other charge will not be eligible.

According to El Paso County District Attorney Jaime Esparza, offenders can decline the program and will be arrested – same goes for individuals who fail to complete the program within 60 days. Esparza said his office handles between 2,600 and 2,700 cases per year; most of which are for “less than a quarter ounce.”

“Of those 2,600 or 2,700 offenders, about 700 of those are first offenders. People who really have never been touched by the criminal justice system,” he said in the report. “Most of them are 25 years or younger. I think the smart thing, for both the offender and the criminal justice system, is to give them an opportunity to be held accountable without having to arrest or charge them.”

Esparza indicated the program would cost about $60,000 to $70,000 for one employee to oversee the program but will save money on law enforcement and court resources.

End


Eli Harrington: Embracing a Small-Business Cannabis Landscape

Eli Harrington is the co-founder and managing editor of Heady Vermont, a cannabis news outlet dedicated to Vermont’s medical cannabis industry and culture, and host of the Vermontijuana Podcast.

In this Ganjapreneur.com podcast interview, Eli joins our host TG Branfalt — who is currently a Vermont resident, as well — to discuss cannabis’ entrepreneurial culture in Vermont and throughout the North Eastern states. The two also discuss Eli’s organization efforts for Vermont’s recent HempFest (and the event’s many successes), talk about the endless possibilities of the industrial hemp revolution, swap stories about being cannabis journalists, and much more!

Listen to the full interview below, or scroll further down to read the full transcript.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there, I’m your host TG Branfalt and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalized cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I am joined by Eli Harrington. He is the co-founder and managing editor of Heady Vermont. I’ve worked with this guy a lot. I’m super thrilled to talk to him and share sort of the Heady Vermont and his sort of story with the listeners. How you doing today?

Eli Harrington: I am doing great and I’m equally pumped to be involved because I have been listening to the Ganjapreneur podcast and a subscriber for a couple years now, before we actually knew each other in person up here in Burlington, Vermont. So it’s cool, everything coming full circle and getting to talk about what’s happening up here in Vermont and the North East in general with the cannabis scene. It’s always excellent.

TG Branfalt: So let’s sort of start with, you know, we know each other, but people don’t necessarily know you. You really like, if you’re in the cannabis scene out here, people know who you are. They’ve seen you. You’ve been at the capital pushing for certain legislation, that sort of thing, but tell me your background man. How did you end up this sort of, I don’t want to call you a character, but character out here?

Eli Harrington: No, I think character is probably fair. For me it all started with a family connection to a guy named Mark Tucci who was one of the original advocates and activists and patients here in Vermont and coming up in high school even, I remember 2003, 2004, I was always interested in Vermont politics and seeing Tucci, whose going through MS, work with a legislature, do advocacy, educating everybody about medical marijuana. This is 14 years ago, it was very different times right? Even up here in Vermont. So that was my background and then I went to college. Brandeis, very liberal place. I did a fair amount of experimenting and it was really a few years ago, I moved back to Vermont after spending seven years in the world of non profit and international relations.

I have a background in diplomacy, which I think helps a lot in the cannabis space frankly. I think about that all the time. And yeah, a few years ago, sort of saw a need for a resource for information and that Vermont had a cannabis community, I was familiar with it, we had a cannabis culture and tradition that goes back a long time and as things started becoming more serious publicly with legislation being proposed, with trade groups forming up, I said “You know, there are a lot of people out there who are like me.” You know. I’m 29, I’m interested in this subject in a lot of different ways, who have a different attitude about cannabis, who know what’s happening around the country, who are interested and beyond that, the roots community.

All the people in Vermont who have been working hard, advocating, risking their freedom, frankly, for a long time. Being connected with them and knowing they don’t really access to the political process. Even here in Vermont which is very small, very transparent, and very accessible. If you’re not used to dealing with politics and working in the state house and doing effective advocacy and lobbying and you know, frankly, diplomacy. Everybody who knows cultivators knows that you, especially the OG’s, there’s a certain ethos and they tend to be a bit more independent, vocal and so we kind of started with this approach of just this social one, is that we want to be the resource for the people that know the most, the people that care the most and really try to be a part of building something for the future here in Vermont and in the north east because whatever your personal opinion is on cannabis, this is a historic time we’re living through right now as far as transition.

The way that technology has democratized the world, anybody can start a blog, get involved, be out there advocating, find other advocates, and sort of build something, which is where we’re approaching with Heady Vermont and Monica Donivan, our publisher, co-founder, co-organizer of the Vermont Hempfest. She’s awesome. We’re so fortunate to have such a great partnership and to share the vision and really just be building this network which has come through individual connections. Like you said Vermont’s a small town, it’s what we like to joke around with. The population, you know from being here, everybody knows each other. It’s like not Six Degrees with Kevin Bacon, it’s like two degrees. Right?

TG Branfalt: For sure.

Eli Harrington: So it is a cool place as far as being apart of this community and seeing how it’s transitioning. More people who are coming out, who are advocating, and sort of watching the way things go and trying to be a part of shaping that process and …

TG Branfalt: So, we’re three days, four days, five days, whatever it is, removed from HempFest which was really, really a rad event. There was just so many different business ideas there and stuff that I hadn’t seen just coming here and the sheer amount of people that showed up to that to, you know, to Burke Mountain, which if people aren’t familiar, you really gotta be going with a purpose like you said yesterday.

Eli Harrington: You need intention. You need that intention like Mike talked about.

TG Branfalt: And it was brilliant. Mike Lewis was incredible. Joel Bedard was, he has his presence you know and these are people, Mike’s from Kentucky and Joel’s really kind of a big, another real big character in the scene out here. But what I want to ask you is, tell me about getting that whole thing together. That whole process of HempFest and how you guys sort of came up with and then just pulling it off, just give some advice to people who might be considering getting involved and would prefer sort of a festival than maybe something at the capital right? Because both are a show of force.

Eli Harrington: Yes. Yeah and thinking about different events, right, I mean that’s kind of been my own experience. I’ve learned so much from going to different events. A lot of them here regionally in New England. Gotta give a shout out to NeCann, which is a regional show that we’re gonna bring up here to Burlington in May for the first time. We’re stoked about that. So you know, that was the first step for me, for Heady Vermont which is becoming a membership organization or an advocacy platform, but we’re also a publishing company and our online, putting out original content, investing in bringing stories to Vermonters and stories of Vermonters. That’s always been sort of an idea, is what we’re gonna do with events.

And to be honest we’ve experimented with a lot of different things on smaller scales. Everything from being part of the Vermont Cannabis Week to doing our own anniversary parties, having panel discussions. In the event space it’s tough because you kind of want to be everything to everybody and especially in a place like Vermont where it’s so nascent and this is probably the situation in a lot of other states, where you feel like things are just starting to happen. For us the experience was the more we can present at one single event, the more people we can appeal to, right, so that we wanted to get everybody in an interest … If you’re doing a smaller event, let’s say a meet up at a coffee shop or a bar, putting together a panel where you say “What’s going on with the politics?” Because people are gonna want to know how they can get involved.

“What’s going on with business?” Somebody whose in the game, maybe “What’s going on with medical?” If that’s something that’s happening in your state. So our journey was really, there’s no short cut. You have to do a lot of these things. I put on an event a few years ago that myself and the DJ were the only ones who showed up. When I was just doing this Vermontijuana blog and that was an educational experience and figuring out who your audience is and who are the people that are gonna come to those events. If we didn’t have such a great readership with Heady Vermont, who are not only people that follow on Facebook and click the links, but people that we know and people who’ve come out to events and people who know us.

Being out there and advocating is such an important way to not only make the change that we all want to see as far as different reforms and really opening things up in a lot of ways, but it’s how you network and it’s how you get known and if you’re trying to have an event and people don’t know your name, they’ve never seen your face, why are they gonna shell out the money to sponsor something? So if we didn’t have a track record of putting on some successful events on smaller scales, we probably wouldn’t have tackled this and taken it on. The opportunity with HempFest is really unique to Vermont and probably some other states as well where hemp is allowed to be cultivated.

So in Vermont we don’t have adult use. We have decriminalization. We can talk about all the politics, we’re ramping up for that, but what we do have is we have industrial hemp at the state wide level. So you have a lot of people growing CBD right now and a lot of people producing CBD products. People are looking at other industrial hemp. We have some people who are actually building custom combines to harvest hemp at a more industrial scale which is so cool to see happening.

TG Branfalt: That’s what the industry needs nationwide.

Eli Harrington: Yeah.

TG Branfalt: Every hemp industry, everyone I talk to says we need infrastructure.

Eli Harrington: Yep. Processing, processing capacity, building up those networks, cooperative so. To kind of set the scene, hemp is really big in Vermont. It has been for the last year or two. A lot of that, I think, is driven by the fact there is not adult use and that our medical system is very closed. We’re gonna announce our fifth dispensary license very shortly. Each of them is gonna have a satellite. So we’re gonna have 10 dispensary physical locations probably by the end of next year, but it’s still a very closed system. It’s tough to get a card. So I think a lot of that pent up energy of people who want to be in the adult use game, people who want to be in the medical, who want to be making those value added products, I mean in Vermont that’s so huge. I mean beer, cheese, honey, cider, all of these things. You know maple syrup. So right now I think a lot of people, especially in the CBD side, they’re really learning kind the cannabis industry in that way. And there are unique things to CBD that we really wanted to highlight with HempFest.

TG Branfalt: So one of the unique things that I’ve noticed is the fact that everyone who’s doing these sort of cottage CBD programs or what have you, they’re infusing their stuff that they’ve produced or they’re partnering with other non-cannabis businesses. People who make tea, all these different things, and so the CBD is, pardon the pun, infusing itself within the local economy.

Eli Harrington: To be sure. And here in Vermont, part of what drove the success of HempFest was good timing. A year ago there was a hemp beer out and people really didn’t pay attention. This year a CBD beer came out and it was huge, it was national news, I read about it on Ganjapreneur. So I think consumer consciousness is a huge thing, but to sort of pull back a little bit, when you’re thinking about putting together an event, thinking about who is your audience, what do they need to know or what do you want them to take away from it and sort of what elements do you need to need to have to make that happen?

One, for us was an awesome host. Burke Mountain, these guys, like you said, they’re up in the north east kingdom part of Vermont. I have some local connections there which are young, but are sincere so I really wanted to do an event in that part of the state which is rural, which does have a lot of fallow land, which does have a lot of land owners and former farmers who want to be doing something with their productive, organic Vermont-branded acreage. So that was a big part for us, was being able to do it there and having a great host. We talked the rules very frankly before and they said “We’re gonna be open for business. So is there gonna be paraphernalia there? Are people going to be consuming out there on the back patio right by all the mountain bikers and the scenic chairlift rides.”

And we talked through all that, we had a plan and we knew that we could trust the people to show up and very validating that the cannabis community, you don’t have to tell people how to act. I mean we’re all responsible citizens for the most part or at least in proportion to the rest of society right? So for us, really, thinking with intent about “What do we want people to get when they come to our event?” We want you to be able to learn, go from zero to at least some understanding of a lot of different topics. So that’s why we decided to have back to back sessions instead of concurrent because I don’t want to make someone choose between the land owners session and the CBD 101 session. I want you to stay throughout the entire day and go from “What are the rules for cultivating? How do I find seeds or cuttings or clones? What’s the processing?” And then through the rest of it.

So we kind of, we addressed all that. We talked about what CBD from a pharmaceutical and pharmacological level. We talked about a lot of the products that were out there and I think that was a huge part, was show casing not only national brands, I mean you had Mary’s and CW there represented with Siri’s natural remedies and telling people about trans-thermal patches and the everyday oils and then you also had people who were doing it themselves. I mean my guy Kyle from Creek Valley Cannabidiol, he was one of the stars of the conference. A guy whose up there in the north east kingdom growing a thousand plants, learning this by himself, all organic, no till, processing on site, and making kombucha, making his own vape pens and really sort of showing that you can do all of it yourself.

And that, the cannabis game just like the event game, there is no short cut. Spoiler alert, you just bust your ass, you stay up till 3 o’clock in the morning sending out emails, network with people, go to other events and be able to make sincere connections and then have some, have a lot of faith.

TG Branfalt: So I want to talk to you a bit more about some of the connections that you made before HempFest and getting all set up, but before we do that, we gotta take a break. This is the Ganjapreneur.com podcast with TG Branfalt.


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TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Eli Harrington, co-founder, managing editor of Heady Vermont. I have doctor next to your name for some reason I almost called you Dr. Eli Harrington.

Eli Harrington: I’ve been called a lot of different things. Not that one yet.

TG Branfalt: So, again I want to go back to this, one of the things that really stood about to me about HempFest was the Tara Lynn Bridal, the Simmering Bone who won the pitch competition, the Purple Fox Pitch Competition. How’d you come across these sort of real industrious, real small businesses? How’d you find, maybe not these particular, but some of the smaller operators for HempFest?

Eli Harrington: I think that was really part of the beauty and the magic of it. And going back to think about sort of the intent, accessibility was something that was really important. So if we make a booth too expensive, then that little person, that little guy whose just starting up is not going to be able to afford to come to your show and for us, we’d rather have 36 different booths with a lot of different people making connections themselves than have 10 booths and charge three times the price.

So the price point was definitely a factor. We also talk to people and said “Hey, we’ll work with you. If you want to donate items for a gift basket or come up with some barter.” The way that we structured it was that we didn’t want to have to press vendors to get out because you get those people out, they’re gonna bring their fans and their supporters, they’re gonna make connections. And I mean people were selling stuff, probably making some pretty good cash at their tables just by the sheer volume of like 500 people coming through and checking out all these products, but it goes back to having a network of real people. And that’s the kind of thing that, that’s what I love about the cannabis industry and the culture in general is that people can smell fakes and they know if you’re real, they know if you’re not. And that doesn’t mean that you’ve got the most calloused hands or the knottiest dreads.

It means that you’re somebody whose authentic and sincere and you walk the walk and stand up for what you believe in. So people who see you out there genuinely networking, talking to people, writing commentaries, sharing your stuff on Facebook even. Those are the way that you grow connections and then when it’s time to put on an event, you think deliberately about pricing and think about that guy that I met at that event who I want to come to my event. $20 ticket might be too much, but maybe we can offer a patient discount. We offered a locals discount for people in the north east kingdom because we really wanted to get local people who are land owners to come out and check it out and that was one of the coolest parts, is having an 80 year old dairy farmer with the thickest accent you’ve ever heard talking about being interested in hemp, sincerely.

And so if we can get those people out, that to me, the diversity in a crowd and the engagement, that was the measure of success and we did spend money on advertising. Not a ton because we’re our own publishing company so that something that killed me.

TG Branfalt: There’s a flyer. There’s a flyer right out on a telephone pole in front of my house.

Eli Harrington: Yeah, well thank you very much and again, there’s no short cuts to, there’s a reason that you …

TG Branfalt: I didn’t put that there. I don’t know how that got there.

Eli Harrington: That’s right. Well the same thing, like there’s a reason you have street teams. Anybody whose up in the north eastern part of the state who saw a poster, it’s because I drove my ass around to every single country store and gas station and put one up and talked to people and gave out stickers and hyped it up. Again, there’s no secret formula and you can buy all the advertising you want on social media and elsewhere, but if people don’t identify that brand or that logo to an actual person, they’re not gonna come out and I think that’s especially true with cannabis events where people have to kind of see that it’s cool, you can show up to this event. There is no stigma to come here and be educated.

It depends how your event is presented. If you’re trying to do, if you’re having a smoke out, like that’s cool, you’re gonna attract those hardcore people who want to come and have a smoke out. If you want to get more mainstream audience, people who are canna-curious instead of experts, then you have to think about the way you design and promote the show and for us having the University of Vermont agricultural extension. They where the first people that we called because we said if people know we’re serious about this, we’re sincere, we want to have information for land owners. We want agronomic experts, we want agriculturalist so we’re gonna get the university extension who have been growing test crops for the last four years and are doing the actual science and research. We’re gonna get them first and if we can’t get them onboard, then people aren’t gonna know that it’s legit.

Then same thing the Vermont Hemp Company and having people who are experts and have been planting and working with farmers, who are agronomist, who are doing a ton of stuff. I mean they came out with this tea this weekend that was so cool. So, again, thinking about what we’re gonna be able to bring to people and how you want to frame it and for us to go to other sponsors and other vendors and say “Hey look, the university is onboard” and I know that, disclaimer, the University of Vermont does not support things as a whole. The people don’t necessarily represent the entire university, but this extension, which is doing this really cutting edge, awesome research, they’re the ones who are gonna go to your field and talk to you as the farmer, so they’re the ones we wanted at the events to cover that.

And then same thing with having a retail partner like Siri’s. Having Phyto Science Institute who do testing, who do extraction, who do processing and Siri’s doing that as well. Having Humble Roots Horticulture which is like, these guys took a college business plan and now they’ve got an acre of hemp in the ground, which is so cool to see as some young cats that are out there getting their name out, learning a ton, and building the network. So what happened at HempFest was awesome, what’s gonna happen afterwards is what’s really exciting and that’s how we’ll know, is like when we have those 10 other businesses that start next year and buy tables because they got their connections at HempFest and we hear from people that “Hey I started growing because I met Joel at the Vermont Hemp Company.” Or “I’m somebody who has a, I’m making a Vermont granola and I started putting CBD honey in it because I met the Loose Farm people and now I have whole other product and revenue stream.”

So that’s what’s really gonna be rad, to see what comes after all of this because we’re really at that stage where we’re all just like planting seeds and we’re not even into …

TG Branfalt: It’s a lot, it’s research. Everyone’s just doing research. I want to switch gears a little bit and talk to you about, we can talk about HempFest all day, but I do want to talk to you just a little bit about the biggest story once I got here especially, was what happened with … The legislature passed it, it wasn’t a full rec tax-and-rack, but you know, I don’t if that’s even the best model, but it was a landmark. This has never happened in Vermont and this is in part due to the tireless advocacy that happened and you did a lot in that capacity. So now they’ve convened another commission. What number commission is this?

Eli Harrington: I mean, it’s not, I think it was 2014 when they paid the RAND Corporation, not a ton of money, but I think like $25,000 to write a 110 page report. So we’ve had this report that we’ve paid for for a couple years hanging out and then the old adage in politics, if you don’t want to do something, you create a commission, right, or if you want to delay something, but to back track here, I would say that, you know, I’m a millennial, so I’m impatient and I want instant gratification and I know that I’m right and we just gotta convince all these old people that they’re view point is outdated. So I’m joking, but the fact is that it takes time and I’m really proud to see how far things have come even in, I’ve been in this like the last three years, maybe, full-time.

I mean I’ve always been advocating in other ways and supportive, but really being out there, I think, for the last three years. Like there’re people who are, who’ve been in jail for longer than three years for simple possession. It’s important to keep things in context, I think, when ever you’re talking about advocacy and understanding that, especially, when you’re talking with other cannabis people and industry people that the demographics are changing. Public opinion is changing, but in some places it’s not as fast as others. And I think here in the north east, one thing that’s really slowed a lot of things down is not having those things you can see.

So like Colorado, people go out west and take special trips and maybe you have a relative out there, you do a ski trip or you send one of your legislative panels out there two years ago, which we did already to go do a study tour. And they come back, it’s whatever, but it’s a different thing if you can go actually see it on vacation and New England’s so small that once people see, I mean already, Maine and Mass which are right now, personal possession and cultivation, they’re waiting to get the regulated structures set up and I think the policy makers have really sped things up seeing what the demand is and seeing all that tax revenue that’s out there.

So I think that that’s gonna change a lot and I wish Vermont was gonna be the first state in New England to do it because there is gonna be a huge advantage to that. I mean all of this stuff, bringing a cannabis industry online and just bringing it from an illegal, underground culture to something above board, that takes a monumental sea change. Not only culturally, but talking about policies and where businesses are cited, how they’re operated. And it takes a few years to figure out. The states out west, they’re constantly reforming and I think people like, I mean me, I look to Oregon because it seems like they’ve done the best job of adopting these lessons from their neighboring states. Nevada, which has made changes pretty quickly, all these states, like we look out there and those of us that research the policy and look at it a lot say “You know, we share these articles and we write stories and say look here’s why we need to do this because in every state that goes adult use, there’s a supply shortage. So let’s start getting our underground growers selling to our dispensaries.

We talk about small business in Vermont, what I want to see happen this year and what we’re gonna push for among other things, let’s have a small cultivator license. Let’s start opening up that supply. Right now they only have five dispensaries to sell to. Those are the only people who can dispense medical marijuana in the state and hopefully that will change and open up as well. I mean more competition, the better and the more supply and the more diversity, the better products at lower prices. This is just basic economics things, shout to Brandeis University. Econ 101. But I think that we are gonna see things open up and that, like I said, this small cultivator license, that can be a way to kind of prepare for bigger things where we say alright, let’s get people licensed, testing product, best practices, ideally not over-regulated. If you want that craft scale, just like our lessons from the festival, you can’t price out all the people who’d be involved.

So you have to keep it accessible, but let’s get another 50 growers signed up and working the dispensaries. Let’s expand our caregiver laws to something like Maine has where people can have their own small businesses.

TG Branfalt: Well another point is too, that I think has been sort of, I don’t know if it’s been lost or just not a talking point that I’ve noticed here in the state is that young people aren’t buying farms. Farms are closing throughout the north east because young people don’t want to farm and this might be a tool to get some of those farms operational again. Even if you just allow personal cultivation.

Eli Harrington: Yeah. I think everybody can agree that the more people that are planting things and growing things, the better society is. The more people involved in agriculture and you do see some occasions and a lot of has happened in the north east kingdom in Vermont where you do see sort of the new generation of farmers who are learning that you can’t just do a commodity, you have to have a product at the end cycle and a lot of people really are interested in hemp and in cannabis and that is a gateway, I think, to more working landscapes and it’s something that in Vermont, you’re right, it is very acute because so many small family farms, dairy farming, there’s a crisis going on nationally with the price of milk, that affects a lot of folks here in Vermont. The cooperative system has advantages and disadvantages, but you have a lot of fallow, organic land, you have a lot of brand appeal with Vermont products, and with CBD and hemp you have a national market.

The rest of it, I mean Vermont is tourism-based economy. Vermont already has a reputation. Like you probably tell people about Vermont and they say “Oh, I thought it was already legal?”

TG Branfalt: Oh, yeah.

Eli Harrington: Number one reaction. All the time. People are shocked. So culturally we’re already branded that way and we might as well take advantage and from a rural, economic development standpoint, it’s great that you have politicians who get this and it’s a way to talk about cannabis that crosses party lines. And you can have a conversation with someone who might be more conservative and represent a rural district and say “Look, we got 80 people who took applications for the hemp registry at our event. 80 people are going to theoretically apply for licenses and put some sort of acreage into production that wasn’t before, create jobs …

TG Branfalt: You had a state senator …

Eli Harrington: Pay taxes, we had a state senator there. I mean Senator John Rodgers

TG Branfalt: … who grew hemp.

Eli Harrington: Who was doing just that. Because he’s breaking his back being a stone mason and wants to put his land back to use. His family got sort of caught up and priced out of farming, he became a mason, and he wants to go back and do hemp. So the more we can share those stories and those conversations and say okay, if you can appreciate this with a cannabis plant that .2% THC as legally defined as industrial hemp, then what about cannabis that has 10% TCH and is defined as marijuana, but is grown in the same way in the same conditions on that same fallow land, but with some, I won’t even put a number on it, exponentially more value, dollar per acre price, with the leaded stuff.

So I think that that’s, it’s a way to bridge that gap. I know that CBD and industrial hemp help open the doors to that conversation a lot of the time and Vermont is historically and culturally an agricultural state. We’re not large, but we have great soil, we have amazing farmers and agriculturalists, and, again, we have that brand. I mean how much more is exciting Vermont cheese than New York cheese. I mean and I’m not talking the strain, someday both of those, because there are some great Cheese growers in Vermont, shout out to them. So I think we’ll see it here in this next session, personal possession and home cultivation, can’t be putting in jail for possessing. You can’t be giving people $200 fines. Decriminalization has led to more enforcement not less, it’s just it’s easier to write a civil fine than put somebody in jail.

So we’re gonna be pushing for that to be sure. Ideally have that happen quickly. This commission is strategically designed to not give a report until 2018 in December after we have our next election for governor because we have two-year terms here. As a reminder, our governor is the person who is individually responsible for vetoing this bill, the historic legalization bill that passed. It was very conservative. It was like one ounce and two plants.

TG Branfalt: Better than …

Eli Harrington: And it wouldn’t have gone into effect until July next year anyways. So nothing would have changed today as we record this in September, but his commission is designed to not address, two thirds of the commission is highway safety and education prevention, one third of the commission is tax and regulate. You look at Massachusetts right now, they just appointed a five person full time panel who are being paid to do this. They have their foot on the gas pedal, but they’ve been sort of slow playing for a while, as long as they could, but you see the kind of resources that it takes to figure out these policies and no matter what policies you put into effect and what you can learn from other states, some of it is gonna just happen from trial.

Ideally not too much error, but when you see what the issues are with regulating cannabis in Vermont, you will adjust and you’ll shape it so that you’re addressing those when they happen. So that’s why we advocate get the process going. Impairment on the highways has not been a huge issue in states that have come online. Massachusetts does not have cars flying into each other on the highway every time you go through. Boston hasn’t gotten better at driving. You still gotta drive in Boston and with people from Massachusetts, but things like that, as we see more of that, ideally we can skip passed those reefer madness type discussions and talk more about serious policy points.

So at the end of the day, the commission is gonna have recommendations and the governor might see that as a reason to delay things, but the legislature are the ones who pass the bills and this veto was very unpopular, the governor is taking a lot of heat for it and rightfully so. He owns that decision and we’ll see what happens ideally early in the session where we can go back with, again, just home cultivation, personal possession, not putting people in jail or giving them fines that have an impact on their life for possessing this plant. So we start there. We’re gonna work with the legislature and really give them credit.

No other legislative body has passed this through both the house and the senate. So kudos to all of those people who did take the time to educate themselves and this year they’re miles ahead. It’s like some of the people that he’s appointing to his commission, we’ve been doing this. I’ve been there in every single one of those rooms. We’ve literally got hundreds of hours of testimony that these folks have heard. So many different draft bills, so many different committees that have heard testimony that it does build on itself. And at some point it becomes politically untenable to threaten to veto something that 70% of Vermonters support, which is the legalization, personal possession, home cultivation. So that, continuing to work on our medical program, right now if you’re a patient in Vermont you can only buy two ounces a month. Your plant counts are really low.

So there’s a lot we need to do to work on the medical program as well because a lot of the interest in adult use, I think, is helping people realize just how conservative our medical program has been and a lot of patients who are advocating for adult use are also helping us advocate more for the medical part of things. So that’s really important to keep in mind as well because that’s such a big feeder into how people understand cannabis in your state in general, is through the medical system usually.

TG Branfalt: So I, just before we go I want to ask your advice for other entrepreneurs. Before we do that, we gotta take a break. Ganjapreneur.com podcast. I’m TG Branfalt.


At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of canna-bias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services and resources that other businesses are afforded.

That they should be able to hire consultation to help them follow them the letter of the law in their business endeavors and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer. This is why we created the Ganjapreneur.com business service directory, a resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients.

If you are considering a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to Ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business. With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance so you can find the provider who is the best fit for your particular need.

Our business service directory is intended to be a useful and well-maintained resource which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to Ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.


TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Eli Harrington, co-founder, managing editor at Heady Vermont. So you wear a lot of hats man. I’ve known you for couple months now and it’s really a pleasure getting to know you guys and the Heady Vermont crew and just through meeting you one time, I’ve met almost dozens of CBD producers, growers, and so as somebody who was in New York for awhile and it’s a very secretive program and no one wants to talk to you and no one want to let alone show you their plants, medical or not and then in Detroit where gray market, really nobody wants to talk to you because the DEA can come in and basically at any point kick down their doors.

So Vermont’s community has been very welcoming and very open.

Eli Harrington: People are, their minds are always blown by how friendly Vermonters are.

TG Branfalt: Dude …

Eli Harrington: It is really true. It’s like one of the number one things you read on like Reddit when people come visit Vermont. They’re like “Vermonters are so friendly.” It’s like, yeah man, look around. This place is beautiful.

TG Branfalt: The first time that I came here, I came here for an Offspring/Bad Religion/Pennywise whose at the Waterfront and I remember, we were all parked across the street and it was one car and then the next and they were actually taking turns letting people out and I was like “I need to live here.” I don’t want to kill anyone trying to get out of this concert. So what’s, when you’re talking to the young kids like the guys from Humble Roots and you’re young yourself, what is your advice for people looking to operate in Vermont’s space?

Eli Harrington: I think that when I thought about this a few years ago and I was like, I’m gonna stop wearing a shirt and tie to work. Basically leave the world of, I was non profit executive director and I did some video production stuff, but when I got into it I thought “Worse case, Ontario.” Like I’m gonna do something for a cause that I believe in. I’ll be able to be proud of the work that I do and if we do it the right way and have faith and work hard, then hopefully we can turn it into something that’s a business. I wasn’t sure what that business was going to be. This has all been an evolution and everybody whose in the cannabis industry, you have to build it as you go along unless you’re in some established state that has a few years of over adult use market.

Getting involved. That’s also the exciting part, not only as an entrepreneur, but as an activist and just as a citizen, is that cannabis policy is being shaped right now and that you can pick up the phone and call a representative. You can go to a meeting, you can start a blog. You can write for HeadyVermont.com and send us a commentary piece if you’re someone that lives in Vermont and beyond. You can have a social gathering in a public place and invite a speaker. So you have the agency to control things right now in the cannabis industry that you don’t in a lot of other places. So you should be able to take advantage of that and really, like I said, be willing to educate people. Appreciate that even within the industry, there are people who come at their understanding from a different way.

It might be from someones experience growing for 20 years. It might be because you’re somebody whose a policy wonk and it might because you’re somebody whose a tech nerd whose smoking at night or a college student, whatever it is. So I think being sincere with respect to the community and I think about all the people who have put me on and talked to me. I had a chance to go to Jamaica a few years ago. Not only meet Rastas, but meet some of the High Times folks and some of their competitors. People like Maya from Whoopi and Maya.

I mean just the amount of information that’s out there and being able to go to events because cannabis people, it seems, are more likely to share, and we’re not talking trade secrets here, but share techniques, share connections, share contacts, and those are the networks that matter. Those grass root ones, not just the people who are gonna like your stuff on Facebook, but the people who are gonna show up in person and who you know if you call them and ask “Hey, can you make a call to your representative because this vote’s coming up and they’re on a committee.” Who are actually gonna do it.

So I think just being sincere, if you’re sincere coming at this with good intentions, it doesn’t matter if you’re not the most knowledgeable person, if you don’t have 20 years of growing experience. You come at it with respect and humility, people will put you on. They’ll share information. They’ll give you opportunities to come to events and meet up with people and I think kind of just keep that going culturally and that’s why I think you see a lot of things about this industry that are more conscious then a lot of other industries. Is that everybody whose involved and most people who are successful have to be acting with intention and sincerity.

So I mean I think that’s all of it. There’s nothing stopping you except for how you spend your time and if you want to do it like I worked last summer at an airport cooking breakfast from 4 am to noon so I could have the afternoons to blog and the evenings to go to events and still went totally broke and screwed up a lot of … And made a lot of sacrifices to learn that lesson the hard way and still out there scrapping. So figure out what you’re willing to risk and what assets you have. If you don’t have funding, you don’t have those hard skills like growing or processing or botany, then you need to be the most informed person in the room and you can send your time reading HeadyVermont.com, Ganjapreneur, there’s so much great information that’s out there for free so educate yourselves and get involved.

I mean that’s really it. There’s no secret to hard work and up here in New England, we’ve got a lot of hard working Yankees who are out there busting their butts. Vermont is beautiful, but we’ve got another maybe month and then it’s like stick season and crappy skiing season until probably mid January at least so, yeah that’s it man. There’s no secret.

TG Branfalt: So where can people hear your podcast, find out more about who you are, here’s your chance to plug some stuff man.

Eli Harrington: Yeah, well. I mean, we’ve been, so like all of this. I’ve been experimenting a lot and learning from experience. I started a podcast called Vermontijuana because I just wanted to learn about the podcasting game. I listen to a lot of podcast. This one being my favorite, which I listen to on a weekly basis, although I actually know what TG looks like so it’s a different experience for me, getting to listen to it myself. The Vermontijuana podcast is something I’ve been developing, we’re still getting better. I’m about 20 episodes in, but I encourage people to check that out on iTunes. We do talk about more than just Vermont. I’m working right now on developing some video content and talking to some people in New England and also folks out west because I want to do video, I’ve got background in that. It’s such a good, efficient way to present a lot of information at once and we’re a digital media outlet with Heady Vermont.

So I’m really excited with that, but I mean, Heady Vermont. We have just turned into a membership based organization, which again, part of our own evolution as entrepreneurs, figuring out what models make sense for us. So doing membership where we have members only events that’ll be coming up, that are private, where we’ll be able to transition and have that membership who support us and help sustain us, who also get benefits from our business partners and our advertisers. We’re kind of constantly evolving with Heady Vermont and then personally, I’m out there advocating a lot. I mean if you’re paying attention in Vermont cannabis and if you want to get involved, I encourage people to reach out. If you’re somebody nationally and wants to know what’s up in Vermont, I’m always happy to talk about it.

The more that we share information, good information, accurate information, the better for everybody. So I’m not a believer in, I say don’t hide it, divide it when it comes to all of this. So, yeah. I encourage people to reach out. Eli@HeadyVermont.com. And a huge shout out to Monica. I’m the one talking here today, but if it’s not, if she and I don’t get involved working together, this thing is nothing and she makes it all look great with Kind Consulting. She does the graphics, the visuals, the branding, the photography. She’s awesome. So hit up Monica, hit up Kind Consulting if you want to see why our stuff looks so good. Tune in to HeadyVermont.com and stayed tuned because we’re just getting started and New England’s a small place and we got a lot of friends out there so we’re going regional. We’re gonna be doing more and hitting more regional events. Bringing Nican up here to Burlington in May and in the mean time I’ll be at Nican in Portland and Maine. Nican in Rhode Island and Providence and then in Boston in March.

So catch me at Nican.

TG Branfalt: Dude it’s, we talk all the time, but like normally our conversations are more me rambling about nonsense and you sort of being nice about it, so thanks for showing up and having this conversation and letting me get to know you a little bit while also letting people really get an idea of who you are and you work your ass off man. You and Monica both. So …

Eli Harrington: Well thank you for sharing the platform too man. I mean, you too. When we learned that you were coming to Burlington, we got a chance to link up, like I’ve been reading your stuff for a long time. And a big shout out to Ganjapreneur and their sponsors because it’s such an awesome resource especially for people on the east coast who want to get that inside information. Love what you guys are doing man, I love the podcast. An honor to be involved, so thank you very much.

TG Branfalt: Thanks man. Well we’ll probably have you back on here pretty soon. You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com and then the Apple iTunes store. On the Ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. I’ve been your host TG Branfalt.

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An aerial, nighttime photograph of Boston, Massachusetts.

New Jersey Court Ruling Forces State to Reconsider Cannabis Schedule Classification

A decision by the New Jersey Superior Court of Appeals will force the state administration to reconsider cannabis’ Schedule I designation under state statutes.

The case was brought by a convicted cannabis trafficker who sought to have the Director of the Division of Consumer Affairs reschedule cannabis from Schedule I to Schedule IV, arguing that because the legislature has determined cannabis has medicinal value via the New Jersey Compassionate Use Medical Marijuana Act, it should be rescheduled accordingly. The court cites two studies that suggest “marijuana has ‘potential therapeutic value’” for pain relief, appetite stimulation, control of nausea and vomiting, reduction in muscle spasms, controlling anxiety, treatment of cancer symptoms and chemotherapy, AIDS, multiple sclerosis, epilepsy, glaucoma “and other serious illnesses.”

“To be clear, our opinion does not mandate reclassification, we simply hold that the Director erred in determining he lacked authority to reclassify,” the decision states. “We note that if the Director decides to remove marijuana from Schedule I, that would not decriminalize it, as possession or sale of substances under other schedules are illegal.”

The decision notes that when the state scheduled cannabis in 1970, no state had enacted any medical cannabis laws and given the new evidence, there is now a reason to revisit that decision.

According to data from the state Department of Health, there are 15,490 New Jersey resident registered in the state’s medical cannabis program.

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FDA Sends Warning Letter to 4 CBD Companies Over Anti-Cancer Claims

The Food and Drug Administration has sent a warning letter to four CBD companies demanding that they stop making claims that their products “prevent, diagnose or cure cancer” without evidence to back their claims. Stanley Brothers Social Enterprises, the makers of Charlotte’s Web, are among the four companies to receive the letters, along with Greenroads Health, Natural Alchemist, and That’s Natural! Marketing and Consulting.

Specifically, the agency takes issue with the companies’ claims that CBD shrinks tumors and “combats cancer cells,” CBD makes cancer cells “commit suicide” without harming healthy cells, and that CBD products prohibit cancer cell proliferation.

“Substances that contain components of marijuana will be treated like any other products that make unproven claims to shrink cancer tumors. We don’t let companies market products that deliberately prey on sick people with baseless claims that their substance can shrink or cure cancer and we’re not going to look the other way on enforcing these principles when it comes to marijuana-containing products,” said FDA Commissioner Dr. Scott Gottlieb in a press release. “There are a growing number of effective therapies for many cancers. When people are allowed to illegally market agents that deliver no established benefit they may steer patients away from products that have proven, anti-tumor effects that could extend lives.”

CW Hemp, the Stanley Brothers’ company, indicated in an NBC News report that they had not made such claims and blamed customer testimonials for going too far, promising to work with the FDA to “better monitor” how they share third-party customer testimonials on social media and the CW Hemp website.

“Our customers love to share their very personal stories about how our products helped improve their lives or those of their loved ones,” the company said in a statement to NBC News.

Tisha Casida, the CEO of That’s Natural!, said that while the company would comply with the FDA request to remove the language, she maintains that consuming CBD is an “individual’s natural and constitutional right.”

“Anything that comes naturally from a plant should never be able to be taken away from the people,” she said in an email with CBS News. “People have a right to grow and consume plant-based medicines without the approval of any government agency.”

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An outdooor cannabis farm in Oregon pictured during the early summer months.

Report: California Cannabis Taxes Could Hit 45%

According to a Fitch Ratings report, cannabis taxes in California could reach as high as 45 percent in parts of the state once the adult-use market comes online, CNN Money reports. The analysis found that consumers will pay sales tax ranging from 22.25 percent to 24.25 percent, including the state’s 15 percent excise tax, and local sales taxes from 7.25 percent to 9.25 percent.

By comparison, Washington’s tax rate is about 50 percent, Colorado and Nevada’s rates are 36 percent, and Oregon’s adult-use rate is about 20 percent.

In California, cannabis businesses will pay gross receipt taxes from 1-20 percent, or $1 to $50 per square foot of canopy. Farmers will pay $9.25 per ounce for flower and $2.75 per ounce for leaf – which, combined, according to the Fitch report, could keep some illicit producers in business.

“California’s black markets for cannabis were well established long before its voters legalized cannabis in November 2016 and are expected to dominate post-legalization production,” the Fitch report says, adding that other legal states have already lowered their “initially uncompetitive” tax rates. According to the CNN report, Oregon launched its program with a $35-per-ounce weight-based sales tax but later modified it to a 20 percent sales tax. Washington’s roll-out included a 25 percent tax rate on producers and another 25 percent on processors on top of a 25 percent sales tax; it was changed to a 37 percent flat sales tax along with state and local taxes.

In Colorado, regulators actually raised the rate – scrapping its 2.9 percent sales tax and replacing it with a 10-15 percent excise tax rate.

According to the Fitch report, Massachusetts’ cannabis tax rate is expected to be around 24 percent when it comes online next year. Massachusetts has not yet established its rate.

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Canadian Government Allots $36.4M on Cannabis Public Education Campaign

The Canadian government plans to spend CA$36.4 million over the next five years on a cannabis public education and awareness campaign focused on youth and other at-risk populations, and drug-impaired driving. In March, Health Canada launched a digital campaign targeting parents, urging them to discuss cannabis with their children; the next phase will be geared toward youths aged 13 to 17 and young adults 18 to 24.

The new funds – $22.5 million over the first two years and $13.9 million over the subsequent three – brings Canada’s total investment for education, awareness and surveillance to $46 million, along with a previous $9.6 million investment over five years. Later campaigns will be aimed at “other priority populations,” including Indigenous people, pregnant and breastfeeding women, and people with a history of mental illness.

Bill Blair, Parliamentary secretary to the Minister of Health, said the investments are steps toward informing citizens about “the real effects of cannabis.”

“Our Government wants Canadians to have clear, factual information so that they understand how using cannabis could affect them,” he said in a statement.

In 2018, Health Canada will also begin dedicating $3 million annually through its Substance Use and Addiction Program for cannabis public education and awareness initiatives. The Canadian Institutes of Health Research have also issued a $1 million Catalyst Grant to explore the social impacts of legalization.

The government is expected to legalize cannabis by July 1, 2018.

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Lawsuit Filed Against Arkansas MMJ Commission Over Initial Application Rejections

The Arkansas Medical Marijuana Commission is being sued by a group of industry applicants who claim that the regulators were incorrect in rejecting their applications during its initial assessment last month, the Arkansas Democrat-Gazette reports. The names of the plaintiffs were left out of the complaints to protect the anonymity of the process.

The lawsuits seek a temporary restraining order in an effort to force the commission to include the plaintiff’s applications in the final scoring review, and an injunction to keep those applications in the final pool.

Scott Hardin, spokesperson for the AMMC, said that the commission had already met with those applicants to explain what disqualified them and that the thousands of dollars the firms paid in application fees would be returned. He said if the restraining order were granted, the commission would be forced to “shut down” its work.

According to the report, the commission disqualified the applicants for a variety of reasons, but primarily for incomplete applications, which could include minor infractions like failure to provide a second form of identification, which was the reason for at least one applicant’s denial by the commission. Department of Finance and Administration records show that Arkansas received a total of 322 cultivation and dispensary applications and 16 were considered inadequate.

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Virginia Crime Commission Studies Decriminalization, Senate Majority Leader Plans Legislation

Virginia Senate Majority Leader Tommy Norment, a Republican, is planning to introduce a measure to decriminalize cannabis possession in the state following the release of a State Crime Commission study that suggests more than 10,000 arrests could be prevented under such reforms.

According to the commission report, the agency received 5,665 written comments on the issue, and 3,850 (68 percent) of those were “directly related” to decriminalization, of which 3,743 supported such reforms compared to just 107 against. The remaining were either duplicates, related to medical cannabis, broad legalization, or other topics.

The Washington Post reports that over the last decade Virginia authorities have arrested more than 133,000 people suspected of cannabis possession, and about 10,000 per year are convicted on first-time cannabis possession offenses. On one day alone in July 2017, there were 127 individuals jailed on cannabis charges which cost taxpayers $10,000 per day.

The commission compared three decriminalization models – Illinois, which imposes a $100 to $200 fine; Maryland’s escalating model, which levies a $100 fine for a first offense, $250 for a second, and $500 for subsequent offenses; and Nebraska, which imposes a $300 fine for a first offense but criminalizes all subsequent offenses.

Under current Virginia law, first cannabis offenses are punishable by up to $500 and 30 days in jail.

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Nighttime photo of Cleveland, Ohio and the lights reflecting off the river.

Cleveland, Ohio Zoning Ordinance Bans MMJ Operations in ‘95%’ of City

The Cleveland, Ohio City Council has approved new zoning requirements ahead of the state implementing the medical cannabis regime that limits the location of dispensaries, and grow, research and production sites, according to a Cleveland.com report. The measure, approved 15-1, will prevent industry operations in about 95 percent of the city.

The regulations prohibit medical cannabis operations within 500 feet of a church, school, public park, public playground, or public library; allowing businesses to only operate on property zoned as a general retail district or one of three industrial property designations. Any property zoned for retail businesses, or as residential will not be available to industry operators.

Despite the near-unanimous vote to approve the restrictions, at least one councilor indicated concern that the rules would limit access to medical cannabis for many residents if the industry was pushed entirely into the suburbs.

“Medical marijuana is happening,” said Ward 3 Councilor Kerry McCormack, in the report. “If the closest access to this for medicinal use … is in Independence, for example, I know a lot of my residents won’t be able to get there.”

The approved zoning rules are actually less imposing than they could have been – the original legislation, introduced by Councilwoman Dona Brady, would have included a 1,000-foot buffer around all residential property in the city. However, City Planning Director Freddy Collier said that would have effectively banned the industry from the city entirely.

Regulators will begin accepting dispensary applications on Nov. 3; private testing laboratory applications on Nov. 27; and processer applications on Dec. 4. The 24 cultivator licenses are expected to be announced sometime next month.

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Montel Williams Sues CBD Scammers Over False Endorsement Claims

Montel Williams and Montel Williams Enterprises Inc. are suing three Arizona-based CBD-marketing entities and one Scottsdale resident, Timothy K. Isaac, over their claims that the former talk show host endorsed their CBD products. The lawsuit claims that the defendants repurposed contents of a Forbes article on websites and social media, misappropriating Williams’ name and likeness, to dupe consumers.

Jonathan Franks, spokesperson for Williams, said that the scam is “anything but victimless” and the companies “prey on vulnerable consumers, many of whom have chronic illnesses or other disabilities.”

“As explained in the Complaint, we heard from elderly customers and veterans on fixed incomes who incurred unexpected overdraft fees as a result of these scams,” Franks said in a press release.

The websites claimed that consumers were signing up for free trials of the product; however, customers were then locked into an automatic credit card billing scheme with no clear way to cancel. According to complaint documents, some of the CBD products duplicitously marketed using Williams’ name include Pure Isolate CBD, Pure Natural CBD, Revive CBD Oil, Hemptif CBD, TrueMed Hemp oil, Sky CBD, and Assured CBD Oil.

“Simply put, as the Complaint sets forth, the network of shadowy corporate entities we believe are involved in these scams, one of which was named ‘Secrets of ISIS’ for some time, sought to deceptively use Mr. Williams’ credibility in the medical cannabis space against vulnerable consumers without regard for the consequences,” Franks said. “This wasn’t a mistake. As alleged in the Complaint, this was the deliberate theft of Mr. Williams’ name and reputation to weaponize it against sick people, and this lawsuit isn’t about lining Mr. Williams’ pockets, it’s about holding the perpetrators of these scams accountable and to stop them from continuing to deceive consumers.”

According to a Forbes report, one of the companies, Advanceable Technology, has already earned an “F” from the Better Business Bureau and is featured on Ripoff Report.

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The underside of fan leaves on a large, indoor cannabis plant.

Canadian Community College Offers Cannabis Cultivation Course; Gov’t Paying Tuition for First Round of Students

New Brunswick, Canada’s Dieppe Community College will begin offering its 12-week medical cannabis cultivation course next month, and the first class will have their tuition covered by the provincial government, according to a CBC News report. The course, which begins Nov. 27, costs CA$2,800 per student, equaling CA$70,000 (US$54,484) for the class of 25 students.

According to Michael Doucet, executive director of continuing education for the college, the program is the first of its kind in Canada. School officials worked with licensed producer Organigram to develop the curriculum.

“It’s a science-based program,” Doucet said in the report. “Horticulture-based — so vegetation, plant care, control, environment, the watering, the elements that are required for successful growth.”

Greg Engel, CEO of Organigram, said the company plans on more than doubling its staff – from 110 to about 250 – as the nation rolls out its adult-use program and said the community college course is “a great way to tee up potential employees.”

Officials have not determined whether they would continue covering the tuition for future students. Roger Melanson, post-secondary education minister, said while it is the government’s responsibility that the industry has a qualified labor force for the medical cannabis industry, they need to make sure the program is done right before determining whether to keep funding in place.

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California Hot Sauce Maker Sues MMJ Company Over Trademarks

Tapatio Foods LLC., a California-based hot sauce and salsa manufacturer, has filed a lawsuit against California medical cannabis company Payoso Grow claiming that the company has violated Tapatio trademarks. The lawsuit claims that the cannabis company’s Trapatio cannabis-infused chile sauce infringes on their “Charro” mark – a man in a sombrero, yellow shirt, and red tie.

At least one Trapatio mark also features a man in a sombrero, yellow shirt, and red tie; however, that mark features the man in a black ski mask with dollar signs adorning the rim of his sombrero. On another Trapatio mark, the red tie is obstructed by a bandolier (a bullet belt crossing over the chest) and the hat features cannabis leaves.

“The use of the Charro in connection with the word TRAPATIO by Defendants is likely to cause confusion as to the source, origin, sponsorship, and/or affiliation of Defendants’ goods, on the one hand, and Tapatio’s goods on the other hand,” the lawsuit contends.

The plaintiffs claim the Payoso products carrying the Charro infringe on and dilute their trademark and that Tapatio has been “damaged” by the defendants’ “unfair competition.”

Earlier this month, the makers of the adhesive Gorilla Glue settled with cannabis company GG Strains LLC in their own trademark infringement case over the Gorilla Glue moniker which GG Strains had used to name several cannabis varieties. That case did not involve any monetary penalties or transactions but GG Strains must cease using the word “Gorilla” within one year and stop using any gorilla imagery by Sept. 19, 2018.

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A spooky jack-o-lantern haunts this digital collage of a commercially grown cannabis plant.

Washington’s Impending Cannabis ‘Armageddon:’ A Seed-to-Sale Halloween Scare

The Washington state legal cannabis market has had its share of hiccups since its creation. Now, at the close of 2017, a new problem around the state’s seed-to-sale tracking software has materialized just in time (literally) for Halloween.

Earlier this year, the Washington State Liquor Control Board (LCB) announced they would not be renewing the contract of their seed-to-sale tracking software vendor, BioTrack THC. When Franwell, the state’s first choice to replace BioTrack, backed out of the contract, the LCB chose MJ Freeway instead to manage Washington’s seed-to-sale data. MJ Freeway, who also administers tracking databases in Nevada and Pennsylvania, and the LCB agreed on October 1 as the contracted date to have the new system up and running.

However, MJ Freeway and the LCB recently announced that they would not meet the deadline. Instead of the 31st, they now say the new traceability software — known as Leaf Data Systems — won’t be online until January 1, 2018.

To bridge the gap, the LCB has provided a two-pronged contingency plan they say will allow businesses to continue tracking their products. First, vendors who rely on the state’s seed-to-sale tracking system will now enter tracking information on Excel spreadsheets, which will be entered into the new system once Leaf Data Systems is live — about two months later. Second, businesses that use 3rd-party tracking software are advised to consult software vendors for offline data entry concerns, while businesses who use a commercial version of a seed-to-sale compliance software can continue to using their software as usual to track compliance.

Under the LCB’s proposed spreadsheet plan, businesses would report the same data as before using a 16-digit numbering system for new products. Transfers and destruction events must be submitted daily, using an LCB online form. Tax reports are still due monthly. The WSLCB assures businesses they can operate as normal during the contingency plan, but many aren’t so sure the transition will go smoothly, including BioTrack THC’s CEO Patrick Vo.

In an open letter to Washington state I-502 businesses, Mr. Vo assured the industry that BioTrack is doing everything they can to make the transition as painless as possible, while simultaneously shedding a little light on the LCB’s actions. In the letter, Vo says the LCB only discussed an extension of their contract on October 9th, after it was clear the new system wouldn’t be on time. Although the LCB offered to double their contracted price, BioTrack’s CEO wrote they are unable to accept the extension due to security concerns and aren’t 100% sure if they can extend the contract once it elapses at midnight on Halloween.

The concerns center around a possible data breach related to the new database, and, despite assurances the breach has been fixed from both the LCB and the Washington State Office of Cyber Security, Mr. Vo says without actual proof the problem is fixed, he won’t put his business and livelihood in jeopardy by extending the contract. In the letter, he suggests the industry work together to fix the problem and suggested hopefully that BioTrack may have a solution by November 1 to avoid what he characterized as “industry Armageddon.”

Editors note: A previous version of this article incorrectly stated that the decision to delay the new seed-to-sale system was made independently by MJ Freeway, while it was a joint decision between the company and LCB, and did not mention the fact that cannabis companies using a commercial seed-to-sale software suite could continue to use these solutions during the limbo period. These updates were made on 10/31 at 9:55 am PST.

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Bottled Corona beer inside of an ice-filled cooler.

Alcohol Distributor Constellation Brands Buys Stake in Canopy Growth

Constellation Brands, the U.S. distributor of Corona beer and Svedka vodka, has agreed to take a 9.9 percent stake in Canopy Growth Corp., a Canadian medical cannabis company, for about US$191 million (C$245 million) the company announced in a press release. The announcement comes less than one year after Constellation CEO Rob Sands told Ad Age that the company was considering adding cannabis to their portfolio.

“Why wouldn’t big business, so to speak, be acutely interested in a category of that magnitude?” Sands said in the Nov. 2016 interview. “If there’s a lot of money involved, it’s not going to be left to small mom-and-pops.”

Canopy Growth is publicly traded on the Toronto Stock Exchange in Canada; while Constellation Brands is traded on the New York Stock Exchange in the U.S and has a market capitalization of about $41 billion.

“We’re obviously trying to get first-mover advantage,” Sands said in a Wall Street Journal report.

According to the statement released ahead of the today’s market opening, Constellation said the deal is “consistent” with its long-term strategy “to identify, meet and stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core total beverage alcohol business.”

“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” said Bruce Linton, chairman and CEO of Canopy Growth Corporation, in a statement. “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”

The transaction is expected to close during the third quarter of 2018.

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The Ohio state flag in a cannabis-themed digital collage.

Ohio Gubernatorial Hopeful’s Platform Includes Cannabis Law Reforms

Ohio Supreme Court Justice William O’Neill has entered the state gubernatorial race and is including a cannabis tax-and-regulate plan in his platform, the Associated Press reports. O’Neill indicated his plan would drive more than $200 million in taxes a year for the state.

Additionally, O’Neill’s cannabis law reforms would include releasing all non-violent prisoners convicted of cannabis crimes, which he says would save the state another $100 million annually. The funds saved and raised through the reforms would be used to build a state-run mental health system to help “treat addiction like the disease it is,” he said in the report.

O’Neill, 70, will be forced to retire from the state Supreme Court when his current term ends in Jan. 2019 due to age limits; instead, he will vacate the bench by the Feb. 7 candidate filing deadline.

O’Neill joins a Democratic field that includes former U.S. Rep. Betty Sutton, former state Rep. Connie Pillich, state Sen. Joe Schiavoni, and Dayton Mayor Nan Whalen. The Republican hopefuls include Attorney General Mike DeWine, U.S. Rep Jim Renacci, Secretary of State Jon Husted, and Lt. Gov. Mary Taylor. Former Ohio Attorney General Richard Cordray and television host Jerry Springer are also reportedly considering running for the post.

Ohio‘s current Gov. John Kasich, a Republican, is ineligible to run due to term limits.

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A red-orange sky following rampant wildfires in California.

National Cannabis Industry Association Hosting Wildfire Relief Fundraiser in California

Following the wildfires that devastated California, the National Cannabis Industry Association and its state affiliate, the California Cannabis Industry Association, are hosting an industry fundraiser in Santa Rosa for fire relief efforts.

“Many in our own business community have been hit hard by this tragedy and we are proud to be able to come together and support the victims of the devastating fires at this critical time,” said Aaron Smith, NCIA executive director, in a press release. “The North Bay is cannabis country and it’s our duty to give back to our friends and neighbors who have lost everything.”

Due to federal laws, state-legal canna-businesses have difficulty accessing insurance, which would help offset losses, and have limited or no access to federal FEMA relief. Proceeds from the event will support the Redwood Credit Union’s North Bay Fire Relief Fund.

The California Growers Association will also be participating in the fundraiser, raising funds for its Wildfire Relief Fund. Other co-hosts of the event are the Berkeley Patients Group, Flow Kana, Harborside Health Center, the Sonoma County Growers Alliance, SPARC, and the CCIA-Sonoma County Chapter.

The event will be held Nov. 6 at the Hyatt Vineyard Creek, Dry Creek Ballroom & Knight Valley Gardens.

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A woman lounges on her back on a soft bed.

Study: Cannabis Consumers Have More Sex

A new study by the Stanford School of Medicine purports that individuals who consume cannabis have an average of about 20 percent more heterosexual sex than those who don’t, according to a Reuters report outlining the study. Women who consumed cannabis daily had sex an average of 7.1 times during the previous four-week period, compared to 6 times for women who didn’t consume cannabis in the last year. For men, the rate was 6.9 percent for consumers, compared to 5.6 percent for those who abstain.

The rates translate to about 20 or more instances of sex per year for cannabis consumers.

“I think if you asked a man or a woman, 20 more times to have sex over a year, that would seem like a lot,” said Dr. Michael Eisenberg, assistant professor of urology at Stanford and the study’s senior author in the report. He added that the data should not be misinterpreted as proving a causal link.

“It doesn’t say if you smoke more marijuana, you’ll have more sex,” he said.

The study, published in the Journal of Sexual Medicine, analyzed 2002 to 2015 National Survey of Family Growth data of 50,000 Americans aged 25 to 45. The research was funded by the Centers for Disease Control and Prevention.

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A young hemp plant growing in a dry, dirty field.

UC Davis Partners with Colorado Biotech Firm to Decode Hemp DNA

The University of California, Davis has partnered with Front Range Biosciences, a Boulder, Colorado-based agricultural biotech company, on a project to create a genomic reference for cannabis – specifically industrial hemp. The project will be led by Dr. Dario Cantu, a UC Davis Department of Viticulture and Enology assistant professor and systems biologist.

“A high-quality and complete reference for hemp will allow the precise identification of genes associated with environmental adaptation, including disease resistance and drought tolerance, thereby accelerating the selection of new varieties that will require less pesticides, water and fertilizers,” Cantu said in an email to Ganjapreneur. “These developments will reduce the overall impact of hemp production on the environment and potential hazards to consumers.”

Dan Flynn, UC Davis dean’s representative on strategic initiatives, College of Agricultural and Environmental Sciences, said the project will ensure that the university is “proactive” in meeting some of the “public safety” and environmental challenges as California prepares to begin licensing cannabis producers in January. In order to maintain compliance with federal law, the researchers will be using extracted DNA rather than plant material.

Dr. Jonathan Vaught, CEO of Front Range Biosciences, which is funding the project, said the company looked to UC Davis to decode the genome because of their reputation as one of the best higher education institutions in the world for agriculture research (US News & World Report ranked the program second in the world last year, behind The Netherlands’ Wageningen University and Research Center.)

“Cantu’s group has been very successful … he is doing things around genome mapping that I don’t think anyone else in the world is doing,” Vaught said in a phone interview. “He’s using techniques and technologies and pulling things together in a way that I think is different from what a lot of other groups are doing – not to disregard what others are doing because it really will take a community to understand this plant’s genome.”

A sunset and grassy field pictured from the UC Davis school campus. Photo Credit: UC Davis Arboretum and Public Garden

As a biotech startup using next-generation sequencing technology to genetically map cannabis, Vaught says it’s important for the company to begin building these research relationships as the industry matures and more businesses come online that can benefit from the “actionable insight” gleaned from the project. While some researchers have “small pieces around the genome” – a fraction here, a fraction there – there is no comprehensive genomic reference “with any level of confidence,” he said.

Vaught added that there are two reasons why the community is struggling with fitting the pieces together: it’s very heterogeneous (“one big melting pot”) and very expensive for teams with limited resources. He explained that it took about $30 million and 25 to 30 different laboratories to fully decode the corn genome and “pull that information in a meaningful way.” The advantage that contemporary researchers have over those working on corn a decade is ago is advancements in sequencing technology, making the process more cost-effective.

According to Cantu, this complete reference will help “reduce the overall impact of hemp production” by allowing for “precise identification” of specific traits.

“I am interested in how genomes are shaped by evolution and breeding. This project provides me a chance to study a crop whose genetic and genomic history is largely unknown but is quite challenging,” Cantu said. “In the past few years, I tackled similarly difficult genomes by implementing cutting-edge technology and developing new approaches. This project provides me with a new challenge to test current genomics methods.”

This includes, Vaught added, why some plants produce better cannabinoids than others. “This is really just the tip of the iceberg in terms of better understanding this plant,” he said.

“The goal of a good breeding program is to provide high quality, robust, stable genetics and cultivars that thrive under certain conditions,” he explained, adding the UC Davis project lays the foundation for this comprehensive program. “In Kentucky, they might be trying to grow 10,000 acres for grain … whereas in other states they might want flowers for CBD extraction – that’s the deliverable on a good breeding program.”

For Vaught, a nucleic acid scientist, the project holds “a ton of value” for both the industry and the scientific community as legalization expands, but is a “small part” of Front Range’s efforts compared to their development of a clean stock nursery program and expansion into California.

“It’s one thing to do some research in an academic lab and answer some questions, but to actually get that technology into the hands of the farmers and get it to market is a whole other challenge,” he said. “We’re very well positioned to do some of that.”

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A field of CBD-rich cannabis plants at a farm outside of Portland, Oregon.

Kentucky Seeks Feedback, Accepting Applications for Hemp Pilot Program

The Kentucky Department of Agriculture is accepting applications for its 2018 industrial hemp research pilot program and seeking public comments on program’s preliminary draft rules. Agriculture Commissioner Ryan Quarles indicated that Kentucky farmers planted 3,200 acres of hemp this season – the most ever under the regime.

In 2016, the state’s farms grew 2,350 acres after 922 acres in 2015 and just 33 in 2014.

“My vision is to expand and strengthen our research pilot program to put industrial hemp on a responsible path toward commercialization,” Quarles said in a press release. “Our increased production and processing is welcome news for the industry.”

In February, the Legislature passed SB.218 which requires the Agriculture Department to develop rules and regulations for hemp cultivation and processing; the department is seeking comments to fulfill those requirements. Comments can be sent by mail to the agency or via email by Oct. 31.

Hemp cultivation applications must be postmarked or received by the department by Nov. 15; hemp processor and handler applications are preferred by that date but have a final deadline of June 1, 2018.

Currently, there are 194 growing participants and 48 hemp processors conducting research under the state’s pilot program.

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Digital collage image featuring lines of html code and a commercial grow room in Washington state.

MJ Freeway Seed-to-Sale Software Suffers Outage Twice Last Week

MJ Freeway, the seed-to-sale firm used in several legal states, suffered an outage last Saturday and Monday, forcing some medical cannabis dispensaries to either suspend operations or record their sales by hand, according to a Philadelphia Inquirer report. The company confirmed to the newspaper that they had “observed performance issues” with their Tracker software.

“All client sites were taken offline for a period of time on Saturday evening and Monday afternoon to resolve the issues as quickly as possible,” said Vice-President Jeanette Ward in an interview with Business Insider. “On both days, service was restored within a few hours, and client sites are currently live.”

MJ Freeway was awarded a $10.4 million contract in April to provide services to Pennsylvania when the state program begins in 2018. Previously, the company had served Nevada with its software; however, according to a Forbes report, the state canceled its contract in September after only two of the five years when the company’s source code was hacked and posted to Reddit in June.

It’s suspected that the code also made it to The Pirate Bay, a torrent site. Ward indicated there were no “known downloads” of the “outdated portion” of code from the site and it had been removed. According to the Inquirer, the Washington State Liquor and Cannabis Board said that MJ Freeway would not take over its seed-to-sale contract because they had failed to meet a deadline.

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Bottles of Hennessy liquor lined up on the wall inside of a liquor store.

New Brunswick, Canada Retail Cannabis Operations to be Run by NB Liquor

The New Brunswick, Canada government has announced that NB Liquor will operate the nation’s adult-use cannabis industry in the province through a subsidiary, according to a report from the Sackville Tribune-Post. Through the subsidiary, operations and retail stores will be operated by the corporation.

Health Minister Benoît Bourque said the move prioritizes “public health and safety concerns” and helps ensure cannabis products are not accessible to children and criminals.

The system would see up to 20 retail shops in 16 New Brunswick communities, with online sales to ensure accessibility. More locations would come online depending on demand and market capacity.

Brian Harriman, NB Liquor CEO, admitted there is still “much work to do to define the details” on how they will execute the provincial government mandate, but they would “work diligently to ensure” the retail network promotes “social responsibility and responsible consumption.”

“This is an area where we will draw upon our experience and proven track record. This model will operate with more regulation and control than our retail network of liquor stores, but it will still be a pleasant shopping experience for the people of New Brunswick,” he said in the report. “We feel confident that this model will support the federally stated objectives of legalization.”

The government is expected to introduce legislative amendments related to cannabis legalization as the retail regime is expected to come online in July 2018.

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