New York MMJ Program Not Reaching Financial Expectations

New York’s licensed medical cannabis operators are still not profitable and tax revenues are far below the $4 million earmarked in Gov. Andrew Cuomo’s 2016-2017 executive budget, according to a USA Today analysis of Department of Taxation and Finance figures. The state collected $585,000 in medical cannabis excise taxes during the fiscal year on sales of $8.4 million from the state’s five licensed operators.

However, from March to August sales nearly surpassed the previous fiscal year’s numbers, reaching $8.2 million, equating to $574,000 in taxes derived from the 7 percent excise tax. The combined sales tax figures, though, are $1,159,000 – still well below the state’s estimates.

The sales spike is likely due to officials expanding the program to include chronic pain patients in May, which led to a 77 percent growth in the patient count. The expansion, however, did not alter the program to allow smokeable, flower products.

According to the USA Today analysis, the average New York medical cannabis consumer buys about $200 worth of products monthly, which, in August, breaks down to about 10,000 active customers – or about a third of the state’s 31,116 registered patients.

In August, New York opened the state’s industry up to five more licensees, bringing the total number of operators to 10. When the state made their intentions to allow more operators public, the proposal drew criticism from the current licensees.

At that time, Jeremy Unruh, general counsel of PharmaCannis, said that while the program “is and ought to be about patients,” the company was “terrified” about the expanded licensing plans.

Ari Hoffning, CEO of Vireo Health of New York, warned that adding producers would be “financial devastation” for both new and existing operators. He told USA Today that “no organization has made even a penny in profits” since the program’s launch.

“No business could incur operating losses in perpetuity,” he said in the report. “That’s not a business, that’s a non-profit organization. That’s not how this market was structured.”

According to the report, counties who host medical cannabis businesses are also not realizing the revenue they anticipated. Broome County estimated they would see $850,000 in revenues from the industry; instead, they saw just $1,711 in 2016 and officials indicate they are not including revenues in their upcoming budget.

Westchester County, which has two dispensaries, received significantly more – in 2016 they received $12,000 and $18,000 so far this year, county spokesman Gerald McKinstry said. Ulster County, which hosts one dispensary, received $3,800 in 2016 but has seen that figure nearly triple through the first half of this year to $12,000, finance commissioner Burt Gulnack told USA Today. In Monroe County, which has a $1.2 billion budget, Spokesman Jesse Sleezer estimated cannabis industry revenues derived from its manufacturing and dispensary facilities have reached between $70,000 and $80,000 since the program’s launch.

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A cloudy May evening on Coronado Island over looking San Diego, California.

San Diego, California On Track for Jan. 1 Adult-Use Cannabis Sales

San Diego, California is on track to begin adult-use cannabis sales by Jan. 1 after the City Council approved cultivation, manufacturing, and testing rules for the voter-approved industry, the Los Angeles Times reports. The council voted 6-3 in favor of the measure, which now includes provisions requiring producers to have “odor-absorbing ventilation and exhaust systems.”

In 2014 the council approved medical cannabis dispensary licensing rules that saw 17 businesses granted a city license – 11 are currently operational – and under the city’s adult-use industry rules those businesses would be allowed to obtain licenses and sell to adults 21-and-older when the statewide law takes effect at the start of the new year.

Councilman Mark Kersey, a Republican who voted in favor of the expanded regime along with the council’s five Democrats, said that while current operators have operated in a semi-legal fashion, none have become targets for criminal activity.

“My focus now is on implementing the will of the voters in the absolute safest way possible, while minimizing impacts to our communities,” he said in the report. “The ordinance before us is a logical and responsible addition so that we can regulate these facilities.”

The approval by the San Diego City Council follows a move last month by the Los Angeles City Council keeping the Jan. 1 timeline intact. Officials in the City of Angels have suggested that they could come online before the start date, but are considering shutting down all of the city’s dispensaries while they craft new licenses; however, City Council President Herb Wasson has indicated he would consider a provisional licensing system to avoid shutting down the industry completely while that process plays out.

Although in San Francisco, officials are not so sure their local rules will come together before the Jan. 1 deadline. Local regulators have indicated that they will not issue any adult-use cannabis licenses until laws regulating the industry are passed and they have an equity program in place.

In San Diego, 61.6 percent of voters approved the adult-use ballot initiative.

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Trudeau Supports 10% Tax on Legal Cannabis Sales

Canadian Prime Minister Justin Trudeau has proposed levying a C$1 tax (80 cents USD) on adult use cannabis sold for up to C$10 a gram, and a 10 percent tax on cannabis sold for more than that, according to a report from Bloomberg. Half of the tax revenues would go to provincial governments and half to the feds.

Trudeau indicated that the proposed rate would be low enough compete with the illicit market and the legalization measure is not about revenues but rather to protect children from street dealers.

“Nobody’s mindset on this approach is about bringing in tax revenue,” Trudeau said in the report.

However, Nova Scotia Premier Stephen McNeil would rather the provinces get the “lion’s share” of the cannabis tax revenues because provincial leaders are shouldering the regulatory burden.

According to Cam Battley, the executive vice president of Aurora Cannabis Inc., illegal cannabis runs about C$8 to C$10 throughout the nation. Battley called the prime minister’s plan “reasonable,” adding that it would not be a “barrier” for legal producers to compete with street sales.

“It’s in all of our minds that that’s a critical objective to carve away the black market,” Battley told Bloomberg.

The federal adult-use cannabis sales program is expected to commence in July.

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Michigan Localities Taking Steps to Reign in & License MMJ Industry

Michigan’s legislative changes to the state’s medical cannabis program are starting to shape the state’s industry as law enforcement officials in Grand Traverse County have served cease and desist notices to eight county dispensaries, the Traverse City Record-Eagle reports. The crackdown comes at the behest of county Prosecutor Bob Cooney, who pointed to provisions of the Michigan Medical Marihuana Act which, according to two court cases, “does not permit dispensaries or collectives.”

“Consequently, you are hereby notified to comply with the law, and cease and desist immediately the dispensing of marihuana, and/or allowing patients to transfer marihuana to each other on your premises,” the legal notice to the dispensaries states, warning owners that they would be subject to civil, and possibly criminal, charges if they do not halt operations.

Meanwhile, officials in Lansing have begun the application process for dispensaries allowed under the new rules. According to a Lansing State Journal report, beginning on Oct. 9, City Clerk Chris Swope will start accepting applications for testing laboratories, processors, transporters, and cultivators. Officials have not announced when they would begin accepting dispensary applications.

“My goal is for this process is to be as fair and efficient as possible in the selection of provisioning centers that protects the public health, safety, and welfare of the residents of the city with the criteria set forth in the ordinance,” Swope said in a statement to the Journal. “In addition, I know that many Lansing residents depend on these products for their well-being and we need to move quickly to reduce disruption in access.”

The state licensing process, which is required along with local licenses, begins on Dec. 15.

Correction: This story has been updated to reflect the Lansing licenses will be accepted Oct. 9. They will be available for prospective operators today.

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Micro photograph of a trimmed cannabis nug lying on its side.

Maryland’s First MMJ Crop Sent to Testing Lab; Still No Firm Rollout Date

Maryland’s first medical cannabis crop, grown by ForwardGro, has been sent to a testing laboratory; however, officials still do not yet have a timetable when it will be available for patients, the Baltimore Sun reports. The crop was sent to the lab to help calibrate its machines before it can be properly tested and made for sale.

William Askinazi, owner of recently-approved dispensary Potomac Holistics, said he anticipates having product for sale in two to four weeks.

“We’re ready to go,” he said in the report, adding that he has received at least 800 inquiries from patients over the last eight weeks. “We’re waiting for the growers.”

Patrick Jameson, the Maryland Medical Cannabis Commission executive director, said that “no one should have any expectations” about when products would be made available, and warned that initial supplies “will be limited.”

On Tuesday, officials did approve operations for eight more companies, including two dispensaries, two testing labs, four processors, and one cultivator. More than 100 companies, from cultivators to testing labs, have been given preliminary licenses but have not yet been approved to come online.

According to Jameson, 12,491 patients have been registered in Maryland‘s medical cannabis program, along with 550 medical professionals.

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An aerial image of damaged homes and communities in the destructive path Hurricane Maria.

Dispensary Construction Resumes in Puerto Rico Following Hurricane Maria

Green Spirit Industries Inc. has announced that construction efforts on three of the firm’s planned Puerto Rico dispensary sites have resumed following the devastating landfall of Hurricane Maria, which has left 95% of the U.S. island territory without power.

According to a press release issued by Green Spirit, the company’s planned dispensaries in Dorado, Carolina, and San Juan are expected to open on schedule sometime during the fourth quarter of 2017.

Medical cannabis became available in Puerto Rico in January; in July, Gov. Ricardo Rosselló signed a bill expanding the island’s cannabis program to cover treatment for cancer and fourteen other conditions.

“We cannot praise Puerto Rican government officials highly enough for all they are doing to get the island back up and running at full capacity,” said Les Ball, Green Spirit’s CEO. “From Governor Ricardo A. Rosselló to mayors of municipalities throughout the island, we are seeing everyone pull together in a concerted effort to get food, water and medical supplies to those who need them, and to get the island’s power grid back online and working.”

According to the release, the Puerto Rico Department of Health has issued an emergency order following the hurricane’s destruction that allows registered cannabis patients to temporarily obtain medical cannabis products from any dispensary, not just the dispensary where they have registered.

“The Puerto Rican people are resilient and are working to rebuild this beautiful place from the ground up, and we are here building alongside them, remaining united,” Ball said. “Not only are we proceeding with construction on our three previously announced proposed Puerto Rico locations, Green Spirit is now actively seeking out additional dispensary locations, and we hope to announce applications for those in due time.”

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Bexar County, Texas Announces ‘Cite and Release’ Program for Cannabis Possession, Other Crimes

Following plans in Harris County and Dallas, Texas to decriminalize cannabis possession up to 4 ounces, officials in Bexar County have announced their own plans for a “cite and release” program. The program would include Class A and Class B cannabis offenses — possession of up to 4 ounces; criminal mischief; Class B theft; Class B theft of service; and driving with an invalid license.

The new rules would see offenders receive a violation citation instead of being arrested and charged with a misdemeanor; however, those charged will have to complete a diversion program before the charge is dismissed.

District Attorney Nico LaHood said the program will help “balance community safety, fiscal responsibility for taxpayers and opportunities for the citizen accused.”

“When utilized, this program will allow officers to stay on our streets and continue to protect our community, help reduce the burden on our criminal justice system and at the same time, allow the citizen accused an opportunity to learn from a poor choice without having the stigma of an arrest hanging over their head,” he said in a press release.

Bexar County is the fourth most populous county in Texas, the 17th most populous in the nation, and home to San Antonio, the seventh largest city in the U.S.

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Indoor cannabis farm's canopy of registered, commercial-grade plants.

Canadian Abattis Bioceuticals Strikes South Korea Distribution, CBD Product Development Agreement

Vancouver, Canada-based Abattis Bioceuticals Corp. is partnering with Global Damon Pharma to distribute and sell Abattis’ hemp-based product lines exclusively in South Korea. Abattis received approval to export hemp-derived products from Health Canada last year.

Rob Abenante, president and CEO of Abattis, indicated that South Korea imported about “20 to 30 tons” of hemp seed weekly from Canada last year.

“With GD Pharma’s established distribution channels in the region, we believe the potential for our products in South Korea is very bright,” he said in a press release. “… We see major potential with this market.”

The companies plan to develop new formulations with a focus on CBD-infused products. The products will be developed through Abattis subsidiary Northern Vine Canada Inc., and will be sold in Europe and South Korea by GD Pharma and throughout North America by Vergence Naturals Ltd, another Abattis subsidiary.

Don Ki Kim, GD Pharma CEO, explained the firm will “source the marketing, sales, and distribution channels” that will be beneficial for both firms.

“We are excited to demonstrate our expertise in sales and marketing, as well as timely and compliant delivery of revenues overseas to our partners,” Kim said in a statement. “We are currently searching for the most suitable partner in the pharmaceutical sector in order to seek more medical benefits from CBD, so that we can work with Abattis in their lab to formulate products together.”

The agreement allows GD Pharma to begin sales of Abattis products immediately.

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A business planner, iPhone, and laptop on top of table surface.

KIND Financial Adds Former Overstock.com President, Deutsche Bank COO to Advisory Board

Cannabis compliance and technology firm KIND Financial has added Stormy Simon, former president of Overstock.com, and Mark Gelnaw, former chief operating officer for Deutsche Bank, to the company’s advisory board. Simon brings with her a background in e-commerce, while Gelnaw has more than 35 years of experience in the financial services sector.

Simon and Gelnaw join a board that includes former talk show host and cannabis advocate Montel Williams; Wayne Kimmel, managing partner of SeventySix Capital; Matt Cook, owner of Cook Consulting; and Lindy Snider, founder and CEO of Lindi Skin.

“KIND Financial’s commitment to creating regulatory financial solutions for a complicated yet burgeoning industry is an exciting mission,” Simon said in a statement. “I’m thrilled to join the advisory board and assist them in making it happen.”

David Dinenberg, founder and CEO of KIND, said collectively the duo “perfectly complements the skills and background” of the company’s other board members “and will be instrumental in providing the right guidance.”

“We are thrilled to welcome Stormy and Mark to our advisory board – their participation is another clear sign that we’re continuing to build credibility in this dynamic industry,” he said in a press release. “… Our common goal is to continue to expand KIND’s product portfolio and offer the most advanced financial and compliance solutions in the cannabis industry.”

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Outdoor cannabis plants located at a CBD farm in Oregon.

Florida MMJ Regulators Will Not Meet Today’s Deadline for New License Approvals

Medical cannabis regulators in Florida will not meet today’s legislatively-mandated deadline to approve five new licenses for the state’s expanded regime, the News Service of Florida reports. Christian Bax, the Office of Medical Marijuana Use executive director, blamed the delay on Hurricane Irma and lawsuits against the expansion plans.

In a letter to legislative leaders explaining that the office would not meet the deadline, Bax indicated that the department is still in litigation over two of the 13 legal challenges to the law and that the hurricane relief efforts “necessitated the mobilization of all available department assets for nearly two weeks.”

One of the lawsuits, filed this month by Panama City farmer Columbus Smith, contends the constitutionality of part of the law that specifies one medical cannabis license go to an African American farmer who was part of settled discrimination lawsuits by the federal government against black farmers. In his lawsuit, Smith argues that the measure is an unconstitutional “special law.”

“The OMMU is aware of its important role in continuing to move this process forward to provide patient access as quickly and safely as possible. However, recent history has emphasized the importance of getting the [medical marijuana treatment center] licensure process right the first time,” he wrote, alluding to Smith’s suit.

Lawmakers expect an updated timeline during legislative committee meetings next month.

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Photograph of Atlanta city poking above the treeline, pictured from a boat on a nearby lake.

Atlanta City Council Unanimously Approves Cannabis Law Reforms

Atlanta, Georgia’s City Council has unanimously passed legislation which reduces the penalties for possession of 1 ounce of cannabis to $75 and no jail time. Previously, the city municipal code called for penalties of six months in jail and a fine up to $1,000.

The measure, introduced by Councilor Kwanza Hall, was supported by Atlanta Mayor Kasim Reed and Dr. George Napper, the city’s first African American police chief. Reed said via Twitter he looked forward to “reviewing and signing” the legislation

In a statement posted to Medium, Napper, who served as police chief from 1978 to 1982 before being promoted to Public Safety Commissioner, said the previous regime “inordinately affected young African American males and exacerbated the attendant community ills associated therewith.”

“I applaud [Hall’s] recent effort in introducing legislation to decriminalize marijuana arrests and convictions,” he stated in the post. “As Chief of Police I saw first-hand the destruction of young people’s futures due to juvenile indiscretions.”

The cannabis law is the latest law enforcement policy reforms headed up by Hall – a potential mayoral candidate – and enacted by the council. In 2015, the Hall-introduced Pre-Arrest Diversion Pilot Program passed the body, and last year a measure was approved aimed to end so-called broken windows policing.

“Today we stand with every parent of Atlanta who is fearful of or has seen their children’s lives destroyed, or careers ruined because of a racist policy that unjustly incarcerated minorities by more than [90] percent,” Hall said in a press release. “Reforming the racist marijuana laws on the book in Atlanta has been just one in a number of reforms that I have fought for.”

The measure will take effect once signed by Reed.

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Two More Members Tabbed for Massachusetts Cannabis Control Commission

Officials in Massachusetts have appointed two more members to the state Cannabis Control Commission, adding Kay Doyle, former deputy general counsel to the Department of Public Health, and Shaleen Title, co-founder of THC Staffing Group, a cannabis industry recruiting firm.

Title is an attorney who specializes in cannabis regulations and co-authored the voter-approved referendum to legalize cannabis in the Bay State. She is also a founding board member of the Minority Cannabis Business Association, and sits on the boards of the Marijuana Majority and Family Law and Cannabis Alliance. Title said she was “honored to be entrusted with implementing the will of the Commonwealth’s voters in forming a new post-prohibition approach” to cannabis regulation.

Her appointment fulfills the requirement that one member of the commission has a background in legal, policy, or social justice issues related to a regulated cannabis industry.

“I’m especially eager to help Massachusetts set a good example for other states in creating a newly legal market that champions equity, including for communities that have been targeted by past criminalization policies,” she said in a press release.

Doyle, who acted as primary counsel to the Medical Use of Marijuana Program, said she was “humbled” by the appointment. Doyle fills the requirement that at least one commissioner has experience in cannabis industry oversight or industry management, including commodities, production, or distribution.

“I look forward to working with Chairman [Steven] Hoffman and my fellow commissioners to implement safe and sensible regulations that protect the health and wellness of Massachusetts residents,” she said in the release.

The new commissioners, who will serve three-year terms, were picked by Gov. Charlie Baker, Treasurer Deb Goldberg, and Attorney General Maura Healey.

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Cody Stevenson: Working Hard for the Right Reasons

Cody Stevenson is a serial entrepreneur with an emphasis in the digital space, and he is the current Director of Business Development for Ganjapreneur.

Before coming to Ganjapreneur, Cody served in the U.S. Marine Corps, founded several media-based startups, and worked on digital marketing campaigns with many different Fortune 500 brands; he also built and launched KushJobs — which was incorporated into the Ganjapreneur.com Job Board when Cody was hired — and he has worked closely with Spark the Conversation and Bianca Green, traveling throughout California to meet with advocates and spread awareness about the importance of cannabis reforms leading up to the 2016 elections.

We decided to host this Q&A with Cody not only so our readers would have a chance to get to know him, but also because he has a lot of valuable experience to share!


Ganjapreneur: What was your background before getting into the cannabis industry, and what drove your decision to pursue a career in cannabis?

Cody Stevenson: I wish I had an easy answer to this question, but I am all over the place and always have my hands in something new. I started my first company, HMC Media, with 2 partners in 2007 after deploying to Iraq and being medically discharged from the United States Marine Corps. This is when I realized I loved entrepreneurship and growing businesses in the digital space.

In 2010, I had a successful exit from HMC and was headhunted by a large defense company to scale operations in the Middle East. I spent over two years in Afghanistan getting operations setup and running and then returned back to the States and worked on several projects, including working with a team to set a world flight record. I have a lot of experience in advanced technologies and large-scale operations management.

I never lost my love for the digital space and entrepreneurship, though. I had been running a digital think tank on the side the whole time I was doing the defense work. I honestly couldn’t tell you how many websites I’ve built, failed at, acquired, sold, etc. If I had an idea, I dove in 200% on everything. At this time I was really starting to have a horrible taste in my mouth for the corporate world and defense work in general. Morally it just didn’t sit with me well. Oddly enough — or maybe not so much, hah — this is when I reunited with cannabis and realized the medical benefits for veterans with PTSD issues. It had been about 10 years since I had used cannabis recreationally in high school and to be completely honest I had been medicating with alcohol up to this point. NOT A GOOD THING!

Almost 3 years ago I decided to leave the corporate world and go full-time into the digital media world again. I worked on some great campaigns with companies like Verizon Wireless, Novatel, Applebees, Tinder, etc. The problem was I still wasn’t 100% happy with what I was doing. The stress I was getting from being a cannabis user and having to hide it wasn’t fun either. That’s when a light bulb went off in my head. Hey, I really believe in the benefits of cannabis and I have a lot of skills I can use to break into the industry! Not sure why it took me so long to realize this?

I knew I was going to have to prove myself and show how my experience could transition into cannabis. That is when I went full-time building and launching KushJobs.co. The rest is pretty much history! I’ve been lucky enough to work with some really awesome people since I went down this path.

I worked with Bianca Green and SparkTheConversation.org to build out their digital presence and project management for a 22-day bus tour throughout California advocating for marijuana last year, and here I am today doing Biz Dev with Ganjpreneur.com while launching Trim Media. I couldn’t be happier!

With so many people trying to get into the cannabis industry, what can job-seekers do to make their applications stand out?

Present yourself as a professional and highlight how your experience relates to the position you’re applying for. I know that sounds like common sense, but I can’t tell you how many resumes and applications I have seen from people that think cannabis is all about the “stoner” culture and just being able to get high on the job. This may be the standard operating procedure at some places, but a large majority of companies are looking for professionals with real-world experience to help scale their businesses.

A lot of people resist this, but part of the issue with weed is the stigma that has been attached to it. The reality is this industry is no different than any other industry. People from all walks of life consume cannabis. So put forth the same effort you would if you were applying for any other professional career.

From your experience, is there more of a sense of community in the cannabis industry compared to other industries?

Yes! Just by the nature of the legalities around the industry and the effects, the plant has on us as consumers, we are brought together for a common cause that a large majority of us truly believe in. The industry does have areas where money is the driving factor, and I think it is important for us to not let the business side of the industry get out of hand — then we would be no different from any other industry where the bottom line is all that matters. I’m hopeful we will regulate ourselves and not just become “Big Cannabis,” if you will. That would be a sad day and I think a lot of the benefits provided by the plant would be lost.

What do you think is the most important consideration for someone who is thinking about launching a business in the cannabis industry?

Do it out of passion and not for money. It’s really that simple. If you are thinking about launching a cannabis business because you think it will make you rich quickly, you probably won’t last long at all. If you have a really good idea though, and you really love working with cannabis — the possibilities are endless!

People come to the cannabis industry from all walks of life. In your time working in the industry, have you noticed any traits that seem to be universal among cannabis entrepreneurs?

I’ve noticed several different factions of cannabis entrepreneurs. The advocate, the patient, techies, and then your typical entrepreneur type. Patients that have directly benefited from cannabis are very common though, which I think is super cool. That’s what brought me down this path. Not too many industries have those kinds of roots.

One of my favorite parts of this industry though is the high amount of trailblazers. You have to be willing to risk a lot to get into this industry just because of its legal status in our country. I think that is what I really enjoy and makes me respect everyone that works in the industry. You’re not just risking capital or time, but possibly your personal freedom as well.

Given your experience working on campaigns for Fortune 500 brands, how do you think companies in the cannabis industry should think about the value of marketing, and where should they be focusing their advertising budgets?

Having a great product will only get you so far. The cannabis industry is extremely competitive and will only get more competitive as the industry grows. Companies need to plan for the future and start building a culture around their brand. I would argue that, with the current state of the industry, marketing is one of the most important aspects of any cannabis business right now.

As the industry matures and becomes more normalized, we will start to see already established companies move in with complete marketing departments and large budgets behind them. This is a reality that all brands need to prepare for and why they should start establishing their voice early.

I’m a big advocate for storytelling through creative digital content. The generations with the most buying power right now make decisions based on content they consume on a daily basis. A well-crafted video or written piece speaking to your brand’s message and values can go a long way. The days of just placing your product in front of consumers are behind us in my opinion. I want to know who is making my product, can I relate to them, and do they have the best interest of the industry in mind? More importantly, are they real people just like me? Most companies don’t have the budget for a complete marketing department, though, so it is essential to work with well-established media outlets in the industry to get your message to the consumer.

Last but not least! You can tell a great story and do amazing branding, but can you cap it all off with a great customer experience? Make the consumer part of your community, engage them on social media, and turn them into a brand ambassador. If you take care of your customer, they will take care of you. I highly recommend that anyone who runs a business in the cannabis industry takes the time to read Delivering Happiness by Tony Hsieh.

What advice would you give to someone looking to transition from their career in an established industry to a position at a cannabis start-up? What are the positives and negatives they should expect?

First things first. You need to have a serious conversation with your spouse if you have one and then the people you associate with every day. This was a big factor for me, specifically with my Dad. I grew up in very conservative rural Kansas and was always told marijuana will basically turn you into the devil and make you brain dead. Luckily my Dad didn’t have the response I thought he would and supported me. My wife has always supported me in everything I do. I can’t stress the importance of this as an entrepreneur enough.

Be prepared to lose friends as well. A lot of people I know have stopped talking to me or just don’t associate anymore. I expected this considering I have a deep background in the military and defense industry. To be blunt, they probably weren’t the greatest of friends to start with anyway.

Once you get that squared away, what transferable skills do you have? I find that people are really bad at realizing their own strengths and how to apply them to various industries. The cannabis industry is extremely young and it is just like any other industry. Marijuana isn’t all about growing and selling. This industry needs software developers, accountants, security professionals, photographers, etc.

Once you realize what your unique talent is that you can offer the industry, get out and participate! Overall, the industry is pretty small in the grand scheme of things and word of mouth travels fast. Go to events, connect with owners, offer your services at a discounted rate if you need to. Anything you can do that isn’t sitting around just thinking about making the leap is a step in the right direction.

The last advice I would give applies to any industry. This is 2017! Like it or not, we live in a digital world where the Internet is quickly taking over all forms of media and marketing. Get a personal website up, be proactive on social media, and don’t be afraid to build something yourself. All of the greatest knowledge I have comes from failing. If you are really interested in a specific start-up, become a power user of that platform.

If I can do this anybody can do this. I grew up on farms spraying Thistles, fishing, and riding four-wheelers in a very small town in Kansas. I have no formal training outside of the Marine Corps and am self-taught in all of the skills that have got me to where I am today.


Cody is in charge of our Fall 2017 and 2018 advertising schedules – if you would like to review a copy of our media kit, feel free to send him an email at cody@ganjapreneur.com! You can also find Cody on Instagram and Twitter.

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A California medical cannabis patient's personal grow housed inside of a growbox.

Aurora Cannabis Acquires Two Indoor Gardening Appliance Producers

Canadian medical cannabis producer Aurora Cannabis has acquired indoor gardening companies BC Northern Lights and Urban Cultivator Inc. The companies are expected to generate a combined $5 million in revenues this fiscal year, which ends Oct. 31.

The firms produce and sell high-yield, indoor appliances for microgreen, vegetable, herb, and cannabis cultivation for homes. BC Northern Lights has been operating for 17 years while Urban Cultivator has been in businesses for seven years.

Neil Belot, Aurora chief global business development officer, called the transactions “an important step in Aurora’s strategy to serve the home gardening market in Canada” for patients and eventually adult consumers who wish to grow their own cannabis.

According to Health Canada, as of Aug 21, 10,547 Canadians were registered to grow their own cannabis, or as designated growers, as part of the nation’s federal medical cannabis program.

Aurora CEO Terry Booth said the acquisitions “add an excellent range of proprietary products” to the company’s portfolio and position the licensed producer “extremely well to capitalize on the opportunity in a distinct and rapidly-growing” market segment.

“We have always advocated for people’s ability to make their own choices and are very supportive of the Supreme Court’s Allard decision, which confirmed patients’ rights to grow their own medical cannabis,” he said in a press release. “Similarly, we believe that, after implementation of consumer legalization in Canada, individuals who choose to grow their own cannabis should have access to cultivation solutions that are in controlled environments, safe, and can produce high-yielding, high quality cannabis.”

The deal, which will see Aurora acquire 100 percent of the companies, is worth $3.85 million in cash, $500,000 in Aurora common shares, and future consideration up to $4 million based on earnings before interest, tax, depreciation, and amortization.

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Analysts Suggest Massachusetts Cannabis Industry Could Reach $450M During First Year

Analysts from New Frontier Data project Massachusetts’ legal cannabis industry could be worth $450 million during the first year of retail sales, equating to as much as $90 million in tax revenues, according to an outline of the report by Wicked Local. By 2020, the report says the state’s industry could reach as much as $1.2 billion in sales and $240 million in taxes.

Beau Whitney, a senior economist for New Frontier, said those figures “are assuming a relatively smooth rollout of the regulatory infrastructure and assumes demand will build over time through greater participation in a regulated space, and that people will feel comfortable with cannabis in their communities.”

In July, lawmakers approved legislation revising some aspects of the voter-approved law included raising the combined local and state taxes on cannabis products from 12 to 20 percent, including allowing municipalities to impose a 3 percent tax on sales. The state Department of Revenue has estimated legal cannabis sales could be worth just $64 million during the program’s first year.

According to a report last month from the Associated Press, more than 100 Massachusetts localities have imposed moratoriums, zoning regulations, or outright bans on retail cannabis sales. The bans are mostly focused on adult-use sales rather than medical cannabis operations.

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Professional bicycle athletes churn down the street in a large pack at the start of a race.

Anti-Doping Agency Removes CBD from Prohibited List

The World Anti-Doping Agency has removed CBD from its prohibited substances list for 2018 and added synthetic cannabinoids, such as “Spice.” However, according to the 2018 Prohibited List summary, athletes subject to the organization’s testing might want to be sure their CBD products are tested and accurately labeled as THC remains prohibited.

“Cannabidiol is no longer prohibited. Synthetic cannabidiol is not a cannabimimetic; however, cannabidiol extracted from cannabis plants may also contain varying concentrations of THC, which remains a prohibited substance,” the document states.

Last year, the U.S. Anti-Doping Agency investigated Ultimate Fighting Championship star Nate Diaz after he appeared at a post-fight press conference openly using a vape pen. At that time, which followed a decision loss to Connor McGregor, Diaz said the pen was filled with CBD oil that helped him “with the healing process and inflammation.” The agency took no action against Diaz, instead letting him off with a warning. Diaz, 32, hasn’t fought since the event, but in an interview with MMA Fighting last May, Diaz, who fights out of Stockton, California, alluded that he has connections to legal cannabis businesses.

The Nevada Athletic Commission and World Anti-Doping Agency’s threshold for THC is 150 nanograms per milliliter of blood.

 

End


A medical cannabis patient's plants growing inside of an indoor growbox.

Son of WWE Founder and SBA Administrator Sues Cannabis Grow-Box Maker

World Wrestling Entertainment performer Shane McMahon is suing Connecticut-based EnviroGrow, a company that manufactures cannabis-growing modules, the New York Daily News reports. McMahon, is the son of WWE Chairman Vince McMahon and U.S. Small Businesses Administration Administrator Linda McMahon.

The lawsuit claims that Shane McMahon invested $500,000 for a stake in the company, but when McMahon traveled to inspect EnviroGrow’s Fort Collins, Colorado manufacturing plant he found it was “virtually nonexistent” the report indicates, citing court documents. McMahon demanded his investment be returned however his request was rebuked by EnviroGrow founder Joseph Palmieri.

“EnviroGrow is a viable company,” Palmieri said in the report. “It’s a great little business and it’s up and coming.”

Dan Williams, EnviroGrow CEO, said the company has started marketing the products and already have orders in Massachusetts, Nevada, Colorado, and California – which have each legalized cannabis for adult use.

As the administrator of the SBA, Linda McMahon, gives seed money to start-ups; however, the agency does not provide loans to cannabis companies due to its status as a Schedule I substance under the federal Controlled Substances Act.

The McMahon family matriarch, who twice ran unsuccessfully as a Republican for a U.S. Senate seat from Connecticut, has not commented on her son’s investment in the cannabis space.

End


A homegrown, backyard cannabis plant a few weeks before harvest.

Washington Activists Say Proposed Home Grow Plan is a No-Go

Despite Washington‘s status as a pioneer in cannabis reform, the actual cannabis policy on the ground in Washington has not always been ideal. For example, the legislature eliminated a thriving medical cannabis system in 2015 and the Evergreen State — unlike the seven other legal cannabis states — still does not allow adults over 21 to grow their own cannabis.

After a home grow bill failed in the 2017 legislative session, state lawmakers directed the Washington State Liquor and Cannabis Board (WSLCB) to conduct a feasibility study by December 1 of adult use cannabis home grows. After seeking input from other states, the public, and industry stakeholders, the WSLCB has put forward three proposals for public comment.

Unfortunately, many see the proposals as more misguided cannabis regulations that will further undermine the true personal freedom intentions of legalization — but here is an overview of what the WSLCB has come up with.

Option 1 (Tight control based on the Cole Memo)

  • Restricted to 4 plants
  • Home growers must have a permit
  • Plants must be entered into the state traceability software
  • Security in place to prevent youth access
  • The WSLCB and local authorities would share jurisdiction
  • Authorities can seize plants if over the limit
  • Growers would get plants from licensed I-502 producers
  • Medical cannabis processing restrictions would apply

Option 2 (Based on state regulations with attention to diversion and youth access)

  • Restricted to 4 plants
  • Home growers must have a permit
  • Local authorities have jurisdiction and can ban home grows locally
  • Growers would get plants from licensed I-502 producers
  • Medical cannabis processing restrictions would apply

The WSLCB does list the “status quo” as a third option, and this, according to several industry experts, may sadly be the best choice.

“I think the WSLCB was put in a no-win situation on this issue,” said John Novak, founder of 420 Leaks. “They are a regulatory and enforcement agency that is not capable of implementing or even recognizing the civil and human rights angle. It’s not like they just forgot about that, we have been contacting them and our legislators about this fatal flaw. It was no surprise that the only options to come out of this group end up looking like more police state monitoring of individuals, or maintaining a complete prohibition.”

Dr. Dominic Corva, founder of the Center for Study of Cannabis and Social Policy, wrote that the “WSLCB has delivered a perfectly reasonable set of options to the legislature’s mandate that they carry out a study on the feasibility of regulated home grow,” but that the agency is “institutionally incapable of prioritizing the civil liberties” and, “as a private police force, it can and does assume adult citizens are potential vectors of illegality, not stakeholders in a civil liberties experiment.”

Both Novak and Corva threw their support behind Option 3, the status quo, hoping for a different approach to the home grow issue. Dr. Corva called for Washingtonians to “focus instead on working for Legislative change, including the two existing civil liberties home grow bills still in process that will be taken up again in January.”

Novak said there is “no justification for these kinds of laws as they are only protecting their profits, regulatory and enforcement jobs at the expense of our constitutional rights.”

“We need to strip away laws that regulate what grown men and women are able to do in the privacy of their own homes, not add more,” he said.

End


A bright beacon light coming out of the Luxor hotel in Las Vegas, Nevada.

Nevada Adult Use Sales Outpace Washington, Oregon, Colorado in Respective First Months

Nevada’s first month of retail cannabis sales almost doubled the first month sales of Colorado and Oregon as the state’s dispensaries saw $27 million in sales, compared to about $14 million in the Centennial and Beaver states, the Las Vegas Review-Journal reports. Washington sold just $3.8 million its first month of adult-use sales.

The sales generated more than $3.6 million in tax revenues, according to Tax Department numbers outlined in the report. The revenues, derived from a 10 percent excise tax on sales and a 15 percent wholesale tax on both medical and adult-use cannabis transfers from cultivator to distributor, will be directed to the state’s rainy-day fund. The wholesale tax generated $974,060 of the state’s take.

Mari St. Martin, a spokesperson for Gov. Brian Sandoval, said the “revenues demonstrate that the state’s structure appears to be collecting as a rate consistent” with state projections – $63.5 million over the first two years – despite the fact that July sales were not included in the estimate.

Nevada also collected $6.5 million for cannabis industry license and application fees which will be used to pay administrative costs to the Department of Taxation and municipal governments for industry regulation. The remainder will be used for public education funding.

End


Rows of CBD-rich cannabis plants inside of a greenhouse.

Wisconsin Tribe Adopts CBD Program

The St. Croix Chippewa Indians of Wisconsin have adopted a “comprehensive control program” for hemp-derived CBD and announced plans to open businesses selling CBD products in states where it is allowed.

Elmer J. Emery, a member of the St. Croix Tribal Council said the tribe plans on producing and distributing CBD products on its tribal lands in northwestern Wisconsin which will create “jobs and industry in a county with one of the highest unemployment rates in the state.”

“As the 2003 patent for cannabinoids held by U.S. Department of Health and Human Services affirms, cannabinoids are naturally occurring antioxidants and neuroprotectants found in hemp with recognized therapeutic and medicinal value and usage,” Emery said in a press release. “Any cannabidiol produced by the Tribe will not be used for recreational purposes or to get high. Because all of our products will be produced from hemp, there is no psychoactive effect.”

In April, Gov. Scott Walker signed legislation legalizing the use of CBD oil for any medical condition so long as the patient is certified by a physician.

Jeff Cormell, an attorney for the tribe, said the program adopted by the council indicated tribal leaders have “gone to great lengths to enact strict regulatory programs” similar to those used in other cannabis-legal states to ensure the program complies with Department of Justice policies.

According to documents outlining the program, the tribe will grow six acres of hemp within a 200,000-square-foot decommissioned fish hatchery.

End


View of the Auckland Harbor from the deck of a boat returning to shore.

Canada’s Tilray Successfully Exports MMJ to New Zealand

Medical cannabis producer Tilray has exported its Canadian-grown products to New Zealand, where they will be distributed to pharmacies who serve the country’s registered patients. The firm has also exported products to South America, Europe, and Australia since 2016.

“We are proud to offer New Zealand patients access to quality-controlled, pharmaceutical-grade medical cannabis products,” said Brendan Kennedy, Tilray president, in a press release. “With Tilray products available in six countries representing four continents, we further our global mission of serving patients in need in a timeframe that matters.”

The export announcement is the second this month by a Canadian licensed producer – Aurora Cannabis announced last week it had shipped 50 kilograms of its medical cannabis to Pedanios, a German company wholly-owned by Aurora.

Previously, the company exported medical cannabis products to Auckland’s Middlemore Hospital.

In Australia, Tilray has partnered with the University of Sydney and the New South Wales government to research cannabis as a treatment for symptoms of chemotherapy-induced nausea and vomiting.

In their home nation, Tilray is supporting trials focused on post-traumatic stress disorder at the University of British Columbia; pediatric epilepsy at SickKids Hospital; and chronic obstructive pulmonary disease at McGill University Research Centre.

End


A cannabis nug lying on its side on top of a red-brown wood table.

Atlanta, Georgia City Council Considering Cannabis Possession Law Reform

Under an Atlanta, Georgia City Council proposal, penalties for possessing 1 ounce of cannabis or less would be reduced to a $75 ticket and no jail time – and the council is just one vote away from passing the measure, WSB-TV reports. Under current law, possessing less than 1 ounce can result in fines up to $1,000 and up to six months in jail if convicted.

The City Council Public Safety Committee moved the measure to the full council on Tuesday after passing it 2-1 with one abstention.

Councilman Kwanza Hall said the current regime disproportionately affects minorities and the city “has to be the leader in the conversation of justice reform.”

“Ninety percent of the people who are in our jails for possession of marijuana are young African-Americans,” Hall said in the report. “People are losing their jobs. People are losing their scholarships. Families are being torn apart for something that we should really be ashamed of.”

His colleague, Councilman Ivory Young, had reservations about the proposal.

“I think there ought to be controls on substances like this,” Young said in the report. “We need to be very careful because as quickly as we provide a license to do certain things it often becomes legal precedent.”

The full council will take up the measure on Monday.

End


Mehka King: The Power of Grassroots Cannabis Media

Mehka King is a journalist, host of the Cash, Color, and Cannabis podcast, and the filmmaker behind The Color Green: Cash, Color, and Cannabis — a documentary investigating racial disparities in the cannabis space.

In this episode of the Ganjapreneur.com podcast, Mehka joins host TG Branfalt to discuss the evolution of popular media from print to online blogging to podcasts and video content, his experience documenting the cannabis movement, how celebrities — particularly hip-hop stars who have invested in the cannabis industry — could do more to speak up on issues with industry inclusion and fallout from the Drug War, and more!

Tune in to the interview through the player below, or keep scrolling down for a full episode of this Ganjapreneur.com podcast episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m your host TG Branfalt, and you are 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’m joined by Mehka King. He’s the filmmaker for The Color Green: Cash, Color, and Cannabis, and podcast host of Cash, Color, and Cannabis. I’m super excited to have him on the show today.

We’re kind of cut from the same cloth, my man. We do a lot of the same things. How you doing, this morning?

Mehka King: I’m doing great this morning, man. You sound like you’re doing better than me. I haven’t had a chance to light anything up, yet.

TG Branfalt: It’s one of those pre-podcast luxuries I’m afforded because we don’t use video.

Let’s start with you, man. Tell me about yourself. You have a background in filmmaking. You went to school for journalism. So, first tell me about yourself, man. How’d you end up where you are right now with the podcast and working on this documentary?

Mehka King: Sure. Like you said, I went to school for journalism, Johnson C Smith University in Charlotte, North Carolina. I was writing early. You know, I started writing for the student newspaper while I was there. I was the co-editor along with my friend Aaron James. And from that point, you know, I just kind of fell in love with being able to tell a story just using words.

So, I proceeded to write for other publications while I was in Charlotte–Charlotte Post, Charlotte Magazine–I had some stories in. I started started a website called Last Word Online in 2004 that was targeted to mainly hip-hop crowds. And it was something organic I built while I was living in Charlotte, and it grew a nice little base, where before you know it, I was being reached out to by writers and editors from other cities. So I had a chance to actually branch out and eventually write for Double XL, and eventually it turned into a basketball … I became a sports journalist as well, and started writing for Slam Magazine. So, I was covering high school basketball in the state of North Carolina.

As that time went on, though, I started seeing myself … I guess, phase myself out, if that makes sense. I grew up reading magazines, for the most part, and then before you know it, websites took over. So, as I’m being a published writer, I’m also continuing to build this website that’s kind of replacing writers. So I had to eventually have a come-to-Jesus meeting with myself, and say that, you know, if you’re really gonna progress as a writer, and progress as a journalist, you’re gonna have to stick with the online market.

So, I started another website called DJs Doing Work, which actually spawned off a film project I was working on called DJs Doing Work, which was a documentary about DJs in hip-hop, which I’m a huge fan of, just the whole DJ culture in hip-hop. So, I started DJs Doing Work, and before you know it again, I was looking around just saying that I feel like maybe film is probably the best option to use when it comes to telling stories for the new generation. Less people are reading print magazines, and even less people are starting to read blogs anymore. It’s more about what you’re seeing visually.

So, I decided to pick up a camera and use the camera to start telling these stories that I wanted to tell and start interviewing these people I wanted to interview. So, before you know it, I started working on a project called Crown Royalty: the History of Charlotte Hip-Hop while I was in Charlotte. It was about the Charlotte hip-hop scene from the beginnings, which I got a chance to get to know a lot of the pioneers of the Charlotte hip-hop scene to the people who were working and making it known back when I was filming this, which was 2010.

That was the very first, I guess, documentary project I worked on. It was 30 minutes long, and I set up an event where we actually showed it at the Charlotte Actor’s Theater, Actor’s Theater in Charlotte, excuse me, in Charlotte, and we drew a great crowd. It was a great reception. And that kind of gave me the spark to know that, yeah, you’re doing it right. That you’re seeing that film and visuals are becoming a bigger part of storytelling, so you might as well phase yourself more into that.

So, from Crown Royalty begat DJs Doing Work, and the DJs Doing Work project that I still haven’t completed. It’s in draft now. And that led to where we at right now with Cash, Color, Cannabis. When we started about a year and a half ago, I had a friend of mine named Royal, who used to stop by my house a lot. He’s a chef by trade, and he was telling me then that he wanted to get into the cannabis industry; he really didn’t know how to do it. So, he had came to me to see if maybe I could help him maybe establish some relationships with media. And I told him then that I don’t think a lot of hip-hop artists, or a lot of hip-hop outlets, would even cover something like this at the moment.

As he was more telling me about it, I was like, maybe I could help you out just by letting me know some of the outlets. And he said High Times. He started mentioning a couple other places, but he also mentioned that from his travels in this industry, going from conference to conference from about late 2014 to about 2015, he had said he didn’t see too many people of color, or too many people who look like him at all, which was a huge shock to me. Because me growing up, all I’ve ever known was I guess, just people smoking weed. Like, it never was the biggest deal, it wasn’t really something that I guess people were really looking at as a negative. So, I was kind of shocked that I wasn’t seeing more people of color getting involved early, especially around 2014 when you started seeing some more states becoming open to medical and recreational cannabis.

So, through his story, I decided that we should try to take on the topic of cannabis and the lack of minorities, lack of people of color in the industry. So, he was a huge with that as far as sparking that idea, and again just me already leaning towards the film aspect of life, I thought that it would be dope to put this project together visually. And what started off as a short film, which was supposed to be about 15 minutes to 30 minutes film focused on Royal turned into a feature that involves a ton of people from across the country who all had the same opinions, and all had the same notions that I had that there should be more people of color getting involved, or at least being aware of what’s going on.

TG Branfalt: To your point that the cannabis industry is dominated by whites, by non-minorities, you’re actually the first black male that’s been on this podcast, and that to me when I realized this, this wasn’t really a shock to me, but I was like, how have I gone this long without finding anybody who’s really immersed in the industry that’s a male of color. I have interviewed black females, and Latinas, and Latinos. So, from you’re doing the podcast, doing the documentaries, what’s your initial take on why this disparity exists? Let’s just start there.

Mehka King: Well, I feel like the disparity exists primarily, and this is a topic that we actually touch on in the documentary. I call it the three P’s: politics, past issues, and pop culture. These three things play a huge role in our community as why we’re not seeing more people of color even pay attention to the cannabis industry.

When I say past issues, I think about, say my mother. My mother, for instance, grew up in the Civil Rights era. She is a staunch … she’s just absolutely against anything that relates to drugs, or anything that she feels can destroy our community. She just is that person. Always has been, always will be. Me growing up, you’re talking about somebody who grew up late ’80s early ’90s, the last thing I thought about was cannabis being a negative, to be completely honest with you. That really was because of what I was seeing at that time through pop culture and through music and through hip-hop, like Snoop Dogg was huge in my life at that moment. Dr. Dre’s The Chronic, you know what I mean, like this, to me, was just stuff that people did. Where my mother, again, at the same time looked at it as a gateway drug to heroine, cocaine, and everything else.

Now, I have a nephew who is 18 now. He’s going to college. His view of cannabis is something totally different from mine. And it’s way different from his grandmother’s. So, I look at it like, when we start saying why we’re not seeing more people of color, past issues have a whole lot to do with that. The way you grew up and the way that you saw cannabis, whether it was stigmatized early, like how my mother saw it, how it was starting to become commercialized like how I saw it, or how it’s decriminalized like he’s seeing it right now, you’re seeing them three vast different ways. And those different ways are still hindering people from saying this might be something viable for us to get into, or might be something to even pay attention to.

We still have a lot of people from my mother’s generation who are controlling politics, and control the media, and control things that you see, and there’s still people like myself who are involved who see it as, “Well, I just assumed everybody was gonna be involved. Like, why would I have to make a noise about this? I just grew up thinking that this was perfectly fine to do anyway.”

So, I think that past issues plays a huge part in it, as well as pop culture. Again, me growing up, Snoop Dogg, Dr. Dre, The Chronic, even later Wiz Khalifa and them, all I knew was weed was something that people just did. But as I started doing this film, what I did’t notice was how people, I guess, actually viewed who does cannabis and who is a consumer.

When you see a show like Weeds, or you see a show like Mary Jane, they’re showing cannabis users, and people who are using cannabis, or even selling it in ways where you either sympathize with them like Weeds, or you’re entertained by them, like Mary Jane. Where if you often see people of color involved in anything drug related, it’s either as a crime aspect of it, or you’re doing this as a survival to get out of something. At no point are you looking at this person and thinking you’re having any sympathy for ’em, you’re looking at it like why are you committing a crime.

So, if you keep seeing things like that in the media, again, it’s gonna turn off people from trying to get involved. When I speak to people, just regular people in the street, this is one of the first things that pop in their minds is, well, I’ma get arrested anyway. Even if they don’t think about how, well even medically how this can help me or anything else, the first thing they think is I’m gonna get arrested by having this in my hand. Like, I don’t care how the law’s changed, I just know for a fact from what I see on TV, from what I’ve seen in my whole life, all I know is getting arrested.

So, you know, when we start replacing the images you see consistently in the media, and we start having bigger conversations amongst generations, we’re gonna start seeing people change. And that’s gonna affect politics. You know, when we see people right now again … Right before House Bill 722 passed in Georgia, I had a chance to be down at the state capital and see kind of a rally for it, and see people speaking up for it, and why we need to have CBD oil, and why we need to start looking into medical marijuana in Georgia, and all I saw was a room full of Republicans, primarily white Republicans, with their wives and children or friends of theirs.

Like how you said, you went through your podcast and didn’t see a black person, it didn’t really dawn on you, it dawned on me immediately that I was the only black person in this whole entire room. Yeah, and it startled me that we’re having this conversation, not because of the issues that we’ve seen in the drug wars, not because of their rats race we’re seeing, or anything like that, we’re having this conversation because these people got together and said, “My kids need this.”

So, when you look through politics, look through past issues, and look through pop culture, we’re really not seeing any reasons why people of color would get involved in this industry, to be completely honest.

TG Branfalt: Well, I want to press these issues quite a bit more. They deserve a lot more discussion than we’re actually able to give them in the timeframe of the show, but before we get into that, we gotta take our first break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt, here with Mekha King, filmmaker of The Color Green: Cash, Color, and Cannabis, and podcast host of Cash, Color, and Cannabis.

So, before the break, you had sort of broken down the three points that you cover in your documentary: politics, pop culture, and past issues. I want to put my finger on politics a little bit deeper. It really shouldn’t surprise anyone that minorities are unfairly targeted by police for cannabis crimes throughout the nation. About a year ago, declassified federal files showed that Nixon’s reasons for the war on drugs was to target “blacks and hippies,” and not much has changed since then. And due to such convictions, hordes of folks are prevented from entering the legal industry. If you look at states like New York, you can’t get a business license if you have a past felony issue, even if it’s for something under the Rockefeller drug laws, which are completely draconian, and were definitely targeting minorities with those. Lawmakers in some states have attempted to create so-called equity provisions to address this issue.

What’s your take on those “reparations” provisions in cities such as Oakland, Los Angeles? This is mostly a California thing right now. What’s your take on these sort of proposals?

Mehka King: Well, when I first heard about it, it was through Oakland. And I heard that Oakland was trying to offer sort of a drug war reparation through their new marijuana equity program. And I still think it’s an awesome thing to do. It’s one of those things you’re gonna have to kind of be open towards, you know what I mean. ‘Cause you can’t really have an industry where you are able to legally purchase cannabis from, say like a store, or something like that, or even legally to grow, and you have people who are either still in jail for the same reason, or about to be released, and they had that charge on them, and now they can’t even get into this industry if they wanted to.

So, you’re gonna have to figure out something as far as some way to make that work. I’ve often said to even of friends of mine, it’s very hard for me to see people pull money out of this industry while there’s still people in jail. It’s almost like you can’t … It’s something you gonna have to make sense after a while. But also, what they’re making sense of that, you’re gonna have to make it affordable. At some point, I don’t care how much … Unless you’re giving these people free licenses, most people coming out of jail aren’t coming into money. You know what I mean? Most people who are coming out of jail are looking at a long list of stigmas that’s gonna be attached to them, not just cannabis. You know what I mean?

TG Branfalt: A lot of times, man, the cops have taken their money and assets the minute they get arrested.

Mehka King: Yep. Yeah, yeah, you’re looking at an upward battle the minute you get out of jail. So, I feel like if you are gonna open it up to, like you say, some kind of reparations for the drug war and the people who are incarcerated, you’re gonna have to figure out a way where you can make it financially accessible for them, because you’re not gonna see a lot of people come out of jail with that money to be able to get a dispensary license or even be able to run one, be honest with you. And if you did have it, you’d get more questions.

I had a friend of mine, when we first started filming … as a matter of fact, his name is Branson. I thought Branson, for the longest, was a strain of weed like cookies, you know, growing up. But he was actually Biggie Small’s, Jadakiss’, Puff Daddy’s weed guy. So I had a chance to meet him when I was in New York. And he had mentioned to me about how, you know, he said, “Mek, I actually had the money to do some of this. I had the money to get a license, I had the money to get a lot of things.” He said, “But the minute I put down $40,000, $50,000, the next question is where you got it.”

He made a mention about how with people of color, often you gotta prove to ’em where you got your money from. When you go through even, just knowing this again, knowing that you’re gonna go through these hoops and ladders, people disqualify themselves. They say to themselves why they can’t get into it more than thinking, “Well, this is just a small thing to overcome as far as raising money. Maybe if I get some friends together, we could raise it together.”

You don’t think that far. You think immediately, well, one, if I do get the money, they’re gonna ask me where I got it from. Two, if I do run this business, who’s to say that they’re not gonna come in kicking my doors. You know, people just really run through their minds a lot with the whole getting arrested and this being a thing that they’ve only known criminally. And again, until we get that whole mindset out of our heads, you’re not gonna see a lot of people of color getting involved in this industry.

TG Branfalt: You had mentioned Branson. You mentioned Biggie and Diddy, and in an interview you had said that there are some artists who are knee deep in the cannabis industry that never talk about this race issue. Can you tell me more about what you meant by that comment, and how these people that you’re referring to could act as advocates in an effort to bring light to this issue?

Mehka King: Sure, totally. You know, [inaudible 00:18:26] much praise to Snoop Dogg. I grew up listening to Snoop. But I feel like Snoop Dogg’s one of those artists. You know, we have people like Snoop, we have people like Wiz who are, like I say, knee deep in this industry, whether be investments like Snoop has with websites and into product and things like that, or Wiz where Wiz has his own strain. And Wiz has relationships with Raw Papers. But what we rarely hear from any rappers is their business dealings. They’ll speak a lot about how to consume weed. They’ll speak a lot about how to roll up. Like, I literally learned how to roll a blunt listening to Redman’s How To Roll A Blunt. Just being completely honest.

You’ll learn things like that through music, but you’d have to do deep serious research to realize that some of these people have business tie-ins to this industry. And I feel like if you did see a Snoop Dogg or a Wiz Khalifa speak up more, verus say Al Sharpton. I know Al Sharpton spoke recently in New York about the reparations and making sure that we have a more diverse cannabis industry. That’s all well and good, but you need somebody again, who somebody my generation grew up seeing speaking and knowing their in this industry speaking about that. And I feel like that’s a real flaw that we’re not seeing that from some of these artists.

Now, again, you can’t force people to be activists, you can’t force people to speak out about any and every thing, but I feel like this is something that’ll be beneficial to even their growth in this industry. It’s for them to tie themselves in this conversation about the lack of diversity in the cannabis industry. But then again, it’s up to them. you know what I mean? I would love to see a Redman, Snoop Dogg, Wiz, even Burner. I would love to see some of them get actually involved in this conversation versus just playing it from the background, or just playing it as a middleman for somebody else selling a brand.

TG Branfalt: Let me ask you, man. Would you, if you had the finances, would you enter this space?

Mehka King: Would I enter this space? No I would not, actually. Now I would just say, no I would not, because I see it being more important that we have a media presence than we have actually a presence in dispensaries. But if I did have the money, rather than me being hands on, I would invest in somebody else. To do it, I would invest in somebody else who I felt was really … they really had the business mind to keep something like that going and understood the laws in their city, and understood how things like that change. I would really would do that if I had the money. I’d rather put it in somebody else’s hands who would know how to do that.

I more see that we need a presence in media. If you don’t see people like myself, or you see people like Charlo Greene, I know who was on your show with The Weed Show. If you’re not seeing more people of color in the media even speaking about this, then it’s to the wayside everything. You’re just kind of running in the circle that you’re already been running in for decades in this country.

TG Branfalt: I want to talk to you more about the role of independent media in the cannabis space, but before we do that, we gotta take our second break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt, here with Mekha King, filmmaker of The Color Green: Cash, Color, and Cannabis, and the podcast host of Cash, Color, and Cannabis.

Before the break we were talking about the role of independent media. We both went to journalism school. We’ve both written for traditional outlets as well as independent outlets. Where do you see the independent media’s role in this space.

Mehka King: Oh man, I feel the independent media role is the one thing we should be really focusing on currently. You know, again, when we talk about pop culture, you talk about not just music, but you talk about the media and you talk about movies, everything you see. And representation matters. And we really need to see more voices, more people covering this industry from our perspective. And not saying that High Times or Merry Jane, or any of these other publications aren’t doing that, but it’s just one of those things you’re gonna need to do if it is important, as they say, to get more people of color involved in this industry. We’re gonna need more shows like, again, Charlo Greene’s The Weed Show, where she talks specifically from a perspective of cannabis, whether it be how cannabis affects you sexually to how it affects you medically to just, you know, just her having conversations about people smoking in families and things like that.

You need that, as much as you need the show like Cash, Color, Cannabis where our show isn’t so focused on the whole cannabis aspect, but we’re creating a space where people who do consume can come watch and come be entertained by just a good interview and a good show. You need those types of situations happening out here. You need people out here covering these events and actually going and putting mics in front of some of these faces, and you need to see those faces look like you.

You know, again, representation matters a whole lot, and when you see … Like even now, there’s the big push about women being involved in the industry, and that has a lot to do with representation. And again, from Weeds to Mary Jane’s to … You just see a lot of women being portrayed as people of power in this industry. So, of course you’re gonna see more women wondering, where can I fit in? You’re gonna see that more. So, I feel like if you really want to see people of color getting involved in this industry, politics is great. Passed laws is great. But until you see a good representation of what you’re trying to push, then I don’t know what to tell you.

I thought Grow House … Grow House came out a couple of months ago. I thought Grow House was a good example of if you want to get people of color involved, this is a decent image. Now, again, it’s a comedy. It wasn’t like the most serious film ever, but you’re talking about two brothers who are about to leave their regular life to go work in a dispensary. Like again, as funny as that is, and as comedic as it is, and you got Lil Duval and Deray as the stars, that’s still one of them things where if I was somebody in college watching this, I’d be like, hey, I wonder how I can get involved. You know, and it’s simply because you’re actually seeing this.

We need to see more representation, and I feel like the media and the independent media needs to play a bigger role if you want to make that happen.

TG Branfalt: On this idea of representation, when you were filming your documentary, did you face any resistance from potential subjects due to fear or reprisal of being associated with the
industry?

Mehka King: Oh yeah! Oh yeah, yeah. You know, it’s funny. When I initially started this, I’ve had conversations with people, who eventually would become vocal about the topic, who told me this wasn’t a conversation. That within the cannabis industry, cannabis sees no race, and there’s no problem with race in this industry at all. And I knew better. But yeah, I’ve faced backlash from a couple of people. There’s been people who didn’t want to speak on camera. There have been people who don’t want to ruffle feathers because they do have businesses that are not solid just yet, and they don’t want to mess that up by drawing a line. And my response to them was I’m not drawing a line, and I’m not trying to make you draw a line.

What I’m trying to do is create a conversation that needs to be had so you’re not having this conversation 10 years down the road, and people saying why didn’t you have it then. Why didn’t you have it earlier? At some point, you’re gonna have to have an uncomfortable conversation with people about what you’re feeling. And if you don’t do that, then you’re gonna forever be … no matter how long it takes, it’s gonna take you longer to get that out, and the longer it takes for you to get that out, the less people gonna have sympathy about your issues.

So, I feel like right now is the perfect time. So, yeah, I did fight some people who did have a little backlash against the production, but it’s also why I did it on my own, and I funded it on my own. I didn’t want to have to be beholden to what people felt, or other people’s interests. I wanted to make a story that I wanted to make. I wanted to take it on as if I was assigned by Double XL, or was assigned by a magazine like that to cover this industry. I want to cover it like that. And I have been able to despite the fact that we’ve faced a little bit of backlash. I don’t anymore. You know, people are much more open to having this conversation currently, but when we first started last January, no. No, we faced a lot of backlash actually.

TG Branfalt: And what were some of the most surprising things you learned while filming the documentary?

Mehka King: One of the most surprising things I learned was there … As much as we do have a lot of prominent names … I guess when I say prominent names, like people like Wanda James, or Charlo Greenes. There’s a huge, huge, huge uprising of younger people, like Millennials and that type who are really hands on in this industry and they’re gonna make some of these changes. One guy I ran into while I was in New York, Mike Edon, he has a website called HerbsTV. They make branded content where they partner up with different brands and they go to events, and they kind of just create the content for those events and those brands. While I was speaking to him, I was sitting there looking at him like, yeah, you’re the type of person we need to see more of. You know what I mean, just somebody who is in the younger crowd who has this cool take where you just want to go out and cover it. You just want to make sure that people see what’s going on from your perspective. We need more of you.

So it’s dope to see younger people so energetic and being so creative about how they want to get in the industry, and not so much touching the plant. I heard a lot of people speak about how they want to come up with apps and come up with media outlets and things like that, and not so much I want to have a dispensary, or I want to have an edible brand. So, I thought that was one thing I did learn from the documentary is that this younger generation has a lot of energy about this industry, and they have a lot of creative ideas that really will eventually bring more people of color in.

You’re talking about technology, you’re talking about media, you’re talking about things that can’t be regulated by law, unless Donald Trump really just trips out one day. Can’t be limited by law as opposed to dispensaries and dealing with the plant. You’re talking about things like that. You start conquering technology and media, then yeah, you really got power now.

TG Branfalt: So, I want to talk to you a bit about Georgia. That’s where you’re living now, but you’re not from there, right?

Mehka King: No, I’m from Boston, yeah, but I’ve been living in Atlanta for seven years now.

TG Branfalt: And then your home, where you’re from, goes and legalizes on you while you’re-

Mehka King: Exactly! But you know what? It helped the conversation between me and my mother. Because my mother, again, when she first heard I was doing the documentary, it was similar to my man from Weed-A-Kit. Like the first thing she said was don’t ever smoke on camera, and avoid getting arrested. And now that Massachusetts is going through the changes they’re going through, me and her can actually have full conversations. Like, she tells me how her and my father met at a jazz club, and then she’ll start speaking to me about jazz and weed and how they used to terrorized Ray Charles.

She said, I remember when they used to arrest Ray Charles left and right.

TG Branfalt: Yep.

Mehka King: I’m glad they did open it up. I’m mad I missed it, but I’m glad they opened it up.

TG Branfalt: I want to share a story with you quickly.

Mehka King: Sure.

TG Branfalt: A friend of mine was arrested after police discovered a huge supply of cannabis: edibles, flower, oil, you name it. A white guy. Didn’t spend a day in jail, rather he was given lengthy probation. This really sort of shocked me, because this is Georgia.

Mehka King: Yeah.

TG Branfalt: And when he was arrested, I half-jokingly said, “Well, we’re white.” But that’s not really a joke, it’s a cold truth. Is that what you see in Georgia, these disparate sentences, and what’s been your experience living down there.

Mehka King: Oh yeah, you often see it. You know, depending on who you’re dealing with, people have honest, like how you have with your friend, you’ll have an honest assumption, they’ll have an honest answer about what you said. They’ll know that this is real. And one thing about being in Georgia is as a person of color you will run into police based off what they think you have. I could be smoking a cigarette, I could be smoking a Black and Mild outside. A cop driving by could believe that’s weed. Ad that’s enough for them to start a whole search on you. Run your background, if you don’t have your ID on you, that’s immediately you’re getting arrested down in Atlanta, if you don’t have an ID on you. You can run through a list of reasons why you gonna get arrested by simply having the thought that you have weed.

So yeah, to hear somebody actually picked up with actual product on them, and the most they got was probation, I’m not overly shocked, but it’s one of those things that again, in order for us to fully see change in, we’re gonna have to take control of a lot of things. And again, pop culture, past issues, and politics, we gotta really start taking control of that because there should be no reason why there’s a huge disparage, like you said, where one guy could have all this and get probation, where I can, and this has happened to me before, I can be sitting on a corner smoking a cigarette, and that cigarette could be assumed to be a joint, and next thing you know you’re in handcuffs until they figure out who you are. That’s a terrifying feeling if you ever go through that to know that your freedom is based off what they decide, or what they figure out or what they find out.

I’ve done jail time based off me not having my bus pass one time and having a warrant. And all that started because I was smoking a Black and Mild on the street and the cop thought it was a blunt. And immediately approached me, immediately put me in handcuffs, immediately asked for my ID, immediately ran my ID, and said, well, you do have a warrant for this. And next thing you know, you’re sitting in jail. You’re sitting in jail for a little while until somebody can bail you out for the $75 that they needed to bail you out for.

TG Branfalt: So you were in Georgia when they passed that CBD legislation. In your opinion, as a journalist, as documentarian, as a resident of the state, you know somebody who watches this issue closely, what’s it gonna take to get a comprehensive medical cannabis program set up in that state?

Mehka King: Set up in that state? You know, I’m gonna agree with a guest I had on my podcast on Tyler Chronicles. I’m gonna agree with him. I believe Georgia would have to almost go bankrupt in order for something that serious. He made a point. He said if you realize a lot of the states, including even California were close to running out of money before they really came up with mission of saying let’s go here.

TG Branfalt: Alaska.

Mehka King: Yeah. I feel like Georgia’s close to the same thing. People often say that they look at Georgia, and they think of Atlanta. Well, Atlanta and Georgia are two different places. And if you come down here, they’ll tell you the same thing. What Atlanta’s okay with doesn’t mean the rest of Georgia’s okay with it. So, it’s gonna be a slow sell to sell what I want to do here to people in Athens. And people in Barstow, and people way out in Georgia. It’s gonna be a hard sell. ‘Cause again, now you’re dealing again with past issues, politics, and pop culture. You’re dealing with people who are knee deep in Civil Rights era stuff, and still into war on drugs things, and they don’t want to see anything. Don’t care what they’re seeing in the news right now. So, you’re talking about … I personally would feel like maybe it’s gonna take a while.

I would have really thought Florida would have jumpstarted Georgia. I really doubt that Georgia’s gonna sit back and watch Florida not only pass medical, but watch them make a lot of money off of it before they start saying to themselves, “Maybe we should get involved in this.” But I really feel like Georgia’s gonna have take a really … it’s gonna have to go through some real bad times before they say this might be an answer for them.

TG Branfalt: These are all such deeply ingrained issues, not just in cannabis politics and the cannabis industry, but these are very deep, deep social issues. How did you separate, if you were able to separate, these industry and political issues from the social issues when you were filming your documentary

Mehka King: It is hard, ’cause a lot of times they are all one and the same, or they can be all one and the same. What I try to do as always, I try to take on the story from the perspective of me just being a journalist. That you really want to get the best story possible. So, you’re gonna have to ask as many sides, you’re gonna have to be as unbiased as possible, and just allow people to give their sides. So, I don’t try to step in front of anybody who has an opinion. I don’t want to say … and I don’t want to make it seem like I’m trying to push a cause. I just really want to get a good story out that’ll make people still have this conversation years from now, and still be relevant for people years from now.

So, yeah it was hard to do, but it wasn’t one of those things that I tried to separate. You’re not gonna be able to at all times. Like, politics and pop culture, like I say, could be one and the same. Like, I’ll see Jay-Z campaigning for Hillary Clinton, just like I’ll see a star campaigning for Donald Trump. You can’t separate these two things in America.

TG Branfalt: What’s going on next with the film? Are you screening it right now? Do you have planned release?

Mehka King: We are planning to debut it next year, actually, in the Atlanta Film Festival. We’re heading to edit at the end of this month. We’ve got one more shoot to do in L.A., and then we are absolutely done. But we’re shooting to debut it at the Atlanta Film Festival next year. And after that, hopefully I can get into another couple of festivals. We have some festivals we have in mind targeted. I’d love to get into South by Southwest. I’d love to do the Martha’s Vineyard Film Festival, and the ABFF. But we’re definitely gonna do the Atlanta Film Festival.

After that, we’re probably gonna do some private screenings in all the cities that we did film in, from Atlanta to L.A., New York, DC, and definitely my hometown Boston. Gotta take it back to the bean. And then after that, who knows. I would love to see it on a streaming platform. I really think this is one of those conversations that you’re gonna keep having. It’s one of those conversations that no matter when you play this documentary, it’s still gonna be some problem in here is still gonna be relevant to still having a conversation.

So, I feel like it’s tons of growth as far as how we can screen it, or what we want to do with it. But I do know right now, next February’s gonna be the first time we’ll actually screen it on a large scale, so in a film festival, it’s gonna be there. I know this. We’re definitely gonna do that.

TG Branfalt: In the meantime, where can people find out more about you, your projects, the film, the podcast, how do they link up with you, Mehka?

Mehka King: Sure, sure. They can find us at Instagram actually, @thecolorgreenmovie, that’ll probably be the best place. We have a lot of behind the scenes clips, pictures, and all that from all of our shoots. You can also find some more at Vimeo. You can log on to our Vimeo page. That’s V-I-M-E-O.com/thecolorgreenmovie. You can see our two trailers. You also can see some more behind the scenes footage from some of our shoots there. And also, you can check us out at cashcolorcannabis.com. There we have links to the podcast, we have links to the trailers, and links to myself as far as just learning a little bit more about me, and learn a little bit more about what we’re trying to do with the Cash, Color, Cannabis brand as far as the podcast, the events, and the blog.

TG Branfalt: Well, man, these are really, really important things that you’re tackling. And I’m real excited to see the documentary in its finished form. I might have to take the trip to Boston to check it out, though. I’m an East Coast guy.

Mehka King: I would love for that, man. But you know what? I’ll tell you what. When we get the final edit, I’ll make sure I’ll get you a chance to see the screener. I’ll get you an early chance to see that.

TG Branfalt: That would be awesome, man. And definitely keep us posted as to the progress of where it’s getting screened. I think that this is a conversation that needs to be had. I think it’s an important conversation that isn’t really being had for the variety of reasons that you mentioned. And again, I’m really thrilled that somebody is really taking this issue and putting it on a screen, and putting it on a podcast, and getting the word out there that something needs to occur within this industry. Someone’s gotta be the advocate for it. Good on you, man. And I appreciate your time for coming on the show.

Mehka King: Man, TG, appreciate you. Like I said, I don’t normally like doing interviews, but this is great. I do appreciate your time, I appreciate you being so, just allowing me to speak a little bit today.

TG Branfalt: Hey man, we’ll link up soon, maybe on the East Coast, huh?

Mehka King: Yes sir, definitely, definitely. Appreciate your time.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com and in the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode is engineered by Jeremy Sebastiano. I’ve been your host, TG Branfalt.

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The city of San Francisco's downtown district photographed from a distance at dusk.

San Francisco Adult Use Sales Might Not Begin on Jan. 1

San Francisco, California officials have suggested that the city’s adult-use cannabis market might not come online with the rest of the state as local regulators will not issue recreational industry licenses until an equity program is created and new laws are passed to regulate the industry, the San Francisco Gate reports.

Equity programs are designed to help low-income entrepreneurs, individuals with drug offenses, and minorities. Equity programs have been included in Oakland and Los Angeles’ local rules, while a Boston, Massachusetts city councilor has pushed for equity rules to be included as part of the city’s program. In Maryland, equity rules are at the center of two lawsuits by rejected medical cannabis companies; Del. Cheryl D. Glenn has suggested scrapping the approved licenses and starting the process over because of the lack of diversity in the state’s industry.

San Francisco Supervisor Jeff Sheehy introduced the proposal, which has the support of Mayor Ed Lee, to the Board of Supervisors on Tuesday.

“Out of a 70-page ordinance, less than a page talks about how to make (the industry) equitable,” Sheehy said in the report, adding that the current proposals are “far from perfect, and further from final.”

The city will allow current operators to apply for temporary 120-day licenses on Jan. 1 while officials design the new rules. Earlier this month the city Planning Commission passed a recommendation to ban the opening of new dispensaries for up to two years while the new regime is being crafted.

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