U.S. Attorney General Jeff Sessions speaking at the 29th annual Candlelight Vigil.

DOJ Task Force Recommends No Changes to Federal Cannabis Policy

8/07/2017

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In its report to Attorney General Jeff Sessions, the Task Force on Crime Reduction and Public Safety offered no new policy recommendations related to state-approved cannabis programs, according to an Associated Press report. The task force, comprised of federal law enforcement officials and prosecutors, largely backed the current Justice Department policies outlined by the Obama-era Cole Memo.

John Huck, a Brookings Institute senior fellow who studies cannabis policy and was interviewed by the task force, said that the lack-of-enforcement recommendations reflect an understanding that shuttering the industry is neither possible nor plausible.

“If they come out with a more progressive, liberal policy, the attorney general is just going to reject it,” he said in the report. “They need to convince the attorney general that the recommendations are the best they can do without embarrassing the entire department by implementing a policy that fails.”

Instead of interfering with the industry, the report suggests that the department should work with Treasury officials to provide guidelines to financial institutions as to how to handle cannabis industry banking. The report also suggests that the department develop “centralized guidance, tools and data related to marijuana enforcement,” in order to better document cannabis legalization throughout the nation.

While the Justice Department has not commented on the report, which has not yet been made public, Sessions is not bound by the recommendations. The executive summary of the report obtained by the AP indicates that the task force will continue its work and the recommendations “do not comprehensively address” the totality of the Justice Department’s plans to reduce violent crime.

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An aerial and nighttime view of the Las Vegas city skyline.

Las Vegas Tribe Opening Largest Free-Standing Retail Cannabis Store in Nation

8/07/2017

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The Las Vegas Paiute Tribe is preparing to open what is believed to be the largest free-standing retail cannabis store in the country – a 15,000-square foot facility located less than a mile from downtown Las Vegas, KSNV reports. The shop, which is expected to open next month, will be called the Nu Wu Cannabis Marketplace.

The tribe already operates a discount tobacco shop and a golf course near the site; however, Tribal Chairman Benny Tso said sales at those businesses are slow and legal cannabis sales could be “an economic driver” for both the tribe and the region.

“Vegas is big for tourism and just like we do with our smoke shop and our golf resort … we’re looking to do the same with this,” he said in the report.

Tso indicated the marketplace will provide about 100 jobs, and while priority will be given to tribe members, there will be plenty of employment opportunities.

The tribe is required under the compact with the state to charge sales taxes in line with the rest of the state but those revenues will go to the tribe and not into state coffers. Tso said Nu Wu’s products will be priced competitively.

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Cars driving down the freeway/highway on a sunny day.

Maine Public Safety Committee Doesn’t Recommend Blood-Level Limits to Test Cannabis Impairment

8/07/2017

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A committee assembled by the Maine Department of Public Safety has determined that the state does not need to create blood-level limits to determine cannabis impairment. Rather, law enforcement officers should receive additional training to recognize impairment and the dangers of driving while under the influence of cannabis, according to a Bangor Daily News report.

Committee Chair Scot Maddox said that prosecutors and judges should also receive the training but the state’s current impairment laws are sufficient to measure cannabis intoxication.

“The basis of under the influence is irrelevant as far as the law is concerned,” Maddox said before the Legislature’s Marijuana Legalization Implementation Committee. “Whether you’re impaired because you’re drinking alcohol or whether you’re impaired because you’re taking prescription medications, or you’re impaired because you’re smoking marijuana, the difference is none, as far as the law is concerned.”

State Sen. Mark Dion, a former Portland, Maine police officer, said he was surprised by the recommendation because blood tests are key in netting impaired driving arrests and convictions.

“If you blow a 1.5 on the breath test, it kind of validates the officer’s conclusions that you’re impaired, and there’s a lot of weight placed on that breath test,” he said in the report. “If someone is arrested for cannabis influence impairment, all we have is the confirmation that cannabis is present. And it doesn’t necessarily validate the observations of the officer.”

Maddox said a blood test could still be used to shore up a driving-while-impaired charge and officers could still make arrests based on their observations – but recommended robust education campaigns for both the public and members of the law enforcement community.

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An old court room in the San Mateo County History Museum.

Dispensary Shuttered by Colorado County Commissioners Files Lawsuit

8/07/2017

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The owner of New Horizons, an El Paso, Colorado medical cannabis dispensary, is suing the county commissioners after the board voted 3-2 to deny the business’ license renewal, the Gazette reports. The dispensary is one of four located in unincorporated areas shut down by the commissioners and the lawyers for the dispensary owner say the board abused its power, basing the denial on “minor” violations that were corrected.

“It was like getting shut down for a parking ticket,” said Shane Zacher, owner of New Horizons, in the report. “I don’t think that’s right.”

The commissioners cited a 2016 Marijuana Enforcement Division inspection which concluded that the dispensary’s plant counts were inaccurate – exceeding allowable limits by five plants – and that some of the plants were improperly labeled. A follow-up inspection this year uncovered an outdated access log, a glitch in the security system which prevented the sales floor from being monitored, and invalid vegetation room records.

Commissioner Mark Waller, who opposed the state’s cannabis industry while serving in the state legislature from 2009 to 2014, claimed the dispensary “had clear violations” and that the board “did not abuse its discretion.”

“Anything related to the tracking of the plants and the tracking of the sales is crucially important to do correctly,” he said in the report. “It enables the regulators to know that they are engaged in a fully legal business.”

The county’s medical cannabis policies give the commissioners the right to shut down any licensed operator “for good cause.”

Zacher said that several of the commissioners publicly oppose legalized cannabis and claimed they are trying to shut down all of the operators in their jurisdiction. New Horizons is the first dispensary denied a license renewal by the board.

County Spokesman Dave Rose indicated that county attorneys will likely seek a motion to have the lawsuit dismissed.

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Jack Hudson: Heading a Combined Cultivation, Processing, and Retail Operation in Massachusetts

8/04/2017

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Jack Hudson is the founder and CEO of Ermont Inc., a licensed medical cannabis company based in Quincy, Massachusetts.

Founded in 2013, Ermont is a medical cannabis operation that spans all aspects of the industry, including cultivation, production, processing, and retail. Ermont opened its dispensary’s doors in late 2016 and has already attracted local and national headlines — both inside and outside of the industry — for some of the company’s truly unique infused edible offerings, including personal pizzas, honey, and peanut butter.

In the following interview, we catch up with Jack to talk about Ermont’s business strategies, hiring policies, product development processes, and more!

Ganjapreneur: For someone new to medical cannabis and to Ermont Inc., what’s the most important thing they should know before coming in to make a purchase?

Jack Hudson: Although the Patient Services Agents at Ermont will spend as much time as needed during the first visit, it’s always helpful when a patient does some of their own research as to what medicine might best help relieve their symptoms.

In all areas of health care, not just in medical marijuana, patient education is an important part of successful treatments and outcomes. Part of that education comes through consultation with a doctor or, in our case, the cannabis experts in our dispensary, and part of it is self-education. We really encourage that for all patients.

With all of the consumption options in the modern industry — flower, concentrate, edibles — how do you decide which products you want to produce or sell?

We do of course offer the basic products you mentioned – flower, concentrate and edibles – and we are always listening to what our patients have to say about the type of consumption they’re looking for – or even think they’re looking for. There may be trends we can focus on for our particular patient population and market, or there may be a specific product to introduce.

That really comes through in our edibles menu which has a wide range of appealing marijuana-infused products. Here, too, we have the basics such as chocolates and fruit chews and lozenges, but our talented edibles staff, who come from Boston’s vibrant restaurant scene, have really stretched the boundaries for edible offerings in Massachusetts.

For example, you may have heard of the cheese pizza that we launched in June. This is a pre-baked, sold-frozen personal pie that patients can heat up. It provides an enjoyable way to consume a dose of medical cannabis. This product proved quite popular just by the very nature of combining pizza with marijuana, and there is a long list of culinary innovations from chipotle cornbread and peach cobbler, to vegan mayonnaise and hot wing sauce. Menu items come and go, just like at a restaurant, based on the tastes, so to speak, of our patients.

How many employees does Ermont have?

Fifty.

Also, what qualities do you look for the most when hiring and how much training do new employees typically need?

Because we are a registered medical marijuana dispensary serving patients with a retail-like storefront, customer service skills are crucial. Our employees must be solid in this area and they must be able to work in an environment where change is constant – this is still an emerging industry in Massachusetts after all. When hiring folks, we want to see a passion for the medical marijuana industry and the patients that we collectively serve.

What kind of experience or qualities did you look for when putting together your cultivation and production team?

Key for our employees is an ability to follow cultivation and production team leaders’ instructions and guidance. We also appreciate a willingness to learn, a clear passion for the industry, attention to detail and anyone who is a self-starter.

What are the most difficult and most rewarding parts of running a cannabis dispensary?

The most difficult aspects of running a cannabis dispensary operation stem from the remaining uncertainties surrounding the cannabis industry in general in Massachusetts. It is still a new and evolving industry overall, with a rollout of recreational marijuana on the horizon as well.

On the flip side, all of this is worth it when we witness the progress our patients have made through the use of medical marijuana. One such story involves a regular patient who always visited Ermont in a wheelchair – until one day he entered the dispensary using a walker. We were amazed to see this milestone, and so pleased when he attributed his improvement to the use of medical marijuana. Nothing is more rewarding than something like that.

What has been the most surprising part of running a medical cannabis operation so far?

The fact that the challenges and opportunities look just the way they do in other businesses, industries, and sectors. Also, having strong support from city government and the local community around Ermont have been critical in setting the stage for a successful operation.

With so many horror stories out there about the over-regulation of the cannabis industry at the municipal level, do you have any tips for fostering a good relationship with local officials?

As with any healthy relationship, regular communication, honesty and transparency are critical. We have been fortunate to have a strong relationship with officials in the city of Quincy; they understand our mission and appreciate our approach. We also strive to give back to the community, in part through our community host agreement with the city of Quincy that has generated funding for substance abuse education and a full-time substance abuse coordinator. We also launched Ermont Cares, a charitable initiative that donates proceeds from a designated product – infused chocolates – to a local organization. Our first beneficiary is DOVE, a domestic violence shelter.

Have you ever been surprised by the success or popularity of a specific product or type of product that you offered?

Offering edibles which can be consumed as part of a meal vs. a treat seemed to just make sense to our team. Yet we were still pleasantly surprised by the reception we received for certain products, such as hot chocolate in the colder months and everyday foods such as mac ’n’ cheese, muffins and quiches. The key, we believe, is to check in with our patients to get an idea of what they’re looking for at any given point.

About how much time goes into the R&D of new edible offerings?

Sometimes weeks, sometimes months, depending on the complexity of the product and the underlying recipe. Our edibles team spends a lot of time experimenting, just like chefs in a kitchen, and even before they pick up a spoon or turn on the stove, they are just talking things over conceptually, sort of like mapping out a restaurant menu. Just to give you an example, our cheese pizza product, which turned a lot of heads recently, took about two to three months from inception to finished product.

What was the biggest obstacle you have had to overcome so far?

“Obstacle” is a bit extreme but I would say that a challenge Ermont has faced since we opened in October 2016 would be keeping up with the rapid growth in patient volume.

What advice would you offer to someone who wants to launch their own career as a cannabis entrepreneur?

I’ll keep it simple: Hold onto your vision, because it’s easy to become distracted.

Thanks, Jack, for taking the time to answer our questions! To learn more about Jack Hudson or Ermont Inc., you can visit ErmontInc.org.

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A medical cannabis patient's personal grow room in California.

Cannabis Tech Company Purchases Entire California Town

8/04/2017

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Cannabis-focused technology company American Green has purchased the California town of Nipton for nearly $5 million, planning on transforming it into a destination for cannabis tourism, according to a Business Insider report. The 120-plus-acre town has a population of six, a general store, a five-room hotel, and a solar farm that will eventually allow the town to operate 100 percent off the grid.

Stephen Shearin, a consultant working with American Green on the project, said the company plans to keep the small businesses in the town intact and will offer jobs to the residents.

“The [idea] here isn’t to create ‘Woodstock 2017,'” Shearin said in the report. “It’s about creating an environment where people come to work and share in a community.”

Infrastructure construction will begin immediately, but the town must first be incorporated before they can apply for a cultivation license from the state. The future dispensary will be called The Apothecary and will have an Old West theme.

American Green, founded in 2009, is involved in cannabis-dispensing vending machines, seed-to-sale tracking solutions, a dispensary-locator app, and the manufacture and sale of CBD oils, including capsules, balms, and mints. The company plans on tapping an aquifer in Nipton to produce hemp oil-infused water.

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Beach goers hanging out under sun umbrellas on the beach in Florida.

Florida Licenses Two New Medical Cannabis Operators

8/04/2017

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Florida’s Office of Medical Marijuana has issued two new cannabis licenses with more on the way, WFSU reports. The move comes more than a month after Gov. Rick Scott signed the legislation expanding the state’s medical cannabis regime approved by voters but revised by lawmakers during a special session.

The new licenses were awarded to Three Boys Farm and Plants of Ruskin. Both companies applied to the state during the first round of licensing but were denied. Ultimately they sued state regulators, who chose different companies.

Jim Eaton, the attorney for Three Boys, said the next step is for the company to build dispensaries throughout Florida.

“And probably we’d start in some proximity to where we grow just south of Tampa – maybe down the lower west coast, and some of the principal cities around Florida,” he said in the report.

Lawsuits against the state are not over, as Orlando-based attorney John Morgan, one of the financial backers behind the constitutional amendment campaign, and Count Joe Redner, a strip club entrepreneur and lung cancer patient, have each sued the state. Morgan’s suit was filed over the no-smoking provisions approved by lawmakers; while Redner’s is over the ban on home grows.

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Ohio College Agrees to Partner with Cannabis Testing Firm

8/04/2017

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An Ohio college has signed a letter of intent with cannabis testing laboratory CCV Research which should eliminate the risk of delays to the medical cannabis program roll-out because, under the state law, labs are required to partner with higher education institutes but until now none had decided to participate.

Dr. Jonathan Cachat, PhD, CCV Research CEO, said the team “had a difficult time even identifying qualified colleges willing to engage in the conversation.”

“However, we found a unique, entrepreneurial team that recognized the opportunity to provide education with hands-on lab experience, create local jobs, and support a functioning medical cannabis system in Ohio,” he said in a press release.

The college has not yet chosen to be identified.

Ohio’s medical cannabis program is expected to come online in September 2018 and earlier this week the state legislature’s Joint Committee on Agency Rule Review approved rules for the program. Under the rules, industry applicants will be subject to steep fees – processors will pay $10,000 to apply for a license, another $90,000 if approved, and $100,000 annually to renew. Dispensary applicants will pay a $5,000 fee and $70,000 bi-annually if approved. Laboratory application fees are $2,000 and the certificate of operation fee runs $18,000, with annual renew fees of $20,000.

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The blue and red lights on top of a police car.

U.S. Attorney’s Office Indicts Three for Attempting to Bribe Michigan Officials for MMJ License

8/04/2017

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The U.S. Attorney’s office has indicted three would-be Michigan medical cannabis dispensary owners, accusing them of attempting to bribe officials in Garden City to approve their license, the Detroit Free Press reports. Brothers Mike and Ali Baydoun, along with their nephew Jalal Baydoun, are accused of offering bribes to the three city council members, the mayor, and the police chief.

Federal authorities say the Baydouns handed an envelope with $15,000 to a city council official – $5,000 each – in December and offered to buy the city a police car, pay a police officer’s annual salary, and give the officials a 25 percent cut of the dispensary’s profits. The councilor handed the envelope of cash over to the FBI. The indictment also alleges that the family said they would put $150,000 in an escrow account that would be used to pay additional bribes.

Under the city’s medical cannabis ordinance, only two cultivation licenses are available and the accused were hoping the bribes would convince officials to amend the rules, add another license, and award it to them, allowing them to grow 1,500 medical cannabis plants in the city.

The U.S. Attorney’s office declined to comment further on the investigation or who else from the State might be suspected of colluding with the Baydouns.

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A woman uses a vape pen to consume CBD-rich cannabis oil in conjunction with hot cup of tea.

Survey: 80% of Respondents Report Success with CBD Therapies

8/03/2017

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The largest-ever survey conducted on cannabidiol (CBD) users found 80 percent of respondents reporting the cannabinoid “very effective” or “extremely effective” in treating their respective conditions, with 42 percent reporting they actually stopped using traditional prescription and over-the-counter medicines and replacing them with CBD-based products.

The study was conducted by HelloMD, one of the nation’s largest online communities of medical cannabis patients, and Brightfield Group, a marketing and research firm specializing in cannabis industry data and analysis.

Among the cannabis users surveyed, 75 percent used CBD products, with half reporting using whole plant-derived CBD and 20 percent using hemp-derived CBD products. Of those, 80 percent said they used CBD products at least once a week, and 41 percent indicated they used the products daily. Interestingly, 58 percent of CBD-only users are women, according to the study.

Women gravitating more toward CBD

Dr. Perry Solomon, chief medical officer for HelloMD, said he was “a little surprised” that women represented the majority of CBD users in the study, noting that a previous study conducted by the company found 36 percent of women used cannabis generally, and another found 44 percent of women consumed cannabis.

“I can only guess as to why,” he said in an interview with Ganjapreneur. “One of the reasons may be that women aren’t looking for the psychoactive effect of THC combined in their product and are looking for a purely anxiety-reducing type of medicine. … I think they are looking for a medicine that doesn’t cause a psychoactive effect – that’s the only logical conclusion I can draw.”

Bethany Gomez, director of research for Brightfield Group, said she believes part of the reason women used CBD-only products more than their male counterparts is that they tend to do more research and, while laypersons still don’t know much about CBD, women often look deeper into the information when trying to treat their condition.

“Women are doing more research and more aware of the products,” she said in an interview. “As well as CBD may be beneficial for them especially in conditions more interceded with women.”

Cannabidiol (CBD) has grown dramatically in popularity in recent years and can be sourced either from industrial hemp plants or medicinal cannabis plants, pictured above. Photo Credit: Cannabis Pictures

CBD replacing pharmaceuticals

The researchers found 65 percent of respondents used CBD to treat anxiety, with insomnia or sleep problems being the second most reported condition treated with CBD products (60 percent.) Another 54 percent said they used CBD to treat joint pain and inflammation and about 45 percent used the cannabinoid to treat symptoms of depression. About 35 percent of individuals experiencing muscle tension or strain reported using CBD, and just about the same number of respondents indicated using CBD to treat migraines or tension headaches. Thirty-two percent of respondents said they used CBD to treat severe or chronic pain, while 31 percent were arthritis sufferers who said it helped treat the condition. Thirty-one percent of hemp-derived CBD users said CBD worked to treat their nausea, compared to 26 percent whose CBD was derived from non-hemp sources.

Thirty-five percent of CBD users also used prescription pain killers, such as Vicodin, and slighty less (34 percent) used prescription anti-anxiety medication, such as Xanex; another 20 percent indicated using prescription sleep medication like Ambien. Sixty-five percent regularly used over-the-counter pain relievers, while about 40 percent used over-the-counter ointments or topicals to relieve pain, such as BenGay. About 44 percent also used herbal or natural remedies to ease the symptoms of their condition.

Of those, 42 percent have replaced their over-the-counter or prescription medication with CBD, while 37 percent reported using traditional medications in conjunction with cannabis products, with 20 percent saying they alternate between the two. Just 1 percent of respondents said they used other medicines instead of cannabis. Slightly more hemp-derived CBD users (43 percent) used cannabis in lieu of traditional medications than those who use whole plant-derived CBD products (40 percent.) Sixty-six percent of respondents indicated that, overall, CBD therapies were either “much more effective” or “more effective” than over-the-counter medicines.

Solomon said he was surprised by the number of people who stopped using traditional medication in favor of CBD.

“If people are able to cut down on opioids … and even anti-inflammatories … it’s a huge win for anyone that wants to try and get off traditional medication or finds that it doesn’t work,” he explained. “That being said I think people need to be very cognizant about what and where they are purchasing just in terms of the quality of the CBD.”

Survey respondents indicated that vape pens were their delivery method of choice, which Gomez said was in line with national industry trends.

“People are increasingly looking to vape as opposed to flower or as opposed to other product types because it’s a healthier method of consumption,” she said. “Particularly for CBD, there’s more products available and when it comes to CBD people want to go toward more packaged products. … It’s fast-acting and it’s reliable.”

Solomon explained that while there may be some consumer concerns about components of vape pens – such as the coils and nickel used in production – the availability and the ease of using the device makes them a popular option.

“It’s just what’s easier for the patient, and how soon do they want it to work,” he said, adding that CBD tincture doesn’t have any of those byproducts but takes more time for the body to process.

According to the research, CW Hemp’s Charlotte’s Web was far and away the most popular brand. Plus CBD Oil, Mary’s Medicinals, TetraLabs, and Bluebird Botanicals rounded out the top five – although it should be noted that the majority of the 2,400 HelloMD members (86 percent) hailed from California. One percent each resided in New York and Arizona, and about 1 percent lived in Canada and Europe. The remainder was from 41 other U.S. states.

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Jon Gowa: Robotics in the Cannabis Industry

8/03/2017

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Jon Gowa is the founder and CEO of Bloom Automation, a company that is designing and creating robots in Colorado to assist the cannabis industry.

In this episode of the Ganjapreneur.com podcast, our host TG Branfalt and Jon discuss Bloom Automation’s participation in the Boulder Canopy startup incubator, the various robot designs they have tested and found most effective, what role robotics may play in the future of the cannabis industry, and more!

You can listen to the interview via the media player below or keep scrolling down to read a full transcript of this week’s Ganjapreneur.com podcast episode.

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey, there. I’m your host, TG Branfalt and you’re listening to the Ganjapreneur.com podcast where we try to bring you the actionable information to normalize cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today, I’m joined by Jon Gowa. He’s the CEO and founder of Bloom Automations. Jon, you guys make robots.

Jon Gowa: We do indeed. We make robots to help the cannabis industry.

TG Branfalt: That’s the crux of what we’re going to get into a little bit later, robots, how do they work — but before we get into that, I want to know about you. Tell me about what you did before entering the cannabis space.

Jon Gowa: Great. I’ve been an engineer for about seven years now. I initially started out actually in agricultural robotics at a firm called Harvest Automation and there, we made robots that moved potted plants such as rose bushes.

TG Branfalt: How did you decide to enter the cannabis space and did you use your previous experience to build this tech?

Jon Gowa: Yeah. Definitely, I would say I was inspired by my previous experience and honestly, one day, I was watching television. I believe it was a CNBC program about the cannabis industry and saw a particular task, this task of trimming and thought that might be something perfect for robots.

TG Branfalt: Again, we’re going to talk about the robots but I want to talk about a couple other things first. I want to talk about the accelerator program that you guys are involved in, the Canopy Boulder program.

Jon Gowa: Absolutely.

TG Branfalt: What was your application and pitch process like to get involved with that program? How did you discover it?

Jon Gowa: Okay. Canopy Boulder, we discovered it through the ArcView program and we were at one of their conferences, Canopy Boulder was set up with impressive booth and a list of companies that were at this investor forum. We got to know them. We got to know Micah. He said, “Why don’t you apply?” Later, last fall, I was in Boulder and actually met again at Canopy, learned a little bit more about the program, about their alumni and found it a fascinating opportunity.

TG Branfalt: What was the application and the pitch process like for you guys? Was it the Shark Tank experience? Were you in front of a bunch of people and …

Jon Gowa: Although we have had that experience on stage at ArcView, the Canopy Boulder application was a little more friendly. You mainly filled out a lot of forms online and wrote about exactly why you’re in the industry, where your goal is, and really pitching from there.

TG Branfalt: Why did you choose an accelerator program over other ways of finding investments such as finding direct investors or venture capitalists?

Jon Gowa: Great question. I think for us, it was more about getting really immersed in the industry. Although laws are changed in Massachusetts where I’m from, things are really developed out here in Colorado. To actually get to know industry professionals, get to know hopefully our potential clients and what their needs are, it seems like a good idea to come out here.

TG Branfalt: The Canopy Boulder experience and the culture, what’s that like working so closely with other companies who are designing their own tech or doing something entirely different and working with a lot of people who have very broad knowledge base?

Jon Gowa: Exactly. I would say it’s absolutely fascinating. We get to work, exactly like you say, with companies that have such varied skills. In this environment, it’s not so much competitive as it is collaborative. When I needed help working on the website, Henry from Cannabis Big Data knows all about website, all about analytics and was able to get me up and running in honestly 30 minutes, something that would have taken us weeks and more. Yeah, they have that kind of collaboration and everyone working towards the same goal, granted they’re on the same company … on different companies but we’re like working towards the same goal in the same industry.

TG Branfalt: I had an interview with the CEO of the San Diego Canopy and he appeared on the podcast. He said that one of the goals for their program, and they specifically bring in a lot of tech projects is they’re not looking for something that reinvented the wheel, so to speak. They’re more interested in picks and axes rather than gold so they don’t have any companies that touch the plant, that sort of thing. In Boulder, do you have the same experience in that program where it’s more picks and axes as opposed to the gold, if you will?

Jon Gowa: We do. We do have that same experience and the same criteria for it to be an ancillary company. I think that’s interesting and it’s also … because we’re all ancillary companies, we’re tied in that sense. Our clients are all similar so it’s really … it’s kind of a good thing for our company.

TG Branfalt: Tell me about your company. Tell me about Bloom Automation. You have robots. What do these robots do? Who’s using them?

Jon Gowa: Great. We have robots and it’s mainly aimed at the task of trimming which is after you harvest the cannabis, you have the flowers and then you have the sugar leaves and the fan leaves or the water leaves. Although the leaves are still valuable, you want to remove those and separate them. There’s numerous ways of doing it. Typically, it’s hand-trimmed or there’s some large machines that trim it but these machines are a little bit more coarse, so to speak. We’re looking at robots that could use cameras and they actually look at the cannabis and understand each different plant, each different branch and are able to cater that when it goes to actually trim and operate on that branch.

TG Branfalt: These aren’t like humanoid robots, right, that are holding scissors and doing this? These are more production style robots?

Jon Gowa: I would say it’s somewhat of a mix, so our next generation robot, it does wield a pair of shears, they look quite like a regular scissors and it uses an articulated arm that enables it to be more dexterous. Meanwhile, our initial prototype which is online and functioning right now like you said, looks more like a production piece of equipment, even kind of like a 3D printer. The robots are changing in form.

TG Branfalt: Already?

Jon Gowa: Already to kind of make sure we’re precise, as precise as a human and as we learn different capabilities and restrictions of a particular robot or system, we’re adapting to this.

TG Branfalt: I read that the automation increases security. I was wondering if you could just tell our listeners how automation does increase security and why.

Jon Gowa: Automation can certainly increase security by … It’s a more controlled environment. Certainly, if you have conveyor belts, you have your product going from one conveyor perhaps through a robot, it’s all controlled. It’s very unlikely you’re going to lose any product particularly with all the cameras, automated cameras. For that reason, you have a good control of your product throughout the entire process whether it’s trimming or going through packaging. Automation can certainly help.

TG Branfalt: You had mentioned earlier that your tech is already sort of evolving. Give me some sort of specifics about what has happened since the early test phase to now.

Jon Gowa: Exactly. Early on, although we’ve always used cameras, we had numerous different sensors like touch sensors and other sensors but now, we rely completely on cameras. What’s changed is in the beginning, the robot was a lot more cumbersome, so to speak. Sometimes, it ate an entire flower without really knowing it. Now, we’ve refined that algorithm much, much further. It knows exactly where each leaf is. It no longer has false positives or false negatives and it’s certainly more precise and more efficient. In fact, it’s almost 10 times faster than when we started.

TG Branfalt: Tell me how much product it can go through and how accurate is it.

Jon Gowa: Okay. We’re aiming for the production model to go through at least a quarter pound dry equivalent per hour. That would represent the equivalent of perhaps one to two hand trimmers. The accuracy is quite good. We’re at about 80% right now but we really want to hit that 95% threshold which is, it starts looking exactly like a hand-trimmed product. It’s very precise.

TG Branfalt: How far are you away do you think from hitting that 95% goal?

Jon Gowa: We have beta testing to begin at some cultivation sites across the country, about six of these sites. From there, that’s where we really start to gather data so we’ll see how are these actually performing in real life, what is the accuracy that the cultivators are reporting because it is something of subjective matter and from there, we’re going to make incremental improvements until we hope we get to that 95%.

TG Branfalt: What do you mean by it’s subjective? What does that mean when you’re dealing with data? Data is not really subjective.

Jon Gowa: Right. For accuracy, some would say some cultivators prefer a closer cut where perhaps you’re trimming the sugar leaves very down low, of course, getting all the crow’s feet but other trimmers, especially when the product is wet, might consider it okay to leave some sugar leaf because it still has product on it, active product. I think it depends on cultivator to cultivator. That’s actually something we want to program into the robots. This is one of the levers they can pull but we want to make sure when they pull that lever, they’re getting a desired outcome.

TG Branfalt: The system is adaptable.

Jon Gowa: That’s correct. There will be some tunability whether they want, like I said, a closer trim or perhaps a looser trim and that can be for numerous reasons from speed to, of course, just how they like their product.

TG Branfalt: That’s really cool stuff. We got to take our first break. I’m TG Branfalt. This is Ganjapreneur.com podcast.

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TG Branfalt: Hey, welcome back. It’s the Ganjapreneur.com podcast. I’m your host, TG Branfalt here with Jon Gowa, CEO and founder of Bloom Automation. Before the break, we’re talking a bit about how the robot works but there’s going to be … You’re definitely going to get some voices who are saying that one of the benefits of legalization is job creation. A February report from New Frontier estimated the cannabis space to create 250,000 jobs by 2020 while manufacturing, government and utility jobs decrease by 814,000, 47,000 and 383,000 respectively. What is your response to people who might see your robots as a threat to job creation in the cannabis space?

Jon Gowa: Yes. The robots and automation in general really works to increase efficiencies. Often, what occurs there is as opposed to eliminating jobs,
you’re actually creating more jobs such as everything … The robot needs an operator. These current robots, for example, don’t feed themselves. Branches need to be fed in. Then, of course, there’s robot technicians, robot programmers and a number of jobs that are actually on-site jobs that will be created. What we like to look at is the efficiency improvements that these robots can provide employers and enable them to employ even more people whether it’s down the line or actually helping the robots.

TG Branfalt: Well, and tech companies need a variety of talent as well. What are you guys going to be looking for as you expand in terms of talent?

Jon Gowa: Certainly. Everything from, of course, programmers who are experienced in robotics and specifically vision to then we would need robot technicians across the country because robots, they break down like any piece of capital equipment or any piece of equipment really. We will be wanting to train particularly people that are familiar with other equipment in the cannabis industry whether it’s they’re trained on lighting equipment, dehumidification equipment. We’ll be looking for those same people and hopefully train them how to work on the robots so that we have technicians capable all across the country and when a cultivator needs them, they can go out and service the robots and of course, individuals that would operate the robots and then, we are planning on United States manufacturing so we’ll need an army of assembly technicians as well.

TG Branfalt: So far, have you been able to find qualified people to do the jobs that you’re looking for and if so, what sectors are they coming from?

Jon Gowa: Great question. For example, we’ve been looking for contractors that are familiar with cameras and how cameras integrate with robots and typically, that’s in automation field. We found contractors everywhere from Denver to San Diego to Tampa, Florida who all not only have an interest in the field but have a strong interest. They see it as a growth industry and have said that there’s request from other people, from cultivators themselves. We’ve had very good response honestly from vendors and industry professionals outside of the cannabis industry.

TG Branfalt: What other functions might robots be able to perform in the cannabis supply chain?

Jon Gowa: We’ve already seen some equipment whether you would call it an automation equipment or robotics, that help package cannabis, help package flower. One of the things I know that’s being looked at is packaging concentrate products. No pun intended but it’s really a sticky process and … yeah.

TG Branfalt: I love puns.

Jon Gowa: It’s tough to really … The process is called gramming and I think it’s pretty tough to do manually.

TG Branfalt: That’s something that people might be looking towards robots for or are they already being utilized?

Jon Gowa: They’re not being utilized but they are looking towards that, just one example, to help packaging, help packaging efficiency, consistency so that every time you look at the product, it’s consistent to what you expect.

TG Branfalt: When you approach a cultivator and you tell them, “Hey, I’ve got these trimming robots,” what’s their reaction?

Jon Gowa: Generally, their reaction is fairly positive. I think trimming is often seen as one of not the most desirable jobs in the industry. What we hear from cultivators is they love their great trimmers but all their great trimmers want to do is move up to that next level where they’re no longer trimming, so it’s difficult for them to find good trimmers and if they could instead operate robots that would really equate to this quality, they would love to do so.

TG Branfalt: How much training would somebody who’s trimming by hand now need to operate one of these robots?

Jon Gowa: Certainly, I think a large population of the trimmers right now are of the age that they’re quite familiar with technology and the robot’s operated through a touch panel control. It’s fairly intuitive. It’s a small combination of mechanical, just how you load the branches and then simply following kind of on-screen instructions. I think they would get sort of used to the errors that might happen with the robot and learn how to adjust those pretty quickly. It’s very similar to how humans work with robots in the automotive industry. It’s pretty collaborative.

TG Branfalt: You don’t need to have like an engineering degree or something to operate these?

Jon Gowa: No. Absolutely not. We really would count on those hand trimmers and other employees to assume these roles.

TG Branfalt: We got to take our last break. When we come back, we’re going to talk about something you and I both know a little bit about and that’s cannabis on the East Coast. Before we do that, we’ll take a break. This is the 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 with Jon Gowa, CEO and founder of Bloom Automation. You had mentioned earlier you’re from Massachusetts. I lived in New York for years and years. I spent tons of time in Massachusetts and I was stoked and maybe a little surprised when they passed cannabis legalization last November. It was a huge domino that toppled in New England because of Boston and the power politics that are played, I’m certainly sure you know, in Massachusetts. Were you confident going into that vote? What were your feelings as a native going into the November election?

Jon Gowa: No. I was hopeful but I wouldn’t say I was completely confident. I knew in the earlier polls, it was somewhat split but at least we had passed medicinal and then decriminalization. I was hopeful we would follow suit and certainly pleased with the outcome there.

TG Branfalt: Do you have the same sort of feeling that I do that it was kind of the first domino? I mean that and Maine, that I mean it was a simultaneous thing but to me, New England or I’m sorry, Massachusetts is sort of the bigger of the two fish if we’re frying them. Do you kind of get that sense as well that … I mean now, we got Vermont who just, the legislature passed, strange legalization bill. Delaware is working on it. I hear Rhode Island but do you think that it took Massachusetts to kind of get that ball rolling?

Jon Gowa: Personally, I do think it did take Massachusetts to really get everything rolling. I think just as other states have looked to Colorado including Massachusetts, I think other New England states will continue to watch Massachusetts as the legalization plays out.

TG Branfalt: Well, and there’s been some setbacks. The legislature delayed implementation from January to July 2018. Several municipalities have enacted either moratoriums or total bans. They have approved the funds for the program which is a start. How confident are activists and canna-business owners in Massachusetts that the state will meet that July 2018 deadline? What are your concerns about the law if any or its implementation?

Jon Gowa: I certainly hope that the law is implemented. As you said, it was supposed to be in January. I certainly hope in July, I think the voters have voted. The time has come but the cities that haven’t, for the cities that haven’t or that have pushed back, I think they’re losing out and I’m sure eventually, they’ll turn, just like some cities here in Colorado have. Then, yeah, I’m not 100% confident on the actual meeting the timeline. It’s really, I mean … yeah.

TG Branfalt: Finally, what advice would you have for entrepreneurs, specifically those interested in entering the tech sector?

Jon Gowa: Great. I think there’s ideas. There’s thousands of ideas but really, I would say building your team, whether it’s just you and a partner or you and two partners, building a team where you really complement each other and then really looking at your opportunities, so if you have an idea and you have a prototype, then maybe you start looking for some investment but otherwise, these incubators are really … It’s a really good opportunity to get to know the entire industry, get to know venture capital. Myself, I’m not an MBA but this is kind of like a mini-MBA. I would certainly advise that to any entrepreneur whether you’re an engineer or not, or a business professional or not.

TG Branfalt: Finally, can you tell us where we can find more about your product?

Jon Gowa: Absolutely. On our website at bloomautomation.com and of course, at our Twitter, @bloomrobots. Both is a great opportunity to learn more.

TG Branfalt: Awesome, man. Well, thank you for taking the time out to be on the show. It’s really cool tech that you guys are rolling out and I really can’t wait to see how it exactly develops. That’s, I think, going to be a really fascinating thing to keep my eye on.

Jon Gowa: Yes. Thank you really much, Tim. I love the show and I’ll be anxious to hear more from you.

TG Branfalt: Thanks so much. 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’ll 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 was engineered by Jeremy Sebastiano. I’ve been your host, TG Branfalt.

End

A commercial jet takes off from the Las Vegas International Airport in Las Vegas, Nevada.

Broad Proposal Would Ban Cannabis Advertisements in Las Vegas Airport

8/03/2017

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During a public hearing by the Clark County Commission, which encompasses Las Vegas’ McCarren International Airport, commissioners proposed an ordinance that would ban cannabis advertisements and make cannabis possession illegal on all airport-owned properties, according to a report from Aviation Pros. However, if approved as-is, cannabis advertisements could also be banned from vehicles carrying passengers to and from the airport, such as taxis.

Nevada Director of Aviation Rosemary Vassiliadis said the ordinance was an effort to keep the airport in federal compliance but not to control “the transient vehicles that come through the airport.” She said her staff would work to clear up the wording; however several commissioners expressed interest in keeping the language of the proposal broad.

“I don’t want it anywhere,” said Commissioner Marilyn Kirkpatrick, the board’s most outspoken opponent of legalized cannabis, in the report.

Commissioner Larry Brown said he would like to see the board “go to the limit” in reigning in industry advertising.

“Ban everything related to recreational and medical marijuana,” he said. “Once (the industries) have a track record, we can adjust.”

Vassiliadis told the commissioners that the advertising ordinance “has to be realistic.”

The commission ultimately made no decision on the proposal, tabling it for 30 days while they seek input from the state Taxicab Authority, Green Ribbon Advisory Panel, and other interested parties.

End

Senator Ron Wyden speaks at the Smithsonian Folklife Festival at Oregon State University.

Oregon Sen. Asks AG Sessions to Release DOJ Crime and Public Safety Task Force Report

8/03/2017

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Last week, advocates and cannabis industry operators were expecting an explosive report from the Department of Justice Task Force on Crime and Public Safety – but the report was never made public. Instead, Attorney General Jeff Sessions released a statement outlining the work of the task force explaining that he had been given a report, and would review the task force’s recommendations.

On Tuesday, Sen. Ron Wyden, whose home state of Oregon has legalized the use and sale of cannabis, sent a letter to Sessions pressing him to make those recommendations public.

“The American people have a right to know the basis for enforcement policy changes made by the Department of Justice,” he wrote. “… These DOJ decisions could have dramatic and wide ranging consequences for Americans’ daily lives.”

In the letter, Wyden expressed concern “about the secrecy shrouding the recommendations provided to [Sessions] by the task force’s marijuana subcommittee. He notes an April memo in which Sessions singles out cannabis policy, worrying that, combined with Sessions’ past statements on legalized cannabis, the DOJ could use the report to “justify federal actions that undermine states’ rights to set their own marijuana laws.”

“The citizens of Oregon voted to legalize medical and recreational marijuana, and it is not the role of the Attorney General to unilaterally undermine the will of Oregon voters on the basis of uncorroborated claims and furtive recommendations made by a task force shielded from public input and scrutiny,” Wyden says in the letter.

The senator concludes by asking Sessions why he has not released the recommendations. Wyden also asks Sessions to provide him with copies of the report if he does not plan on releasing it publicly.

End

Plastic bags of kettle corn sit in a pile during an event at the Del Mar Fairgrounds near San Diego.

San Diego Cannabis-Themed Festival Cancelled by Fairgrounds

8/03/2017

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The Goodlife Festival, a cannabis-theme event set for late September, has been canceled by the Del Mar Fairgrounds despite the organizer saying he would rewrite the contract to hold the festival without cannabis after the District Agricultural Association board canceled the event’s contract, the San Diego Tribune reports.

Lawrence Bame, CEO of the festival, indicated he was “willing to agree to anything” but the board refused to negotiate and told him “don’t come back.”

“Nobody wants to put anything in writing, especially the board, especially for a smoking policy,” he said in the report. “I just got a phone call saying ‘You can’t go back to the board this year.’”

Tim Fennell, CEO of the fairgrounds, declined to address Bame’s allegation that Fennell refused to put anything indicating the deal was off in writing.

“Lawrence Bame is welcome to bring this issue before the board later this year,” he wrote in a statement to the Tribune. “The 22nd DAA is waiting for the Department of Food and Agriculture to provide rules and regulations in order to proceed with these type of events.”

Cannabis would not have been sold at the event, even under the stipulations of the original contract, but attendees would have been allowed to bring their own cannabis and smoke it in designated sections. Bame had lobbied for the event since 2010 and called the decision by the board “schizophrenic” because the DAA board allows other events that draw cannabis consumers – just less overtly than the Goodlife Festival.

Adult-use cannabis legalization is set to take effect in California starting January 1.

End

Minnesota Judge Orders Smuggling Case Involving Ex-Vireo Employees to Continue

8/03/2017

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A Minnesota judge has denied the motion to throw out charges against two former Vireo Health officers accused of illegally transporting $500,000 in cannabis products from Minnesota to New York while trying to meet a January 2016 deadline under New York’s medical cannabis program, according to a report from the Journal News.

Dr. Laura Bultman, former chief medical officer for Vireo, and Ronald Owens, the former security officer, are accused of using the company’s armored car to transport the products – in violation of federal and state laws.

Judge Kathleen Mottl ruled that the alleged smuggling scheme is not protected under Minnesota state law or federal corporate laws. Mottl concluded that the duo acted alone and that no current Vireo Health officials are implicated in the case. Health officials in New York are conducting an independent investigation.

Andrew Mangini, a spokesman for Vireo Health, said Mottl’s decision was “a reminder that neither Vireo Health nor any of its affiliates are a party” to the actions of the accused former employees.

“This ruling follows closely on the recent news that the licenses for both Vireo Health of New York and Minnesota Medical Solutions were renewed by state regulators,” he said in the report. “As always, we will continue to remain laser-focused on serving patients suffering from serious conditions like chronic pain, cancer, ALS and HIV/AIDS.”

Both Bultman and Owens have pleaded not guilty.

End

An indoor cannabis crop in a licensed cannabis cultivation site in Washington state.

Alaska Cannabis Tax Revenues Reach New High

8/02/2017

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Tax revenues derived from Alaska’s legal cannabis industry nearly doubled from May to June, from $272,100 to $512,200 – the most in a single month since sales began in late October, Alaska Dispatch News reports. Officials from the state Department of Revenue are anticipating the trend will continue for July.

“This is really incredible,” Kelly Mazzei, excise tax supervisor for the tax division, told ADN reporter Laurel Andrews. “We knew it would happen; we just didn’t know when.”

In addition to the sales taxes, 40 growers and 15 cultivators paid the state in June and Alaska netted $1,748,500 from legal cannabis sales during the fiscal year, which ended on June 30. The state had projected $2 million after downgrading their projections twice following slower-than-expected sales in January and February.

In June, 547 pounds of flower and 313 pounds of trim were sold by cultivators in the state. Flower is taxed $50-per-ounce and trim is taxed $15-per-ounce.

“We also anticipate much larger quantities being sold or transferred [in July] by outdoor cultivators as those crops are harvested,” Mazzei said in the report.

Under state law, half of the tax revenues are earmarked for the state’s general fund, while the remaining is used for programs to reduce repeat criminal offenders.

End

A NFL quarterback looks down field to make a pass.

NFL Offers Partnership with Union on MMJ

8/02/2017

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NFL officials have offered to work with the NFL Players Association on the potential of cannabis as a pain management tool for players, according to a Washington Post report. In a letter, league officials outlined areas for potential research including pain management for acute and chronic conditions.

The letter comes one week after a study was published in the medical journal JAMA which found Chronic Traumatic Encephalopathy, a neurodegenerative brain disease, in the brains of 110 of 111 deceased former players. Several studies have purported that cannabis has neuroprotective qualities; the most recent was conducted by researchers at Israel’s Tel Aviv University’s Adelson Center for the Biology of Addictive Diseases as the Sackler Faculty of Medicine published in 2013.

“We look forward to working with the Players Association on all issues involving the health and safety of our players,” said Joe Lockhart, the NFL’s executive vice president of communications, in the report.

The union has been independently investigating alternative pain management treatments, convening a pain management committee last year. Additionally, NFLPA Executive Director DeMaurice Smith has called on the league to relax its cannabis policies, urging league officials “to not simply assume recreation is the reason [cannabis] is being used” by players. In May, Smith said in an interview with ESPN Outside the Lines that the union intends to present a proposal to the league “that has probably a more therapeutic approach” to players who test positive for cannabis.

The NFLPA has not publicly responded to the league request to collaborate on the potential of medical cannabis use in the league.

End

New York Adds Five Companies to MMJ Roster

8/02/2017

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New York has doubled the number of available medical cannabis licenses from five to 10, despite objections from current operators claiming that the demand doesn’t call for an expansion. However, according to a New York Post report, the number of registered patients has increased 70 percent since March – from 10,744 to 25,736 – following the addition of chronic pain to the qualifying condition list in December. Patients with the condition were allowed to access the program on March 21.

State Health Commissioner Dr. Howard Zucker said adding the additional licenses “will make it easier for patients across the state to obtain medical marijuana.”

“The New York State Department of Health is committed to growing the state’s Medical Marijuana Program responsibly,” he said in the report, adding that the increased competition will reduce the cost of medical cannabis products in the state and increase variety of available products.

The new producers include Fiorello Pharmaceuticals, Citiva, Terradiol, PalliaTech NY, and Valley Agriceuticals.

Fiorello plans to dispense in Midtown Manhattan, Long Island, and upstate New York; Citiva is eyeing locations in Brooklyn, Staten Island, and upstate New York; Terradiol and PalliaTech plan to dispense in Queens; and Valley Agriceuticals is planning on setting up shop in Brooklyn.

If all 10 licensed operators in the state open their four allowed dispensaries, there would be 40 retail locations total statewide.

End

A long, dusty road in sunny South Dakota.

Typo Could Derail Legalization Effort in South Dakota

8/02/2017

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One sentence in the 11-page ballot initiative to legalize cannabis for adult use in South Dakota could doom the entire proposal, according to a CBS News report. The section legalizing paraphernalia addresses the laws of “the state or subdivision” (cities or counties); however, the section legalizing cannabis use doesn’t include “the state or,” just the laws of the subdivision.

The conclusion – that the measure would legalize paraphernalia state-wide but not adult cannabis use – was interpreted by the nonpartisan Legislative Research Council.

Melissa Mentele, director for advocacy group New Approach South Dakota, who are circulating the petitions, indicated the error could be fixed by the Legislature or the courts and she is “not concerned about it at all.”

“It’s just a typo,” she said in the report. “It’s one person’s perception of grammar versus another’s.”

Jason Hancock, Legislative Research Council director, disagrees. He said that the supporters could submit an amended proposal but that would void all existing signatures collected to put the issue to voters in 2018. Advocates must collect 14,000 signatures by November in order to be successful. If they have to submit a new proposal, it could take up to 90 days for the attorney general’s office to publish an explanation, which would make gathering the signatures impossible.

Jesse Kelley, a Marijuana Policy Project attorney who worked on the proposal, indicated that this is “not a new issue” for cannabis ballot measures, noting that in other states advocates have emerged from court victorious.

End

New Jersey Sen. Cory Booker Introduces Federal Cannabis Legalization Proposal

8/01/2017

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Sen. Cory Booker, a New Jersey Democrat and former mayor of Newark, introduced a proposal today that would legalize cannabis at the federal level and penalize states whose marijuana laws disproportionately target low-income and minority communities, according to a Politico report.

The Marijuana Justice Act, similar to other legalization bills that have been introduced at the federal level, would remove cannabis from the Controlled Substances Act.

The bill, however, goes much further than that. If passed, the proposal would take a number of steps towards righting the wrong of cannabis prohibition: states who choose to maintain the status quo would see some federal funds withheld, the proposal would expunge all federal cannabis arrests and grant prisoners currently imprisoned for a cannabis-related offense the right to a sentencing hearing, and would also establish a new Community Reinvestment Fund that would seek to help communities who have been disproportionately harmed by the enforcement of federal cannabis laws.

“You see these marijuana arrests happening so much in our country, targeting certain communities — poor communities, minority communities — targeting people with an illness,” Booker said during a Facebook Live announcement of his legislation.

https://www.facebook.com/corybooker/videos/10157111094132228/?hc_ref=ARRZw2ydVDlHqKr3P3O06zPsBZWa8lKXZuIWVMS0-BCzV2_0LS_9ITJartmub6QZkQM

 

The chances of Booker’s bill being passed this session are slim at best: the majority of the Republican-held Congress still opposes legalization and the Trump Administration has even threatened a crackdown enforcement of federal cannabis laws on state-legal programs. Nonetheless, the Marijuana Justice Act is the most comprehensive and cannabis-friendly legalization proposal ever to be introduced by a federal lawmaker and is a sign of the recent and massive change in the federal landscape for cannabis policy.

Eight states and the District of Columbia have legalized adult-use cannabis. In his announcement, Booker said that, “They’re actually seeing positive things coming out of that experience.”

Notably, Sen. Booker’s home state of New Jersey is not among those states and he has not officially endorsed legalization in his own state — though there are lawmakers poised to propose legalization at the state level following current Gov. Chris Christie’s departure from office.

End

Photo from outside the Ohio State Capitol Building in Columbus, Ohio.

Ohio Legislative Committee Passes MMJ Rules

8/01/2017

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The Ohio legislature’s Joint Committee on Agency Rule review has approved the rules for the state’s medical cannabis program one month before the statutory deadline, according to a Cleveland.com report. Under the rules, patients will have to pay a $50 registration fee annually and will be able to possess a 90-day supply, defined as up to 8 ounces of flower or products containing a comparable amount of THC.

Ohio is the first state to quantify limits this way, which equates to a patient purchasing 70 days’ worth of flower and 20 days’ worth of vape products or edibles. Patients can designate up to two caregivers to make purchases on their behalf and caregivers, who will pay a $25 fee per application, can serve up to two patients except in some situations set forth by the state Pharmacy Board such as hospice care.

The state Commerce Department will license up to 40 processors who will pay a $10,000 application fee and, if approved for a license, will pay another $90,000 and then $100,000 annually to renew. Sixty dispensaries will be approved, with applicants paying $5,000 and $70,000 bi-annually if approved.

Physicians in the state must take a two-hour continuing education course and register with the state in order to make medical cannabis recommendations to patients. They are also required to explain the benefits and risks associated with use.

Lawmakers passed the medical cannabis bill in May 2016, but it’s still expected to be more than a year before the state’s infrastructure is ready for patients.

End

An official NBA Spalding basketball sitting on some grass on a sunny day.

NBA Commissioner Defends Cannabis Ban, Cites State Law Discrepancies

8/01/2017

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In an interview with the Players’ Tribune, NBA commissioner Adam Silver indicated he doesn’t “see the need for any changes” in the league’s cannabis policy “right now” because of the patchwork of cannabis laws state-to-state throughout the U.S.

“…As you know, our players are constantly traveling, and it might be a bit of a trap to say we’re going to legalize it in these states, but no, it’s illegal in other states,” Silver said in the interview. “And then players get in a position where they’re traveling with marijuana, and we’re obviously getting into trouble.”

The NBA is home to eight teams in states with legalized adult cannabis use, including the Washington Wizards from Washington, D.C.; four teams hail from California, one from Colorado, one from Massachusetts, and one from Oregon.

While the league still suspends players for cannabis use, the ban is limited to five games. Earlier this year, Steve Kerr, the coach who last season led the Golden State Warriors to a championship — their second in three years — admitted to trying medical cannabis to ease chronic back pain; however, he said “it didn’t work” for him.

Kerr added that he believes “it’s only a matter of time” before medical cannabis is an accepted therapy in all of the major sports leagues because, eventually, “the education will overwhelm the perception.”

End

A security camera covered in mud and dirt, mounted on an overgrown outdoor wall.

Top Five Security & Surveillance Infractions for Cannabis Companies

8/01/2017

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Some of the most costly violations for marijuana businesses are related to inadequate security and surveillance systems in licensed marijuana operations. When violations or incidents occur with inventory, employees, or activities within the licensed premises, the first standard procedure is for regulatory authorities to review the surveillance system. Any issues related to the security and surveillance system are often found during reviews of other non-related infractions.

After more than 600 cannabis compliance inspections, here are the top infractions for security and surveillance observed via the Adherence SCORE App for cannabis compliance in 2017.

  1. The cameras do not have a clear, unobstructed view of all activity without sight blockage.
  2. All records applicable to the surveillance system are not maintained on the licensed premises.
  3. The licensee does not have a current list of authorized employees and service personnel who have access to the surveillance system.
  4. The licensee does not maintain a diagram of the surveillance camera locations, direction of coverage, and assigned camera numbers.
  5. The video surveillance system does not have an “active” notification system for interruptions and failures (cannot be email or web-based alerts)

Smart steps to ensure security compliance

All cameras in the facility should have a clear, unobstructed views of all activity. A good regulatory test for license owners or operators is to have an employee walk through the facility with an empty box. If during the walk through the employee and/or box are not visible on the surveillance system, then a violation can occur. As security and surveillance infractions are considered “public safety” issues, violations can be expensive and require administrative hearings with regulatory authorities. For owners, it’s best to avoid all types of violations and administrative actions to ensure the monetary value of the license itself is not diminished.

Another common infraction for security and surveillance is inadequate service and maintenance records maintained on-site. As the surveillance system is considered “evidentiary” in nature, all records must be maintained to ensure compliance. A surveillance log should include details on each occurrence of access to the DVR system, including maintenance and routine inspections. Surveillance systems should be contained in a securely locked room or cabinet and properly annotated on the diagrams of the licensed premises.

Often, the digital recording system of the DVR can fail without proper notice to the owner or operations manager. Cameras will appear “active” on the DVR monitoring system, but the hard drive behind the scenes may not be recording activity. Unless an alarming mechanism for these type of failures is “active,” i.e. a phone call or text message, it could be insufficient in terms of regulatory compliance. Passive alarms (email or web-based warning) are not considered compliant in most states or jurisdictions.

Keep any area where cannabis inventory may be prepped, processed, or transported under strict security surveillance. Photo Credit: Sarah Climaco

As inventory is considered ‘chain-of-custody’ in most states, a secure, fully functional security and surveillance system needs to be in place, as well as routinely reviewed and inspected. Any areas of the facility that prep, process, weigh, package, or initiate transport or receipt of product should be under video surveillance. This will ensure any and all operational issues (missing inventory, theft, workplace injury, etc.) are recorded and can be reviewed as required by authorities. Failure to properly record operational infractions can lead to additional fines, criminal or civil penalties, probation and/or license revocation.

Best practices for marijuana businesses are to ensure:

  • Your security and surveillance provider has an in-depth service level agreement (SLA).
  • The facility diagram includes a map of cameras, with camera numbers and line of sight.
  • Time and date stamps are accurate on each DVR system and all cameras are operational.
  • The DVR system is locked and secured with a detailed access and maintenance log history.
  • A list of approved stakeholders who can access the DVR system is available at the facility.

Note: This article was co-authored by Steven Owens. Steven Owens is the CEO of Adherence Compliance. He has more than 15 years of software and executive management experience working for leading technology firms such as Oracle and Alcatel Lucent.

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Cannabis News & Information

Poll: Utah Citizens Overwhelmingly Back Medical Cannabis Legalization

8/01/2017

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A supermajority of Utah citizens – 78 percent – support the medical cannabis ballot initiative being circulated by advocates in the state, according to a Dan Jones & Associates poll commissioned by the Salt Lake Tribune and the Hinckley Institute of Politics. The campaign is headed by the Utah Patients Coalition who need to collect 11,143 valid signatures by registered voters by April 15 in order to put the issue to voters in November 2018.

The poll, which surveyed 605 Utah voters, found the issue has the support of 97 percent of Democrats and 65 percent of Republicans in the state. Advocates can count Jon Huntsman Sr. among those supporters – the philanthropist and father of former Utah governor Jon Huntsman last month threw his support behind the measure.

“If medical marijuana was known by another name, it would have been utilized as a pain medication many years ago,” he told the Salt Lake Tribune. “From national research and understanding, the side effects of medical marijuana are considerably less than virtually all opioids and therefore less destructive to the body.”

The supermajority is nearly 25 percentage points higher than a January poll commissioned by Tribune-Hinckley, which found 54 percent supported medical cannabis.

Despite the public support, state Rep. Brad Daw believes that the initiative in its current form is too broad and that once voters see what’s in the initiative “they will pull back,” although he admitted that the poll results don’t surprise him because he has seen similar levels of support among his constituents, according to a Tribune report.

In Utah, patients with severe epilepsy are currently able to acquire hemp extract registration cards that allow them to import whole-plant CBD oil from states with medical cannabis programs. According to the report, from July 2014 to October 2016 just 166 such cards were issued.

This past week, the coalition held 10 public meetings on the issue as required by law to advance a ballot initiative. The measure would allow individuals suffering from cancer, multiple sclerosis, autism, chronic pain, post-traumatic stress disorder, and Alzheimer’s disease to access the program.

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