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Hemp Oil Regulations Are More Complicated Than You Might Think

4/11/2017

Legal cannabis sales in the U.S. last year reached $6.7 billion, a growth of 30 percent, according to an ArcView Group market research report outlined by the International Business Times. The growth is faster than the dot-com boom of 2000.

However, most of those jumping in are doing so without first seeking competent cannabis counsel, without understanding the cannabis laws, without understanding the FDA laws, without understanding their State’s Health and Food Safety Laws and blindly following the industry’s norm as if some actually knew what they were doing or talking about. You might not realize it immediately, but you may have jumped into a tar pit disguised as a beautiful blue swimming hole. With any good business must first come a great lawyer.

Did you know that you are responsible for verifying that the CBD or the hemp oil product being purchased comes from a licensed source? Yes, the supplier must be properly licensed through their state’s department of agriculture or cannabis department, but it doesn’t end there. Next, you must ascertain whether or not the state where this supplier is registered allows for the commercial sale and transport of the product being sold.

Don’t be fooled: many states do not permit this and you shouldn’t take a supplier’s word as gospel, not when the penalties can be criminal. It is not enough if you or someone you know have simply received hemp products, as ignorance to the law is not an exception. You are also responsible for knowing and obtaining a certified lab report as to the product’s content and THC percentage levels; you must also know if the state in question allows for any percentage of THC within the hemp product you are selling or receiving. There are differences between what the federal law permits and what the many varying state narcotics laws allow. For instance, the State of Texas has a zero tolerance for THC — no level is permissible, not even 0.001%. You don’t want to be confused on issues concerning controlled substances.

If you are purchasing CBD or hemp oil in food products, did you know that you should verify that the manufacturer is either properly registered with the FDA or exempt? That’s per 21 U.S.C. §350d, the Registration of Food Facilities (a) Registration.

Meanwhile, as per food and drug definitions under 21 U.S.C. § 321(f):

The term “food” means (1) articles used for food or drink for man or other animals, (2) chewing gum, and (3) articles used for components of any such article. (g)(1) The term “drug” means (A) articles recognized in the official United States Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (B) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (C) articles (other than food) intended to affect the structure or any function of the body of man or other animals; and (D) articles intended for use as a component of any article specified in clause (A), (B), or (C).

In the current market, CBD and certain hemp oils may qualify within 21 U.S.C. § 321(f) & (g) and unless you are in a properly situated chain of custody you might be selling “adulterated” goods.

§342, regarding “adulterated food,” applies to much more than tampered-with, poisonous or manipulated foods. Instances such as re-packaging, open containers, storage, food additives, food colors, and even non-nutritional additives apply. If the chain of custody from supply to packaging is not properly lined up with licenses, permits, and certificates, the product you just bought to re-sell may be deemed lawfully adulterated — and you, a cog in the impermissible wheel.

A collection of freshly harvested hemp seeds. *Photo Credit: Esteban Lopez*

Then, there are issues with the labeling of products. 21 U.S.C. § 321(k) discusses product labeling. This section discusses the laws for not only what must go on the label but what cannot be omitted, misrepresented, misleading or misbranded. Are you selling a product to be ingested by a person or animal and failing to list all of the warnings, precautions, or suggest calling 911 if adverse effects appear? Are you warning people not to ingest if taking with grapefruit or if they have certain medical conditions? Are you informing about dosages and listing product ingredients? Are you failing to inform people that this product contains — even trace amounts — of THC or is derived from a product containing THC?

The list goes on and on.

The FDA has further determined that products containing CBD cannot be sold or misrepresented as a dietary supplement and are excluded from the dietary supplement definition in the Federal Food, Drug, and Cosmetic Act. For more information, see the September 30, 2015 Q&A, “FDA and Marijuana: Questions and Answers.”

The FDA has also ruled that claims of health benefits, medicine, medical effects cannot be labeled or advertised and in fact a disclaimer must be applied on all packaging, marketing, and advertisements.

Putting yourself out in the industry also means that you should look into the issues of insurance, product liability, legal compliance, banking, and merchant services. As was recently witnessed in Oregon and California, there might be issues with third-party vendors selling product that contains improper pesticides; the liability can be civilly shared within all cogs in the wheel.

In conclusion, it’s enlightening that so many ganjapreneurs are eager and entering the industry. However, with this opportunity comes real and legal responsibilities. Failure to retain proper and knowledgeable legal counsel might cost you more than what you bargained for. Stay safe by compliance and make sure you have first quality representation.

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Inside of the Montana State Legislature in Helena, Montana.

Montana House Passes Amendments to Voter-Backed MMJ Law

4/11/2017

by TG Branfalt

Montana’s House Taxation Committee added 20 amendments to a medical cannabis bill before it passed the chamber and moved to the Senate, including changes to the taxation structure, testing provisions, and residency requirements, the Bozeman Daily Chronicle reports. The amendments to SB.333, which affect the initiative approved by voters last November, passed the committee 14-6.

The committee changed language that would have imposed a 4 percent tax on gross receipts in 2018 and 2 percent in 2019 for medical cannabis providers with a plan that would see providers charged a $25 fee per cardholder or $100 per year. According to House Taxation Committee Chairman Jeff Essman, the state could adjust that fee depending on the need to cover regulation costs and maintain a reserve fund.

Democratic Rep. Mary Ann Dunwell said the change creates “inequity” in the industry compared to more traditional businesses.

“We don’t require CVS or any other pharmacy to pay a fee per customer so there’s inequity there,” she said in the report. “These are patients that we’re serving. They’re not head of cattle, for example, where a stockgrower is charged a per-capita fee for each head of cattle.”

Another change would allow smaller medical cannabis providers to forgo laboratory testing for up to three years, which Rep. Greg Hertz said would prevent “an undue burden on small providers in small communities.” Larger providers would be required to test their products as soon as the new regime is codified.

The residency changes require that providers be residents of Montana for three years; previous versions of the bill would have required residency requirements of either one or four years. The provision sunsets on July 1, 2020.

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Spark the Conversation: Jerred Kiloh, The Higher Path

4/10/2017

by Bianca Green

Jerred Kiloh is president of the United Cannabis Business Association and owner of The Higher Path, an award-winning medical cannabis dispensary in Los Angeles. In this episode of the Spark the Conversation podcast, host Bianca Green interviews Jerred about creating one of the region’s best-known and most-loved dispensaries.

In the following interview, Jerred shares his own strategies for running a dispensary, which include an emphasis on employee fulfillment & retention, as well as community involvement and making sure that patients feel safe and comfortable during their visit. The two discuss best business practices for the cannabis industry — and according to Jerred, you have to choose the cannabis industry for more than just monetary reasons if you want to truly be successful.

You can listen to the podcast below, or scroll down to read a full transcript of the interview.

Subscribe to the Ganjapreneur podcast on iTunes, Stitcher, SoundCloud or Google Play.

Listen to the podcast:

Read the transcript:

Bianca Green: Welcome to the Spark the Conversation podcast in partnership with Ganjapreneur.com. I am your host, Bianca Green. Thank you so much for tuning in and listening to some people drop knowledge here today. I’ve got Jerred from the Higher Path Collective in Studio City, California. Jerred is the UCBA trade Association president, as well as the owner of the Higher Path. The UCBA is a trade association that is a group of pre-ICO collectives in Los Angeles working together to bring awareness and increase the knowledge of the cannabis industry to policymakers and residents throughout California.

Jerred was recently introduced to me by a friend of mine that I know from high school, and came on board to be a sponsor on our bus tour in November, and it’s been really nice to get to know Jerred, because not only is he talking with us today about the trials and tribulations of being a business owner, and owning a dispensary in California, Southern California specifically, but the path that he, as the president of the Association, is looking to set forth for the future of cannabis industry professionals, and why he staffs his staff the way he does. It’s a very interesting conversation that we have, and thanks for tuning in.

Hi, this is Bianca. I’m here with Jerred at the Higher Path in Sherman Oaks today. Thank you so much for being here.

Jerred Kiloh: I really appreciate it. Thank you, Bianca, I appreciate the invitation.

Bianca Green: It’s crazy how many laws are coming into effect right now, and people coming out of the shadows and into the light is the most important thing. Even spending time up in the Emerald Triangle at the beginning of this tour, everyone’s like, I can tell that there is a feeling like we came to the line too late, and now we’re fighting because we don’t like this initiative, and I hear that. Even when they had the opportunity to fight all year against it and be very vocal about it, nobody has done that.

Jerred Kiloh: Yeah. Right now it’s like, yes, nothing’s going to be perfect ever. There’s too much special interests that go into every initiative that ever gets written, because you don’t write it in a vacuum. There’s people who are trying to get their own self interests as part of that, it’s like you can’t get away from it, and someone’s going to be harmed by a law. It’s not like, oh, a law happens and everyone’s happy. That’s not really a law. That’s a free-for-all.

Yeah, it’s sad, but this is great for getting people out of prison. If nothing else, like who cares about the rest of it then. We’ll work through the rest of it. I think the problem is is a lot of people who have been in this industry this long are really trying to protect what they’ve built, but when it comes down to patient access and what’s best for the community, sometimes we have to go, “Well, this is what every business goes through. We go through these ebbs and flows, we go through different regulations, and we have to adapt.”

As growers who have been here and done this for this long, we’re going to have to adapt. That’s what every business goes through. And it’s sad, because as a cultivator, I know that my job is going to be way more difficult. It’s definitely going to increase costs, and those costs are going to be passed on to the patient. That’s the worst part of this, but hopefully we find a middle ground and have common profit margins.

Bianca Green: Yeah, I was just going to say, do you think it’ll come down in the profit margins, just being more like a regular commodity like a profit margin on a shoe? Because right now they’re big margins.

Jerred Kiloh: Not here. With the amount of taxes we have, it’s like even though we see like 200 patients a day, we still are at a breakeven. With the amount of taxes, and I have 26 employees, and the reason why I have 26 employees is so that I can give you what you need in the way of social media, and attention. Someone’s there for your attention. A lot of other collectives don’t do that. They save money and that, but I think they’re missing out on, how are they going to do outreach? That’s expensive. I have an extra, probably, 12 employees that go above and beyond just the inner workings of the business. It really goes into, how do I expand recognition of this industry, and how do I put a good foot forward for the rest of the people that kinda see, this is an example of how to run a business.

Bianca Green: How did you get into this business table?

Jerred Kiloh: Really just where it squirts water on the roots, and it was like one of the first hydroponic style of growing. He just gave me the table, and gave me the light, and I cleared some space underneath my stairs in San Francisco, and through one light in and one little table, and then started building cabinets so I could do cloning, and do a little bit of vegging. I did it for a little while, and then I saw that it paid my rent, and I was like, “Oh, this is kind of nice.” Then I was like, “Wow, well, what else could I do?” As I slowly expanded, I found a collective that would take my product in San Francisco, and so we had a really good relationship, but I only was producing like one and a half pounds, or two pounds every three months.

That’s pretty much how I got started, and I think the main part was I always told myself, it’s like, I’m too educated to be a drug dealer. If I can’t do this legal, I will do something else, because I really need to forge really good policy, and I need to feel like I am providing for my family, my friends, and my employees. Not in a risky sort of way, but in a way that they feel empowered. That was a really big part of how I got started was, how do I empower this industry legally as much as I can? Yeah, it took that first illegal couple of pounds that I grew, which since I gave it to a dispensary, I guess it really wasn’t illegal, but it took those first couple. Then it expands from there. As I expanded, then I found other dispensaries. There was one dispensary in particular, the Green Cross, that now I’ve been working with and been a part of for over 14 years.

Bianca Green: And that’s up in the Bay Area?

Jerred Kiloh: Yeah.

Bianca Green: Yeah.

Jerred Kiloh: Did a lot with project management, did a lot with business structure, did a lot with acquisition of property, and legal, and Kevin, the president, almost died when it came to, he was immersed in the business. He lived in the dispensary. So much so that he was a part of every aspect of it. It was really just, every employee, everything that came in and out of that place, he just had his fingers in everything. He was so engrossed in it that it really showed, he showed me how much you really can jump into an industry, and give it all of your heart. I think for me, it’s like I do a lot of other industries other than marijuana, so I’m fairly diversified. I really do like to see people who are strict in what their goals and dreams are, and really shoot for those.

Bianca Green: How did you come down to Los Angeles?

Jerred Kiloh: I had some friends about nine years ago who were opening a dispensary, and so I helped fund the opening of the dispensary, supply them with product. Since I had really good connections up north because of the other collective I’ve been running, and all of a lot of my friends up there were growers. It was my way of giving my friends who were growers access to distribution. So for nine years I’d been in L.A. but the ebb and flow of L.A. has been like, okay, you start a collective, they change the laws, you have to close your collective, you lose all your patient base, and you have to start over. It got to be that roller coaster was so expensive that running a dispensary in LA became a net zero. That net zero became harder and harder as someone who wanted to provide for patients. Been here for nine years, but when prop D was coming around, I started coming back, because I finally started to see a real-

Bianca Green: Talk a little bit about prop D. Tell us what prop D was.

Jerred Kiloh: Prop D was the fifth amendment that was brought to Los Angeles in a way to regulate this industry. It was three years ago, and it was put on the voter ballot. It was the first proposition that I think that the state had voted on, have as a proposition as a municipality to regulate the industry. Prop D gave a limited immunity, which means you have immunity from prosecution locally. Wasn’t giving a license or a permit, but it was saying, “Well, license or permit doesn’t really do anything anyway.” They were trying to get underneath the federal radar of giving a permit to someone to grow a schedule one narcotic. That was the negotiation we all went through in Los Angeles, but that gave 134 dispensaries who had followed all the four previous laws that had been enacted, the right to continue to operate, kind of in a grandfather clause. Those 135 now have been operated since-

Bianca Green: Is there a timeline that they had to have been operating for them to get it?

Jerred Kiloh: Yeah. Since 2007 was really when it started, so if you had been in operations 2007, filled out all the paperwork, paid all of your taxes, and did all the things the city had asked you to do for those seven, or I guess it was six years at that point. If you were a good player for six years, then you were given the right to be prop D. That’s where the pre-ICO, which is an intern control ordinance, which says, “We are going to create a law, but until we create a law, we’re going to give this ordinance that gives you some room to operate as a dispensary until our law is enacted,” and Prop D was negotiated out.

Because there was prop E, F, and D that went on the ballot all in that same year, and prop D was the one the city Council had pushed forward, that’s the one that ended up winning over the course of … I think it got 63% of the vote, which is more than the mayor at the time.

Bianca Green: Whoa.

Jerred Kiloh: It really was at this high acceptance rate to have this limited number, because there had been so many illegal shops, or shops operating outside of any good business practices.

Bianca Green: When did that happen? I remember a bunch of shops opening, and there was, up in press release, about there were more Starbucks, I mean more dispensaries in Los Angeles than Starbucks. What do you think prompted that?

Jerred Kiloh: Well, because there was no enforcement. Because the laws were somewhat murky. Because it was hard to tell where they were, were they legal, were they not? How long had they been there? Honestly, it does come down to the police having an incentive when it comes to asset forfeiture, which is also part of it. It’s like, if you can quasi regulate what is quasi legal, then please have the opportunity to have asset forfeitures, and that really does help their budget. They wanted to enforce it in a systematic way that kept enough shops open, but was closing enough shops to continue to, I guess, help their bottom line.

That’s just how asset forfeitures work. In California, we really do need to take away that incentive of asset forfeitures. With close to 1200 shops that were open at that time, yeah, they had to be reined in. That’s where prop D came in. It was an outcry from the city Council and from neighborhoods that are like, “Well, they’re just popping up everywhere. Who’s regulating this?” It’s just the regulations were really murky, prop D was an effort to try to make it a little more clear.

Bianca Green: Yeah, there was a time where, even on the Venice Boardwalk you could go and just, there was a lot of dispensaries that were open, and doctors that had come up that didn’t seem like very legitimate businesses. I think it gave a bad rap to what the medical marijuana industry was trying to do for a while here in Los Angeles.

Jerred Kiloh: Oh, yeah. To hide behind the guise of medicine was what brought the illegitimate side of this industry, and why we’re so looked at as like, okay, these are just profiteering people. Yeah, it tainted the movement when it really was to get patients access. In a lot of ways, patients are the people who have insomnia who can’t sleep and use it. There’s plenty of people who drink two glasses of wine to go to bed, like who’s to say it’s not a patient to take a small hit of marijuana to go to sleep too? I think that’s where a lot of these pot doctors are saying, “Well, if it works for you, how am I supposed to tell you to do something different?”

I think that’s where everyone kind of was a patient, and that got expanded into, now, if everyone’s a patient, well then, I need it because I want to go watch TV. It’s more fun to watch TV high. It’s like, well, okay it degraded from there, but I think it really was a difficult time to see that many doctors move into the area, just pass out prescriptions without any physical, or any sort of psychological evaluation to see how they would be able to accept a psychoactive drug.

Bianca Green: I feel like the people, the consumers started to become more advocates, and started explaining their own personal experiences, which really helped. People started coming out that they replaced a lot of pharmaceuticals with cannabis, and even realizing that made a lot of the, quote unquote, recreational users look at their cannabis consumption as more of a wellness component to their lifestyle. What do you think the future is? Do you think medical will stay in place, and recreational, and they’ll be separate? Or do you think that it’ll fall under more of a wellness product?

Jerred Kiloh: I think it will be more of a wellness product. As we do more studies, and do double-blind tests, and go through what, I guess, is the established way of deciding FDA approval, and the way of establishing how this works for different diseases, we will be able to target diseases, but there’ll still be that aspect of, can I really calm down with this? Is this really a way for me to reduce stress, reduce anxiety? That is a wellness side of things. You look at CBD, CBD’s really do help the homeostasis inside your body. It is a wellness drug at this point. It will be a huge overlap, because wellness does help your health.

They’re so intertwined that to separate them will be difficult, but I think as we do separate them so that we can target certain diseases, get ratios that are very specific, and make people aware that these are the prescribed ways of taking this for this particular disease. I think that is going to be one aspect of the industry, and the rest of the industry will really be about what works well for your body, how do you feel after you’re done using it? How much better are you now in health and wellness by taking it? You can, as an individual, and hopefully in concert with your primary care physician, find a true way of using the cannabis for disease prevention, and also using it for the wellness side.

Bianca Green: Where do you see your business going under that theme? Because right now the collectives are for patients. Once and if, I should say if, legalization happens this year, how does that change the dispensing of it?

Jerred Kiloh: We really do emphasize the wellness of it. When I started this collective, I felt like there was an underserved market of females who felt a little bit sketchy going into some of the dispensaries, and also the openness that was needed for an older demographic to feel comfortable inside of this community. When I started this, my initial patient base was 20% female. Now we’re to 60%, because I catered to that demographic trying to lead a safe, educated place where other females were there who were caregivers.

It’s not just females, it’s the feminine side of anybody’s personality that wants to be that caregiver and give, and when you give, the reception that you get in return, like the reward that you get in return for helping someone is also part of the benefit of working at a collective that really does things on a medical base. Because people walk in and go, “I have not felt this good in 20 years. I’ve dealt with these addictions to opiates for this long, it’s the first time I’ve been able to kick this habit.” Or, “Wow, this is my last resort. I’ve gone through $300,000 in debt to get rid of my cancer, and now this is my last resort. What can you do for me?” Those are the rewards we have here, and I really don’t think that I want to change that model, because those rewards are far better than someone who come in here and go, “Wow, I got so high last night. That was great.” That’s exciting for a second.

Bianca Green: Then make everything that you do that challenges you to create a business here, and be able to dispense a product probably worth it.

Jerred Kiloh: Yeah. It gives the people who work here a purpose. That purpose is greater than just themselves. Sometimes when you’re just a bartender, it’s great. You get this interpersonal connection. Let me get rid of this …

Bianca Green: Yeah, no, I get that. Sometimes when I’m volunteering, even on this tour, it’s like, “Ugh.” Then you just think about the patients, and the people that it’s helping, and the more access that people have to the plant, I feel, the better.

Jerred Kiloh: Yeah. Right now, access to the plant is definitely here. It’s access to the education, and access to someone who can personalize that education to what your individual needs are, and that’s what we do different here. There is a reason why I have an extra three or four employees here every day than I really need to operate this shop. It’s so that I can give you an hour of my time as an individual so that I can ask, “What are your needs? What are your symptoms? Have you tried anything in this industry before? Here’s what we can try to get you on a foundation, and here’s what we’re trying to build towards.” That education changes the way not only they view this product, but the way that they view their own wellness, and how they need to take responsibility for how they’re going to be healthy.

Because here is a foundation for you to build on, I need your input, I need your temperament, what you’re feeling about it. I need all of that so I can build a better product for you individually. I think the reason why we were voted best in Los Angeles for 2016 was because of that very personal connection that we have. We know people’s names. Not just because we ask them, but it’s because we ask them what their name is, we ask them what their ailments are, and because we really want to help them, we take that in as a memory. It’s like we remember who you are and why you were here. That’s the true difference. That’s why I have the same six employees that I started with.

My original six employees are still here after 3 ½ years. In an industry that has the kind of turnover that this does, it feels really good for me to be an owner, and someone who’s managed these people to feel like they are giving back to the community in such a way that the reward system is so much greater than just money. When people go home and tell their roommates, and tell their friends what they did today, that changes how you view coming to work. People come to work happy, and they leave happy. That is a totally different way of seeing work. When the rewards are here at work, it changes the way people view what is considered work. They get paid to come here and help people, and that is something that’s really rewarding.

Bianca Green: That’s really a great foundation to have a business. Tell me, what advice would you give some of the Ganjapreneurs trying to get into the industry?

Jerred Kiloh: I think what it is is it’s a fairly saturated market right now. It’s going to take capital to get into this market now, because permitting is going to be expensive. The amount of inventory you need is expensive. Capital is going to be a big part of it. If you do know how to run a regular business that does give you some advantages, but it doesn’t tell you how to provide for patients. You need to go and get educated about the plant, educated about diseases, educated about that, because that is truly where you can continue to be an outlier in the industry, because the industry is growing towards pure education, pure medicine, pure stuff, that pure idea of, how do we help people? I still think there’s a lot of room for new entrepreneurs in this industry. There is a real space for that still.

Bianca Green: I think, too, that like Bob Marley says, the plant reveals you to yourself. I think when people are patients right now, it allows them the opportunity to have access and figure out how they can actually help the plant. I feel like a lot of people that have been embedded in this industry have a real relationship with the plant, and not just the business side of it. Which I see a lot of new entrepreneurs coming in that are a little bit more focused on the business, and the money aspect. A lot of people who have been pioneers really have a different relationship with it. Tell me what your relationship with the plant is.

Jerred Kiloh: Well, for me, I had insomnia, and so it was like I didn’t know how to fall asleep. I didn’t use it recreationally at first, because I didn’t really have access to it as a kid. Then once I was in high school, I had access to it, and I think we tried it a couple of times in that recreational sort of way, but then it made me tired all the time. Then you put those two pieces together that I could use it to get tired. It did become a tool for me. Since then, I have grown it for 17 years, and I have been an advocate for this for 17 years. I’ve definitely worked on the political side of it in San Francisco for a long time, sat on the medical marijuana task force there, and helped write regulations for San Francisco eight years ago. Really have been an advocate.

These are unpaid positions. These are hours and times that we go through because we want to make sure people have access. It’s not just access, it’s access to good medicine with good education. Because those have to go together. Because just access to it is not enough. Because then you don’t know how to use it, when to use it, and what’s the best one to use. That was really important for me to make sure that that access was there to that education side of it. Writing good policy and procedures for cultivators was important, because I knew a lot about the construction industry. It was like we need to make sure our electrical is right so that we don’t create fires, and we don’t create hazards for our neighbors, and so that we can be good business people inside of our own community. What can you spray on your plants to keep pests away without harming each other?

That was a really big part of how, when we were creating the regulations in San Francisco, that was our main focus. We knew marijuana was there. We knew that dispensaries were there, but what were we going to do to make sure that there was a clear line between a good business, and one that was really just trying to profiteer. That was really big for me. Being in the politics side for this long, I think that it really was the connection to the plant, and then the ability to educate people was where I felt like I had an advantage. Because I can articulate myself about the biology, and the physiological effects of the plant to someone so that they can look internally and say, “Why would I use this? What does that mean to me?” When you bring meaning to the plant, like how you have that personal relationship with it, and how you use it as a tool, that’s when you do become a lover of it, because you know how to use it right.

Some of the new entrepreneurs who are coming in, they need to find the people who have that connection to the plant. They need to partner up, because without the soul that comes along with this industry, really, all we are is a commodity, and it’s we’re not just a commodity, we’re a service and we’re a commodity. We need to combine those two together, and if we don’t combine the service and education with the business side of it, then I think we’re missing out on why we even did this from the very beginning.

Bianca Green: Is that what led you to UCBA? You’re the president of UCBA, correct?

Jerred Kiloh: Yeah.

Bianca Green: Tell me a little bit about how that manifested.

Jerred Kiloh: When I came to Los Angeles, I was like, I am fresh out of San Francisco. We have a great regulatory system. Our city is backing us, Gavin Newson, like really supported our industry in that time, and then subsequent governors also backed our industry because it was well-run and well-regulated. I come to Los Angeles, love the prop D thinking this is going to be the end of the proliferation of illegal shops, and it wasn’t. Since that proliferation just kept happening, and no one was really doing anything to change it, UCBA popped out out of the vacuum that was created by no one really trying to change the politics, the enforcement, the regulation side of it. Everyone was just trying to use prop D as a way to just open a business. Because oh, look, Los Angeles made it legal. Even though there’s only supposed to be 135, there was thousands.

UCBA came and said, “We need to be the business people. We need to write a regulation. We need to make sure the city understands what our industry needs and what we want, and we need to push them to write good legislation.” Because that’s what it took in San Francisco, and that’s what it takes in almost every municipality. It’s like it takes educating them, making it a priority to them. Because politicians have a lot of priorities, and unless you make this a priority, then they’re going to fall to whoever the squeaky wheel is. Yeah, we’ve had to be the squeaky wheel. UCBA stepped up and said, “We’re going to work hand-in-hand with the city Council.” City Council and us were working hand-in-hand for well over nine months, telling them what our industry needed, them telling us what they didn’t want from the industry, and how they were scared about having too many dispensaries, or what the proliferation might look like.

Our ordinance was written with the understanding of what the city wanted. Yes, what the city wanted has changed, because the industry has changed. The knowledge has changed. Their priority to now look at this industry differently has changed. Our ordinance looks like somewhat archaic, because so much has changed in three or four months. We wrote this five months ago. Yeah. What our ordinance really did was give the power to the city Council to make all the adjustments it needed. Instead of having to go back to the voters, which prop D was making us do. That’s why we had to make an ordinance, because the only way to supersede an old proposition is with another voter proposition ordinance. We felt like, yeah, we were going to take the risk. We were going to push city Council to make marijuana a priority, because prop 64 was coming. MRSA was already here, and these are the things that we needed. We’re like, “This is going to be huge, and if we can do it for the city, we can really create a lot of tax revenue.”

We were born out of the vacuum that was needed to have professionals who were willing to put money into legal documents, to put it on the ballot, to get voters to sign. It really was that kind of creation, and in that now we have put the fire to the feet of city Council to do something. We’ve been supportive of them from the very beginning. Like, I’m not egotistical enough to believe that I need my name on an ordinance that gets tax dollars for Los Angeles. I just want to protect this industry, and until someone says, “Someone needs to be legal in Los Angeles for us to really have a fully functional marijuana industry.” Someone needs to be legal. We need to pressure them to make these commitments to permitting, to zoning, to — they have to make the regulations.

That’s what they’ve been tasked to do now. They’ve been forced, and I think we’re getting a little backlash from the city Council on our ordinance, because we’re forcing them to do something. No one wants to be forced to do anything. In this industry, we’ve had to force every municipality to listen to us, do things for our industry, and do what’s right for what is a huge industry in California. We’ve always had to push. Historically, that’s what we’ve had to do. This is no different. Even though now it looks like the writing’s on the wall for legality, you still need to push. Because even now they still haven’t created any sort of regulatory system from the city, and they have until November 9 to do it for the March ballot. Well, they’re just now talking about it last week.

Bianca Green: Wow. It’s today November 2.

Jerred Kiloh: Yeah. They only have six more days to put something on the ballot to either complement our ordinance, or to compete with it. Really, we don’t want to compete with the city. We want the city to have good regulations. I would love to pull our ordinance and say, “The city what you’ve created is way better than what we came up with, because you were taking all of your constituents into account.” We took a small subsection of dispensary owners and said, “This is what we need as dispensary owners, and this is what we think will empower you to regulate the rest of the industry.”

That’s what our ordinance stands for. The ordinance really stands for, you got to do something. Because no, you don’t want to have a trade association come in here and bring in like $20 million in tax revenue, you want the city to write an ordinance so that they can take credit, and allocate the taxes the best way for the city. They need to take that. It was pressuring them to do what was right, which is for the city Council to really write good regulation. That’s what we started with, and our whole goal was to pressure them. That’s what we’ve done. It cost us a lot. In the end, we’ll probably get little or no credit for it, but that doesn’t really matter. If the industry moves in a good place, that was our intention.

Bianca Green: Well, that’s a positive way to perceive and be a part of your industry and community. My last question would be, how does the higher path contribute back to the community? You’ve nailed it in so many different ways, just the time that you donate, and the energy that you donate, not only to helping patients have safe access, but your some would call competitors having the opportunity to have legal businesses. Your community being able to run like a business, I applaud you for that. Tell me what Higher Path’s goals are, other than the advocacy that obviously goes along with UCBA, and your personal advocacy, what are the other things that Higher Path is getting involved with with community outreach, and giving back from a social responsibility perspective?

Jerred Kiloh: Yeah, we’re the first and only collective that’s a part of the Chamber of Commerce here in Los Angeles. Connecting our industry to local business, and local businesses, and their advocacy groups is really important for me. Because we’re no different when it comes to another business. I wanted to take the stigma away of, we’re this outsider. I wanted to come in and let other businesses know that, guess what? I pay all my taxes. I have Workmen’s Comp. insurance. I have general liability. I even have marijuana insurance. That was a big part of the communication between the Chamber of Commerce. We’re also a member of the Sherman Oaks Homeowners Association, we’re a member of VIKO which is a valley industry group of business owners.

We help Women Grow, which is an advocacy group to make sure that women are empowered in this industry. Because they’re under-served, and we donate a lot to food drives, can drives. We’ve done socks. We do all of these advocacy groups. We had a veteran’s month where any veteran who came in here would get about a $200 pack of CBDs when it came to educating them about how it helps with their PTSD, how it could help with phantom pains from lost limbs, and anxiety. We, in conjunction with other distributors, vendors, we said, “Well, if you can donate some products, we’ll pay for some.” It was a concerted effort to find, how can we, as a community, come together and help this ailing subsection of our community in the way of veterans.

Bianca Green: That really can’t even afford this medicine.

Jerred Kiloh: No. We helped with Weed for Warriors, which is a really good advocacy group. We were one of the people who really helped them here. In that, we do a different theme of every month, so that we really focus on different parts of maybe the community, or the outreach. One of our months was for veterans. Another one was for homeless. We’ve done things on just music, and the appreciation of music. It’s like, it’s nice to really dive into the community, but it’s also nice to dive into the other ways, lifestyle ways, so that we’re not just perceived as playing video games and getting high, it really is nice to go and listen to a band while high. It does heighten your senses. It does give you that personal connection.

There is a lot of ways that you can help your community. Right now, I’m more known in this community as a business owner than other businesses know each other. They all know me, but they don’t know each other. Because I walk around and tell them what I’m doing. I’ve asked if we wanted to pitch in and have a security company patrol our back alley, and we could all pull our money together, that would be much cheaper. Because the watch store got broken into, which is right down the street, the drycleaners got broken into. There was this string of thefts and break-ins that were happening, and they all came in from our back alley. It was like, “Well, what can we do as a community to lower our cost, but also make us connected in the way that we support each other in security, and in business?”

I give everyone in this neighborhood, if they’re within a mile radius and they have, and they work anywhere in this mile radius, that they get a discount at the shop. I’m trying to give back to the people who definitely work here, because a lot of times, they might have to commute to this area. To keep those tax dollars right here, I have art at the front. We’ve sold over $30,000 in art from our front lobby. Those are all local artists. We have a comedy show the last Tuesday of every month. Those are local comedians who come here and get a chance to try out their … We have bands who come who are just local bands who get to play in our lobby. We really do try to give the community of arts, and people who are somewhat disenfranchised, yeah, we try to give them access, and we tried to give them a space to show their art, or music. It feels really good.

Bianca Green: That’s wonderful.

Jerred Kiloh: One time a woman, who walked by and sprayed paint on all the dispensaries on Ventura Boulevard. We had a 75-year-old veteran who saw that she poured paint on the front of our building, and so he went to Home Depot, bought brushes, bought paint thinner, and sat outside for about six hours. I was like, “Please, I don’t want you to do this.” He’s like, “This is the way that I get to give back to you with how much you’ve given to me.” He was like, “I want to do this for you.” He’s like, “This is the best way that I can say thank you.” Yeah, he was out there for six hours scrubbing paint, and I felt really guilty, but being I’m not a good receiver, so this is a time when I just said, “I need to receive in this place where he wants to give, so he gets the reward of giving back to us.”

Knowing how many veterans and people come and try to protect our space, it’s one of the reasons why, when people come here, they see it’s such a good feeling. Because most of the people who come here, they come here because they love the fact that we’ve given them the respect that they deserve to come here, not feel guilty about buying a product that is maybe recreational, maybe medicinal. We’re not judging you. You use it the way you want to, and they get a lot of education for it.

Bianca Green: That’s a really important thing. Tell everybody where this is. Tell us where we can find you, Jerred, and the Higher Path.

Jerred Kiloh: Sure. TheHigherPath.com is a good place to start. We’re in Sherman Oaks. We’re at 14080 Ventura Boulevard. I think being a good player in Los Angeles, and showing people that this is the way you can do business, I post my taxes on the front of my window in a laminated picture so that everyone can see what I give away in donations, what I pay in taxes. So that people know that, you know what? I am giving back to my community. Not just in taxes, not just in donations, but in the education and structure that we have for this business. I think a lot of this community, since I have one of the higher retention rates in my industry, once they come here, they don’t really want to go anywhere else. Because there is respect here.

That is a big part of this industry is like, we’ve respected each other in the land in the cultivation side of it that somewhat got lost in the dispensary model. Especially in Los Angeles when there is a proliferation of it. Respect got lost. It became a commodity, it became money, it became hurry, get in, get out, get your stuff, make your decision. Like, “Can I get something that’s good for my asthma?” Like, “I don’t know, just get an OG kush.” That’s the kind of response they got. When people come in here and they talk about what they can do for their asthma, we talk about vasodilators, we talk about anti-inflammatories. We talk about other ways to get it into your body to reduce inflammation. That is the respect that people deserve. When they hear this is medical, they should be able to walk in and actually, physically see that this is medical, and feel that kind of relationship. I think that’s what’s important.

Bianca Green: Awesome. TheHigherPath.com.

Jerred Kiloh: Yeah.

Bianca Green: Check out Jerred, and come check out The Higher Path. It is a very beautiful dispensary, and really lovely employees. You really upped the bar. I remember my first experience, there were bars, and lot of locks. This is a very open door policy, and it feels really good. I encourage everybody to stop by and check it out, and check out what you’re doing with UCBA. Is there a way that people can find out about that association?

Jerred Kiloh: Man, you can Google UCBA, it’s a pretty quick one. You can see-

Bianca Green: United Cannabis Business Association?

Jerred Kiloh: Mm-hmm (affirmative).

Bianca Green: There’s a lot of acronyms in drug policy.

Jerred Kiloh: Very true.

Bianca Green: Right? And trade associations I guess. Well, thank you so much for being here with me today. I really appreciate you having us here. It’s been nice going to the podcast and being able to do it in people’s own territory. I feel at home when I do these.

Jerred Kiloh: I really appreciate you taking this time out of your life too to really advocate for us on a national, and especially right now in California it’s really important that this word does get out, and that we do hear people, and what they want from this industry, and how they’ve had the connection. I think it’s important that we don’t just have industry leaders tell everyone what they’re supposed to hear. We hear the patients, we know what they feel and how the connection is, because that’s truly what matters.

Bianca Green: The conversation right now is everything, because it’s all firsts. Even though things have existed for quite some time, there’s definitely a lot of firsts going on, so I definitely see the value in the conversation, and I appreciate you having one with me today.

Jerred Kiloh: No, thank you. I appreciate it too.

Bianca Green: Awesome.Spark the Conversation is really excited to do this partnership with Ganjapreneur.com creating these podcasts. It’s a resource for cannabis professionals, advocates, patients, business owners, anyone really who is in favor of responsible growth. Visit Ganjapreneur.com for daily cannabis news, career openings, company profiles, and of course, more episodes of this podcast. We’re thankful to them, and the partnership that we have with them, and we appreciate the fact that they spark the conversation, and help Ganjapreneurs grow.

Spark the Conversation is really excited to do this partnership with Ganjapreneur.com creating these podcasts. It’s a resource for cannabis professionals, advocates, patients, business owners, anyone really who is in favor of responsible growth. Visit Ganjapreneur.com for daily cannabis news, career openings, company profiles, and of course, more episodes of this podcast. We’re thankful to them, and the partnership that we have with them, and we appreciate the fact that they spark the conversation, and help ganjapreneurs grow.

End

The orange glow of an I-502 cultivation site in Washington state.

Study: Patients Drop ‘Benzo’ Pharmaceuticals with MMJ

4/10/2017

by TG Branfalt

An observational study from Canabo Medical Inc. found that 40 percent of patients prescribed medical cannabis to treat pain and anxiety stopped using benzodiazepines, such as Xanax, within 90 days and the percentage increased 45 percent within a year of cannabis treatment.

The data was drawn from more than 1,500 patients in Canada where Canabo operates 15 medical cannabis clinics.

Dr. Neil Smith, executive chairman of Canabo, called the results “extremely promising.”

“When conducting this type of research, experts are typically encouraged by an efficacy rate in the neighborhood of 10 percent,” he said in a press release. “To see 45 percent effectiveness demonstrates that the medical cannabis industry is at a real watershed moment.”

The average age of the study’s participants was 48, and about 43 percent were either temporarily or permanently disabled. Nearly 60 percent of the patients were female and more than 61 percent were seeking pain treatment. About 27 percent were interested in treatment for a psychiatric condition and about 11 percent for a neurological condition.

“To say that we’re encouraged is an understatement but there’s a lot of work still to be done,” Smith said. “We hope to conduct formal trials both in-house and in collaboration with others pending further analysis of what we believe to be one of the most promising advancements in many years.”

The company is also collecting data as to what extent cannabis can be used as an effective complement to or substitute for opioid therapies. The benzodiazepine study is expected to be published in the Dalhousie Medical Journal.

End

Registration for Patients and Caregivers Opens Today in Maryland

4/10/2017

by TG Branfalt

Some patients and potential caregivers in Maryland can sign up for medical cannabis licenses today with a doctor’s approval that they meet one of the qualifying conditions under the law, NBC 4 Washington reports. Registration is open for those whose last names start with the letters A through L; registration for those whose last names start with the letters M through Z will begin on Apr. 17; and open registration begins on Apr. 24.

The patient and caregiver enrollment begins despite the fact that no final cultivation licenses have yet been issued in the state and patients won’t have immediate access to medical cannabis. Patients and caregivers must apply with the Maryland Medical Cannabis Commission.

“Medical cannabis is currently not available in the state of Maryland,” the MMCC website states. “The industry is still being constructed and we expect availability by the end of summer 2017 depending on industry progress. The Commission will make a public announcement once medical cannabis becomes available to the public.”

Last week, the Maryland House of Delegates passed legislation that would add five additional cultivation licenses after a study is conducted as to whether minorities had undergone discrimination in the licensing process – one of the key issues that has caused delays in the implementation of the state program.

Three minority-led companies that were denied preliminary cultivation licenses have sued the commission claiming that they failed to follow the letter of the law, which requires regulators to “actively seek and achieve” racial and ethnic diversity in the industry.

End

AusCann and DayaCann Harvest Their First Crop in Chile

4/10/2017

by TG Branfalt

Australia-based AusCann Holdings is harvesting its first crop in Chile as part of a 50-50 partnership with Fundacion Daya. The estimated 660-plus pound crop, planted by DayaCann, will be sent to a manufacturing facility for processing into medical cannabis formulations.

“We’re delighted with the harvest of our first crop with our partner Fundacion Daya and we’re confident we have selected the strongest and most appropriate strains for effective medicine formulations and further cultivation in the next harvest,” AusCann Managing Director Elaine Darby said in a statement.

Four strains from the harvest have been selected as “superior strains” that will be used for future crops. Formulations must complete successful clinical trials before being registered with the Chilean Institute of Public Health and made available for patients and export markets.

Last month Argentina, which neighbors Chile, passed legislation legalizing the use of medical cannabis for patients with a prescription and for research purposes. DayaCann is exploring whether they will next enter Argentina’s market following the successful harvest.

AusCann began trading on the Australian Securities Exchange last February and since then its stock has tripled. Following a $5 million prospectus offering the stock opened at 19 cents and reached as much as 95 cents. It opened .03 percent higher today than Friday’s market close at 80 cents.

End

A cannabis-themed depiction of the national flag of Canada, pictured during the 2014 World Marijuana March in Vancouver, British Columbia.

What Might Canada’s Legal Cannabis Industry Look Like?

4/07/2017

by TG Branfalt

Later this month Canadian officials are expected to unveil the regulations under which the nation’s legal adult-use cannabis industry will operate; but so far consumers, operators, and other stakeholders have scant details about what the regime will look like.

Federal regulations to grant local control

Liberal MP Bill Blair, the parliamentary secretary to the Minister of Justice, indicated on Mar. 1 that under the federal rules provinces would have control over distribution and sales, and adults 18-and-older would be able to legally purchase cannabis from licensed retailers. Provinces will likely be able to raise the age to purchase cannabis as well – much like the nation’s alcohol policies. In Alberta, Manitoba, and Québec the legal drinking age is 18, while it is 19 in the rest of the country.

Amy Margolis, a shareholder and cannabis law specialist at the U.S.-based Greenspoon Marder Law firm, has already met with some Canadian operators “who are working closely on legalization” in order to get an idea of what Canadian legalization might look like.

“We certainly are watching what is happening in Canada very closely… everybody is waiting – even here in the U.S. – with bated breath to see what the Canadian government is going to come up with,” she said, adding that last month’s announcement came just days after law enforcement carried out Operation Gator, raiding dispensaries in Vancouver, Toronto, and Hamilton.

Potential for ‘craft cannabis’ licenses

In an interview with Ganjapreneur, Margolis said the federal government would likely maintain control over cultivation – for which only 31 licenses have been issued under the nation’s almost 16-year-old medical cannabis regime – indicating that there are discussions happening about allowing “craft cannabis” licenses. Such licenses would allow smaller growers, some of which are already operating without a license, to grow and distribute “only in the jurisdictions where they are licensed.”

“If they don’t create something like that I think they’re going to have real issues with a gray market,” Margolis said. “But if they do manage to build that craft cannabis license then you will have the best of all worlds – larger licensees that provide broader product and these people who have been producing for a long time who are able to access the market.”

A cannabis worker holds up a handful of commercial-grade, trimmed cannabis nugs. *Photo Credit: Sarah Climaco*

The sweeping reforms should also help stem what has become a prominent issue in Canada’s medical cannabis market – pesticide contamination. Last July, it was discovered that the federal government was discouraging laboratories from testing cannabis products from non-licensed producers. Five months later, Mettrum Ltd. issued a voluntary recall after its products tested positive for banned pesticides myclobutanil and pyrethrin; however, both the company and Health Canada came under fire for not informing consumers en masse. Last month, Aurora Cannabis announced that they were implementing a testing program beyond Health Canada requirements. Three class-action lawsuits against Mettrum and Organigram, another licensed producer, over tainted products are pending.

Ramifications for the international industry

While it’s almost a given that federal legalization in Canada won’t compel their American counterparts to follow suit, Margolis suggests that the U.S. industry could be impacted if current operators and investors move their operations – and money – north of the border. “I think from a market perspective we’re going to see people seeking additional opportunity in Canada that could be fueling jobs here, could be fueling tax revenue here, could be moving us forward.”

“From a policy perspective, it doesn’t seem to me that the [U.S.] federal government cares very much about how progressive other countries are in terms of drug reform,” she said. “I cannot foresee Congress saying ‘Hey, Canada’s done this progressive thing and we should be catching up.’… We’re already far behind places like Israel that focus a ton of energy and attention on medical research.”

During a debate on the floor of Parliament, Canadian Prime Minister Justin Trudeau, whose Liberal government is leading the reforms, said the party’s focus on legalizing cannabis “is on protecting our kids and getting the money out of organized crime’s pockets.”

“We know that that happens when you legalize and control and bring in a proper regime,” he said.

Many reports indicate that cannabis will be legal for sale on July,1 – Canada Day – however Blair said he “had no authority to confirm that date.”

A formal announcement of the rules is expected on April 20.

End

The West Virginia State Capitol Building in Charleston, West Virginia.

West Virginia MMJ Legislation Passes House, Heads to Governor

4/07/2017

by TG Branfalt

West Virginia’s medical cannabis legislation has passed the House of Delegates and has been sent to Gov. Jim Justice who is expected to sign the bill, West Virginia Public Broadcasting reports. However, the bill does not allow smoking or edibles and the state will not begin to issue industry licenses until at least July 1, 2019.

The measure, which passed 74-24, allows access to the medical cannabis program for patients suffering from wasting syndrome, anorexia, cachexia, chronic pain for which standard medication does not relieve, severe nausea and muscle spasms, seizures, “refractory generalized anxiety disorder,” post-traumatic stress disorder, and those admitted to hospice care. According to the report, House leadership has indicated that under the regime patients are allowed to make their own edibles from purchased oils.

Patients would be required to be certified by the Bureau for Public Health and could obtain a 30-day supply from a licensed dispensary. Under the measure, the state would permit 10 cultivators and 30 dispensaries. Growers would be subject to a $50,000 initial fee and $5,000 renewal fee. Dispensaries would be required to pay a $10,000 fee per dispensary location and a renewal fee of $2,500. A 6 percent excise tax will be added onto sales.

West Virginia will become the 29th state with access to medical cannabis if the governor signs the bill.

End

The Plaza Independencia in Montevideo, Uruguay.

Legal Sales in Uruguay Set for July

4/07/2017

by TG Branfalt

Legal cannabis sales are set to begin in Uruguay in July; more than four years after the South American nation fully legalized the cannabis trade, according to a BBC report. Under the laws, cannabis will be available only to citizens or permanent residents 18-and-older at pharmacies for $1.30 per gram. Although, the law also requires buyers to sign up with a national registry and they can only purchase 40 grams per month. The rules also permit home growers and cooperative clubs to cultivate up to 99 plants.

Presidential Aide Juan Andres Roballo said the registry would be up and running by May 2.

According to the report, the government currently has 16 pharmacies on board; however many pharmacists have doubted the financial benefits of selling cost-controlled cannabis. Some Uruguayans have also expressed privacy concerns over the national registry.

Roballo said there would be a public health campaign before the registry was launched and that the government’s state-supervised growers already do not have enough product to meet demand. He added that he does not believe there will be “an avalanche of users” signing up for the registry.

Uruguay legalized the cultivation and sale of cannabis in 2013 under former President José Mujica in an effort to combat homicides and crime rates associated with drug trafficking.

End

Bill Outlawing Cannabis “Candy” Introduced in Nevada

4/07/2017

by TG Branfalt

A bill introduced in Nevada’s Senate would outlaw the sales of all cannabis-infused “candy” in the state and lawmakers are considering other amendments that would eliminate all sugar-containing products and colorful products that might appeal to children, the Reno Gazette-Journal reports.

Sen. Patricia Farley, who introduced SB.344 to the Senate Judiciary Committee last week, said the bill “is just the start” on plans to add restrictions to cannabis products in Nevada.

“We have to draw a little bit stricter of a line in the sand,” she said in the report. “This is another way to make sure that Nevada leads the nation in its marijuana practices.”

Nevada Dispensary Association Executive Director Riana Durett indicated that many dispensaries have already implemented some measures of the bill – which includes limits on THC in edibles, and packaging and labeling requirements. She said the association would like to work on defining “candy” under the bill because it is such a broad term.

Cindy Brown, a medical cannabis advocate, argued that some gambling and alcohol establishments use mascots and cartoons and if such restrictions are placed on the cannabis industry they should apply to other adult-oriented industries as well.

“Let us have the mascots. What happened to personal responsibility of parents? We keep trying to over-regulate people,” she said. “What about children with cancer? We shouldn’t have to give them something yucky looking. Give them something pretty that they like.”

Joe Pollock, deputy administrator for the state Department of Health said he would like to see individual THC doses capped at 25 milligrams and that all edibles are required to be in opaque packaging.

The legislation has not yet been moved from the Judiciary Committee.

End

Montana Legislation Would Require Legislators to Study Rec. Cannabis

4/07/2017

by TG Branfalt

A measure has been introduced in Montana’s House of Representatives that would direct a legislative committee to “examine the legalization, regulation, taxation, and public health and safety aspects of recreational marijuana in Montana,” the Montana Standard reports. The legislation would require the results of the study to be presented to the 2019 Legislature.

The proposal would create an interim legislative committee to conduct the study, which would examine whether Montana’s liquor control system would make good model for an adult-use cannabis system, how tax revenues have been affected in legal states, public health and safety spending, and child drug use.

Democratic state Rep. Mary Dunwell, who introduced House Joint Resolution 35, said cannabis legalization is not a question of if but when, and that being armed with research when that time comes is better than trying to cram a bill blind through a 90-day session.

“You don’t have time to do good research,” she said in the report.

House and Senate leaders on the bipartisan Legislative Council would appoint the committee that would meet for 20 months. They would seek input from the Department of Public Health and Human Services, the Revenue, Justice, and Agriculture departments, lobbying groups, local police, district courts, and schools.

If the resolution passes – and is voted by lawmakers as one of the top 20 proposed interim committees – the study would be completed by Sept. 15, 2018.

End

Richard Pine: Preparation and Education for Ohio’s Medical Cannabis Program

4/06/2017

by TG Branfalt

Richard Pine is the founder and CEO of Cleveland Cannabis College, an institution in Independence, Ohio that offers quality, in-depth schooling on the cannabis plant. Classes at the Cleveland Cannabis College cover the plant’s historical significance, its many medical properties, the culture of cannabis and the legalization movement, as well as actual cultivation and preparation processes.

In this episode of the Ganjapreneur.com podcast, Richard joins our podcast host TG Branfalt for a discussion about the college’s founding, available curriculum, and Ohio’s medical cannabis roll out. Richard also shares what it’s like being a young (28) entrepreneur in the nascent cannabis space and he talks about transitioning from the retail investment industry to cannabis.

You can listen to the episode below or keep scrolling down to read a full transcript of the interview.

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Read the transcript:

TG Branfalt: Hey there. I’m TG Branfalt, and you are listening to the Ganjapreneur.com podcast. The Ganjapreneur.com podcast gives us an opportunity to speak directly with entrepreneurs and experts who are working on the front lines of the industry to normalize cannabis through responsible business, education, and activism. As your host, I will do my best to bring you actionable information to help you plan, grow, and manage your cannabis business.

Today, I’m joined by Richard Pine. He is the founder and CEO of Cleveland Cannabis College. How are you doing today, Richard?

Richard Pine: I’m doing pretty good, Tim. How are you?

TG Branfalt: I’m all right. I’m still a little stunned from Spicer’s comments last week, and we’ll probably get into that a little bit later. But for now, I want to learn more about you, learn more about the college. So let’s start with your background. What did you do before getting involved in the cannabis industry?

Richard Pine: It started off, I graduated college at Kent State University here in Ohio with my degree in entrepreneurship and a minor in marketing, and then shortly after, I moved down to rural Georgia on a small farm, and really focused on my real estate investing career. And then in was House Bill 523 that really decided … had me move back up to Ohio in December of 2016.

TG Branfalt: And you’re like the third person that’s been on this show that has a background in real estate. Why do you think that many people who are involved in that industry end up in the cannabis sector?

Richard Pine: I think it might go kind of both ways. I think that some of the people in the cannabis sector go into real estate for financial reasons, just for being able to claim profits and things like that. And then on the other side, people that started real estate investing, community, go over into cannabis because they have assets that they can, you know get money out of. They have a passive income that is continually coming in so that they can focus on another industry like Cannabis.

TG Branfalt: And so why’d you decide to not only get into the cannabis industry but specifically this education sector that’s emerging nationwide in legal states?

Richard Pine: Well, you know. Ohio’s really setting the bar as far as … At least in my opinion. As far as their legislation and with the requirement in Ohio for documented education with the state for the various different levels of cannabis. So for example, you know the doctors have to have continuing medical education credits to write the recommendations.

Employees at dispensaries and processors have to have documented education with the state. And so, I saw an opportunity because there is no … There’s nowhere you can really go to get an in-depth, really in-depth education in cannabis. And also, with Ohio looking into the research aspect of cannabis is also what really spiked my interest. By a year … Year and a half ago, I was actually in Uganda and Africa looking at legalizing out there, talking with parliament about the possibilities of that just because I wanted … I was passionate about the education and passionate about the research, and that wasn’t being, you know … Available anywhere in the US.

With the laws changing out West and with recreation and the Ohio … You know, getting ready to go into the medical marijuana, I realized that my time and money would be a lot better spent here in the US and that they were moving forward with the ability to educate and possibly do the research. … So I saw that opportunity and the fact that it’s an ancillary business, I don’t have as much of a high startup cost that they’re requiring for the licensing and stuff here in Ohio. It’s a required part of the cannabis industry in Ohio with education. And like I said, there was nowhere else that I could find that did a year, year and a half … course in cannabis.

TG Branfalt: And what was the process like for you to set up the school in Ohio?

Richard Pine: Well, it wasn’t too hard. I had some of the ground work already laid out for my idea of setting up in Africa so we kinda had the basic idea of what I wanted to do. It was just bringing together the different organizations and different people that were very passionate as well about medical marijuana. So to come up with the curriculum and to come up with the educators. So it’s been a lot of networking and a lot of time. A lot of long days of setting this all up.

TG Branfalt: And did you have any trouble finding a place to host it? I know you’re an ancillary business but did you approach any properties or landlords or anything and they were like, “eh, we don’t want this here.”

Richard Pine: Yeah, we had a little bit of push back, but. You know, a lot of these guys, they knew … We were very up front with them, telling them what we wanted to do. And we were pretty specific in the area and what we were looking for and in our price range. And so when we found the location that we’re at, we didn’t really have any issues. The only issue we really had was some of the pictures and the shirts that we had hanging up on our store front were a little controversial, I guess to some people, that they felt offended, so we just worked with management on moving those and covering the windows up. So that there wouldn’t be any issues. But we really just wanted a place that was centrally located, a place that wasn’t too busy but not too rural. And then somewhere that we could expand on. So right now, we’re a little over 2 thousand square foot office and we’re in the process of looking at adding on about another 2 thousand or 21 hundred square feet to our office space come June.

TG Branfalt: And why don’t you tell me about the … You know, we understand the purpose but what are you offering over there at the Cleveland Cannabis College? What are the details of some of these programs?

Richard Pine: Yeah, sure. So … We have an intro class that we require. We require two courses, the intro class and the history class to go any further with us in your education. Obviously because we want a strong foundation, want everybody to be one the same … You know, the same foundation furthering education and be able to have intellectual conversations about medical marijuana with people.

And we don’t focus on just people that want to work in the industry. We also offer our classes to people that are just interested. So patients, possible patients. Also, we recommend that … To get educated before they go out and try this new medication. We’ve had everybody from 18 years old all the way up to 80 years old. I mean, we really don’t … Have a set person we’re looking for, let’s say. And we offer … Right now we’re offering three major certifications. So, in horticulture, one in manufacturing and dispensing, and another with more of a medical background for like, a patient navigator or a caregiver.

TG Branfalt: And so far, what’s the response been like?

Richard Pine: It’s really, really awesome. We opened our doors January first of this year, this building. Our first class was the last weekend in January. We had about 70 to 75 percent attendance. And then we had our grand opening event, the weekend after Valentine’s day. And it was on February 18th. We had … It was called Weed Dating. And we had a panelist, a couple tables set up with panelists and you could go for five minutes to each table and get your questions answered. We had about 150 plus people show up at that event. A lot of news coverage. And that really launched things off.

We had 100 percent attendance at our last class this past weekend on the 25th and 26th of February. We already are 100 percent booked for our March class and have since decided to start with two of the intro classes in April, one of which are already half way filled up. So we’re really happy with the interest, we can’t answer the phones fast enough.

TG Branfalt: How’s tuition compared to other trade schools?

Richard Pine: Well, as far as trade schools go, the price of trade schools really vary. From state to state and from area of interest. So you know, like an automotive … Like an automotive trade school is about 27 hundred, three thousand dollars, I’d say. And then going out there to be like, a vet tech or something, it’s gonna be a bit more. So we’re kinda right down the middle. Our … From one certification it is 52 hundred dollars. And that’s payable, that’s throughout your education. And the new also offer our executive course which is 9 thousand. And that covers your required courses and then the certification for all three areas of study, in horticulture, manufacturing and dispensing and the medical side.

TG Branfalt: And where are you seeing the most interest in your programs? Is it the horticulture side or is it more the dispensing side or?

Richard Pine: Yeah. Right now we’re seeing the most in horticulture.

TG Branfalt: And you mentioned that you’d had a panel at one of your … kind of grand openings. What kind of questions were asked, you know? What was the most prevalent question asked at that panel?

Richard Pine: Let’s see. The number one question is probably how to get into the industry. We had people from all different walks of the industry. From growers to dispensers to neuro-pharmacologists, to talk about how the … how marijuana effects the brain in a neurochemical aspect. We had representatives from Ohio patient network. We had the president of Ohio NORML, the president of Cleveland normal, answering the activism and advocacy questions. But I’d say in general, if you had to put a number one question … What was asked at the panelists was, “how do I get into the medical marijuana industry in Ohio?”

TG Branfalt: So, we’re gonna get into a bit more details on your program. But before we get into that we have to take a short break. I’m TG Branfalt, this is the Ganjapreneur.com podcast.

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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt here with Richard Pine. Founder and CEO of Cleveland Cannabis College.

During the break, you had actually mentioned that you’re a young guy. You’re younger than me. 28 years old, you know. How do you think that plays into the whole development of the program, and your approach to the industry?

Richard Pine: Well. You know, having that … I am a big younger does give me the upper hand in the fact that I have the energy and tenacity still to tackle something like this. And when I say this, I don’t joke. It’s seven days a week. So I feel like, that still being young gives me the opportunity to do that.

Also, the medical marijuana industry is something that the younger generation is very … Something that they’re very passionate about. And a lot of us have been growing up since … I mean I think Ohio first had medical marijuana in 1996, then it was obviously turned over in 1997. So I was still really really young back then, and so we kinda grew up with this fight starting out west and moving east. And seeing how the country has developed.

Not to say that older people are out of the industry, but it’s a chance for my peers to go into something that they might enjoy more, let’s say, than the typical desk job. But it’s also really interesting to see how age does not play a factor in how people communicate. So when we have these classes, it’s the young guys talking with the older guys. We’ve had physicians in our class that are retired physicians and just still looking to do something. And they all can communicate with each other with this common interest in medical marijuana with helping people get access to this medication, and figuring out the ropes together.

So, luckily I haven’t been faced with any adversity, being young and being discredited or anything like that. So I’m really beneficial in that aspect. I haven’t had anybody look down on me for my younger age. So again, I think that just goes with the industry. People just being a little more open minded that kind of tend to follow this track.

TG Branfalt: So moving backwards a little bit. You guys over there, you guarantee that full-time students get jobs six months after graduation. That’s a lot, you know. I was a professor at a small private college in Upstate New York and worked closely with their career development program, helping students write resumes and that sort of thing. And that’s not even a claim they could fulfill. So how do you plan on keeping that promise?

Richard Pine: First of all, I want to make that really clear. We were a little bit misquoted, that not every single one of our students is guaranteed a job. It is our executive program, the 9 thousand dollar full time program that covers every aspect that we offer. So I want to get that straight off the bat.

Second of all, we offer that to all of the new students coming in, and that’s not something that we’re gonna offer forever. We’ve already had people that are … Companies that are submitting the applications. For example the horticulture and production facilities, call us asking about our students. So we already have people looking for employees. I’ve had attorneys call me that represent companies here and companies out in Colorado wanting to speak with us about our students and connecting in the future. And since we are one of a kind, and we put up top quality, top of the line students, we feel that there’s not going to be an issue at all getting them placed into these businesses.

I mean, put yourself in the shoes of someone that’s got a couple million dollars in a 25 thousand square foot grow facility in Ohio. Are you going to spend the money to get someone from out west, hundreds of thousands of dollars? Because that’s what they’re making out there. Or are you going to hire someone that’s local and had the knowledge and has spent some time in another professional facility, for a lot less?

We feel that it’s gonna be kind of a no brainer for these companies. And we also have partnerships in other states that are legalized. So we can find employment for these students, whether it’s in Ohio or in one of the surrounding states that it’s now legal in.

TG Branfalt: Well, and recent reports show that the industry’s expected to outpace government jobs and manufacturing jobs by 2020. So the trends seem to indicate federal weather permitting, that the opportunities are kind of endless at this stage.

Is that kind of what you’re seeing so far?

Richard Pine: Yeah. Yeah, we’re definitely seeing that. And we also want to keep in mind that the jobs that will be available for our students aren’t going to be just in dispensaries, extracting companies and grow facilities. We have to keep in mind all of these, the ancillary business that are going to be popping up around medical marijuana, that having a background in one of these aspects will help them get a job in that ancillary business as well.

TG Branfalt: And you said that research was something that was important for you. And you guys are offering students incubator space, you know. How important was that to the development of your college? And what sort of projects are you anticipating coming out of these incubator projects’ space?

Richard Pine: Yeah, so right now we have two extra offices. So we didn’t want to leave those empty. And with my degree being in entrepreneurship at Ken State, they had incubator space. And that was what kind of gave us the idea for this. I saw the importance of it and being able to use these incubator spaces in college, to have office structure support. To have some operation support, ask questions and build your network in an office setting.

It really helps startup companies get their feet off the ground. And right now, we decided that we would give the Cleveland NORML chapter an office space because they didn’t currently have somewhere, and we also let them hold all their meetings here for free. As well as any other cannabis club or discussion group, or activism group or anything like that. We allow, our doors are open to those groups to use our facility here for free.

And then the other space that we have we decided to bring in a new company called Connect the Dots, LLC. And what that does is they hook up people in the cannabis industry with financing, with investors. So it’s connecting the dots literally, from the money to the worker. So whether it’s companies out west or companies here in Ohio that begin to sprout up, it’s a link that … We’re using our wide network to bring investors to these startups that need these large amounts of money. And as we grow, as our space grows, we’re gonna obviously have a couple more incubator spaces available. And we plan to hold … Probably about once every three months or so, a cannabis shark tank, if you will. Where we have a exclusive group of investors, they get to meet and sit on the panel and allow these cannabis startups to pitch their ideas to the different investors.

TG Branfalt: So, where are you finding not just the financiers for these sort of projects and the companies that want to do this, but where are you also finding your staffing for this sort of thing? Ohio doesn’t … The program’s not rolled out yet. So where are you finding the instructors? Where are you finding the financiers? Where are you finding these people in Ohio?

Richard Pine: Again, it really stems from networking. I’m always in Columbus, I go to all the different classes that are offered, so these different traveling classes. I try to attend as many of those as possible, to get to network and know people. As well as our local NORML community have brought a lot of people to our door that we partnered up with.

And then we get a lot of people just calling in, from seeing either our ads or they knew someone that took a class. But, so different … Ohio Patient network has been invaluable to us. Obviously like I said, the NORML community has been invaluable to us. And then as far as the investors go, like I said we … My basis is in real estate investing so I have been surrounded by investors since college.

So we just have a large network of people that we’ve reached out to and again, there are a lot of investors that are looking to get into the cannabis space, but they don’t want to have to navigate it. They just want to profit from it and help other people profit from it.

TG Branfalt: And are you finding a lot of instructors? Are they coming from out west? I know a guy, John Cachat, I’m sure he told me that he had done your keynote and he was from California. From Ohio, moved to California, moved back to Ohio. So are you seeing a lot of these kind of migrants who end up working for you as instructors or are they coming from different industries entirely?

Richard Pine: It’s a mix. Doctor Jonathan is a great guy, first of all. Real smart, smart guy, really forward thinking. We’re really happy to have met. Actually I … Originally I met his father at one of the committee meetings out in Columbus and we had lunch and had talked about some things. They ended up coming out for a meeting and it was during one of our classes, and the horticulture section was coming up next. And we were just kinda like, “hey, Doctor Cachat, why don’t you jump up there?” And he just, “sure, okay.” And he got up there are just went at it and taught our horticulture section.

It kind of was off the cusp and, that comes with his knowledge and his passion. And that’s just the type of people that we see coming to us and just being … By the grace of God being placed in front of us. So yeah, he has a lot of experience out west. A lot of our instructors are mostly Ohio based. Now that doesn’t mean that the content that they’re teaching is obviously from Ohio. We have a lot of different consulting companies and professionals throughout the country that are helping us come up with our content. So it’s not as much who’s teaching it, but what they’re teaching.

But Bryan Adams, who’s one of our primary instructors. He’s like, the Cleveland … I think his actual title is executive director of the Cleveland Chapter for normal. He does a lot of our speaking. We have different law groups come and teach the law sections, since the legal landscape is literally changing daily in Ohio right now. From class to class, that is always changing. So we always have one of our legal representatives that are up on the legislation come and teach that section.

We have Rob Ryan come up from Cincinnati and teach our patient access section. He’s from the Ohio patient network. So a lot of the people are from Ohio. And then like I said in Doctor John’s case, people that have left Ohio and then have come back due to the law changing.

TG Branfalt: So I want to get into more about these rules that will dictate the Ohio program. But before be do that, we gotta take one more short break. I’m TG Branfalt, this is the Ganjapreneur.com podcast.

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TG Branfalt: Hey, welcome back to the Ganjapreneur. Com podcast. I’m your host TG Branfalt. I’m here with Richard Pine, founder and CEO of Cleveland Cannabis College. Before the break, we were talking about how the legal landscape in Ohio is changing every day. We know what some of the draft rules are. Found out today, what’s very unique about the program is that it will be dispensed … Cannabis will be dispensed based not just on weight but also THC content. I’m sure that you tailored your programs for the state regime, so what considerations were made during that class crafting process? And can you give me a specific example of a course that you had to adapt for Ohio’s regs?

Richard Pine: Yeah, like I said earlier. The legal section is really what we’ve had to adapt the most. Cannabis grows the same at an indoor facility here as it does an indoor facility anywhere else, so as far as that aspect, that stays the same.

The laws is something that’s continuously changing. And that’s something that we update literally the day before every presentation. So that’s kind of an ongoing change to the classes. And that … We leave that up to our legal representatives. They’re the best at that, so we just leave that to the pros.

The Ohio law, once it’s finished being written … So we’re at … We aren’t teaching things yet until they’re written in stone with Ohio. But there’s a lot of little things that go into starting up these different businesses that we’re taking into consideration. So for example, the security systems and the type of safe that’s needed at a dispensary is very specific under Ohio law. The state has to be able to access your video feed of your security cameras. You have to save your security footage for 45 days. Your security cameras have to be able to take a high resolution picture.

There’s a lot of little nuances that are being written into the Ohio law that we have to take into consideration and adapt for ourselves when we’re teaching our dispensary course. We have to make sure that we’re covering a huge section on just security. So it’s … We have the bones … Like I said we got the bones and we’re just filling in the meat and potatoes as we go along. We have the basic structure and we’re just fine tuning it as the laws come out.

TG Branfalt: And were there any surprises for you as the proposed rules get made public? Are there any surprises for you so far?

Richard Pine: Yeah, there’s a lot. Like I said, I go down to Ohio when they have the medical marijuana committee meetings. And it’s really kind of a cool thing to see, how they’re doing it. And taking public comment into consideration. The numbers of these facilities have continually gone up in their discussions.

They’re basing it off of … I think I said it was like 18 thousand patient pool, which I think is a bit low. Especially with over 3 and a half million opiate prescriptions being written last year in Ohio alone. So I think those numbers, you’re gonna see are a little low. The high application costs, I thought was a little ridiculous and creating a lot of barrier to entry for people that really have the desire and passion to get into it.

And then other … Another little thing that I thought was interesting, and that some people might think positively on, some people might thing negatively on, but actually treating marijuana as a medicine. They are requiring the seed to sale system to be tracked, everything’s gotta be tracked from seed to sale. And that each patient will also have their medial marijuana linked to the OARR system which is the Ohio Automated RX Reporting system.

So all the … Just like if you were going into a pharmacy, a real pharmacy like CVS or something, it’s being reported the same way for your medical marijuana. So they’re allowing you the 90 day supply, and this system will be able to keep track of that. Of how much of each individual’s 90 day supply has been bought. If it’s all be bought, and so on and so forth. So I thought that was a pretty interesting part of the rules that they’re proposing.

TG Branfalt: And they’re basing that supply on not just weight, but THC content which is … I mean that’s the first time that’s been done. So is that something you guys were kind of prepared for? Because this is something that just came out over … Friday, I think.

Richard Pine: No, it’s not something we were necessarily prepared for, it’s something else to take into consideration when teaching the classes and teaching, especially when we’re talking about the extraction and the testing side of things. To be able to tell what levels of the different cannabinols are in the product. So it’s definitely something we have to take into consideration. But being an entrepreneur, it’s … We’re used to adapting. I’m used to adapting, so we just take it, we get the information, we work it into our course.

TG Branfalt: And do you have any indication when the first dispensaries will actually open? I know every state, they say this date and that date. But it’s most often thrown by the wayside two weeks in, so what are you guys sensing over there?

Richard Pine: So from my understanding, they’re allowing the growth facilities to start first, and then they growth facility applications, and the manufacturing applications to be put in first. So I’m assuming those will be put into play so they can have the product available and then everything mile high well everything has to be set into play as of September eighth, 2018 I believe. So, I can see that no later than that date will there be the dispensaries. So September of 2018 there will be dispensaries in Ohio fully stocked and ready to go.

TG Branfalt: And would you say that they’re on track to meet that date?

Richard Pine: Personally, I think so. I mean, they got a lot of time, they got a lot of time ahead of them to get these things together, got another year and a half to go, so.

TG Branfalt: So, and then finally you had said earlier that one of the most common questions you got at the Q and A was, you know, how do people get into the cannabis industry? So what’s your advice for entrepreneurs or individuals looking to get into the space?

Richard Pine: Yeah, and I’d like to tell you a little bit about the legal part of the class. The lawyer’s always up there and she goes … He or she goes over the application fees and you just kind of … The whole class, you kind of see their head just sink down into the table. Like, “wow, why am I here? I don’t have 100 thousand dollars lying around.” And so we always step in and kinda just reassure our students on a couple things.

So first of all, if you have the passion, if you have the plan and the desire to make this work, the money’s out there. I tell all of our students, do not, by no way, let the financial aspect of starting a company … A grower, dispenser, or extraction company be the reason that you don’t do it.

The money’s out there and if you have the right plan and you can show that to someone, you can get the money. And that stands true with all entrepreneurs. And then also, we tell our students to not have blinders. So don’t just stay focused on the grows, the dispensaries and the manufacturing.

The opportunities are limitless. Really look into the ancillary businesses. We use the story of the gold rush out west. And how it wasn’t so much the miners that made the money, but the people that were selling them the shovels. That’s … Levi Strauss who makes Levi’s the jeans companies, he got developed … Was out there during the gold rush.

It’s the ancillary businesses that also stand to make a really good profit in this business, and they come with a lot less risk, a lot less startup costs, and a lot less risk of the federal government coming after you, so. That’s kind of the two things that we tell our students. Keep your eyes open to ancillary businesses, and that if you really truly are passionate about getting into the actual medical marijuana business and you’re just being turned away because of financing, to not let that be the reason you don’t pursue your dream career in cannabis.

TG Branfalt: And that’s really great advice. I speak to a lot of people on this podcast and writing stories, and that’s how I met Doctor Cachat, was writing a story about lights, and how he’s been successful growing with a certain light, so I think that just speaks to your point. That the ancillary market is going to thrive right alongside of the market that quote, unquote ‘touches the plant’.

Richard Pine: Right, and what Doctor John is doing is more than just a way to … A new way to grow, but it’s saving money on electricity, it’s saving the very important resource of water. What he’s doing is huge for the growing community.

TG Branfalt: Is there anything written in the Ohio law that looks to save energy at all? Or put caps on kilowatts used or water used?

Richard Pine: Not that I know of. I have not read the entire house bill 523, as it’s really really really long. But I haven’t heard anything specific yet.

TG Branfalt: All right, so finally. Would you mind telling our listeners where they can find out more information about the college?

Richard Pine: Yeah, absolutely. Our website is www.clevelandcannabiscollege.com and if you’re an Ohioan or in the northeast Ohio area, or just feel like taking a trip to come visit us, we’re located at 5755 Granger Road, Suite 100 in Independence, Ohio.

TG Branfalt: Well, it’s very very interesting, what you’re doing over there in Ohio. And you know, I really want to congratulate you on your success, getting everything up and running. I mean, I’m sure that’s a huge undertaking in and of itself.

Richard Pine: Thanks Tim, I appreciate it.

TG Branfalt: And thanks for being on today’s episode. You can find more episodes of the Ganjapreneur.com podcasts at the podcast section of Ganjapreneur.com and 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

Attorney General Jeff Sessions during the 2016 presidential election.

Sessions Requests Review of Cannabis Policies as Part of Violent Crime Reduction Strategy

4/06/2017

by TG Branfalt

In a memo to the 94 U.S. Attorneys, Attorney General Jeff Sessions has directed the Justice Department Task Force on Crime Reduction and Public Safety to review federal cannabis policies as part of a strategy to combat violent crime.

“Task Force subcommittees will…undertake a review of existing policies in the areas of charging, sentencing, and marijuana to ensure consistency with the Department’s overall strategy on reducing violent crime and with Administration goals and priorities,” Sessions wrote in the April 5 memo.

Last month, Sessions indicated that he may leave the 2013 Cole Memo – which effectively barred federal agencies from interfering with state cannabis laws – mostly intact; although he hinted at possible adjustments.

The Task Force and its subcommittees are expected to issue their recommendations to the Justice Department no later than July 27 – which means that if a federal crackdown in states with legal cannabis is looming it likely won’t be carried out before that date.

End

The state flag of California flying on a clear, blue sky day.

California Governor’s Plan to Solve Conflict Between Rec. and MMJ Draws Mixed Reviews

4/06/2017

by TG Branfalt

California Gov. Jerry Brown’s Office has made recommendations to solve the conflicts between the state’s medical and adult-use cannabis industries as part of his 2017-2018 budget, according to an Orange County Register report. However, his plan includes vertical integration – allowing a single business to hold licenses to cultivate, distribute, manufacture, and sell cannabis – which drew the ire of state law enforcement officials.

According to Ken Corney, president of the California Police Chiefs Association, the governor’s plan could turn traditionally small cannabis businesses into larger ones by allowing them to control the entire supply chain which could open the door for criminal elements to stake their claim in the industry. Under the state’s current medical cannabis laws, businesses are prevented from holding both cultivation and distribution licenses.

“The proposal favors big marijuana grows over the welfare of our communities,” Corney said in an Associated Press report.

Even members of the cannabis industry were split on the proposal.

Nate Bradley, executive director of the California Cannabis Industry Association, said the association was “extremely happy” with the governor’s proposal, which also includes language to limit larger farms.

However, Hezekiah Allen, head of the California Growers Association, said allowing entities to hold multiple licenses “could lead to mega-manufacturers and mega chain stores.”

The proposal requires legislative approval before it is enacted.

End

A large cannabis cola inside of a licensed grow facility.

Cannabinoid Research Center Officially Launches at Israel’s Hebrew University

4/06/2017

by TG Branfalt

The Hebrew University of Jerusalem has launched the Multidisciplinary Center of Cannabinoid Research which will conduct and coordinate research on cannabis and its biological effects in an effort to determine its commercial applications, the Jewish Telegraphic Agency reports. Raphael Mechoulam, the chemistry professor who is credited with discovering THC in 1964 and later identified the endocannabinoid system, will continue his research with the center.

Dr. Joseph Tam, the director of the center, said the 27 researchers at Hebrew University will work with specialists at the Hadassah Medical Center to study agriculture, chemistry, pharmacology, chemical development, and drug delivery while incorporating fields of nanotechnology, and pain and brain science.

“There is so much interest in cannabis at the moment, but a lot remains unknown about its mechanism of action,” Tam said in the report, noting that the center also plans on collaborating with scientists and biotech companies. “My belief is that our multidisciplinary center will lead global research and answer these questions.”

Last month, prior to its official opening, the center signed a memorandum of understanding with The Lambert Institute, an Australian medical cannabis research center at the University of Sydney. It had also funded research projects on the use of cannabinoids on traumatic brain injury, the effects of a cannabis extract on pain and painkillers, and the cancer-fighting potential of a cannabinoid receptor.

Mechoulam indicated that the center will study cannabinoids as a potential therapy for cancer, head injury, bone formation, obesity, and addiction.

“It has been shown that modulating endocannabinoid activity has therapeutic potential in a large number of human diseases, hence research on cannabinoids may lead to very significant advances, not only in basic science but also in therapeutics,” he said.

Tam said that the cannabis research being conducted in Israel is made possible, in part, by an increasingly lenient political environment.

End

The city skyline of Toronto, Ontario in Canada.

World’s First Cannabis ETF Launches on Toronto Stock Exchange

4/06/2017

by TG Branfalt

The world’s first cannabis-related exchange-traded fund began trading yesterday on the Toronto Stock Exchange. The Horizons Medical Marijuana Life Sciences ETF, which offers exposure to the performance of a basket of North American publicly listed life science firms and other companies with significant business activities in the cannabis industry, is being traded under the ticker symbol HMMJ.

The ETF is a passively managed index seeking to replicate the performance of Solactive’s North American Medical Marijuana Index net of expenses. The Index selects from a current roster of companies whose operations may include biopharmaceuticals, bioproducts, medical manufacturing, distribution, and other ancillary businesses related to the cannabis industry.

Steve Hawkins, president and co-CEO of Horizons ETFs, called the offering “another made-in-Canada ETF milestone” noting that the nation “is the birthplace of ETFs.”

“The rapid growth of the medical marijuana industry, which includes the growth in the size of companies and the number of companies that are publicly listed on North American stock exchanges, has created enough market depth and liquidity to make launching an ETF with this unique theme possible,” Hawkins said in a press release. “It’s rare that investors get an opportunity to invest in what is essentially an entirely new sector of stocks. Despite the recently strong performance of many of these companies, we do think that we’re still in the early stages of what could be a unique long-term growth opportunity.”

Horizons ETFs has more than $7 billion of assets under management, with 77 ETFs listed on the TSX.

End

Kansas City, Missouri Voters Pass Cannabis Decriminalization Measure

4/05/2017

by TG Branfalt

Voters in Kansas City, Missouri have overwhelmingly passed a cannabis decriminalization measure that replaces current criminal penalties with a civil fine and directs law enforcement officers to no longer target citizens for possession.

The measure, which passed 74-26 percent, amends local laws regarding possession of up to 35 grams of cannabis by adults 21-and-older, from a misdemeanor, previously punishable by up to six months in jail and a $1,000 fine, to a civil offense that carries a $25 fine with no arrest or criminal record.

Jamie Kacz, executive director of Kansas City NORML, said the vote brings an end to “the era of reefer madness in Kansas City,” adding that “no longer will otherwise law abiding citizens be targeted or arrested for the mere possession of marijuana.”

“We could not be more excited about the positive impact passing Question 5 will bring to the communities of Kansas City,” Kacz said in a statement. “We fought long and hard for this result and could not have done it without the support of our volunteers.”

Erik Altieri, executive director for NORML’s national organization, called the initiative’s passage “not just a victory for the people of Kansas City, but for the democratic process.”

“When concerned citizens stand up, stand together, and fight back against unjust laws, we will win,” he said in a press release. “The overwhelming majority of Americans want to end our nation’s war on marijuana consumers and politicians across the country should take heed of the message voters sent in Missouri: if you don’t reform our marijuana laws through the legislature, we the people will do it for you.”

End

Building in Annapolis, Maryland -- the state's capital city.

Maryland House Passes Bill Adding 5 MMJ Cultivation Licenses

4/05/2017

by TG Branfalt

Maryland’s House of Delegates have passed legislation that would allow five additional medical cannabis cultivation licenses after a study is conducted as to whether minorities had undergone discrimination in related industries, the Baltimore Sun reports. The study could yield legal justification for awarding the additional licenses to minority applicants.

The reform, which passed the House by a veto-proof 90-45 vote, was headed by the Legislative Black Caucus, who has been fighting for equity in the medical cannabis licensing – which is required under the state’s law – after none of the 15 companies initially awarded a preliminary cultivation license in August 2016 were minority-led.

The measure was opposed by both the companies that were selected for the preliminary licenses and most House Republicans.

Del. Cheryl Glenn, sponsor of the bill and chair of the caucus, said the bill’s passage shows that minorities will not be locked out of participation in the industry.

“Less than 1 percent of the licenses held in the entire country are held by African Americans and other minorities,” Glenn said in an Associated Press report. “I’m very proud at the state of Maryland that we are passing this legislation. Nothing is perfect, but this is really moving us along the path of having a fair system in the state of Maryland.”

Three minority-led companies that were denied preliminary licenses have pending lawsuits against the state’s medical cannabis commission, asserting that they failed to follow the letter of the law which requires regulators to “actively seek and achieve” racial and ethnic diversity in the industry.

The measure must still be passed by the Senate before being sent to the governor.

End

Colorado- Governor John Hickenlooper (center) talks with Agriculture Secretary Tom Vilsack (right) about how most Colorado schools have produce gardens to educate and supplement the schools nutrition program, during the National Governors Association Education, Early Childhood and Workforce Committee in Washington, D.C., on Sunday, Feb. 26, 2012. USDA Photo by Lance Cheung.

Hickenlooper Signs Bill Banning Cannabis Ads by Unlicensed Entities

4/05/2017

by TG Branfalt

Colorado Gov. John Hickenlooper has signed legislation making it illegal to advertise cannabis sales unless the advertiser is a licensed medical or retail cannabis provider, KOAA News 5 reports. The measure is meant to stem so-called gray market producers and sellers from advertising on sites like Craigslist, where many ads offer cannabis in exchange for ‘donations.’

The law, which takes effect in September, covers ads on the Internet, newspapers, magazines, handbills and other printed publications. Violators could be charged with a Level 2 misdemeanor drug charge if convicted.

The new law is the latest in Colorado aimed at stemming the illicit cannabis trade in the state.

In November, the Democratic governor called the gray market a “clear and present danger,” adding that illicit sales were “one of the things [he] worried about in the very beginning.” Last month, the Colorado House gave preliminary approval to a measure that would reduce the number of plants allowed to be grown at a patient’s residence from 99 to 16.

“Anything that the state legislators can do to clear up and eliminate the gray market is definitely beneficial for us,” Sean Mandel, Commander of Metro Vice, Narcotics & Intelligence Division, said in the report.

Currently, Colorado is the only state with legal cannabis that allows homegrows of more than 16 plants.

End

Extra crystallized cannabis cola from a licensed Washington cultivation site.

Australian Cannabis Researchers Net $466K Government Grant

4/05/2017

by TG Branfalt

Australia’s government is giving $466,000 to researchers who are hoping to improve how parts of the cannabis plant used for pain relief are extracted, according to a Herald Sun report. The pilot program, which will also research which cannabis crops grow best in Australia, will be conducted by the University of Melbourne, who have partnered with Under The Three Biopharmaceuticals.

The researchers say the project could lead to the development of a local cannabis industry – which they estimate could be worth $150 million annually with yearly demand for more than 17,600 pounds – and prevent patients from obtaining their medicine and treatments from the illicit market.

Education Minister Simon Birmingham said partnerships between universities and businesses allow some of the “best minds…to come up with solutions to problems Australia faces.”

“We’re backing this project because we can see the clear benefits of having local medicinal cannabis production and a local supply chain for the many patients that stand to gain from the use of medicinal cannabis products,” Birmingham said in the report.

According to the Herald Sun, the Victorian government harvested its first medicinal crop this year, and last month medical cannabis was imported from Canada in order to provide immediate treatment to 29 children suffering from seizure disorders.

Last month, Cannoperations Pty Ltd. was the first company issued a license to grow and harvest medical cannabis in Australia.

End

Indoor cannabis grow under California's medical cannabis regime.

Cannabis Industry and Unions At Odds in California

4/04/2017

by TG Branfalt

Cannabis companies and labor unions could be headed for a showdown in California over concerns about how deeply embedded the latter should be in the rapidly growing industry, according to a San Francisco Chronicle report. Under California’s medical cannabis law the International Brotherhood of Teamsters has first rights to transport and deliver cannabis products in the state; however such rights are not included in the language of the adult-use measure.

This disconnect will force lawmakers to determine which law takes precedence – Proposition 64 or the state’s medical cannabis laws. The state Legislative Council has indicated Prop. 64 takes precedence, but Barry Broad, the Teamsters’ state legislative director, said the vertically integrated structure under the voter-approved law – which allows growers and manufacturers to self-distribute – could lead to corruption.

“Right now 80 percent of the marijuana produced in California is sent to other states, which is illegal,” he said in the report. “We want to organize the industry, but we want to organize an industry that is well regulated. If you have vertical integration, you are watching yourself.”

Another union, the United Food and Commercial Workers, has partnered with the City College of San Francisco and Oaksterdam University in an apprenticeship course to help train individuals in some aspects of the cannabis industry; but parts of the UFCW plan has forced Dale Sky Jones, executive chancellor of Oaksterdam, to question whether the agreement is something they want to pursue.

Under the UCFW plan, the union would set training standards and provide trainees to the City College program, which would be partially funded for students by union dues, UCFW director Jeff Ferro said. Non-union students would only be allowed for an extra fee.

“The cannabis industry has traditionally been very sensitive to workers’ rights, and the people who have been working in cannabis tend to be happy,” Jones said. “They are not oppressed workers. So the question is, if the workers don’t need representation against management, then what are they getting for their union dues?”

City College spokesman Jeff Hamilton said the details of the program still need to be worked out and did not indicate whether the college supported the UCFW plan.

Ferro said that if cannabis retailers want to be a “traditional mainstream business” they must provide employees with retirement programs, access to skills and health, and welfare training programs.

“There are people in this business who are happy to work with us, and there are people in it who are angry they have to work with us, but the industry is going to have to contend with labor around cannabis in California,” he said.

End

Wide fan leaves off a licensed cultivator's crop in Washington state.

Governors from Adult-Use States Ask Feds to Maintain Status Quo

4/04/2017

by TG Branfalt

In a letter to Attorney General Jeff Sessions and Treasury Secretary Steve Mnuchin, the governors of Colorado, Washington, Oregon, and Alaska asked that federal authorities maintain Cole Memo and Financial Crimes Enforcement Network guidance that provides “the foundation for state regulatory [cannabis] systems” vital to maintain state control.

In the letter, dated April 3, the governors explain that overhauling the Cole Memo – a product of the Obama Administration – would “produce unintended and harmful consequences” and likely divert existing cannabis products into the illicit market. The governors say the policy guidance “strike a reasonable balance” between state and federal laws.

“Likewise, without FinCEN guidance, financial institutions will be less willing to provide services to marijuana-related businesses,” the letter says. “This would force industry participants to be even more cash reliant, posing safety risks to the public and to state regulators conducting enforcement activity.”

Last month, Sessions indicated that he may maintain guidelines set forth by the Cole Memo.

“The Cole Memorandum set up some policies under President Obama’s Department of Justice about how cases should be selected in those states and what would be appropriate for federal prosecution, much of which I think is valid,” Sessions told reporters in Virginia during a question-and-answer session. He added that while he “may have some different ideas…in addition to” the memo, federal authorities would “not be able to go into a state a pick up the work police and sheriffs have been doing for decades.”

End

A batch of cannabis clones in a row on a shelf inside of a Washington state cultivation facility.

LeafLink Seed Round Led by Lerer Hippeau Ventures

4/04/2017

by TG Branfalt

In their first investment in the cannabis space, Lerer Hippeau Ventures – who counts Buzzfeed, Venmo, and Casper among its investments – led e-commerce startup LeafLink’s $3 million seed round as the New York City-based company expands into Oregon and Nevada.

According to a company spokesperson, LeafLink is currently doing $65 million per year in orders for flower, edibles, concentrates, and topicals in Colorado and Washington through the year-old platform, with plans to launch next in California. Ryan Smith, LeafLink’s chief executive and co-founder, said the platform serves more than 800 Colorado and Washington retailers – more than 70 percent of the license holders in those states.

“Even though it appears we’re focused on the recreational market, what we’re really focused on is markets that are not vertically integrated,” Smith said in a Crain’s interview. “The platform is most helpful in connecting people who are really great at making THC-infused products and people really great at retailing those products.”

Eric Hippeau, a managing partner at the venture capital firm and former Huffington Post chief executive, said his firm had been “looking for companies providing infrastructure” to cannabis companies.

“We wouldn’t know where to invest when it comes to brands sold directly to consumers,” he said.

Although LeafLink is based in New York, they have no plans to serve the state’s medical cannabis market.

End

Big Pharma Positioning for Federal Approval of Cannabis Drugs

4/04/2017

by Craig Brand

In my most recent publishing, I wrote that our hemp/CBD industry was being hijacked from us.

“Us,” being those who have fought against the establishment (Government, the law, Big Business, corrupt officials, and those who have financial gain in opposing any cannabis resurgence) to legalize a plant that is embedded into the very fabric of humanity; a plant that was the first ever human planned commercial grow (approximately 10,000 years ago in Taiwan). This same plant is discussed at length throughout the bible for its influence and religious prowess, throughout history in trade, religion, social status and medical literature. This little green plant (a.k.a. Colorado Christmas Tree or Colorado lettuce) was used to create the fabric of the first Spanish vessels to sail across the Atlantic and reach the Americas, and to create both pages of the Declaration of Independence and the fabric used by Betsy Ross in sewing the original American Flag.

While we all believed that we have been making progress in the revitalization of cannabis, so too has Big Pharma – against our interests. We fought the fight for our weed, believed in its cause, stood up to the law to make our point, and finally uncovered the truth that cannabis was only outlawed over a collaborate conspiracy by Randolph Hearst in order to protect his newspaper and tree farm fortune, as well as the unconscionable actions of Harry Anslinger, the first commissioner of the U.S. Treasury Department‘s Federal Bureau of Narcotics (FBN).

Anslinger and the financially and politically connected Hearst demonized cannabis (which was the legal alternative to alcohol during the Prohibition years), in order to achieve their needs: Hearst to save his business empire and Anslinger to save his job, department and men, as Congress was repealing the Prohibition Act. Alcohol legalization would have ended Anslinger’s department. Cannabis never had a chance with Anslinger in public power.

Anyway, back to the point. While we have been fighting to legalize cannabis for our use, enjoyment, health benefits, and good old American entrepreneurship, the pharmaceutical industry has been opposing us, demonizing cannabis and denying any medical benefit whatsoever, so that they could continue selling us their expensive medicines.

If cannabis has no legitimate healthcare benefits, how can the FDA approve these companies’ studies and grant approvals? If the Pharmaceutical industry is correct and that there is no medical benefit in cannabis, then why should any of us buy their medicines?

While we were not looking, Big Pharma has been at work with the FDA in attempts at approval.

For example:

“Sativex,” manufactured by GW Pharmaceuticals. Sativex is a mouth spray that is derived from natural cannabis plant extracts, containing both THC (delta 9 tetrahydrocannabibinol) and CBD (cannabidiol). Sativex is now licensed to none other than the pharmaceutical giant Bayer, who last year merged with Monsanto. (It does not take much imagination to understand the damage to the independent cannabis industry that these two powerhouses could single-handedly manage).

“Dronabinol”/ “Marinol,” manufactured by Unimed Pharmaceuticals, a subsidiary of Solvay Pharmaceuticals. Given that cannabis maintains its status as a Schedule 1 Controlled Substance, Unimed couldn’t patent natural THC and thus would not be able to maximize profits, so it chose to develop a Synthetic Delta-9 THC! We shouldn’t touch the THC created by Mother Nature but we should trust in Big Pharma’s synthetic version. In any event, Solvay convinced the FDA to downgrade it’s medicine to a Schedule III. Thus, Mother Nature remains a Schedule I on par with cocaine, heroin, meth.

“Nabilone” / “Cesamet,” manufactured by Valeant Pharmaceuticals International. Nabilone is also a synthetic cannabinoid similar to THC.

“Dexanabinol,” manufactured by Solvay Pharmaceuticals – later acquired by Abbott Laboratories in 2010. Dexanabinol is a Synthetic THC used as naturally produced CBD enzymes in that it is non-psychotropic and blocks NMDA receptors and COX-2 cytokines. The medicine was promoted as a neuroprotective for use after cardiac surgery, a drug that helped regain memory and other high-level brain functioning following trauma as well as anti-cancer.

“CT-3,” manufactured by Indevus Pharmaceuticals. CT-3 was being promoted as a Synthetic THC that had strong anti-inflammatory properties. (Sounds like natural CBD to me).

“Cannabinor,” manufactured by Pharmos. Cannabinor is a Synthetic chemical that specifically binds to the brains secondary cannabinoid receptor (CB2). (Sounds exactly like what natural CBD does).

“HU 308,” manufactured by Pharmos. HU 308 was another form of Cannabinor and was also promoted as a Synthetic chemical that specifically binds to the brains secondary cannabinoid receptor (CB2).

“HU 331,” manufactured by Cayman Chemical. HU 331 according to the FDA write-up is a Synthetic chemical compound composed of central cannabinoid (CB1), peripheral cannabinoid (CB2), and non-CB receptor medicated pharmacology. Suggested use: memory treatment, weight loss, appetite, neurodegeneration, tumor surveillance, analgesia and inflammation. (Sounds like full-spectrum hemp oil).

“Rimonabant” / “Acomplia,” manufactured by Sanofi-Aventis. Pimped as a weight loss medication and smoking suppressant. It is a synthetic form of THC that blocks endocannabinoids from being received in the brain. This product does not appear to be permitted on the marketplace anymore.

“Taranabant,” manufactured by Merck. Taranabant was manufactured with cannabis related properties but ran into FDA problems when all of it’s test subjects were getting high!

For legal battle purposes, the cannabis industry should be yelling that cannabis is a safe, effective and natural alternative to the already legal and regulated alcohol and synthetic or chemically composed pills being pushed. This is different from trying to justify the legality of cannabis because of its health benefits, which only plays into the hands of politicians, haters, big pharma, USDA, and the FDA. Just look at recent medical cannabis proposed laws, many of which will only let you take cannabis in a pill form (with limited exceptions). Some states have even gone as far as written proposed legislation to have cannabis medicine dispensed only through a pharmacy with a prescription.

America, be careful what you wish for. Without realizing it, and without curving your marketing, you might be the cause of legalization – not for the ganjapreneur, but for Big Pharma.

End

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