The life of a business entrepreneur: glasses, laptop, determination.

Canopy San Diego Launches Spring Accelerator Program with 8 Companies

4/04/2017

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Canopy San Diego has chosen eight companies for its Spring 2017 accelerator program, including a “turnkey” laboratory technology company, a ticketing and registration platform for cannabis-centric events, a peer-to-peer social marketplace for cannabis friendly accommodations, and a customer experience management platform.

The companies will be given office space for up to four employees, receive at least $20,000 in seed capital, and be eligible for another $50,000 in follow-on funding prior to graduation. Six of the eight companies are based out of San Diego, California.

“We’re excited to have such a diverse spring class of startups that perfectly complements our Fall 2016 cohort, and gives our investors a balanced portfolio of early-stage cannabis tech companies,” Jack Scatizzi, managing director of Canopy San Diego, said in a statement.

The companies selected for the program include:

San Diego-based Urban Labs, described as “the first scalable cannabis laboratory to embrace the peer to peer economy,” who offer “turnkey technology and processes” to “de-skill” previously complex lab processes into affordable business opportunities.

Traffic Roots, also based in San Diego, a digital display advertising company who plan on introducing a programmatic self-serve advertising platform.

MJ Hybrid Solutions, a San Diego-based start-up training platform that “aims to fill the cannabis sales voids with compassion to increase company profits and retain customer loyalty.”

San Diego’s EventHi, described as “the world’s first ticketing and registration platform that is built for the cannabis culture.” The company plans to offer an online technology where app users can buy event tickets, verify their medical cannabis program registration if required for the event, buy merchandise, and write reviews.

Verticann, a San Diego company that offers turnkey vertical commercial cannabis cultivation that claims their design can halve production costs “while increasing the canopy size by up to 500 percent” compared to traditional methods.

Collectif, a San Diego-based peer-to-peer marketplace for cannabis-friendly accommodations and “cannabis-inspired experiences.”

Oregon-based Ripe Metrics, who plans to offer a customer experience management system with “analytics and marketing automation” to help dispensaries increase engagement in order to increase customer lifetime value.

And;

Toronto, Ontario, Canada’s BudTendr, a mobile app which allows users to purchase medical cannabis licensed dispensaries through mobile devices through licensed dispensaries.

Canopy San Diego holds a 6-9.5 percent equity stake in each of the companies accepted into the accelerator program. Between Canopy San Diego and Canopy Boulder, the accelerator network holds a combined portfolio of 64 companies.

 

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Business taxes are in the cannabis industry are made extremely complicated by the plant's federally prohibited status.

Is This the End of Section 280E?

4/03/2017

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Recent legislation introduced in the Senate and House of Representatives would end the federal prohibition of cannabis and replace it with a system that would regulate and tax marijuana in a manner similar to alcohol or tobacco.

According to a press release dated March 30, 2017,

Bills filed by Sen. Ron Wyden (D-OR) and Rep. Jared Polis (D-CO) would remove marijuana from the Controlled Substances Act, leaving states to determine their own marijuana policies, and impose federal regulations on marijuana businesses in states that choose to regulate marijuana for adult use. Wyden’s bill would also enact a federal excise tax on marijuana products. In the House, the tax is being proposed in a separate bill introduced by Rep. Earl Blumenauer (D-OR).

Wyden and Blumenauer also filed marijuana policy “gap” bills that would eliminate many of the collateral consequences associated with federal marijuana convictions without removing marijuana from the Controlled Substances Act.

That legislation has been introduced in the House and Senate, where it will be argued by the various chambers. The House and Senate must come to an agreement in order for an Act to be contrived for the president to sign. The president could either sign or veto the bill; if vetoed, it would return to Congress and they would need a three-fourths majority vote to override the veto.

Who knows what will happen with this legislation — but if it becomes a law, it would end Section 280E. Dispensaries and growers would be able to deduct salaries, rent, and all other necessary and ordinary expenses, just like any legal business. This would be huge for the legal cannabis industry.

Section 280E says:

No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.

Tax Court has left the door open for tax accountants like me that look for ways around a stupid and oppressive law. What is typically done in states that allow it is the dispensary does some other business in addition to being a dispensary as a way to write off the expenses other than Cost of Goods Sold (COGS), which is basically the cost of the cannabis for dispensaries. If the state doesn’t allow it, then a creative way of calculating COGS is done.  

This legislation would also open banking opportunities up to dispensaries and growers; the only thing they would still have to fight is the stigma following the cannabis industry.

A big reason behind this bill’s introduction is Congress having seen what a cash cow cannabis could be. Every state with legal cannabis has imposed taxes on it, some as high as 15%. If you reread the excerpt of the press release, it mentions an excise tax similar to alcohol.  

One thing is certain — I will be watching this closely and updating you as news arises.

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Colorado Takes Back 4/20 with 5th Annual World Cannabis Week

4/03/2017

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The OG of cannabis festivals, World Cannabis Week, is taking over the city of Denver for a full celebration of cannabis culture from April 19 – 23, 2017. The 420-friendly events will give locals and visitors to Denver ample opportunities to get lit with the most innovative and popular cannabis brands in the country – while also learning about the state of cannabis from industry experts.

The week-long celebration of Colorado’s billion-dollar cannabis market allows consumers a safe and legal way to consume with 420-friendly hotels, consumption areas, and free 420-friendly shuttles between events.

Dubbed the “SxSW of Cannabis,” the Denver-based World Cannabis Week will have informative, and interactive experiences for consumers. For those looking to kick back and relax, there’s promise of hefty dispensary discounts, and amazing swag (sometimes reason enough for some to attend)!

For music lovers, there’s the highly-anticipated return of Redman and Method Man to Colorado’s beautiful outdoor stage, Red Rocks Amphitheater, for a ‘420 Eve on the Rocks’ concert.

For 2017, World Cannabis Week is introducing a network of My420Tours luxury cannabis consumption shuttles, free for registered attendees. One of the shuttle stops will bring cannabis enthusiasts to the mecca of cannabis reform in the state that started it all – the legendary 420 Rally in Downtown Denver.

The pro-pot rally is held yearly, on 420, at 4:20 at the city’s Civic Center Park.

Another must-see stop on the 420-week itinerary is the new 420 Bazaar – a private event hosting over 50 vendors, food trucks, art installations, live entertainment, and private consumption areas.

Admission to the 420 Bazaar is free for those who register ahead of time.

A special cannabis-themed scavenger hunt is also slated for the weed-centric week. The game is an added, interactive element to World Cannabis Week, and registered attendees can win prizes

So, while The High Time Cannabis Cup uproots itself and moves further West, Denver’s World Cannabis Week remains rooted in the Mile High City as the premier event to bring together budding entrepreneurs, sophisticated cannabis lovers, and industry professionals.

Calling all ganjapreneurs!

The people behind World Cannabis Week are still looking to highlight and invite cannabis-focused businesses to participate in what may be the largest World Cannabis Week to date.

For more information on World Cannabis Week and to register for free, visit  www.WorldCannabisWeek.com.

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Cannabis Club in Modesto, California Provides Cannabis Oil to Kids and Support for Parents

4/03/2017

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A cannabis club for children has opened in Modesto California where kids can obtain CBD oil and families can network with others who are using cannabis products to treat their children, according to a Fox4KC report. Jason David, the president of Jayden’s Journey, named after his son, said the dispensary is necessary because “when a child is sick the whole family is sick.”

Among David’s patients is 6-month-old Zya Mao, who suffers from epilepsy. Her father, Jhoson Mao, believes cannabis oils are a better alternative to prescriptions and his daughter’s doctor is not advising against it.

“We noticed… she feels present, her eye is not as wobbly as it used to be,” Mao said in the report.

Sherry Poe, the mother of 8-year-old Zoe who suffers from ADHD ADD extreme, said her daughter “started getting ticks” and “crying all the time” while on prescription drugs, and at one point told her mother “she didn’t want to live anymore.” Zoe has been using cannabis oil for a year and a half.

“She sleeps. She’s gained weight,” Poe said. “She’s happy; she smiles; she laughs.”

“If it doesn’t work, throw it away,” David said for parents considering using cannabis oil treatments for their children. But for many patients, he said, “it changes your life like it changes my son’s life.”

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Amendment to Bill in West Virginia Would Explicitly Legalize Hemp-Derived CBD in the State

4/03/2017

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West Virginia lawmakers have clarified language in a bill adding substances to the drug schedule that would allow the sale, distribution, and prescription of hemp-derived CBD oils, according to a Herald-Dispatch report. The amendment differentiates between CBD products derived from hemp and CBD derived from cannabis plants containing more than the .3 percent THC allowable under federal law.

The changes by the Senate Judiciary Committee were made after the Director of the West Virginia Hemp Industries Association Morgan Leach said the original version would cause confusion regarding CBD classifications.

Leach indicated that making the “cash crop” available will help the state become “a catalyst for entrepreneurship and innovation.”

“This revision protects West Virginia hemp farmers’ ability to cultivate and process hemp for CBD. This is one of our biggest revenue streams that will help make our farmers more money as they begin to develop this crop in West Virginia,” Leach said in the report. “Our goals are to (build) industries around food products, dietary supplements, cosmetics and topicals, paper, textiles, bio-plastics, advanced battery technologies and much more.”

Democratic state Sen. Bob Beach, whose wife teaches an industrial hemp course at Pierpont Community and Technical College, said lawmakers are still undergoing an “education process” with regard to hemp.

“Any time you can clarify sections of code, it’s a positive step in the right direction with any piece of legislation,” Beach said. “In this particular case, it’s definitely a step in the right direction.”

The measure has been sent to the Senate with a “do-pass” recommendation.

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New Zealand Police Confiscate MMJ Supply of Tetraplegic

4/03/2017

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Police in Auckland, New Zealand have confiscated the medical cannabis supply of a 25-year-old tetraplegic that his family had hoped would have lasted him through the rest of the year, the New Zealand Herald reports. Ben Clifford, who has been a tetraplegic since 2015 after breaking his neck diving into a swimming pool, uses cannabis to help control his spasms and muscle pain.

“It can mean the difference for me not being able to drive my powerchair, to being able to drive it,” he said in the report.

Shortly after the police left, his Accident Compensation Corporation-funded Life Plus caregiver – which he requires around the clock – was pulled from the home. Clifford said the ACC, Life Plus, and all of his caregivers knew about his cannabis use.

Kellie Atchison, Clifford’s mother, was told the caregiver was pulled due to “health and safety reasons.”

Hans Wouters, chief executive of the New Zealand Spinal Trust, said caregivers are usually only pulled in “extreme” cases where there is an “extreme danger, like weapons or anything where the carer is in danger.”

“It is extremely unusual in New Zealand,” he said.

Life Plus General Manager Michelle Batchelor declined to comment to the Herald because, “it is part of an ongoing police investigation.”

New Zealand does have a limited medical cannabis program, although it is not clear whether Clifford was authorized under the laws. No one was arrested at the home, which Atchison shares with Clifford and his six-year-old daughter Alizay.

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Jeff Sessions Found High Having Heart-to-Heart with Lincoln Memorial

4/01/2017

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WASHINGTON, DC – Attorney General Jeff Sessions says he isn’t a “bad person” after he was discovered smoking pot at the Lincoln Memorial late Friday evening, but claims he had a conversation with the 16th President that was “mind-blowing.”

Sessions admitted that it was the first time he had consumed marijuana, adding that he “felt great” but was “hungry as a opossum during a Mobile summer.”

“Look, I know I’ve said some things, made some comments, that I now regret,” Sessions told reporters at the Justice Department. “President Lincoln, well, he sat with me on those stone steps, took a toke – I think that’s what it’s called – and helped me realize that it’s time to reconsider the status of cannabis in this country.”

While the White House admits it’s “unnerving” that Sessions believes he actually spoke to Honest Abe, Press Secretary Sean Spicer said it was about time Sessions “chilled out.”

“Jeff, he’s a guy with a lot of experience – he’s a grandpa and a baby simultaneously which, I know, is very tough to have no idea what is going on at all. It’s all still very strange and we are still trying to work through some of these issues that are killing the buzz of the entire White House staff and advisers and those that work in the highest levels of government,” Spicer said, adding that “it’s not like it’s illegal for an adult to possess marijuana” in the district.

Officer Reggie Walter, the Capitol Police officer who found the Attorney General, said he was “relieved” Sessions had a change of heart. “I was worried that I would actually have to start arresting people for weed again,” Walters said following Sessions’ press conference.

President Trump® chimed in with one of his trademarked Tweet-decrees:

When pressed about where he obtained his stash Sessions replied, “Not the National Institutes of Health, that’s for sure.”

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Delaware Lawmakers Confident They Have Enough Votes to Legalize Adult-Use Cannabis

3/31/2017

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Lawmakers in Delaware claim they have the votes to pass legislation that would set up a regulated and taxed cannabis industry in the state; however they are faced with opposition from the Delaware Police Chiefs’ Council and Democratic Gov. John Carney, the News Journal reports.

State Rep. Helene Keeley and state Sen. Margaret Rose Henry, both Democrats, estimated that a legal and regulated cannabis market could generate $22 million in tax revenues for the state during its first year.

“As the only state in a seven-hour drive to have legalized marijuana, we would become a destination that would attract out-of-state sales, which would have a benefit to our Delaware businesses,” Keeley said in the report.

Although the state faces a $386 million budget deficit, Henry said legalizing cannabis is “a social justice issue” rather than budgetary, indicating that the measure works to that end by legalizing “something that people always have done and are doing.”

Jeffrey Horvath, executive director for the Delaware Police Chief’s Council, said the only positive thing he could say about the measure is that “it generates revenue.”

“Unfortunately, there’s a lot of negatives that also come with it, and we’re against the bill,” he said, adding that law enforcement officials in Colorado have told him “the black market is stronger” than before legalization and “teen marijuana use also has increased.”

According to the Governor’s Office, Carney would prefer that the state get its 6-year-old medical cannabis program fully functional and have more time to study legalization in other states before Delaware makes any more reforms.

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A baby hemp clone starter plant.

Vermont’s Lax Industrial Hemp Rules Driving Cottage Industry

3/31/2017

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A hemp cultivation permit is easy to come by in Vermont – for an annual fee of $25, anybody can register with the state to grow the crop so long as they verify that the plants fall below the 0.3 percent THC federal government threshold defining the plant as “hemp.”

These loose restrictions, codified in 2013, have led to a cottage hemp industry in the Green Mountain State – one that advocates say lays the groundwork for a more robust industry while allowing smaller operators to stake their claim in a still nascent market.

Concerned over potential federal interference in the 2018 farm bill which will either “blow [the hemp industry] wide open…or completely destroy it,” Joel Bedard, CEO and Founder of The VT Hemp Co., thinks this year’s grow is integral to the success of hemp cultivators in the state. The VT Hemp Company, which holds a hemp research permit from the DEA, works to link cultivators with processors, and ultimately get hemp-derived products to consumers.

“I recognize that [the hemp industry] is entirely white space – complete rebuild of an economic opportunity – but I also recognize that hemp is an international commodity crop,” Bedard said in a phone interview. “So it’s not like we can just make up new rules – it’s more like we have to take existing rules and translate them into a contemporary opportunity.”

Bedard and his team are hoping their partnerships solve two key issues for would-be hemp farmers: securing both seed and processing equipment. Vermont, Bedard explains, is not compliant under Section 7606 of the 2014 Federal Farm Bill. “That is to say that the state didn’t take on the role of vetting individual applicants and the state is not dealing with the DEA,” he said, adding that most people growing hemp in the state are in violation of federal, but not state, laws.

This violation makes it impossible to export hemp crops (legally) over state lines and makes even in-state sales risky, which has forced some permit-holders to cultivate primarily for research; albeit there are operators in the state hoping to cash in on the “gold rush” that is hemp-derived CBD, Bedard said.

Bedard’s permit from the DEA is as such that he can extend his license to others, putting them in compliance with federal rules and 12 farmers – in Vermont, New York, and Colorado – used that option last year, working with Bedard to produce textiles, hemp seed, and “any cannabinoids that we extract.”

Rye Matthews, 26, an ecological designer, partnered with Bedard to grow a half-acre test plot last summer which yielded about 300 pounds of seed but, lacking the necessary equipment, he didn’t process the straw. Matthews has since purchased 15 acres of land outside of Burlington and plans to use the seed derived from the test grow for a larger plot this summer rather than sell it off or process it for food or oil.

“We could have done a number of things, but it’s more important to build up our seed supply for the next year,” he said. “We haven’t made any money off of this but the couple years that we’ve been working at this we’re finally at a point where we can make this a real business.”

Matthews, who majored in environmental science at the University of Vermont and currently works in the sustainable building materials sector, indicated that he eventually hopes to help popularize hempcrete in the state but right now the cost to import the hemp is “prohibitive.”

Monica Donovan, publisher of Heady Vermont who grew her own research plot for CBD extraction last summer, said she has seen a “rapid growth of the CBD and hemp industry” in the state in the absence of either “a great medical system” or adult-use legalization. She said the number of CBD products available for sale in the state has “exploded” over the last year due, in part, to the proliferation of small hemp farms no larger than 10 acres.

“I think you’ll see that [CBD] is what most people are getting really into,” she said. “There’s definitely some fiber hemp going on – some oil seed – but I think the area of rapid growing interest is definitely CBD.”

Photo Credit: Rory Savatgy

Another factor Vermont cultivators need to consider is the sheer amount of space one would need to grow a viable, lucrative, fiber hemp crop. “You’d need hundreds of acres to even begin to compete with Kentucky,” Donovan said.

Heather Darby, professor of agronomy at UVM, said she “had to fight” to launch an industrial hemp research program at the university due to concerns that the school would lose its federal funding. The year-old research project, for which the university holds a DEA license that allows them to import seed, aims to evaluate the end-uses, planting and maturity dates, and cultivation methods of different hemp varieties grown worldwide. This year the research program’s scope will be expanded to include organic fertility management for hemp crops, she said, hopeful that ultimately they would discover the best variety for the state, already armed with information on controlling pests, mold, and yields. “I want agriculture to thrive in Vermont and I saw this as an opportunity for some farmers to be able to produce a value-added crop,” she said.

Darby explained that the UVM program has partnered with hemp seed companies in an effort to set up a certification program to help make more seed available to farmers and ensure they are planting federally legal crops. She said that there are “a few farmers” in the state growing between 10 and 30 acres of hemp for seed and grain; and, while many more “seem interested,” the “seed barrier is keeping the industry from expanding.”

“If we can do this [certification program] in Vermont they would have access to seed,” Darby explained. “Then you are able to start an industry…Some of the people are buying seed from God-knows-where doesn’t even fit into our growing climate and they’re paying a lot of money – and it’s dangerous – you don’t know if it’s federally legal.”

Much like the rest of the nation, the success, or failure, of Vermont’s hemp industry is dependent on action – or inaction – by the federal government. However, researchers and entrepreneurs are hopeful that this is just the beginning of a cooperative industry that will ultimately benefit the state’s farmers.

“Everything I can grow right now has already been sold,” Bedard said.

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The West Virginia Capitol Building in Huntington, West Virginia.

West Virginia Legislature Fast Tracks MMJ Bill

3/31/2017

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A West Virginia bill to legalize medical cannabis passed the Senate and has been fast-tracked through a first reading in the House of Delegates, the Herald-Dispatch reports. The measure passed the Senate 28-6 on Wednesday – on Thursday, Republican Del. Michael Folk motioned to skip sending the bill to House committees for consideration which supporters said would have been a death sentence for the measure this late in the session.

Folk’s motion passed the House 54-40, allowing it to move to a second reading and making it eligible for amendments today.

Opponents against the motion argued that moving the bill forward without a committee hearing was reckless and would prevent the medical cannabis framework from being implemented in a responsible manner, if approved. Delegates indicated that they had been inundated with constituent calls about the bill.

“Like every member of this body, I can’t count the number of emails and phone calls I received on this subject today,” Del. Mike Pushkin, a Democrat, said in the report.

The measure, based on Maryland’s medical cannabis law, would allow patients with approved conditions to access medical cannabis in the state, and allow them to grow up to two plants in their homes. The measure would set up a Medical Marijuana Commission, which would need to file its first report – before the program could be rolled out – in September 2018.

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Two Silver Star Haze plants in full bloom.

South Africa High Court: Laws Barring Private Cannabis Use by Adults Unconstitutional

3/31/2017

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South Africa’s Western Cape Town High Court has ruled that it is unconstitutional to prohibit cannabis use by adults in private homes, paving the way for reforms that will allow adults to privately cultivate, possess, and use cannabis, according to a News24  report.

In the decision, Judge Dennis Davis also directed Parliament to change sections of the Drug Trafficking and Medicines Control acts within 24 months.

The suit was filed by Dagga Party leader Jeremy Acton and Rastafarian Garreth Prince, who argued that some of the sections of the Drug Trafficking and Medicines Control acts are discriminatory, outdated, or unfair, and applied disproportionately to black individuals. The duo has been obtaining stays of prosecution for people arrested for possession pending the outcome of their case.

Prince previously petitioned the Constitutional Court to decriminalize cannabis for religious purposes, however his plea was denied in that case.  He was first arrested for possession in 1989 while studying law at the University of the Western Cape. After graduating he applied to the Cape Bar to be admitted to practice law and was denied due to the previous cannabis conviction. He was arrested again in 2012 for growing cannabis in his garden.

According to News24, the judgment does legalize sales.

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Someone cradles a loose cannabis leaf in the palm of their hand.

Canadian Broadcasters Deny Cannabis and Hemp Expo Ads

3/31/2017

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At least two of Canada’s largest television broadcasters have denied ad buys by the Cannabis and Hemp Expo set to be held in Calgary, Ontario in May, CTV News Calgary reports. The rejections from Bell Media, which owns CTV, and Rogers Communications are due to laws that outlaw cannabis advertising in Canada; the logo for the expo also contains a hemp leaf and the word “cannabis.”

“CTV attempted to work with the client to ensure their creative conformed with statutes pertaining to promoting directly or indirectly the sale or disposal of a drug…however the client chose not to move forward with the campaign,” Bell Media said in a statement.

Terra Connors, a representative for Canwest Production, who puts on the event, said there won’t be any actual cannabis at the expo but it counts licensed producers, dispensaries, and headshops among the exhibitors.

“We understand to a point. I mean, nobody wants to portray illegal activity or anything but that’s not the case,” Connors said in the report. “We’re a legitimate business, promoting a legitimate trade show and we are not doing anything illegal.”

Broadcasters who break the cannabis advertising laws could be hit with fines between $250,000 and $5 million.

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Richard Cranor: Blasting Off With ‘Star Leaf’ Brand Cannabis

3/31/2017

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Richard Cranor is the creator and director of ‘Star Leaf,’ the sci-fi horror/comedy about an alien strain of super-potent cannabis and the group of enthusiasts who seek it out deep in the Olympic Mountains; the film pursues and explores the deeply personal connections that many people discover when using cannabis.

Richard recently launched Star Leaf brand cannabis products in Washington’s I-502 marketplace as part of his continued dedication to “the Star Leaf universe.” In this written interview, we ask Richard about his inspirations for the film, his experiences learning to navigate the 502 marketplace, and how his career as an artist has influenced the decisions he faces while expanding a cannabis-centric enterprise.

Could you talk about your inspiration for creating Star Leaf, the film?

I had a brother return from Iraq with a pretty bad case of PTSD. I also had stage 3 testicular cancer in 2010. Both experiences made me realize how important it is to have alternatives to what the status quo considers to be “healthcare”. Nature provides a lot of opportunities for healing, but I truly believe there are forces in our society more concerned with profit than our well being, and that ultimately undermines a lot of opportunities to find real health and prosperity within our culture. I kept coming across accounts of how Cannabis and certain psychedelics really helped people overcome serious trauma, both physical and mental. To me, plants act as chemical gateways that alter our conditioned neural pathways so we can suspend our five sense programming long enough for deeper insights to emerge from our collective unconscious, something we all share and is a source of great healing. So it’s really important to have free access to the plant kingdom without those in our society with less than altruistic motives mucking up the process. So Star Leaf is about helping people see what cannabis really does offer, besides the usual stoner tropes often associated exclusively with it.

When did you decide there would be an accompanying brand of cannabis products for the film?

I had to have actual weed in the film, since fake cannabis plants range about $400.00 each. With our low budget, that was out of the question. I had also always thought it would be great to have a film that raises consciousness about alternative health treatments and PTSD, but then also have a real life product that can actually physically help with those issues! So it was a win-win in my opinion to always push to have a film about cannabis and actual cannabis to go with it, hoping to achieve a synergistic purpose and effect. A lot of great films out there do a lot of good to inspire people, but if ours could have an actual “tool” to “explore the universe” as we say, alongside watching the film’s philosophical themes play out, man…how can you go wrong?

How have Washington’s I-502 regulations complicated your business plan?

We actually had a strain going for a while before I-502 came out, with the help of a local medical grower. People loved it. But as soon as the I-502 legislation came into effect, we had to shut down that arrangement. Luckily for us we’ve found a great partner with Phoenix Cannabis that is producing some really quality stuff. But it took a lot of education and wrangling on our part to find the right business solution that benefits all partners. It’s working, so that’s a good thing.

What was your vetting process like when choosing the right grower to partner with to create the Star Leaf strains?

People in the medical side of cannabis, former patients who’d gone to dispensaries for years, they became big supporters of Star Leaf. We really didn’t want to let them down when we were required to comply with I-502 laws and regulations which focus mostly on the needs of the recreational market. We chose Phoenix Cannabis for several reasons. One they use organic farming methods to produce some great cannabis and we feel that lives up to the Star Leaf ethos. Two, they have been cultivating at a commercial scale since I-502 legalized production and are very focused on quality and consistency of their product, the hallmarks of branded products. Phoenix also is committed to their standards no matter how the market fluctuates. We like that. There’s a lot of juggling to do with the changing landscape of legalization and the supply and demands of a recreational market, but we have found Phoenix Cannabis to be a very solid, trustworthy partner.

Where do you see the Star Leaf brand in five years? Is there perhaps a sequel to the film — or plans for new products — in the works?

On the cannabis front, we’re still actively moving forward with a strain high in CBD medicinal strain specifically for help with PTSD. We feel that is an important offering aligned with the themes of the movie. Assuming the flower products continue to enjoy great success, it also would be natural to expand into edibles and concentrates. We also have a rather unorthodox product in the works, but that’s for another time. We offer Star Leaf paraphernalia, DVDs, apparel, and other items for sale as well. We also hope that by this time next year, Star Leaf will have landed in other states too.

A sequel is definitely in the works. We are currently shooting a small web series that promotes our current cannabis line, and stores, budtenders, and fans of Star Leaf in general will be a part of it. It’s a very unique opportunity within the cannabis world right now, and as far as we know, we’re the only ones doing it. We don’t want to be that corporate “brand” whose headquarters is a 5000 miles away, out of touch with what’s really going on with their customers and community. It’s much more fun to be intimate and personal, sharing the Star Leaf culture with everyone and having everyone interact and add to it in some way. We’re lucky in the sense that our “brand” isn’t just about a look or sense of “status”, but is more about vision and shared ideals for a better world through scifi cannabis movies and products, which believe it or not, I think are working. Many of the modern world’s greatest innovations were influenced by scifi movies and authors (Star Trek,anyone), and we’re happy to leading the way with Star Leaf in the cannabis space.

Wow, were you concerned about filming with live plants in Washington state, where personal grows remain illegal even though possession and consumption are allowed? Also, were these plants grown specifically for the movie and, we have to ask, what eventually happened to the plants that appear in the film?

I knew I needed real plants not just for authenticity’s sake but also for the plain fact that if the movie failed, at least we could sell the weed, right? Actually just kidding… we were given 30 plants from Ohana Farms out of Bainbridge Island, WA to be specifically planted and grown for a medical co-op community garden. This was back before i502 came into effect when you could grow up the 45 plants for medical patients. This “Garden of Weeden” as we say in the film served two purposes then, to both serve as medicine for patients and my film set for the film. We selected several key strains though that could eventually form the genetics of an eventual Star Leaf strain which I had always wanted to create in real life, and made sure the patients were ok with those choices. The plants worked great for filming purposes, but we were forced to plant late in the season (July) and outdoors which in Washington state is very risky due to how wet things get out here. I unfortunately had to go to China for a business trip and leave my plants unattended for a week and when I got back, a mold infestation had destroyed most of the plants. We also lost one plant to a slug earlier on. So none of the plants ever made it into anyone’s bong unfortunately.

How many people who worked on the film have been involved in the new cannabis line, and how many people currently work for Star Leaf Enterprises?

Star Leaf Enterprises is not actually a cannabis grow operation. The company markets a variety of products and merchandise that are related to the movie and its themes. Importantly to us, we have now added cannabis to that product line. Administratively, we essentially license the Star Leaf brand to cannabis grow operations who are 1) committed to product quality and consistency, and 2) aligned with our message of consciousness exploration and alternative health and healing. Currently, we have a small team of entrepreneurs navigating the business opportunities and engage outside consultants as needed for legal, accounting, marketing, agricultural, and other business concerns.

What’s the toughest obstacle you’ve had to overcome in your journey with Star Leaf, so far? And what’s been the most rewarding?

First off, anytime you tell someone you’re going to make a serious alien weed movie that’s going to bring awareness to issues like PTSD – as well as expose an ET conspiracy to control humanity by using trauma as a backdoor into human minds, you’re going to be greeted with a fair amount of skepticism. That’s fine, because I love to surprise people with the unexpected.

Second, the hardest thing is the film business itself is pretty much bankrupt for independent filmmakers. Bootleggers make it impossible to get a decent ROI off your film. Unless you’ve got Alist talent and huge marketing budgets, making a profitable independent film is extremely difficult. But my goal was never really about making a one-off film, I wanted to create a world and culture where a lot of different and important things, some of which are very underrated in their importance to the public, come together to serve and help everyone taking part in the culture. The movie (and coming sequels) are there to frame the issues and worldviews we all share and want answers to in our real life and the cannabis products are there to help ground the philosophical models in a body reality.

Somehow I managed to convince a lot of very sane people to try and make a very insane idea reality real and it’s actually working better than anybody ever thought. So that is both the most challenging thing and most rewarding thing at the same time, to see this dream actually coming true. I would say the most rewarding thing is when anyone whose experienced PTSD or some kind of trauma say the film has helped them. That means a lot, because it means me and my partners have succeeded in a way the bottom line can’t accurately measure, yet it still leaves us all with a sense of worth and wealth and a job well done. One thing I find really rewarding personally is we’ve just added a high CBD strain to our line of products, which is a huge win for me. We don’t want to leave the medical people behind who supported us so much in our early days, and were going to continue to try and bring more medical products to a recreational dominated market as much as we can while living in today’s business reality.

Do you see Star Leaf expanding or franchising into cannabis markets outside of Washington state?

We’re very excited to bring the Star Leaf experience to as many consumers as we can. Expanding the brand to additional states is an obvious next step. We have recently begun the process of identifying and vetting growers and/or processors in other pro-cannabis states who are interested in joining the Star Leaf universe via a licensing arrangement.

With so many artists who are undoubtedly interested in the cannabis space, could you share some advice for how to apply your artistic passion to this unique industry?

You can’t think about it from a money point of view, at least at first. You need to be conscious of business realities, but if you are just trying to “take” money from others, you’re not going to be plugging into your greatest potential. My brother’s PTSD from Iraq and my own journey with cancer and a kundalini awakening forced me to wake up to the realities of a bigger world, and how I might try and contribute to making it better. That belief in conviction is what will get your through the dark moments where your dream fades and you think it’s going to fail, and its the only thing that will inspire others to give their 120% as well. It’s also something that your customers will innately sense about you and they’ll trust you because of it. You can’t think of your ‘product’ as something that is bought and sold, but something that gives value to people’s lives, and I don’t mean monetary value. If you’re an artist, your job is to act as a shaman really for our modern western culture, which doesn’t have true medicine men and women anymore. Even if you’re just selling a pipe with really cool carb technology in it, be sure to make your product and business model give service and inspiration to the community it sells to beyond just whatever cool features the product may have innately.

I feel nowadays people want to invest in “brands” that represent their values. So make sure your values and your business plans are always congruent. And honestly, the more raw passion and emotion you feel, the more you need to channel it and not be afraid of what people tell you is right or wrong, smart or stupid. You just need to go for it – and find like-minded friends and partners willing to invest in your vision. If you’re not an egomaniac and your idea is actually pretty good, chances are your friends/partners will help you define your vision more clearly and find the flaws in it to make it better and compete in a real business reality.

I’ve definitely made some mistakes along the way, but I’m proud of the fact that I found a way to combine my artistic talents with an altruistic motivation that eventually led me to find the right partners to create a business model that is working and expanding at a miraculous rate. But that never would’ve happened if I didn’t believe in the value of the art itself and it’s bigger mission. So if you’re thinking about the cannabis space, be sure your values are aligned with those traditionally held by the cannabis community, and don’t just think you can make a fast buck selling weed.

Thanks for taking the time to answer our questions today, Richard! To learn more about the film Star Leaf, visit www.starleafmovie.com. To find and purchase Star Leaf brand cannabis, you visit Clear Choice Cannabis in Tacoma, Washington.

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Professionally grown cannabis inside of a licensed Washington cultivation facility.

Sweeping Bipartisan Marijuana Legislation Introduced in U.S. House & Senate

3/30/2017

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In a key development, Rep. Carlos Curbelo (R-FL), Republican member of House Ways and Means Committee, joins Rep. Earl Blumenauer as lead sponsor of critical 280E tax reform bill

WASHINGTON, DC – Today, a bipartisan group of U.S. senators and representatives introduced seven measures to advance more sensible cannabis policy at the federal level. The bills covered a broad range of issues related to resolving the tension between state and federal cannabis laws.

“The flurry of bills on the Hill today are a reflection of the growing support for cannabis policy reform nationally,” said National Cannabis Industry Association (NCIA) executive director Aaron Smith. “State-legal cannabis businesses have added tens of thousands of jobs, supplanted criminal markets, and generated tens of millions in new tax revenue. States are clearly realizing the benefits of regulating marijuana and we are glad to see a growing number of federal policy makers are taking notice.”

The Small Business Tax Equity Act of 2017, introduced in the House by Rep. Carlos Curbelo (R-FL) and Rep. Earl Blumenauer (D-OR) and in the Senate by Sen. Ron Wyden (D-OR), Sen. Rand Paul (R-KY), and Sen. Michael Bennet (D-CO), would allow state-legal cannabis businesses to take normal business deductions like any other legal business. Currently, the law prohibits cannabis businesses from deducting expenses related to sales.

“Cannabis businesses aren’t asking for tax breaks or special treatment,” said Smith. “They are just asking to be taxed like any other legitimate business. NCIA and its members appreciate this strong support for a fair approach, and we’re especially proud to newly gain that support from Rep. Curbelo.”

The Regulate Marijuana Like Alcohol Act, introduced in the House by Rep. Jared Polis (D-CO), would regulate marijuana like alcohol by inserting marijuana into the section of the U.S. Code that regulates “intoxicating liquors.” It would give oversight authority to the Bureau of Alcohol, Tobacco, Firearms and Explosives, and would establish a permitting system to cover the cost of that oversight.

The Responsibly Addressing the Marijuana Policy Gap (RAMP) Act, introduced by Sen. Wyden and Rep. Blumenauer in their respective chambers, covers a broad range of issues at the federal level, including banking and tax fairness for businesses, civil forfeiture, and drug testing for federal employees. The two Oregon officials see the provisions in this bill, collectively, along with the other two bills introduced today, as the “Path to Marijuana Reform.”

The Marijuana Revenue and Regulation Act, introduced by Sen. Wyden and Rep. Blumenauer, contains the provisions included in the Marijuana Tax Revenue Act and the Regulating Marijuana Like Alcohol Act.

Note: This press release was distributed on behalf of the National Cannabis Industry Association; Ganjapreneur is proud to be a sponsoring member of the NCIA.

Read NCIA’s white paper providing real-world examples of how 280E harms small businesses across the country.

Meet the people who are building a cannabis industry based on compassionate care, responsible education, and cutting-edge innovation – WeAreTheCannabisIndustry.com

Contact: Aaron Smith, Executive Director. (303) 223-3554 — aaron@thecannabisindustry.org

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The flag of the United States of America.

Survey: 57% of Americans Support Legalizing Cannabis

3/30/2017

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The General Social Survey – a nationwide biannual poll considered the gold standard for public opinion research – found that public support for legalizing cannabis reached 57 percent in 2016, up from 52 percent support in 2014, according to a Washington Post report outlining the data.

Legalization was most popular among respondents aged 18-34 (66 percent), while the majority of respondents aged 45-49 (59 percent) and 50-64 (56 percent) also backed legalizing cannabis. Just 42 percent of respondents aged 65-and-older supported sweeping reforms. However, among all age groups, support has spiked since 2008 when just 20 percent of 18-34 year olds and 21 percent of seniors supported full legalization.

The survey found 64 percent of Democrats supported legalization, along with 61 percent of Independents and those registered to another party. Just 40 percent of Republicans were for legalizing cannabis, up just 1 percent from 2016 – however that’s progress from the 2000 survey, in which just 26 percent of Republicans, and only 29 percent of Democrats – supported legalization.

A 2015 Gallup poll showed similar results. That survey found 58 percent of Americans believed cannabis should be legalized – representing the highest support numbers for legalization in Gallup’s history.

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The flag of Argentina on a sunny, cloudless day.

Argentina Legalizes Medical Cannabis

3/30/2017

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Lawmakers in Argentina have passed a bill legalizing the use of cannabis oils and other derivatives for medicinal purposes, according to a report from the Associated Press. The regulations allow government agencies to cultivate cannabis for medicine production and for research purposes.

The research program set up by the Health Ministry must guarantee free patient access to the program, which requires a prescription, the report says.

According to an AFP report, many patients had demanded the ability to grow their own plants; however that provision was left out of the final version of the bill – which passed 58-0.

Maria Laura Alasi, whose 4-year-old daughter suffers from a form of epilepsy called West syndrome, said she has faith the senators “will find a way around” the home-grow ban, noting that “a lot of mothers are already growing their own.”

Alasi applauded the unanimous vote by the Senate. “This is a dream fulfilled, an immense happiness because it will bring solace to patients,” she said in the AFP report.

The move by Argentina is the latest in Latin America – where Uruguay became the first nation in the world to fully legalize production, sale, and consumption of cannabis in 2013. Mexico, Chile, and Columbia have also passed legislation legalizing cultivation and use of cannabis for medical and research purposes.

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Name.com: Helping Cannabis Entrepreneurs Innovate Their Online Presence

3/30/2017

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It’s been said time and again that an online presence is mandatory for finding success in the modern business world. But for cannabis companies — who are often bound by law from using the usual strategies to advertise or drive traffic — their online material is sometimes the only marketing options available.

Enter Name.com, a global provider of domain names, web hosting, and email services.

Based out of Denver, Colorado, the Name.com team has been a firsthand witness to the effects and positive changes of cannabis legalization. Resultingly, the company is determined to helping entrepreneurs in the nascent cannabis industry find their online footing.

According to Allison Chowdhury, representative for Name.com, “We’ve had front row seats for seeing exactly how the marijuana boom in Denver has affected jobs, the economy, and all the good things that its done for the state — because there’s a lot of revenue that’s bolstering the job market and going to public schools.”

“While we’ve always been small-business friendly, it’s time for people to recognize that the marijuana industry is booming. It is powerful, and they need online representation just as much as anyone else,” said Chowdhury. “Name.com is here to help them along the way.”

While it’s generally understood that a company’s website is important, many startup business owners forget that a good website first needs a good domain name. Of course, new business owners should try to reserve their desired .com domain early on — but if the .com address for your preferred brand or concept has already been taken, you may have to get creative with one of the new alternate domain extensions. And while most people are familiar with .net and .org extensions, cannabis entrepreneurs have a wide variety of alternate extensions that could be tempting, including .co, .club, .buzz, .forsale, .shop, and even .farm — all of which are easily purchasable on the Name.com platform.

Name.com brings a fun, savvy, and quirky attitude to the business of everything websites. Perhaps best represented by the team’s official mascot — the Bearglecorn (part bear, part eagle, part unicorn), pictured right — the company prides itself on adaptability to whatever the wants or needs of a business owner may be.

When asked whether the company ever hesitated before helping a cannabis company get online, Jared Ewy — official Community Evangelist for Name.com — said, “It was never a question. It was like, ‘Okay, these are people who are doing business legally in the state and they want to get online? We are here for them.'”

“There wasn’t even a conversation,” Ewy said.

So whether you need to find and reserve your ideal domain name, customize your professional email settings, switch hosting services for an existing website, or you just want to swing by customer service for a friendly chat, Name.com can help.

Visit Name.com today to begin your path towards Internet triumph!

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A cannabis worker in Washington state handles a recently harvested marijuana plant.

Canadian Researchers Identify Genes Behind Cannabis Terpenes

3/30/2017

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Researchers at the Canadian University of British Columbia have identified the part of the cannabis genome responsible for giving strains their unique flavors, uncovering about 30 terpene synthase genes that play a role in producing natural products like limonene, myrcene, and pinene in the plants. The number is similar to those genes that play a role in the grapevine flavor for the wine industry.

Jörg Bohlmann, a professor in the Michael Smith Laboratories and faculty of forestry at UBC, explained that the goal of the study is “to develop well-defined and highly-reproducible” varieties, and compared the cannabis and wine markets – both depend on “defined varities.”

“Our genomics work can inform breeders of commercial varieties which genes to pay attention to for specific flavor qualities,” he said in a statement. “There is a need for high-quality and consistent products made from well-defined varieties.”

Judith Booth, a graduate student working on the research, described the limonene compound as producing a “lemon-like flavor” while mycrene “produces the dank earthy flavor characteristic of purple kush.”

Additionally, the research uncovered a gene that produces beta-caryophyllene – the signature terpene of cannabis – that interacts with cannabinoid receptors in human cells with other active cannabis ingredients.

The study was published in the journal PLOS One.

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Downtown Kansas City from the Sheraton Hotel.

Kansas City, Missouri Voting Tuesday on Cannabis Decriminalization

3/30/2017

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This Tuesday, voters in Kansas City, Missouri will weigh in on a cannabis decriminalization measure that, if approved, would reduce penalties for possession of up to 35 grams of cannabis by adults 21 and older from a criminal misdemeanor punishable by up to six months in jail or a $100 fine, to a civil offense carrying a $25 fine with no criminal record or arrest.

Jamie Kacz, executive director of Kansas City NORML, said the main objective of the initiative “is to eliminate jail time” while reducing current cannabis possession penalties levied in the state.

“We have received an outpouring of support from voters across Kansas City who are ready for change and no longer want to see their loved ones suffer for marijuana possession,” Kacz said in a statement.

A March 27 survey from the Remington Research Group found 56 percent of respondents supported Question 5, which according to a Kansas City Star report requires a simple majority to pass.

Jessica Kelly, a member of Kansas City NORML’s Board of Directors, called the Remington Research survey “promising” because it was conducted using landlines, meaning “it was likely an older demographic weighing in on the issue.”

“Typically, younger demographics tend to vote in favor of marijuana reform, so this shows a good chance of the initiative passing with the support of both older and younger demographics,” she said.

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Spark the Conversation: Aaron Justis, Buds and Roses

3/29/2017

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Aaron Justis is CEO of Buds and Roses, a seasoned medical cannabis dispensary in the Studio City neighborhood of Los Angeles, California.

In this podcast episode, Aaron hosts Spark the Conversation‘s Bianca Green for a conversation inside of the Buds and Roses dispensary location. This interview was recorded during the Spark the Conversation bus tour last fall, before California had officially voted to end the prohibition of cannabis.

The interview covers the scope of Aaron’s cannabis career, which began with the leap of faith of uprooting from Illinois to move to California and join a technically illegal industry, as well as his many long-term activism efforts. Though this conversation technically took place during the Spark the Conversation bus tour last fall (before California voters approved Prop. 65 to legalize adult-use cannabis), we hear from Aaron about his predictions for the L.A. cannabis market and he offers his input on what qualities are most important for an entrepreneur entering the cannabis space.

Tune in below, or scroll further 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’m your host, Bianca Green. Today, I get to sit down with my good friend, Aaron Justis, of Buds and Roses in Studio City, a dispensary that’s existed since I’ve been in the game, so over eight years. I’ve known Aaron for many years. He was always a participant in the Cannabis Cups so I got to know him and his family there.

Then I always saw Aaron in DC and Sacramento, so he was one of the very, only people, really, that I would always see at both places. You know, in advocacy and in the competitive side of the cups. I’ve always had a kin toward him because he participated in being a part of the change. He’s the CEO of Buds and Roses and has strains that they developed there. It’s one of the nicest dispensaries I’ve been in. It’s just a really upscaled, beautiful, really comfortable environment that a lot of clientele that’s in that area are very comfortable going to.

He really did a lot to change the stigma of how people get access to their medicine and I admire him for a lot of his work. I’m really excited to talk to him today about his entrepreneurialism and kind of see where he’s at. One of the things that I think that we’re looking at achieving with this podcast is getting information out there to people so they understand what’s going on. What some of the things people have been up against running businesses and how to be responsible through advocacy, as well as being an entrepreneur.

Hearing from him and some of our other guests that are going to be throughout this podcast I think are going to be really exciting because some of these people are the pioneers and it’s really good information so I’m glad to have everybody with us today.

Hi, Aaron. We’re here today with Aaron Justis of Buds and Roses. Good to have you. Thank you so much for being here.

Aaron Justis: Thank you for having me.

Bianca Green: Aaron and I have known each other for quite some time, right? I met you, I think the first time I met you was at a AC Unity Conference in DC when we went to lobby but one of the interesting things about you, Aaron, is that I always saw you at a time when it wasn’t really popular being at the cups as a vendor and then also as an advocate in DC and Sacramento.

There were very few people that I saw on a crossover and so I’ve always had a camaraderie with you based on that and just watching your business flourish. You going from your first location down the street and now being in this awesome location, I’m really proud of everything that you’ve done with Buds and Roses and the way that you’ve kind of branded yourself and put yourself out there as a leader in the community.

Aaron Justis: Wow, thank you.

Bianca Green: Yeah.

Aaron Justis: Thank you. That’s awesome.

Bianca Green: Yeah. I guess one of the things we should really start talking about is how did you get into the industry?

Aaron Justis: Let’s see. I can go really far back and, when I was probably 15 is when I first got in the industry, but I started really using cannabis when I was 17 for what I later found out to be medical purposes. I didn’t really know why I was using it at first but I knew I liked it. When I was about 19, I read Jack Herer’s book The Emperor Wears No Clothes and it just totally blew me away how cannabis, just the lies that we’re told to make cannabis illegal and then the effect that that has on so many people in so many communities and the damage that it does.

It put a fire in my belly and I went and attended my first NORML conference I think in 1998, actually met Jack Herer and spent a little time with him and, from there, just kind of got into it and did what I could legally in the cannabis business, which was started a hemp clothing company and just promoted cannabis and kind of like sparking the conversation back then by having shared such a set like marijuana medicine shop or save the planet but cross the E out so it’s like save the plant and kind of just did that and started going to High Times Cannabis Cups but they were only in Amsterdam then. Yeah, that’s kind of how I got in.

Bianca Green: You’ve been a huge winner at these cups. I mean, you showed me a cannabis cup medal that you guys won in what year? Were you filming your garage?

Aaron Justis: Yeah, in like a ’98, I had a booth selling my hemp clothing and we brought hemp sweaters and hemp gloves that year and it was so cold in Amsterdam, like everyone just bought them up and so I won a Cannabis Cup award for best new hemp product.

Bianca Green: That’s awesome.

Aaron Justis: Yeah, it was great. It was very motivating, for sure.

Bianca Green: Yeah, and then how did it evolve into becoming a club owner?

Aaron Justis: I always remained an activist. I did some lobbying with Illinois NORML for a while and then I just kind of stepped back a little bit. You couldn’t make a lot of money selling hemp clothes and going to these festivals but I met a lot of people and it was fun. But I have a family to focus on then and now and I did other retail businesses but I just wasn’t feeling it. You know, I wanted to do something more important. I wanted to do something that could change the world for the better.

I remember one day, about eight or nine years ago, watching Marijuana Inc. on CNBC and I remember I saw Richard Lee on there and I remember when he just said, the interviewer asked him, “So, do you feel like you’re illegal business?” He said, “Well, I paid over $500,000 in federal taxes last year so, you know, I feel like I’m legal. They’re taking my money and I pay state, you know, local taxes,” and just a light bulb went off and I was like, “Oh, my God. There’s a real cannabis industry in California and I have to go there and be a part of it.”

Bianca Green: Wow, so you like picked up your family from Chicago and moved out here? Tell me what that journey was like?

Aaron Justis: Yeah, so I remember I told my wife. I was like, “Hey, we’re moving to California and I’m getting in the cannabis industry.”

Bianca Green: Erica’s like, “What?”

Aaron Justis: Yeah, yeah. She said, “Okay.” Then, later that night, and she’s not very emotional. She doesn’t cry a lot, almost never, and I noticed she was crying and I said, “What’s going on?” She said, “Well, you said we’re going to move to California and I think you’re serious and I’m just like trying to process this,” and she said, “But you know what? You go out there and make it work and I will … We’ll, we’ll come out there afterwards.”

Jumped on a plane with my best friend Tyler Wadleigh who is still our head cultivator and we just flew out to California and we’re just like, “How are we going to get in this industry?” I started by going to Oaksterdam University. There was one in Beverly Hills at the time. I met Jeff Jones, Dale Sky Jones, and they gave me some good advice and then I started going to ASA, Americans’ for Safe Access events and I ran into Steve DeAngelo and Don Duncan and I just met all these great people.

Bianca Green: Who are great drug policy reform advocates. All of them.

Aaron Justis: Yeah, and they do it the right way, you know?

Bianca Green: Yeah.

Aaron Justis: I just said, “Hey, I have to get a dispensary here. What can we do?” I actually looked in Washington, DC where there were some opportunities and LA, but LA is where I wanted to be. It was where I wanted to live and grow a business and we ended up with Buds and Roses in about a year.

Bianca Green: The name. I love the name. How did the name come about?

Aaron Justis: I actually didn’t come up with the name. I took over Buds and Roses in 2010 and it was a very unknown dispensary. They didn’t have a lot of patients. I think the annual sales in 2009 were $40,000 for the year and there was only one employee, the lady who started it, and she just came up with the name and the thing is that I remember, when I first became the president and got on the board, I said, “You know, we can’t use this name because it’s not medical enough. We’re going to get raided. We need to be like Los Angeles Patient Center or Care Center.”

Bianca Green: Sure, yeah.

Aaron Justis: But the thing is people just kept coming in and they’re like, “I love this name. I love this name.”

Bianca Green: Yeah.

Aaron Justis: You know, things were good. We didn’t get raided the first year or two and we thought, “Okay, we have to start like promoting this.” I remember, even when we first started promoting it, we would put like Buds and Roses really little and then collective really big because we were trying to get people to focus on the word collective like, you know, because we are a state non-profit and we do operate as a collective. As we started growing the business and winning awards and things like that, we just kind of redesigned the logo and ran with it.

Bianca Green: Well, it’s worked for you. You know, one of the things that you guys did really well for your branding was you made … Erica made those great clothing lines, right? You would give those out at the cups and a lot of people wore those. I mean, we gave them to John Sally. Who else has worn them that’s gotten it out there?

Aaron Justis: Yeah, just a lot of good people. I’ve worn it and they loved just kind of the brand and it stands for something.

Bianca Green: Yeah, and you have a really big celebrity clientele out here. That is obviously really good for marketing and branding. The idea that you guys built the clothing line out as a separate entity, though, was a really smart move, especially to solidify your intellectual property, right?

Aaron Justis: Yeah.

Bianca Green: It gives you the opportunity to trademark in certain areas where you still can’t trademark strains and things like that. Why don’t you talk a little bit about that?

Aaron Justis: Yeah, like one of the only ways to kind of trademark your dispensary, or if you’re creating products for the industry, is you can’t trademark cannabis specific so you want to come up with different things that you can trademark, so it is the clothing, it’s smoking accessories. We’ve had ash trays and doob tubes and things like that. Lighters can even be trademarked. You can even turn your website, if it’s informational, into a trademark. You’re giving information on this site. You have to do a lot of workarounds to get the trademark going for when they do finally accept cannabis trademarks.

Bianca Green: That’s great. Good proactive ways to keep your intellectual property because now, even three years ago, when nobody was paying attention, there was a lot of opportunity but now people are coming in from all different angles and really just trying to suck up the IPs.

Aaron Justis: Yeah. I just saw a major lawsuit against one of like the world’s biggest corporations against somebody in the cannabis industry and they got almost half a million dollar judgment against this small cannabis company for using something with their logo. It’s these bigger corporations are also definitely starting to pay attention.

Bianca Green: And they’re creating laws. Like in Oregon, you’re not allowed to use Girl Scout Cookies. There’s been bans on using some of the other names, so it’s definitely growing up in how we look at it. I mean, I’ve always thought that if we sophisticated the way that we talk about cannabis, not only as a medicine but in the way that we brand it — you know, “AK47” — there’s just certain names that might intimidate a new consumer to kind of come on board and get with it.

Aaron Justis: Yeah, with the Girl Scout Cookies, I just have to say this. They actually sent me a cease and desist letter a few years ago.

Bianca Green: The Girl Scouts did?

Aaron Justis: Yeah, we had won in the US Cannabis Cup with Girl Scout Cookies and it wasn’t … We weren’t selling the seeds, we’re not the creator of it, we just grew it and won, and yeah, they sent me a letter and it just said like, “Stop using the name,” and I didn’t bring it up at the time. I’ve mentioned it since but the last thing I wanted was a fight with Girl Scouts of America.

Bianca Green: Girl Scout Cookies of America, oh, my God.

Aaron Justis: Just like that’s okay. It was actually the phenotype that we had is called Platinum Cookies so we actually had already changed it to that and we haven’t had any problems since.

Bianca Green: Do you do a lot of genetics here?

Aaron Justis: We have created some genetics in the past. It’s not something we’re working on so much now, but we have created strains like Joey’s Strain, which was created for Joey, who his mother started the Unconventional Foundation for Autism, Mieko Perez, and we have been donating medicine for Joey for a long time and then we just, we found a strain that we cultivated and bred that worked really well for him and that created Joey’s Strain.

Bianca Green: What’s that like? Like the pressure of literally creating a medicine for a child? That’s got to be an insurmountable amount of overtaking.

Aaron Justis: Yeah. You know, it wasn’t that we actually had bred a few different strains and then this one worked for him so we used to call it Alpha Dog and then it just worked so well for him we renamed it. Creating a strain for him would have been really difficult because everybody’s body is different and it wasn’t … It’s not CBD that works for him. It’s THC. Then it’s just I guess finding the terpenes and things like and the combination of cannabinoids in that strain just happens to work really well for him, so kind of lucked out, I guess.

Bianca Green: How does that even work? Like you become then a scientist, in a way.

Aaron Justis: Yeah, and you never know if it’s going to work for everybody like that or if they’re going to have different reactions, so there’s just certain strains that we were providing for him where … and this has happened recently, if we don’t have the Joey’s Strain where he could take something and then he’s up for days. Like literally almost a week and then Mieko is up for almost a week. You definitely want to get the right medicine for people.

Bianca Green: Consistency is important, so I’m sure, as a business owner, it stresses you out that like, God forbid, you get shut down. People rely on their medicine from you in particular.

Aaron Justis: Yeah.

Bianca Green: Like what’s that like?

Aaron Justis: This does happen. Even if we don’t get shut down, the other problem is our providers who get shut down. One of my biggest things right now is trying to keep consistent product on the shelf. You know, when somebody finds something that works for them, it’s like, we don’t want to run out of that. They might come every three weeks, every four weeks, and sometimes drivers still get arrested, manufacturing facilities, cultivators, get shut down, and there’s a big lapse in product. There’s already, even in a market where people aren’t getting shut down, they’re really not able to produce as much as they’d like or as much as the demand is out there. In this industry, we’re constantly running out of products and not having consistency like we’d like.

Bianca Green: What’s the LA market like?

Aaron Justis: Well, it’s big. Probably the biggest in the country, if not the world, and they’re fairly sophisticated and educated. There’s been medical cannabis providers here for 10 years plus, maybe 12 years, and they definitely have … There’s probably 1,000 dispensaries that are operating outside of the little regulation that we do have here. People have a wide experience of it but it also is really like amateur, or it’s not what it could be because the regulations don’t exist. You hear officials all over Southern California and in California say, “Oh, there’s a problem with all these dispensaries. They’re an eye sore. They’re not really providing medicine. They’re doing this and that,” and I just feel like you can’t judge a marketplace when it’s unregulated. Of course, if bars were not regulated, things would be out of control.

Los Angeles has yet to see what a truly regulated market looks like and that’s kind of how we tried to operate because my mentors were Steve DeAngelo of Harborside, Don Duncan of LAPCG and other dispensaries. He started I think the first one in the state almost 20 years ago. Or Robert Jacob from Peace and Medicine. Just these pioneers, so even though we’re not regulated where we have to label things properly or it doesn’t have to have the nutrition facts and all that, doesn’t have to be lab-tested, we just push for those and set our own regulations.

Bianca Green: Yeah, the state of marijuana. Betty Yee spoke the state controller and she spoke about how the government essentially is listening because we’re the only industry that’s begging for regulation.

Aaron Justis: Right, yeah.

Bianca Green: Yeah, which is really interesting. I’ve met a lot of really good people in this industry that came from the movement. Tell me about, for you as a business owner who’s been a business owner for a while, watching the movement go into a real industry and what that feels like. I know that your business is striving but, at the same time, you’re working with political issues. Bans, Prop 64 that’s coming. How’s that going to change, you know, the future for you? There must be just a lot of nuances to your business that wouldn’t exist if you had a shoe store.

Aaron Justis: Yeah. I think a lot of industries deal with their own issues. Some of the stuff that we deal with is somewhat normal, just for a struggling business owner, but then some of the things we deal with are way beyond normal. The fact that we’ve survived through bans. There was a complete ban on dispensaries in LA. At this time, I’m worried about my home being raided, my dog being shot in front of my kids and all these things, just for providing medical cannabis. We’ve had to deal with that. We’ve had to deal with several bank accounts being shut down. Truly unfair tax laws where we can’t write off any expenses and we get audited and we owe hundreds of thousands of dollars, even though we didn’t make any money those years.

It’s definitely been difficult and also, just in LA alone, LA hasn’t regulated so there’s tons of work at the local level, at the state level, and at the national level that I just … I feel like, if we can get through these really difficult times, we should be able to get through anything but it’d be nice to kind of get going normally.

Bianca Green: Yeah. You did a lot of work with GLACA for local ordinance issues, with local ordinance issues. Tell me a little bit about that experience.

Aaron Justis: Yeah. We’re the oldest trade association of its kind. We’d been around for almost 10 years in Los Angeles and we’ve always tried to work with the city and create regulations in LA and push that and be a positive force and self-regulate our dispensaries as well and set up our own rules and regulations for that. This year has just been … It’s been interesting. There’s a couple of different groups of operators here that are somewhat legal. There’s two trade associations and our trade association took the view that the city just held off on regulations because the state never regulated. It’s such a big city they didn’t want to take on that task.

Going forward, this year, GLACA felt like we could work with the city. They were going to regulate. We didn’t have to be so forceful like we had been in the past. Maybe the other trade association was little more worried about how the city would react. We kind of both took our own angles on it but, as we kind of merge today, the city council’s going forward with it but our city is very diverse so they want to make sure that there’s room for minorities which is a trend in the industry which I think is extremely important to not cut the people that have been most affected by the war on drugs out of the legal industry, so it’s very positive to see that.

We want to get licensed for the activities we’ve been doing for almost 10 years here and we want to open it up so that the people that have been providing our dispensaries have the right to continue to operate as well. It’s definitely feeling very positive lately but we have just a ton of work to do.

Bianca Green: What do you think some of the greatest challenges have been for you, building this business?

Aaron Justis: I mean, probably the biggest thing is just it being illegal still and, even though, like when I say we’re somewhat regulated in LA, it basically says that all dispensaries are illegal but about 100 of us have limited immunity. We’re still not fully accepted by the law so we have a constant struggle with that. Then it’s just all the things of trying to build a business in a market like this, where you can’t get loans, you can’t get finance, investors are weary of what’s happening here.

Plus, I mean, look, 90% of the dispensaries in LA are operating outside of those regulations and that’s just a big competitive advantage for them, so it’s been hard to survive, especially when you’re being transparent and you’re doing things the right way when so many people are not. Again, I think if we can survive through this, it’ll make the future easier.

Bianca Green: What do you think is going to happen to the black market, though? These people who aren’t regulated, do you think that they’re going to get regulated and, if prohibition ends, what do you think that’ll look like?

Aaron Justis: I think that, if they over-tax it, that the black market can definitely thrive and stay strong, so we need to keep the taxes low. We already pay high taxes to our city, to the state, with the federal interference, we pay a lot of tax so we want to keep that low. I think the best way to build the legitimate market is to offer services and things that the black market just can’t. I believe, over time, people will see the value in going to a legitimate place versus the black market.

Bianca Green: Yeah, because customer service is really important. I mean, I’ve given you feedback on your business many times because I think that the consumer experience is what’s really been changing the game for a lot of people. I remember the first time I went to a dispensary and listening to the bars close behind you and you’ve got to walk into, “Eeeeng!” There’s this massive, like fear a little bit and you really make a wonderful consumer experience.

Aaron Justis: Thank you, yeah.

Bianca Green: I know Erica was a part of really spearheading creating the atmosphere in Buds and Roses and it’s really beautiful and warm and friendly, especially as like a single woman. I feel very comfortable coming in. It’s a very good customer experience, you know? That’s really important to draw in a new clientele, I think, right?

Aaron Justis: Yeah.

Bianca Green: What do you see the future of Buds and Roses being if legalization happens on November 8th?

Aaron Justis: Yeah. I mean, Buds and Roses is already moving forward with these huge law changes in medical cannabis and I think that, with Prop 64, legalization definitely looks like it’s going to pass. I think that’ll just continue to move everything forward. I mean, our goal is to kind of max out the licensing that you can get in California, which is three stores, manufacturing license, and a grow, and that’ll be really our big steps in the next five years.

But truly beyond that, my heart lies in cannabis cafes. I really want those in like every neighborhood on the plant. Wherever you can get coffee and fast food and alcohol, you should be able to get cannabis. That’s where I was really inspired in Amsterdam when I walked into a cannabis café. I mean, I love doing the retail thing, having dispensaries, and if I could have those all over, I want to do that too, but the cannabis cafés I’m really excited about. Giving people a place to socialize.

Bianca Green: Yeah, I think that that’s like the next thing, right?

Aaron Justis: Yeah.

Bianca Green: I mean, we know at cups, even at advocacy, everybody smokes, so having an experience with your fellow man is pretty much the thing that brings us all together, right?

Aaron Justis: Yeah, I think so. Yeah.

Bianca Green: How do you feel about cannabis? Like, what is it about the plant that drives you?

Aaron Justis: I love it. I mean, it really … First of all, it just works amazingly well with the body to kind of regulate yourself. If your stomach hurts, if you have a headache, like there’s all these normal things it can do to balance you out, but then it truly like gives me motivation and energy to do the tasks that I need to accomplish. It also just, it gets people thinking deep and talking about deeper conversations where, you know, I like alcohol but it has the opposite effect, you know?

Alcohol is a completely different substance. It’s not going to necessarily most of the time lead to any really productive, deep conversations, and I think that, through that, cannabis really changes people and ultimately changes the world. It changes their thoughts, which influence their behavior which will influence the world. It’s a great thing.

Bianca Green: What’s it been like being able to supply the medicine to patients for as long as you have so far? What are the most profound things that have happened to you as a business owner being able to provide safe access to this plant?

Aaron Justis: Well, you know, the biggest thing is that when I, before I had the dispensary, people look at people in cannabis look down on them. You’re not being praised. You’re not being thanked, and I open Buds and Roses, patients come in and people are literally like, people have grabbed me and said like, “You saved my life. Thank you for everything you do. I was taking all these pills and doing all this stuff.

Then like the next day a mom comes in and she’s like, “Thank you so much. My kids, they’re on the spectrum. I’m not, at this point, providing them with cannabis but I have to deal with my children and it’s very stressful and the doctor was giving me pills for that and now I’m using cannabis. Thank you so much.” It’s just like every single day, there’s praise, there’s love. I mean, it just feels so good to have a business that can make so many people feel happy.

I mean, the stories we hear are just, every single day, the things are amazing, how much benefit cannabis has brought to people’s lives. It’s so rewarding. I couldn’t think of doing anything else.

Bianca Green: You would say that’s one of the biggest rewards of owning Buds and Roses.

Aaron Justis: Yeah.

Bianca Green: Going through all the shit that you go through to keep it alive, yeah.

Aaron Justis: Yeah.

Bianca Green: What’s the future look like in 2017 for Buds and Roses?

Aaron Justis: Well, I think that 2017 is a year for us and myself to be really involved in the rules that are made. Yes, we’ve passed the legislation but now we have to pass the regulation, so I want to be as involved as possible throughout the process so that our patients, so that the laws are written in a way that benefits our patients and everybody.

Bianca Green: Is there any advice you have for any entrepreneurs that are coming into the industry that might want to be a dispensary owner?

Aaron Justis: Yeah. I would say that the first advice is that money won’t just fall out of the sky. Everybody thinks, “Oh, I’m gonna sell cannabis and I’m gonna be super rich.” It’s a competitive place. It gets more and more competitive so you definitely … Do what you love. I just believe that, if you do anything just for the money, it’s not going to work out so just make sure that you really want to provide medicine. You want to have a retail operation. I mean, look. You’re open every day of the year. You’re open late at night. Just retail in general has its own negatives that people kind of stay away from in the real world. It’s different than if you’re manufacturing your product. You’re not dealing with the same hours.

Just make sure you love it and do it right. Do something positive that people can be proud of. That’s what made us, gave us our reputation, and get involved with policies and advocacy because if you’re outside of the loop, then you’re just reacting all the time and you can’t really be prepared.

Bianca Green: Well, thank you, Aaron, for having us here today.

Aaron Justis: Thank you.

Bianca Green: And having the Spark the Conversation bus come to the store. It means a lot to us to be able to continue to change the stigma and for you guys to be a part of that is really empowering. Tell our audience where we can find you.

Aaron Justis: Yeah. Well, you can find us, if you’re here in California, you can find us on Ventura Boulevard in Studio City. It’s actually a neighborhood of Los Angeles so 13047, or you can check us out online. Facebook, Buds and Roses. Instagram, Buds and Roses. Everywhere, Buds and Roses.

Bianca Green: Awesome. Buds and Roses clothing, is that still …

Aaron Justis: That’s right, yeah.

Bianca Green: Is that still active?

Aaron Justis: Yeah.

Bianca Green: Okay, good. Awesome. Well, Buds and Roses, Aaron Justis, thank you so much. Let’s spark the conversation because it’s a joint effort.

Aaron Justis: That’s right.

Bianca Green: 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’s 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 sparked the conversation and help ganjapreneurs grow.

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Advocates Say Florida House MMJ Proposal ‘Undermines’ Voters

3/29/2017

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A proposal by Florida House Majority Leader Ray Rodrigues that would prohibit smoking medical cannabis, ban edibles and all but terminally ill patients from using vaporization as a delivery method, was approved by the House Health Quality Subcommittee, according to a News Chief report. Additionally, the House plan would see fewer additional cannabis licenses than a competing Senate proposal.

“I believe this is a measured approach,” Rodrigues, a Republican, said. “But I will caution you that it is not the final product.”

The House bill would require the Department of Health to award five more licenses once the medical cannabis patient population reaches 200,000, and three more licenses for every additional 100,000 registered patients. The Senate proposal would require the Health Department to issue five new licenses by the end of the year and 20 more by the time the patient count reaches 500,000.

Currently, there are only seven licensed medical cannabis operators registered with the state. A November 2015 report from the Florida of Office of Economic & Demographic Research estimated that patient counts in the state would reach anywhere between 1,586 and 440,522 this year; however that was prior to voters expanding the medical cannabis program via Amendment 2 last November. According to a Sun Sentinel report, the passage of the Amendment was estimated to add a possible 500,000 patients to the rolls.

The House measure would also keep a required three-month relationship between patients and physicians before a cannabis recommendation can be made.

Opponents of the voter-backed amendment applauded the potential changes; while Ben Pollara, campaign manager for the United for Care campaign, said the plan “was written for the less than 29 percent who voted ‘no’ and undermines and contradicts the constitution.”

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Massachusetts Lawmakers Approve $300K for Adult-Use Rollout

3/29/2017

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The Massachusetts Legislature has approved $300,000 for the roll-out of the state’s adult-use cannabis program; however, according to the Springfield Republican report, the money was put in an executive fund run by the Executive Office of Administration and Finance, rather than under Treasurer Deborah Goldberg – who is tasked with creating and supervising the Cannabis Control Commission.

According one of Goldberg’s aides, she cannot spend the money until it is released from Administration and Finance, meaning the program’s implementation will be delayed until the treasurer’s office receives the funds.

“This funding is critical to the continued and timely implementation of Question 4,” Goldberg wrote in a letter to Secretary of Administration and Finance Kristen Lepore requesting the funds’ transfer to a reserve account in her office for the Cannabis Control Commission. “Without sufficient resources, I am concerned that the Commonwealth may not be able to meet the various extended deadlines required by (state law).”

Sarah Finlaw, a spokeswoman for the Executive Office for the Administration and Finance Department, said the agency is “going to work with the treasurer’s office and transfer the funds over to them.”

The funds were included in a supplemental budget signed by Gov. Charlie Baker yesterday.

On Monday, the Massachusetts Department of Revenue released an analysis estimating that the legal cannabis market in the state could reap $64 million in state tax revenues in its first year. Sales are expected to begin on July 1, 2018.

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Johns Hopkins Drops Out of MMJ for PTSD Study

3/29/2017

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Johns Hopkins University has dropped out of a study exploring whether cannabis can help relieve post-traumatic stress disorder symptoms, according to a report from Reason.com. The study, funded by a $2.2 million grant to the Multidisciplinary Association for Psychedelic Studies (MAPS) from the Colorado Department of Public Health and Environment, will still be conducted by researchers at the University of Colorado, University of Pennsylvania, and the Scottsdale Research Institute in Phoenix, Arizona.

In a statement, a spokesperson for Johns Hopkins University indicated they had withdrawn from the study because “[their] goals for this study weren’t in alignment,” noting they had not yet enrolled any study participants.

“Johns Hopkins remains dedicated to helping military veterans, finding improved treatments for PTSD, and conducting innovative research to enhance our understanding of both the risks and benefits of cannabis/cannabinoids,” the statement said.

Brad Burge, communications director for MAPS, said that the university wanted to “remain focused on clinical research” while MAPS was not only interested in the science but also “the policy issues surrounding the science related to the [National Institutes on Drug Abuse] monopoly on marijuana for research.”

“We think the study will still succeed without Johns Hopkins’ involvement, that we’ll be able to enroll all the participants we need at the Phoenix site, and that the study will still have sufficient diversity of participant population,” Burge said in the report.

Researchers initially expected at least 76 military veterans to enroll in the study throughout the four sites, which is expected to take at least two years to complete.

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Under the orange glow of an indoor cannabis grow house.

Ballot Initiative Petitions to Legalize MMJ & Adult-Use Filed in South Dakota

3/29/2017

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Petitions have been filed with South Dakota’s Secretary of State that would legalize both medical and adult cannabis use in the state if approved by the majority of voters in the state. In South Dakota, petitioners need to collect 13,871 signatures and have them certified by the Secretary of State by November 2017 in order to put the issues to voters during the following year’s election.

The “initiated measure to legalize marijuana for medical use” would allow registered patients with a physician’s recommendation to possess up to 3 ounces of cannabis and “a minimum (not maximum) of six marijuana plants if cultivation is permitted for that cardholder.” The measure provides for cannabis access to patients with 13 specific qualifying conditions, “chronic or debilitating” wasting, pain, muscle, and nausea diseases, or other conditions approved by the state Department of Health.

The “initiated measure to legalize certain amounts of marijuana, drugs made from marijuana, and drug paraphernalia, and to regulate and tax marijuana establishments” would allow adult residents 21-and-older to possess up to 1 ounce of flower, up to 5 grams of concentrates and cultivate five plants for personal use. Non-residents would be able to purchase and possess up to one-quarter ounce of cannabis and 1 gram of concentrates.

The measure would impose taxes of $200 per pound of flower, $50 per pound on parts other than flower, and $15 per immature plants for cultivators; additional sales taxes are not outlined under the measure.

In his statement on the adult-use measure, state Attorney General Marty Jackley said the measure “has numerous conflicts with other state laws and within the measure itself.”

“Because its full scope and effect is unclear, judicial or legislative clarification will likely be necessary,” he wrote. “A court may find portions of the measure unconstitutional.”

Jackley’s statement on the medical cannabis proposal does not include such a warning, but cautions that “marijuana possession, use, cultivation and distribution remain illegal under federal law.”

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