Detroit skyline with the MacArthur bridge leading to Belle Isle and Detroit Boat Club in the foreground. Photo taken from Belle Isle fishing pier.

Mich. Advocates Release Adult-Use Draft Proposal for 2018

3/23/2017

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The Michigan Coalition to Regulate Marijuana Like Alcohol has released the latest draft of the cannabis legalization initiative the group hopes to put to voters in November 2018. The proposal would legalize cannabis possession and use for adults 21 and older, impose wholesale and sales taxes, and provides people convicted of a non-violent cannabis crime a path to clear their criminal record.

Under the measure, adults would be allowed to possess 2.5 ounces of cannabis and 15 grams of concentrates and grow up to 12 plants in a residence for personal use. Individuals with criminal convictions would be able to petition for redesignation or expungement of their violation as if the new law were on the books at the time of the sentencing.

The proposal provides licenses for retailers, testing facilities, transporters, processors, and microbusinesses, along with licenses for three cultivation classes. Class A licenses would authorize cultivation of up to 100 plants; class B would allow up to 500 plants, and class C would authorize up to 2,000 plants. Growers would be taxed $20 per dry-weight ounce of flower and $6.75 per dry-weight ounce of leaves. Municipalities would be allowed to limit or ban any or all cannabis business operations.

The law would create a Marihuana Regulation Fund in the state Treasury for taxes and fees derived from the legal industry which would be used for implementation, administration, and enforcement of the law until 2020 – then at least $20 million from the fund would be provided to Food and Drug Administration-approved clinical trials aimed at researching the efficacy of cannabis in treating medical conditions of U.S. Armed Services veterans. Following all appropriations, any excess funds would be distributed to municipalities and counties hosting cannabis establishments and to community colleges.

Last year, the ballot initiative to legalize adult cannabis use in Michigan was defeated by the Board of State Canvassers who ruled 137,000 signatures were over 180 days old, “stale,” causing the ballot drive to fall 106,000 signatures short.

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A cup of cannabis nugs is on display in the Chalice Farms dispensary in Portland, Oregon.

Taxes for Cannabis Businesses: Strategies for Mitigating Section 280E

3/23/2017

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Editor’s note: This is the second installment of a three-part series about cannabis taxes and the tax hurdles faced by marijuana business owners. This article contains hypotheses that haven’t yet been proven by case law; we highly recommend consulting your accountant before adapting any of these theoretical strategies.

If you haven’t yet, check out Part 1 before reading further. Stay tuned for Part 3, coming next week!

In the first part of this series, I introduced Section 280E and various Tax Court Cases that have left the door open for mitigating your tax liability as a cannabis business owner.

One way to alleviate federal taxation is through cost of goods sold (COGS). According to the Tax Court:

“Taxpayer trafficking in controlled substance determines COGS by using applicable inventory-costing regulations under Code Section 471 as they existed when Section 280E was enacted. And IRS Examination or Appeals may change to inventory method for that controlled substance when the taxpayer currently deducts otherwise inventoriable costs from gross income.”

What that means is that instead of using the favorable way to calculate COGS in Section 471, we must go back to 1982, when Section 280E was enacted. Van Pickerill & Sons Inc. v. United States stated that when the use of inventories is necessary to determine the income of a taxpayer, the taxpayer must use the best accounting practice to determine the amount of income (Section 471(a)).

Photo Credit: Carlos Gracia

Despite the use of the word “best,” multiple accounting methods may satisfy the best accounting practice requirement for any given business. The court and the IRS are caught between what is legal under state law, when the exact same thing is illegal under federal law.

In Jason R. Beck v. Commissioner, the Tax Court ruled that although the COGS were deductible to marijuana businesses, the cost of marijuana seized by federal authorities could not go into the calculation of COGS. Even though marijuana is legal in a state, federal government law enforcement agencies can raid legal state marijuana facilities, and, in the Beck case, the court said these amounts are not deductible.

Right now, many CPAs and EAs are loathe to sign a tax return that respects a non-trafficking trade or business. There was a famous paper written for accountants which concluded that the tax law makes it difficult to establish a second trade or business and therefore creates a challenge in treating that business as non-trafficking for purposes of IRC § 280E.

Appearing to follow the Tax Court’s lead in Olive, the paper used a multi-factor analysis from the Trupp case applying the rules of IRC § 183 (relating to hobby losses) to the question. The paper did not, however, consider accounting method cases under IRC § 446, which also address the issue and are likely in some instances to be more favorable to the taxpayer.

Added to that is the misinformation spread a few years ago that people like me, when helping those in the cannabis industry, are in danger of losing their license for aiding and abetting a drug dealer.

Common Section 280 strategies

As I mentioned in my first article, the first approach derived from Californians Helping to Alleviate Medical Problems, Inc. (CHAMP) v. Commissioner. In this Tax Court Case, the California-based marijuana dispensary provided marijuana to its patients, but also provided non-cannabis services, including counseling and caregiving services for its patients. This allowed the company to fully deduct the expenses associated with those practices.

A common and basic strategy for a dispensary is to offer another service alongside its dispensary. You then allocate expenses between the dispensary and the other activity.  However, what was learned in the Olive v. Commissioner case is that you simply cannot throw two things together and say that they are separate businesses under one roof.

I have heard of a strategy whereby a dispensary would sell cannabis and also sell hats and t-shirts. The allocation of the expenses were 80 percent t-shirts and hats, to 20 percent dispensary. But, unlike that sort of arrangement, you need a business that compliments a dispensary. For instance, medical cannabis and caregiving go together. Recreational marijuana and food go together. Then you have to make sure you are not allocating so much more on the non-cannabis side of the business that it ceases to make sense — then the question would arise: why do you have a dispensary at all?

Photo Credit: Phil Roeder

Another way to look at it

Before going further, I want to mention that this idea does need some work and should not be considered bulletproof.

If you are in the medical cannabis industry, why not charge a monthly fee for caregiving services commensurate with the patient’s diagnosis? You could offer different packages like Silver, Gold, and Platinum. If the patient is prescribed a potent and more expensive strain of cannabis, you simply charge them more for the caregiving. The cannabis you just give away alongside the caregiving services.

Before you think that I’ve lost my mind, stay with me. You are providing caregiving services as a way to deduct your business expenses. What does the patient want most of the time? They just want the cannabis. So, you enter into a contract with the patient that says you will provide these caregiving services, charge them a fee, and give them the cannabis for no charge.

Will the patients take part in the caregiving services? Some will, but for this to work, you would have to make a requirement that the patient attend so many appointments to get their cannabis. They can simply do a certain thing every month when they come to pick up their supply and that would fulfill the contract.

What do you need to employ this method? A good accountant that understands the strategy, an attorney that can write the caregiving contracts, and an attorney/accountant team that can offer ongoing consulting services.

If we go back to the successful CHAMP Tax Court Case, this was their basic concept, but I tweaked it a little bit. They were charging for both the cannabis and the caregiving expenses. You are charging more for caregiving expenses than what would cover the price of the cannabis, but you are effectively giving away the cannabis. Conceivably, you are no longer stymied by Section 280E because you aren’t selling an illegal Schedule I drug; you are selling caregiving expenses and just giving away the cannabis.

You would still have to have a license as a dispensary. That wouldn’t change. However, depending on how your state has written the cannabis laws, this strategy may get you out of the oppressive state taxes on cannabis. Remember that you aren’t selling it. You are offering a caregiving service that may or may not include free cannabis.

NOTE: there is NO case law that supports this. This is simply one person looking at caregiving, cannabis, and other therapies from a holistic medicine approach.

Will you be audited?

Any strategy you employ to avoid Section 280E will open you up to scrutiny by the IRS. You need good professional help in employing the strategies listed in this article.

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A prison chain-link fence.

Harsh Sentencing Laws in Ala. Imprisoning Non-Violent Offenders for Life

3/23/2017

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According to figures from the Alabama Sentencing Commission, as of Oct. 17, 2016 more than 80 percent of the state’s 220 prisoners convicted of first-degree cannabis possession – defined as more than 1 kilo or 2.2 pounds – are black. That figure is wholly disproportionate to the state’s population, which according to U.S. Census Bureau data from July 2015 is 27 percent black and 69.5 percent is white.

In Alabama, harsh sentencing laws for repeat offenders and drug traffickers lead to life sentences, according to a report from AL.com. Richard Bolden was convicted in February 2015 of trafficking cannabis after police found him in possession of 2.4 pounds of cannabis – slightly above the state’s kilo threshold and cause for the trafficking charge. Although prosecutors could not prove he actually sold the drug, he was sentenced to life, despite the fact his criminal record contained no violence. Without that extra weight, Bolden would have been sentenced to 10 years.

“All over the United States they are legalizing the use of marijuana while here in Alabama people are being convicted to life sentences,” Bolden wrote in a 2016, jailhouse letter to AL.com. “My charge should have been reduced to possession but because the prosecutor knew he could give me a life sentence because of my one prior [Class A] conviction out of the state of Florida he pursued my case viciously.”

According to the report, police built a case based on “constructive possession” – meaning drugs were found in his home and deemed to be his – but Bolden maintains that the search was conducted illegally. In 2015, Alabama Criminal Court of Appeals Judge J. Elizabeth Kellum denied his appeal that the search was improper. Her colleague Judge Samuel Henry Welch dissented in the opinion, concluding that “the warrant was so lacking in probable cause ‘as to [as] render official belief in its existence entirely unreasonable.’”

“[T]he affidavit overwhelmingly presents only [Dothan Police] Officer Mock’s pure speculation that illegal drugs were probably in the trailer on Eddins Road at the time the warrant was issued,” Welch wrote in his opinion.

Alabama Supreme Court Justice Roy Moore – who is currently serving a suspension for telling probate judges to defy federal gay marriage orders – has also spoken out against the state’s sentencing laws, urging the legislature “to revisit that statutory sentencing scheme to determine whether it serves an appropriate purpose.”

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The advent of the legalized cannabis industry has driven up industrial real estate prices.

Cannabis Industry in Sonoma County, Calif. Boon for Industrial Properties

3/22/2017

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The industrial real estate market in Sonoma County, California is in a boom period thanks, in part, to the legal cannabis industry, according to a North Bay Business Journal report. Prices of industrial properties used for cannabis rose from full asking price or more in 2016, reaching 20 to 25 percent premiums above non-cannabis buildings; and that premium has risen to 50 percent so far this year.

One of the more notable transactions last year – and the largest – involved a 150,000-square-foot six-building deal to CannaCraft for nearly three times the previous price less than a year prior.

At year-end in 2016, the vacancy rate in the market was 5.8 percent which was unchanged from year-end 2015 figures; however the rate fell to 5 percent in the third-quarter of the year – representing a stable market.

Although most building owners have loans secured through a federally insured bank, the deals still come with a considerable amount of risk as cannabis remains a Schedule 1 narcotic under federal law – and the feds could seize the property if they decide to enforce those laws.

According to the report, Sonoma County is considering a proposal to move the cannabis industry indoors and away from rural-residential zones, which would only increase the demand for industrial properties located in cannabis-approved zones.

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The purple glow of LED lights inside of a licensed Washington cannabis cultivation site.

Steep Hill Announces Partnership with iCAN Israel, Plans R&D Lab

3/22/2017

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Steep Hill Labs will bring its talents to Israel, announcing that the company has entered into a joint venture with iCAN: Israel-Cannabis. The partnership will see Steep Hill open an analytical, genetic, and research and development lab in Israel to further cannabis research.

“We believe that Israel is the epicenter of cannabis research and development,” Steep Hill CEO Jmichaele Keller said in a press release. “We look forward to its role in leading the evolution of medical cannabis worldwide.”

The announcement was made at Israel’s medical cannabis conference CannaTech, during which Steep Hill also announced their Xcerpa technology that allows long-term storage of cannabis DNA. The technology “impregnates” a card with a cannabis DNA sample that allows it to be legally transported globally. The technology will allow researchers in both the U.S. and Israel to access and research the genetic information contained on the cards.

“We’re doing more research in Israel than anywhere else. We have destigmatized cannabis and we have a medical approach to cannabis,” Saul Kayem co-founder of iCAN said during his remarks at the conference. “We’re seeing medicalization and we’re seeing reform happening quicker than anywhere else. It might take two years, it might take five years, but it will happen.”

Steep Hill opened the first commercial cannabis lab in the U.S. in 2008 and was named by Wealth Daily as one of the top 5 legal cannabis companies to watch this year.

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The State Capitol Building of Ohio in Columbus, Ohio.

Ohio Proposes Regulating Medical Cannabis by THC Weight

3/22/2017

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Most medical cannabis states dispense their cannabis flower and extracts according to total weight in each transaction. Edibles and topicals often have THC content listed, but like flowers and extracts, supplies are based on total weight or volume. Ohio, who recently passed a full plant medical cannabis bill via the legislative process, is proposing to dispense all cannabis products using a THC weight approach, in which they set a maximum amount of THC allowed over a 90-day period.

In a fact sheet released by the Ohio Department of Pharmacy, the agency seeks to clarify the definition of a 90-day supply of various forms of medical cannabis by proposing to regulate THC across delivery methods, similar to Morphine. Using 30 studies and 90-day supply limits from other states as reviewed by an expert panel, regulators set the 90-day supply of THC at 45 grams — that’s 45 grams of THC, not flower, for a patient’s entire regiment of flower, oils, edibles, and topicals.

Under the rules, plant material is divided into two tiers. Tier one cannabis flower ranges from 0-23% THC content and patients would be allowed to purchase up to 6 ounces of it every 90 days. Those seeking tier two cannabis, with a THC content of 23.1-35%, are allowed up to four ounces per 90-day time period. Citing flower and oil bioavailability ratios as 1 to 1, extracts would be dispensed within the same 45-gram threshold. Due to their greater bioavailability, officials set the limit for edible THC at 9 grams and topicals at 19.8 grams.

Dr. Jahan Marcu, Chief Science Officer for Americans for Safe Access, is not so sure about the new system. “The two-tier system appears to be using faulty lab results,” Dr. Marcu said.

Naturally, this is an immediate red flag. “Most cannabis doesn’t test much higher than 25%, so putting an entire tier from 23.1% to 35% is suspect,” Dr. Marcu said. “In order for the system to work, Ohio must use valid lab results — which is not an easy task when testing cannabis. We’ll have to wait and see if this works since it’s not been tried before.”

“It’s hard to regulate a Schedule 1 narcotic like cannabis similar to a Schedule 2 narcotic like Morphine,” concluded Dr. Marcu. “We’d welcome Ohio into the effort to reschedule cannabis.”

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An amateur cannabis smoker lights a hand-rolled joint.

Teen Cannabis Use is Not Up Since Legalization in Wash.

3/22/2017

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Teen cannabis use in Washington State since adult-use legalization is not on the rise, remaining mostly stable but still less frequent than teenage alcohol use, according to data from the state Department of Health.

The 2016 Washington State Healthy Use Survey of over 230,000 students found minimal declines for some high school populations. Self-reported cannabis use within the last 30 days among eighth-graders fell from 8 percent in 2014 to 6 percent last year; 17 percent of 10th graders students reported using cannabis within the last 30 days, down slightly from 18 percent in 2014 and on par with the lowest survey figures reported in 2004; and cannabis use among 12th-graders fell 2 percent from 28 percent in 2014 to 26 percent last year.

Twenty-seven percent of 10th-graders indicated that cannabis was “very easy” to obtain in 2016, down 5 percent from two years prior. The survey found that nearly 40 percent of high school seniors had “very easy” access to cannabis; and while the number of students reporting they get it from friends decreased from 63 percent in 2014 to 57 percent last year, the number of students who reported giving money to someone else to purchase it increased 16 percent to 19 percent from 2014 to 2016.

The report notes that the declining perceived risk of cannabis use among 8th-graders – 53 percent in 2016 and 48 percent in 2016 – should be “carefully monitored,” adding that “decreases in perceived risk are often followed by increased use.”

Comparatively, 8 percent of 8th-graders, 20 percent of 10th-graders, and 32 percent of high school seniors reported using alcohol within the last 30 days.

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The Swiss flag flies somewhere in the mountains of Switzerland.

Switzerland’s Legal 1% THC Cannabis Market Gaining Popularity

3/22/2017

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Switzerland’s market for legal cannabis with just 1 percent THC is taking off as producers are having trouble keeping up with demand and the number of registered retailers has grown significantly in the last year, according to a report from Reuters. A spokesman for Switzerland’s Customs Agency, responsible for taxing the products, indicated they expect about $25 million in revenue on legal sales of about $100 million this year.

“It started gradually last year, and then suddenly things went crazy in December 2016 and in 2017,” the spokesperson said in the report.

KannaSwiss, a low-THC cannabis wholesaler, has quadrupled its staff to 20 since last year but co-founder Corso Serra di Cassano said the company is still having trouble keeping up with orders.

“You feel like you should be high, because you have a body high, but your mind is completely clear,” di Cassano said in the report, describing the high produced by the low-potency products. “We’re really seeing the boom in the last month or two.”

Although the products contain a small amount of THC some from the medical community are still concerned that there could be health risks, and police often still confiscate cannabis because they can’t be sure whether the product contains the legal amount of THC.

Barbara Broers, vice-president of the Swiss Society of Addiction Medicine, said growers could be using pest control chemicals.

“We don’t know what is in it,” she said. “There are inadequate checks of really what is in the substance.”

Switzerland began to allow the sale of the low-THC cannabis in 2011.

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Inside of a licensed cannabis operation in California.

Cannabis Taxes: Introduction to Marijuana Taxation

3/21/2017

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Editor’s note: This article is the first installment of a three-part series; stay tuned for Parts 2 and 3 in the coming days!

Following the 2016 elections, marijuana is now legal in some capacity in 28 states. However, even though it’s legal in certain states, the federal government considers the drug an illegal Schedule I narcotic. Resultingly, business owners in the marijuana industry have hit a wall with IRC §280E, which states:

“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.”

IRC §280E will no longer apply to cannabis businesses if and when cannabis is no longer classified as a Schedule I or Schedule II controlled substance.

When IRC §280E was enacted in 1982 to overturn the result in the Tax Court case Jeffrey Edmondson v. Commissioner, it held that the taxpayer, who was engaged in an illegal drug dealing business, was entitled to deductions for “telephone, auto, and rental expenses” that he incurred in his business. The Senate report makes clear that IRC §280E was intended to overturn the decision in Edmondson and deny deductions to illegal drug dealing businesses. However, for Constitutional reasons, Congress did not attempt to prevent taxpayers from using cost of goods sold (COGS) to compute gross income. Thus, IRC §280E denies all deductions from gross income in computing taxable income, but illegal drug dealing businesses are permitted to take COGS into account in computing gross income.

Avoiding the pitfalls of Section 280E

In 2007, there was a U.S. Tax Court Case that involved Section 280E. There was a dispensary operating as both a dispensary of cannabis and a caregiving facility. The Court found that the dispensary operated with a dual purpose. Its primary purpose was to provide caregiving services to its members, while its secondary purpose was to provide its members with cannabis. Thus creating “two businesses under one roof.” The Court then proceeded to allocate the expenses between the two businesses, which lead to a commonly used strategy today of allocating various expenses among dispensary use and the act of caregiving.

However, in another Tax Court Case, the Court held that the owner of a medical cannabis dispensary was not entitled to any business deductions for expenses associated with caregiving services that were provided alongside the cannabis business. In 2004, the Vapor Room Herbal Center opened in California. In addition to selling medical marijuana, the dispensary provided vaporizers, games, books, and art supplies for customers to use and also held regular activities, such as yoga classes, massages, and movie showings — all free of charge.

The IRS audited the Vapor Room’s tax return and concluded that the taxpayer was not allowed to deduct expenses in connection with COGS or the other reported business expenses. The case ended up in Tax Court. While admitting that a business can have multiple activities that are taxed differently, the Tax Court found that the Vapor Room’s sale of medical marijuana was inseparable from the other services provided.

The case ended up in Appeals Court. Judge Graber, who wrote for the three-judge panel, affirmed the Tax Court’s decision. First, to determine whether the Vapor Room’s ordinary and necessary business expenses would be tax deductible under §280E, the court considered whether the Vapor Room was a “trade or business” that “consisted of” trafficking marijuana. Taking these contested phrases in turn, the court stated that “the test for determining whether an activity constitutes a ‘trade or business’ is ‘whether the activity was entered into with the dominant hope and intent of realizing a profit. Applying this test, the court found that the only “trade or business” of the Vapor Room consisted of the selling of medical marijuana, because although the Vapor Room provided other services — such as food, drink, movies, and counseling — the selling of medical marijuana was the only income-generating activity of the business.

The IRS has weighed in on the matter and has concluded that although marijuana-related businesses are permitted to determine COGS, they must do so using Section 280E, as it was enacted in 1982, and Section 471, which allows the use of inventories to determine business income. When §280E was enacted in 1982, an ‘inventoriable cost’ referred to any costs that could be capitalized to inventories under §471.

To capitalize something simply refers to the manner in which something is expensed. Capitalization simply means delaying the recognition of an expense by treating the item as a fixed asset rather than recognizing the cost in the period that it was incurred. Capitalization is generally only used by companies that operate on the accrual basis of accounting.

In addition, the IRS concluded that cannabis businesses are not permitted to calculate COGS using the more recent IRS regulations which can be found in Section 263A, which permitted the inclusion of additional expenses, namely purchasing, handling and storage expenses, and service costs.

This has set up a dichotomy. For resellers, the costs that they normally incur in the purchase of cannabis may not be deducted as COGS under the rules of Section 280E. These costs are directly related to the trafficking of cannabis. This means that only the actual invoice price of the cannabis is deductible. Not including the transportation costs and other costs that are normally associated with gaining possession of inventory.

A freshly trimmed nug of cannabis. Photo Credit: Cannabis Pictures

For cannabis production businesses, like growers, there are significantly more opportunities to claim items as COGS. Production-related wages, rents, and repair can be considered as COGS upon the sale of the inventory for accrual-basis taxpayers and immediately for cash-basis taxpayers that are cannabis-production businesses. However, marketing and general business expenses remain nondeductible.

Indirect production costs that may be considered as COGS include:

  • Repair expenses;
  • Maintenance;
  • Utilities;
  • Rent;
  • Indirect labor and production supervisory wages, including basic compensation, overtime pay, vacation and holiday pay, sick leave pay (other than payments pursuant to a wage continuation plan under section 105(d)), shift differential, payroll taxes, and contributions to a supplemental unemployment benefit plan;
  • Indirect materials and supplies;
  • Tools and equipment not capitalized; and
  • Costs of quality control and inspection.

The IRS has also permitted producers to claim some additional COGS deductions, as long as the company makes sure to produce financial statements that are in accordance with Generally Accepted Accounting Principles (GAAP). GAAP is basically the accrual method of accounting whereby income is recognized when earned and expenses when incurred.

These expenses include:

  • Taxes deductible under §164, other than state, local, and foreign income taxes;
  • Depreciation and depletion;
  • Deductible employee benefits, including pension and certain profit-sharing contributions, workers’ compensation expenses, stock bonus plans, premiums on life and health insurance, and miscellaneous employee benefits such as safety, medical treatment, cafeteria, recreational facilities, and membership dues;
  • Costs pertaining to strikes, rework labor, scrap, and spoilage;
  • Administrative expenses related to production;
  • Officers’ salaries related to production; and
  • Insurance costs related to production.

What are the effects of Section 280E?

The effect of 280E is that those in a legal cannabis business are reporting that they have up to a 70 percent tax liability. Let’s say that you own a regular business, and you have $1 million in sales, you have $600,000 in COGS, $100,000 in salaries, $50,000 in rent, and $200,000 in other business expenses. The result would be that you would have to pay taxes on $50,000. If the tax rate was 30 percent then the taxes owed would be $15,000.

If this were a cannabis business, you would be paying taxes on $400,000 ($1 million minus the COGS at $600,000) and would not be able to deduct anything else. If you were in the 30 percent tax bracket, you would pay $120,000 in taxes. That is a $105,000 shift for a company operating in the cannabis industry

As you can see, taxation for the cannabis industry is a complete mess. In the next installments of this series, we will discuss strategies to get around Section 280E, the challenges of the banking system, and how to run an all-cash business.

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Two SWAT team members preparing to breach a door during a training exercise.

At Least 20 SWAT Raids Since 2010 Involving Cannabis Have Led to Deaths

3/21/2017

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According to data compiled by the New York Times, at least 20 SWAT raids since 2010 that involved suspected cannabis dealers have resulted in the death of the suspect or a police officer participating in the raid, the Washington Post reports.

According to the figures, four police officers were killed intentionally or otherwise while conducting a SWAT raid for cannabis, and at least three suspects who were killed possessed fewer than 5 grams at the time of the raid.

A Tampa, Florida raid in 2014 left the suspect, 29-year-old Jason Westcott, dead after police said they observed him with a firearm – although no shots were fired at police. In that case officers found .2 grams of cannabis. Two years later, another Tampa man, 22-year-old Levonia Riggins, was shot and killed in his bed by police during a raid that uncovered 2 grams of cannabis on his person. No other cannabis was found in the home and Riggins was unarmed.

In 2010, Las Vegas, Nevada police raided the home of 21-year-old Trevon Cole after undercover officers purchased 1.8 ounces of cannabis from him over four deals. In that case, Bryan Yant, the detective, used false information – that of another suspect – to acquire a warrant for the raid from a judge. Cole was shot by police as he was flushing cannabis down the toilet. Police found neither weapons in his home, nor any cannabis beyond “bits…floating in the toilet.”

In 2013, a Somerville, Texas raid on the home of Henry Magee left police investigator Frederich Sowers dead. Officers were investigating a tip from a criminal informant about a 12-plant grow when they kicked in Magee’s door who fired in their direction with a semi-automatic rifle believing he was being robbed. In that case Magee was acquitted of capital murder, with one juror asking the Times, “Why in the world would you do a full-out assault on a guy growing pot?”

Of the 65 deadly raids since 2010, 24 were for non-drug crimes, while 41 were for the suspected sale of drugs other than cannabis.

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A "Welcome to Utah" sign alongside the highway in the Southwest plains.

Utah Advocates Prepping for 2018 Ballot Push for MMJ Expansion

3/21/2017

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Advocates in Utah are gearing up for a push to put a comprehensive medical cannabis question to voters in 2018 after state lawmakers failed to pass any reforms to the state’s limited regime during the legislative session, according to a Fox 13 report. The efforts will be led by Together for Responsible Use and Cannabis Education (TRUCE) who expects the initiative process to cost millions.

“We’re looking at $600,000 to $800,000 just for the signature-gathering portion of this,” Christine Stenquist, TRUCE organizer, said in the report, adding that polling in the state favors a more robust medical cannabis program. “Then there’s the other million-and-a-half that’s going to be advertising and making sure we get the message out.”

Stenquist said the group is “answering a demand” and that their plan would allow for whole plant use that would include smoking and edibles.

“The legislators have failed so the people are taking this up,” she said. “This is a movement by the people, for the people, without a doubt.”

State Rep. Brad Daw indicated he plans on introducing comprehensive medical cannabis legislation next session and expressed concern that if the initiative is too broadly worded voters would reject it.

“I’m always concerned with ballot initiatives because this is something we have done a lot of negotiating with a lot of different stakeholders,” Daw, a Republican, said. “It’s kind of a bill that requires a lot of feedback from a lot of people you can’t get with an initiative.”

Gov. Gary Herbert has indicated support for expanding the state’s medical cannabis program but prefers to see it passed through the legislature.

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Jodie Emery, one of the principals at Cannabis Culture.

Jodie Emery Forced to Divest from Cannabis Culture Following Release

3/21/2017

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Jodie Emery is being forced to completely divest from Cannabis Culture following her release from custody after being arrested earlier this month for drug offenses including trafficking, according to a Vancouver Sun report. Her bail conditions include removing herself from “any business dealings with Cannabis Culture locations” but Canada’s “Princess of Pot” has vowed to keep fighting.

“I will fight this, I will not stop being an activist. You know, I was too busy with work to be an activist, and now, well, take away the business, and you’ve made a monster out of me,” she said in the report. “There are many other people supplying cannabis in much larger amounts. But for us, everybody knows, it’s a very political persecution. I’m more fired up than ever.”

Emery, whose husband Marc was also jailed in the raids, has until Friday to remove her name from all Cannabis Culture bank accounts and end her directorship of the company. The day-to-day operations will be turned over to longtime employees. Emery has served as a director of the company since 2010 when Marc was extradited to the U.S. to serve a four-year jail term in connection with his mail-order cannabis seeds business.

As part of her release, Emery is ordered not to consume any unlawful substances, including cannabis, except with a valid prescription – which she said she is hopeful of receiving this week.

The couples’ next court appearance is April 21.

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Panorama view from on top of the Toronto-Dominion Center in Winnipeg, Manitoba, Canada.

Manitoba, Canada Preparing for Cannabis Legalization with Road Safety Rules

3/21/2017

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The Manitoba, Canada government is preparing for federal cannabis legalization with legislation focusing on public safety and harm reduction, according to a MyToba report. The proposal aims to tackle potential problems such as transporting cannabis and driving while under the influence.

The new rules would create an offense for consuming cannabis in a vehicle that is on a highway and allow for 24-hour driver’s license suspensions if a police officer determines that a driver is unable to safely operate a motor vehicle due to drug intoxication. The Registrar of Motor Vehicles would be allowed to determine if the offender should be subject to further consequences. Similar rules would be established for individuals driving off-road vehicles.

Additionally, the proposal would require that cannabis is stored and transported by individuals in an inaccessible and secure compartment – such as the vehicle’s trunk. The same rules currently apply to open liquor containers.

“This legislation would be an early step by our government to target drug-impaired driving and prioritize the health and safety of Manitoba youth,” Justice Minister Heather Stefanson said in the report. “As the federal government moves to legalize cannabis, our government is focused on the safety and health of all Manitobans.”

Canada’s government is expected to announce legalization plans this spring, however full legalization is not expected until 2019.

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Craig Brand: Fighting to Prevent a Big Pharma Cannabis Monopoly

3/21/2017

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Craig Brand, Esq. is a founding partner of Ganja Law P.L.L.C. and Ganja Law Consulting, LLC, a global cannabis legal and consulting firm. Having served as a defense attorney in Miami for decades, he is all too familiar with the DEA and their approach to federal drug policy enforcement. Craig has witnessed firsthand the political imprisonment of people who were arrested for nonviolent cannabis crimes. “People going to jail because of a plant,” as he puts it.

As an Advisory Board Member of the National Hemp Association and a believer in an inclusive, free market for the cannabis industry, Craig has recently dedicated his career to strategically opposing efforts by the federal government, large pharmaceutical companies, big alcohol, and other big business interests seeking to seize control of the current medical & recreational cannabis markets. In this interview, Craig reveals what these special interests are likely planning, how his firm is fighting back, and what cannabis entrepreneurs should expect to see as the battle between the states, private entrepreneurs and the federal government plays out.

What do you think is the biggest threat to the cannabis industry as it has developed in states with medical and recreational programs?

By far the largest threat to the cannabis industry are those who stand to financially lose from the fastest-growing segment of our current economy. Within this classification, the pharmaceutical industry yields the greatest danger as they are preparing to obtain federal patents and FDA approval for “new” medicines that utilize natural or synthetic cannabis plant molecules and compounds. Ganja Law is obtaining ongoing reports of industrial, pharmaceutical and agricultural giants gearing up in an attempt to federally patent ways, manners, methods of cultivation, extraction and even strains and varieties of the cannabis plant itself. The fear is that these powerhouse entities will actually be able to obtain patents on products belonging to Mother Nature herself, uprooting the industry as we know it. Ganja Law has ideas and legal strategies to help combat these monopolies and asks that the private sector heed this warning with preemptive action.

How concerned should cannabis entrepreneurs be about the Monsanto-Bayer merger?

Any time Monsanto is mentioned it is deserving of a shudder. Should Monsanto obtain patents or FDA approvals on strains of cannabis and should pharmaceutical industry giants such as Bayer obtain FDA approval on cannabis medicines, a monopoly could form concerning the licensing and growing of cannabis, in whole or in part. The biggest irony is that cannabis’s classification as a Schedule I drug is providing the present industry with the greatest of protection from those looking to control the market. The cannabis industry should only be attempting to reclassify cannabis if legislatively there are safeguards in place to allow for the continuation of the free, licensed, legal market. A downward departure of the Controlled Substance Act, without preemptive safeguards, could allow certain political power houses with large lobbies to take over everything from manufacturing, delivery and dispensing — oligopolies of the politically connected. In other words, a lawfully structured and legally permitted mafia that makes large campaign contributions.

What do you make of the Trump Administration’s comments thus far about medical vs. recreational cannabis?

One would have reasonably thought that the current administration had much more pressing concerns and priorities than to dismantle the cannabis industry as we now know it. One would also hope that this administration will not villianize cannabis when history and science have proven this plant’s benefits and that the real reasons for its rescheduling status was because of political corruptness and the influence of wealthy individuals who stood to lose from a competing US hemp market.

It doesn’t take much presumption to recognize that should this administration dismantle the legal, free market, it will be undoing all that has been gained in the “war against drugs and cartels.” This administration would be creating the largest spiteful black market in history; a black market that will not be purchasing its cannabis from CVS or Walgreens.

The people of this great country hav voted for their states to provide them with a safe, effective and intelligent way for obtaining medical and/or adult use cannabis while creating a taxable market place shared by entrepreneurs alike. This administration ran on a States’ Rights platform, a reduction of Federal intrusion, the weakening of oligopolies, and jobs. Should these promises not be honored, Ganja Law stands ready, able and willing to employ all legal and lawful entitlements available; helping states as well as the private sector.

Do you think Big Pharma and Big Alcohol might be working together to win favors from the Trump administration?

I would like to see them oppose each other: Battle Of The 400 Pound Gorillas. However, the two stand everything to gain by dismantling the cannabis industry, as the pharmaceutical and the alcohol industries have reported losses allegedly due to the cannabis industry. To oppose the current cannabis industry would demonstrate that industries such as alcohol and pill pushing cannot stand square in the face of competition and would rather interrupt the will of the people than find acceptable ways to compete. With options, the people are choosing a natural product they happen to like and believe in more than pills and alcohol–no wonder, given that pills and alcohol are proven to destroy our liver, cause overdoses and toxicology illnesses, lead to depression, sickness, blood and stomach disorders, addictions, organ damage and even death.

Isn’t the very essence of capitalism allowing consumers to have options, thus spawning greater competition, better quality products and lower pricing? It certainly is not to allow big business to control the entire gratification market-place or commandeer Mother Nature. In the 1920’s the FBI and administration outlawed alcohol as the root of all evils. During the prohibition era, cannabis was a legal and thriving alternative to alcohol. When America was suffering from the financial depression of the 1920s, Congress repealed the alcohol prohibition and the FBI needed a new enemy in order to justify its existence and jobs. Cannabis became the new enemy, a product that had been praised and included within the US pharmacology index. However, cannabis did not have a lobby nor an association committed to political contributions and power struggles. This is the same plant that our flag was sewn from, the sails that brought the first ships to America were made of, the drafts of the Declaration of Independence were written on, and some of America’s greatest minds use and utilize while creating jobs for Americans. Yes, even Steve Jobs was reported to have been an avid endorser of cannabis while creating the Apple Computer — which created U.S. jobs.

With all of the current publicly-available data, any attack made on the private and lawful cannabis market by the government or another industry would be asinine, and would be seen as nothing short of a conspiracy.

I will throw this out there: should the alcohol industry find ways to work with the cannabis space, think of the synergy! The synergy and ideas would be amazing. The merger of ideologies, development and sales by and between the alcohol industry and the cannabis sector would be a beloved blend of all that is good and all that is bad, but in a controlled, “safer,” economically stimulating and taxable market-place.

With the current momentum behind legalization around the globe, can the federal government of the US exert as much control as it once did when it comes to drug policy?

No it cannot. In fact, as Ganja Law consults outside of the US we are seeing first hand how other countries have changed their views about cannabis, have decriminalized its use, and are recognizing its medical and medicinal properties. Much of the world has woken up, learned the truth about cannabis, been shown the real behind-the-scenes reasons for the criminalization of cannabis and hemp, and has recognized the business and tax advantages of allowing the present industry, as a whole, and the jobs and small businesses thereby created. At Ganja Law we can help identify lawful, global projects, partners, and positions.

What countries outside the US are you currently consulting clients in, and where do you currently see the biggest opportunities related to cannabis — both for entrepreneurs to pursue business opportunities, as well as to challenge the status quo on global drug policy?

Outside of the USA, we are consulting throughout the Caribbean, parts of Western Europe and just began for clients in Australia. Our consulting extends into hydroponic research and food production as well as molecular harvesting such as terrapins and flavonoids for use in mixtures and extractions.

Do you think that the industrial hemp market’s versatility — providing not only medicine but also textiles & fibers, biofuels, building materials, etc. — will help lead to an open market in terms of CBD medicine?

No, quite the opposite. I believe that the multiple-use potential of hemp creates a favorable patent argument for Big Pharma or other powerhouse companies such as Monsanto. Don’t get me wrong, I’m not saying that I can’t beat them, but the battle will be more difficult.

Already we have seen Big Pharma pushing their agenda and attempting to take control over the CBD market. Kansas is passing legislation that would require CBD products to be dispensed by a pharmacy and manufactured only by FDA approval, meaning through Big Pharma. We at Ganja Law have already been preparing for this fight and will stand against anyone attempting to control the CBD, CBG and even the THC market place. We are anti-monopoly and fully support a free market, especially when it comes to the entrepreneurs who, through grassroots activism and persistence, were able to open these markets in the first place. It was not big business that opened this industry, but all of those idealists who went to jail for a plant and for your freedom of growth and use. It is so hypocritical for politicans and attorney generals to drink their drink, take their pills but not support a medicall, culturally and medicinally beneficial, organic plant that has roots in this country as deep as the Native American Peace Pipe and even deeper when reading the Bible and deciphering its related language and passages. Approximately 10,000 years ago, hemp was the first-ever industrious, human planted crop.

What should cannabis industry activists and lobbyists be focusing their efforts on right now?

Keeping the Federal Government away from the regulated State industry and not declassifying cannabis as a Schedule I drug. Or, should any declassification or decertification occur, to legislate this in such a way that the industry as a whole can enjoy and partake in, rather than taking it away from us. Big Pharma, the alcohol industry, the tobacco industry, lobbyists, and those with alternative or personal interests have been regular opponents of the cannabis industry until the people spoke out and the cause proved true. The saying is “if you can’t beat them, join them.” These special interests would seek to change this saying to read, “If you can’t beat them, take it away from them.”

Is there any hope for the current state markets if the federal government teams up with these special interests?

It is not all doom and gloom; in fact, the opposite. More states are coming online with cannabis acceptance and business development. States are increasing licenses, have eased on regulations, and have been consistently developing compliance program awareness that is not only practical but reasonable. A greater amount of ancillary businesses have entered the market with their technology, software, regulatory help and guidance. The states that have already enacted positive legislation and/or constitutional reform have been consistently broadening their laws, regulations and practices so as to allow the cannabis industry more freedom to positively evolve within their communities. Many states have begun a practice of decriminalizing or downgrading actions involving cannabis. Younger or wiser legislators are showing their willingness and eagerness to help their constituents and economies with cannabis reform. The hemp industry has taken off and a great political awareness has arisen distinguishing cannabis (THC) from hemp with little to no THC. The CBD market is blossoming with great promise on the horizon. The extraction industry has skyrocketed. Cannabis continues to ding the alcohol industry demonstrating cannabis as the growing preference. The medical community has shown increased support for cannabis and its applicability. Medical studies, research and development continue to show great promise. Medicare spending has been diminished, saving the taxpayers and the federal government millions of dollars, due to non-covererd cannabis purchases by patients who choose the plant over covered opioids and other pharmaceutical pills.

In all, Ganja Law & Ganja Consultants see and believe in this industry and those that have made it happen. There is certainly a growing process, complete with growth pains, but then again, what business and what industry doesn’t have those issues. It is an exciting time, a wonderful industry and history in the making. Work to improve the industry and note that the challenges we face continue to make our business practices better, safer and wiser. Ganja Law and its consultants stand ready, willing and able to help your legal and lawful endeavors in this exciting industry. Stay compliant, friends!

Thank you for joining us, Craig! To learn more about Ganja Law, you can visit their website, or connect with them via Facebook and Twitter.

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Josh Haupt: Three a Light, a Luxury Cannabis Cultivation Guide

3/20/2017

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Josh Haupt is the owner of three Colorado-based cannabis companies: Success Nutrients, Superfarm, and Tree House. Recently, Josh joined us for an interview about his recent release of Three a Light (as in three pounds per light), a luxury cannabis growing guide based on his experience. In this interview, Josh tells our host TG Branfalt about his earliest medical cannabis experiences — including the story of the first plant that Josh ever grew — as well as what readers of the book can expect from their purchase. The two discuss the reasons why Josh authored Three a Light, what the writing process was like, and what were the driving factors behind the book’s emphasis on luxurious photography and elegance.

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TG Branfalt: Hey there, I’m TG Branfalt, and you’re listening the Ganjapreneur.com podcast. The Ganjapreneur.com podcast give us an opportunity to speak directly with entrepreneurs and experts who are working on the front lines of the industry to normalize cannabis through responsible business, education, and activism. As your host, I will try to do my best to bring you actionable information to help you plan, grow, and manage your cannabis business. Today, I’m joined by Josh Haupt, the Three a Light author, owner of Success Nutrients, Superfarm, and Tree House out in Colorado. How are you doing this morning, Josh?

Josh Haupt: Doing wonderful. Beautiful day here. And yourself? You guys are up in New York, right? Is that right, are you in Detroit?

TG Branfalt: No, I’m actually … I was in Albany about six months ago. I’m in Detroit, Michigan. We’ve had back-to-back 50 degree days. So I’m excited to finally see some sunshine.

Josh Haupt: Yeah, count it.

TG Branfalt: Let’s start with talking about your background. I know that there’s a specific reason that you gravitated toward cannabis. How about you start with that story and how that lead to your place in the industry.

Josh Haupt: Yeah. I guess if we start from square one, it would be my epilepsy. I was diagnosed with epilepsy at about 13, 14 years of age. I had a good amount of seizures. They got me started on quite a heavy amount of antibiotics that carried a whole slew of side-effects. After a few years of taking these antibiotics, I realized that it wasn’t the best long-term solution, if you will. So I started working around with some medical cannabis and that was drastic for me as far as my improvement with seizures and I was able to wean myself off of all the medication that they had me on. It was a much better option for my health. Started growing my own cannabis by like 15, 16 years old, and kinda had a small part of the garden. I was always tasked with taking care of the garden as a kid. So I had a small part of the garden that I kinda had my own little hidden plant in. By the time it got big enough, my dad found it. He said, “Well we can’t kill it now, buddy.” And so it went.

I’ve definitely fallen in love with cannabis from a bunch of different perspectives. One of the things that we try to do with the book, was just make it more politically acceptable to the U.S. I feel as though the last two to four and six years have been drastic as far as the masses of people understanding that there are some serious medical benefits of cannabis. Whether you’ve got Crohn’s really bad, or you have epilepsy, or you got PTSD, or whatever it may be, cannabis can definitely help you with these things … I don’t want to say much more than Western medicine can, but I know that it’s very very comparable, if not superior to Western medicine. That’s what really got me into cannabis, just trying to change the stigma around it. I would suggest that it’s probably the backbone behind all the businesses I’m a part of.

TG Branfalt: When your father found the cannabis plant, did you talk to him about how you were using it medically? What was that conversation like with your parents?

Josh Haupt: My parents were young when they had us, so I kinda had younger parents than a lot of my friends. My dad at the time … They had known that we were kind of smoking a little bit here, a little bit there, and they always encouraged a balance. They never really told us we couldn’t do it. They just said, “Hey buddy, make sure if you’re gonna do it, do it on the weekends and be safe about it. If you need to smoke at the house, that’s obviously fine.” We found some seeds in the bags that we were smoking, that old-school shwag, if you will. So I threw it in the garden.

So it wasn’t the hardest talk. My parents, they definitely understood that at the time, it was probably more recreational than medical anyways. I just didn’t really understand a lot of the benefits. But I would suggest that that talk was pretty easy with my dad. He’s a real great guy, and at the time, like I said, it wasn’t the biggest curve-ball for them, to know that we were smoking cannabis. ‘Cause they kinda already had a good idea. They had encouraged us, “Hey guys, if you’re gonna do it, make sure you bring it home and do it in a safe environment. Rather you do it and be safe than possibly make some bad decisions, or be out driving, or whatever it is you’re doing when you’re in high school.”

TG Branfalt: How did you figure out that this was a treatment for you?

Josh Haupt: Well it had come up when Colorado passed it for medical purposes. I had a buddy at school say, “Hey, you know cannabis actually really helps you with your epilepsy.” I said, “No way!” and then kind of dove into it from there. Cannabis helps epilepsy incredibly, however, the real property that comes from it that’s very beneficial is gonna be your CBDs. Your CBDs are just gonna help tremendously. I kinda gave up Western medicine altogether, and all my medication about six or seven years ago now. I’ve been doing amazing; it’s been great. I just take some CBD drops in the morning, I’ll have the occasional joint … It used to be throughout my day, but now my day’s so busy that I kinda have to wait ’til the end of my day, and I’ll just have a joint. That kinda just helps with lowering the stress, keeping the stress away. Stress plays into seizures incredibly, so cannabis is huge for that. The CBDs help your brain … All a seizure is, is a misfire of neurons, electrons, so the CBDs really help to balance those neurons and electrons. It’s most importantly, slow down the misfires.

TG Branfalt: The trial-and-error that patients have to go through in order to find out what works for them, too, is something that I really hope researchers and people making regulations in legal states … I really hope that they recognize that having a comprehensive medical program sort of eliminates this, having to … Again, this trial-and-error system.

You mention in your book, and I do want to talk about this … First thing, when we spoke briefly on Friday and I mentioned I had an industry guy here to my house and I told him I had the book. He was really excited to see it. We were talking up until that point, I hand him the book, he didn’t say a word for 45 minutes. It’s really elegant. It’s definitely your coffee table book, it’s something that, your friends come over and they pick up, and they’re like, “Wow!” That’s what the reaction of this individual was. He was very impressed by the color, by the ease of which the information is presented, the photography which, as a guy who loves that sort of thing, it’s really really top-notch.

Josh Haupt: Thank you. Thank you so much.

TG Branfalt: It feels like your holding a luxury item.

Josh Haupt: That’s the goal.

TG Branfalt: So that was something that you thought about when you decided to embark on this project. Can you tell us about the design process and the writing process for this book?

Josh Haupt: Yeah. The goal behind the book was simple. We didn’t have the ability … When I was, kinda rewind and say eight years, ten years ago, I was helping a lot of my friends up in the mountains, set up two lights here, four lights there. I’d give them a little pamphlet that just followed our regimen, say, “Hey. Feed ’em these nutrients, do these Schwazzes on ’em, and defoliate here.” Then I’ll show up and kind of help them along the way. So it was our little guide and when I’d set up my 15th friend, I was like, “Gosh, dang, man. I should just write a book on this.” Because there’s not a guide out there that exists, that says, “This is how you grow cannabis from A to Z.” You know, very thorough.

So we did exactly that. It took me about two and a half years to write the book. I thought it would be about six months to write it, but it’s just a lot of photos that you have to take, and then you have to retake, and retake, and retake. We knew one thing that’s for sure, that we were gonna charge a lot for this book, because it was gonna be something that the industry hadn’t seen yet, and most importantly, it was gonna be something that could really allow somebody to be very, very successful with if they chose to do it right. So, with the industry average being a pound a light, and all of a sudden you’re getting three. I mean, shoot. Even at the price point of 500 dollars, you have a book that pays for itself with one yield and one harvest and one light, let alone multiple lights and multiple harvests. So that was what we needed. We needed to make the book feel like it was 500 dollars.

So that’s where the whole … We tried to give it a Louis Vuitton approach to it, and say, “Hey, this is very elegant. This has a really strong feel to it.” And then on top of that, it has almost like a Apple user guide. Friendly steps, very, very user-friendly if you will as far as the integration of what we’re trying to teach the people. So we wanted to use a lot of pictures. Pictures are worth a thousand words, they say, so that’s why we wanted to scale up more on the photos and less on the actual content.

A lot of the books that are available right now for people to read about cannabis are gonna be very, very botanist-oriented. What I mean by that is a lot of times, people have a hard time reading them. We knew that the end user for our book was gonna be a guy or a person that wanted to teach themselves how to grow cannabis. And most importantly, do it on like a Saturday, or a day that they have off. And they’re also probably gonna want to smoke a joint before they dive into the book. If you wanted to smoke a joint and dive into another book, it would be very, very literature-based, it would be very hard to follow. But if you want to smoke a joint and then hop into this book, it’s gonna be easy. “Step, step, step, step, step. Here you go, and then you’re done.”

So that was the goal. We wanted to make it incredibly user-friendly but also make it feel like it was 500 bucks. That way, what you got the book, you weren’t like, “Oh my goodness. I just got this little paperback novel, and I just dropped a mint on it.” We really wanted to make sure it had this elegant approach, and kind of a stigma that like you said, that coffee table book, people are like, “Wow, this is sweet! I want to flip through it. What’s going on here?”

TG Branfalt: Yeah, and it is … As a guy who’s grown vegetables outdoors, I’ve never grown cannabis, I’m flipping through the book and I feel like if I were using this as a guide, at least the first couple of attempts, I would be able to do this.

Josh Haupt: Absolutely you would. We’ve had a ton of first-time, never grown before, using our book, and have actually hit three pounds a light. Which is unheard of if you take a first time grower and you said, over three pounds a light is … It’s been great. But that’s the goal though. The goal is, and we actually gave the book to a lot of people, family members, family friends, just saying, “Hey, will you flip through this and tell me if you’re confident to give it a shot?” ‘Cause they’re the perfect case, someone who … Even one of my aunts said the same thing, “Gosh, I feel like I could grow it now!” I said, “Cool! That’s the goal.” We want to make you feel like, “Hey, I’m confident enough to get started in this direction. I’ve always been a little overwhelmed before. But now, this really breaks it down in a manor of step by step by step. We can get this done.”

TG Branfalt: It also provides an outline of the tools that you need. Because, for somebody like me, that’s like, “Oh, I’m gonna grow some cannabis. I’m gonna start it in a plastic bag, I’m gonna throw it in some soil. And I’m just gonna, you know … ” The same way that you might start a garden plant or something. So to have that as a guide, and you don’t endorse any products, which is also a really incredible thing to see. It’s like, “Hey, we’re giving you the information, but we’re not saying, ‘Go buy such-and-such.'” You know?

Josh Haupt: Absolutely, yep. Yep.

TG Branfalt: I want to talk to you a bit more about the Schwazze technique. But before we do that, we gotta take a short break. This is the Ganjapreneur.com podcast, I’m TG Branfalt.

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TG Branfalt: Hey there, welcome back. This is TG Branfalt, you are listening to the Ganjapreneur.com podcast. I’m joined by Josh Haupt, the Three a Light author, owner of Success Nutrients, Superfarm, and Tree House. Before the break, we’re talking about the Three a Light book, and you said several times that it yields three pounds per light. Why don’t you tell us how, you not only have gotten these results, but how’d you figure out the Schwazze technique that you mentioned?

Josh Haupt: The Schwazze technique is very unique and disruptive and different. You can put a lot of adjectives on it. It’s stuff that, when we first did it, other people were like, “Are you kidding me? Did you do that on purpose?” We’re like, “Absolutely.” I can’t take credit for figuring this one out. This was something that my mentor taught me a little over a decade ago. The “why” behind it was to … We’re not growing fan leaves we’re growing flowers. We need to focus the plant’s energy on the ability to just produce flowers. In addition, we need to create optimum light penetration. When you don’t have all these leafs on there, the light can literally make it all the way to the bottom of the plant. That was the goal, those are the two “why”s behind it: optimum light penetration and refocusing the plant’s energy.

The tricky part was introducing the right feed line to it. That’s where our nutrients come into play. ‘Cause you’re removing … People call those fan leaves “sugar factories” because they’re packed full of so many micronutrients that then feed the flower. So if you remove those “sugar factories” without replacing those sugars that they would be getting from the leaves, in the feed line, you really kind of shoot yourself in the foot. Our Schwazzing technique is very much a tight rope. If you’re gonna do it, make sure you follow all the steps. Don’t just follow one of the steps. So yeah, that’s the Schwazze technique, I would say. It’s very, very unique and different. Like I said, if you’re watching any of our YouTube videos, you can kind of see it happen real fast in front of your eyes. Most importantly, you can see them grow back so quickly with the proper feed regimen that we offer as well in the book. So it’s real obvious how to feed your plants.

TG Branfalt: That’s something else that I noticed. When I got your book, and then I started doing research on you and the whole premise, I noticed the YouTube videos. I also noticed that you guys have a customer service line.

Josh Haupt: Absolutely, yeah.

TG Branfalt: What’s the most common question that comes through that line and what are some of the mistakes that people make while trying to adapt to your methods for the first time?

Josh Haupt: Some of the most common questions we get are, “Hey, what kind of genetics and strains do you need to go hit these yields?” We let them know, you can pretty much hit it with all yields. It’s like a one-size-fits-most hat. Like a snap-back hat, it’s gonna fit 90 percent of the people that try it on, but there’s gonna be 10 percent of the people that don’t like it. We kind of treat our methods with strains, where you only hit three a light with 90 percent of your strains, and you’re gonna have those 10 percent that might be a little bit tricky to achieve those results with. But we definitely stand behind it, and I think that one of the trickiest parts is when I get someone who buys my book that’s like a genius grower.

As you know, in any industry, you can’t teach a genius anything. The growing industry’s no different. I have people that buy my book that they’re already a genius, and you know they’re just trying to prove me wrong. They’ll buy the book and they’ll only use the Schwazze chapter. They won’t follow anything else. They’ll buy a 215 page book and they’ll only use 8 pages of it. All they want is the Schwazze. Then they call me and they’re upset because the Schwazze hurt their plants, and it hurt their yields, and it didn’t help, and they need their money back for their book. It’s a very short list of people that have done this. We’ve had over a thousand books sold with only … I can count on two hands how many books have been returned. There’s not very many at all. We have a lot of happy people with it.

But that’s probably the trickiest part where people mess up. They try to just adapt their methods and morph them with my methods. If you keep us very involved with our customer service, ’cause we have a team of master growers that are here to help, than you’ll probably do all right. But if you’re just trying to wing it on your own and adapt just one section of the book and say “screw it” to the other sections, you’re really gonna shoot yourself in the foot with the ability to hit the high yields. I’d say that’s probably gonna be the most common thing, if I had to put my finger on it.

TG Branfalt: In the book you refer to a “green wave” which is the energy efficiency. As more states permit cultivation, I think that we’ll see more regulations to curb energy use. California‘s Prop 64 has water considerations. They just passed, in Lansing, Michigan, they just passed basically a registration program if you’re growing cannabis and you use over a certain kilowatts per hour. What steps do you think that indoor growers can take to limit their energy consumption, and is your method effective to that end?

Josh Haupt: Absolutely it is. I think that it really comes down to efficiency in any industry. In the beginning of most industries you have super high margins, greater prices. But then as an industry becomes more, I don’t want to say flooded, but as more people are attracted to that industry, your margins fall and your competition rises. So those are the things that we pride ourselves on at Three a Light, is the ability to be extremely efficient with the lights that you do use and the facility that you do have. You want to make sure you’re pumping the most out of it.

For example, there was an article written about a 350 thousand square foot grow-op in Canada. This grow in Canada produces about a thousand pounds per month. I’m like, “Okay, cool, that’s impressive.” But we have 35 thousand square feet of canopy space in Colorado, and our grows produce a thousand pounds per month. So efficiency is very key with our facility. You need to make sure that you have soldier plants, that way whenever you pull up one plant, you’re pulling, times that by 88 or how many plants you have in the room, and that should be your harvest. Efficiency is very, very key.

We’re actually trying to lead that green wave as well. We’re working through some energy tracking things at my facility, Superfarm, where we can track the exact amount of energy, basically all of our utilities, our electric, our water usage and everything, to the exact kilowatt or the exact gallon so we know to the T exactly what we’re using. Once you can address what it is that you’re using, it makes it a lot easier to make tweaks and changes in tracking these things to make sure that we’re as efficient as possible. ‘Cause it comes into the price per pound. If you’re spending a bunch on your electricity and a bunch on your utilities, you’re not very effective with your … Your price per pound needs to be as low as possible. Those are the things that we try to stay on top of at our facility.

TG Branfalt: With all these considerations in mind, why didn’t you just keep this whole technique to yourself?

Josh Haupt: That’s a great question. That’s probably one of the most common questions I get, because people are like, “Josh, why would you give away all this intellectual property? This is really unique, how you do it.”

My biggest thing is, I think that there’s so many wheels, I’m sorry spokes, on a cannabis wheel, if you will, when it comes to the entire industry, that there’s plenty out there for everybody to do well for themselves and get a pretty good piece of the pie. To me, the most important thing was, this needs to be more politically correct. This needs to be more politically acceptable. We need to have some kind of tome or token to help further the industry’s acceptance by the world, for the matter.

So that’s why we dropped the book. We wanted to have a book that said, “Hey, this a very professional book. It’s expensive, so you’re gonna pay for it. You need to respect it, and you need to understand that this industry has taken off and it’s going to new heights.” And I think that the book was a good representation of that. The book is a good … Just so we’re clear, you can see that this industry isn’t going anywhere. If anything, it’s only advancing. Kinda back to my original answer there, we felt that it was a great tool to move the industry forward … Just shine a better light on it.

TG Branfalt: You mentioned being politically correct and acceptance, and that sort of thing. What sense do you have as a producer, as a grower, and within the people in your industry, what is your guys’ kind of feelings with the new administration, Jeff Sessions, Donald Trump, that mess?

Josh Haupt: I think, everybody’s got mixed feelings about it, and everybody’s kind of on the fence. Just being like, “Oh my goodness, hope we don’t turn our world upside-down.” I don’t think that’s gonna be the case at all. I think Donald Trump’s a Golden Rule kind of guy. What I mean by that, is the guy with the gold makes the rules. I think that’s Donald Trump.

Donald is very much about getting the country out of debt. That’s a big goal of his. It’s one of those things where he needs every little bit of tax revenue he can get. This is such a cash cow, marijuana, cannabis. It’s one less black market drug as well. It’s one less thing in the black market if you can legitimize this. We have the ability to start exporting to other nations. I really hope that he doesn’t slow … I don’t see him slowing this down and I don’t see him really doing anything other than allowing the states to progress at their own pace, because we’re paying so much in taxes. An incredible amount of our overhead goes to taxes. It’s just how it goes; you gotta pay to play.

TG Branfalt: I just read a story this morning, a township in Colorado, Parachute, had banned dispensaries, and then they lifted the ban in 2015, and now 30 percent of their sales tax revenue is derived from the cannabis industry there.

Josh Haupt: Oh, absolutely. It trumps everything. I don’t know anybody else that’s paying just under a half-million a month in taxes, but that’s what we’re paying for my grows. Each month. These guys are getting way more money from me than I can even get from my grows. Uncle Sam takes more of the rake than anybody else does. I feel like the people that don’t want it are kinda being foolish and stuck in their old ways, and it’s time for them to get with the times. I don’t want to say grow up, but just get with the times, man. We’re not in the Weeds propaganda days of, “Weed is the devil!” It’s not that bad. It’s a plant, guys. Come on.

TG Branfalt: Denver, Colorado is still standing. It’s not in flames, right?

Josh Haupt: Correct. It is very much still standing and very affluent. If anything, we have enough money in the state of Colorado to rebuild every bridge that they want to do, or change every highway, hire all these people, give them overtime, you name it. The state is not hurting for cash. That’s for sure.

TG Branfalt: I want to talk to you a bit more about Colorado‘s industry. But before we do, we gotta take one more short break. I’m TG Branfalt, this is Ganjapreneur.com podcast.

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TG Branfalt: Hey there, welcome back. This is TG Branfalt, the Ganjapreneur.com podcast. I’m with Josh Haupt, Three a Light author, owner of Success Nutrients, Superfarm, and Tree House. Before the break, we were talking a bit about policy. How has Colorado‘s industry changed as the market there has matured? What impacts have you noticed from the decline in the wholesale flower prices?

Josh Haupt: That’s definitely hit very close to home with myself, considering I produce about a thousand pounds a month. We took a ride on the chain big time with the wholesale flower prices going through the floor. I think that’s just what you can expect in any industry. You have supply and demand. At the beginning, you’re gonna have shortages of supply, and demand’s gonna stay very high. With that, you can have high prices. But then eventually, the supply is gonna catch up with the demand. People are gonna build enough facilities over the time, and that’s kind of what happened here. In a lot of ways we have a very stable industry now. I would say that the price per pound for wholesale has definitely stabilized. It’s not a very high number, however it’s also a very stable number.

I anticipate this happening in other states. I look forward to the time when it tips federal. When it tips federal, which means I can ship inter-state or whatever that is, that’s when the supply is gonna offset the demand incredibly, of course. We’re not gonna have enough products. That will be fun; I look forward to that, ’cause we’re definitely producing quite a bit right now, and it would be nice to get that price per pound up to a higher note. But it’s affected the industry quite a lot. We’ve had more distressed assets, and by distressed assets I mean failing businesses as far as from grows to dispensaries this last summer in Colorado than ever before. Those are the things that are going on now; it’s really showing the people that are growing efficiently are going to be staying in business, and the people that are not doing it right are gonna have a hard time staying in business, what it comes down to. It’s really separated the market, is what I would suggest it’s done over time. It’s very much separated, and a lot of people, they either sink or swim in a lot of ways.

TG Branfalt: Are you guys kind of hopeful that maybe the demand will rise a little bit because of the potential of the cannabis clubs?

Josh Haupt: I think the demand’s definitely gonna rise, absolutely. I think cannabis clubs are key, and think that keeping them in the right areas of town, and make sure they’re not around kids, I think is gonna be massive. And I think that the demand’s gonna stay very constant. I think that you have so many dispensaries in the state of Colorado, and you have so many grows, and I think that we’re just at a pretty good stable standing-point right now, if you will.

TG Branfalt: What about the decision to not allow cannabis and alcohol to be sold at the same place? Do you think that that’s a good thing, a bad thing, or are you sort of indifferent?

Josh Haupt: I think it’s a temporary thing. I think that right now, with it still being a Schedule 1, and with there being so many uncertain things around cannabis, they just really want to keep them in their own pools. But I do think there’ll be a day when you to the bar, and the bartender is gonna ask you how you want to feel. And then, depending on your answer, “Oh, I’m really sad.” Well, “Hey, don’t let me give you a shot of Jack Daniels. Fire up this sativa right here, and it’s gonna remind you, don’t stress too much. Here you go.” Or, hey, you know … The bartender’s gonna ask you how you want to feel is what I think is gonna happen in the future rather than what you want to drink.

So I think that right now, it’s a good fit, with them being in different pools. But I think that over time, there’s too many similarities between the two industries to really keep them apart. You got brands coming in, you got … You have pretty much cannabis following suit to alcohol. It’s pretty much … They’re not too far from each other, that’s for sure.

TG Branfalt: What advice would you have for entrepreneurs who are looking to enter the cannabis space?

Josh Haupt: Advice for entrepreneurs who are trying to the cannabis space, make sure you get somebody on your team that is highly educated and knows what they’re doing, and has done this before. If it’s your first rodeo, like anything else, it’s a very expensive learning curve. You don’t want to get stuck with all those super expensive fees. When it comes to cannabis, you can be spending so much money. I would suggest that you get a tour guide, get someone on your team, whether you want to run a dispensary, whether you want to have a big mixed facility, infused products facility, or whether you want to have a big grow. Just make sure you have someone on your team that can really watch your step, is what I would highly recommend.

I’ve seen people get into it by themselves and not want to pay a consultant some nominal fee, and then next thing you know, they’re a completely failing business because they didn’t want the help of someone who’s already done this before, because of some little fee. I think people need to understand that, A, it’s gonna cost more, ’cause now the barrier of entry, every day that goes by, gets higher and higher. A lot people in the industry want to put a lot of money into it. That’s what I tell them. Just make sure you get a tour guide.

TG Branfalt: Finally, could you tell us where they can find your book?

Josh Haupt: Yeah. The book’s available at Threealight.com, so it’s all one word. And if you are in other states and you want to get your hands on it, please reach out to us, utilize our customer service team, is what I would highly recommend. We had people that, at my facilities on any given day we’re mixing about five thousand gallons of water. Use whatever you can run into, at your home grow, there’s a small chance you probably would’ve run into it. We’re happy to help you build a solution. And just utilize all the things that come with the book. It might be 500 dollars, but you also get a free starter kit of nutrients, that’s another 320 bucks, that’s free. Not to mention all your customer support is all included in your book purchase as well. Utilize the team.

TG Branfalt: Awesome, man. Awesome. I really want to thank you for being on the show. Like I said, for me, someone who’s ever grown a cannabis plant, I can’t wait until I can utilize the information in this book. And congratulations on creating just an elaborate, really beautiful product for the industry. It’s a really neat thing to hold and flip through; it’s totally cool.

Josh Haupt: Thank you so much, I really appreciate that. That carries a lot of weight, coming from yourself, thank you.

TG Branfalt: Thanks, man. And again, I appreciate you coming onto the show.

Josh Haupt: Absolutely, it was my pleasure. My pleasure.

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

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A sunrise view of San Francisco.

San Francisco, Calif. Considers Creating Cannabis Department for Adult-Use Rollout

3/20/2017

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San Francisco, California is considering legislation to create a Cannabis Department to help the city handle the implementation of the adult-use cannabis regime, the San Francisco Examiner reports. The proposal, introduced by Supervisor Jeff Sheehy, would create the department, and Mayor Ed Lee would appoint the director and all seven members of the Cannabis Commission. The appointees would need to be approved by the Board of Supervisors; rejection would require a two-thirds vote.

City officials believe the department is necessary in order to handle the expected influx of cannabis industry operator applications. The commission would be tasked with approving or denying commercial permits and enforcing the codes and guidelines once they are developed.

Supervisor Hillary Ronen said that while she supports the creation of the department, she would prefer that the appointments are split between the governor and the board – which would require a voter-approved referendum.

Sheehy’s legislative aide Bill Barnes indicated that the plan uses money derived from industry fees to operate rather than using monies from the general fund. The commission would not be responsible for the medical cannabis industry, which would still be subject to Public Health Department and Planning Commission oversight.

The creation of the department was recommended by the State Cannabis Legalization Task Force.

 

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A wide fan leaf from a mature hemp plant.

New York State College’s Hemp Society Industrial Hemp Proposal Waitlisted

3/20/2017

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A proposal to grow hemp by the State University of New York College of Environmental Science and Forestry’s Hemp Society has been waitlisted by the state Department of Agriculture and Markets because other institutions applied for licenses before the group had an opportunity, according to the Daily Orange, Syracuse University’s student newspaper. Under the state’s 2014 Industrial Hemp Pilot Research Program, the state awards just 10 licenses for industrial hemp cultivation.

The proposal would see SUNY-ESF obtain the license to grow hemp on campus and the program would ultimately conduct the research; members of the Hemp Society would participate in the project. Ed Shao, treasurer of the Hemp Society, said he is hopeful that the college will receive a license by fall of 2018.

Currently, SUNY Morrisville is the only college in the state to hold a hemp cultivation license. Their seeds are provided by JD Farms – an Eaton farm that also holds a hemp license.

Jennifer Gilbert Jenkins, a SUNY Morrisville School of Agriculture, Sustainability, Business and Entrepreneurship assistant professor, said that she has experienced her own hurdles while researching the plant due to stigmas and misunderstandings surrounding hemp.

“I walk into situations thinking I’m going to be discussing the research we are doing but I spend most of my time clarifying that, no, industrial hemp is not marijuana,” Jenkins said in the report. “It’s a stigma we must really work to break.”

The Hemp Society attempted to organize a group at Syracuse University, but the SU Student Association rejected their application to become a registered student organization.

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Two cannabis colas about to be harvested inside a Washington cultivation site.

New Hampshire Lawmakers Consider Adding Connective Tissue Disorder to MMJ List

3/20/2017

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New Hampshire advocates are lobbying state lawmakers to pass a bill adding Ehlers-Danlos syndrome, a painful connective tissue disorder, to the list of qualifying conditions for medical cannabis access, according to a WMUR report. Ehlers-Danlos syndrome affects one in 5,000 people, leaving them in chronic pain and at constant risk of joint dislocation.

Dr. Angela Shepard, who treats chronic conditions such as Ehlers-Danlos, said patients suffering from the condition often have medication sensitivities, noting that awareness of the condition is limited.

“It’s not appropriate always to be relying on opiates,” Shepard said in the report.

State Sen. Dan Feltes, Democrat and sponsor of the bi-partisan legislation, said that patients need access to alternative pain treatment options, such as cannabis, if the state is serious about reducing the number of opioid prescriptions.

“That’s what we’ve recognized here in New Hampshire. We continue to make progress on this,” he said. “It hasn’t gone as fast as some would like, but certainly this condition needs to be put in as a qualifying medical condition in our statute.”

Kim Pang, a Concord resident who suffers from the condition, will testify in front of the Senate Health and Human Services Committee in favor of the bill. She said that she’s “in constant pain all day long.”

“It makes it hard to work. It makes it hard to clean my house, do yard work, pretty much do anything,” Pang said. “Everything physical is a real challenge.”

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The state capitol building of Connecticut.

Bill Imposing 6% MMJ Sales Tax in Conn. Strongly Opposed at Hearing

3/20/2017

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Connecticut lawmakers are considering adding a 6 percent sales tax to medical cannabis products, but the plan didn’t gain much traction during a public hearing on Friday, according to a report from CTNewsJunkie. Patients in the state already pay $100 annually to register with the program and an average of $150 for an annual medical appointment for physician certification.

Tom Schulz, president of licensed producer Connecticut Pharmaceutical Solutions, told the committee that if sales taxes are levied it could “push people back to the black market,” adding that the average patient purchases 2.5 ounces per month which runs about $200 to $400.

“We are worried that the surcharge could exacerbate the price differential between the pharmaceutical grade medical marijuana that is available through the program versus what is available on the street,” he said in the report. “This price differential would tend to drive the use of marijuana that is often unsafe or contaminated.”

Margherita Giuliano, executive vice president of the Connecticut Pharmacists Association, offered written testimony to the House Finance, Revenue and Bonding Committee explaining that many of the 17,000 enrolled patients are “suffering from severe illnesses” and low-income due to their disabilities.

“This is a measure that would impose additional financial hardship on Connecticut citizens, particularly our patients, who already spend a significant portion of their income on medical care,” she wrote. “Many are disabled, from low-income families, or already seeking end-of-life care. The burden of additional taxation on these individuals is unjust, especially in light of the fact that medical marijuana is not covered by insurance and thus, patients are paying for it out-of-pocket.”

According to the bill text – introduced by Republican Rep. Vincent Candelora – the funds would be used for drug abuse treatment programs.

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The Georgia Capitol Building in Atlanta, Georgia.

Georgia Senate Passes Bill to Expand MMJ Qualifying Conditions

3/17/2017

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Georgia’s Senate has passed a bill that would expand the qualifying conditions for medical cannabis use, while keeping the maximum allowable THC percentages in cannabis oil at 5 percent, the Atlanta Journal-Constitution reports. Under the measure patients diagnosed with AIDS, autism, Alzheimer’s disease, Tourette’s syndrome, epidermolysis bullosa – a rare genetic connective tissue defect – peripheral neuropathy, and those in hospice care would be allowed to access the program.

Last month, the Senate passed a bill adding autism to the qualifying condition list, but dropped the permissible THC content to 3 percent. That bill was moved to the House, who will not consider the measure in light of SB.16, which will move next to a House committee that is expected to take up the proposal next week.

Earlier this month, the House passed HB.65 which would further expand the program, although it’s unclear whether the Senate will consider the legislation with the passage of SB.16 – which includes several of same conditions as HB.65. According to the AJC report, SB.16 was passed after a “compromise,” so it’s possible some conditions were left out of the Senate measure, which in return, didn’t drop the allowable THC limits. HB.65 passed the house 156-6.

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New York City skyline from the top of The Rock.

Chronic Pain Patients Can Apply for MMJ in NY Starting Next Week

3/17/2017

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Chronic pain patients in New York will be able to seek a physician’s recommendation for medical cannabis beginning Mar. 22 – a move that could add significantly to patient counts and help combat the opioid crisis in the state, according to a Journal News report. The expansion comes more than a year after the program’s launch.

“Improving patient access to medical marijuana continues to be one of our top priorities, as it has been since the launch of the program,” Health Commissioner Howard Zucker said in the report. “These key enhancements further that goal.”

The Health Department also announced that physician assistants can now register with the state to recommend medical cannabis so long as their supervising physician is also registered with the program. Both the chronic pain qualifying condition and physician assistant changes were announced by the agency in December.

“As a physician, I applaud efforts to expand the program based on the existing science and improve access for those patients who could benefit from treatment with dependable, real-dose medical cannabis,” Dr. Stephen Dahmer, Chief Medical Officer of Vireo Health, said in a statement.

Under the new rules, chronic pain is defined as “any severe debilitating pain” that has lasted “three months or more beyond onset, or the practitioner reasonably anticipates such pain to last three months or more beyond onset.”

The state is also considering doubling the number of operator licenses available in the state; however current licensed operators are still not profitable due to low patient counts caused by the program’s restrictive nature.

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A large, trimmed cannabis nug lying sideways on a wooden surface.

Ark. Senate Passes Six Bills Related to Voter-Approved MMJ Statute

3/17/2017

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The Arkansas Senate has passed six bills relating to medical cannabis, including one that codifies the creation of the Medical Marijuana Commission, and another that allows employers to establish cannabis-free workplace policies, according to NPR-affiliate KUAR. The latter would allow employers to prevent employees with medical cannabis recommendations from showing up to work if they are under the influence of cannabis.

Although the voter-approved Arkansas Medical Marijuana Amendment bars employers from making employment decisions based on whether an employee holds a medical cannabis card, it does not include language about what employers can do if an employee shows up to work under the influence.

“It’s setting up that process to where, if somebody comes to work and they’re clearly impaired, they do not need to be operating a forklift or heavy equipment, things like that,” state Sen. Missy Irvin, the Republican sponsor of the bill, said in the report.

Another measure passed on Thursday, HB.1369, directs medical cannabis sales tax revenues to the Alcoholic Beverage Control Division, Department of Health, Medical Marijuana Commission, or any other agency that incurs expenses regulating medical cannabis.

HB.1436 would see operator licenses expire on June 30 of each calendar year – the day prior to the start of the state fiscal year. The change will likely help lawmakers craft the state budget, allowing them to include funds derived from medical cannabis business licensing fees.

HB.1507 would allow the commission and the departments of finance and health to collect fines and fees from licensed operators that violate regulations; and HB.1584 would allow the transfer of a licensed dispensary or cultivator to “a natural person” associated with the facility if the original owner ceases to be in control.

All of the measures have already passed the House; however they were amended in the Senate and must pass the House again before moving to the desk of Gov. Asa Hutchinson.

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A sunny patio at Oxford University in Oxford, England.

Oxford University Launches Cannabinoid Biomedicine Research Program

3/17/2017

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Oxford University is teaming with Kingsley Capital Partners on a multi-million dollar medical cannabis research program to develop new therapies for acute and chronic conditions, according to a CNBC report. Kingsley is providing up to $12.36 million for the program through its new biopharmaceutical arm Oxford Cannabinoid Technologies.

University scientists hope to develop new treatments for pain, cancer, and inflammatory diseases by studying the molecular, cellular, and systems mechanisms of cannabinoids.

“Cannabinoid research has started to produce exciting biological discoveries and this research program is a timely opportunity to increase our understanding of the role of cannabinoids in health and disease,” Ahmed Ahmed, professor of gynecological oncology at Oxford University, said in a statement. “This field holds great promise for developing novel therapeutic opportunities for cancer patients.”

Neil Mahapatra, managing partner at Kingsley, said that research into the particular pathways and mechanisms of cannabis that provide relief for chronic pain patients is “limited and long overdue,” adding that any breakthroughs could “help millions of people around the world.”

In January, the United Kingdom’s Medicines & Healthcare products Regulatory Agency reclassified CBD as a medicine; however there is still not access to full plant medical cannabis in the nation.

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The West Virginia State Capitol in on U.S. Route 60 in Charleston, West Virginia..

Adult-Use Measure Introduced in West Va.

3/16/2017

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Democratic West Virginia House Delegate Sean Hornbuckle has introduced a bill to legalize cannabis use for adults 21 and older in order to allow “law enforcement to focus on violent and property crimes” and generate revenue “for education and other public purposes.”

According to the bill text, the measure would regulate cannabis “in a manner similar to alcohol,” meaning taxes would be imposed, products would be tested and labeled, and drivers suspected of driving under the influence of cannabis would be charged with DUI. Public-use would not be allowed and subject to a $200 fine. The measure would impose felony penalties for extraction using substances other than water or vegetable glycerin, providing for up to three years in prison and fines up to $5,000.

Adults would be allowed to possess up to 1 ounce of flower in public and 5 grams of “hashish,” and allowed to grow up to three flowering plants and three immature plants out of public view.

Municipalities would be allowed to enact their own industry rules or bans under the law. The legislation does not indicate what the tax structure would be, or whether towns and cities would be able to add their own tax rates.

The measure has been moved to the House Health and Human Resources Committee, and would need to pass through the Judiciary Committee before moving to the floor for a full vote.

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