Proposed U.S. Senate Bill Would Grant Marijuana Businesses Bank Access

A bill that would grant banking access to legal marijuana businesses has been introduced in the U.S. Senate, paving the way for companies in marijuana-legal states to work with financial institutions.

The Marijuana Businesses Access to Banking Act of 2015, proposed by Colorado senators Michael Bennet (D) and Cory Gardner (R) would prevent criminal prosecution, asset forfeiture and liability for banks that choose to work with legitimate marijuana businesses that operate in states where the drug is legal. The bi-partisan bill carries six co-sponsors including senators Rand Paul (R-KY) and Elizabeth Warren (D-MA). Neither Paul nor Warren represent states where the drug is currently legal for recreational use.

The bill (S.1726) would prohibit federal banking regulators from penalizing or discouraging banks from providing services to legitimate state-sanctioned and regulated marijuana businesses, terminating or limiting the federal deposit insurance of banks that choose to work with legitimate marijuana businesses, recommending or providing incentives to stop banks from doing business with marijuana businesses; or taking punitive actions on loans to owners of marijuana businesses, according to the bill text.

The bill does give banks the right to refuse financial services to marijuana businesses if they choose.

“Ever since Colorado voters approved the legalization of recreational marijuana, conflicting federal and state marijuana laws have required banks to refuse basic financial services to marijuana-related businesses in Colorado. In turn, this has forced the industry to adopt an all-cash business model that fosters violent crime and puts all Coloradans at risk,” Gardner said in a statement. “This commonsense legislation solves a major public safety problem in my state by giving legitimate businesses acting in compliance with state laws access to the banking system.”

Last February the Justice and Treasury Departments released guidelines for banks that choose to do business with cannabusinesses but those guidelines did not properly protect banks from the penalties for dealing with the cannabis industry, which is still federally illegal. The guidelines also failed to provide a framework by which marijuana businesses can accept credit cards or write checks.

Dr. Mitch Earleywine, chair of the National Organization for the Reform of Marijuana Laws, said in an email that allowing businesses access to financial institutions “will undoubtedly encourage other states to pass comparable [legalization] laws” by providing a framework in which the industry can operate legally and safely.

“Legitimate businesses simply want to function properly so they can pay their taxes, employees, and suppliers by having bank accounts. It’s absurd to expect any business to have to pay cash because banks are too frightened to give them an account,” he said. “Forcing these entrepreneurs to have so much cash on hand leaves them dangerously open to robbery, and paying taxes with a giant cash deposit is awkward and embarrassing.”

Earleywine noted that Colorado schools are receiving millions of dollars thanks to the state’s taxed and regulated marijuana market, and law enforcement officers can “devote their time to serious crimes instead of petty cannabis busts.”

In 2010 the Denver Police Department released an analysis of the rate at which pot shops were robbed, finding the 16.8 percent robbery rate was on par with that of pharmacies in the state. However, unlike pharmacies, dispensaries tend to keep a large amount of cash on hand due to their inability to access banking services.

“Since the legalization of both medical and recreational marijuana in Colorado, businesses across the state have lacked access to basic banking services,” Bennet said in a statement. “This has raised significant public safety concerns for both employees and customers of these businesses. It’s also created compliance and oversight challenges. This bill helps address those issues by allowing our banking system to serve these legal businesses like any others.”

The bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs which is chaired by Sen. Richard Shelby (R-AL). Shelby is firmly against marijuana legalization and in 1999 voted to increase the penalties for those convicted of drug-related crimes.

Photo Credit: Ron Cogswell

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New Mexico Appeals Court Rules Injured Employee’s MMJ Treatment Must Be Reimbursed

A New Mexico court of appeals has again upheld a workers compensation decision stating that an injured employee must be reimbursed for medical marijuana treatment by her employer.

In the third such ruling since May 2014, the court upheld a decision by a lower court to force American General Media to reimburse Sandra Lewis for the cost of her medical cannabis. Lewis sustained a back injury in December 1998 and suffers from chronic pain. She has been prescribed various medications since her injury, including oxycodone, Soma, Percocet, and was accepted into New Mexico’s medical marijuana program in 2010.

As other companies had done in the past, American General Media and its workers compensation administrator, Gallagher Bassett Services, tried to argue that paying for an employee’s marijuana would put them in violation of federal law.

In his written opinion for the case, Judge James Wechsler argued that “federal public policy was ambiguous in contrast with New Mexico’s clear public policy expressed in the [state] Compassionate Use Act.”

Weschler’s ruling is drawn from a 2013 U.S. Dept. of Justice memo stating that the federal government “would generally defer to state and local authorities” on issues of medical marijuana.

Source:

http://www.santafenewmexican.com/news/local_news/appeals-court-again-favors-medical-pot-patient-in-workers-comp/article_f4c453ad-4d91-5fdd-b7e7-4f5cead3336d.html

Photo Credit: Dank Depot

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Oregon Hemp Farming to Continue After Senate Blocks Moratorium Bill

The Oregon Senate put a stop to a bill Monday that would have suspended hemp growing operations in the state for two years.

The bill had passed the House by a vote of 53-6, and had strong support among marijuana producers, which worry that nearby hemp operations could result in cross-pollination. Hemp, which typically contains less than 0.3% THC, could bring down THC levels in marijuana plants, thereby making the resultant product less valuable.

Hemp advocates claimed that the bill would have spelled death for the industry. The bill would have required the revocation of all 13 hemp licenses currently in circulation, due to the state’s failure (in violation of Oregon Dept. of Agriculture rules) to get GPS-data on the location and size of proposed hemp farms. It would also have banned hemp farms within 1,000 feet of schools, which would have knocked out one hemp farm in the southern town of Murphy. The farm’s trade group, the Oregon Sungrown Growers Guild, lobbied for the legislation.

Cliff Thomason, who represents a group of investors in the Murphy farm, said the bill’s defeat “is a victory for hemp farmers.” He also noted that his investor’s group has vowed to grow male plants inside in order to keep pollen from getting onto nearby marijuana plants.

State Agriculture Director Katy Coba said that there remain “a lot of questions” about the state’s hemp program, and then new legislation is likely to come up in the 2016 session.

Sources:

http://www.oregonlive.com/mapes/index.ssf/2015/07/hemp_in_oregon_in_surprise_mov.html

http://mjbizdaily.com/hemp-cultivation-to-continue-in-oregon/

Photo Credit: Miran Rijavec

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Maryland Company Seeks Medical Cannabis Grow License Ahead of MMJ Program Schedule

Although Maryland has yet to put the final touches on its medical marijuana program, one local business has already bought some arable land to grow for the future program.

In the hopes of getting one of 15 licenses that will be awarded under the program, Vast Organic Farms bought 26 acres in Oldtown, on which it intends to combine indoor and outdoor growing operations, depending on the program’s final rules. A company spokesperson stated that VOF chose the site for its “size, security and privacy.”

Although applications for the licences won’t even be accepted until September, VOF isn’t the only company eager to get onboard with the state’s medical program. Several other companies have already contacted the Allegany County Commission with questions about the program.

Sources:

http://www.abc2news.com/news/state/medical-marijuana-grower-buys-land-in-maryland

http://mjbizdaily.com/hopeful-maryland-mmj-cultivator-purchases-26-acres-for-growing/

Photo Credit: Rupa panda

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Washington Marijuana Business Owners Defying Local Bans

In 2012, when Washington state voters legalized recreational cannabis, it was witnessed around the world as a landmark voter initiative. What followed was a long 19 months of rule making and lottery drawings to establish a regulated cannabis market. In July, 2014 the first legal marijuana sales began, but not every locality was open to the new law.

Between 2012-2014, one quarter of Washington towns and cities had adopted moratoriums on recreational marijuana businesses, according to the Huffington Post. The Washington Attorney General later issued an opinion stating the bans were permissible under state law, and more cities and counties have issued bans. The courts themselves have been inconsistent settling the legality of such bans. Despite these setbacks, some brave Washington business owners have decided to open their doors anyway.

The first of these ganjapreneurs to defy a local ban was Golden Dispensaries in Goldendale. The new shop opened shortly after receiving its license to operate from the Liquor and Cannabis Board on October 4, 2014. A defiant Richard Ellis alerted the city before he opened his doors. “Since we’ve opened we haven’t had any trouble except for a local church, and some of the city council.” The mayor has asked local police to leave the shop alone, Ellis says. After threatening a lawsuit, Golden Dispensaries was eventually issued a business license. They are still open today.

In Parkland — which falls under a moratorium in unincorporated Pierce County — the unique concept of an art gallery and a cannabis retail shop called The Gallery opened on March 1, 2015. Three days later the county quickly issued a notice for the shop to close. Owner Ted Weatherby refused, telling the Tacoma News Tribune he believes the notion is a “waste of taxpayer money and effort,” and that he hopes the county comes to their senses. The Gallery also remains open to this day.

The town of Clarkston issued its marijuana business ban in 2014. On Halloween that year, an attorney for Canna4Life — dressed as a Jedi — filed a lawsuit against the city and four city council members asking a judge to overturn the ban. The judge — potentially dressed as a Sith Lord — upheld the ban. Finding no relief from the courts, business owner Kelly Jackson opened the doors of Canna4Life on May 29, 2015. He was shut down a week later. Following the closure, a judge ruled in favor of the city, granting a temporary restraining order on the business. The city contends it is well within its rights to keep the shop closed. Their next hearing is on August 4th.

Dave’s Place opened on June 9th, 2015 in defiance of a ban in Sunnyside. Dave Rand’s shop was shut down the next day, due to the lack of a certificate of occupancy. The city manager Don Day told KIMA News, “There were some stipulations that needed to be met and those were never met so he doesn’t have any kind of a business license.” Dave has filed a lawsuit against the city to reopen his doors. He is currently upgrading the property in the hopes the city will grant him a business license when it is up to code.

On June 19, 2015 a cannabis retail shop opened in Yakima, ignoring a ban on recreational marijuana businesses within city limits. That same day a judge issued a show cause order, which prevented the city from closing the store. Jaime Campos told the Yakima Herald he is expressing his entrepreneurial spirit by opening his shop, Happy Time, where he previously ran a daycare with his wife. He wasn’t given long to express this spirit, however: on Monday, June 22, after “weighing their legal options,” the city took action and shut the shop down. Joe Caruso, the city Code Administration Manager, told the Yakima Herald that the order was not an injunction and that no legal barriers prevented the city from shutting down the shop. On June 26th, a judge sided with the city, and ordered the shop remain closed.

The latest recreational marijuana store to open despite a city ban is in Pasco, WA. The Lucky Leaf, owned by David Morgan, opened at the end of July. He was granted a license by the WA Liquor and Cannabis Board on July 9th, but first applied for a license in late 2013. Morgan tells the Tri-City Herald he is finally opening after the state passed a law which allows cities to share more in marijuana tax revenue. He cites this as the city’s reason for banning the shops in July 2014. He tells the Herald, “We’re hoping that they’ll change their zoning and grant us a license so we can help the city get their share of tax revenue.” It is reported the city plans to take action against the shop. However, to date the Lucky Leaf is still open with no news from the city about what action they will take.

Recent legislation aimed at reconciling issues with Washington’s marijuana marketplace could offer relief to these business owners. As part of the legislation, language was removed from the state’s marijuana laws to require that the question of marijuana bans be put to local voters, not local governments. For now, however, many recreational cannabis businesses are still unable to open across the state.

Photo Credit: Rachel Samanyi

Editor’s Note: This article was updated by the author on 8/6/2015.

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California Governor Signs MMJ Patient Organ Transplant Bill

California Governor Jerry Brown signed into law on Monday a bill that will protect medical marijuana patients from being denied organ transplants. The bill prohibits doctors and hospitals from denying such transplants because of a patient’s marijuana use, unless cannabis use is medically significant to the surgery.

AB 258, the Medical Cannabis Organ Transplant Act, was introduced by Assemblymember Marc Levine (D.-San Rafael) and sponsored by Americans for Safe Access (ASA).

The bill was written to address the routine denial of organ transplants to medical marijuana patients.

“AB 258’s passage is the result of ASA’s membership tirelessly work for over two years,” said Don Duncan, who heads ASA’s California branch. “Governor Brown deserves credit for protecting medical cannabis patients from this harmful discriminatory practice that has no bias in medical research.”

Sources:

http://fox40.com/2015/07/06/california-law-backs-organ-transplants-for-medical-marijuana-users/

http://www.thedailychronic.net/2015/44887/california-governor-signs-medical-cannabis-organ-transplant-bill/

Photo Credit: daveynin

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Denver Activists Campaigning to Allow Marijuana Consumption in Bars

Marijuana activists in Denver are gathering signatures for a ballot measure that would allow marijuana consumption in bars and other 21-and-over sites. Those working on the measure need to gather 5,000 signatures to get the measure on the November ballot.

The measure would allow bars and clubs to allow the consumption of marijuana in compliance with clean air standards–marijuana would have to be eaten in the form of an edible or smoked in designated smoking areas hidden from public view.

Current Colorado law does not specifically prohibit the consumption of marijuana in private over-21 clubs, though it is illegal in a public setting. The proposed measure would clarify the definition of such a club.

Supporters of the measure argue that current law makes it very difficult for tourists to legally consume marijuana purchased in the city.

Denver would not be the first city in Colorado to legalize the consumption of marijuana in bars: both Pueblo and Nederland have passed similar statutes.

Source:

http://www.wtrf.com/story/29481590/denver-campaign-would-allow-marijuana-use-in-bars

Photo Credit: w00kie

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Florida’s Largest County Partially Decriminalizes Marijuana Possession

Commissioners of Florida’s largest county voted on Tuesday to allow police officers to issue a civil fine instead of arresting someone caught with fewer than 20 grams of marijuana — the emphasis, unfortunately, is on the word allow.

The Miami-Dade County Commissioners voted 10-3 to allow officers to issue offenders a $100 fine instead of arresting them. Those unable to pay the fine will have the option of doing two days of community service.

Police would retain the option of arresting offenders. Supporters claim that such action would be reserved for those caught smoking in public or who appear to be selling the drug.

Commissioner Sally Heyman, who voted in favor of the ordinance, said that “We have better things to do with our police resources. For goodness’ sakes, we don’t have to destroy the lives of so many.”

Current Florida law makes possession of small amounts of marijuana punishable by a misdemeanor with up to a year in prison and fine of up to $1,000.

Source:

http://www.thedailychronic.net/2015/44768/florida-miami-dade-county-decriminalizes-marijuana-possession/

Photo Credit: Matthew Hurst

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Setting Up the Framework: Alaska’s New Marijuana Control Board

As of February 2015, recreational marijuana is legal in Alaska. Just over half of voters voted in favor of Ballot Measure 2, which made it legal to cultivate and possess small amounts of marijuana in Alaska. Adults age 21 and over may possess up to one ounce of marijuana and have up to six plants in their homes. But before aspiring retailers can set up shop and start selling in Alaska, the state needs to develop a regulatory framework for its sale and consumption.

Enter the Marijuana Control Board, the five-member board that will create this regulatory framework and manage its future development and enforcement.

Who’s on the Board?

Five volunteer members serve on the Board, each representing a different interest group.

Loren Jones represents public health interests in Alaska. As the former director for the Alaska Divisions of Alcoholism and Drug Abuse, Jones will advise the Board in regard to mental health and substance abuse concerns.

Peter Mlynarik‘s area of expertise is public safety. As the current police chief for the city of Soldotna and a twenty year veteran Alaska State Trooper, Mlynarik understands the potential public safety issues that can arise with the new cannabis industry in Alaska.

Representing rural Alaska and its residents’ needs and concerns is Mark Springer, a member of Bethel City Coucil and the Alaska Municipal League.

The final two seats are taken by representatives of the cannabis industry. This is not set in stone – future iterations of the Marijuana Control Board may include a member of the general public in one of these seats. Currently, they are held by Bruce Schulte and Brandon Emmett, both of the Coalition for Responsible Cannabis Legislation. Emmett is the executive director for the Coalition for Responsible Cannabis Legislation and Schulte has contributed significant input to legislative decisions about marijuana-related bills in the past.

Together, these individuals will work to develop state-wide rules and regulations for Alaska’s burgeoning cannabis industry that meet citizens’ needs.

What Does the Board Do?

Like the Alcoholic Beverage Control Board, under which it will operate and share staff and resources, the Marijuana Control Board is tasked with developing and enforcing the state’s laws for marijuana sales and use.

In its first meeting in early July, the members of the Board determined that Alaska’s current marijuana laws need both updates and clarification. For example, the Board decided that the law must be clearer about what constitutes a personal cultivation operation from an illegal one. It also determined that the language in Alaska’s marijuana law must be amended to give villages the right to opt out of commercial marijuana sales, a right that other types of municipalities currently have.

These issues need to be worked out before the Marijuana Control Board may begin issuing licenses for aspiring retailers to sell recreational marijuana. Under the current timeline, the Board plans to begin issuing these licenses in May 2016. Until then, selling or purchasing marijuana without a license remains a criminal offense.

Photo Credit: Mario Antonio Pena Zapatería

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Washington Collects $70 Million in Taxes During First Year of Legal Marijuana Sales

Since Washington launched its recreational marijuana market a year ago, some 160 pot shops have opened up across the state, sales have grown to more than $1.4 million a day, and the state has raked in more than $70 million in tax revenue, beating out its own forecasts.

Despite this, retailers, processors and growers have complained since the beginning of excessive federal and state tax burdens. James Lathrop, the owner of Seattle’s first pot shop, says that “I’m basically doing this for free. Nobody’s gone out of business, but I’m not driving a new truck either.”

Life might be about to get easier for those in the industry, though, as two new laws go into effect this month. One regulates and taxes medical marijuana, and another changes the current three-tier excise tax to one 37 percent tax.

The law states that the new tax is the responsibility of the customer, rather than the retailer, which means that stores won’t have to file such earnings as income on tax returns.

Of course, as Oregon’s own retail industry kicks off, retailers near Washington’s southern border may have to worry about losing customers to Portland stores. Rick Garza, director of Washington’s Liquor Control Board, says such concerns aren’t new: “This isn’t the first time people have gone to Oregon to buy something either because it’s cheaper or because they don’t apply sales tax,” he said. “We saw it for liquor, we see it for tobacco.”

Source:

http://www.syracuse.com/us-news/index.ssf/2015/07/after_a_year_legal_marijuana_earns_70_million_in_new_taxes_for_washington.html

Photo Credit: David Herrera

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Massachusetts Medical Marijuana Industry Attracts New Wave of Entrepreneurs

Massachusetts’ first medical cannabis dispensary opened last week in Salem, and now more than 50 dispensary license applications have been submitted to state regulators by companies eager to claim their own space in the nascent industry.

Massachusetts began its ill-fated licensing process two years ago, but a variety of complications — from political favoritism, to executives with controversial pasts, to the discovery of questionable financial practices of several involved companies — resulted in more than two dozen lawsuits. Ultimately, 15 dispensary licenses were issued, but the program’s roll-out was delayed until last week.

Now, the state is accepting more applications, and some cannabis entrepreneurs — many of whom lost thousands of dollars vying for one of the original licenses — are scrambling at the opportunity.

The licensing process has been revamped under Governor Charlie Baker. Now, instead of pitting applications against each other using an arbitrary scoring method to determine winners, each application is to be judged for its own merits. Applications will be considered in the order they are received.

Sources:

https://www.bostonglobe.com/metro/2015/06/30/more-than-applications-filed-for-new-batch-medical-marijuana-licenses/

Photo Credit: Werner Kunz

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New Recreational Marijuana Reform Bill Takes Effect in Washington

Washington state — often criticized for having the weakest of the legalized states’ recreational marijuana laws — is making major adjustments to the state’s retail cannabis industry.

Governor Jay Inslee signed House Bill 2136 this week, which eliminates the current three-tier tax structure from I-502 and replaces it with a flat 37 percent excise tax made at the point of sale.

Additionally, the new law places limitations on who gets access to the state’s marijuana tax revenue: specifically, localities that have chosen not to allow marijuana businesses will not be eligible for any tax dollars from the industry. The bill also relaxes certain zoning issues regarding where retail stores and grow operations are allowed to operate.

Washington voters legalized recreational cannabis in 2012 via Initiative 502, and the first cannabis retailers opened almost exactly one year ago.

Meanwhile, earlier this year, state lawmakers passed another sweeping reform bill that folded Washington’s widely unregulated medical marijuana industry into the I-502 recreational market.

Sources:

http://q13fox.com/2015/06/30/gov-inslee-signs-recreational-marijuana-reform-bill-into-law/

http://www.thecannabist.co/2015/07/01/washington-state-pot-law-overhaul-marijuana-tax-reset-at-37-percent/37238/

Photo Credit: Will

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Cannabis World Congress & Business Exposition in New York Succeeds on All Levels

Leading East Coast Trade Show for Legalized and Medical Marijuana Attracts Venture Capitalists, Entrepreneurs and Major Media to Event at the Javits Center

The Cannabis World Congress & Business Exposition (CWCBExpo) attracted more than 2,500 business professionals and garnered major media attention at its recently concluded 2nd Annual event June 17-19, 2015 at the Javits Center in New York.  The leading event for the legalized and medical marijuana industry, sponsored by the International Cannabis Association, was 3-days of non-stop business building, education, networking and serious media coverage that included CBS News, CNBC, Forbes,  NBC, New York Times, Getty Images, TheStreet.com, WNYC, The Sydney Morning Herald, and  200 media members in attendance.

“Exhibiting at the Cannabis World Congress in New York has been a solid investment in time and energy for us.  As a design-manufacturer of plant growth rooms for cannabis, we had been seeking an event like this on the East Coast to amplify our message about the value of turnkey controlled environments as an alternative to traditional methods of building a commercial facility.  We’ve had significant conversations and expect follow-up with several exciting companies,” said Michael Robbie, Director, Marketing, CONVIRON.

Attendees from CWCBExpo came from all over the country with international attendees from Canada, Puerto Rico, Europe, Israel and other parts of the world.   The majority of the attendees came from the tristate area and the Eastern seaboard–from Maine to Florida.  All business segments were represented including entrepreneurs, venture capitalists, agricultural experts, medical professionals, consultants and service providers including lawyers, realtors and accountants.

CWCBExpo in NY opened with a heavily attended workshop on “Cannabis Careers” and two six-hour pre-certification classes on “How to Open a Cannabis Business;” and a “Doctor & Health Care Providers Conference on Medical Marijuana.”

A rousing Keynote Address from Ethan Nadelmann, of the Drug Policy Alliance, inspired attendees about the need for drug reform and a safe and responsible marijuana industry.   The first ever cannabis investment conference was conducted by Viridian Capital Advisors, entitled:  “Investing in the Emerging Cannabis Industry While Managing Risks.”  The educational agenda also included 40 sessions on June 18-19, which received high marks from conference attendees.

The bustling exhibitor floor featured a diverse range of innovative products and services needed to succeed in the cannabis business including greenhouses from GrowCo, cannabis oil extraction hardware, machinery; marijuana vaporizer designers, bud-friendly fertilizers, money management kiosks, indoor growing equipment, air-tight jars, packaging, and vacuum sealers.  Cannabis-centric businesses were also showcased including inventory software, diagnostic tools, lab testing, and industry associations and publications.

“Savvy entrepreneurs, service providers, investors and the media, from across the country and around the world attended CWCBExpo in New York to find out how to succeed in the cannabis industry and they were not disappointed.  Attendees and exhibitors are already buzzing about Los Angeles and we are looking forward to another great event, September 16-18 at the LA Convention Center,“ said Dan Humiston, President, International Cannabis Association.

The 3rd Annual CWCBExpo in New York will return to the Javits Center, June 15-17, in 2016, with strong re-bookings for exhibit space.  For more information on sponsoring or exhibiting at CWCBExpo events in Los Angeles and New York visit www.cwcbexpo.com or contact Christine Ianuzzi, at email: cianuzzi@leexpos.com and phone: 201-881-1602.

 

About International Cannabis Association

The International Cannabis Association (ICA) provides the resources necessary for professionals to succeed in the cannabis industry. Whether considering starting a cannabis business, taking an existing cannabis business to the next level or expanding service to support the cannabis industry, the ICA is here to help.  By offering educational conferences and networking events, the International Cannabis Association brings together experts from across the cannabis industry as well as individuals simply interested in getting started.  As the cannabis industry’s business-to-business association, the ICA is the professional’s source for timely, entrepreneurial and high-quality information.  For more information visit www.internationalcannabisassociation.com

About Cannabis World Congress & Business Expositions (CWCBExpo)

The Cannabis World Congress & Business Expositions (CWCBExpo) are produced by Leading Edge Expositions in partnership with the International Cannabis Association (ICA).   The events are the leading professional forums for dispensary owners, growers, suppliers, investors, medical professionals, government regulators, legal counsel, and entrepreneurs looking to achieve business success and identify new areas of growth in this dynamic industry.  In 2015, CWCBExpo took place June 17-19, at the Javits Convention Center in New York, and the CWCBExpo Fall will be held September 16-18, at the Los Angeles Convention Center in Los Angeles, CA.  To learn more about the CWCBExpos go to www.cwcbexpo.com.  Connect on Twitter/CWCBExpo and Facebook/CWCBExpo.

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Free Weed Offered in Portland to Celebrate Legalization Day

There’s a new party standard in freshly-legalized Oregon: it’s not a real celebration unless there’s free weed involved.

Last night, Portland marijuana enthusiasts flocked to the Burnside Bridge, where a collection of revelers gathered to await the stroke of midnight, which marked the end of marijuana prohibition in Oregon.

As per Measure 91, the successful legalization initiative passed by Oregon voters in 2014, the growing and possession of marijuana is now legal in Oregon for adults who are at least 21 years old. The new law also allows individuals to gift small amounts of cannabis (as well as seeds and/or plants) to other appropriately-aged individuals — this technicality was the basis for last night’s event.

Dubbed the ‘Burnside Burn,’ the festivities were organized by journalist and marijuana activist Russ Belville and the Portland NORML chapter. The event was both a celebration of legalization and an outlet for enthusiasts to safely score some pot for Legalization Day — even though cannabis is now legal, there is not yet a legal method of purchasing it for recreational use.

Under the new law, adults may now possess up to an ounce of weed on their person (up to eight ounces at home), and may cultivate up to four cannabis plants per household. An interim marketplace will likely be established in October, which will allow medical dispensaries to serve the state’s demand for recreational cannabis until the fall of 2016, when state-licensed retail stores are expected to open.

Sources:

http://www.oregonlive.com/marijuana/index.ssf/2015/07/legal_marijuana_in_oregon.html#incart_maj-story-1

http://www.oregonlive.com/marijuana/index.ssf/2015/06/qa_everything_you_need_to_know.html

http://www.washingtonpost.com/news/morning-mix/wp/2015/07/01/oregon-celebrates-with-free-weed-as-recreational-marijuana-becomes-legal/

Photo Credit: Cannabis Copywriting

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Michelle Sexton

Michelle Sexton: Understanding Cannabis Testing Inconsistencies

PhytalabWhen it is fully legalized, cannabis will be regulated just like any other consumable product. Scientific testing to determine potency and safety will be mandated, as it is in Washington and Colorado. However, producers in these states have frequently complained about inconsistent results when they have submitted samples from the same lot to different labs. This has caused many to question the validity of mandated testing, the individual laboratories, and the science of cannabis testing itself.

In our latest podcast, Shango Los speaks with Dr. Michelle Sexton of Phytalab, a prominent cannabis testing lab in Washington State, about how the Schedule 1 status of cannabis has hindered the necessary scientific research that goes into forming the foundational understanding that is established regarding other plants in the market. This has led to the adoption of different standards by different labs, which–along with many other factors–has contributed to the significant variance in testing results that cannabis producers in regulated markets have witnessed.

“…There’s a difference between certification and proficiency. That’s the bottom line.”

Dr. Sexton is a naturopathic doctor, an editor and advisor on the American Herbal Pharmacopoeia Cannabis Monograph, and was a consultant in the development of Washington State Initiative 502, which formed the legal recreational market in the state. In the interview, she also discusses her stance on cannabis use during pregnancy, a topic which she has written about for Ladybud Magazine.

Listen to the podcast or read the full transcript below!

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


Listen to the Podcast:


Read the Transcript:

Shango: Welcome to the Ganjapreneur.com podcast. My name is Shango Los and I will be your host today. Dr. Michelle Sexton is a naturopathic doctor, herbalist, and formerly a midwife, currently in private practice in San Diego. She began her formal study of phytochemicals with a degree in horticulture and specialized in the phytochemical analysis of botanical medicines. She completed a three-year NIH funded, post-doctoral fellowship at the University of Washington where she conducted a clinical study examining the effects of cannabis in patients with multiple sclerosis. She owns and is chief science officer of Phytalab Cannabis Analytics in Washington State. She also served as editor and advisor on the American Herbal Pharmacopoeia Cannabis Monograph. She has been a consultant to the Washington State Liquor Control Board on the implementation of I-502. She is also a member of the International Cannabinoid Research Society, the International Association for Cannabinoid Medicines and the Society of Cannabis Clinicians. Dr. Sexton is executive medical research director at the Center for the Study of Cannabis and Social Policy. She’s also an avid surfer, rock climber, and loves to play with her grandchildren. Welcome back, Dr. Sexton.

Michelle: Thank you.

Shango: Thanks again for being with us. We enjoyed our print interview with you so much that we wanted to take another opportunity to talk and delve more deeply into cannabis testing in this podcast. Towards the end we will also discuss your recent article on cannabis and pregnancy, but let’s start with cannabis testing first. As the medical and recreational markets evolved in several states, producers are experiencing frustration with their lab testing results. They’ve had the experience of sending what they believe to be similar samples to different labs and they receive significantly different lab results. This is leaving many producers thinking that the science of cannabis testing is questionable. Would you speak to that topic and share what you have been seeing happening and what you find might be the cause for this disconnect?

Michelle: I think everyone has been observing and there’s been reports across states of variability in potency results, particularly on cannabis products whether it’s flower or another derived product. Since this is science, there seems to be a perception that it should be infallible, I think. When you’ve look at where this industry has evolved from, I think it’s pretty self-explanatory that the typical standards that are put in place for an industry happens at a level that’s way upstream from the consumer receiving a result. The Schedule 1 status of cannabis has prevented the normal channels who get involve in this type of proficiency work and standardization from doing so.

Shango: Meaning that the way that the individual states are making their law, they’re more based on ideals than what can actually happen in reality?

Michelle: Yes.

Shango: In what ways? Where do you see the disconnect to be then versus when you are involved with Washington State developing their certification and we got a lot of certified labs which leads those of us who are producers to think, “If they’re all certified, they should all give me the same results.” Why isn’t that happening?

Michelle: Because there’s a difference between certification and proficiency. That’s the bottom line. Certification means you’ve met a lot of general standard laboratory practice on paper, how business is conducted in the laboratory everyday is a lot of what the certification checklist was. As far as anyone checking up on the proficiency of the work that is done within the context of that lab, it’s a different topic all together. That proficiency, can’t occur like I said because all of these upstream things haven’t been addressed to start with.

Shango: You’re saying that the certification with the state is more a stop gap to make sure that the bureaucratic nature of the lab is accurate but not so much on the skill set of the scientist doing the work?

Michelle: Maybe in some cases the skill set of the scientist but not necessarily. I think many of the labs who started out with non-scientist have now brought scientist on board. It’s the body of knowledge that we as scientists typically look to that is not there.

Shango: Because the appropriate work hasn’t been done on cannabis yet?

Michelle: Right. For instance, when we published the cannabis monograph, the first part of it, which Washington State adopted, Roy Upton, the executive director, when he publishes a monograph, the section on the chemical analysis of the plan whatever method he publishes has gone through a process called, “Validation,” being validated in a laboratory setting. There’s about eight steps or so involved in validating a methodology. This is done by some professional organizations who do this on a large scale, but because of the schedule on status, they were unwilling to participate in the validation methodology, in doing the validation of the method for the monograph.

Shango: So in a lot of ways, the labs have not been given the tools they need to do their job correctly because on the federal level cannabis is still schedule one, so the needed scientific background to do the testing hasn’t even been completed yet?

Michelle: Correct. If he goes to prior to that, what we use to quantify for instance cannabinoids or any other phytochemical are called, “Reference Standards.” The reference standards that are available for doing this work are still in question as to the purity of them. While we may be told of this is 98% THC, there is a certifying body that would say, “Yes, this is 98% THC,” but they’ve been unwilling to get involved because it’s a schedule one substance.

Shango: This kinda gives credence to the producer’s concerns that the science behind it is in some way faulty, because it may not be the science itself but the base research that needs to take place so that cannabis testing as a whole can be done accurately that hasn’t been done yet. It makes sense that labs are having a difficult time getting consistent results.

Michelle: If you just took the reference standard, say five labs bought their reference standards from five different companies, but if I bought all five of those in random side by side, I might actually see a different quantity even though they should be the same quantity. If I measured X number of milligrams of THC, from each of those five vials from different companies, what I might actually see on my instrument could be really different.

Shango: Other industries that are more evolved than the cannabis industry, are there standards already consistent because they’ve done all that homework and so you wouldn’t have the inconsistency between different companies you bought from– so that’s unique for cannabis right now?

Michelle: Correct. First of all, you have to have a method that’s been validated and typically the way this is done, it’s very rigorous and it’s costly and takes a lot of time, because a method is developed and it gets sent out to 10 or 15 laboratories who all use that exact same method and may make sure that everybody using that method can get the same answer.
They’re also using the same reference set of standards that have been certified. If you were doing that, we should all get the same answer. Everybody’s using different methodologies. None of them have been validated by one of the large bodies who does this work professionally. Those are two upstream problems.

Shango: No wonder everyone is frustrated then, if it sounds like the testing is doomed from the beginning?

Michelle: I don’t think it’s doomed. I think it fits perfectly with all of the citizen science and the citizen medicine around cannabis. This is just the result in the culture of it having been black market. Black market practices have emerged all across this industry whether it’s helping or dosing or telling patients how to use it from a perspective of citizen medicine or if it’s people trying to figure out processes, how to do extractions, on and on, everybody’s had to do this on their own because there hasn’t been a lot of professional industry or research to guide it.

Shango: I know it’s hard to breakout a crystal ball and give me a future answer, but in your experience, you’ve been doing this a long time, how long do you think it might be before that background research takes place to create a standard so that all of the labs can be giving more consistent results, it doesn’t have to wait until cannabis is unscheduled so that that research can get done or is it just the free market forces are doing that homework now so they can bring those standards to market sometime soon?

Michelle: Everybody’s interested. I can tell you everybody’s interested. The United States Pharmacopoeia, they’re very interested. They publish methods. The AOCS, the American Organization of Analytical Chemists, AOAC. The American Oil Chemists Society, they’re all interested and they’re all looking into it and they want to hear about it and they’re asking people to tell them about it and they’re forming groups to talk about it. The fact remains that as long as it stays on schedule one, that many of them have their hands tied or they won’t get involved in doing their professional work on that topic.

Shango: I understand. For some of our non-scientist listeners, would you explain a little bit about what the monograph is and what it means?

Michelle: The term itself means a single topic. How herbal medicines and even now pharmaceutical medicines are well-defined it’s in a document called, “The monograph.” That monograph has one topic. For herbs, we for a long time in the pharmacopoeia, there’s been a general outline that you follow when you run a monograph. With herbs, it started as if you’re going to go collect them in the wild, how do you positively identify them growing in the wild? There’s often plans that can easily be confused and one may be poisonous and the other not. As a field herbalist, you could get that basic information and then you could go on and it describes all of the botany. If it came down to comparing to plants and getting the non-toxic or the toxic one, you could go to more specifics on how the flower looks or leaf, that type of thing. Then it goes on to describe how it’s been used historically, how people have figured out that these plants have medical value and what kinds of things is in the written record that it has been used for. Then in the modern monograph with the chemical revolution, now we’ve gone onto describe, if you want to look at particular active constituents, how do you do that and that’s the analytical portion. Then the monograph also covers things on cultivation, pests, managing pests, soil type, just real basic information about growing, gathering, and using the herb.

Shango: In a lot of ways that sounds like it would be the go-to document for anybody who cares about cannabis. So many people do internet research to find out what they need about cannabis and as we all know with internet research, your mileage may vary, right? It sounds like the monograph would have the best science available today, almost like a mini-encyclopedia on this one flower.

Michelle: Correct. In the writing of the document, Roy, he finds the experts in the world in the field on all those topics, so really it should be the most current up to date information that’s available, all compiled in one document.

Shango: When did the last one come out?

Michelle: We published it originally in 2012 and there was an update. That’s the one with the Washington State with the control board adopted to guide the quality control of the cannabis in adult market. Typically it all comes out in one big book and the second part of that book after the quality control is the therapeutic compendium, because we wanted to push the quality control and out to be used in Washington State, we separated them into two documents so the therapeutic compendium is on its last legs of review and hopefully about the first of the summer, there’s going to be the most up to date review of clinical literature, the use of the whole plants across many conditions.

Shango: If somebody wanted to find out more about this monograph, what would be the appropriate search term?

Michelle: I would just search, “American Herbal Pharmacopoeia: Cannabis.”

Shango: Going back to the ideas of producers and they’re trying to find a lab that’ll give them consistent results, one of the things that we’ve been finding is that producers are shopping around for a lab that tends to give them the results that they want more than necessarily what may be accurate results. What do you see as the downsides of shopping around for a lab that just gives you the results that you’re looking for, for example a high THC potency or something?

Michelle: Karma. That’s the easy answer. I think there may come a time that it may not be too far off where there will be auditors going into these labs. We’ve been needing in Washington State and in conversation with the look of control board about the problems that we’re seeing in the labs and that they’re aware of it. They know it’s a problem. What we’ve done is a starting place and there are many of us working to continue to professionalize and change that, that eventually if you’re using a lab that is using what I call maybe still black market science practices. They may close. I don’t think you’re doing your product a service if you’re just shopping for the answer you need or want to get paid or get your product to market. We really hope that over time, the hype over THC will subside and that the beautiful diversity of the plant, other cannabinoids, the terpenoid profile, you don’t go in a one store and say, “Okay, where is the one with the 13% alcohol?” Your IPA. It’s about all of it, all of the how much sweetness is there and how much bitterness is there or what other flavors you like or the smell you like of it. I think the hype will die down. I think that proficiency will come.

Shango: I can see how here in Washington the environment is evolving from people just relying on THC to now talking about terpene profiles and let the terpenes, the human powers and that themselves, it sounds like as the industry matures, we’ll get past our reliance on THC.

Michelle: I think it’s going to be hard. I have only been in one recreational store in Washington State and not been in a couple of dispensaries. The one recreational store that I went in, everything was on their glass. Somebody told me they were allowed to smell a product in that same store. I don’t know if you asked if you get to, but it was very different from the dispensary experience where you could open a jar and really waft that aroma because we have a survey that’s in process of being published on cannabis use. And smell is the number one way people say they select their cannabis. People are actually doing it also based on potency but smell is the number one thing that people said was the most common factor for choosing one.

Shango: Going back to your wine example, there’s some humor on that because if we are selecting our cannabis based on our reaction to the smells, which in a certain way we can think of as our body is choosing the cannabis medicine that we want, but on the flip side, when you are shopping for wine, you don’t usually get to sample or smell it and so maybe just choose based on label, right?

Michelle: Exactly. I’m guilty.

Shango: So, what advice would you give for producers if we started with this idea that a lot of the background science that the testing is based on hasn’t been done yet, and that there is inconsistency from lab to lab… you know, the frustrations of the producers are they’re trying to do research and development on a product and they’re getting different results which makes it very hard to develop a product. What kind of advice would you give them for finding a lab that will work for them when they don’t have a science background to necessarily interrogate them on their science standards? What advice would you give to a producer to help them until the proper science has been done?

Michelle: There’s the American Herbal Products Association has a document on selecting an analytical laboratory. I think it’s really applicable that you read through and you ask some appropriate questions that are some baseline proficiency work. For instance, I’ve had the experience of asking a laboratory, “How often do you run a standard curve,” and just was greeted with blank stares. They didn’t even know what a standard curve was. Finally somebody said, “I think that maybe one who was run three months ago.” To not know what that is if you’re working in the laboratory setting and to only run it once a year, that’s not adequate. You want a lab who can answer that question like that and they run them on a regular basis, maybe even everyday.

Shango: Even though probably most of the producers don’t have science backgrounds, if they armed themselves with that document, they’d at least have questions to be able to gauge the response. If you get a blank stare that’s probably not a great response, but if the lab gives a full response that sounds accurate, even without a science background, the producer would have a probably a better gut feeling about what the lab’s level of competence is.

Michelle: I think there’s plenty of information out there. Like I said, even just that document to get someone enough information to initiate a conversation on some very important points.

Shango: When preparing samples for a lab, I’ve heard lots of different producers have their strategies. Some like to take the cola to the lab so that they hopefully get the highest potency response. Some say that if you prepare in oil, you should do this and that. In a certain way, trying to game the system, but in the end, that’s not going to win for them because while that might give them a good result to sell their product, if they’re doing research and development in developing a product, they’re skewing their own results. I’ve heard you speak on this before. Can you break down very specifically how you recommend a producer prepare their sample for the lab so that the producer can get the most representative answer possible?

Michelle: This isn’t my knowledge, this is standard for herbal products, whether it’s in Europe or United States or China, there are plenty of sampling plants out there. You have to take an entire lot or I would say a harvest of all one plant variety that was in the same section of the greenhouse or room or field and you put that all together as a batch and it gets mixed and you quarter it several times until you’re down to a smaller size. Then you take a random scoop of it. That is a representative sample. Then you have to also consider what is the size of that batch and what’s the final sample size, how big does that need to be to be representative of that whole starting lot size. This was a real failure in the Washington system that they didn’t implement sampling plans.

Shango: The way that you’re describing it, we wouldn’t have a situation where a producer is looking at a lot of cannabis and I’ll take this bud and this bud and send that on in. What you’re saying is that’s not the way to do it at all. It’s laid all on the table and quartering, quarter it and take a random scoops. If I was a producer, I’m not actually choosing my sample at all. It’s randomness that’s choosing it.

Michelle: Right. Yeah, you have to look at the size for instance for the I-502 package, the state says up to 7 grams, we could ask for more. The monograph actually says 10 grams so the monograph wasn’t actually followed here, but for a 5-pound  lot size, 10 grams is barely adequate as a represented sample. For instance, some labs are now gaming the system by typing a smaller sample size, but if you do the math, a 2 gram sample size to represent an entire 5 pound lot would only give you a one in 25,000 chance that you might sample something that’s contaminated with a mold or bacteria for instance. Whereas if you just seem to go up to a 5 gram sample, you significantly increase the chance that you’re going to sample something contaminated.

Shango: So in real terms, even though producers continually want to give a smaller sample because obviously the cannabis is money, really it would be in their best interest to give you a larger sample if they really want to find out what is the true nature of the flower that they’re working with.

Michelle: Yes, I think it’s a matter of integrity because now you’re thinking beyond just getting how much money you can get off of this crop. You’re thinking to public health effects and your end-consumer and you’re thinking about standardization in the botanical industry and aligning with that industry.

Shango: You are involved in Washington when they developed their lab certifications and you’ve seen how they’ve played out for the good and the bad. What suggestions would you offer other states who are moving towards normalization and setting up certifications for their own labs? What did we learn from the implementation here that states that follow Washington can learn from our wins and our losses and do better than we did?

Michelle: Well I think there’s data analysis yet that needs to be done like looking at all of these microbiological test that we’re performing here in Washington State and doing the data analysis — did we have enough positives to recommend that this is a test that always needs to be done, or for instance the microbiological limits. The monograph even states that these are not intended to be pass or fail numbers. They’re general guidelines and we have to take into account certain atmospheric conditions or weather that could precipitate more pattern and mildew and so then we might want to consider adjusting those levels upward, testing for the toxins that fungus make instead of the actual amount of mold on the plant material. I think we need to take a hard look at that some of that microbiological data. For the potency, I think a real disservice that’s being done is everybody reporting results like for THC to two decimal points. I think even if you’re not a scientist, it implies a degree of accuracy to you.

Shango: Which isn’t actually there?

Michelle: No, it’s not there. When we get those sorts of numbers, when we do research-based science, we’ve run at least a triplicate sample and usually in triplicate at least three or four times before you result, and there’s an error bar involved. You show the standard deviation that either side of that mean. The bigger your standard deviation, the greater the variation.
— I’m probably like, people don’t know what I’m talking about because I’m using my hands over here — I think my point is and I said this to the local control board and I think it’s in the checklist that it should be reported in a range, unless people can prove that they really have that degree of accuracy, but there’s nobody out there enforcing that degree of accuracy. Like you said, we have a lot. We did a small survey of some plant here and showed a 4% difference from top from the crown to the bottom of the plant in THC content. We could report it in a range that that should be good enough. If it’s 10 to 12%, we know that this is relatively high potency and it doesn’t have to be 10.63, because that’s really not what you’re getting as the consumer.

Shango: It gives a false sense of accuracy?

Michelle: Yes.

Shango: Let’s move on. You recently wrote an article for Ladybud Magazine explaining the relationship between cannabis and pregnancy and it was hugely popular and went viral and a lot of people were talking about it. I want to just hit on that while we’ve got you here today. We’ve already talked about how it’s been a challenge to study cannabis while it’s still a schedule one drug. Would you review for us the state of the science and what you read it to mean around whether or not pregnant mothers should be using cannabis?

Michelle: Because it’s been considered a drug of abuse and because just doing any research, in pregnancy it’s very difficult because now you’re exposing a developing fetus to a drug as well. It’s generally been viewed through the lens of looking at women who are drug abusers. You have to right-off-the-bat think, “Most of the data out there is being viewed through that lens.” Many of these women who were involved in the surveys or the studies may have also been using other prescription drugs. There hasn’t really been enough good studies of just cannabis use in pregnancy. There is some longitudinal data showing birth weight’s fine, head circumference is fine, there’s not poor outcomes. We know it’s not a teratogen, it doesn’t cause birth defects. When you see a beautiful baby at birth and your child develops normally in the first years of life, the conclusion logically is, “I smoked all during pregnancy and my child is just fine.”

I think what’s now coming out in the emerging research is we know more about that developing brain and how the cannabinoid receptor CB1 which is were THC binds is really involved in the migration of neurons on their pathways out to make connections. That was my point is I think it’s awesome that it’s not a teratogen and I think it can be valuable for women suffering from severe hyperemesis or getting very sick with morning sickness because we don’t have good or safe drugs. There’s maybe one drug on the market and it’s not always effective. Again, no drug is the best drug in pregnancies. I think all doctors should have that viewpoint honestly, and I would hope all parents would. Just being really thoughtful about it and being open-minded too. The other is a small amount of literature that says the things that I just said you’ll have a normal birth, you’ll have a normal child, the child would develop normally at early years, and how about those migratory pathways and brain development into adulthood.

Shango: From reading the original article that you wrote, you spoke a bit about how the child may be born not looking like there are any challenges, that some of the surveys suggest that as the child grows up and reaches adolescence that there may possibly be some neurological impacts, but the problem is that there’s no really good studies on that yet. If a pregnant mother was trying to weigh out for herself whether or not to have cannabis, not recreationally because you’ve already said that the best drug is not having a drug when you’re pregnant, so I will follow that. Let’s say that she is having very significant nausea and she doesn’t want to take the pharmaceuticals that would normally be given for that because that is just another drug. How would you suggest that she think through weighing, trying to get through the pregnancy with this extreme nausea versus an unstudied risk of having cannabis?

Michelle: I think there’s a lot of other alternative options. There’s acupuncture, there’s ginger. I was horribly ill with morning sickness, peppermint worked really well for me. I think there’s other options to try before going to a really strong drug like cannabis. Even then, if you go through everything and I think this is one case where I think you should have everything else fail, and then go to cannabis and then go to a CBD dominant variety because cannabidiol or CBD doesn’t bind like THC does to the CB1 receptor and it’s also been shown to be effective for nausea. That would be an alternative and to just use the lowest necessary dose for the shortest time period.

Shango: It sounds like when choosing the particular strain one would take just because it’s sold as a CBD, that probably wouldn’t be enough. For example a Harlequin which is two to one, you’ll still end up having a lot of THC in it, you want something more like an ACDC or something that tests 20 to 1, so the amount of actual THC in it is exceptionally low.

Michelle: That would be my speculation and probably my recommendation without having done a therapeutic trial on anyone. I don’t know. That’s just my best guess.

Shango: Sure, and again, here is something else that we don’t have the real science yet because it’s been schedule one for so long and scientist haven’t not been free to study the medicine.

Michelle: I think too the return of the biodiversity with the cannabidiol rich plants, we have no data on that. All of the studies have been on THC rich. Anything you find on cannabis is typically THC rich varieties. People need to keep that in mind. When we say cannabis now, we’re not necessarily talking about what has been out there and available. It’s changing. It’s evolving.

Shango: In the Ladybud article, you speak a lot about this one fascinating survey that happened with Jamaican Rastafarian women and over the course of the article, you debunked that survey as being reliable for science, but culturally, it’s fascinating. Would you just talk a little bit about this study and about the women and about how they are taking the cannabis? I think it would be exceptionally interesting to the audience.

Michelle: I’ll say I think you should interview the author because I’m not an expert on her work. I’ve reviewed it for the monograph and to write this article, but yeah that was what I … The first paper what I found interesting, and what people overlook or you don’t hear, is that largely the women were not smoking at that time and their place in the culture, that was mostly the men. I’m sure there were women who smoked but the women that she was hanging out with in this anthropologic study were primarily drinking tea. If you go [inaudible 00:35:48] published a paper on conversion of THC acid to THC NT, and there’s not a huge conversion. There is some conversion that it’s nowhere near the amount of conversion that would happen with smoking. Again, we don’t know a ton about THC acid. There are speculation that maybe it doesn’t get to the brain as easily as the neutral form, dealt in on THC without the acid. Maybe it acts more peripherally. Nobody’s looked at whether it crosses the placenta, if you have a baby growing. I think it’s something to keep in mind that largely at that time they were not smoking. They probably weren’t getting huge doses of the neutral cannabinoid THC.

Shango: Thank you for joining us today on the Ganjapreneur podcast, Michelle. Dr. Michelle Sexton is the executive medical research director of the Center for the Study of Cannabis and Social Policy. I am your host, Shango Los of the Vashon Island Marijuana Entrepreneurs Alliance. Thank you for listening to Ganjapreneur.

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Minnesota Medical Cannabis Market Launches

Minnesota has become the latest U.S. state to allow the legal distribution of medical cannabis as of July 1, 2015.

Under the restrictive program, patients will be able to obtain laboratory-tested medicines (in pill or liquid form, only), but only as treatment for a specific set of ailments. Last year, Minnesota lawmakers selected the following conditions: seizure disorders, severe muscle spasms, glaucoma, Crohn’s disease, HIV/AIDS, Tourette syndrome, Amyotrophic Lateral Sclerosis (ALS), and certain terminal illnesses and cancers.

The program has faced criticism from some advocates because it does not allow for consumption or possession of cannabis flower. In fact, only two companies are licensed to grow the plant — LeafLine Labs and Minnesota Medical Solutions — and their grow facilities enjoy state-of-the-art security systems, which Minnesota police have declared more than satisfactory.

As of Friday, there were only 65 patients registered with the state’s medical cannabis program, though 139 had begun the process. Meanwhile, 203 health providers are registered and ready to certify patients who qualify for the program.

Sources:

http://www.startribune.com/for-the-sickest-minnesotans-medical-marijuana-will-be-legal-on-wednesday/310345271/

http://www.twincities.com/localnews/ci_28388236/minnesotas-medical-marijuana-q

Photo Credit: Doug Kerr

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Vancouver Becomes First Canadian City to Regulate Cannabis Sales

Vancouver’s city council has passed a new set of rules to make it the first Canadian city to establish regulations and a licensing process for illegal marijuana businesses.

Despite a recent ruling from the Supreme Court of Canada that medical cannabis is legal in all forms, there remain strict federal laws banning the sale of marijuana from retail storefronts.

The Guardian reports:

“Under the new rules, dispensaries will be banned from operating within 300 metres of a school, community centre, or rival pot shop. They will also be obliged to pay a business license fee of $30,000, compared to a regular business license of just $250.”

The city council’s ruling in favor of allow marijuana businesses is not Vancouver’s first time at odds with federal drug laws: the Vancouver police have stated that a crackdown on the weed business is not a priority for the department. The council hosted public hearings on the subject before coming to a decision, during which more than 200 people spoke or sent in emails regarding the clash of local and federal drug laws.

Sources:

http://www.theguardian.com/world/2015/jun/24/vancouver-regulate-illegal-marijuana-stores-canada

Photo Credit: Maya-Anaïs Yataghène

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Photos and Adventures from the 2015 High Times NorCal Medical Cannabis Cup

The Bay area hosted this year’s NorCal High Times Medical Marijuana Cannabis Cup. Vendors with a wide range of vaporizers, buds, edibles, topicals and cannabis-themed artwork, as well as seminars and workshops from world-renowned experts gathered at the legendary Cow Palace for two-days of exuberant celebration of ganja.

I’d never been to a Cannabis Cup, but since I’ve been writing for Ganjapreneur, I figured it was a good chance to see what was happening at the heart of the culture.

There was a lot. Grapefruit, crème brulee, chocolate and mint-flavored vapes. Soil and seed sellers. Vape pen designers. Board games. And lots of happy people sampling the wares.

The High Times Cannabis Cup is a tradition that has been going strong for nearly 30 years now as a venue to celebrate all aspects of cannabis culture. The first Cannabis Cup was held in Amsterdam, and in 2013 High Times held the first Cannabis Cup in Denver. Now conventions are held regularly in states where recreational and/or medical marijuana has been legalized.

For a list of the 2015 NorCal High Times Medical Cannabis Cup Winners click here.

Photos:

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Today’s lessening stigma on marijuana use is due in large part to organizations that sponsor events like the Cannabis Cup and other forums for sharing and education.

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A lot has changed in recent years, and marijuana is being celebrated across the U.S. Part of its power comes from the ability to embrace cliches with a sense of humor.

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Gage Green Group celebrates ganja’s contribution to creativity and joy. This bud is from their recent harvest.

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Vaping was hot, but a lot of vendors were also focused on organics and the importance of growing healthy plants for the best quality product.

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The vendors at the NorCal Cannabis Cup were knowledgeable, friendly and generous with both samples and information.

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Dank Darts is an interactive game for pot smokers.

Photo Credit: docmonstereyes

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Denver County Fair Removes Cannabis Exhibits

The Denver County Fair — a wild celebration of the “creativity and personality of Denver” — will not feature any marijuana-related exhibits this year, the Associate Press reports.

Last year, the fair’s cannabis-focused ‘Pot Pavilion’ came under heavy scrutiny. While there was no actual cannabis on display last year, more than a dozen attendees filed lawsuits against a Denver dispensary for reportedly handing out cannabis-infused chocolates to the crowd.

According to the event organizer, however, that incident is not the reason for opting out this year. Rather, marijuana-related vendors reported poor sales last year. According to one Denver citizen, the drug has “become kind of old hat” under the new, legalized industry.

Sources:

http://www.9news.com/story/news/local/2015/06/24/denver-county-fair-pot-pavilion-marijuana/29224345/

Photo Credit: Daniel Spiess

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Oregon Lawmakers Considering an Interim Recreational Cannabis Marketplace

An Oregon legislative committee has unanimously approved a bill that would allow medical marijuana dispensaries to sell recreational cannabis as part of a temporary marketplace while state regulators work toward a more permanent solution. Supporters of this move argue that consumers should be granted a legal method of obtaining the drug once it becomes legal, otherwise the state may witness a dramatic spike in black market marijuana sales.

The law in question, Senate Bill 460, would limit early buyers to one-quarter ounce of dried buds per day. Seeds and clones would also be available for consumers who wish to make the jump to homegrown cannabis.

As per the Oregonian:

“To take effect, the legislation still must win approval from the full House and Senate and be signed into law by Gov. Kate Brown. The governor has not said publicly whether she supports early sales. OLCC officials strongly oppose the idea, saying the state should wait until the agency has strict controls in place to ensure that marijuana is stringently tested and comes from legal sources.”

Meanwhile, most industry advocates and dispensary owners fully support the early access legislation. Even state lawmakers seem likely to approve the bill: without SB 460, Oregon cannabis consumers will have to resort to the black market for their products until the permanent market comes online, which isn’t expected until late in 2016.

Sources:

http://www.oregonlive.com/mapes/index.ssf/2015/06/early_marijuana_sales_program.html

http://marijuanapolitics.com/oregon-cannabis-retailers-are-ready-to-roll-on-adult-use-sale/

Photo Credit: Dank Depot

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Massachusetts First MMJ Dispensary Opens for Business

Three years after Massachusetts voters overwhelmingly approved medical cannabis use, the state’s first dispensary has finally opened. After receiving a final approval from state regulators, Alternative Therapies Group made the following announcement on their website:

“ATG is the first Registered Marijuana Dispensary to receive a Final Certificate of Registration in the state of Massachusetts. Our Salem, MA dispensary is scheduled to begin serving registered patients Wednesday, June 24th – by appointment only. ATG intends to offer a safe and enjoyable experience for our patients.”

During the launch, the ATG will only be offering medical marijuana in its flower form. A company statement, however, confirms that efforts “to include more strains and MIPs [marijuana-infused products], such as tinctures, baked goods, topical creams, salves and vaporizer pens,” are underway.

The dispensary’s cannabis is grown entirely in an off-site location that is off-limits to the public.

Massachusetts voters approved medical marijuana treatment for several debilitative conditions — including cancer, HIV, multiple sclerosis and Parkinson’s disease — in 2012.

Meanwhile, two marijuana advocacy groups have separately announced they will put the question of full legalization to Massachusetts voters in 2016.

Sources:

http://www.wcvb.com/news/1st-medical-marijuana-dispensary-in-massachusetts-opening/33745928

http://bostinno.streetwise.co/2015/06/24/mass-medical-marijuana-dispensary-to-open-wed-june-24-alternative-therapies-group/

Photo Credit: Martijn

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Gov. John Hickenlooper signing a bill into law in 2013.

Colorado Governor Changes Tune On Cannabis Legalization

In the run-up to Colorado’s successful bid for cannabis legalization, nearly every politician in the state was a vocal critic of the measure, most notably the state’s Governor, John Hickenlooper, who expressed concerns about spikes in teenage use, intoxicated driving, and ruining the state’s reputation as one of the healthiest in the nation. A year and a half in, though, Hickenlooper has seemingly changed his tune.

“If you had asked me the day after the voters … changed our constitution to legalize marijuana, if you asked me if I had magic pixie dust and I could magically change that, I would have done it,” Hickenlooper said in an interview with CNN’s Cristina Alesci last month. “Now, I wouldn’t be quite so quick to go back. I’d say let’s give it another year or two and see if we can make a regulatory system that really keeps the bad guys out, keeps the pot away from kids, makes sure roads and highways are safe, and we have resources not just for regulation but to take care of the problems that get created along the way.”

While that might not sound like overwhelming praise, the Governor’s feelings about cannabis have evolved considerably from years past. During his time as Denver Mayor from 2003 to 2011, Hickenlooper was tormented by marijuana campaigns who passed local initiatives decriminalizing cannabis; many of them called the mayor a hypocrite for making his fortune as a brewpub owner, yet refused to discuss the legalization of marijuana.

“I hate Colorado having to be the experiment [for marijuana legalization],” he told the Durango Herald in a January 2014 interview. In the months leading up to his reelection last fall, Hickenlooper referred to the passage of A64 as a “reckless” move on the part of voters; and later spearheaded a bizarre campaign against teen pot use titled “Don’t Be A Lab Rat,” featuring enormously oversized animal cages with a dish and water bottle, placed strategically outside skateparks and schools. The idea was that too few studies have been done on marijuana, and so any teen who uses should consider himself an experiment.

Around that same time Hickenlooper conducted an hour-long interview with Katie Couric in Aspen, strictly on the issue of legalized marijuana in Colorado. Throughout the talk Hickenlooper repeatedly downplayed the financial benefit of taxed pot and refused to mention anything positive about the substance. When Couric referred to the state’s regulated framework as an overwhelming success, the governor responded “The word ‘overwhelming success’ is not something I’m going to apply to this because, you talk about branding, that’s the wrong… it could’ve been a lot worse.”

By January of this year, though, only one year after he expressed literal hatred for legal weed, Governor Hickenlooper had nearly done a full 180, being quoted in a 60 Minutes interview spouting rhetoric that mirrors campaign literature that the legalization movement has been putting out for years. “From time to time, people want to relax and help relieve the pressure of their day, in whatever form,” he said. “And they might choose to have a drink, or they might imbibe some marijuana. It will just be one of several choices of people trying to relax.”

Photo Credit: Mike Johnston

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Dominic Corva

Dominic Corva: Cannabis Policy & The Future of Humboldt County

CASP LogoThe cannabis legalization movement has gained serious momentum over the past three years,  and with Congress’s decision to restrict the DEA from interfering with state medical programs and the Obama Administration’s recent move opening the doors to medical marijuana research, it seems that the movement’s future is looking stronger each day. While it would be easy to speculate that these events are simply an inevitable fate brought on by the bad karma of prohibition, the reality is that all of this progress is due to the hard work of activists and experts who have dedicated their lives to cannabis policy reform.

In our latest podcast, Shango Los interviews Dr. Dominic Corva of the Cannabis and Social Policy Center (CASP) about the current state of international cannabis policy and what he believes the future holds in store for the industry. Dr. Corva is a political geographer and public policy scholar who has been a professor at Sarah Lawrence College and Humboldt State University. He has written extensively on both international drug policy in the Western Hemisphere as well as the political economy of cannabis agriculture in southern Humboldt County.

“The biggest misconception is that legalization means that everyone is more free to engage in cannabis commerce, when in fact, legalization clearly means that new lines are being drawn.”

In the interview, Dr. Corva explains how scholarly research and the tracking of data with mandated seed-to-sale tracking systems is helping us better understand the inner-workings of the industry, and he discusses how the legalization of cannabis in several US states has left the door open for other countries to follow suit. He also discusses the ways that Emerald Triangle growers in Humboldt County would be affected if California were to legalize cannabis for recreational purposes.

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NOTE: This transcript was auto-generated and may contain errors. 

Shango: Welcome to the Ganjapreneur.com Podcast. My name is Shango Los and I will be your host today. Doctor Dominic Corva is founder, and executive director of the Center for the Study of Cannabis and Social Policy. Doctor Corva is a political geographer, and a public policy scholar. He was most recently a visiting assistant professor in public policy at Sarah Lawrence College, and continues to be an affiliate researcher for the Humboldt Institute for Interdisciplinary Marijuana Research at Humboldt State University in Arcata, California. His work has been published in the International Journal of Drug Policy, Political Geography, the Annals of the Association of American Geographers, and ACME: A Journal of Radical Geography.
His dissertation research examined the political economy of international drug policy in the Western Hemisphere, and his postdoctoral research has focused on the political economy of cannabis agriculture in Southern Humboldt county. In his current role as executive director at CASP, he studies cannabis policy at the state, national, and international levels. The center conducts original, sociological, and quantitative research, and shares this research for the public good. The center also acts as an incubator of sorts, for new non-profit cannabis organizations, and education efforts. Welcome Doctor Corva.

Dr. Corva: Thanks Shango.

Shango: Doctor Corva, in many states there are now cannabis magazines with journalists writing about cannabis in culture. Your organization conducts research at many levels, and studies an array of important evolving issues, what do you see as the primary differences between what the Center for the Study of Cannabis and Social Policy does, verses what a cannabis magazine reporter does?

Dr. Corva: Well Shango, I would say that the main difference is context. We bring scholarly context to the information that we gather and disseminate, so that means a couple of things. One, is through the big picture. It’s one thing to know when’s the first million dollar sales day, and what that really means sort of in a bigger picture. We are interested in learning about things that are not yet news, is another good distinction, is that we’re not driven by the news cycle, but in some ways we drive the news cycle by creating information that people are able to see what’s going on. The other thing, of course, is we’re embedded in cannabis policy and markets, and journalists, often are, moonlighting. They ask a lot of great questions, they get a lot of answers, they report on it and they move on. This is, of course, what we’re doing for the long haul, so our information has to matter for the long haul, not just for the short term media cycle.

Shango: When you talk about your developing the information yourself, what is it that the Center does to generate this content? What exactly are you doing on a day to day basis?

Dr. Corva: We are an epicentral information node, which means that I talk to people all the time through a number of different ways. Some are simple like call them up, and ask them what’s going on, some are ongoing relationships, some which I regularly get together to exchange information about what’s going on in the processing market, for example, or what’s going on with inventory. I put everybody’s information they feed me together and I synthesize it. It’s a lot of primary data that is based upon an ethnographic approach where I talk to people quite often on a structural basis for each field of interest that is appropriate for cannabis markets and policy. Also we of course gather and synthesize primary data that is quantitative in nature, so for instance the information that’s publicly available, and also information we request from the liquor control board. It comes in Excel spreadsheets. We have to actually visualize that data and explain what it means to the public.
We take raw data, and process it, so that people can understand what’s going on. This applies also to information I get from my contacts in California and Oregon. I participate in civil society, is the other way I get information. The Oregon Sungrowers Guild, for example, had me in for their inaugural talk to them once Oregon passed this measure, the Sungrowers in Oregon were like, “What do we have to look out for?” They had me come in and give a talk about that, and they also consult with me … Have been consulting with me since then, to get feedback on steps to take, and so forth. I’m also participating in Washington state, in a number of civil society initiatives that are about establishing common ground, so Washington Cannabis Commission is an example. There’s an umbrella organization that doesn’t try to get everybody on the same agenda, but tries to get the parts of everybody’s agendas that are in common, to be working together.
Obviously the people that I meet in participating in those sessions all have individual industry interests, but they’re working out what’s different about them, and what are their commonalities, what’s their common ground. That’s definitely a good role for a non-profit information center to be playing.

Shango: As more states move toward normalization, and you’re able to share the successes and failures of Washington and Colorado, and the other places that you’ve studied, it almost sounds like that the newer states, who are having you coming to speak, you’re kind of distributing best practices in a lot of ways.

Dr. Corva: Yeah absolutely, I’m not inventing them, I’m hearing about them, hearing people debate them, watching what comes out of those debates, seeing how they’re resolved, and then how they’re corrected later. In a way the learning experience, the learning curve in Washington state is an experiment that people can learn from now, it’s process, instead of just it’s results. The results you can see in the news, they get reported on, but the process, how we get there, that’s the most important information for people in other states, because that’s what they’ve got to go through first. They can see outcomes, they can see outcomes they might want, or not want, but they have to understand what the process was in order to avoid, or replicate, outcomes.

Shango: Are you seeing that a lot of the new states that are moving towards normalization are reaching out, and they’re looking for mistakes and best practices from Washington? Or do you find that each state is more wanting to reinvent the wheel itself.

Dr. Corva: The former, the former for sure. When they’re learning from mistakes that means that they do have to reinvent the wheel in some ways. The tax policy that we follow in Washington state is not one other people want to follow, so what do they do? We don’t really have a model for that yet. Oregon’s rules are still being made, but the initiative passed with the idea that cannabis be taxed at the producer level, at $35 an ounce. California, is taking a proactive approach, their policy makers are ahead of time getting to know what the production system is like inside California, before they figure out what the tax situation should be. As opposed to Washington where the initiative was written, the production landscape was a total mystery, nobody understood that, but they made policy anyway, which is why we’ve had the problems.
California, of course, there’s so much more at stake, because it’s the national provider, essentially, of cannabis, the domestic producer. They really have to get it right from the get go, and I’m finding that those people are reaching out to learn from, and discuss, with the potential experts how to move forward. I brought Todd Arpley, a very respected CPA in Washington state, down to California to talk to the California Board of Equalization, so that an accountant could talk to them, not just a policy guy like me. I’m not an accountant, so there’s a limit to how much I can tell them about what they could do. What I could tell them was our mistakes, and then Todd could say here are the options, here’s the options that we’re considering now in Washington. Talk to the other tax people in California, to see how those might work with their particular system and rules.

Shango: It sounds like what CASP is doing is to connect people and move the intellectual capital around between these different locations to benefit smart cannabis reform.

Dr. Corva: Absolutely, it’s about, essentially, networking together all these folks who are trying in principle to do the same thing, but not sure really how to go about it. The thing is is that I don’t, necessarily, tell them what the right thing is to do, I link them up with the people who have the deep specialized knowledge, that otherwise they couldn’t find. They could have dug for a bit and found Todd, for example, but there was a shortcut, me. I’m organizing a flow of information that will inform policy making, because policy that succeeds is based on reality. If the reality is not understood, then we’re going to get bad policy.
We’re networking together, good information, in a way that allows, creates, space for good policy to be made, rather than claiming, like the authority, this is what’s happened, and this is what should happen, therefore you do this. That doesn’t work, this a field that’s brand new, it’s opening up. One thing I think is unique about what we provide is humility with the respect to the possible information. I’m deep into it enough to know that we’re scratching the surface. It’s going to take a lot of different heads together to really define that surface. No one person should be going around claiming the authority then that they know it all. We have a lot of humility with respect to the information that we have, and that means creating space for a collective understanding to be developed. It’s much more powerful than a private approach.

Shango: I know from following your blog that you’re in Colorado, and you’re back in Washington, and then you’re in Humboldt, and then you’re in Europe on some panel somewhere. Here in the United States, Humboldt County is pretty much the birthplace of American Cannabis. As normalization continues the heritage growers in the Emerald Triangle seem to be like they could be at risk of being squeezed out by corporate growers in California. In the time that you’re going back and forth, and move this intellectual capital back and forth, how do you see this playing out? What do you think the future holds for California’s heritage growers?

Dr. Corva: It’s a lot more promising because of what’s happened in the last year and a half in California in terms of organizing. The growers have historically been separate from reform efforts, that is they’re not participating in it, and when they do, it’s really has historically been out of sort of fear and reaction. It’s like, this could kill my business, therefore I don’t want it. In the last year and a half folks have gained a collective understanding that by participating in the process, they can secure a future for themselves. Standing apart from it, or being against it, is not going to help them. This is especially evident in California Cannabis Voice, new efforts by the Emerald Growers Associations, which is totally rebooted itself, from being a defensive trade association to a proactive, in Sacramento, talking to policy makers about why the producers should be at the table when you make your rules, and make your policy about cannabis legalization. They’re able to make those arguments, not just out self-interests, but to frame them as being in the general interest.
You have a production system already, if you make a different production system, what you’re creating is a potential for a lot of conflict. And actually it makes your life a lot harder, because you have to reinvent the whole new production system, look at Washington state, and how our production system is a new one. It didn’t really build bridges from the old one, so it’s a lot harder to get off the ground. From day 1 if you have people who are experienced, and already have practices, and are adapting them to a more professional landscape, then you have a more efficient system that works in terms of production, than one goes through these waves of dysfunction where you’ve got too few retailers, too much product in one season, the previous season, the opposite problem, not enough supply, too many retailers. It changes overnight.
While that shouldn’t have been a surprise to anybody that understands agriculture in general, but certainly cannabis agriculture, where the seasonality is understood, inventory is understood. Those don’t have to be reinvented in a new system, they have to be adapted to a new system, so it’s a robust one that’s not actually in competition with the old producers. It’s not in competition because the old producers are there, and they’re part of that system, and they’re helping create something that is positive for the state in general, society in general, rather than antagonizing it as the black market, or the medical market, or whatever else.

Shango: Do you find that any of the states are actually effectively doing this so far? I know we’re recording this in Washington state, which I’m most familiar with, and here pretty much if you had cannabis experience, you are actually on the outside of cannabis legalization.

Dr. Corva: Yeah.

Shango: Hopefully folks are learning from our mistakes, in that.

Dr. Corva: Absolutely.

Shango: Is anybody doing it the right way yet?

Dr. Corva: I think Oregon is definitely a really good example. Again, we’ll see what happens, they’re still in the middle of their process. The Growers Organizations knew ahead of time that they needed to be a part of that process, they need to have that input in there, so they hired a lobbyist before the rulemaking committee even started. The lobbyist has been in the room, which often that meant in other organizations in Oregon from the heritage tradition, so they’re able to be informed as to possible directions that could hurt them, and to actively attempt to coopt those efforts. They’re in the room basically, they’re helping make the rules, and I think it’s going to really help Oregon’s program be strong and endogenous.
Oregon has some unique problems too, you know Washington or California, but in general … I’m on an Oregon listserv, the DPFOR, which is the listserv about everything going on with legalization in Oregon, and every major organization is on that listserv. Since I got on it I have a whole column that is labelled forums in my Gmail account, it is 99% DPFOR posts. I get hundreds of them everyday. People are really involved and paying attention, and that means the processing … It looks messy if you look at my email list, it means it’s democratic, it means things are being worked at now, rather than needing to be reacted to later. And I think that shows great promise for how Oregon is going to work out.

Shango: It sounds like not only the citizenry are activated and participating, but there’s a higher chance that the Oregon legislators are actually having their ears open. In Washington, we hired outside consultants and it all kind of happened behind a curtain, and then it was dropped on everybody. Whereas the process you’re describing in Oregon as democratic, it sounds like it’s way more inclusive.

Dr. Corva: Definitely. The defining feature of BOTEC was that it was a group of outsiders. The Kleinman Group was a pro-group, and it had a lot of national names on it, and think tank names, and so forth, almost none of them had any knowledge whatsoever of actual Washington existing markets. The information they were able to provide the LCB was abstract, it wasn’t connected to what the realities and the stigmas of Washington state. That really is a huge deal, is that Oregon didn’t put out a national call for a consultant to come help them design their system, they recognized that they had people who knew what they were doing already in Oregon. Those are the people they needed to listen to design the system.

Shango: Do you see any positive feedback coming back to Washington from this process? Specifically we kind of botched it up to begin with, and then Oregon is watching what our lessons were, and are doing it in a more inclusive way. Do you a second wave in Washington opening up, or do you think that now that we’ve made this bed, and are a bit mired, we’re kind of stuck in it still?

Dr. Corva: We’re stuck in it. We’re definitely stuck in it. We’re getting worse in some respects because 2 years of struggling has meant that there are vested i502 interests, now, who were not part of the old landscape, who have a lot of money, and they are calling the shots in the legislature. The problem is we’re developing this elite cadre of cannabis professionals whose interest is in continuing to cut off the old guard, and making sure that they’re not competition. 5052 is a good example of that. There are elements of it that are helpful, and will bring in some of the old guard, then in particular the more professional dispensaries will be given a chance to participate in the system with medical endorsements.
We don’t know who’s qualified to determine whether someone should be endorsed medically or not. The actual ability to do so outstrips the mandate to do it. There’s time to work on it, and the best thing is that we managed to avoid the creation of new felonies. As long as we’re not moving backwards on the criminal justice side of it, then we’re still, I think, moving a little bit in the right direction. I think that the forecast for Washington is that the rules are being set by people who weren’t here 2 years ago, and how do we work with that. That’s the main challenge.

Shango: There are so many misconceptions in cannabis policy right now, not only from state to state, but even people who are involved, and are cannabis enthusiasts, and activists, they themselves are holding misconceptions either based on things that they were told, or always assumed, or their vision of the future. At the national level, what do you think are some of the most common … Let’s try this again. There are so many misconceptions in cannabis policy right, at the national level what do you think are some of the most common misconceptions held by cannabis enthusiasts and supporters?

Dr. Corva: The biggest misconception is that legalization means that everyone is more free to engage in cannabis commerce, when in fact, legalization clearly means that new lines are being drawn. That’s actually of a potentially negative benefit, or negative outcome, for folks who’ve been, for instance providing patients with lower, no cost medicine, for example. They’re not more free to do that under legalization, as we’ve made it in Washington state, they’re less free to do it. We celebrate legalization as though that means something just in general, that is just all positive. It is all positive for the criminal justice side of it, that’s important that they understand that part is true. Their ability to have sustainable livelihood in cannabis is potentially eradicated, unless they reinvent themselves in the formal market as consultants, or if they get with the right investors and are able to be a part of the new landscape.

Shango: The Center of the Study of Cannabis and Social Policy recently obtained a large dump of raw data from the Washington State Liquor Control Board, that everybody’s been talking about. The Center has lead the way in making sense of this obtuse dump of information. How is the Center going about it, and what are some of the very first insights that have come from the early study of that data dump?

Dr. Corva: We have established a working group of data professionals that we’re calling the Liquor Control Board Data Dump Working Group. We have a Trello account with assignments, and ways to divide up our efforts to process this data. Now it’s a raw data dump from BioTrack, it is not organized in a fashion that allows you to make easy sense of it. You have to know what to export into an Excel file in order to make it processable, and then to be able to visualize it and tell a story about it. It’s a really positive development because it means that the Liquor Control Board actually is offering us greater access to information they ever did before, but we need expertise, professional expertise, to make that happen, and that’s why we have the working group.
It’s negative in the sense that it’s just not clear, and also we have to learn BioTrack’s API, we have to learn their software, we need a level of professional attention to this, that we didn’t need before. That’s a challenge that we’re happy to actually rise to because of the wide array of different stakeholders, volunteer and otherwise, that want to make sense of this data dump. They can’t do it by themselves, so in addition to obviously me reaching out to certain data professionals, Doctor Jim McRae is a good example, we’ve had people reach out to us because they’ve gotten that data dump too, it’s public information request type thing. Even the folks who are providing subscriptions for the way they process the data are struggling with it. They’re all realizing that actually this is a collective effort, and at the very base we need to establish a system for being able to access it. Until we do that, nobody can make any sense of it. It’s a really interesting public-private partnership, I think, that’s developing.

Shango: What kind of data points are in there? Data can be a lot of things.

Dr. Corva: Almost all of them, this is the Seed to Sale [inaudible] System Dump. It’s not all of them, I do know that, that’s one thing that has been determined from our professionals, that there are data quality problems that are endemic, so for instance fields that are greater than 100% THC level is clearly … That’s a data quality problem. Fields that are empty, fields that have been mis-entered, so what we’re seeing here is the raw data that gets input by the producers, processors, and retailers, and there’s a lot of human error on that side. There are, beyond that, issues in the process of creating the information that maybe they entered correctly. Maybe there was a mistake at the lab, and that gets entered.
We’ve determined that the BioTrack system may be a little difficult in that regard, it’s only as reliable as the data that’s entered into it. People are still learning how to do that still. That moment when you open up the latest version of Microsoft Office, and you have learn like, “Oh, I’ve got to actually relearn how to do Microsoft Word. The buttons are all in the wrong places. Where’s that easy function?” It’s somewhere in there, you’ve got to find it. This is not necessarily the fault of biotrack per say, we don’t want to be adversarial about that, but it is a new system, are there are thousands of people with no expertise in data entry, entering data.
There are potential data quality issues, basically, that first we want to identify what data is good, there are systematic ways to do that that generally involve identifying outliers and getting rid of them, so that the data server confident. The outliers, the problem is drawing that grey line between what’s an outlier and what’s not really. We’re very early on that. In terms of the data that’s available, once we get the code broken, essentially, we will be able to say what labs have been testing THC at what percentage. We will probably be finding outliers for some labs that may be due to the way they do it. For instance the American Herbal Pharmacopoeia has standards that people are supposed to follow, but the LCB doesn’t have an auditing system for making sure they’re following it, so people are requiring far less in terms of their grams of sampling.
People are applying a different methodology, which the key one, I would say, is that your THC levels are always a combination of your actually your THC and THCA numbers. Your THC numbers are always really low in plants, because you have to decarboxylate the THCA to make it turn into THC. That process of decarboxylation isn’t 100% conversion, and so the standard is to apply a .8 … Multiply by .8, 80%, of the THCA, should become THC, add that to your THC, and that should be your total THC. Well some labs aren’t doing that. They’re not multiplying by .8, they’re just adding THCA to THC and that’s your THC levels, which has given us in the legal system, clearly, much higher THC numbers than the testing that was going on in the medical system.
The information when we visualize that when we show the public and policy makers that this is a problem, they can act on it. Again, not to identify bad actors, or criminal actors, but people who are figuring out how to do this. We can’t assume expertise. I’ve been saying for a while, for 502 legal cannabis, if you got a day in it, you are in the 1% in terms of expertise level in the population. That 1% includes people that have been there from day 1. You’re at the tail end of that, but you’re still more expert than everybody else. The folks who have been there from day 1 are still also just figuring this out. There’s just so much room for error, that it’s important for us to be able to look at the big picture in there and kind of determine where are things going weird.
We should be able to get the inventory story, which has been a difficult monkey to track down, which would help us understand, for example, what needs to be sold, and what’s being produced right now, and compare that with what’s going through the velocity of it, going through the system, out the retail doors. Are we building industry inventory, or is it shrinking? The dynamics of it are very strange, because we have to understand that obviously indoor production is coming online strongly right now. Then we’re going to have a huge outdoor production in the fall, and yet you add those together and like, what are we looking at in terms of prices? When you have this much oversupply and very limited retail landscape.
We’re not opening up retail stores at a rate that we’re increasing production. That’s the short story. The data dump will tell us exactly what are the dimensions of that, and what people maybe should be thinking about in terms of maybe we need to open up twice as many retail stores. Policy makers are considering exactly that right now, but until they actually have that information in front of them, they’re not going to know how dire the situation potentially is.

Shango: Last week your organization released an infographic with just the very, very, beginnings of making sense of this data. I think it was mostly on inventory. What is anything from that data that you found surprising, or against what everyone’s assumptions were that there was going to be in there?

Dr. Corva: There was a lot of panic about the fall harvest and overproduction that crashed prices to a degree that was very problematic for all these producers who are still dealing a 3-tiered tax system, and are still attempting to recapitalize what they lost in the first year and a half of trying to actually open up. There was huge panic, there numbers that were thrown out there, irresponsibly, saying there was 30,000 pounds of inventory that were based on nothing in particular other than we know that this was the canopy, and we know how many pounds were produced up through December 7th. That was the cut off point for the LCB keeping track of it. People were panicking like this is a huge problem, the LCB system is going to crash because everybody is going to go out of business.
Where in fact … My initial response to that was, wait a second. Of what was harvested, the LCB standard is 1 to 1, buds to raw material, in terms of what the plant produces, so first of all cut your 30,000 pound estimate in half, right away, to 15,000 pounds. Which is still a lot, but manageable. Then actually we need to go back and check that 1 to 1 ratio again. This infograph which was produced by the LCB, and is supposed to be a weekly production, but we haven’t gotten any further iterations even though we’ve put forth more information requests. What it showed was approximately, in terms of usable bud flower, to go into the system, there were a total of about 15,000 pounds that was produced between July and December, as opposed to a total of about 25,000 pounds which we were kind of thinking might have been the case, and also it’s ratio to the raw material was much more like 1 to 3. 1 pound of usable buds to 3 pounds of raw material, which means that your inventory of buds is not nearly the problem that folks were saying.
You can see that in February, if you look at the trajectory of prices stabilizing, it started stabilizing in February. Which is not consistent with a massive glut. There was a glut that was clearing, that’s the story that was telling me. That infographic showed how that seemed to be the case. One we were off on the raw material to usable bud production ratio, and two, that it was clearing. The surprising thing is that I think we’re up to about 700 pounds a month of indoor production, which was a little bit more than I thought we were at, and certainly we’re showing more every month in a way that is, again, not consistent with our retail stores opening up.

Shango: Outside of what the WSLCB is reporting through their infographic, what has your team at the Center for the Study of Cannabis and Social Policy started to pull out of the data that you might find surprising? Is it too early for you to speak on the data or is there anything that you’ve seen right off the bat. You’re like, “Wow, this is interesting.”

Dr. Corva: It’s a bit early to be honest. The basic stuff in the infographic is what we’ve been able to pull so far, and that’s kind of just reinventing their process to get at the infographic, so that’s not super surprising. The sales data is not surprising, the sales data is the most reliable data, that’s the most successful data from the data dump. I think that the evolution of the processing industry, the very beginning peek into that, is most interesting to me. It wasn’t a surprise to me, but maybe a surprise to the public, is that CO2, oil, wax, shatter, but this products are in the 502 market. They’re a little more expensive than they ought to be, but they’re coming online, and to me, that’s the inventory that you need to look on for profitability for producers and processors, is that there’s so much growth potential for, in particular, the concentrate production, and that will take care of inventory in ways that selling buds will not. Whether that means raw material, or ‘B’ buds, or buds you weren’t able to sell, because they were inferior in terms of their bag appeal. That goes into the processing system, and that processing capacity is starting to develop. They’ve got plenty to work with and those prices should be coming down.

Shango: Let’s change our focus from the state and national level to the international level. This week CASP and a consortium of over 100 human rights and drug policy organizations released an open letter calling on the UN to respect changing drug policies within a number of countries, like ours, and to prioritize human rights over punitive law enforcement in it’s approach to drug laws. Will you please tell us about the disconnect between the evolution of drug policy of UN member nations, and the difficulties that the UN body is having adapting to these changes?

Dr. Corva: Oh, yeah, yeah. The UN drug control system was initially really structured by, and disciplined by, the US State Department in conjunction with a few key allies, that maybe you wouldn’t expect. Countries like Italy, Japan, even some Scandinavian countries, all of whom wanted to place key diplomats into key positions, so there’s the politics of the UN itself, which has a lot of different bureaucracies, and every country is vying to put their people in positions of authority. We have a number of different UN drug control bodies within the UN who are all countries just sort of competing for getting to say something overall. The US has played a smaller, and smaller, role in what that looks like. Other countries have adapted or adopted the early US militant approach during prohibition in ways that may be surprising to some people.
I think that it’s fair to say that while the US is the author of the global drug war, other states have found it very, very, useful as well. They’ve learned how to find it useful in ways that the US maybe never anticipated, and certainly … China, for example. There are a number of other countries that are moving to get tougher on drugs, and move towards the old US approach on their own, and they’re in the UN, in key positions of authority. They push back against drug policy reform in ways that we wouldn’t have expected 20 years ago. It hasn’t gotten more democratic, it has gotten more bureaucratic, which means it’s very difficult to get things done.
One element of the UN drug control policy, maybe the health professional bureaucracy is more interested in harm reduction, but UN ODC drugs and crime, those are law enforcement professionals, and they don’t want the drug war to go away at all. At the same time there’s much more vocal opposition to the old paradigm now, our letter really represents a consortium of really accomplished, and long standing organizations, that worked with us for a very long time, and they do have a voice in particular the health side of it. They don’t have much of a voice when it comes to the law and order side of it.

Shango: It sounds like there’s a lot of entrenched ideology and elites that are benefiting from the old system to such a degree that it may seem like the letter is more symbolic than having a lot of true affect. What do you think that it’s going to take to change the policy at the UN level after the United States has been such a leader in sculpting the drug war to suddenly change our minds and decide to go the other way to bring the entrenched elites along with us?

Dr. Corva: Fragmentation, basically. The US what it was good at was really constructing coalitions that all got beyond what they said. They would do it through a combination of carrot and stick: it wasn’t us forcing everybody all the time, often it was us providing benefits to folk to get behind. The US has stepped back from that role as other countries have become more militant, Russia, China, and so forth, but it’s a fragmented situation. You have your Latin American countries in particular that really want to break away from this, and certainly I think they were the biggest victims of the global drug war that the US built through the UN. Through how the 1961 treaty itself evolved and what signatories had to do, and when they would be held accountable for breaking it.
Bolivia lost funding because they objected to the cocoa provision in the 1961 treaty. The 1961 treaty is still the foundation and bedrock upon which drug control policy is made worldwide. Nominally everyone has to do their duty as signatory, but it’s fragmented. People are signed on, but increasingly not really even honoring the letter of the law. The US would be first in line in terms of my description of countries that are doing that. Nowhere else in the world have they legalized cannabis. It’s a weird situation, but we’re the biggest breakers of the UN drug control treaty right fucking now. Right now. That is powerful, because other countries feel free to do it without repercussions. If the US tries to crack down on them or cut off aid, they can say what about Washington, Colorado, Alaska, Washington DC, Oregon, California? You can’t really hold us to be the law breakers here.
Symbolically, it is fragmenting and in that way the consensus around it is breaking. That can go very positive directions in some places, in Spain it’s going positive, in Portugal it’s going positive direction, Uruguay it’s going positive direction, in certain parts of Latin America it’s going in a positive direction. It can get really nasty as well.

Shango: Doctor Corva, it sounds like your organization is producing important research at the local, state, nation, and participating with things at the international level. I’m sure that many of our audience are going to be interested in following up more. Where can folks find out more about CASP?

Dr. Corva: www.cannabisandsocialpolicy.org is our website, and my contact information, email, and phone number, are on there. People are free to contact me any time.

Shango: Thank you Doctor Corva for joining me today. Doctor Dominic Corva is executive director of The Center for the Study of Cannabis and Social Policy. I am Shango Los, founder of the Vashon Island Marijuana Entrepreneurs Alliance, thank you for listening to Ganjapreneur.com.

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The White House Removes Marijuana Research Restrictions

The Obama Administration has announced that the federal government will drop current marijuana research restrictions, leaving the door open to long-awaited and much-needed investigations into the efficacy of medical cannabis.

“Eliminating the Public Health Service review should help facilitate additional research to advance our understanding of both the adverse effects and potential therapeutic uses for marijuana or its components,” explained Mario Moreno Zepeda, a spokesman for the Office of National Drug Control Policy.

The Public Health Service review was a stifling bureaucratic process first established under the Clinton Administration in 1999 to ensure the scientific validity of certain research projects — applications for cannabis research were particularly demanding, and cannabis ultimately became much more difficult to study than cocaine or heroin. Ultimately, the review process obstructed more research than it encouraged.

Earlier this year, a bipartisan group of legislators — even some who support the continuation of prohibition — called for these restrictions to be lifted.

“This announcement shows that the White House is ready to move away from the war on medical marijuana and enable the performance of legitimate and necessary research,” remarked Bill Piper, director of the Drug Policy Alliance’s office of national affairs.

Sources:

http://rt.com/usa/268966-white-house-restriction-marijuana-research/

http://america.aljazeera.com/articles/2015/6/22/white-house-removes-marijuana-research-barrier.html

Photo Credit: Eric Weaver

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