New Rules for Medical Cannabis Could Come Soon to California

California Governor Jerry Brown is expected to sign a package of three bills that would institute statewide rules for the marijuana industry.

AB 266 would create an oversight agency for the industry, the Bureau of Medical Marijuana Regulation, and would allow local governments to institute their own stricter rules.

AB 243 is intended to reduce the environmental impact of the marijuana industry.

Assembly Speaker Toni Atkins (D-San Diego) called on Brown to sign the bills into law on Sep. 30th.

“California has needed to provide clear direction on how to move forward on medical marijuana, and now I think we’ve achieved that goal. That’s because we’ve had hundreds of meetings,” said Atkins. “All the stakeholders came to the table — law enforcement, local agencies, patient advocates, medical marijuana businesses, and even Governor Jerry Brown’s staff participated in helping to create what we have before him to sign, hopefully in the next few days.”

Some in the industry are worried that the new bills could in fact shut down much of the medical marijuana industry in Los Angeles. The new rules would require businesses to obtain both state and city permits, and currently, Los Angeles doesn’t offer such permits.

The voter-approved proposition D provides only “limited immunity from…  enforcement” to 135 Los Angeles pot shops that were established before a 2007 local “interim control ordinance” was instituted.

Others, such as president and founder of the Greater Los Angeles Collective Alliance (GLACA), Yami Bolanos, says that the new rules are a good thing, and that the industry won’t be shut down.

“It’s better to deal with it and regulate it,” Bolanos said. “Changes and amendments need to be made.”

Dale Gieringer, state coordinator of California NORML, said that the rules represent “an accomplishment … keeping everybody on board.”

“Not everybody’s happy. But there are plenty of industry people praising it.”

Bolanos said that those who are unhappy with the rules should have spent time giving input while the proposals were being crafted.

“Welcome to the adult world where you have to follow the law and regulations,” she said. “That’s what we’ve been begging for for years. Give us rules so we can be respected.”

The dispensary rules are scheduled to go into effect in 2018.

Sources:

http://www.laweekly.com/news/new-marijuana-rules-could-close-every-dispensary-in-la-6104682

http://timesofsandiego.com/politics/2015/09/30/atkins-other-legislators-urge-governor-to-sign-medical-marijuana-bills/

Photo Credit: Håkan Dahlström

 

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New York Medical Cannabis Company Etain Offers First Look at Cultivation Facility

Over the next few weeks, an old horse barn will be transformed into one of the first medical marijuana cultivation facilities in New York.

The 8,000-square-foot barn in Chestertown is still being renovated but once complete it will serve as the extraction, curing, processing, separating and lab site for Etain, LLC’s production facility. Alongside the barn, nestled in the foothills of the Adirondack Mountains, is the footprint for what will soon be a 13,000-square-foot greenhouse.

During an open house of the facility, led by Etain COO Hillary Peckham, local government officials and media members were allowed inside the horse barn for the first, and last, time. Soon clones will be brought to the site and it will be locked down, per Department of Health regulations. Presently an 8 foot fence surrounds the perimeter of the site. Additional security measures, such as cameras, motion detectors and guards, will be in place before the first marijuana shipment arrives.

In accordance with state law the plants will be used to extract oil. New York’s Compassionate Care Act forbids smoking as a delivery method, and because of this Etain has narrowed their offerings to four products: capsulated pills, sublingual drops, oral sprays and concentrates for use in vaporization pens. Etain has partnered with Clean Room Extract to create the concentrates using carbon dioxide extraction methods. The law allows for each of the five state-approved companies to have five “brands,” determined by the THC to CBD ratio in the final product.

“Clean Room Extracts [process] gives the highest yield for the amount of extractable oil,” Peckham said during the tour. “Most industry standards are about 14 percent of the usable oil…Clean Room Extracts has a minimum of 35 percent.”

Etain is currently the only New York company using Clean Room Extracts for their oil processing. Clean Room Extracts entered the marijuana extraction sector three years ago, according to Alfonso Liu, a Clean Room Extract representative who attended the event. Prior to getting involved with the marijuana industry they utilized their methods to extract liquids from algae and fungi. The firm also works with companies in New Jersey, Colorado, California and Kentucky.

“The industry standard [for extraction] is getting about 50 to 60 percent,” Liu said. “We have a proprietary method that we can go all the way to 95 percent. So depending on what method we use, we can get 95 percent of the oil.”

No products will be sold directly from the rural Chestertown location. The law allows for each of the five companies granted permission to operate in the state one production site and four dispensary sites. Peckham explained that despite there currently being zero enrollees in the program, their business plan has prepared them to handle a customer base of 500 patients. Their first, and currently only in-progress, dispensary is set for North Pearl Street in Albany – a stretch currently occupied by warehouses, mechanics, breweries and bars. Peckham expects a slow start to the program, hence her focus is on the small-scale grow-op and just one dispensary. During these early stages she expects to have about 20 employees working between both sites. Peckham is hopeful that her other locations will be ready by the end of February.

The security for both the cultivation and dispensary sites are headed by Mike Rego, a former Newport, Rhode Island narcotics detective. Rego helped open Greenleaf Compassionate Care Center in his home state and has worked with other medical marijuana sites with securing their locations.

Rego says that the rural setting for Etain’s cultivation center might make his job a little easier but he is going about securing the site in the same fashion he would any active grow facility. The fact that the plants are useless once used for extraction eases his mind a bit compared to other sites because it makes the site less appealing to thieves. Rego explained that oil is less likely to be “diverted,” or sold illegally. At the cultivation site the products will be stored in an 800 pound safe so, “even if someone were to get past the fence and into the vault, the cops are going to be there in no time and your face is on camera.”

“There is a general interest here that this is a place that is not going to have any problems,” he said. “We want to be a good neighbor.”

Rego said that one of his primary goals is to ensure patient comfort at the sites in his charge.

“My experience has been patient interaction is very important… You want to feel like you’re in a safe and secure place,” he said. “You don’t want to have an armed guard hanging over you. That’s not the environment we want to create.”

Rego’s approach to security seems in line with the “compassionate” namesake of the bill, while the cultivation facility’s tranquil location elicits a peaceful vibe. Although the Department of Health can shut down the program at any time for any reason, Peckham is confident that this is just the beginning for the industry and the Health Department realizes that medical marijuana therapy is long overdue, and much-needed, for patients in the state.

“It’s compassionate care, it’s palliative care and you can make an impact on patients’ lives,” she said.”

Photo Credit: TG Branfalt Jr.

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Ecuador Increases Penalties for Small-Scale Drug Trafficking

Ecuador has moved to increase penalties for small-time drug sellers, going back on reforms instituted last year that differentiated penalties for possession of small amounts of drugs and possession of larger amounts with intent to sell.

Ecuadorian President Rafael Correa, speaking to the National Assembly before the vote, said that small-scale drug dealers, or “microtraffickers,” were “poisoning the population.”

”Do we want to end drug use in youth? We have to jail microtraffickers (…) I have called for higher sanctions for microtraffickers,” President Correa said in September.

Correa called the stricter penalties “preventative prison,” but Hannah Hetzer, Senior Policy Manager of the Americas for the Drug Policy Alliance, said that “this won’t do anything to protect youth from drug use, while filling Ecuadorian prisons with people – mostly women – who are often forced into the drug trade, either out of violence or economic necessity.”

The new law increases penalties for the sale of “small quantities” of certain drugs from 2-6 months to 1-3 years in prison, and for “medium-scale trafficking” from 1-3 years to 3-5 years.

Correa’s step backwards comes at a time when other Latin American policymakers are beginning to recognize the failures of marijuana prohibition and moving to reform their laws. Uruguay legalized marijuana in 2013, and Colombian President Juan Manuel Santos has spoken out against the failed war on drugs.

Source:

http://www.thedailychronic.net/2015/47647/ecuador-backtracks-on-criminal-justice-reforms-increases-penalties-for-drug-selling/

Photo Credit: Dallas Krentzel

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It’s Harvest Time: Loving the Outdoors

There is always a lot of energy in the air in northern California when the fall harvests start coming in, and Ganjapreneurs can use this as an opportunity to educate their clients about the differences and misconceptions between indoor vs. outdoor cannabis.

Lots of people feel that indoor pot is more potent and flavorful than outdoor. However, grown in a good area under the right conditions, outdoor cannabis can rival or even surpass indoor crops.

After all, it’s hard to mimic nature with her pure sunlight and moonlight. The unique reaction of the earth on the phenotypes creates a brew of the different cannabinoids and releases the terpenes. The unpredictable moods of the weather, the cycles of the natural world, all contribute to the unique complexity of outdoor pot.

Legalities have forced many growers who might prefer working with the earth inside. And there are definite advantages to growing indoors. You can control the environment. It’s easier to keep a handle on insect infestations.

Indoor grows also lend themselves to experimentation. New high potency strains that are constantly cropping up in collectives are the result of innovative indoor farmers applying their creative vision to their gardens.

Sometimes growers will start their plants in a controlled inside environment then move them outdoors.

Insanity Strains, a boutique facility in northern California, this year created two strains in this manner: Insanity OG and Hannibal Nectar. They kept their operation small to better monitor the results. At this writing, the buds are still drying, but early tests indicate that these two strains are nearly as potent as the high-quality indoor plants they used to create them.

Throughout California and the nation, growers are doing the same. It’s a good time for pot farmers and Ganjapreneurs in general.

For one, it’s a chance to broaden the perspective of your customers. Whether the weed was grown inside or out is less important than its other qualities. How does it smell? Taste? What are the effects? Is it organic? These are the questions you want your customers to ask.

It’s also an opportunity to look at marijuana’s cultural and social history. Most people use pot, not as a way to get high but to cope with some deeper issues like anxiety, PTSD, sleeplessness or chronic pain, and prefer a natural alternative rather than the cocktail of drugs most doctors prescribe.

For most of history, outdoor is how the plants came to us, and as the industry emerges from the shadows we can expect higher quality, flavorful and more experimental outdoor pot as well.

Trimmed up, outdoor plants look as lovely and neat as their smaller, indoor counterparts.

But in the ground, with buds shimmering like alien bottlebrushes and their green leaves the color of health itself, they are truly one of the most beautiful and practical plants around.

Photo Credit: Insanity Strains

 

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Ah Warner: Formulating Premium Topicals with Cannabis Basics

Ah Warner is the founder and CEO of Cannabis Basics, a premium hemp and cannabis topicals producer since 1995. Cannabis Basics formulates lotions and topicals for both the medical cannabis and skin care markets, producing everything from pain relief creams to beauty products and tattoo treatment balms. Cannabis Basics is one of the leading cannabis topical manufacturers in the USA, and it was an honor to speak with Ah about how she has grown the business, the difference between her products and many of the other cannabis topicals on the market, as well as how she comes up with her unique formulations.

Listen to the podcast below, or scroll down for the full transcript!

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Listen to the Podcast


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Shango Los: Hi there, and welcome to the Ganjapreneur.com Podcast. I am your host Shango Los. The Ganjapreneur.com Podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers, and cannabis medicine researchers, all focused on making the most of cannabis normalization.

As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark and give you actionable information to improve your business strategy and improve your health and the health of cannabis patients everywhere.

Today, my guest is Ah Warner, founder and CEO of Cannabis Basics, a premium hemp and cannabis topicals producer since 1995. Ah was the winner of the 1999 Hemp Times Bioneer Award for outstanding achievement in body care. She has been featured in Cannabis Now Magazine for her entrepreneurial savvy, honored as DOPE Magazine’s patient of the month for her advocacy work on behalf of the cannabis plant, and recently received a special award from the MJBA Women’s Alliance for her focus and dedication to the Women in Washington’s cannabis industry.

She’s a proud member of the American Herbal Products Association and is a member of their cannabis committee. She’s also founder and executive director of the International Cannabis Health and Beauty Aids Producers Alliance. She’s an active participant in nearly every respected cannabis organization that exists, and we are thrilled to have her with us today. Welcome, Ah.

Ah Warner: Thank you so much. I’m thrilled to be here.

Shango Los: Ah, in the first several years of medical cannabis topicals, we’ve seen a lot of different producers and a lot of different quality, shall we say, but very few formulations that are actually really effective and also pleasurable to use. What attributes make for a really great topical?

Ah Warner: I think it’s important that, when we’re working with this beautiful plant, we stay as natural as possible. For me, when I look in a quality topical, first off, I want no chemical preservatives and no man-made fragrances. Man-made fragrances will create a barrier on our skin. Not only will it not let the therapeutic effects of all the natural botanicals absorb, but it also keeps up from detoxing. It keeps us from releasing the CO2 from our skin.

When we use these man-made fragrances, we also do not get the benefits from the natural terpenes from the essential oils that we should be using. We don’t get the terpene effect. We also don’t get the penetration from those terpenes.

Shango Los: I see. We want to stay as close to the basics so nothing blocks the health that we can get from the terpenes and the other natural constituents. In some way, though, we do have to mix it with something to create a vehicle for the oil. I’m assuming that you think we should stick with natural, I guess solvents isn’t the right word, but vehicles as well to mix with our oil.

Ah Warner: Absolutely. When we’re talking vehicles, my product line I have massage oil, I have lip butter, I have pain cream. If you’re talking about carrier oils or the rest of the botanicals that make up a formula, as natural as you can go, shea butter, coco butter, coconut oil, olive oil, are all great oils to be used as carriers.

Shango Los: My mom says, “Oh, the rule for product development is KISS, Keep It Simple, Stupid.” It sounds like it’s the same kind of idea that adding more is not necessarily going to be better. Keeping the product as stripped down, so that you’ve got a very clean and effective medicine, is what you’re saying is the way to go.

Ah Warner: Absolutely, keep it simple. However, I really feel like cannabis topicals are not just about THC. You really want to bundle these cannabinoids, and the very foundation of my entire line is hempseed oil for a completely different set of reasons. You want to keep that at the forefront, but also bundle it up with a lot of other great botanicals so that you have, if you will, an entourage effect. I use a lot of tea tree and arnica that are also very effective for quite the same reasons that cannabinoid therapy is.

Shango Los: That’s a good delineation. There are many different uses for these topicals. As far as I can tell, they fall into 2 big categories: one is being pain relief; the other is for dermatological formulations. One where you want to get it to soak into the skin, and one where it’s more topical. Can you explain the difference between those kind of formulations and their uses?

Ah Warner: What you’ll find in the health and beauty aids market is that we really have to pigeon-hole products to be a single-use item for marketing purposes, but the fact of the matter is many of the products that we use every day could have multiple uses.

My products, my 2 pain creams, are just as great for eczema and psoriasis. Because of the actual benefits of the cannabinoid therapy, it’s anti-inflammatory, analgesic, and antispasmodic for the pain relief. It’s also, in the same formulation, great for eczema and psoriasis. It’s antibacterial, antifungal, deals with foot odor because it deals with bacteria.

When people ask me how cannabinoid therapy, what it’s like, I liken it to the best of both tea tree and arnica. You’re dealing with those surface-skin issues as well as muscle and inflammation and pain issues.     

Shango Los: You must spend a lot of time educating budtenders when you’ve got products that are only for one thing and then products that can be used for multiple things. They each have got subtleties to provide different kinds of relief. There must be a lot of education in that to make sure that the person who’s actually talking to the customer is getting the right information.

Ah Warner: There really has been a ton of education, and I’d like to give my props up to all of my competitors here in the state of Washington. We really have created this marketplace. It has been painstaking because we really had to, 1, get them to buy into topicals were even a thing that they would want to sell, and then get all the budtenders to really get behind these products. It meant, like any other marketing campaign, giving a lot of product away and having them use them for themselves. Once they buy in, it’s all good from there.

Shango Los: A lot of the different formulations have got wildly different concentrations of cannabis in them. I’ve sampled a bunch and written a lot of reviews, and some of them I got nearly no effect, and others really took care of my carpal tunnel syndrome to sooth it and gave me that anti-inflammatory. Outside of patient diving in and learning everything about it, are there any rules of thumb that can be used so that people know that they’re buying something that’s potent enough?

Ah Warner: Right. There’s a couple things I want to say about this. You want to make sure that whatever THC level or other constituents, whatever level it is, you want to make sure there are terpenes there to actually carry it into the lower layers of the skin if you’re looking for muscle or pain relief. I would like to make a point that the legislation that I just co-authored, it really defines the difference between my world and what I consider cannabis health and beauty aids. Those are products that are less .3% THC. Even anecdotally, we know that these products are very helpful in many, many maladies.

Then there are a separate division of products that I would consider medical grade topicals. Those are products that are above .3% THC. Whether you have high concentration or a low concentration, you need to make sure that whatever it is bundled with is effective in getting it down into the lower layers of the skin. There, I’m talking about terpenes or emu oil if you choose to use an animal byproduct.

Shango Los: It sounds, again, that we’re back to making sure that entrepreneurs educate their budtenders on what the difference is in their product and what it can be used for and to make sure that they can pass that information on to the consumer so they know what they’re getting and they know they’re getting the right thing.

Ah Warner: Absolutely. I do see a lot of stuff out there that I’m not crazy about. I would like to encourage anybody that’s getting into this to please keep it as natural as possible because once you start adding a lot of preservatives for shelf life, you really take down the quality of the product itself.

If we’re talking about patients here, patients need … My health and beauty aids, I target to all health-conscious consumers, so you don’t necessarily have to be a patient to buy health and beauty aids. When we’re talking about patients with serious issues, we want to keep these products as clean as possible. That would be my advice.

Shango Los: Right on. Thanks, Ah. We’re going to take a short break and be right back. You are listening to the Ganjapreneur.com Podcast.

Welcome back. You are listening to the Ganjapreneur.com Podcast. I am your host, Shango Los. Our guest this week is Ah Warner of Cannabis Basics.

Ah, before the break, we we’re talking about all the variety of topicals that there are. Sometimes I will get one, and it will be separated in the jar. What kind of formulations do you recommend that will stay together? I’m asking this question more from an entrepreneur side than from a consumer side. For folks that are looking to develop their own topicals, where do you recommend that they consider starting for something help them have a successful product from day 1, and then they can learn from there.

Ah Warner: Yeah. It depends on the product. It depends on what you are going to use the product for. Making a massage oil, where you don’t need an emulsifier, that’s not going to separate on you as long as you have all oil-soluble constituents. My 2 pain creams are something pretty rare in this industry as far as I know because I think that most of my competitors actually take an already-built lotion, and then they will add their cannabinoids to them.

If you are going to actually make a true emulsification, you are going to need to do that in your process. That’s why you’ll find the 2 pain creams that I make will never separate. What you’re seeing, I think, on the marketplace is actually formulas that are thrown together that aren’t actual true emulsifications.

There also is a step down from emulsification when you’re talking about suspending. Like a lip butter, for instance, you don’t need an emulsifier. There is a little bit of water in that, but you actually keep the formula suspended and separated until it cools by actual inertia.

For those types of products, it’s all about the physical centrifugal force to keep the product blended well while it cools. It’s about level of sophistication and what type of products. If you’re just starting now out to make topicals, you want to start with something simple like a massage oil or a lip balm.

Shango Los: You’ve got a really great reputation. Not only do you do a lot of cannabis outreach, but people know you to be a product development nerd, I dare say. You build your lotions themselves from scratch. A lot of our listeners as entrepreneurs are going to be figuring out their own formulas.

Do you have any good advice for them for finding their own formula, as far as the testing goes, or creating and comparing different ingredients? Because I’ve tried to do this myself, and sometimes I forget which batch is A, which batch is B, and what had what in it. I’m sure you’ve done that for months and months. Do you have any words of advice for folks who are jumping into developing their own product now?

Ah Warner: Yes, absolutely. First of all, do some research. I can tell you that most of my formulas are from the research that I did in natural cosmetics, or natural botanicals. Do some research first. When you’re actually start to do your test batch, make sure that you take copious notes.

Really, please do not put these products on the shelves until you have had 6 months of research and development. What happens is you’re risking your entire reputation if you put a product on the market, and then it starts to mold, or it starts to separate. You actually need to do that in your lab or in your facility to make sure that those things don’t happen before you expose your brand to those kinds of negative feedback.

Shango Los: That’s actually a really good point. I didn’t even think about the product molding. How terrible would that be to do an entire run of something and then heat seal it, and then ship it out. Then, maybe it sits for little bit, and they bring it home, and they open it, and it’s moldy. Gosh, that is not a good way to start with your customer.

Ah Warner: No, it’s not, but unfortunately, it does happen, especially … I just want to make the note that people that are making commercial chemically-preserved products don’t have that to worry about. If we really are going to focus on natural products, it is an absolute concern of ours.

Look at a company like Lush. Lush recommends one of the most natural cosmetic body-care companies in the world. They recommend refrigeration for many of their products. You might argue the same for some of these products because the more natural the more susceptible they are to rancidity. It’s all about care. Natural products, you never want to keep them in the light, the heat, or expose them to too much air because that exposes them to rancidity or mold.

Shango Los: I think that’s a really good example, too, because I adore Lush products. I love how natural they are. They’ve got fantastic smells. I’m willing to pay a little bit more premium price because I know that there’s nothing toxic in it for me. I’m even willing to put it in the fridge, which is a minor inconvenience, because I want it to be able to stay fresh for me.

Ah Warner: Absolutely. I did want to add one more thing for Ganjapreneurs that are just starting out that it’s really important that you be fully transparent. You really need to put … Because of the history of our industry, not everybody has been forward with their ingredient list. I think that’s really important, especially for patients. They’re sensitive to allergies. They need to know exactly what’s in these formulas, so full ingredient list is definitely super important.

Shango Los: I think that’s a great note. That’s a good idea. Those notes would go on the packaging. Let’s talk about your packaging.

I adore your packaging. It’s simple. It’s colorful. It’s easy to read. I daresay it’s fun. When you look at the other products on the market, sometimes you’ve got people doing package design who are less experienced. They’re using fonts that are mismatched or hard to read or too small for a lot of folks like me who wear glasses. You seem to have discoed around all of those challenges.

How did you come to your brand? Was it just something that came to you fully born, or did you do focus groups? How did you get to the visual representation of your brand?

Ah Warner: Well, fully born after 20 years. Cannabis Basics was Cannabis Creations and then Cannabis Creations Body that started in 1995. If you look at the evolution of our logo, it’s pretty crazy. The best advice I can give to entrepreneurs is to pay professionals do this type of work for you. If you are not graphic designer, you should not be doing this work for yourself.

You can come in with your ideas. My graphic designer has been brilliant because I was really strong about what I wanted, but she was able to craft it in a way that made sense and was timely and was beautiful. For instance, inside of our logo, most people, even dedicated fans of Cannabis Basics, they don’t actually see the subtleties of our logo. We’ve got 4 hands inside the negative space of the marijuana leaf, and it’s just really beautiful. It’s those subtleties that you don’t necessarily see that mean a lot in a logo.

Just along this vein, I wanted to let you know that Cannabis Basics was just awarded the first-ever federal trademark with the word “cannabis” and the leaf in the same marking. This just happened like-

Shango Los: Wow, congratulations! That’s a big deal.

Ah Warner: Thank you! It’s the first of its kind, definitely in my category, I believe in the entire marketplace. It’s a big, big deal. We’re super proud to be leading the way.

Shango Los: That’s fantastic! You’re clearly going to be taking your brand national as allowed by law state-by-state. Have you been able to do any interstate brand development at this point to kind of help warm up the customer bases in the different states to maybe cause them to want to buy it when they come here to Washington?

Ah Warner: Sure. A little bit. I’m so Washington-centric focused that I haven’t really done a whole lot. I’ve been in some national magazines. I’ve been a judge and a presenter at the High Times Cannabis Cup. My main focus is really the mainstream marketplace here in the state of Washington. That is where I’m going to concentrate for the next couple of years because, 1, I can’t take my cannabinoid products across the state border. 2, I’ve just gotten this legislation passed that allows me now to sell in the mainstream marketplace. There’s plenty of market for me to focus on right here in the state of Washington.

Shango Los: The legislative part is very exciting. We’re going to talk about that right after this short break. We’ll be right back. You are listening to the Ganjapreneur.com Podcast.

Welcome back. You are listening to the Ganjapreneur.com Podcast. I am your host, Shango Los. Our guest this week is Ah Warner of Cannabis Basics.

Ah, before the break we were just beginning to talk about the new legislation that you’ve been working on to allow folks to be able to use cannabis products purchased just at their local shop instead of having to go to cannabis-centric retail stores. If I get the idea generally correct, it’s that once the cannabis oils are mixed with the lotions, they’re no longer abusable, and you can’t bring them out and smoke them. It really creates a different kind of product that should be regulated in a different way. Whey don’t you break it down for us so that we understand the changes that are coming?

Ah Warner: Yeah. About 2 years ago I can tell you that I looked at what I needed for the future, and I went to our champion here in the state of Washington, the Senator Kohl-Welles. I went and had a discussion with her, took her some of my products, and she was really excited about the potential of this as a Washington-centric product. I asked a friend of mine, Kari Boiter, who is a political strategist, to help me to craft some legislation that would define that difference between cannabis health and beauty aids and medical-grade topicals.

Medical-grade topicals is a totally separate issue, and that’s not what I’m talking about here. Medical grade topicals are above .3% THC and can be highly-concentrated RSOs that you use topically that could cause intoxication.

What I’m talking about here are less than .3% THC, that are not intoxicating, that you would never ingest. We introduced legislation in January that actually passed and was signed into law on June 30 by Governor Inslee and went into effect on July 1. It’s a-

Shango Los: Wow, that was fast!

Ah Warner: It’s almost unheard of, actually. It was signed into law, so now, anybody here that is making cannabis health and beauty aids, less than .3% THC, can now start conversations with stores like Bartell’s and Whole Foods and Super Supplements because of this legislation.

I just want to say “thank you” to everybody that was involved, Doug Hiatt. Even bigger than defining these products and allowing them to be sold in the mainstream, what it actually is, in fact, is the first chipping away of our Washington State Controlled Substances Act. These products that have marijuana in them have been removed from the Washington CSA even before industrial hemp has been removed from the CSA here in the state of Washington. This is no small deal.

I want to thank the champions on that on the Senate side. I actually had 2 bills. They were companion bills that were moving through at the same time. On the Senate side, Senator Kohl-Welles was my champion. She was able bring Senator Ann Rivers, who’s a Republican, in in the second position on that bill. Then, on the House side for 1753, I recruited House of Representatives Cindy Ryu. Then Republican Matt Shea, who’s also a hemp hero here in the state of Washington, came in as the second on there. It had bipartisan support and had very little opposition, if any.

My question now is, do I go state by state with this type of legislation that is the first of its kind in the country? Or, do I just go, simply, to the federal level at this point? I think that really we need to knock a few more states down before we actually can take it to the federal level. If anybody is encouraged enough to make that happen and to write the legislation and to get champions behind it and to do the lobbying, certainly they can reach out to me, and I will help them to guide them through that process.

Shango Los: I think that’s a real unique part of being a Ganjapreneur that you are modeling so well. For a lot of parts of our industry, you’re just making a product and you’re bringing it to market based on legislation that other people fought for that the entrepreneur may not have fought for themselves, especially if they’ve just come into cannabis from another entirely different industry. In your case, you’re actually having to make the legislative changes that allow your products to even be purchased. That’s like having 2 businesses.

Ah Warner: It really is. Although I’ve been advocating for industrial hemp for 20 years and for medical marijuana for the last, I would say, 3 years, I really consider myself an accidental activist. It really was out of necessity that I see this law created and changed the situation for my business. I loved being a part of the process. Now that I see how easy it is to just find out what you need and put one foot forward, I would encourage anybody to get involved and make that happen.

There’s one small incident that I want to quickly tell you about. It’s about engaging our youth into this process as well. When I went down to Olympia and delivered a Remedy Pain Stick and my Naked Lip Butter to every single office in Olympia, so 150 offices, every House of Representative, every Senate office, the governor’s office, and the lieutenant governor’s office, I took my 15-year old son with me to do this lobbying effort. He got to see what it was like actually talk to these folks to help them to understand what you need. He’s now seeing our efforts in law. It was a pretty phenomenal thing.

Shango Los: It’s good for him to see, but it’s also good for all of us to hear the way that you blended your entrepreneurial spirit with your activism and then actually take an action about it instead of just complained about it. Wow, that’s really great.

Well, Ah, that’s all the time we have today. I profoundly appreciate you joining us today and sharing your deep experience.

Ah Warner: It was a blast. Thank you so much for having me. I’m honored.

Shango Los: You can find more episodes of the Ganjapreneur Podcast in the Podcast section at Ganjapreneur.com. You can also find us on the Cannabis Radio Network website and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news, products reviews, and cannabis jobs updated daily, along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. Thanks as always to Brasco for producing our show. I am your host, Shango Los.

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Attorney General Loretta Lynch Supports Letting States Handle Cannabis Laws

In an interview with NBC’s Chuck Todd last week, Attorney General Loretta Lynch stated that states should have the right to make decisions about legalizing marijuana, but noted that the federal government should play a role in making sure minors stay away from the drug.

“I think states have to make those decisions on their own. They listen to their citizens and they take actions,” said Lynch. “What we have said and what we continue to say is that states have to also have a system designed to, number one, mitigate violence associated with their marijuana industries. And number two, and perhaps most importantly, keep young people, children away from the products.”

Lynch cited the accidental ingestion of marijuana edibles as a top priority for the federal government: “We’re seeing a number of situations where children gain access to products that look like candy or cookies or cakes. The purity is different and they’re becoming very, very ill,” she said.

Lynch also noted that the federal government would continue to intervene in cases where a state that neighbors one that has legalized marijuana is having problems with interstate trafficking: ““We also have concerns — and states have expressed this to me — where a state that has not legalized this particular substance sees people traveling across state lines to obtain it,” she said. “We do still intervene and we will still intervene in those areas.”

When Todd pressed Lynch regarding her stance on whether marijuana should be reclassified under federal law, the attorney general remained opaque. In her confirmation hearing, Lynch had stated that she was personally against the legalization of marijuana:

“I can tell you that not only do I not support legalization of marijuana, it is not the position of the Department of Justice currently to support legalization, nor would it be the position if I were confirmed as attorney general,” she said then.

Source:

http://www.marijuana.com/blog/news/2015/10/attorney-general-cautiously-supports-letting-states-legalize-marijuana/

Photo Credit: US Department of Education

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David Lampach: Establishing Cannabis Standards and Methodologies

Steep Hill logo

David Lampach is the co-founder and CEO of Steep Hill, which was the first company to offer lab testing services to cannabis growers in 2008. Steep Hill has since become a staple of the cannabis industry with established locations in California, Colorado, Washington, and Nevada. As a pioneer of the standards and methodologies that have developed for scientific cannabis analysis, Steep Hill has managed to adapt and grow with the industry as it has developed in different states, demonstrating that legal cannabis presents enormous opportunities for businesses who are able to navigate the risks.

“The half century suppression of cannabis research in the United States has created a research vacuum to which scientific minds are naturally drawn.”

We recently asked David about how he wound up at the helm of the leading cannabis industry testing lab, what obstacles he faced while growing the business, and what advice he has for entrepreneurs and investors who are embarking on their own cannabis ventures. Read the full interview below!

Read the full interview:


Ganjapreneur: What were you doing before you founded Steep Hill?

David Lampach: I was cultivating cannabis under Prop 215 in California. Prior to 2002, I had a job as an equities trader on Wall Street.

As an equities trader, what led to your decision to switch careers and start growing cannabis under Prop 215?

I got tired of the Wall Street grind and living in Manhattan.  Also, markets are very cyclical and it became more difficult to make money with the type of trading that I was doing.  It seemed like a good time to make a change.  Once I got to California I became hooked on the lifestyle and never looked back.

Was there a demand for cannabis testing at the time, or did the medical cannabis industry need to be educated about potency and microbial testing for it to catch on?

There was very little to no demand. We had to educate the public, and we continue to do so to this day. A very low percentage of industry players actually perform contaminants testing to this day. In order for testing to be widely accepted, it needs to be mandated, with real consequences for non-compliance.

Do you think at this point that there is a general consensus in the industry that testing should be mandated, or is it still a contentious issue among growers?

The general consensus of the industry is heavily in favor of more testing.  There are a few hold outs from the “Cannabis never hurt anyone” camp who still believe that there should be no oversight or testing, but they are a dying breed.

What expertise did you draw on to develop the testing methods used by Steep Hill?

Living in the Bay Area provided me access to some really smart and exceptionally talented technical people who believed in what we were trying to accomplish. We leveraged their interest and resources to move the ball forward aggressively. We were very lucky to draw on this talent to accomplish our goals.

Is the idea of developing testing & research standards for cannabis particularly attractive to scientists because it represents a field that has been unexplored by the mainstream scientific community, and thus is likely to lead to new discoveries and breakthroughs?

Definitely.  The half century suppression of cannabis research in the United States has created a research vacuum to which scientific minds are naturally
drawn.

What was one of the greatest obstacles you faced while growing the business?

HR issues stemming from the cannabis industry in particular. As the industry grows, there is a greater need for a high level of professionalism. It has been a challenge for many people in the industry to evolve with this need, which at times creates internal issues for companies.

Very interesting — does this mean that perhaps the transition from cannabis as a fringe industry to a mainstream industry is particularly difficult for the companies who have been around the longest? How do you think companies that originated early in what many would call the “grey market” can work to keep up with all of the start-ups entering the space?

The transition can be difficult for a number of reasons.  I do believe it can be harder for older companies to bridge the gap, especially if the original founders or key employees are unable to make the transition.  Early cannabis companies need to bring in professionals who are more capable of navigating the normal business culture.

How many people do you currently employ?

About 30.

How do you select your employees? Is experience with cannabis more important than traditional professional experience, are they about even in
value, or is it the other way around?

We look for people with a professional mindset, who are hard workers and willing to do whatever it takes.  Traditional professional experience is more important at this juncture, but Steep Hill has a vast wealth of cannabis industry knowledge which heavily offsets any knowledge gap that new industry participants would have.

Where do you think the legalization movement will be in five years?

Based on the recent acceleration in mainstream acceptance of medical and recreational cannabis, I expect Federal reclassification of cannabis under the controlled substances act within the next 5 to 8 years. How far this goes will depend on a number of variables, but the current is strongly headed in that direction.

What is one piece of advice you would offer to an aspiring ganjapreneur?

When you are raising capital, don’t get hooked on valuation.  Focus on building value.  A small piece of a big pie is better than 100% of a small or non-existent pie.  Look for win-win relationships.  Leave something on the table for your partners.


Thank you for sharing your insights and experience, David!

For more information about Steep Hill Halent, visit their website. Questions or comments? Post them below!

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Entrepreneur Builds Successful Business Selling Custom Dirt to Marijuana Growers

The innovator and entrepreneur behind BuildASoil.com, a company that curates natural ingredients from around the world to produce nutrient-rich soils that cannabis growers can use to grow sustainably, was recently interviewed on the Ganjapreneur podcast.

Jeremy Silva joined podcast host Shango Los to discuss the origins of BuildASoil and to share his experiences growing the company from the ground up. The interview covers subjects such as basic gardening sciences and strategies, why Jeremy doesn’t believe the usual conflict between profitability and sustainability applies to his particular business model, and what it takes for an entrepreneur to knuckle down and turn an innovative idea into a functional business.

“If you give value, people will support you regardless,” explained Jeremy. “To me, that’s all our company is about.”

The podcast is available on iTunes or through the Ganjapreneur website, where written transcripts of this and previous podcast episodes are also available.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices which aggregates daily cannabis industry news, business profiles, and other information. For more information about Ganjapreneur, visit http://www.ganjapreneur.com.

Source:

http://www.prweb.com/releases/2015/09/prweb12989827.htm

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Retail Recreational Marijuana Available Today In Oregon

Recreational marijuana hits the shelves today in Oregon, making October 1st a big day for both marijuana advocates and critics of the new law.

Mark Katches, the editor of the Oregonian, wrote: “You may never want to buy it, sell it, grow it, or smoke it. But there’s no escaping the fact that legal marijuana will impact all of us – whether it’s a proliferation of new shops sprouting up in our communities, the potential impact on neighborhood safety or the way drug testing is managed in the places we work.”

More than 200 dispensaries have told the state they plan on selling recreational bud. You can find a map of them all here, though not all will necessarily be selling cannabis on Thursday.

If you do plan on shopping, remember that you need to bring a government-issued ID and have cash on hand — pot shops aren’t taking cards yet.

Source:

http://www.oregonlive.com/marijuana/index.ssf/2015/09/at_midnight_marijuana_is_legal.html

Photo Credit: Théo

 

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South Dakota Tribe to Open Marijuana Resort

The Santee Sioux Native American tribe plans to open a marijuana resort on its South Dakota reservation. The Santee Sioux are the latest in a line of tribes seeking to take advantage of a new federal law allowing for the cultivation, production and sale of cannabis on tribal land.

Santee leaders aim to grow marijuana and then sell it in a smoking lounge. In addition to smoking pot, customers will have access to a nightclub, arcade games, bar and food service, slot machines, and even an outdoor music venue.

“We want it to be an adult playground,” said tribal President Anthony Reider. “There’s nowhere else in America that has something like this.”

The resort is set to open on New Year’s eve, and could generate some $2 million in profit for the tribe.

Seeking to get the cultivation and production process right, the Santee Sioux hired the Denver-based firm Monarch America to help them with the basics.

“This is not a fly-by-night operation,” said Jonathan Hunt, Monarch’s vice president. Santee Sioux leaders “want to show the state how clean, how efficient, how proficient, safe and secure this is as an operation. We are not looking to do anything shady.”

The resort would be the first of its kind in the U.S. Laws against the public consumption of marijuana remain on the books even in states with the recreational sale of pot has been legalized, though activists are seeking to loosen them.

Source:

http://www.cbsnews.com/news/nations-first-marijuana-resort-to-open-in-south-dakota-owned-by-santee-sioux/

Photo Credit: Steven Coutts

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Steve DeAngelo

Steve DeAngelo: The Cannabis Manifesto

As the Executive Director of Harborside Health Center, the largest and most well-known medical cannabis dispensary in the world, as well as the co-founder of Steep Hill, The ArcView Group, and many other cannabis industry titans, Steve DeAngelo needs no introduction. He is a true pioneer of the cannabis legalization movement, and has worked as hard to educate the public about the health benefits of cannabis as anyone else.

Recently, we had the honor of speaking with Steve on the day that his new book, The Cannabis Manifesto, was released. We asked him about the book, as well as his history of activism and his advice for cannabis investors and heritage growers who are looking to build a business in the legal industry.

“Focus on talent. I think that talent is a lot more important than money. I’ve seen cannabis companies who have received pretty significant infusions of cash and not done a whole lot of great things with that cash because they lacked the talent to be able to properly execute on it.”

Listen to the podcast in iTunes, via the media players below, or scroll down to read the full transcript!

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


Listen to the Podcast


Read the Transcript

Shango Los: Hi there and welcome to the Ganjapreneur.com Podcast.  I am your host, Shango Los. The Ganjapreneur.com Podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers, and cannabis medicine researchers all focused on making the most of cannabis normalization. As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark and give you actionable information to improve your business strategy and improve your health and the health of cannabis patients everywhere.

Today my guest is Steve DeAngelo. Steve DeAngelo is a lifelong cannabis activist and entrepreneur with over 40 years teaching and bringing cannabis liberation to the people. He is presently executive director at Harborside Health Center, the country’s premier medical marijuana facility located in San Francisco. He is also founder of Steep Hill, a national cannabis analytics laboratory helping to establish nationwide standards for cannabis medicine. His new book, The Cannabis Manifesto comes out everywhere today. Steve is the gold standard in cannabis activism and entrepreneurism and I dare say, a hero of mine. Welcome Steve.

Steve DeAngelo: Thank you Shango Los, good to be here.

Shango Los: We’re really lucky to speak with you today on the day that your new book, The Cannabis Manifesto comes out. It’s a powerful re-framing of cannabis not as a drug to be regulated but more of an opportunity for health that we’ve been missing for years. What’s the message from the book that you most want people to be aware of?

Steve DeAngelo: I think the message is that cannabis is not a bad plant, it’s a good plant. It’s not a harm that should be tolerated, it’s a benefit that should be actively promoted.

Shango Los: One of the tenets of your book that I really identify with is that everyone is essentially a patient because cannabis holds some sort of health benefit for everybody whether it’s anxiety, acute pain, neurodegeneration, cancer, or simply acne or even boredom. What do you think it will take to transition the common American citizen from being suspicious of the plant to embracing it for all the good it does.

Steve DeAngelo: Two factors, one is education and a lot of the changes we’re seeing now are the result of many decades of education. Then personal contact.  What we’ve seen in California is that now that we’re 20 years into legal medical cannabis, almost everybody in the state has a friend, a relative, knows somebody who has used cannabis therapeutically and had very good effects. That’s really the key in changing people’s minds is when a trusted messenger brings them the message. When they see it for themselves and then they really begin ready to start shedding the stereotype.

Shango Los: To what degree to you think that the progress of people learning about cannabis as medicine has been slowed since it’s a schedule I drug here and a lot of the research has not been done in the United States? To what degree do you think that it’s a schedule I drug hinders people believing that it can truly be medicine?

Steve DeAngelo: I think the schedule I status has hindered research because under federal law all of the research that has been conducted with federal dollars has been aimed at showing the harms of cannabis and they haven’t even researched benefits of cannabis so schedule I is critically important there. I think it’s also important in public perception when you have the most trusted authorities in the country saying that something has absolutely no medical use, there are a lot of people who are going to believe them.  

Shango Los: One of the things that I really appreciate about your book is you approach it from a real human perspective. Certainly you talk about the laws and the implications of the entrepreneurial aspects of it but you really treat it as a human and a plant, more of a Gaia approach if you’d allow that. What has been your experience over the years with the difference between people approaching the plant as a healing herb versus a marketable product.

Steve DeAngelo: Where I would really I think draw the distinction is between people who see cannabis as more of an intoxicant as a sin industry more akin to alcohol or gaming or even porn and people like myself who believe that cannabis is a wellness product, that it should be marketed, and that it should be regulated as a wellness product. This plays out in some very specific policy positions. One of the things that we’ve seen in many of the reform states is extremely high taxes on cannabis. One of the justifications for those high taxes has been to discourage cannabis consumption by young people and by people who have lower incomes and I don’t think that’s something we want to do. I think in fact, when you take a look at the public health statistics that are coming out, they show for example a 25% reduction in opioid overdose deaths in states that have made access to cannabis more available. The last thing you want to do is burden this very, very good plant with a heavy tax burden and encourage people to use pharmaceuticals or alcohol instead of cannabis.

Shango Los: I definitely think that that’s part of the image that we need to overcome because people who are not familiar with cannabis medicine they just imagine someone smoking a joint but in most cases the proper application of the cannabis plant is going to be at subpsychoactive doses to take care of the body, not necessarily to get high. I think the placing of a sin tax on it at the state level I think is part of that.

Steve DeAngelo: Yeah, sure it certainly is and when we talk about wellness, I think that it’s important to understand that it’s not limited at least in my mind to things like cancer or Alzheimer’s or epilepsy or even anxiety, depression, and insomnia. Wellness certainly includes those things but I believe there is a great number of what I called overlooked wellness benefits that often described by people as just getting high and that includes things like extending your sense of patience, waking up your sense of play, sparking your creativity, enhancing the sound of music or the taste of a meal or the touch of your lover’s skin or opening you to a more spiritual experience or putting you in closer touch with nature. Those are not intoxication experiences, that’s not just getting high. We’re talking about some of the most meaningful, precious parts of our lives that are enhanced by cannabis. I think that that’s really the main distinction in approach.

Shango Los: I like the way that you describe it because in that way it sounds like the benefits of mindfulness or meditation as it is about getting trashed like some people approach it.

Steve DeAngelo: If you look up intoxication in the dictionary, you’ll read a definition that says something like to drink or eat something that causes you to lose control over what you say and do. Cannabis doesn’t cause people to lose control over what they say and do and anybody who has consumed cannabis knows that very well. I think that once I talk to people and explain this concept, there are a lot of people who realize that their own cannabis use, they’re mischaracterizing their own cannabis use. I often have people who will come up to me at an event and they will say something like, you know Steve I totally support everything that you’re doing to get medicine to the patients who need and me, myself I’ve been using cannabis for years but I’m not a patient. I wouldn’t get sick if I stopped using it, I wouldn’t go the hospital. I usually ask those people a few questions about their cannabis use. When do you consume cannabis? Why? What benefits does it bring you and how is your life different when you use cannabis from when you don’t?

I usually get a reply that goes something like this: When I’m not using cannabis, I get off work at the end of the day, I’m stressed out, I might be irritated at a fight with my boss or frustrated because I didn’t get as much work done as I wanted to do, my stomach is kind of sour, my back is hurting, I’m feeling kind of testy, I’m not really looking forward to getting home and dealing with my kids and telling my wife about the lousy day I had. I’m not particularly hungry and when I get home I eat the meal but I don’t really enjoy it that much and after the meal I sit down in front of the TV and I pass out in front of the TV and stagger into my wife in the middle of the night and wake up in the morning kind of bleary-eyed and not too happy.

But with cannabis at the end of the day, I’m not testy, my stomach is not sour, I’m not impatient, I’m really looking forward to getting home. I’ve got a great appetite. When I get there, I enjoy playing with the kids as much as they play with me and no matter how bad the day has been, I enjoy telling my wife about and reuniting with her. The food tastes wonderful, my back doesn’t ache, and after the meal me and the wife put the kids to bed and we have a little special intimate time because of the cannabis. I fall asleep in her arms and wake up the next day ready to go for a new day.

If that person had gone to a doctor and talked about an aching back, about a sour stomach, about not much of a sex drive, about being anxious, about being testy, about not sleeping very well, they would be diagnosed with a whole range of disorders including Insomnia, anxiety, depression, anger management issues, arthritis, acid reflex, low testosterone and would be prescribed a whole raft of pharmaceuticals. We see TV ads for these pharmaceuticals every night. They’ve got a list of side effect that read like something out of a Steven King novel.

Shango Los: We need to take a short break there Steve. I really appreciate that holistic view. Actually, that environment that you’re describing sounds like such a warm and healing place to be at the end of every day. Let’s pick that up after the break. We’re going to take this short break and be right back. You’re listening to the Ganjapreneur.com podcast.

Welcome back, you are listening to the Ganjapreneur.com podcast. I’m your host Shango Los and our guest this week is cannabis entrepreneur, activist, and author, Steve DeAngelo. Steve, before the break we were talking the best ways that people can integrate cannabis into their lives and in the early days though, there was a lot of push back and your first major cannabis event was a smoke in that took place in Washington, DC that you put together. In those days, did you see the activism as a precursor of going forward into the cannabis business or could no one really see beyond just trying to get the plant liberated?

Steve DeAngelo: I think that for me cannabis entrepreneurship and cannabis activism have always been contemporaneous activities. Back in my days as a yippie when we were putting on the smoke-ins, we financed the smoke-ins by selling small amount of cannabis. It was always clear to me that there was a phenomenal amount of commercial potential but it was also clear to me that the only way that that would every be unleashed is if we change the law.

Shango Los: There’s a really fine line there between seeing yourself solely has a cannabis activist and then being a cannabis entrepreneur. Talking with entrepreneurs as I do now, I see a lot of folks being pulled in different ways from the feelings that they had when they were an activist versus how they’re now feeling as an entrepreneur and concerned with margins and making sure that they can pay their rent and their employees when at the same time, they just want to give cannabis oil away to cancer patients because that’s where their heart remained as an activist. I’m sure that you’ve run into this dozens and dozens of times. What kind of advice would you offer to activists who now see themselves moving into more of an entrepreneurial role in their community where they can respect where they came from?

Steve DeAngelo: It is a simple thing but a difficult thing. What we need to do is build operations which simultaneously generate profits for our shareholders and return social benefits to the communities that we’re a part of. I believe that it’s possible to do that with Harborside, which even though we are technically a nonprofit under law, we are a profit making organization and that’s what needs to be done. It’s an extraordinarily difficult thing to do and one of the things that we’re finding in California is that as the competitive intensity of the industry heats up, there’s been generally a trimming back of a lot of the social benefits that a lot of the nonprofit dispensaries have been able to provide.

Shango Los: Yeah, we’ve experienced that here in Washington where we’re recording from and one of the challenges that some folks have is that if they’ve come up through the prohibition era times, they are holding on very strongly to their activism but as the industry becomes more business oriented, there are a lot of folks who were entrepreneurs in other industries who are moving over into cannabis and some folks are calling them carpetbaggers and other less than positive words. But your work with the ArcView group is taking a different approach. Your approach is to embrace all sorts of folks, both the activist and the folks who are bringing their expertise and capital to the business. What kind of advice can you give for folks who have come up through the activist side in interacting with people who are more comfortable thinking about business and profit and loss sheets than having spent the time taking part in cannabis activism?

Steve DeAngelo: We need to keep in mind that nothing is mainstream in America until it’s in the mainstream of commerce. We cannot have legal cannabis in this country unless we have business people involved in producing it and distributing it. It’s the way that the country works. I certainly have some mixed feelings when I see folks coming into the cannabis industry who maybe have never used cannabis in their lives who proudly say that they never would use cannabis in their lives, who may have approaches and values and ethics that are different from my own. But I also recognize that if we really want this plant to be legal, we have to allow the engine of free enterprise to do its work and that means there are going to be a lot of different competing business models and a lot of competing brands.

My suggestion to people who come from an activist background is that you develop brands and you develop business models that reflect those values. I think that there will be many, many, many people in the consumer marketplace for cannabis who are going to be attracted to that kind of authenticity. There will also be plenty of other new consumers who are coming in who are attracted to other kinds of brands. I think there is going to be plenty of room for both of them.

Shango Los: One of the things that activists who do want to go into business find that they like about these newly added capitalists is that they bring with them this infusion of money so maybe they need startup capital or they need growth capital or something like that. One of the unique things about you started Harborside though is that you started Harborside with very little original investment and then you did not need to take any growth capital. What kind of suggestions would you give to someone in a state that is moving towards normalization to help them build them business without either having to take large cash infusions and giving up a lot of equity in their company or feeling like they have to give up because they just don’t have enough money?

Steve DeAngelo: My suggestion is that they focus on talent. I think that talent is a lot more important than money. I’ve seen cannabis companies who have received pretty significant infusions of cash and not done a whole lot of great things with that cash because they lacked the talent to be able to properly execute on it. I think that the very first and most important thing is talent. When I look at the new folks who come from a more traditional business background who are coming into the industry, the thing that excites me isn’t the money that they’re bringing with them, it’s that they know how to do all of these things that I don’t know how to do. I’ve been focusing on cannabis for 30 or 40 years. I haven’t been focusing on investor relations or fundraising strategies or systems. Having these folks coming in I think is hugely helpful. The new talent that is coming into the industry needs to be educated and the smartest new talent that’s coming in is acutely aware of that.

My best advice to the legacy cannabis businesses is that you identify some really talented, high talented people from traditional business backgrounds and then you form an alliance where there’s an interchange of information and teaching where they can teach you more about modern business techniques and strategies and tools and resources and you can teach them about cannabis.

Shango Los: A lot of these new cannabis companies because they’re being started on a bootstrap and sometimes they’re being started by folks who don’t have much business background, they don’t really have an HR department yet. You’ve got whoever the principle is going ahead and doing the initial hiring themselves, which they may not be all too comfortable with. There are a lot of folks who are applying for jobs who are just excited about getting into cannabis but they may or may not have the skill set to back that up and sometimes they have the skill set but maybe their fantasy of what it’s going to look like to be in cannabis is more than their work ethic. You’ve obviously hired a lot of people. What would you say as an advice to someone who is hiring for their own cannabis business to kind of wade through the deluge of talent that’s offered to you to find the particular people that are going to best for their companies?

Steve DeAngelo: Hire an HR professional to help you with that. This is not something you should take on yourself. Most people who come from a legacy cannabis background of necessity have had to remain rather small in order to survive. We have not had a great deal of experience in hiring large numbers of people. Each hire is critically important, especially to a small company and a new company. One bad hire can really set you back. What I found is most effective in hiring is to look at a lot of different candidates, to review them, to rigorously check out their references and then to have an interview process which includes actually assigning them tasks and seeing how each one of the candidates performs with those tasks. What I’m describing is a time consuming process. It’s really best conducted with the help of a qualified HR professional. I’d say that the cost that is expended would be well worth the return.

Shango Los: That’s some great advice. We’re going to take another short break and be right back. Your are listening to the Ganjapreneur.com podcast.

Welcome back. You are listening to the ganjapreneur.com podcast. I am your host, Shango Los and our guest this week is cannabis entrepreneur, activist, and author, Steve DeAngelo. Before the break we were talking about the best ways to implement policies and a new cannabis business wherever you live in the country but Steve specifically, you live in California and there have been some huge changes in your local California cannabis regulations recently. How are they affecting our business and how do you see they are going to evolve over the next few months?

Steve DeAngelo: The California legislature, finally 20 years after the voters instructed them to do it in Proposition 215, has passed regulations for medical cannabis. We will finally have state level licensing for medical cannabis businesses in California. That’s the good news. The bad news is those regulations in essence make success in the medical cannabis industry in California illegal. As they are currently written, you cannot operate more than three dispensaries if you have any type of vertical integration. there’s a mandatory level for distributors, a lot of issues in this legislation. We are hoping that the legislature takes a second look at it and puts some fixes in next session.

Shango Los: We speak with a lot of folks from Humboldt County and other folks that would consider themselves artisan growers versus big more I guess I’d call commercial warehouse growers. How do you see these new group of regulations affecting smaller mom and pop growers? Do you think they’ll be a way to integrate them effectively into the overall?

Steve DeAngelo: The new regulations require that all cannabis cultivators sell their product only to a distributor and not to anybody else. They make it impossible for small growers to do a farm-to-table operation, for there to be farmer’s markets, for there to be bud and breakfasts, for there to be a weed ranch type of model. I think that it’s a real step backwards for our small growers.

Shango Los: I think that’s a good point too that the impact that the legislative actions have on individual business. We’re not really in an industry where you can simply run your business and ignore what is going on in the legislature because the regulations are changing so quickly. In your experience, what’s a good approach for an entrepreneur who is looking at their business and how to make it better and they kind of want to keep their head down but at the same time they need to remain aware and participate in the legislature? Do you have any advice for entrepreneurs who are trying to live both?

Steve DeAngelo: Sure, look there’s always a problem for businesses to become politically active when it’s one individual business. Problem one, political work costs a lot of money and no individual business can really fund it. Problem two, you’re putting yourself out there and whenever you articulate a political position, there will be people who are opposed and then your business specifically becomes a target for them. The solution to both of those problems is to support organizations like the National Cannabis Industries Association or one of their state affiliates who can really represent the common interests of the industry at large in these legislative processes.

Shango Los: In your new book The Cannabis Manifesto that comes out today, you really talk a lot about opening up the doors for common everyday people who don’t really have much of a history with cannabis to feel comfortable with it and to a certain degree, there is a certain amount of activism that creates for a normal person because first they have to go out and find out about cannabis and learn about what it can do for them. Then if they live in a state that cannabis has not been normalized yet in, they’re going to have to take some action with the legislature to make that medicine available in their state. What do you recommend for the normal person, the everyday American citizen, actions that they can take to help normalization along where they live.

Steve DeAngelo: The most powerful thing that you can do is pay a person to person visit to all of your elected representatives. That includes your city council, your county board of supervisors, your congressperson, and your senator if you can get an appointment. One constituent meeting with an elected official has more impact than almost anything that you can do. I strongly encourage people who have not met their elected representatives to do that. It’s very easy. You just call up their office, say that you’re a constituent and you’d like to meet with the representative and almost always a meeting will be set up for you. The second thing that you can do to back that up is write some campaign donations to those candidates. That will give you the ability to call them up between elections and ask how things are going on your issue. Just that basic level of engagement, register to vote, know who your elected representatives are, write a few campaign donations to them, and make sure that they understand how you care about this issue. If every American who was in favor of cannabis reform did that, we would have the laws changed tomorrow.

Shango Los: Steven, thank so much for being on the show, especially today with how busy you are with your book launch. It’s been a real honor to have you on the show.

Steve DeAngelo: It’s been an honor to be here, thank you so much.

Shango Los: Steve DeAngelo is executive director of Harborside Health Center in San Francisco and co-founder of both Steep Hill Cannabis Analytics and the ArcView Cannabis Investment Group. His new book, The Cannabis Manifesto is required reading for all cannabis enthusiasts and all humans who want to feel well. You can find more episodes of the Ganjapreneur podcast in the podcast section at ganjapreneur.com. You can also find us on the Cannabis Radio Network website and in the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news, product reviews, and cannabis jobs updated daily along with transcriptions of this podcast. You can also download the Ganjapreneur.com. App in iTunes and Google Play. We’re also thrilled to announce this week that you can now find our show on the I Heart Radio Network app bringing Ganjapreneur to 60 million mobile devices. Thanks to Brasco for producing our show. I am your host, Shango Los.

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New FBI Data Shows Uptick In Marijuana Possession Arrests

Though significant progress has been made in turning the cultural tide regarding marijuana, new statistics released by the FBI this week show that the work is long from finished.

Law enforcement made more than 700,000 cannabis-related arrests in 2014, of which 88.4 percent were just for marijuana possession. That’s one U.S. citizen arrested for marijuana every 51 seconds, for the entirety of 2014.

Arrests made for marijuana possession alone had been on the decline since a high of 775,137 in 2007. The 2014 figure represents a small uptick, though, from the 609,570 arrests in 2013.

Tom Angell, chairman of the drug policy reform group Marijuana Majority, said that the new figures show that law enforcement priorities are diverging from the rest of the country’s:

“It’s unacceptable that police still put this many people in handcuffs for something that a growing majority of Americans think should be legal,” he said. “A record number of states are expected to vote on legalizing marijuana next year, so we hope and expect to see these numbers significantly dropping soon.”

Angell also noted that while marijuana arrests have gone up, the number of solved violent crime cases is at an historic low — one third of murder cases in 2013 have yet to be solved.

“There’s just no good reason that so much police time and taxpayer money is spent punishing people for marijuana when so many murders, rapes and robberies go unsolved,” said Angell.

Kevin Sabet, president of Smart Approaches to Marijuana, an anti-legalization group, argues that the uptick in arrests is a natural outgrowth of legalization, and doesn’t mean that more people are being put in jail for marijuana use.

“Those getting arrest violations are usually people who are using out in public, being pulled over for driving and using, etc.,” he said. “What alcohol legalization teaches us is that by simply legalizing a drug we are not guaranteeing fewer arrests — indeed in the case of alcohol we have more arrests than ever.”

Regardless, even minor offenses cost taxpayer money. “These numbers refute the myth that nobody actually gets arrested for using marijuana,” said Mason Tvert, director of communications for the Marijuana Policy Project. “As long as we have these silly laws on the books, law enforcement resources will be wasted on enforcing them. It’s time for state officials to step up and end the outdated policy of marijuana prohibition.”

Source:

http://www.huffingtonpost.com/entry/marijuana-arrests-2014_560978a7e4b0768126fe6506

Photo Credit: Tony Webster

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Harborside Health Center Opening Portland Location

Harborside Health Center, the owner of the largest cannabis dispensary in the US, has announced that it is opening a new location in Portland, OR.

The new location will open at at 5816 NE Portland Hwy, not far from the Portland International Airport, on October 1st.

Harborside’s website lays out its mission for its new Portland location:

– Create an extraordinary environment of honesty and friendliness.
– Help every individual person who comes through our doors feel cared for and respected.
– Honor the trust provided by our fellow citizens by faithfully observing and enforcing the laws of Portland.
– Protect the safety, tranquility, and cleanliness of our neighborhood.
– Provide a safe and affordable alternative to the dangerous illegal drug market.

In addition to its new Portland shop, Harborside has locations in Oakland and San Jose, and recently obtained the sole dispensary license in San Leandro, CA.

Sources:

http://www.harborsidehealthcenter.com/Portland/

http://www.theweedblog.com/worlds-largest-medical-cannabis-dispensary-is-opening-new-location-in-oregon-oct-1st/

Photo Credit: Spot Us

 

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Bill Would Prevent Students With Marijuana Offenses From Losing Financial Aid

In 1998, the then-newly released version of the Higher Education Act tied marijuana convictions to an automatic loss of federal financial aid for college students. Students caught smoking pot could have their aid suspended for anywhere from a year to forever.

The penalty has since been scaled back, and no longer applies to past convictions. But the law still unfairly penalizes underprivileged students caught with marijuana by stripping them of educational access.

A new bill, introduced by Rep. Earl Blumenauer (D-OR), would uncouple this penalty from misdemeanor marijuana offenses.

In a statement on the House floor, Blumenauer said that “It is senseless that we would limit a student’s future for any drug offense for which they have served their sentence, and even more senseless that we would do so for an offense for a drug that a majority believes should be legal.”

Over the years, a coalition of education, civil rights, faith, and drug policy groups have pushed Congress to overturn the policy. Some have argued that the it disproportionately hurts people of color, and note that there is no such penalty for students convicted of crimes such as murder, rape, or robbery.

Blumenauer said the penalty is “outdated,” “unfair,” and that it “traps those seeking to recover from mistakes and create opportunities for themselves.”

“Current policy is inevitably more harmful to those with the greatest need,” he said. “If a student has a misdemeanor marijuana offense but is fully able to afford an education on their own, their future is not limited.”

Source:

http://www.marijuana.com/blog/news/2015/09/bill-would-stop-kicking-kids-out-of-college-for-marijuana/

Photo Credit: Kevin Dooley

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22-Year Long Study Finds Marijuana Has No Effect on Physical or Mental Health

A study published in the Psychology of Addictive Behaviors journal found no long-term health effects associated with marijuana use.

Researchers at the University of Pittsburgh Medical Center and Rutgers University began the study in the late 1980s, and used then-14 year old males drawn from Pittsburgh public schools. Four groups were tracked until 2009 and 2010, when the participants were 36 years old.

The groups were divided as follows:

1. Marijuana non-users (46%)
2. Early chronic users (22%)
3. Late-adolescent users who continued use (21%)
4. Adolescence-only users (11%)

The study found no statistical change in physical or mental health among any of the four groups between the beginning and end of the research period. Even without controlling for other factors, chronic users did not have a worse health prognosis than individuals in the other groups.

The researchers noted that the study does not have the final word on marijuana’s long-term effects, and that more research needs to be done regarding cannabis’s intellectual and cognitive effects.

Source:

http://www.fool.com/investing/general/2015/09/13/findings-from-a-long-term-study-on-marijuana-use-u.aspx?source=eogyholnk0000001

Photo Credit: ashton

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Unions Partnering Up with Cannabis in Washington State

A labor union is defined as “an organization of workers formed for the purpose of advancing its members’ interests in respect to wages, benefits, and working conditions.”

Cannabis Workers Rising (CWR) is a wing of the United Food and Commercial Workers (UFCW) involved in the cannabis industry across six states and the District of Columbia. Their website explains that the CWR is primarily involved with dispensaries, coffee shops, bakeries, patient identification centers, hydroponics stores, and growing and training facilities. Some ganjaprenuers in Washington State are now turning to the CWR to help legitimize this once-illegal sector of our economy.

The UFCW has three recruiters working in Washington state. According to Nathe Lawver, Communications Director for the UFCW Local 367, there are “a couple dozen” members, mostly in the medical marijuana sector, in the organization’s Tacoma-based branch. Cannabis Workers Rising also has several contracts awaiting approval. Nathe says the UFCW is a good fit for the cannabis industry because, “The United Food and Commercial Workers have a rich history in the retail and processing industry. We stand together with hard working women and men of the cannabis industry to help make their work safe and help build a better future for themselves and their families.”

He points out an added benefit to organizing with the Union:  “We have deep relationships across the state and in local communities that make us a familiar face to elected officials. We utilize this relationship to humanize the cannabis industry, and lobby for better cannabis regulations in Washington State.”

This sentiment is also expressed by some regulators in Washington State, as well. The mayor of Tacoma recently told the News Tribune that a cannabis business unionization would help add to their legitimacy in the community. Although not everyone agrees with unions, we will have to wait and see what role Cannabis Workers Rising may play in the future of Washington’s blossoming, newest industry.

Photo Credit: Mark

 

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Things Oregonians Should Know Before October 1st

Last November Oregon voters approved Measure 91, legalizing the sale and use of recreational marijuana. But rolling out such an initiative to the public takes time and bureaucracy — so legal recreational marijuana isn’t going to go up for sale in retail outlets right away.

So what does Measure 91 mean for Oregonians and visitors to Oregon? We’ve assembled a quick overview of everything you need to know about legal, recreational marijuana in Oregon so you can get high safely and legally.

The basics

To legally consume marijuana in Oregon, you must be 21 years old or older.

Like other controlled substances, Measure 91 has placed some restrictions on the use of marijuana. Smoking or eating cannabis in public is prohibited by the measure. Examples of public places include:

– Public streets
– Restaurant and bar patios
– Parks and playgrounds
– Common use areas in apartment buildings and hotels (like hallways and lobbies)
– Essentially, anywhere someone not inside your house can see you

Measure 91 also prohibits driving under the influence of marijuana. Like those caught driving under the influence of alcohol or other substances, violators will receive a DUI.

Where can you buy legal marijuana in Oregon?

Although the goal is to eventually make marijuana available through retail stores, the OLCC (Oregon Liquor Control Commission) doesn’t begin accepting applications for growers, wholesalers, processors and retail outlets until January 4, 2016.

What does this mean for you?

Due to the delay in licensing, retail outlets likely won’t open until mid-2016. But beginning October 1, 2015, you’ll still be able to buy legal, recreational weed from licensed medical dispensaries.

What can you buy, and how much?

Starting on October 1, you’ll be able to buy up to one quarter of an ounce of marijuana flower from existing medical marijuana dispensaries, until retail outlets open and begin selling products sometime next year.

In the meantime, it is now also legal to give away cannabis, so anyone with a medical marijuana card can share buds, seeds, and plants at will to those over 21.

Currently, edibles are not yet available for legal purchase, but will become available through retail stores in 2016. Until then, you’ll have to just make your own marijuana edibles, or share with others.

Concentrates and extracts also will not be available until retail locations open in 2016.

How much can you have?

A few provisions of Measure 91 already went into effect on July 1, 2015. In Oregon, the following are all now legal:

– Possessing up to eight ounces of usable marijuana in your home.
– Carrying up to one ounce on your person.
– Smoking or consuming marijuana on private property or in your home.

Additionally, Oregonians are now allowed to grow up to four cannabis plants on their own property, as long as they are not visible from outside their home.

How much will it cost?

Pot won’t be taxed until January 4, 2016, so until then, you’ll avoid up to a 25% sales tax on your marijuana purchases. Measure 91 originally stipulated a flat tax on marijuana harvests, but the Oregon legislature determined sales tax was easier to levy, and protected the tax-free sale of medical marijuana.

Benefits to the medical marijuana industry

Measure 91 also comes outfitted with some benefits to those using medical marijuana. Now healthcare providers caring for people with a “debilitating medical condition” may provide medical marijuana patients with their medication, where they had previously been restricted. In addition, hospitals can no longer deny patients transplants solely because they use medical marijuana.

And remember, it’s already legal to use the marijuana you have now, as long as you don’t sell it or buy it. So stay safe until October 1st!

Photo Credit: Oregon Department of Transportation

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Medical Marijuana Company offers Transdermal Skin Patch Nationally

Graham Sorkin, Director of Communications and Business Development for the Colorado-based medical marijuana company Mary’s Medicinals, was interviewed recently on the Ganjapreneur podcast.

Best known for their Transdermal Cannabis Patch, Mary’s Medicinals has crafted their brand as a reflection of early American apothecaries that found medicinal solutions in nature. They are currently offering their medical products in multiple states, as well as a line of CBD products that are available nationwide.

In the interview, Graham and podcast host Shango Los discuss how the Mary’s Medicinals’ product development pipeline works, how they have laid the foundation to build a national cannabis brand, and how they are working to protect their intellectual property as they pioneer new products.

“We’ve created a brand that is exceptionally broad and we’ve found that it really transcends a lot of typical cannabis industry demographics,” Graham explained. “We reach seniors, soccer moms, hipsters, military veterans and everybody in between.”

“We’re just applying established pharmaceutical best practices to the delivery of cannabis medicine,” he said.

The podcast is available for download via iTunes, and a transcript of the interview is available at Ganjapreneur.com.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices which aggregates daily cannabis industry news, business profiles, and other information. For more information about Ganjapreneur, visit http://www.ganjapreneur.com.

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Wild Minnesota Hemp Harvested for First Time in 60 Years

Researchers at the University of Minnesota legally harvested Minnesota hemp for the first time in more than 60 years this week.

Under the Industrial Hemp Development Act of 2015, researchers are allowed to collect wild hemp for research purposes.

Dr. George Weiblen and Jonathan Wenger have studied hemp for more than ten years, but “until now, we have not been able to collect wild cannabis seed in the United States,” Weiblen said. “Our previous work has been based on seeds that we imported from the Netherlands and Canada.”

“Our aim is to breed and create new varieties in the hope that a domestic hemp industry might be reborn in the United States,” he continued.

Currently, Minnesota hemp cannot legally be used in any products, though laws across the country are undergoing a sea change.

“We see the market trending in this direction,” Weiblen said. “Many states, nearly half, have passed hemp legislation in the last decade.”

Source:

http://kstp.com/article/stories/s3915288.shtml

Photo Credit: Miran Rijavec

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Colorado Tax Revenues Set to Reach $125 Million in 2015

Colorado pot tax revenues may have fallen short of expectations in 2014, but things have certainly turned around this year.

The state is likely to double its tax revenues this year: after collecting just $44 million last year, the projected 2015 windfall is $125 million.

The state had hoped to make $70 million last year, but it looks as though this year will more than make up for the difference.

Financial data released last week also showed that Colorado made significantly more tax money from marijuana ($70 million) than from alcohol ($42 million) between July 2014 to June 2015.

The president of the Colorado Cannabis Chamber of Commerce, Tyler Henson, stated that the increase in marijuana sales this year is likely due to “more and more people [becoming] comfortable with the legalization of marijuana.”

Source:

http://www.huffingtonpost.com/entry/colorado-marijuana-tax-revenue-2015_560053c4e4b00310edf806d3

Photo Credit: ND Strupler

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Snoop Dogg Breaking Into Marijuana Media Business

Snoop Dogg has announced that he’s getting into the marijuana media business as the co-founder of a new pop culture website, Merry Jane.

The site is set to launch in October, but beta access is available to 420 people per day — all you have to do is sign up at the site.

It’s unclear exactly what kind of content Merry Jane will produce, but it’s sure to cannabis-centered.

“I wanted to create a platform that will take this [pro-marijuana] movement further by creating a destination where people could find fresh content,” sad Snoop. “Merry Jane is a game-changing platform for pop culture.”

In a press release, the founders noted that “the platform also includes an easily digestible, aesthetically pleasing overview of cannabis products and a location mapping service for dispensaries, which will seamlessly integrate into the variety of content.”

Snoop co-founded the site with Ted Chung, a music industry marketing veteran who has worked with Snoop since 1999.

Source:

http://mashable.com/2015/09/21/snoop-dogg-merry-jane/#rCokvvRUOZqE

Photo Credit: Grant Stantiall

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Jeremy Silva

Jeremy Silva: Creating Custom Cannabis Soils

logoJeremy Silva is the founder of BuildASoil.com, a website that offers handmade, small-batch custom soils to growers. In this podcast, Jeremy and our host Shango Los discuss the origins of BuildASoil and how it has grown, why Jeremy isn’t concerned with the supposed conflict between profitability and sustainability, and what it takes to knuckle down and turn a good idea into a functional business.

“If you give value, people will support you regardless.”

Jeremy is an innovator and entrepreneur who is passionate about providing a valuable service and high quality product. BuildASoil curates natural ingredients from around the world to produce nutrient-rich soils that growers can use to grow sustainably, and they are also an advocate of recycling soil to minimize waste.

Listen to the full interview below, or scroll down to read the transcript!

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


Listen to the Podcast


Read the Transcript

Shango Los: Hi there. Welcome to the Ganjapreneur.com podcast. I am your host Shango Los. The Ganjapreneur.com podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers, and cannabis medicine researchers, all focused on making the most of cannabis normalization. As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark and give you actionable information to improve your business strategy, and improve your health and the health of cannabis patients everywhere.

Today my guest is Jeremy Silva, founder of BuildASoil. A handmade, small batch custom soil maker in Montrose, Colorado. He also sells specialty soil inputs online at buildasoil.com. Welcome, Jeremy.

Jeremy Silva: Hey, thanks for having me on today.

Shango Los: Jeremy, this is going to be little different, because sometimes our entrepreneurial guests they build products and they’re talking about importing this from China, or having this special technology adapted from the .com industry or whatever. Your manufacturing process is grounded all on natural ingredients. To give folks a little idea on the kinds of products that you deal with, what are some of the custom inputs that you use in your soil?

Jeremy Silva: That’s a great question. We went around a lot of the typical manufacturing and wholesale outlets and channels that were available. The reason we did that is we didn’t want to pick from the same products that every single gardening store had available. When we started getting into commodities we realized right away that there was not a lot of people doing it. Consequently, pretty much same products everywhere. A couple of the ones that we use that are a little bit more rare would be a product from the Neem tree out of India. We used the crushed up seed called Neem cake or Neem seed cake. There’s also a byproduct that’s an oil that’s made from that. We carry all of that.

Essentially it’s just a really good fertilizers that very sustainably produced and has a number of additional properties that help, besides just fertilizer. A lot of our products, they’re products that were already in demand and they were harder to find. Rather than create a new industry, we put ourselves in front of the demand we already knew was there. That recipe worked really well for us. Besides that, we deal a lot of kelp, shrimp, and crab meals, specialty compost, things like that.

Shango Los: The idea that some of theses products were really hard to find and you are bringing them together in one place so that they can be purchased, that totally begs the question: what’s the relationship like between you and your providers? I’ve worked in different industries before where I was importing rare leaves from Thailand for aquariums. I knew how hard it was to deal with some of these really exotic dealers. They were always running out of product, we had language barriers. What kind of relationships have you had to build with these micro producers so that you could actually have enough in stock to make it worth while?

Jeremy Silva: A lot of stuff, like you talked about, has happened. There are some producers that, for instance we wanted to get a very good worm casting product, or material that’s organic that’s been worked by worms. We went to our local worm guy, and within about two days he had no more product for us. It’s the most he’s ever sold kind of situation. We started looking at that and thought, Okay if we want to scale up this it’s going to be a problem. Right away I found out why it was more popular for businesses to take a synthetic approach, because once the marketing kicks in you can make unlimited product by using chemistry. For us, that was a barrier to entry that excited me as a small business, because I felt like some of the big players might not have as much interest.

In any case, to answer your question more direct, we found a lot of small producers that actually were pretty big producers for other large industries and they just weren’t aware of our niche. That has helped us. There is a large production for a lot of these items. For instance, we carry a malted barley product that we’ve since started using for feeding to our plants with phenomenal results. There’s an entire beer industry that knows everything about malting grains. It was easy for us to tap into. Our advantage is that we’re small, so we can be really nimble. Some of these other companies might hear about the malted barley, they may not get out a product on the market for a couple years, where I’ll have it tomorrow.

Shango Los: Yeah, I can see how when you’re not using synthetics and everything needs to be custom built by hand, either by yourself or by your supplier, that it would slow down refreshing your inventory something seriously. As the primary entrepreneur in the chain to the customer, are you finding that you’re doing a lot of mentoring for your suppliers to help them up their game?

Jeremy Silva: Yes and no. For instance, we’re entering that phase now. This is where we hope to, as a company, we’ve got to scale slowly because quality is at the forefront of a small business like ours and this keeps the word of mouth marketing going, because it just works. From there what we have to do is find producers that are in alignment with or values and teach them how they can produce a business that would have BuildASoil as their number one customer, funding them from day one, as far as at least purchasing their product.

For the first time this year, we have a number of vermicompost producers that are going to start making better products for us, so we don’t keep running out. Down the line I’d like to make every product in-house  by one of our customers that was an entrepreneur. We need cover crops produced, we need more dynamic herbs that can be used as mulch products, and homemade nutrients. There is so much opportunity for growth. What’s nice about that is, like you said, the organic side of it, it makes the logistics a little harder, but as BuildASoil figures that out we can bring a lot of us up with us. It’s pretty exciting.

Shango Los: It’s an extraordinary position to be in, isn’t it? To know that you need a particular input. Let’s just use worm casting as that, since that was the earlier example. You need it and you need a lot of it, you’re reverse engineering the business plan of the folks that are earlier than you in the supply chain. You’re like, “All right, I need worm castings. If you set up a worm casting business, I can probably cause you to be profitable just on my purchases alone before you ever sell to anybody else in Colorado.” People look at you like, “No, that’s too easy.” Yet, if you’re the last person before the consumer and you need that stuff, it’s the truth of the matter. People have a hard time believing that the opportunity can be right there in front of them.

Jeremy Silva: That’s just what happens with any entrepreneur. You can take one of any of 100 ideas, and the problem with a lot of entrepreneurs is they’ll be on a new one next week. Sometimes you’ve just got to take something that you have a little passion in and really go after it and not let any obstacle put you down. A lot of times you have to have a bigger goal than your obstacles so you can see through those hard days.

I’ll tell every single person I meet, “I need this, I need that.” They’ll say, “That’s great, I’ll start a business tomorrow,” I never hear from them again, because when the rubber meets the road, they now have an opportunity to fail if they try. You just can’t be scared of failure. You will sell these organic products, there is a market. It’s just a matter of figuring out how to produce them effectively. What’s really neat is some of the older producers have gotten really comfortable. We can tweak this, we can make them a lot better product. Once we scale it up, it’s game over. There’s so much opportunity for better products in this market, and there’s only a few producers out there. It’s high time.

Shango Los: As a serial entrepreneur myself and somebody who speaks on entrepreneurism a lot, the one thing I consistently hear is people talk about situations being too good to be true. That’s a line that I hear all the time. Yet when you get a situation like that, it is too good to be true, but the damn thing is it’s true.

Jeremy Silva: You also have to be open … exactly. I don’t believe in statements that limit my mind’s ability. I never tell myself it’s too good to be true. Of course that doesn’t mean I’m silly and just jump into things head first with happy ears. Certainly money does grow on trees. Anybody who’s ever grown a plant, ever, and sold it to market knows that. It does not take money to make money. I’ve gone fishing with no bait, caught lots of fish. Here’s the same thing with my business, I had no money, just quit a job, and basically if I would have pitched my business plan to somebody asking for a loan they would have just laughed at me. It didn’t matter because I had the desire to do it. Business takes time, money, effort. You don’t have to have all three though. I had lots of time and I knew right where to put the effort with laser light focus.

Shango Los: I like that quote, “fishing with no bait.” I think there might be a t-shirt in that. We’re going to take a short break and be right back. I’m Shango Los and you are listening to the Ganjapreneur.com podcast, with my guest Jeremy Silva of BuildASoil. We’ll be right back.

Shango Los: Welcome back. You are listening to the Ganjapreneur.com podcast. I’m your host, Shango Los. Our guest this week is Jeremy Silva of BuildASoil. Jeremy, before the break we were talking about what it takes to build a healthy soil and all the various kinds of inputs that you’ll want to put in there. So many growers, both modern and prohibition era growers, are used to throwing away their soil at the end of their cycle. Either throwing it into some unused part of the property, or reusing it into some other non-cannabis plants. I’m learning more and more that it’s not that difficult to reinvigorate this soil and use it again. Tell us a little bit about that. About how to save some money on soil by giving it new life.

Jeremy Silva: This is really at the heart of our business. A lot of the criticism I got when I started BuildASoil, just from people asking questions, they’d say, “Look it, you’re open source, you give away your recipes, you tell people to keep their soil and not throw it away. How is any of this good for BuildASoil? Don’t you want them coming back, buying more? Not teaching them the recipe, keeping it all proprietary?” For me it was the opposite. Everything that I’ve seen lately in the new entrepreneur spirit that I’d like to carry, shows that if you give value, people will support you regardless. To me, that’s all our company is about.

When we talk about soil and reusing it, one of the main things that causes that problem is using the synthetic nutrients that are chemical based. They salt up the soil and they require to be flushed and all these other things. When you do that all the time, it makes the soil so it is harder to reuse. It’s also more of just a holding medium for the roots than really a soil. Most of the potting soils on the market could really be considered hydroponic, in the sense that there’s not actually mineral clay compost. It’s mostly just peat moss and some sort of perlite. That might be getting a little technical.

Ultimately, what that means is that by introducing a better product we could show people how when they stop using the chemical fertilizers, there’s now no longer a reason to throw the soil away. Then they can reuse it and all they have to do is, obviously they’re taking biomass out, that’ll deplete the soil. We utilize techniques where within nature we can add more without it hurting the plant. We’re always adding an abundance of all the right stuff, and reinvigorating the soil so it can be reused. Where when you’re using chemistry you’ve got to be really precise. You can’t just give it extra or you’ll hurt the plant. Ultimately I found that when working with nature that it’s just a lot more forgiveness. So have our customers.  Really helping out with the business model.

Shango Los: Let’s get a little more nitty gritty on that. Let’s say that I am a grower and I’ve cropped, I’m pulling the root balls out of my soil, and I end up with this big pile of soil. Very specifically, what would you recommend that I do to revitalize it?

Jeremy Silva: Perfect. This is where some of our information based on talking to so many customers comes into play. We receive hundreds of soil tests from different customers, then I get to hear the story of what created those results. “Oh, this has been used for a year.” “Oh, this is from my back yard. This has been used indoor.” Ultimately, almost everytime we saw patterns; as long as they started with a similar recipe of organic soil, we’d find that the nitrogen and calcium were depleted, there was usually an excess of P and K, and there was just a little bit of an imbalance. We designed a kit that would add back the calcium via a product called Gypsum and the sulfur that comes with that would help balance the other nutrients and flush them out of the soil. Then we add back a little nitrogen by using some organic matter or some of our favorite organic fertilizers. The soils essentially right back to where it started.

To add to that, because you’ve been cultivating the soil with roots in it, if you were to, instead of dig the root ball out and dump the soil out, if you just left it completely intact and only chopped the stalk off and put your new plant in, you’d actually keep alive and intact all of the mycorrhizal fungal networks, the bacterial networks. You would actually keep a little bit of the life intact. Then we just add fertilizer back to the top of the soil and everything is good to go again. That root ball is actually food for the soil.

Two schools of thought in the organic right now. We help both. Sometimes you’ve got to dump the soil out because you’re moving gardens or you’re getting bigger pots. You would re-amend it and mix it in the soil. The other one is no till, and we’re hoping most people go that way because it’s a lot less work. You just have to start off with more soil to start, and then you never have to dig it or mix it up again. You just apply right to the top.

Shango Los: What happens to that root ball? That actually reminds me a lot … I live rurally and lots of folks use cover crops which help give nutrients to the next season. This reminds me of that, the new plant is going to be living off of the root systems of the old plant. Assuming that that’s correct, doesn’t that root system take up a lot of physical space that the new root system needs to survive?

Jeremy Silva: No, because it won’t be a living plant anymore. When you’re growing a cover cop, you smash it down before you plant the new one. You don’t remove the cover crop biomass. In fact, what happens is you till the soil, even once, even an inch, you’re going to release at least ten years of weed seed bank that is just going to take over your property. Where if you cover crop, it actually removes the purpose of the weeds. The weeds are there to come in and fix the soil, whether its too much potassium, too much alkaline, too compact. If you put good cover crop in they’ll start fixing nitrogen, feeding the micro life, and making a healthy soil so the weeds, they have no reason to sprout.

Because of all of the biomass, we’re talking ten inches deep, thick matting of cover crop that’s going to be chopped and dropped right on the grow, no weed seed could ever grow through that. When you go to plant your seed, you can use a seed tool that cuts through and plants it. Or you can by hand move the mulch back, put your seed down, and when it sprouts move the mulch back. By using a couple of tricks we can really beat nature, not have to pull any weeds or use weed killer, and keep the soil covered. If people that are listening are interested in something like this, there’s a book by Ruth Stout called the No Work Garden Book, and another book by Masanobu Fukuoka called the One Straw Revolution. Those two combined are very easy reads and would change your whole philosophy.

Shango Los: Yeah, I was going to say, this sounds pretty darn radical. Because I spend a lot of time touring gardens and talking with growers. At the end of the season almost everybody pulls their root bulb, makes a new pile of soil, works that or throws it and then continues on. You’re saying, no don’t disturb the soil. Just let it rock and plant into it again.

Jeremy Silva: Yup, a lot of this message is … for instance, here’s a story to relate. I’m going to kill the story a little bit. I’ll keep it short. There was a lady cooking … you may have even heard it. She cut off both ends of her roast when she would do it. Her mom came over one time and was like, “Honey, why did you cut the ends off the roast? You ruined it.” She goes, “Well you’ve done that always.” Her mom went, “Oh, silly, that’s the biggest pan we could afford at the time. I had to cut the ends off.” What happens as a farmer is, to take a crop to harvest our entire business is on the line, whether it’s farming … no matter what it is, a lot of money rides on a big duration.

If you’re going to alter your process and you’re wrong, you’re not going to know for six months and that could ruin your entire family. People are very hesitant to change when it comes to farming. It takes a company like ours, that can show physical evidence, proof, get a following of people behind us that are saying, “Yes, this really works.” That’s what’s going to make it easier for the percentages that normally don’t take on. The early adopters are who we’re working with now. Eventually they’re going to prove that it does work, and there’ll be people who have never tied this method and they’ll feel comfortable doing it because they can see the proof.

Shango Los: Throughout the lifecycle of the plant, do you also recommend to your customers to develop a compost tea that they like, so that it’s constantly getting the nutrition it needs?

Jeremy Silva: It depends. One of the things that I’ve found about our company is, it’s very challenging providing accurate and true information all the time, because it changes based on the actual situation. While on one hand I’d like to say, “everybody use compost tea.” I’ll sell more compost, I’ll sell more compost tea brewers. Realistically, once the soil gets up and running, you don’t need any compost tea at all. You can just put stuff on the soil and the soils going to digest it. Here’s the reason why compost teas are so awesome. A lot of times there’s farms are limited on the amount of quality soil they can have and the amount of quality inputs. A compost tea can really stretch that input with a pretty minimal amount of labor. Especially in the first couple of years of a new farm when the micro life needs to get developed, or if we’re indoors in a container that might not be big enough for the plant we’re growing these are areas and tools where we can use a compost tea and the great thing is it never hurts. We can add then all the time and they will most likely only cause benefit. The challenge that I have is once your soil gets good, and if you have enough soil, there becomes a diminishing point of return where it’s no longer advantageous for me to keep selling you stuff. You just really don’t need the tea anymore.

Shango Los: I’ve seen a couple really high end living soil folks who say, no nutrients needed to be added. You just plant in the soil and you’re done. This must be their approach, where the soil is just so darn robust that adding anything else would be superfluous.

Jeremy Silva: It’s correct. Even that I have to say with a grain of salt, because I found that when we’re aligned with intuitive things like gardening, when you have no experience and it’s your first time … for instance, I grew up in a cul-do-sac, sidewalks and asphalt. There wasn’t an opportunity for me to get curious about gardens and plants. When I got into it at a later age, a lot of things people would take for granted like how to properly water, what certain plants look like. It just wasn’t normal knowledge. When you start to get to that point you can tell someone, yeah this soil will grow everything you need, water only. They may not know that they can’t grow a 20 foot tall plant out of a one gallon container so they might say, “It didn’t work.”

There are some caveats there, but for the most part if the gardener knows what they’re doing, the power of nature can certainly supply everything we require. We don’t have to revert back to the really high energy cost of synthetic fertilizers. A lot of people don’t know that synthetic fertilizers require a lot of fossil fuel to create. Lots of energy to make nitrogen. It just gets more expensive. Every year as fuel goes up, these farmers are freaking out because they’re seeing that they’re dependent upon fertilizer and pretty soon they’ll be priced out if it.

Shango Los: Jeez. It’s time for us to take another short break. We’ll be right back. I am Shango Los. You are listening to the Ganjapreneur.com podcast, with my guest Jeremy Silva of BuildASoil. We’ll be right back.

Shango Los: Welcome back. You are listening to the Ganjapreneur.com podcast. I’m your host, Shango Los. Our guest this week is Jeremy Silva of BuildASoil. Jeremy, before the break we were talking about the different inputs that you use for your soil, and how to build a healthy, thriving soil. I want to change gears a little bit for a moment and talk more about your business structure, since this is primarily a show for entrepreneurs.

Traditionally, soil was something that was purchased very locally, because of the weight  and the volume of it. It was just a pain in the butt to try to ship that. Nowadays you can still buy soil locally to get stared, but then you can actually go and build that soil by getting specialty nutrients which you might not be able to get locally. What has been your experience since launching your website and being able to reach out to growers all over the country who may have a top soil locally, but can’t get the specialty items that you are very proud of selling?

Jeremy Silva: This is great, because it allows us to have longevity with our customer. First off, there’s actually a really tight distribution network of soil, and it pretty much comes from the west coast and from Canada. It’s pretty much the same products in every place. It’s not really bought locally. For the garden, if someone got top soil, like you mentioned, they would often times get that locally and then amend it. It seems like most people that I know, if they’re going to start a garden they go down to the local stop, go to Home Depot, go to the Garden Spot, get get a few tomato plants, and they buy a few bags of Miracle Grow or whatever bagged soil is there. That’s really where we came in and said, “Okay, this bag of soil is getting shipped all over the country and it’s awful stuff.” Then these gardeners go, “man, I just don’t have a green thumb.” How can we change that?

With the power of the internet we were able to reach out and bring real quality products to everybody. It just was predicated on the fact that once we knew we educated them, they wouldn’t want to go back. We really focused on free videos, free content that would really harmonize and be congruent with their philosophy. If these people are already eating organic, they probably want to grow that way they just didn’t know how. Combine that with the fact that people didn’t really what to ask about how to grow certain plants, they would just be limited to the information from their friends.

In any case, the internet, my first sale was from a Craigslist ad. I wanted to test the model. I read Four Hour Work Week. I was wiling to put a lot more hours that that in. One of the things that struck me in that book is he said, “Look it, don’t go build a business and hope it works. Go test it, see if there’s demand, and then build the business.” Within my first day I got a sale on Craigslist. The ability to use the new tools that are out there for websites and all the apps, and plug ins, and shipping softwares, there’s no excuse for anybody not to run their own business. It’s so easy. I have a little html background and stuff, but I just haven’t had to use any of it lately.

Shango Los: One of the things that I really dig about leveraging the internet is thin slicing. If you just were able to sell your soil and inputs right there around Montrose, Colorado, you’d have a small, probably profitable local business. As soon as you add the internet, you thin slice everybody who’s on the internet. You need a very low percentage of all the people who are online to actually get very rich. Whereas, if you were only serving Montrose you’d actually need a very high percentage of the local people to be customers of yours. You have the best of both worlds. You got a retail place where people can come in and you can sell to your neighbors, but at the same time you’ve go the ability to sell these specialty items all across the country. I think that our audience should take inspiration from that. If you’ve got a small idea, a unique product, but you’re like, “How would I sell enough of it?” Set up a simple web store and sell that to everybody in the country, because if you only get a small percentage of them, your totally going to win.

Jeremy Silva: Yeah, and I encourage everybody. So many people require too much of the vision to take action. It’s like driving across the highway, all the way across the country at night. You only can see about 20 feet, 30 feet, as far as your headlights. Still we trust, and as soon as we get there we can see further. With the website, I know lots of people that have ideas that really would work. They picture buying a million things. I say, go sell one. Go get your first sale, and if that little “bing” on Paypal with some money doesn’t freak you out and make you excited, then it’s probably not for you. Once it happens, you’ll find out how to get your second and third sale. Then you can work with exponential power, where you get repeat customers, as long as you do good customer service. It took us probably a year to get to the point where I could live off BuildASoil. After that it was like someone turned on the waterfall. It was just over night. Unbelievable.

Shango Los: I can also see how the exponential growth is going to kick in when you start bringing in your suppliers. During the first segment you were talking about how you’ve been trying to help your suppliers make enough material so that you can buy it from them and that you keep buying out all their inventory. You’re attracted to this idea of bringing them in house. Once they’re in house and you are capitalizing their process, so everything can be made in a more wholesale thinking, I can imagine that your numbers will jump up because not only are your margins getting better, but you always have these products in stock that people are excited about.

Jeremy Silva: Yeah. Here’s the thing that happens. When you empower other entrepreneurs, they tell their friends. All of a sudden instead of it just being, “Oh, Jeremy’s a cool guy.” Every supplier in our line is a cool guy that people want to support – or a cool girl, or whoever that is. Now you’re removing the big faceless, nameless business and you’re putting in real, families, real businesses. That’s what people want to support. I get people all the time that’ll spend extra money and they’ll tell me, “Hey, it was a dollar cheaper over here, but I just went with you guys because you’re there and I know you’re going to make it right.”

If there’s anything I can preach to you as a small business owner, put your phone number up there, answer the phone, be everything a big business can’t be. Over time you’ll have to put in some of the same big systems they did, but in the beginning you can learn your customers better than anybody in the world. That’s your advantage. Then you have a list of customers that trust you because you treated them well. If you find a new product and it’s in alignment with your core values, you could email all of your thousands of customers, make a whole bunch of money, and create a whole bunch of happy customers by just being creative one night.

Shango Los: I could almost see all the entrepreneurs in our audience raising their hands going, “preach it, hallelujah. You know what you’re saying.”

Jeremy Silva: We all hear this, all day long. Any entrepreneur has gone through phases in our life where we don’t take action. Once it happens we look back and go, “Man, what took so long? Why didn’t I just do this forever ago?”

Shango Los: Jeremy, we’ve run out of time. This has all been really great. Thanks so much for chatting today.

Jeremy Silva: Hey, you’re welcome. I love talking about this stuff. It was a pleasure being on.

Shango Los: Jeremy Silva is founder of BuildASoil. Find out more information at buildasoil.com. You can find more episodes of the Ganjapreneur podcast in the podcast section at Ganjapreneur.com. You can also find us on the cannabisradionetwork website, and in the Apple iTunes store. On the ganjapreneur.com website you will also find the latest cannabis news, product reviews, and cannabis jobs updated daily. Along with transcription of this podcast. You can also download the ganjapreneur.com app in iTunes and Google Play. Thanks to Brasco, as always, for producing our show. I am your host, Shango Los.

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Bipartisan Bill Would End DEA Marijuana Eradication Program

Lawmakers in the U.S. House introduced a bill last week that would end the Drug Enforcement Administration’s Domestic Cannabis Eradication/Suppression Program.

The bill, proposed by Ted Lieu (D-CA) and Justin Amash (R-MI), would prohibit federal, state, or local law enforcement agencies from using federal funds to locate and destroy marijuana cultivation sites.

“As multiple states legalize marijuana across our nation, it is a huge waste of federal resources for the DEA to eradicate marijuana,” said Rep. Lieu. “The federal government should focus its precious resources on other issues and let the states innovate in the cannabis field. I am proud to introduce this bipartisan bill along with Congressman Amash.”

“Civil asset forfeiture allows innocent people to have their property taken without sufficient due process, and this program encourages civil asset forfeiture by allowing the DEA to use the proceeds of seized property to fund marijuana prohibition enforcement,” stated Rep. Amash. “This is especially troubling given that the federal government should not be expending resources on marijuana prohibition—enforcement is a state-level issue, and an increasing number of states are deciding to back off from prohibition. I’m pleased to introduce this bipartisan bill with Congressman Lieu to stop the use of civil forfeiture proceeds for this element of the federal government’s marijuana enforcement efforts.”

Source:

http://www.thedailychronic.net/2015/46917/bipartisan-bill-to-eliminate-dea-marijuana-eradication-program-introduced-in-congress/

Photo Credit: USFS Region 5

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Portland Considers Stricter Zoning Rules for Marijuana Businesses

Delaying a planned vote on marijuana regulations, the Portland City Council is considering implementing stricter rules to prevent dispensaries from clustering.

The vote will be suspended until September 26th to give the council time to look into new regulations. Previously, the plan was to implement 1,000-foot buffers between retailers in the same category — medical or recreational.

The council is now considering making all retailers subject to the same buffers: a medical dispensary couldn’t be within 1,000 feet of recreational pot shop.

Marijuana businesses are already banned from residential neighborhoods and must be at least 1,000 feet from schools.

Mayor Charlie Hales said the council is hoping to prevent a situation similar to what happened with lottery operators on Hayden Island.

“Having been once burned, we’re a little shy,” he said, noting that Hayden Island’s “Lottery Row” was a result of a lack of communication between the Oregon Lottery and Oregon Liquor Control Commission.

The buffer would not apply to wholesalers or processors, but some are displeased with the proposed rules.

Anthony Johnson, who co-wrote the measure that legalized recreational marijuana, argued that the voter-approved measure contained no language regarding strict zoning regulations.

“We would argue that marijuana should be treated like bars, breweries and wineries,” he said, and claimed that the free market would resolve any problems with oversaturation.

Source:

http://www.oregonlive.com/portland/index.ssf/2015/09/portland_looks_at_stricter_rul.html

Photo Credit: Jeff Gunn

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