Five Legal Tips for Ganjapreneurs

The marijuana landscape can be synonymous with a free-spirited sense of fun, but when it comes to the legal world, marijuana is to be taken extremely seriously.

Peter Nemkov is a private practice attorney based in Denver with over 40 years of legal experience. He specializes in commercial transactions and has been working with ganjapreneurs since 2010.

Nemkov has seen several ganjapreneurs succeed in the industry, but he has also seen some nightmares unfold. Here are five legal tips for ganjapreneurs according to Nemkov:

1) Mind the terminology.

Slang and street names are no stranger to the world of marijuana. While saying “pot” and “bong” may pass at a party, using these terms in a legal setting will not suffice.

“This is a new market area and this is a new product, and they should treat it with respect. Using slang demeans the whole business,” Nemkov says.

Depending on the product, the plant itself should be referred to as “medical marijuana” or “recreational marijuana.” Smoking devices like a bong or pipe are all called “accessories.” A joint should be called a “marijuana cigarette” and dispensaries, “retail stores.”

Learning the correct terminology is a solid way for ganjapreneurs to demonstrate they take the product and the industry seriously.

2) Treat the marijuana industry like any other.

It may be a drug, but businesspeople should not treat marijuana differently than any other agricultural product. The industry is simply another facet of capitalism and should be taken very seriously.

“The organization and development of the marijuana industry is symbolic of entrepreneurial capital in the truest sense of the term,” Nemkov says.

He also stresses the importance of avoiding any kind of exposure to criminal elements like the drug cartels, illegal drug trafficking and money laundering. “Those elements are all illegal and they’re all very detrimental to the development of the marijuana industry,” he adds.

3) Know the federal legal requirements better than the alphabet.

The federal government is keeping a close watch on the marijuana industry, and the best defense against getting into trouble is a vast working knowledge of the law.

Ganjapreneurs “need to be very aware of all the legal requirements and have a strong compliance program, a lot more so than other industries,” Nemkov says. “There’s a lot more scrutiny and they should religiously follow the legal requirements.”

4) Keep finance a high priority.

When marijuana companies get in to trouble, it’s typically because they don’t account for or take their finances seriously enough. The marijuana industry is not something to haphazardly enter and treat casually.

“When they do that they’re doomed to failure and they need to view the marijuana industry like any other industry. They need to be very aware of basic business practices, especially the availability of capital and the need to manage and control their income and expenses,” Nemkov says.

Additionally, ganjapreneurs must be aware of not working with parties that have undisclosed financial interests. Nemkov has seen established businessmen face time in jail because they knowingly worked with the wrong people.

5) Be wary when choosing a lawyer.

Because the marijuana industry should be treated like any other, ganjapreneurs should find a lawyer the same way they would for any legal purposes. The most important considerations when choosing any lawyer are his or her experience, competency and reputation.

The marijuana industry is exploding and offers opportunities to many businesspeople. The most important things for ganjapreneurs to keep in mind are to treat it like any other professional industry and succinctly know the state and national laws.

Photo Credit: Mish Sukharev

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Candidate for Colorado Governor Believes Legal Marijuana Is Under Threat

In Coloradoʼs nail-biter of a gubernatorial race between incumbent John Hickenlooper and Republican Bob Beauprez, marijuana has played a surprisingly small role in the election — mostly because the two leading candidates have each been vocally opposed to legal cannabis.

“Both parties, left and right, are the same people,” says Glendale Mayor Mike Dunafon, who is running as an independent candidate for Colorado Governor. Dunafon believes that either Hickenlooper or Beauprez intend to “regulate [legalized] marijuana out of existence,” and has made this the flagship issue of his campaign. A former Denver Bronco, Beauprez first became a city council member, then the mayor, of the small enclave of Glendale (buried within the city and county of Denver) after helping fight regulations that threatened local strip club Shotgun Willies — the owner of which he would go on to marry. He distances himself from the libertarian movement, but maintains a pro-gun, pro-choice, pro-gay marriage stance, objecting to government imposition on personal freedoms.

His stance on marijuana has won him the favor of musician Wyclef Jean — who collaborated with Dunafon on a rapping campaign video — and most recently Snoop Dogg, who has endorsed the candidate and is helping to arrange a three day music and comedy festival over Halloween weekend in Glendale to help promote his candidacy. During a gubernatorial debate earlier this month, Governor Hickenlooper said Amendment 64ʼs legalization of cannabis was “reckless,” followed by Bob Beauprez saying he would like to see the amendment repealed. Though similar statements didnʼt stop many Colorado marijuana businesses from donating tens of thousands of dollars to Hickenlooperʼs campaign.

Dunafon is currently funding his campaign out of pocket, refusing to accept any corporate donations because “once that happens, you owe the man that gave you that money,” he says, adding that he believes the marijuana companies that donated to Hickenlooper are “cronies who want to solidify their gains and make sure that no one else gets in.”

More Coloradanʼs voted in favor of marijuana legalization in 2012 than did to elect Governor Hickenlooper by a margin of four points — the same number of digits heʼs currently trailing behind Beauprez according to a recent Quinnipiac poll. Dunnafonʼs chances of winning the election are not within the realm of possibility, though the small number of votes he could steal from either candidate could have a significant impact on a race analysts are calling “a tossup.”

Photo Credit: yosoynuts

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Brief: Penalties Issued to Marijuana Businesses by the WSLCB

The Washington State Liquor Control Board issued 67 penalties to recreational marijuana businesses from May to mid-October this year. Roughly 10 percent of all license holders were contacted — 52 incidents were verbal warnings, four penalties were actual fines, and there was one license suspension.

Failure to submit monthly taxes on time was the most common reason for an LCB-issued penalty during this time, while the second most common reason was insufficient security and surveillance systems.

“We have never done it before, so the way we think it should work doesn’t necessarily end up being the way it works,” explained Johanna Tuttle, co-owner of Yield Farms, a licensed marijuana production company in Spokane Valley. Yield Farms received a written warning in August for failing to submit taxes, but the issue was quickly and easily corrected. All-in-all, Tuttle said that the roll-out of I-502 has been “very reasonable.”

The harshest penalties were issued to Sea of Green Farms in Seattle, who faced a five day suspension for “growing in an unauthorized area,” and to Green Chiefs in Granite Falls, who faced a $5,000 dollar fine for a transportation violation.

Sources:

http://www.kxly.com/news/spokane-news/marijuana-industry-under-close-watch-by-liquor-patrol-board/29394442

http://mmjbusinessdaily.com/67-penalties-warnings-for-mj-violations-in-washington/

Photo Credit: Joe Mabel

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Brief: Chile Plants First Crop of Medical Marijuana

Chile’s first crop of medical marijuana, a heavily-guarded and monitored 850-square-meter plot of land dedicated to growing medical-grade cannabis, has been planted.

“We’re living at a time, in Chile and the rest of the world, where it’s not reasonable to close yourself to new evidence. Marijuana can provide some dignity to those who suffer. It doesn’t cure cancer,” said La Florida district Mayor Rodolfo Carter, “but we can alleviate the pain.”

Medical marijuana was legalized in Chile in 2005, but only with certain approval from the country’s agricultural service. Before now, one previous effort had been approved in 2011, but even that brief allowance was soon backpedaled when faced with growing opposition from health authorities.

The latest crop is covered by a one year permit and has received support from the state. Additionally, a local university will be using the project for researching marijuana’s effectiveness at combating pain.

Sources:

http://www.thedailychronic.net/2014/37974/first-medical-marijuana-crop-planted-in-chile/

Photo Credit: Maria Jose Bustamante

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Head Shop Industry Cruising Through Competition From Legal Marijuana Retailers

Some people undoubtedly expected that head shops, once the sole destination to buy water pipes and other drug paraphernalia, would see a decline in popularity with the introduction of marijuana retail stores, which usually offer the paraphernalia for cannabis consumption in addition to the cannabis itself.  However, according to recent updates by Marijuana Business Daily, the opposite is taking place.

In fact, with medical marijuana taking the country by storm (and recreational marijuana surely not far behind), the head shop industry has seen significant growth on a national scale. According to a 2013 estimation, head shops generate $10 billion annually in the U.S.

Mike Gonzales, sales coordinator for Headquest Magazine, has reported that head shop sales in Denver have spiked dramatically since legalization. “Now that [marijuana] is legalized, there’s a lot more new shops opening up, more wholesalers, a lot more new products out there,” he explains.

A report published in Headquest Magazine last year read, “The vast majority of smoke shops see increasing competition, increased opportunities, and increasing sales.” In other words, “The pie is getting bigger.”

One strategy adopted by head shops to stay relevant in cannabis culture is to target the connoisseur market with high-quality and high-value products. Chris Woods, founder of a chain of Colorado recreational pot shops, said, “The people that are buying paraphernalia at our store, it’s more of a functional purpose. It’s not like a head shop, where they might spend several hundred dollars. I don’t think we’re taking their business.” Additionally, dispensaries and retail stores often don’t carry much more than a very basic inventory of pipes, vaporizers, and rolling papers; a head shop, however, can dedicate an entire store to offering a wide variety of products.

Others cite cannabis’ growing presence in mainstream culture as another reason for head shops to see such growth, even in states where medical and recreational marijuana are still illegal. “It’s more acceptable to have glass,” explains Jake Wright, co-owner of Brothers with Glass, an online glass pipes retailer based in Portland, Oregon. “There’s a lot less chance… that it can get confiscated, so you can invest a little more money in a… water pipe.”

Sources:

http://mmjbusinessdaily.com/head-shops-thriving-in-many-marijuana-markets-despite-competition-from-cannabis-retailers/

Photo Credit: D.C.Atty

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Marijuana in the Elections

2014 is shaping up to be a banner year for marijuana reform, with Oregon, Alaska, Florida, California and Washington D.C. all voting on various initiatives to alter the way their states address the criminal status of cannabis.

While the passage of Alaskaʼs Ballot Measure 2 would make it the first red-state to go fully legal — significantly impacting other right-leaning districtʼs chances for similar measures — itʼs no stranger to legal weed. Along with Oregon, Alaska was one of the first stateʼs to legalize medical marijuana in 1998, and technically decriminalized the substance in 1975. “Law enforcement have been avoiding [possession] cases in Alaska because they have little chance of standing up in court, because of state constitutional protections,” says Taylor Bickford, a spokesperson for the Measure 2 campaign.

Though Bickford says the state has yet to set up a regulatory system for the sale of recreational or medical marijuana, something Measure 2 aims to change. Polls in Alaska are currently split, with statistics gathered by the opposition showing 53 percent planning to vote no and 43 percent yes. Though a survey paid for by the Campaign to Regulate Alcohol Like Marijuana show 57 percent in favor and 39 percent opposed. Oregonʼs Measure 91 — which would also make sale and possession of cannabis 100 percent legal — is in slightly better standing. “Our survey shows 70 percent of 18 to 34 year olds are planning to vote for it, and overall 52 percent are going toward yes,” says pollster John Horvick of DHM Research. “Though the turnout of 18 to 34 year olds and independents show up is going to be key,” both of whom, Horvick says, traditionally have a poor track record with making it out to the ballot boxes.

Things are looking considerably worse in Florida, where voters have the opportunity to make theirs the first southern state to legalize medical marijuana (the only MMJ initiative on the ballot this year). According to a Tampa Bay Times/Bay News 9/UF Bob Graham Center poll, only 48 percent of likely voters say they would vote in favor of Amendment 2. And unlike Alaska and Oregon, Florida requires at least 60 percent to vote yes for the initiative to pass. Much of this can be attributed to Sheldon Adelsonʼs massive campaign funding against the Amendment.

Californiaʼs Proposition 47 aims to reduce non-violent crimes like drug possession and petty theft from felonies to misdemeanors, devoting an estimated $1 billion a year to crime prevention. Similarly, Washington D.C. legislators decriminalized cannabis earlier this year, turning possession into a ticketable offense and a legal grey area. On November 4, voters will decide whether to remove all criminalization of marijuana for adults 21 and older. Though Initiative 71 does not address the cannabis sales, the D.C. Council is currently debating a bill that would implement a taxed and regulated marijuana market in the nationʼs capital.

Photo Credit: Brendan C

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With Elections Looming, OR Senator Comes Out in Support of Legalization

Oregon Senator Jeff Merkley, a Democrat, has announced that he will be voting “yes” on Oregon’s legalization initiative this November. According to his office, Merkley stopped short of fully endorsing Oregon’s legalization initiative, but his announcement makes him the first sitting U.S. Senator to publicly support the legalization and regulation of cannabis.

While Oregon is not the only region holding a major vote on marijuana policy this year, its marijuana election is unique because this is the state’s second attempt at legalization. In 2012 — when voters in Washington and Colorado successfully legalized pot in their own states — Oregon voters very nearly passed an initiative that many claimed was too expansive and lenient on the potential cannabis industry. This year’s initiative, Measure 91, comes with more practical restrictions and heavier regulations on recreational cannabis, and has proven to be more popular with the general public.

Beyond Senator Merkley, Measure 91 has seen support from a variety of different public figures: U.S. Rep. Earl Blumenauer has been a long-time supporter of marijuana and hemp legalization, while former Oregon Supreme Court Justice Bill Riggs officially endorsed the initiative earlier this year. Two major publications — The NY Times and Oregon’s own Oregonian — have also endorsed the state’s move to legalize.

The most recent poll indicates a voter majority of 52 percent in favor of Measure 91 and 41 percent opposed, according to Oregon Public Broadcasting. The most important aspect of this year’s marijuana election in Oregon, pollster John Horvick reports, is expected to be voter turnout among young Oregonians. “So if the marijuana campaign is able to get those voters out, it looks like it could pass, it’ll be close, a squeaker.”

If passed, Measure 91 will legalize, regulate, and tax the sales of marijuana to adults aged 21 and older. Additionally, adults will be allowed to carry up to eight ounces of dried cannabis and will be allowed to cultivate up to four personal marijuana plants in the privacy of one’s own home. The initiative also includes a layout for an infrastructure of new cannabusinesses, and the new industry will have its regulations written by the Oregon Liquor Control Commission.

Reports have indicated that the state could make up to $40 million annually in taxes from a legal marijuana market. In a post-legalization Oregon, the breakdown of where marijuana tax revenue will go is as follows: 40% of revenue will go to public schools; 20% to programs involving mental health, alcoholism, and drug treatment; 15% to state police; 20% to local law enforcement agencies (distributed proportionately by population), and the final 5% will go to the Oregon Health Authority for alcohol and drug abuse treatment services.

Sources:

http://www.reuters.com/article/2014/10/27/us-usa-marijuana-oregon-idUSKBN0IG28G20141027

http://www.opb.org/news/article/voter-turnout-will-tip-the-scales-on-legal-pot-measure/

http://www.mpp.org/states/oregon/measure-91-summary.html

Photo Credit: Edmund Garman

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Brief: Upcoming Presidential Election in Uruguay Poses Risk to Marijuana Experiment

Last December, Uruguay made headlines as the first country in the world to legalize cannabis. Left-wing President Jose Mujica began rolling out a system for the legal regulation and taxation of the drug. The program has seen delays, however, and with Mujica’s final term coming to an end soon, the program is now threatened by the prospect of an anti-legalization candidate taking the presidency.

Voters will begin voting on a new president October 26, and whomever is elected will be sworn into office come March.

Polls indicate that Uruguay’s presidential race is currently a close run between left-wing candidate Tabare Vazquez, who has indicated support for Mujica’s program, and National Party candidate Luis Lacalle Pou, who opposes the country’s marijuana legalization in its current form — Pou did endorse a bill in 2010 that would have allowed personal cultivation of cannabis, but has since described Mujica’s program as “inapplicable in reality.”

Uruguay’s legalization attempt has been an experimental battleground for marijuana advocacy in Latin America, a region often ravaged by violence stemming from the international War on Drugs.

Sources:

http://www.reuters.com/article/2014/10/20/us-uruguay-marijuana-idUSKCN0I91PD20141020

http://mmjbusinessdaily.com/uruguay-presidential-candidate-wants-to-scale-back-legal-marijuana/

Photo Credit: MarihuanayMedicina

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Brief: ATM Services Unexpectedly Pulled from Hundreds of Marijuana Retail Stores

On Wednesday, cashless ATM services were pulled from hundreds of legal marijuana dispensaries and retail marijuana shops. According to Marijuana Business Daily, at least 300 to 400 shops were affected by the sudden drop of services.

Cashless ATM services are especially useful to the cannabis industry because it allows patients and recreational consumers to use their debit or credit cards to pay for cannabis as if it were a cash withdrawal.

“We found out about this issue first-hand when ours went down this morning,” said Kayvan Khalatbari, co-founder of Denver Relief, on Wednesday. “We’ve had to move to all-cash today. It was pretty frustrating. We lost some business when that went down and customers didn’t have any cash on them.” Khalatbari said that Denver Relief experienced a 30% loss of sales, but that a new cashless ATM service would be installed by next week.

The majority of affected ATM machines are tied to MetaBank, a major player in the U.S. ATM industry. The Denver Post reported that the banking institution had warned the cannabis industry in January that machines located in marijuana businesses were in violation of federal banking rules. The system, however, had remained in place until this week — more than 10 months later, and only days after several Colorado bankers said they’ve received approval from regulators to continue serving the cannabis industry.

Sources:

https://mmjbusinessdaily.com/breaking-100s-of-marijuana-stores-abruptly-cut-off-from-cashless-atm-accounts/

http://www.denverpost.com/business/ci_26785077/hundreds-atms-unplugged-legal-pot-shops-colorado-washington

Photo Credit: William Grootonk

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Marijuana Freelance Network Announced by Ganjapreneur

Ganjapreneur — an online business resource that launched over the summer — has announced the launch of a “Freelancer Network” on its website. An official launch date for the project has not been set, but Ganjapreneur has outlined several of the features.

This network will be made publicly available and will be free to use. Freelancers who join the network will be able to create a listing using their real name or a pseudonym, describe their specialty and location, upload a biography and/or personal statement, and provide a contact email address. The listings will be organized in a directory and categorized by service type. Businesses will then be able to use the directory when searching for freelancers for projects that require specific skill sets, and creative agencies who want to take on cannabis industry jobs will be able to recruit people who are interested in cannabis-related work.

The Ganjapreneur Freelancer Network will include categories such as web developers, graphic designers, copywriters, SEO experts, social media marketers, videographers, animators, and programmers. Unlike many other freelancer networks, Ganjapreneur will not take a percentage off the top of projects organized through its network, and it will not require freelancers to manage all communications with their clients through its website.

As such, the site will likely not provide the same mediation and escrow services that popular freelancing websites do, but a rep from the company thinks that these features may be precisely what is keeping the cannabis industry out of traditional platforms. “Freelancers may have day jobs at companies where the subject of cannabis is not acceptable, so they probably wouldn’t want their real name attached to anything that could show up in search engines, and cannabis businesses may not be allowed on public-facing websites where the platform holds funds in escrow. By removing ourselves from the equation except as the source to browse and contact freelancers, we give both sides a lot more privacy and flexibility, which is exactly what the industry needs.”

The landing page for the Freelancer Network currently has an email signup form to Ganjapreneur’s newsletter so interested parties may receive notifications when the project goes live. The announcement follows on the heels of several other recent announcements from Ganjapreneur, including an upgrade to their marijuana industry job feed, the launch of their app for Android devices, and an ongoing series of interviews with cannabis industry pioneers.

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Brief: Ebola.com Sold for $200,000 to Russian Marijuana Company

In an international transaction that can be described only as utterly weird and unprecedented, a Russian cannabis company has purchased Ebola.com for just over $200,000, reports Time Magazine. To make matters stranger, a significant portion of the funds came from stock in Cannabis Sativa, a different marijuana company based out of Nevada.

The Russian company, now going under the name Weed Growth Fund, was as recently as last month a company self-proclaimed to specialize in “stainless steel cookware products for retail and wholesale customers in North America,” called Ovation Research.

Weed Growth Fund paid $50,000 in cash and $164,000 worth in Cannabis Sativa stock to a disease-obsessed domain name vendor called Blue String Ventures.

Another interesting side note — which could partially explain Weed Growth Fund’s interest in Ebola.com — is that Gary Johnson, current CEO of Cannabis Sativa and former governor of New Mexico, has publicly suggested that medical marijuana could provide a possible treatment for Ebola. Whether Johnson’s position at the head of Cannabis Sativa had any influence in the transferring of that company’s stock for Ebola.com, however, is uncertain.

Sources:

http://time.com/money/3534676/ebola-com-marijuana-gary-johnson/

https://mmjbusinessdaily.com/russian-cannabis-firm-buys-ebola-com-for-200k/

Photo Credit: NIAID

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Ganjapreneur Now Accepting Marijuana Job Postings

With the addition of their new “Post a Job” page, Ganjapreneur has entered the world of online job boards geared toward the marijuana industry. The website launched their marijuana industry job feed several weeks ago, which up until now has merely aggregated links to jobs had been posted around the web. With the new form, employers will be able to fill out their own job posting to be published on Ganjapreneur’s website and Android app.

“This is just one small feature of what we’re building out,” a Ganjapreneur spokesperson said. “Ultimately we’re going to be a lot more than a simple job board. We’re aiming to be a business hub for the industry as a whole, so naturally, helping people find careers related to cannabis and helping employers reach out to potential employees is going to be a big part of that. But we have many more features in the works that will be coming out soon.”

All jobs listed by Ganjapreneur are available both on their website and their recently-launched Android app. Ganjapreneur has announced that their app will also be available in the Apple App store in the near future. The website announced its official launch over the summer, and has since published a large number of news articles, business editorials, and interviews with cannabis industry pioneers.

Recently, Ganjapreneur published an audio interview with Colorado cannabis entrepreneur Matt Brown, who went into detail about how the industry took shape as an organized structure in the period of time leading up to the passage of Amendment 64 in 2012. Another interview with John Evich of Top Shelf Cannabis, the first retail store to serve Washington State’s recreational market, was published in video format and includes a shop tour and footage of the first edible products being sold in Washington.

Ganjapreneur also published an open source marijuana slang dictionary last month which has grown over time with user-submitted slang terms and example usages.

“We’re just getting started,” a rep from Ganjapreneur said. “The next few months are going to be very exciting as we begin to roll everything out.”

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Doctors to Present Case in Federal Court Against Marijuana’s Schedule 1 Status

In 1970, members of Congress categorized cannabis as a Schedule 1 substance under the Controlled Substances Act, which is the most restrictive category, and legally equated the plant with significantly more dangerous substances such as heroin and crystal meth.

Forty-four years later, a team of experts — Dr. Carl Hart, Associate Professor of Psychology at Columbia University in NYC; Dr. Greg Carter, Medical Director of St. Luke’s Rehabilitation Institute in Spokane, Washington; and retired physician Phillip Denny — will be presenting the case for rescheduling marijuana in California before a federal judge on Monday.

“[I]t is my considered opinion that including marijuana in Schedule 1 of the Controlled Substances Act is counter to all the scientific evidence in a society that uses and values empirical evidence,” said Dr. Hart. “After two decades of intense scientific inquiry in this area, it has become apparent the current scheduling of cannabis has no footing in the realities of science and neurobiology.”

Paul Armentano of NORML writes that, “This is the first time in recent memory that a federal judge has granted an evidentiary hearing on a motion challenging the statute which classifies cannabis to be one of the most dangerous illicit substances in the nation.”

Evidence and testimonials from experts and concerned individuals will set out to demonstrate the absurdity of marijuana’s current scheduling. Witnesses will include Marine Sgt. Ryan Begin, a veteran of the Iraq War; Jennie Stolmens, the mother of a child suffering from a pediatric form of epilepsy that has been shown to respond positively to medical marijuana treatment; former crime analyst for the FBI and current Associate Professor of Sociology and Anthropology, James Nolan, Ph.D.; and Christopher Conrad, popular cannabis cultivation expert and author.

Marijuana’s current scheduling, which legally defines it as having “a high potential for abuse” and “no currently accepted medical use in treatment in the United States,” is perhaps the largest obstacle blocking research on medical marijuana.

Despite the drug’s federal scheduling, however, more than half of U.S. states have legalized the medicinal use of cannabis in some form or another. Two states — Colorado and Washington — have legalized and regulated the drug’s recreational use. Meanwhile, two other states (Oregon and Alaska), the District of Columbia, and several other major U.S. cities will see marijuana’s legalization on the ballot this November election season.

Sources:

http://thejointblog.com/federal-judge-hold-hearing-whether-cannabis-removed-schedule-1-drug/

http://blog.sfgate.com/smellthetruth/2014/10/21/war-on-marijuana-unconstitutional-doctors-testify-in-federal-court-monday/

Photo Credit: Tracie Hall

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Medical Marijuana Inc. Files Major Lawsuit Against Other Cannabis Industry Businesses

Medical Marijuana Inc. (OTC: MJNA) was the subject of a scathing business report published last week, and the company has in turn filed a massive $100 million lawsuit in California against several cannabis industry businesses involved in publishing the report.

The report — titled “Hemp Oil Hustlers: Project CBD Issues a Special Report on Medical Marijuana Inc., HempMeds, and KannaWay” — claims that lab results have indicated that MJNA’s hemp-based products contain “significant levels of toxic solvents,” and that many consumers of the company’s products have reported illness afterward. The report also includes accusations that the company in question has employed sketchy business practices that “may qualify it as a pyramid scheme.”

MJNA, a publicly-traded company, publicly denounced the report within days, claiming it “is based on false, inaccurate and misleading statements.” The company has also reported a coinciding plummet of its stock prices and claims that its reputation has been compromised.

Company spokesman Andrew Hard wrote, “We will seek full legal remedies and awards for the damages caused by the malicious and intentionally harmful article and actions by the enterprise made up of the publication’s author, the publicist, and the company, other parties and individuals.”

Marijuana Business Daily reports:

“The lawsuit names the Denver-based publicly traded testing company CannLabs and its founder Genifer Murray; the Colorado dispensary Rifle Mountain and its founder Jason Cranford, who formerly served on the board of a company affiliated with Medical Marijuana Inc.; and Stewart Environmental Consultants, a Colorado lab that conducted the tests but is not involved in the marijuana industry.”

MJNA is maintaining that the report is a clear demonstration of malicious conduct. One factor that reinforces MJNA’s claims is that the lab results released by Stewart Environmental were preliminary lab results. The testing lab has since admitted that it should not have released the preliminary results, and that the tests were in fact flawed because the products had passed through several hands before being tested.

Medical Marijuana Inc. is no stranger to legal battles: Tripp Keber — currently CEO of Dixie Elixirs, though he was once affiliated with MJNA before creating a subsidiary called Red Dice Holdings — filed a lawsuit against MJNA in November, 2013 because of a contract violation. Earlier in 2013, the company also came under fire in stock market blogs and internet forums for its financial accounting methods.

Sources:

http://mmjbusinessdaily.com/medical-marijuana-inc-files-100m-lawsuit-over-false-claims/

http://mmjbusinessdaily.com/medical-marijuana-inc-on-the-defensive-after-outside-criticism-sets-shareholders-on-edge/

http://www.projectcbd.org/project-cbd-issues-a-special-report-on-medical-marijuana-inc-hempmeds-and-kannaway/

http://www.otcmagic.com/medical-marijuana-inc-otc-mjna-penny-stock-making-moves

Photo Credit: Alice Carrier

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Story of Colorado Marijuana Industry’s Birth Revealed in Ganjapreneur Interview

Ganjapreneur published the second installment of their interview with Matt Brown on October 19th. In the recording, Matt Brown and Ganjapreneur contributor Mitch Shenassa talk about the early stages of the organized cannabis industry, working with the Colorado Department of Health, and coordinating with other medical marijuana businesses and activists for the first time.

As a business consultant and friend of many key players in the push that ultimately led to the passage of Amendment 64, Brown relates the story from an insider’s perspective and the interview brings details to light that have never previously been reported in the mainstream media.

While describing what it was like to team up with lobbyists with CMMR (Coloradans for Medical Marijuana Regulation), Brown says, “This was the first time openly, publicly, we all used the term ‘the marijuana industry..’ And that was, I probably viewed myself as probably more like Frank Luntz than anything. That it was to set the language and the context that we were talking about.”

The full transcript and audio recording is available on Ganjapreneur’s website.

Ganjapreneur launched officially in July and has since published several interviews with prominent cannabis industry pioneers, in written, audio, and video format. They also recently launched an app on the Google Play marketplace and have announced that the app will be available via the Apple App Store in the near future.

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Brief: New Poll Shows Majority of Delaware Residents Want Marijuana Legalization

A new University of Delaware poll has shown that a majority of voters in Delaware — one of the next target states for marijuana advocates — approve of legalizing recreational marijuana. The numbers indicate that 56% of Delaware citizens are in favor, with 39% opposed.

The poll was conducted from September 10 – 22.

Generally, support for legalization was shown to be extremely popular among younger residents, with nearly 70% of people under 30 years old in favor; meanwhile, the only demographic groups with strong trends of opposition were self-identified conservatives and citizens aged 60 and older. Only 39% of self-identified conservatives approved legalization, though 73% of self-identified liberals were in favor of such legislation.

The University polled 902 residents selected from all three of the state’s counties, and the general trend of support seems unhindered by geographic boundaries.

“I would say the numbers suggest solid support for fully legalizing marijuana in Delaware,” said poll supervisor and political communications professor Paul Brewer. “The results also reflect what’s going on in public opinion at the national level, where the trends show a growing majority favoring legalization.”

State Senator Bryan Townsend, who approves of legalization, commented, “I hope this is a wake-up call to the General Assembly that a majority of Delawareans support us moving in this direction.”

Sources:

http://hemp.org/news/node/4159

Photo Credit: Brett Levin

 

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Brief: Obama Nominates Supporter of MJ Legalization to Lead DOJ’s Civil Rights Division

President Obama will nominate Vanita Gupta, a lawyer from the American Civil Liberties Union, for the top position in the Department of Justice’s Civil Rights Division, the Washington Post reports.

Gupta is currently the director of the ACLU’s Center for Justice. She has voiced strong opinions against mandatory minimum sentencing, particularly involving drug offenses, and has made a progressive name for herself in regards to cannabis reform, calling the War on Drugs “a war on communities of color.”

She wrote in an op-ed for CNN last month that harsh sentencing laws and current drug policies have “devastated families and communities, generated high recidivism rates, drained state budgets from more productive investments, and [have] reinforced generations of poverty and disadvantage that disproportionately fall on communities of color.”

She argues that the U.S. should follow Colorado and Washington’s lead by collecting tax revenue from recreational marijuana sales and investing it “in education, substance abuse treatment, and prevention and other health care.”

Sources:

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/15/obamas-nominee-for-a-top-doj-slot-has-said-states-should-legalize-marijuana-thats-a-huge-deal/

http://www.cnn.com/2014/09/02/opinion/vanita-gupta-marijuana-life-sentence/

Photo Credit: DonkeyHotey

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Oregon MMJ Program’s Recent Growth Attributed to New Dispensary Industry

Since Oregon voters approved the Oregon Medical Marijuana Program (OMMP)  in 1998, enrollment in the program has often fluctuated dramatically. In the past nine months, however, the number of patients grew 15 percent state-wide, and experts are attributing that growth to the recent launch of the state’s licensed and regulated dispensaries, the Oregonian reports.

Though medical marijuana has been legal in Oregon for sixteen years, the state legislature only passed a law to establish regulations for a dispensary system in 2013. The Oregon Health Authority began issuing business licenses earlier this year. Oregon has issued 193 licenses for medical marijuana dispensaries since March, and yet another 41 businesses have been issued provisional licenses.

At the beginning of October, there were 69,429 medical marijuana patients registered in Oregon — nearly 9,000 of those individuals signed up in 2014.

As the medical marijuana industry shrugs off the stigmas that once hounded it, the program has become more accessible to people who were once worried about legal repercussions accompanying the drug. “People are more comfortable putting their name on paper, with it becoming more recognized and accepted,” said patient Andrew Courtenay, who received his card in March.

According to Sandee Burbank, owner of three medical clinics that sign patients up for the program, the advent of dispensaries this year in particular has made the program feel much more legitimate. “They can walk in with their money and get what they need,” she said. The dispensary system is much more approachable than before, where patients had to either grow their own weed or know somebody who could do it for them.

Amy Margolis, a Portland-based lawyer who represents MMJ dispensaries and growers, agrees that the public perception of the program has improved. “People feel safer and they should feel safer,” she said. “It’s way different than it was five years ago, than it was two years ago, and I think people are recognizing that.”

Another factor contributing to the recent growth of the OMMP is last year’s expansion to the list of qualifying conditions, which now includes post-traumatic stress syndrome — state records indicate there are currently 2,433 patients listing PTSD as their condition.

Sources:

http://www.oregonlive.com/marijuana/index.ssf/2014/10/medical_marijuana_in_oregon_la.html#comments

Photo Credit: Dank Depot

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Brief: Major Labor Organizations in D.C. Endorse Marijuana Legalization

Three major labor organizations in Washington D.C. — the Service Employees International Union, United Commercial Food Workers, and D.C. Working Families — have endorsed Initiative 71, the district’s marijuana legalization initiative on this November’s ballot. If passed, Initiative 71 will allow adults age 21 and older to possess up to two ounces of marijuana and cultivate up to six marijuana plants in their own home.

Dr. Malik Burnett of the Drug Policy Alliance explains the significance of this development:

“These major labor endorsements show that the elimination of marijuana prohibition is an issue of significant importance to workers in the District of Columbia. Initiative 71 would eliminate unfairly harsh punishments for minors offenses, making it less likely that our young people get a lifelong criminal record that makes it harder to get a job, an apartment, or credit card.”

“The war on drugs has had a devastating impact on the ability of working families… to advance their economic standing,” said Delvone Michael, executive director of D.C. Working Families. “A progressive policy like Initiative 71, which removes marijuana from the criminal justice system, would serve as yet another step towards ending this failed policy in the District of Columbia.”

Washington D.C. took a leader’s stance on drug policy reform when the district decriminalized marijuana earlier this year, replacing the risk of arrest for possession of small quantities of cannabis (less than an ounce) with a small civil fine. However, if the legalization initiative passes on November 4, conservatives in Congress could attempt to overrule the voters.

Sources:

http://thestonedsociety.com/2014/10/14/d-c-marijuana-legalization-initiative-71-receives-endorsement-of-major-labor-organizations/

Photo Credit: Cliff

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Marijuana-Infused Edibles Companies Are Now Catering to Cannabis Rookies

Certain marijuana-infused edibles companies are now targeting weed lightweights with cannabis-lite products. These products are designed to give infrequent or inexperienced users a euphoric THC high without completely overwhelming them. Manufacturers have found that many consumers who are unfamiliar with the drug are drawn to edibles because its a much more conventional method of intake, but some products become so strong that users are often reporting very negative experiences.

“For a long time, the medical market was a race to the strongest edibles. Now it’s a new market, and people want something that won’t get them so inebriated they’re not functional,” explained Holden Sproul of the Growing Kitchen, the company that offers the ‘Rookie Cookie’ — Growing Kitchen is even beginning to phase out some of its older and more potent products.

“We still get people walking in here saying, ‘What’s the strongest thing?’ But more and more they’re asking about flavor, the experience, the whole nine yards,” said Tim Cullen, owner of two Colorado marijuana dispensaries.

Cullen draws a comparison between hard alcohol and the potency of marijuana edibles: “No one buys a handle of Jim Bean and thinks they should drink all of that in one sitting. But people do want to eat an entire cookie, an entire piece of chocolate. So these products allow you to do that and not have a miserable experience.”

This transition is not just about finding new opportunities in the market, however. The potency of marijuana edibles is an often vilified aspect of the drug, and prohibitionists and some media outlets have pounced on stories like New York Times columnist Maureen Dowd’s infamous stumble down the rabbit hole earlier this year. Further controversy surrounded the death of Levy Thamba, a 19-year-old college student who ate several cannabis cookies, began behaving erratically, and eventually jumped from his Denver hotel room balcony, killing himself and drawing the issue of potent cannabis edibles to public attention.

More specific labeling and potency warnings were introduced. Some Colorado dispensaries have responded even further through a “First Time 5” poster campaign, which encourages first-time or inexperienced users to only consume 5 milligrams of THC at first — this is one half of a dose, as per Colorado regulations — in order to avoid something akin to Dowd’s face-melting experience. One marijuana advocacy group has even rented billboards and put up magazine ads featuring the motto “Start Low, Go Slow.”

While high-potency edibles will always have a marketplace for thrill-seekers and patients who require heavy doses, the cannabis-lite strategy is opening the door to new consumers and expanding the cannabis industry from the inside out.

Sources:

http://www.nydailynews.com/life-style/eats/pot-shops-selling-milder-edibles-novice-marijuana-users-article-1.1968649

http://www.denverpost.com/news/ci_25475533/denver-coroner-man-fell-death-after-eating-marijuana

Photo Credit: Ginny

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Brief: Colorado’s Legal Marijuana Markets Grew Another 10% in August

Since its opening on January 1, the Colorado recreational marijuana market has been steadily growing.

Between the months of July and August, legal marijuana sales in Colorado — both recreational and medical — jumped another 10 percent. Reports now indicate that Colorado has earned $45.2 million via taxes and license fees for the nascent industry since the start of 2014.

According to new numbers released by the Colorado Department of Revenue, the month of August saw $33 million worth of recreational marijuana purchased by consumers in Colorado. An additional $32.2 million worth of medical marijuana was sold in dispensaries. In total, the first eight months of 2014 boasted approximately $180 million worth of recreational marijuana sold, while MMJ dispensaries raked in about $255 million.

Recreational sales first began to outpace medical sales in July, and though the monthly difference currently appears to be less than $1 million worth of product, such differences are expected to become even more distinct with time as additional recreational businesses are launched.

“Every day that goes by, or at least every week, we have new recreational marijuana businesses opening in Colorado, and that helps explain the increase in tax revenue,” said Mark Elliott, the executive director of Colorado’s Marijuana Industry Group. “Within the next month we’ll have the first shops opening in Aurora, which is a huge city. What we’re probably going to see is a huge bump in the recreational sales numbers beginning in another month or two because of Aurora coming on line.”

Sources:

http://www.thecannabist.co/2014/10/09/august-pot-taxes-sales-colorado-jumped-10-theyre-slowing/21187/

http://mmjbusinessdaily.com/colorado-marijuana-sales-balloon-11-in-august/

Photo Credit: MarihuanayMedicina

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U.S. DEA Flexes Muscles at Americans Investing in Canadian MMJ Market

Marijuana law reform has been an increasingly popular issue in the U.S. for years: activists are fighting left and right for basic human rights, while entrepreneurs are constantly on the look out for business opportunities to advance, strengthen, and further legitimize the market. With the U.S. markets currently wallowing in political turmoil, however, the Canadian medical marijuana market — which has been legalized on the federal level — has attracted a significant amount of American marijuana investors.

Some experts are arguing that American investors in the Canadian market are violating the Controlled Substances Act because all money earned from marijuana investments is still recognized by the American government as drug money, and such business is legally considered to be money laundering.. In fact, a recent Reuters report has confirmed that the DEA is “most interested” in such investments, and has been closely monitoring American money in Canadian marijuana stocks.

Following this announcement, medical marijuana stocks in Canada began to fall: Organigram Holdings (OGI.V) fell 6.9 percent, Bedrocan Cannabis Corp (BED.V) fell 4.2 percent, and Tweed Marijuana Inc (TWD.V) dropped 2.8 percent.

There has not been any action by U.S. authorities against Americans investing in Canadian medical marijuana. In fact, DEA spokesperson Rusty Payne admitted that the U.S. agency has “limited investigatory resources” for pursuing such investors, meaning the DEA must set its sights on the marijuana investors with the deepest pockets.

Nonetheless, many investors see lucrative opportunities in the Canadian marijuana market, which is expected to grow tenfold over (up to $1.3 billion Canadian) within the next decade. And while the Canadian market is not the only option available to Americans willing to risk overseas marijuana investments, it has received more U.S. investments than any of the European markets.

“We really like the Canada model, which is really unlike any other in the world,” said Christian Groh of Privateer Holdings, a Seattle private equity firm and one of the region’s largest players in medical marijuana. “What we’re doing here does not violate local, state, and federal law (in Canada).”

Another American investor who owns stock in the Canadian market, who chose to speak with Reuters anonymously, said, “There are so many companies investing in the Canadian side, and this (money-laundering risk) is just not something that is coming up as an issue. You can invest in pharmaceutical companies (whose drugs are not approved) in the United States. This is just another medicine.”

Sources:

http://www.reuters.com/article/2014/10/10/us-canada-marijuana-investors-idUSKCN0HZ0ZY20141010

Photo Credit: Ken Teegardin

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Brief: Latest Poll Shows Alaska Marijuana Legalization Initiative is Winning

A recent poll conducted by Ivan Moore indicates that Ballot Measure 2 — Alaska’s hotly debated initiative to legalize, tax, and regulate marijuana like alcohol — is winning by about 18 percentage points. The exact numbers of the poll indicate 57.2 percent in favor, 38.7 percent opposed, and 4.2 percent neutral or undecided. The sample size was 568 voters, and the margin of error is 4.1 percent.

This news will be a relief for marijuana advocates, as the last widely-publicized poll in Alaska showed the legalization initiative trailing behind its opposition. The latest poll is especially significant because it presented the question exactly how voters will be seeing it come November:

There is an initiative on the General election ballot that would tax and regulate the production, sale, and use of marijuana in Alaska. Criminal penalties would be removed for adults over the age of 21 who possess up to an ounce of marijuana, and constitutional protections allowing home cultivation would be preserved.

The subject of Alaska’s legalization campaign dominated national headlines a few weeks ago when ex-TV reporter Sharlo Greene announced on national television that she was quitting her job for marijuana advocacy. Greene also owns the Alaska Cannabis Club, and ran a very successful Indiegogo campaign following her heavy media exposure that raised more than $11,000 for the legalization cause.

Sources:

http://amandacoyne.com/politics/new-ivan-moore-poll-has-pot-up-by-18-points/

Photo Credit: Coleen Whitfield

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Founder of Marijuana Staffing Agency Interviewed by Ganjapreneur

With the rapid growth of the medical marijuana industry in several states, as well as the recreational cannabis industry in Washington and Colorado, a vast number of businesses have sprouted to support, assist, and consult the companies that are actually involved with growing, processing, and selling the plant itself. Viridian Staffing, a recruiting agency based out of Seattle, WA, is one such company.

Ganjapreneur, a cannabis industry business media outlet which launched over the summer, recently conversed with David Murét, co-founder of Viridian, to ask him some questions about the company and how it has helped connect marijuana businesses with job-seekers. When asked what his favorite aspect of working in the cannabis industry was, Murét replied, “We would have to say the people. The industry has been such a magnet for dynamic free-thinking innovators who aren’t nearly as stiff and creatively stifled as you find in so many other, more established industries. We also love working in an industry which, on the whole, places such a high value on triple bottom line business practices, which are both socially responsible and environmentally sustainable, particularly here in the Pacific Northwest.”

Murét also discussed some of the obstacles that he and his co-founder, Kara Bradford, have faced while building Viridian into the business that it is today. Breaking through the “pre-legalization” mentality of keeping business practices private and recruiting only family members and friends has been one of the primary difficulties, he says. Many of these business owners have become so set in their ways that they frequently have “a hard time wrapping their minds around the benefits of leveraging the knowledge and skills of external professionals.”

However, Murét is cautiously optimistic about the future of the industry. “While we agree with the majority of our colleagues that we are currently at the tipping point of the end of prohibition and that there is little that is likely to put the toothpaste back in the tube, we also have to appreciate just how much of this hinges on having a cooperative administration in the White House.”

The full interview is available on Ganjapreneur’s website, along with several other interviews with cannabis industry pioneers. Last month, Ganjapreneur announced its pilot episode of a video series, featuring John Evich from Top Shelf Cannabis, a retailer in Bellingham, WA which was the first store to serve the state’s recreational market earlier this year. Ganjapreneur also launched a marijuana business news-reader app on the Google Play marketplace earlier this week, and announced plans to follow up with an app for the Apple App Store in the near future.

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