Oregonians Might Get to Vote for Marijuana Three Times in 2014

Some people were surprised when Washington legalized marijuana in 2012 and Oregon did not, though the issue went up for vote in Oregon that year and received 47% support.  This year, Oregon voters are being faced with two different legalization initiative campaigns, and both of them seem likely to reach the ballot—one of those campaigns even includes a constitutional amendment to end marijuana prohibition, which could also make the ballot.  Three potential choices for legalization means three opportunities for the progressive state to join its northern neighbor in the quickly-expanding marijuana trade.

One option, the Oregon Cannabis Tax Act (OCTA), is essentially the same campaign that was nearly passed in 2012.  Headed by medical marijuana ganjapreneur Paul Stanford, this campaign is actually a two-pronged effort, with the Oregon Cannabis Amendment (OCA) being yet another possible avenue toward marijuana legalization.

The 2014 OCTA differs from the 2012 campaign mainly by adding personal possession and growing limits, neither of which were addressed in the 2012 campaign: “We got 47% allowing people to grow and possess unlimited amounts for personal use, but people want limits,” said Stanford.

The 2012 vote was so close, in fact, that the numbers strongly encourage a second attempt: “In Washington, they spent $7 million; in Colorado, they spent $4 million; here in Oregon, we spent… half a million, and we only lost by 112,000 votes,” Stanford explained.  This year’s campaign has gotten a few private funding pledges, but major marijuana activist groups like the Drug Policy Alliance and the Marijuana Policy Project have offered no support.  Nonetheless, Stanford believes that the OCTA has a good shot at getting passed this year, and even argues that it would have succeeded in 2012 with just a little more funding.

The second campaign is called New Approach Oregon.  The Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act is its brainchild; the bill, and also a near-identical counterpart that is a placeholder if the first one is rejected or delayed by Congress, would legalize the personal possession of up to eight ounces of marijuana and allow the personal cultivation of four plants.  The bill trusts the Oregon Liquor Control Board to regulate marijuana sales, but instead of a marijuana commission, there would be a predetermined tax set at $35 per ounce.

“We’ve received pledges of a million dollars to get us on the ballot, and we expect to have time to gather the necessary signatures,” said the New Approach Oregon campaign manager, Anthony Johnson. And on the subject of funding, Johnson explained, “our funding team has always included the Drug Policy Alliance, as well as other national funders.”

Both initiatives are expected to enter signature-collection soon, and will require 87,213 valid voter signatures to qualify for the November ballot.  The constitutional amendment, however, requires 116,284 signatures to be placed on the ballot.

But perhaps the most important aspect of the upcoming votes on marijuana legalization is the mutual respect and support across both campaigns.  As long as legalization is on the ballot and is passed in one way or another, both sides will be happy.  “Of course I’ll be voting for New Approach Oregon, and I encourage everyone else to,” said Stanford. In turn, Johnson clarified that “if he (Stanford) makes the ballot, we will support any measure that improves the status quo.”

Oregon is joined by Alaska and Washington D.C. in voting on the legalization and regulation of cannabis this year.  Alaskans will be voting first on their initiative in August, and will hopefully be joining Colorado and Washington’s thriving cannabis industry.  Oregon, at least, could become the first state to legalize marijuana twice (or even three times) in one election.

Sources:

http://www.thedailychronic.net/2014/30367/will-oregon-have-three-marijuana-legalization-initiatives-this-year/

Photo Credit: Edmund Garman

End


Cannabis Social Clubs: Is Barcelona Europe’s New Amsterdam?

Since Colorado’s foray into the legal cannabis industry, there has been speculation on whether or not Amsterdam would be surrendering its “Weed Capital of the World” title to the city of Denver.  Now however, it seems that Amsterdam may not even be considered the weed capital of Europe for much longer, if Spain’s progressive climate continues on its current path. In answer to the infamous Dutch “coffee shops,” Spanish cannabis enthusiasts have discovered an openly creative method to appreciate marijuana without needing to recede from the heart of society: the cannabis social club.

Social clubs are the Spanish alternative for cannabis access points: they are semi-exclusive locations dedicated to cannabis cultivation and consumption, and they have been recently spreading far and wide across the country.

But when and how did these cannabis clubs become possible without marijuana’s legalization? Nick Buxton, writing for the UK’s Red Pepper, describes how it happened:

“In 1974 the Spanish supreme court judged that drug consumption and possession for personal use was not a crime, while still deeming drug trafficking an imprisonable offence. This created a jurisprudence in which providing drugs for compassionate reasons, and joint purchase by a group of addicts – as long as it did not involve profit-seeking – were not crimes either. “

Modern cannabis clubs in Spain are nonprofit organizations which offer marijuana products exclusively to adult members of the club.  And while marijuana trade is technically still illegal, personal cultivation and consumption has been decriminalized. Additionally, the transactions between social clubs and their members are legally considered compassionate distributions: it’s just a bunch of self-admitting pot addicts hanging out and smoking their weed, not some black market drug cartel looking to commit even more heinous crimes for profit.

Most clubs have registration fees—usually a monthly commitment, but sometimes it only requires a one-time payment.  These clubs’ popularity has grown in recent years, but strict advertising restraints keep the locations from being too easily-publicized. Nonetheless, Facebook and Leafly pages provide sufficient information so that locals and tourists alike can find them, though the shops sell more to locals than to foreigners.

The clubs themselves usually offer between 5-15 different strains and about 8 different types of hashish or concentrates. Marijuana-infused edibles are not nearly as prevalent as they are in North America, and stoner tourists might be surprised to find that in Spain, as is common with most parts of Europe, people tend to smoke their marijuana—or, often, their hashish—mixed with tobacco in a rolled-up spliff.

The city of Barcelona has especially embraced Spain’s new role in Europe: there are currently at least 300 different social clubs within the city limits, and the city also hosts a massive event named “Spannabis” every year.  Spannabis is a celebration of marijuana that attracts tourists from around the world. The festival features more than 100 different booths and exhibits, all of them targeting or representing different aspects of cannabis culture. This year’s Spannabis took place earlier this month.

Sources:

http://www.leafly.com/news/lifestyle/will-barcelona-be-the-new-amsterdam-what-tourists-should-know

http://www.redpepper.org.uk/drug-club/

Photo Credit: Stefan Tärnell

End


One Pack of Joints Could Cost Less Than a Dollar

With marijuana legalization trends beginning to spark up around the globe, many have begun to wonder how the global economy might handle a world-wide green rush the likes of what we’ve witnessed in Colorado this past year. Some predictions based on current production costs, which is estimated between $2-3 per gram, put the price of a pack of marijuana joints that is similar in size (1 gram per joint) and quantity (20 joints per to a pack of cigarettes: 20 joints ) at about $50 per pack. Forbes contributor Tim Worstall, however, speculates that in a fully-legal and globalized green market, that same pack of joints would actually cost something a bit more like $0.50.

Currently, because the marijuana industry is federally illegal, these speculations are in the end nullified: marijuana is not legal on a global scale, or even on a national scale except in Uruguay, and there’s truly no telling when a globalized cannabis industry might happen. However, given that large tobacco companies like Phillip Morris (the makers of Marlboro) tend to gravitate towards money-making opportunities, as all corporate empires are inclined to do, it seems safe to assume that “big tobacco” would translate to “big marijuana” in a heartbeat if the necessary political conditions were satisfied.

And in a future world where cannabis has been completely legalized, Worstall argues that big players like Phillip Morris would take their immense capacity for funding marijuana production and go elsewhere. Malawi, a tiny country in southeastern Africa, is one such possibility: the country is ideally located in the right climate for growing cannabis, and tobacco companies are already quite familiar with Malawi, whose economy is hugely dependent on the country’s involvement in the international tobacco industry—Malawi tobacco is already commonly found in almost every Marlboro or Camel tobacco blend on the planet.  But perhaps most importantly: according to the UN Office of Drug Control, the wholesale price of cannabis on the black market there is somewhere between $3-4 per kilogram, or something like one thousandth that of the price here in the U.S.

There are absolutely other variables to consider—costs of packaging and transport, manufacturing, the inevitability of a steep government excise tax—but when we’re talking about price differences of this magnitude, Worstall’s $.050 prediction for a globally-produced pack of joints begins to make a little more sense.

But maybe the more important question is what would happen in a world where $0.50 might pay for enough joints to arguably hotbox a small condominium? If the cannabis industry ever reaches the globalized state described by Mr. Worstall, could we expect something like a 1000% excise tax to make that $0.50 pack of joints cost $5.00? As a buyer, I have to say I wouldn’t personally complain if that were the case.

Sources:

http://www.forbes.com/sites/timworstall/2014/03/22/global-capitalism-would-make-a-pack-of-fully-legal-cannabis-joints-cost-50-cents-not-50/

http://www.unodc.org/pdf/WDR_2006/wdr2006_chap5_cannabis.pdf

Photo Credit: Gavin White

End


Legal Cannabis Research: Dropping the Curtain on Marijuana Prohibition?

According to federal law, marijuana is a highly-dangerous drug. The DEA lists it as a schedule 1 narcotic, meaning that it has no federally-recognized medical properties. And until recently, though nearly half the states in the country have adjusted state laws to allow for medical marijuana programs, the federal government has remained inflexible on the issue, despite surmounting legalization and awareness efforts nationwide.

In Colorado, where buying a sack of weed is as easy as buying a bottle of scotch, some have questioned why cannabis research hasn’t become commonplace since the state’s marijuana-legalizing Amendment 64. “It remains illegal under federal law for any person to import, manufacture, distribute, possess, or use marijuana,” explains one memo from the University of Colorado’s president, and “Conducting unapproved marijuana-related research could adversely affect the University of Colorado’s ability to seek federal research funding or federal financial aid.”

Ultimately, researchers wishing to study marijuana can only do so at the grace of the National Institute on Drug Abuse (NIDA), no matter cannabis’ incredibly commonplace accessibility.

Appeasing federal bureaucracy on this issue has proven to be difficult, but not impossible. In a letter delivered earlier this month, the U.S. Department of Health and Human Services finally signed off on one determined research group’s request to study medical marijuana. The research team is called the Multidisciplinary Association for Psychedelic Studies (MAPS), and several scientists from the group have been pushing for years to get this experiment approved. NIDA has continually stalled their progress until now. The group’s goal is to demonstrate that marijuana, whether it’s smoked or vaporized, has distinct medical benefits in treating U.S. veterans suffering from PTSD.

When considering the feds’ long-overdue submission, MAPS communications director Brad Burge concludes, “It really is a concrete advance in how the U.S. federal government is approaching medical marijuana drug development research.” At least some part of the federal government is finally demonstrating awareness of the DEA’s absurdly-high classification of cannabis, and this ruling “clears the way for marijuana to actually be a prescription drug.”

“The idea is to get marijuana – the whole plant – approved as a prescription drug that physicians can then prescribe,” Burge explains, because right now doctors simply can’t go further than just recommending medical marijuana, and even that puts both doctor and patient at risk of federal prosecution.

Call me an optimistic observer, but this advancement may be the first of many political victories for the medical marijuana community and cannabis industry as a whole: if the feds are willing to allow medical research on a substance supposedly as dangerous and addictive as heroin or PCP, something has certainly changed for the good. And if it so happens that cannabis, a purely natural substance, is proven capable of actually replacing swaths of pharmaceutical chemicals and controversial prescription drugs, I believe we can trust in the already-riled American public to be truly scrambling to demand marijuana’s federal declassification.

Sources:

http://www.leafscience.com/2014/03/18/u-s-government-clears-way-medical-marijuana-research/

http://www.leafscience.com/2014/03/12/marijuana-still-limits-researchers-colorado/

http://www.thedailychronic.net/2014/27956/michigan-medical-marijuana-law-expands-include-patients-ptsd/

Photo Credit: Lenny Montana

End


The Ganjapreneur, Cannabis Industry News Outlet, Announces Website Overhaul

The cannabis industry has been dominating popular media headlines, influencing more and more of the American public with surmounting legalization and awareness efforts. And with this exciting new industry, new industry-specific news outlets were sure to follow.

The Ganjapreneur, one such outlet, has been regularly publishing articles featuring different aspects of the cannabis industry since last June. Recently, some website revamps and an increase in weekly articles has given the publication, which also offers a free weekly newsletter, a new look to better serve the marijuana community. Additionally, The Ganjapreneur has recently plugged into popular social media outlets, with updated Facebook, Twitter, and Google+ accounts designed to further ease the readership’s access to the publication’s news articles and editorials.

One article in particular received special attention, in which the Ganjapreneur questions President Obama’s real stance on marijuana prohibition. The article, “What Kind of Ex-Stoner is President Obama, Anyway?” claims that a true “ex-stoner” would know better than to fear that marijuana legalization would result in the attempted legalization of deadlier recreational drugs. The writer even calls on Mr. Obama to go ahead and “Light one up,” just in case he needed a reminder of what the effects of the drug truly are.

The Ganjapreneur’s media coverage spans a variety of topics about the cannabis industry. News from Washington and Colorado, where recreational marijuana has been legalized, will surely frequent the weekly newsletter. There are also articles covering the medical marijuana community on a more national scale, along with reports on legalization efforts and political updates from around the country. A stand-alone area of the website is dedicated to humor and editorials, a subsection aptly named “Rants and Raves,” for a more opinionated flavor of writing.

For those individuals who have been following the media conversation surrounding this new industry and wish to chime in themselves, the Ganjapreneur offers a section of their website where would-be contributors can send in articles of their own to be reviewed and published as guest writers.

End


Marijuana May Improve Cognitive Functions in College Students

Marijuana-use has long been associated with dampening brain development and the hindering of very basic cognitive functions, especially among teenagers and young adults.  Wild theories like those from the infamous Reefer Madness even permeated the American public for some time; and, unfortunately, researching the plant has been historically impossible, so many of these theories have not been fully investigated. But while most marijuana-minded researchers are inclined to hold off while the plant is still illegal to study in the U.S., some enterprising individuals at the University of Minnesota have found an interesting way to look at marijuana use and its effect on teenage cognitive development.

Their study, recently published in the Journal of Clinical and Experimental Neuropsychology, consisted of cognitive tests, comparing the results of 35 non-users with 35 students who had been regularly smoking marijuana since before the age of 17. Ultimately, the research group reached some surprising conclusions: college students who regularly use marijuana were both “high functioning” and “demonstrating comparable IQs to controls and relatively better processing speed.”

Participating subjects were all between 18-20 years old, and were told to refrain from consuming any substance for at least 12 hours before the study.  According to the researchers, “Marijuana use during this age span has been most strongly associated with cognitive impairment.”

The results specifically noted that marijuana users performed better on tests of processing speed and verbal fluency, while scoring slightly lower on tests of motivated decision making, engagement, and verbal memory.  Smokers and non-smokers had comparable results in tests of working memory and verbal learning.

The goal of the study was to provide “a comprehensive cognitive profile of college-aged daily marijuana users,” and while the research team discloses that there yet remains substantial room for further testing, one can only hope that the unexpected findings of this study will someday serve as grounds for more in-depth research on the illegal plant that has saturated in the American sociopolitical spotlight for decades.

Sources:

http://www.leafscience.com/2014/03/14/marijuana-users-better-cognitive-skills-study-finds/

Photo Credit: Orin Zebest

End


Washington’s MMJ Market to Remain in Limbo

The medical marijuana program in Washington State has been the target of many controversies since the revolutionary passage of Initiative 502, the law that legalized recreational marijuana-use across the state in late 2012.  According to the Seattle Times, there had been much pressure for state lawmakers to pass regulations for medical marijuana, but after an eleven-hour session last Thursday the Legislature adjourned for the year without taking any further action on the subject.

“Even with the help of the governor, it was too much to get beyond at the eleventh hour,” said Senator Ann Rivers.  Rivers was sponsoring a bill that would have amended I-502 to address concerns over marijuana regulations, but it required a two-thirds supermajority and was opposed by House Republicans who wanted some allocation of marijuana tax revenue for more localized governments.  House Democrats are hesitant about such a notion, desiring more information about the economic effects of recreational marijuana before sharing tax revenues at the local level.

Medical marijuana supporters then turned their attention to U.S. Attorney Jenny Durkan, wondering if she would target medical marijuana growers and businesses simply because Washington’s medical market remains so largely unregulated. Durkan responded on Friday, saying that while all marijuana establishments are still federally illegal, the feds would be focusing on those businesses that specifically violated other policies outlined by the Department of Justice: namely, those concerning money laundering, cross-state drug trafficking, and supplying marijuana to minors.

Kari Boiter, the Washington State coordinator for Americans for Safe Access (the nation’s largest medical marijuana advocacy group), was not necessarily comforted by Durkan’s words: “That doesn’t give patients much reassurance that we won’t be targets,” she says.

Some lawmakers in the state capitol believe that Governor Jay Inslee should designate a task force for handling the medical regulations, but Sen. Rivers has the sense that this is unnecessary. “As long as we have interested parties engaged, I think we can get it done without a formal title.”

State lawmakers and a spokesman for Gov. Inslee have claimed that there remains enough time to place new regulations for Washington’s medical marijuana system before the feds may find it necessary to crack down on the state’s medical program, though any real action must wait until the next legislative session in January, 2015.

In the meantime, medical marijuana dispensaries and patients across Washington find themselves in a state of limbo in regards to state law.  Seattle’s approximately 200 dispensaries are in an especially confounding situation: the Seattle City Council already passed a provision requiring all marijuana dispensaries (medical and recreational) to have acquired a state-approved license by January 1st, 2015—this now appears to be an impossible feat, as such a license is currently only offered under I-502 until further regulations are passed, hopefully during the next legislative session at the beginning of next year.

Additionally, last month the Washington House voted to ban medical dispensaries as of May 1st, 2015; the state’s medical program will be dropped then, and patients will be required to purchase their medicine from retail marijuana establishments. This move is clearly an effort to place the medical marijuana system under similar regulations as the budding recreational market, which would both undercut economic competition that could disrupt the recreational market and hopefully appease the onlooking federal government.

Sources:

http://seattletimes.com/html/localnews/2023134465_potlegislaturexml.html

Image Credit: Aram Kudurshian

End


$2.4 Million to Colorado in Recreational Marijuana Tax Revenue

The numbers are in, and Colorado has reportedly earned a whopping $2.4 million from recreational marijuana tax revenue for the month of January. An additional $1.4 million in taxes was raised from the medical marijuana market. Experts predict that, if these trends continue, Colorado can expect up to $40 million by the end of the year, purely from marijuana tax revenues.

The Colorado Department of Revenue has released information showing that $14 million worth of pot was sold in Colorado this January, the first month of the state’s great legalization experiment.  It is likely, however, that these numbers are a slightly skewed prediction of what’s to come for Colorado’s cannabis industry.  This is because many cannabusinesses were still in start-up mode, and those that had opened experienced a predictable rush of customers from around the state (and nation, and probably the world) wanting to be among the first to pay for fully regulated and legalized weed.

“This is revenue directly out of the hands of cartels,” said Brian Vicente, a Denver attorney who helped pass the law. “These tax numbers will probably grow over time, but since it’s a new market, will have to wait and see.”

Marijuana sales in Colorado currently undergo three separate taxes from seed to sale, with sales tax rates reportedly as high as 21.12% in some places in the state capitol.  In addition to the sales taxes, there is also a “retail marijuana excise tax” of 15% across the entire state. This tax applies on the first sale or transfer of marijuana from wherever it was grown and processed to wherever it might be going next, and while the cost of the tax can be included in the product pricing at retail establishments, legal pot sellers are not allowed to label the spike in price as a consumer tax: it is a tax on the industry itself.

Despite the severe and many-tiered taxation system in place, consumers and producers alike have been relatively quiet on the issue. People don’t seem to mind paying the extra price for legalized access, and the state of Colorado is already making plans on how to spend its first year’s worth of marijuana tax money.  The legalization of marijuana in Colorado came with an original restriction that the first $40 million in tax revenue must go toward school construction, but beyond that Gov. John Hickenlooper has proposed using the money to advance marijuana-related programs, such as funding efforts to keep children away from drugs, educating the public about the general dangers of substance abuse, and a now-quite-relevant, state-wide campaign against stoned driving.

If the office of Gov. Hickenlooper’s predictions are accurate, Colorado can expect a grand total of $188 million in marijuana tax revenue over the fiscal year, which begins this July.

Sources:

http://www.thedailychronic.net/2014/27829/colorado-raises-2-1-million-recreational-marijuana-taxes/

http://www.forbes.com/sites/kellyphillipserb/2014/03/11/its-no-toke-colorado-pulls-in-millions-in-marijuana-tax-revenue/

Photo Credit: Jonathan Piccolo

End


Washington D.C. Decriminalizes Pot, Congress Might Have Something to Say About It

The U.S. capital joined the popular movement to end marijuana prohibition last week. In a groundbreaking effort, the D.C. Council passed a bill last Tuesday that decriminalizes marijuana, replacing current criminal penalties for the possession of one ounce or less with a $25 civil fine.  Smoking marijuana in public will still be a misdemeanor crime, punishable with a maximum fine of $500 or 60 days in jail.

The legislation passed with a 10-1 vote, and now heads to the desk of Mayor Vincent Gray, who has already expressed support for decriminalization and is expected the sign the bill. However, the legislation will not become law until Congress has completed the next legislative review, as required by federal law, which could extend into the summer months.

House Speaker John Boehner of Ohio claims to be unfamiliar with the bill, but has verified that Congress will be looking into the matter.  While Congress technically does have the authority to overturn local District of Columbia laws, it hasn’t felt the need arise in more than 20 years.  Some expect that Congress’ reaction to the capital’s dramatic change in drug policy may provide some insight about the federal government’s strategy for handling the popular marijuana legalization phenomenon.

Advocates for the bill are elated by the expected social benefits from decriminalization. “For far too long, people of color have been disproportionately and unfairly arrested and marginalized for marijuana possession in the District of Columbia,” said Grant Smith of the Drug Policy Alliance. “D.C. Council members took the first critical step today toward ending the selective enforcement of marijuana prohibition policies that have perpetuated racial disparities in the criminal justice system for decades.”

Marijuana-related judicial punishments have indeed been shown to disproportionally target African American residents in the District of Colombia.  According to a 2013 survey by the Washington Lawyers Committee, nine out of ten criminals being punished for marijuana-related crimes in the nation’s capital are of African descent.  Other studies have shown that African Americans are eight times as likely to be arrested for marijuana possession than white people, though surveys have shown that marijuana consumption is more or less balanced across racial divides.

Smith, who works as the policy manager for the Drug Policy Alliance, has said that “Councilmembers heard the public’s demand that marijuana arrests end and have passed model legislation that is one of the strongest marijuana decriminalization laws in the whole country. Mayor Vincent Gray should sign and ensure this bill goes to Congress for its review without delay. With every day that passes, more District residents’ lives are irrevocably harmed with these senseless marijuana possession arrests.”  Dan Rifle, director of federal projects with the MPP, also claimed “This means that, outside of Washington and Colorado, marijuana penalties are now less punitive in our nation’s capital than anywhere else in the country!”

In a poll taken of the city in January, the Washington Post learned that 64% of D.C. residents not only supported decriminalizing marijuana, but also legalizing it for regulation and taxation purposes in a manner similar to Colorado and Washington State.  The D.C. Council members are now considering two additional marijuana reform measures: one which would implement such a system to fully regulate recreational marijuana use among adults, and the other would permanently seal all citizens’ marijuana-related arrest and conviction records.

Sources:

http://www.thedailychronic.net/2014/27769/d-c-council-passes-far-reaching-marijuana-decriminalization-bill/

http://www.thedailychronic.net/2014/27795/boehner-congress-will-look-washington-dc-marijuana-decriminalization-bill/

http://www.theverge.com/2014/3/4/5470934/washington-dc-votes-to-decriminalize-marijuana

Photo Credit: Humberto Romeno

End


WSLCB Issues Washington’s First Recreational Marijuana License

Washington State’s first recreational marijuana license was designated to Spokane’s Sean Green yesterday by the Washington State Liquor Control Board in Olympia.  Green has prior experience operating medical dispensaries in Spokane and the Seattle suburb of Shoreline.  His company is named “Kouchlock” and, based in Spokane, first plans to sell young marijuana plants to other interested growers as their licenses get distributed in the coming weeks, and will eventually focus on marijuana production for retail consumption.

“This is a historic day,” said Board Chair Sharon Foster, according to the WSLCB’s announcement email yesterday morning, “The hard work and preparation this agency has done has laid the foundation to make this pioneering endeavor a success.”

The Board praised Green’s application, which was also the first application to be fully completed: “We’re proud of you. We now know there are folks out there who follow the rules and are willing to be participants of this brave new venture in Washington state.”  Not that Washington actually has much reason to worry about a lack of willing participants: the Board says it had expected about 2,200 applicants to express interest, but actually received more than 7,000 applications.  Green’s application process required criminal and financial background checks, developing a fully-laid-out business plan, and finding a proper site for his business located far from schools or daycares.  

Green, naturally, is also quite excited. “Cannabis prohibition is over,” he happily declared to a room of supporters after receiving the license.  “I’m coming home with jobs, Spokane,” he promised.  His 3rd-tier license allows for both production and processing of cannabis products, though his site of operations must be no larger than 21,000 square feet.  Under his Board-approved business plan, he expects to someday employ between 30 and 50 employees.

“It’s easy to talk about what marijuana legalization might look like,” says Seattle attorney Alison Holcomb, who headed the state’s legalization campaign in 2012. “It’s a much different thing to see it roll out.”

Of course, the landmark licensing was unable to please every onlooker.  Derek Franklin, president of the Washington Association for Substance Abuse and Violence Prevention, claims to be troubled by Green’s company’s name and his personal goal for a future product.  The name, ‘Kouchlock,” sends a message alluding to a state of stonedness that prevents even rising off the couch–Green’s coinciding dream product, the “super joint,” has been described as an “ultra-strong marijuana cigarette made with cannabis oil and flowers.”

Franklin’s complaint? “There doesn’t seem to be much attention being paid to public health and public safety,” he said.  While that may sound more like an issue with Green’s business plan and less like a complaint about the WSLCB’s licensing process, marijuana remains federally illegal and the political climate of the cannabis industry will likely remain uncertain until that changes.

Sources:

http://www.king5.com/news/marijuana/first-washington-state-marijuana-license-248549291.html

http://abcnews.go.com/US/wireStory/washington-state-issues-legal-pot-license-22786308

http://nypost.com/2014/03/06/washington-state-issues-first-legal-marijuana-business-license/

Photo Credit: Brian Stalter

End


Banking in Cannabis Industry Seen as “Trade Secret”

The marijuana legalization movement was accompanied by an explosion of helpful information about how to get your budding marijuana business off the ground.  How-to-grow handbooks, nationally-cooperative legal campaigns, and general guidelines for navigating the new laws in Colorado and Washington were easily found and vastly supported by members of the industry.  Now, that sense of camaraderie among ganjapreneurs is slipping away as secretive marijuana banking enters Colorado’s legalized playing field.

According to The Denver Post, whether or not a bank is cooperating with businesses in the cannabis industry has become a closely-guarded secret in Colorado. Though the federal government recently passed guidelines that allow for banks to do business with the cannabis industry, banks have so far been generally reluctant to publicly engage with the industry.  For this reason, pot shop owners don’t spread the word if they find a bank that will–either secretly or unknowingly–handle their money.

“It’s not surprising that information isn’t shared readily, given the history of the industry with banking,” said Taylor West, the deputy director of the National Cannabis Industry Association. West’s comment reflects on the many recorded occasions in which marijuana businesses have had their bank accounts closed on them shortly after the bank learned of the business’ true nature. “It’s unusual and cruelly ironic to have an industry that’s being denied basic banking services, then threatened with the loss of those services if they share that they have it,” West surmised.

According to one anonymous ganjapreneur, “They (the pot shops) all act like it’s a top-secret thing since they already have a banking relationship. They think if they give that data away freely, it might impact their ability to continue their banking relationship.”

As a result of all these complications, ownership of a bank account is greatly coveted by proprietors of marijuana retail establishments: not only does it simplify the sales process and increase store safety, but it also provides a leg up against other pot stores who don’t have access to bank services, and who must still rely on a purely cash-based economy.  And, in true entrepreneurial spirit, someone with a bank willing to serve them is going to strategically keep their mouth shut and maintain that economic advantage over the competition.

What might it take for banks and cannabusinesses to maintain public relations without fear of federal prosecution? Well, some members of the banking industry have accused the federal government’s current guidance of being merely a “yellow light” for marijuana banking. Don Childears, CEO and president of the Colorado Bankers Association, has further affirmed that “banks need permanence of law versus changeable guidance.” 

Whether or not this trend of erring on the side of caution is going to die off in the near future, or if this will actually remain an important banking issue until the federal government decides to reclassify (or declassify) marijuana on the national level, is completely up for speculation. As things stand now, however, being secretive about the relationship between a bank and marijuana business is a win/win situation for both parties.

Sources:

http://www.denverpost.com/marijuana/ci_25244700/where-colorado-pot-shops-bank-is-closely-guarded

http://mmjbusinessdaily.com/top-co-banker-yellow-light-is-not-enough/

Photo Credit: Jordan Wunderlich

End


Washington Updates I-502 Rules to Foster Competition

The Washington State Liquor Control Board made a ruling last week that should spark the hopes of small-scale ganjapreneurs around the state. The change dramatically affects how licenses are distributed to marijuana producers, cutting the number of licenses a person or company can have to only one (from a previous potential for three) and limiting the amount of product they can produce to only 70% of what the licenses originally allowed.

Claiming that many applicants either are not ready for the full growing capacity for which they’ve applied—or have simply applied for multiple licenses with the intent of only using one to begin with, saving the other licenses for later expansion—the WSLCB released this statement following its decision to limit the number of producer licenses:

“The Board closed a 30-day application window for marijuana licenses on December 20, 2013. During that period the agency received 2,858 marijuana producer applications. The plant canopy of these applications far exceeds a manageable plant canopy set by the Board in its rules. Of these applications, over 900 are for more than one marijuana producer application. The rules currently allow for up to three licenses per licensee.”

In an effort to meet a manageable plant canopy for marijuana production, the Board will file an interim policy that limits any qualified entity or principals within any entity to one marijuana producer license. If any entity or principal has more than one marijuana application pending, staff will contact the applicant and offer them the option of withdrawing their additional applications for a refund or having their additional applications held up to one year or until the Board determines more marijuana producer licenses are needed.”

According to a news release by Board Chair Sharon Foster, the WSLCB’s action last week “clears an obstacle and allows the agency to begin issuing marijuana producer and processor license in the coming weeks… We believe this is the most fair and equitable way to get the market up and running.” And while some prospective growers feel cheated by the rule changes, small-scale production operations are expected to benefit from a less-competitive market.

In the most extreme cases—businesses seeking the maximum of three licenses—prospective production sites face a drastic decrease in available growing space: previously the maximum was 90,000 square feet, and it has now been reduced to 21,000 square feet.  Some business owners and other investors have already purchased property and general infrastructure for their growing operations, and now feel particularly duped by the WSLCB.  Such is the case for Ryan Agnew, consultant for some investors who applied for production licenses. “I’m blown away,” he says, and informs that the new limits will cripple plans already set in motion by his group.  

On the smaller side of the market though, it’s a different story. Christi Masi and Scott Masengill of Seattle are partners in the industry (and in marriage), and they hope to receive a license for pot production in the coming weeks.  Thanks to the Board’s recent ruling, their chances for success in the market as a small, private operation have greatly increased. “I do feel like the state has done a good job of setting things up in a way that we will all have the opportunity to succeed at this,” said Masi. “I really appreciate that they are kind of protecting the small ‘ma and pop,’ which we totally are… The state has decided that the small guy gets a chance here, and that feels good.”

Sources:

http://blog.seattlepi.com/marijuana/2014/02/20/washington-state-just-shifted-marijuana-market-from-big-weed-to-ma-and-pa-weed/#14194103=0&20340101=0

http://blog.seattlepi.com/marijuana/2014/02/19/board-reduces-amount-of-marijuana-each-business-can-grow/#18853103=0&20340101=0

http://www.liq.wa.gov/publications/releases/I-502_License_FAQII_02-18-14.pdf

Photo Credit: The Other Dan

End


Marijuana Advertising Lawsuit Sparks 1st Amendment Discussion

On Monday, February 10th, two popular alternative magazines, High Times and Colorado’s own Westword, filed a federal lawsuit against the state of Colorado.  The magazines argue that the state’s strict rules covering marijuana advertising are unjust and a violation of their 1st Amendment right. They called for a preliminary injunction against the regulations—on February 14th, a US District Judge rejected the case, but has allowed for adjustments to be made for further review.

Currently, the rules of Colorado’s Amendment 64 state that “A Retail Marijuana Establishment shall not engage in Advertising in a print publication unless the Retail Marijuana Establishment has reliable evidence that no more than 30 percent of the publication’s readership is reasonably expected to be under the age of 21.” This also affects advertising in television, radio, and outdoor advertising as well, though only recreational businesses are affected by the state’s rules—medicinal businesses are not bound by the advertising restraints.

The lawsuit claims that the regulations are an unconstitutional restriction of free speech, calling the restrictions irrational.  The plaintiffs argue that marijuana establishments have been singled out for “more stringent advertising restrictions than those regulating the alcohol industry,” despite the fact that “the Colorado Constitution calls for the regulation of marijuana ‘in a manner similar to alcohol.'” Their document additionally argues that “defendants have not and cannot produce sufficient evidence to demonstrate that any of its heavy-handed restrictions at issue directly advance any arguably substaintial government interest(s).”

The case was rejected by Judge Marcia Krieger on the grounds of neither High Times or Westword having the right to claim the legal injunction.  As she writes, “the regulations in question do not address conduct by the Plaintiffs—who are publishers. Instead, the regulations limit conduct by advertisers—i.e, retail marijuana establishments. Thus, it is retail marijuana establishments who seek advertising who are directly affected by enforcement of the regulations.”

Past courts “have allowed publishers to challenge regulations that restrict the speech of putative advertisers if there is a colorable assertion that the regulation had a ‘chilling effect’ on the potential advertisers,” Krieger admits, but the lawsuit as written doesn’t offer enough “factual elaboration” on the subject for her to allow it.  Additionally, she argues that “there is no allegation that any advertiser has been discouraged from seeking to place advertisements with either of the Plaintiffs”—and indeed, in one of Westword‘s most recent issues, there were are least 9 ads featuring recreational marijuana companies.

Steve Suskin, attorney for Westword, says that the magazine’s decision to join High Times in the lawsuit was “really more a matter of principle than it is a burning need to have a change in the law in order to continue serving the marijuana industry in our advertising function.”  He writes, “Westword is reviewing the Court’s opinion… and considering its options,” adding that “First Amendment litigation is complex and our litigation counsel, David Lane, remains confident Westword can meet the procedural requirements set forth by the Court for legal standing to challenge this law.”

The magazines have until March 7th to file further evidence of their complaint.

Sources:

http://www.thecannabist.co/2014/02/12/magazines-sue-colorado-high-times-westword-over-marijuana-advertising-restrictions/4469/

http://blogs.westword.com/latestword/2014/02/marijuana_advertising_lawsuit_injunction_rejected.php

 

End


Rolling in the Green: Expectations for the Cannabis Boom

Right now someone is legally purchasing marijuana for recreational use in Colorado. Actually, lots of people are buying marijuana—more than was initially expected. Recent reports state that Colorado has raised its predicted tax revenue for the next fiscal year from $70 million to just under $100 million based on $610 million in expected sales. When Washington State starts legal sales, estimates point to $190 million in tax revenue over the next four years.

Those are really big numbers and big numbers talk—and they aren’t just limited to recreational purchases. Medicinal marijuana, which is currently available in 20 states and DC, is taxable as well.

Another big number: 30 more states are considering marijuana reform in one way or another. This includes efforts for full legalization, decriminalization and medicinal use. On top of that, experts have predicted that legal marijuana sales could reach over $10 billion by 2018.

And now, thanks to new guidelines issued by the Obama administration, it will be a lot easier for banks to provide services to marijuana businesses that have been forced to work on a cash-only basis because banks feared retaliation due to marijuana’s status as a schedule one drug under federal law.

Of course, the new guidelines for banks aren’t just a favor to the growing marijuana industry—they also set up a system in which the government can closely monitor and oversee the flow of revenue derived from marijuana sales. The federal government has always reserved the right to prosecute if they see fit, mainly if they feel businesses or banks aren’t in total compliance with the guidelines set forth. It is also unclear how banks will react to these new guidelines.

In light of these developments, now more than ever, investors and entrepreneurs are getting into the marijuana business. State governments have also appeared more eager to embrace the trend as their operating budgets dwindle. The market is there, and it is growing. Legalization in Colorado has been a success so far, and it is increasingly looking like it will be in Washington State as well. Uncertainty is giving way to certainty.

But this growing certainty is leading to an industry that is becoming highly competitive, leading some people to speculate about an industry bubble, like the dot-com boom of the 90’s. The bubble would pop as larger, more established businesses start to edge out the majority of other start-ups in the industry. However, one thing is becoming clear: marijuana is here and it’s here to stay.

Sources:

http://rt.com/business/marijuana-related-business-boom-246/

http://www.nytimes.com/2014/02/15/us/us-issues-marijuana-guidelines-for-banks.html?_r=0

http://www.startribune.com/lifestyle/homegarden/246192301.html

Photo Credit: Sakeeb Sabakka

End


Ganja for Grandma? Researching Medical Cannabis for the Elderly

We are all familiar with the image of the forgetful stoner. Almost every smoker can recall a time where they couldn’t remember a name or fact; but now, almost counter intuitively, studies are beginning to show that marijuana use may be beneficial for older generations, especially those experiencing dementia.

Last July I wrote about David Nutt and his calls for government regulation to be loosened so that they no longer restrict research into the benefits and hazards of marijuana. These calls have not stopped—especially in light of the legalization of recreational use of marijuana in Washington State and Colorado and the subsequent domino effect those legalization efforts are having when it comes to other US states considering either legalization or decriminalization.

Now that the use of marijuana, both recreationally and legally, is becoming less of a taboo subject there have been calls for more studies on what illnesses and health issues marijuana is an acceptable treatment for as well as how patients will be affected in the long term.  As evidence builds that marijuana can be an effective treatment for medical issues that are faced by the elderly, questions have been raised about just how effective it is and what affect it will have on that population.

A recent study, conducted at Radboud University Medical Center and published in the February issue of Ageing Research Reviews, addressed marijuana use in the elderly, stating “although trials studying medical cannabinoids included older subjects, there is a lack of evidence of its use specifically in older patients.”

Specifically, marijuana use has in some cases proven effective at treating pain, nausea, loss of appetite and even dementia in the elderly. The authors of the study report that there are only five studies that directly relate to marijuana use primarily in elderly patients. In the opinion of the authors, it is not enough evidence to effectively draw conclusions about the affect medicinal marijuana use has on the aging mind.

The lack of a significant volume of research could lead to some doctors to avoid prescribing marijuana, simply because they aren’t confident in the available medical research.

In the report, the team states that, “Adequately powered trials are needed to assess the efficacy and safety of cannabinoids in older subjects, as the potential symptomatic benefit is especially attractive in this age group.” And also that, “It is highly worthwhile to conduct well designed studies on the efficacy of cannabinoids in symptom management in dementia, given the initial positive results on weight loss and agitation in this patient population, and the great lack of other effective and safe strategies in this field.”

Studying how marijuana affects both the aging population and younger generations is important because research has shown that young and old brains react to marijuana differently. In fact, some researchers predict that use of marijuana could potentially prevent the development of illnesses like Alzheimer’s disease later in life. In an interview with Leaf Science, neuroscience professor Gary Wenk stated, “I think all we can say safely so far is using low doses of marijuana for prolonged periods of time at some point in your life, possibly when you’re middle-aged to late middle-aged, is probably going to slow the onset or development of dementia, to the point where you’ll most likely die of old age before you get Alzheimer’s.”

If in addition to treating existing conditions marijuana could also be used for preventative medicine, it would be a total game changer. And, in that light, it seems appropriate for studies on marijuana’s effects on all ages to proceed without restriction.

Sources:

http://www.leafscience.com/2014/02/11/experts-want-research-medical-marijuana-elderly/

http://blog.sfgate.com/smellthetruth/2014/02/04/marijuana-prevents-alzheimers-disease-major-researcher-suspects/

http://www.leafscience.com/2014/01/30/smoking-marijuana-might-best-way-prevent-alzheimers-disease/

Photo Credit: Leah Borchert

 

End


Washington House Approves Vote to Ban Dispensaries

The Washington House of Representatives voted on Monday to approve the bill H.B. 2149.  The bill seeks to phase out the state’s medicinal marijuana dispensaries, reacting to the fear that these businesses will detract from the recreational market.  The medical market is currently poised to present unregulated competition for the taxable, state-licensed recreational stores.

The vote passed with an overwhelming majority of 67 to 29. Patients will be able to buy their medicinal marijuana from the same stores serving the recreational market, which will become the only stores selling the drug as of May 1, 2015. This is when the state’s medicinal dispensary program will be dropped. Legal pot stores under Initiative 502 are scheduled to open sometime this summer.

The medicinal market has many angry spokespersons speaking against the bill’s passage. Steve Sarich, the executive director of the Cannabis Action Network, says “Our cowardly legislators voted to effectively end medical cannabis here. Patients are in shock. If the Senate votes to pass this bill, Washington will be the first state to end medical cannabis.” Sarich originally opposed I-502 because of the negative impact he expected it to have on patients.

Vivian McPeak, executive director of Seattle’s Hempfest, warned: “Those who predicted I-502 would be a catastrophe for medical patients have been vindicated.” He explained, “The federal government is riding roughshod over the state legislature and the governor’s office to clean up the Wild West of medical marijuana in Washington State. I think that may be the single biggest factor.” McPeak also touched on the issue of a “widely held perception among mainstream people and politicians that medical marijuana is mostly a farce and an excuse for healthy people to gain access to pot, and for others to profit off its untaxed, unregulated sales,” citing these assumptions and still others as the reasoning behind the proposed discontinuance of Washington’s medicinal market.

But will the bill’s passage actually hinder patients’ ability to attain their medicine? In a literal sense, it will: H.B. 2149 will cut the number of plants that a patient or caregiver can grow from 15 to six. It will also reduce the quantity of marijuana one can possess from 24 ounces to three (this still allows patients to carry up to three times the amount of a recreational consumer, whose limit is one ounce). Patients will also have tax-free access to their medicine, and will still be able to claim immunity from arrest for possession or cultivation of the drug – to a certain extent, of course.

In Colorado, currently the only other US state with legal recreational marijuana, retail stores have been selling to both recreational and medical consumers since New Years. Washington is clearly attempting to incorporate both cannabis markets in a similar fashion, but there is one key difference between the states: Colorado’s marijuana retail shops were selected from the state’s existing medical dispensaries, keeping members of the medical community integrally associated with the recreational market; Washington’s stores will have been selected from a lottery, and practically anyone could have applied for a ticket.

The bill is supported by state Democrats, and opposed mainly by state Republicans. The Washington Senate is expected to ratify the bill soon.

Sources:

http://www.forbes.com/sites/jacobsullum/2014/02/18/washington-house-overwhelmingly-approves-ban-on-medical-marijuana-dispensaries/

http://www.celebstoner.com/news/marijuana-news/2014/02/19/washington-house-votes-to-phase-out-dispensaries/?ref=6&ref_type=tab

Photo Credit: Ian Chapin

End


Feds Allow Banks to Serve Cannabis Industry

Last Friday, the federal government carried through on last month’s promise and delivered new banking regulations intended to help banks include legal marijuana businesses among their clients. Previously, banks had been required to turn away customers with marijuana companies, which are technically operating in violation of federal law, and this has left the cannabis industry in a cash-only environment. Now, through joint memos issued by both the US Justice Department and Treasury Department, banks have a federally-approved guidance system to accepting marijuana money.

According to the new regulations, marijuana companies that are properly licensed by the state can be approved for accounts, though the banks must verify the business’ legitimacy in advance. Banks will also be expected to remain aware of the products sold – and type of customers served – by the marijuana businesses, and they are to alert the authorities if improper transactions are found.

Some industry members believe that the first banks to take advantage of these new regulations will be large, commercial banks such as Bank of America and Wells Fargo: they can actually afford to pay any fines if faced with federal prosecution.  Still others argue the opposite, that small and medium-sized banks will be more interested in handling the financial transactions of legal marijuana businesses.

However, other industry experts (like Don Childears, CEO and President of the Colorado Bankers Association) predict that business relationships between banks and marijuana companies will be logistically impossible without real congressional intervention.  “Banks need permanence of law versus changeable guidance,” Childears argues. “At best, this amounts to ‘serve these customers at your own risk’ and it emphasizes all of the risks.”

Analysts say that, while the drug remains classified as a Schedule 1 narcotic, and is thereby legally equivalent to heroin, PCP, and LSD, most bankers will remain reluctant to do business with marijuana dealers. Recently, a congressional coalition publicly pushed for President Obama to reclassify marijuana, citing the absurdity of marijuana’s equal status to such extreme narcotics while 20 states and the union’s capitol have all legalized the substance for regulated, medicinal use. If the drug were officially declassified or even reclassified to a lower priority, banks would be more willing to partner up with the cannabis industry.

What is clear is that the cannabis industry is now on the edge of a potentially huge breakthrough.  The new, billion-dollar industry has a go-ahead from the federal government to join the banking sector… whether or not the banks will choose to accept these new regulations and provide marijuana businesses with their services remains to be seen.

Sources:

http://mmjbusinessdaily.com/breaking-feds-release-banking-guidance/

http://mmjbusinessdaily.com/top-co-banker-yellow-light-is-not-enough/

http://www.usnews.com/news/politics/articles/2014/02/14/govt-lets-banks-marijuana-sellers-do-business

http://www.thcbiz.com/news/industry/1986-banks-get-guidance-on-legalized-marijuana-businesses.html

http://www.washingtonpost.com/business/economy/obama-administration-clears-banks-to-accept-funds-from-legal-marijuana-dealers/2014/02/14/55127b04-9599-11e3-9616-d367fa6ea99b_story.html

Photo Credit: Teddy James

End


States and Feds Show Signs of Wavering Marijuana Prohibition

With recreational use legalized in two different states, 2013 was a big year for marijuana enthusiasts.  2014 is gearing up to be even bigger and more monumental if social and political patterns are to be trusted.

The nation has watched Colorado and Washington very closely since the states began the great legalization experiment last year, and with recreational stores open in Colorado for one and a half months already, it’s clear that marijuana legalization is not, in fact, the end the world. The state of Colorado is benefiting both socially and economically, and other states are now considering hopping on with this legal reefer madness.  According to the NORML blog, almost 30 different states are currently considering marijuana law reform in one way or another.

The 14 states considering recreational legalization are: Arizona, Hawaii, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Vermont, and Wisconsin. 12 states (and the District of Colombia) are considering decriminalization: Alabama, Arizona, DC, Hawaii, Illinois, Louisiana, Michigan, Missouri, New Hampshire, New York, North Carolina, South Carolina, and Wyoming. 11 states will vote on medical marijuana legislation: Florida, Kansas, Kentucky, Hawaii, Michigan, New York, Pennsylvania, Tennessee, West Virginia, Minnesota and Wisconsin. And 3 states will be considering industrial hemp: Indiana, New York, and Tennessee.

And state legislators are not the only ones pushing for change, as demonstrated in an open letter sent to President Obama from 18 members of Congress this Wednesday. The congressmen call for a minimum action of reclassifying marijuana at the federal level, if not declassification entirely, stating that “Classifying marijuana as Schedule I at the federal level perpetuates an unjust and irrational system. Schedule I recognizes no medical use, disregarding both medical evidence and the laws of nearly half of the states that have legalized medical marijuana.”  The letter’s lead author, Oregon State Representative Earl Blumenauer, believes that they have identified a “step the administration can take to start to rationalize federal marijuana policy to bring it in line with the advances that are happening in the states.”  This bi-partisan letter is just another piece of what’s beginning to resemble a frenzied legalization stampede.

In many ways, 2014 is shaping up to be a potential landslide victory for marijuana reform. Enthusiasts believe this victory could also make for advances in economic growth and social justice. With cannabis still considered a schedule 1 controlled substance by the federal government, however, the entire industry continues to operate in a state of legal limbo.

 

Sources:

http://blog.norml.org/2014/02/12/28-states-are-considering-marijuana-law-reform-is-your-state-one-of-them/#sthash.WLcer6NM.dpuf

http://www.thedailychronic.net/2014/27560/congress-calls-president-obama-use-authority-reclassify-marijuana/

http://blumenauer.house.gov/images/stories/2014/02-12-14%20Blumenauer%20Rescheduling%20Letter.pdf

Photo Credit: R. Ayana

End


Marijuana Tourism: Prioritizing Connoisseurs over Stoners

Any major tourist destination has its own complex infrastructure designed to deal with and capitalize on out-of-town traffic.  There is even a measurable science to the seemingly ramshackle explosions of growth and economic activity that accompany major regional events such as the Olympic Games, Super Bowl, or World Cup –  and now it’s all been applied to marijuana legalization.

Last year the state of Colorado made nearly $17 billion dollars off a record-breaking 60 million visitors: if only 5% of this year’s visitors partake in Colorado’s recreational marijuana market, that’s still at least 3 million annual customers. Colorado’s medical market only has 113,000 registered patients, yet medical dispensaries statewide report a total of $329 million in revenue from medical marijuana. If the recreational stores are to produce similar profits, the numbers begin to look truly ludicrous.  Tripp Keber is the owner of the marijuana-infused soda company Dixie Elixers, and she is one of many who sees enormous opportunity in the new market.  “These are really exciting statistics,” she says. “There is going to be a huge economic boom.”

A recent article from Slate Magazine examines Colorado’s potential for pot tourism and how it could someday resemble a swanky trip to wine country. Matt Brown, the innovative ganjapreneur behind My420Tours, has his own vision of a swanky marijuana tour:

“Out-of-state visitors, picked up from the airport in 30-seat passenger limousine buses (on which smoking will be permitted), will… receive an all-access tour of the growing operation… owned by a friend of Brown’s: The “mother” room, where the clones are born; the grow rooms, where the plants mature; the trim room…. Afterward, there might be time for the group to take a pot-cooking class at a nearby cooking school—just so long as they make it to the private facility that’s been rented out in time for the tour’s daily ‘happy hour,’ occurring promptly at 4:20 each afternoon.” – Slate Magazine, Jan. 8th 2014

Now doesn’t that sound safe, fun, and sophisticated?  That’s because >weed tourism companies are strategically steering toward marijuana connoisseurs in lieu of the more party-oriented pot heads popularly depicted in and mocked by the media. And because tourists are often more inclined to shell out for steeper prices to have everything packaged up as part of a bourgeois vacation deal, Brown is reportedly fond of boasting that “We will make as much profit on a four-day tour as a marijuana dispensary makes selling a patient a year’s worth of pot.”

Other marijuana tour companies have targeted the same audience.  Addison Morris, the 63-year-old CEO of Colorado Rocky Mountain High Tours, strives to put customers “whose marijuana use could jeopardize their careers, businesses, and credibility in their communities back home” at the forefront of her business considerations. And while she might crack jokes like “We are grandma’s new pot connection and we are doing it with style,” the statement holds truth and could pay off in the coming years.

Some citizens may question business owners trying to capitalize on the expected spike in tourism from legalization, citing concerns over spoiling the state’s image. In fact, a recent poll from Quinnipiac University now suggests a 51% majority of Colorado citizens believe that marijuana legalization has hurt the state’s image.

However, regardless of any reputation-risking consequences, ganjapreneurs like Brown and Morris are already taking the word “highbrow” to a whole new level.

Sources:

http://www.ibtimes.com/colorado-tourism-officials-mum-marijuana-paving-way-pot-tour-ganjapreneurs-1525534

http://www.slate.com/articles/news_and_politics/altered_state/2014/01/weed_tourism_watch_out_wine_country_colorado_and_its_marijuana_is_coming.html

http://www.leafscience.com/2014/02/11/poll-one-month-later-coloradans-support-legal-marijuana/

Photo Credit: Rusty Blazenhoff

End


The Farm Bill’s Passage: Anticipating a Legal U.S. Hemp Market

Prospective hemp farmers are expecting a go-ahead soon from the federal government, which would allow pilot hemp-growing programs to be established in the 10 states around the country where its been legalized. Hemp is the sober strain of cannabis (containing less than 1% THC), and even though it has huge potential for becoming an industrial cash crop, it was unfortunately banned by the U.S. government alongside its cousin strain, marijuana, in 1937. Many things have changed since then, and in the recent years’ shift in attitude toward marijuana, the illegality of hemp in turn has finally earned the political recognition it deserves.

Lawmakers who support a legal hemp market saw an opening with marijuana’s popularity on the upswing, and they’ve been able to add a provision onto the Farm Bill that will allow universities and state agencies to grow and begin researching the long-awaited plant. “This is big,” according to Eric Steenstra, the president of Vote Hemp – a group that advocates for industrial hemp. Some believe that this federal relaxation may lead to even more drastic changes in the near future. “This is part of an overall look at cannabis policy, no doubt,” Steenstra said. Regardless, the bill has already passed in the House and Senate, and president Obama is expected to sign it into law soon.

The industrial hemp industry is currently dominated by Chinese agriculture, but American prospective hemp farmers are eager to get in on the market. Predicted uses for industrial hemp are numerous, and undoubtedly more will surface as further research begins, but perhaps the five most politically-resonating reasons for growing hemp are these:

1) The use of hemp paper and cardboard products can help prevent deforestation by lifting some weight off our trees’ shoulders.
2) Hemp clothing and other fabrics offer an environmentally-friendly alternative to cotton, a water-guzzling crop.
3) Plastic and building materials made from hemp can be manufactured to be 100% recyclable and/or biodegradable.
4) Hemp can produce easy, clean energy via biodiesel and ethanol fuel.
5) Hemp seeds are known to be one of the most nutritious seeds on the planet: they are a healthy source of vitamins, minerals, and protein.

Some hemp opponents have expressed concerns that production might cause localized strife or confusion for law enforcement, as the hemp plant obviously resembles marijuana, its intoxicating cousin. However, the differences are easily-spotted and are (we can only hope) relatively common knowledge among law enforcement officials. Marijuana has large, bud-tipped tops brimming with THC, while hemp stalks are significantly more barren and, as mentioned before, essentially void of any psychoactive attributes; additionally, marijuana has a distinct and potent aroma, while hemp’s odor is drastically more subdued.

Ironically, one of the only communities with legitimate cause for concern over the legalization and production of industrial hemp is the medical and recreational marijuana industry: due to their close biological relation, hemp crops have reportedly caused seeding in and thus ruined marijuana crops located up to 100 miles away. However, the current cannabis industry has not expressed any woes over hemp legalization, though we should expect strict zoning regulations for growing hemp and marijuana in the same region.

The Farm Bill also included many other bipartisan provisions that covered topics ranging from food aid to budget cuts, and it is estimated to authorize $956 billion in direct spending over the next 10 years.

Sources:

http://america.aljazeera.com/articles/2014/2/5/industrial-hemp-cultivationtobeallowedunderfarmbill.html

http://www.collective-evolution.com/2012/04/01/5-ways-hemp-will-change-our-world/

http://blog.sfgate.com/smellthetruth/2014/02/04/hemp-wins-in-federal-farm-bill/

http://www.npr.org/blogs/thetwo-way/2014/02/04/271586651/congress-sends-five-year-bill-to-white-house

Photo Credit: Craik Sustainable Living Project

End


State-Owned Bank Could Serve Marijuana Industry in WA

Senator Bob Hasegawa of Seattle has proposed a solution to the cash-only economy that medical (and soon recreational) marijuana companies have existed in since its legalization: a state-run bank designed and constructed solely to handle all of the controversial industry’s revenues.

In general, banking and cannabis simply do not coincide in today’s world of shifting drug policies and public opinion. As the drug is still federally listed as a schedule 1 narcotic, banks – fearing accusations of money laundering by the federal government – simply won’t risk doing business with anything or anyone marijuana-related (medical or otherwise).  This has been a serious issue since Washington legalized medicinal marijuana in 1998, and with recreational stores slotted to open sometime later this year, Sen. Hasegawa believes it’s time to finally do something about it.

Hasegawa’s proposed bill would supposedly establish a “financing structure to implement Initiative Measure No. 502 that complies with the United States attorney general’s guidance letter of August 29, 2013, thereby providing resources for public infrastructure and other public purposes.”  The senator acknowledges that the bill’s passing is unexpected, but he maintains that “the only alternative right now is cash-based, which is totally unacceptable and cannot adhere to the attorney general’s guidelines because it can’t track every last dollar.”

He also believes that the introduction of I-502 might simply be the best opportunity for creating a state-owned and state-run bank, a concept which has grown popular since the Occupy Wall Street movement as a means of keeping capital within reach of a broader population. Sen. Hasegawa also claims that creating this bank is the only current option that will allow cannabusinesses to deposit money without worrying about the federal government seizing their assets. By encouraging marijuana companies to do their banking through the state-run project, Washington could hope to alleviate some of the difficulties of launching a new bank.

There are, however, those who believe that a marijuana-dedicated, state-run bank is an impossible feat. Don Childears, president and CEO of the Colorado Bankers Association,  argues that “in short, federal law says any entity that holds deposits from another person, transfers funds between parties as in checks, debit cards, wire transfers, or otherwise is connected to the payments system — the movement of money from one financial entity to another party — must abide by federal law.”  Therefore, it’s not an issue of whether or not Washington’s hypothetical bank would be able to accept cash deposits from marijuana businesses, rather that said businesses simply would not have any of the advantages normally associated with having a bank account.  Cash deposits into a large, secure bank vault is one thing – actually having a checkbook or credit card associated with the money in that vault is something entirely different: it’s something monitored and controlled by the federal government.

Hasegawa’s bill is being opposed by the banking community, bond brokers, and the state’s treasurer, but he is still determined to have a public discussion about the benefits and drawbacks of implementing such a system.  “It has drawn the debate away from the detractors of the other arguments,” he says, and its opposition has now “focused on the illegality of marijuana itself.”

It would seem that Washington voters are simply more inclined to throw federal policy on marijuana out the window than its legislators, who continue to tiptoe around federal regulations and expectations.  It’s as if everyone thinks Hasegawa’s plan would be excellent if it weren’t still federally illegal… but isn’t that what I-502 has always been about?

Sources:

http://www.inlander.com/Bloglander/archives/2014/01/30/a-state-bank-and-other-marijuana-related-bills-being-considered-in-olympia

http://www.denverpost.com/marijuana/ci_24805239/state-owned-bank-wont-work-marijuana-cash

http://www.thecannabist.co/2014/01/05/colorado-state-banks-pot-money-industry-unable/2206/

http://www.businessweek.com/articles/2014-01-07/making-it-safe-for-banks-to-take-legal-pot-money

http://www.thestranger.com/seattle/a-state-run-marijuana-bank/Content?oid=18503399

Photo Credit: H. Barrison

End


State of the Union Lacks Important Legalization Topic

President Obama gave his fifth State of the Union address on Tuesday evening, in which he touched upon a variety of topics that predictably resonated well with liberal-minded citizens. And while it’s great to hear about immigration reform and the very real problem of income inequality between genders, there remained a looming issue in the American sociopolitical climate that should have been addressed.  This being, of course, the trending phenomenon that is marijuana legalization.

In case you missed it, Obama already conceded last week that weed is less dangerous than alcohol, and his own administration is currently planning new banking regulations that will allow banks to do business with marijuana companies. Meanwhile, nearly half the states in the country have legalized cannabis for medical use, and the recreational legalization experiments in Colorado and Washington have frequented national headlines since they were passed more than a year ago – where is the presidential recognition that this movement deserves? Everyone else – or, rather, the majority of the American public (58%) – is on board with legalization. Is the president afraid of acknowledging the elephant in the room that is the bountiful, rapidly-growing cannabis industry?

Nick Gillespie of Reason.com argues yes, calling the president’s continued reluctance to openly address the issue “unfathomable, bottomless, contemptible cowardice.” This reaction might seem extreme, but the very real issue of marijuana legalization has been steadily emerging for years, yet presidential acknowledgment has been consistently dismissive with little to no recognition of the actual arguments being made. After his most recent progressive admissions, for example, Obama made an immediate clarification to ensure political murkiness: “those who argue that legalizing marijuana is a panacea and it solves all these social problems I think are probably overstating the case. There is a lot of hair on that policy.”

And that’s all we really get to hear. There are some slippery-slope scenarios, of course, but that’s a form of rhetorical fallacy too overused to suffice. How is the case being overstated? Huge increases in tax revenue, check. Save millions of taxpayers’ dollars by abandoning the unwinnable and socially-harmful war on drugs, check. Bring a potentially-dangerous (yet incredibly popular) substance out of the control of criminals and into the hands of experts who can supervise and regulate its distribution, check. The list goes on, but everyone already knows how that goes – we’ve been hearing about it for years, now. What we haven’t heard is what precisely gives that policy, as the president put it, so much “hair.”

Tom McKay, writer for PolicyMic, believes that, in neglecting to address marijuana legalization and its growing popularity, Obama “speaks to an administration skeptical about ceding any political ground to the opposition, even when the political risks aren’t very high.” Which begs the question: is it possible that this vexing stubbornness has actually pervaded all avenues of modern politics? Considering the current state of congress, it seems that he answer, of course, is yes.

And in that case, I have to agree with Mr. Gillespie.  Obama’s recent comments to the New Yorker “illustrate how absolutely terrified politicians are to do the right thing – even when the vast majority of Americans agree with them – and why lasting change almost always comes from the bottom up rather than from the top down.”  Instead of this painfully-cautious governing body, we need leadership willing to accept change as the majority of Americans desire it. The legalization movement has waited long enough.

Sources:

http://www.policymic.com/articles/80421/two-huge-issues-notably-absent-from-obama-s-speech-marijuana-and-gay-rights

http://ideas.time.com/2014/01/24/obama-pot-marijuana-cowardice/

Photo Credit: James Omalley

End


New Banking Regulations Expected for Cannabis Industry

The trail to federally-recognized marijuana services was unveiled last week when Attorney General Eric Holder said that the Obama administration would soon release regulations that will allow banks to do business with legal marijuana businesses.  Though the proposed solution is not as game-breaking as many would have hoped, at least it’s something.

As things stand now, most marijuana businesses have resigned themselves to a cash-only economy because, as the drug is still federally illegal, banks will not offer them accounts or banking services.  Currently, any bank connections with businesses in the cannabis industry can be punished by federal law for money laundering and providing assistance in drug trafficking.

In turn, this makes marijuana establishments into prime targets for crime and robbery.  As the Attorney General explained during his announcement last Thursday, “There’s a public safety component to this. Huge amounts of cash, substantial amounts of cash just kind of lying around with no place for it to be appropriately deposited, is something that would worry me, just from a law enforcement perspective.”  The businesses themselves have obviously been worried for some time now (not to mention the cash-only requirements are painfully reminiscent of dealings on the black market) so the notion of bankers taking a first step into the cannabis industry has been a long awaited dream.

Unfortunately for marijuana investors, the new recommendations will leave some wiggle room in case the feds decide to take a few swings at marijuana businesses adhering to state laws. The New York Times reports that “The rules are not expected to give banks a green light to accept deposits and provide other services, but would tell prosecutors not to prioritize cases involving legal marijuana businesses that use banks.”  So, while more serious issues like drug cartels and human trafficking (to name only two) still plague the underbelly of America, banks that hold the assets of law-abiding marijuana businesses should not have to fear any legal repercussion.

In recent years, the state of Colorado has stepped forward to do what its MMJ industry has been unable to accomplish: the state deposited $9 million of medical marijuana tax money for the fiscal year 2012-13 into a JP Morgan Chase Bank account, quite the increase from its nearly $6 million the year before.  According to the Denver Post, “There are no rules, no memos, no opinions, no laws or anything else that officials can point to that clearly says the state can bank pot-derived income,” yet Colorado has been doing this banking-on-the-sly since medical marijuana was legalized in 2000.  Remember that the $9 million deposited into Colorado’s bank account last year was only money gained from taxing the product, and this means that direct profits in the cannabis industry were much, much greater.  And that’s the money I like to imagine is holed up in some secret back-room safe where a paranoid, shotgun-toting business-owner sits alone on a mountain of cash-filled duffel bags, with only an army of trained, killer guard dogs for company (or something like that).

Clearly, there is still much work to be done before members of the cannabis industry can rest easy, but it seems likely that banks will soon begin considering banking accounts for state-law-abiding businesses.  Big-name banks, such as Bank of America, might wait longer than most to ensure inaction by the federal government. However, if this slight admission by the Obama administration is what it takes to get bankers and cannabusinesses into same room together, let’s call it a step in the right direction.

Sources:

http://www.nytimes.com/2014/01/24/us/legal-marijuana-businesses-should-have-access-to-banks-holder-says.html?_r=0

http://www.businessweek.com/articles/2014-01-24/legal-pot-businesses-get-one-step-closer-to-bank-accounts

http://www.businessweek.com/articles/2014-01-07/making-it-safe-for-banks-to-take-legal-pot-money

http://www.denverpost.com/marijuana/ci_24843283/state-banks-pot-money-that-industry-is-unable 

Photo Credit: US Embassy New Zealand

End


What Kind of Ex-Stoner is President Obama, Anyway?

Marijuana legalization (first medically and now recreationally) has been a relevant topic for many years, and its proponents have often looked to President Barack Obama for a meaningful reaction of some sort: a glimpse of his former stoner self perhaps, or even a warning sign of troublesome drug policies to come.  Well, in a recent interview with the New Yorker’s David Remnick, Obama has openly admitted that marijuana is “no more dangerous than alcohol.”  In fact, the president believes that “in terms of its impact on the individual consumer,” it is actually less dangerous than alcohol.

While he believes pot is “a bad idea, a waste of time, not very healthy,” (a conclusion he’s reached from first-hand experience) he also argues that it’s important the legalization experiments in Washington and Colorado move ahead unhindered. “Middle-class kids don’t get locked up for smoking pot, and poor kids do,” he says. “We should not be locking up kids or individual users for long stretches of jail time when some of the folks who are writing those laws have probably done the same thing.”

In a timid move typical for politicians, the president did slip in a fail-safe to not be mistaken as too terribly “pro-marijuana.”  He warns that “you do start getting into some difficult line-drawing issues. If marijuana is fully legalized and at some point folks say, ‘Well, we can come up with a negotiated dose of cocaine that we can show is not any more harmful than vodka,’ are we open to that? If somebody says, ‘We’ve got a finely calibrated dose of meth, it isn’t going to kill you or rot your teeth,’ are we O.K. with that?”

Overall, the president may be personally expressing these progressive ideals, but a drastically different position is demonstrated on the www.whitehouse.gov website: “The Administration steadfastly opposes legalization of marijuana… because legalization would increase the availability and use of illicit drugs, and pose significant health and safety risks to all Americans, particularly young people.”

This “steadfast opposition” hardly matches the president’s open-minded admission made for the New Yorker, but if you look at President Obama’s stance toward medical marijuana historically, it is even less clear what his “official” position is.

Obama went on record in 2004 as in favor of medical marijuana legalization.  Additionally, he told an Oregon newspaper in 2008 that, if he was elected president, he’d cease the DEA raids on medical marijuana clinics.  However, in Obama’s first four years as president, the DEA raided more MMJ clinics than in both of George W. Bush’s presidential terms.

All of this really begs the question: what sort of ex-stoner is President Obama, anyway?  He’s clearly not bitter about his past usage, and he hasn’t stopped engaging in other “more dangerous” vices.  It has been well documented that the President is known to have a martini or two every once in a while.

If that little indulgence is acceptable, what’s wrong with a few puffs off a joint?  Does he seriously think we should worry about potheads getting their way with cannabis, then deciding that they need access to legal cocaine and crystal meth?  Or is his admission just a sneaky political maneuver to keep clear of negative press?

Don’t worry, Mr. President, we get it: you’re still relatively young, you’ve got a lot of eyes on you right now, and you’re incredibly busy.  You’re also the most powerful man in the world.

But at the end of all this… when you’re old, retired, and vacationing at a quiet cabin in some gorgeous, protected woodlands (you also will have saved the planet from climate change at this point), and the cannabis plant has been legalized worldwide (because, duh), and Michelle stayed at home or is off with her family for the weekend, or maybe she’s even sitting right next to you talking about how wonderfully it all turned out… go ahead. The birds are singing, the sun is shining down on your happy little paradise. It’s a truly, undeniably beautiful day… so go ahead.

Light one up.  Nobody has to know about it, and you’ve gotta remember just how phenomenal it feels to be surrounded by Mother Nature like that, just after sampling one of her delicious treats.

Do you really think a bump of coke or a little gasp of meth could even come close to helping you appreciate life, beauty, and the goodness of the world in the same way? Face it, Mr. President: the effects of cannabis are nothing like those of manufactured drugs, and you know it.

Sources:

http://www.philly.com/philly/opinion/inquirer/20130908_As_legalizing_marijuana_grows__Obama_shows_shifts_in_policy.html?c=r

http://politicalticker.blogs.cnn.com/2014/01/06/cnn-poll-support-for-legal-marijuana-soaring/?iref=obinsite

http://www.newyorker.com/reporting/2014/01/27/140127fa_fact_remnick?currentPage=all

Photo Credit: Steve Rhodes

End