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Jon Gowa: Robotics in the Cannabis Industry

Jon Gowa is the founder and CEO of Bloom Automation, a company that is designing and creating robots in Colorado to assist the cannabis industry.

In this episode of the Ganjapreneur.com podcast, our host TG Branfalt and Jon discuss Bloom Automation’s participation in the Boulder Canopy startup incubator, the various robot designs they have tested and found most effective, what role robotics may play in the future of the cannabis industry, and more!

You can listen to the interview via the media player below or keep scrolling down to read a full transcript of this week’s Ganjapreneur.com podcast episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey, there. I’m your host, TG Branfalt and you’re listening to the Ganjapreneur.com podcast where we try to bring you the actionable information to normalize cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today, I’m joined by Jon Gowa. He’s the CEO and founder of Bloom Automations. Jon, you guys make robots.

Jon Gowa: We do indeed. We make robots to help the cannabis industry.

TG Branfalt: That’s the crux of what we’re going to get into a little bit later, robots, how do they work — but before we get into that, I want to know about you. Tell me about what you did before entering the cannabis space.

Jon Gowa: Great. I’ve been an engineer for about seven years now. I initially started out actually in agricultural robotics at a firm called Harvest Automation and there, we made robots that moved potted plants such as rose bushes.

TG Branfalt: How did you decide to enter the cannabis space and did you use your previous experience to build this tech?

Jon Gowa: Yeah. Definitely, I would say I was inspired by my previous experience and honestly, one day, I was watching television. I believe it was a CNBC program about the cannabis industry and saw a particular task, this task of trimming and thought that might be something perfect for robots.

TG Branfalt: Again, we’re going to talk about the robots but I want to talk about a couple other things first. I want to talk about the accelerator program that you guys are involved in, the Canopy Boulder program.

Jon Gowa: Absolutely.

TG Branfalt: What was your application and pitch process like to get involved with that program? How did you discover it?

Jon Gowa: Okay. Canopy Boulder, we discovered it through the ArcView program and we were at one of their conferences, Canopy Boulder was set up with impressive booth and a list of companies that were at this investor forum. We got to know them. We got to know Micah. He said, “Why don’t you apply?” Later, last fall, I was in Boulder and actually met again at Canopy, learned a little bit more about the program, about their alumni and found it a fascinating opportunity.

TG Branfalt: What was the application and the pitch process like for you guys? Was it the Shark Tank experience? Were you in front of a bunch of people and …

Jon Gowa: Although we have had that experience on stage at ArcView, the Canopy Boulder application was a little more friendly. You mainly filled out a lot of forms online and wrote about exactly why you’re in the industry, where your goal is, and really pitching from there.

TG Branfalt: Why did you choose an accelerator program over other ways of finding investments such as finding direct investors or venture capitalists?

Jon Gowa: Great question. I think for us, it was more about getting really immersed in the industry. Although laws are changed in Massachusetts where I’m from, things are really developed out here in Colorado. To actually get to know industry professionals, get to know hopefully our potential clients and what their needs are, it seems like a good idea to come out here.

TG Branfalt: The Canopy Boulder experience and the culture, what’s that like working so closely with other companies who are designing their own tech or doing something entirely different and working with a lot of people who have very broad knowledge base?

Jon Gowa: Exactly. I would say it’s absolutely fascinating. We get to work, exactly like you say, with companies that have such varied skills. In this environment, it’s not so much competitive as it is collaborative. When I needed help working on the website, Henry from Cannabis Big Data knows all about website, all about analytics and was able to get me up and running in honestly 30 minutes, something that would have taken us weeks and more. Yeah, they have that kind of collaboration and everyone working towards the same goal, granted they’re on the same company … on different companies but we’re like working towards the same goal in the same industry.

TG Branfalt: I had an interview with the CEO of the San Diego Canopy and he appeared on the podcast. He said that one of the goals for their program, and they specifically bring in a lot of tech projects is they’re not looking for something that reinvented the wheel, so to speak. They’re more interested in picks and axes rather than gold so they don’t have any companies that touch the plant, that sort of thing. In Boulder, do you have the same experience in that program where it’s more picks and axes as opposed to the gold, if you will?

Jon Gowa: We do. We do have that same experience and the same criteria for it to be an ancillary company. I think that’s interesting and it’s also … because we’re all ancillary companies, we’re tied in that sense. Our clients are all similar so it’s really … it’s kind of a good thing for our company.

TG Branfalt: Tell me about your company. Tell me about Bloom Automation. You have robots. What do these robots do? Who’s using them?

Jon Gowa: Great. We have robots and it’s mainly aimed at the task of trimming which is after you harvest the cannabis, you have the flowers and then you have the sugar leaves and the fan leaves or the water leaves. Although the leaves are still valuable, you want to remove those and separate them. There’s numerous ways of doing it. Typically, it’s hand-trimmed or there’s some large machines that trim it but these machines are a little bit more coarse, so to speak. We’re looking at robots that could use cameras and they actually look at the cannabis and understand each different plant, each different branch and are able to cater that when it goes to actually trim and operate on that branch.

TG Branfalt: These aren’t like humanoid robots, right, that are holding scissors and doing this? These are more production style robots?

Jon Gowa: I would say it’s somewhat of a mix, so our next generation robot, it does wield a pair of shears, they look quite like a regular scissors and it uses an articulated arm that enables it to be more dexterous. Meanwhile, our initial prototype which is online and functioning right now like you said, looks more like a production piece of equipment, even kind of like a 3D printer. The robots are changing in form.

TG Branfalt: Already?

Jon Gowa: Already to kind of make sure we’re precise, as precise as a human and as we learn different capabilities and restrictions of a particular robot or system, we’re adapting to this.

TG Branfalt: I read that the automation increases security. I was wondering if you could just tell our listeners how automation does increase security and why.

Jon Gowa: Automation can certainly increase security by … It’s a more controlled environment. Certainly, if you have conveyor belts, you have your product going from one conveyor perhaps through a robot, it’s all controlled. It’s very unlikely you’re going to lose any product particularly with all the cameras, automated cameras. For that reason, you have a good control of your product throughout the entire process whether it’s trimming or going through packaging. Automation can certainly help.

TG Branfalt: You had mentioned earlier that your tech is already sort of evolving. Give me some sort of specifics about what has happened since the early test phase to now.

Jon Gowa: Exactly. Early on, although we’ve always used cameras, we had numerous different sensors like touch sensors and other sensors but now, we rely completely on cameras. What’s changed is in the beginning, the robot was a lot more cumbersome, so to speak. Sometimes, it ate an entire flower without really knowing it. Now, we’ve refined that algorithm much, much further. It knows exactly where each leaf is. It no longer has false positives or false negatives and it’s certainly more precise and more efficient. In fact, it’s almost 10 times faster than when we started.

TG Branfalt: Tell me how much product it can go through and how accurate is it.

Jon Gowa: Okay. We’re aiming for the production model to go through at least a quarter pound dry equivalent per hour. That would represent the equivalent of perhaps one to two hand trimmers. The accuracy is quite good. We’re at about 80% right now but we really want to hit that 95% threshold which is, it starts looking exactly like a hand-trimmed product. It’s very precise.

TG Branfalt: How far are you away do you think from hitting that 95% goal?

Jon Gowa: We have beta testing to begin at some cultivation sites across the country, about six of these sites. From there, that’s where we really start to gather data so we’ll see how are these actually performing in real life, what is the accuracy that the cultivators are reporting because it is something of subjective matter and from there, we’re going to make incremental improvements until we hope we get to that 95%.

TG Branfalt: What do you mean by it’s subjective? What does that mean when you’re dealing with data? Data is not really subjective.

Jon Gowa: Right. For accuracy, some would say some cultivators prefer a closer cut where perhaps you’re trimming the sugar leaves very down low, of course, getting all the crow’s feet but other trimmers, especially when the product is wet, might consider it okay to leave some sugar leaf because it still has product on it, active product. I think it depends on cultivator to cultivator. That’s actually something we want to program into the robots. This is one of the levers they can pull but we want to make sure when they pull that lever, they’re getting a desired outcome.

TG Branfalt: The system is adaptable.

Jon Gowa: That’s correct. There will be some tunability whether they want, like I said, a closer trim or perhaps a looser trim and that can be for numerous reasons from speed to, of course, just how they like their product.

TG Branfalt: That’s really cool stuff. We got to take our first break. I’m TG Branfalt. This is Ganjapreneur.com podcast.


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TG Branfalt: Hey, welcome back. It’s the Ganjapreneur.com podcast. I’m your host, TG Branfalt here with Jon Gowa, CEO and founder of Bloom Automation. Before the break, we’re talking a bit about how the robot works but there’s going to be … You’re definitely going to get some voices who are saying that one of the benefits of legalization is job creation. A February report from New Frontier estimated the cannabis space to create 250,000 jobs by 2020 while manufacturing, government and utility jobs decrease by 814,000, 47,000 and 383,000 respectively. What is your response to people who might see your robots as a threat to job creation in the cannabis space?

Jon Gowa: Yes. The robots and automation in general really works to increase efficiencies. Often, what occurs there is as opposed to eliminating jobs,
you’re actually creating more jobs such as everything … The robot needs an operator. These current robots, for example, don’t feed themselves. Branches need to be fed in. Then, of course, there’s robot technicians, robot programmers and a number of jobs that are actually on-site jobs that will be created. What we like to look at is the efficiency improvements that these robots can provide employers and enable them to employ even more people whether it’s down the line or actually helping the robots.

TG Branfalt: Well, and tech companies need a variety of talent as well. What are you guys going to be looking for as you expand in terms of talent?

Jon Gowa: Certainly. Everything from, of course, programmers who are experienced in robotics and specifically vision to then we would need robot technicians across the country because robots, they break down like any piece of capital equipment or any piece of equipment really. We will be wanting to train particularly people that are familiar with other equipment in the cannabis industry whether it’s they’re trained on lighting equipment, dehumidification equipment. We’ll be looking for those same people and hopefully train them how to work on the robots so that we have technicians capable all across the country and when a cultivator needs them, they can go out and service the robots and of course, individuals that would operate the robots and then, we are planning on United States manufacturing so we’ll need an army of assembly technicians as well.

TG Branfalt: So far, have you been able to find qualified people to do the jobs that you’re looking for and if so, what sectors are they coming from?

Jon Gowa: Great question. For example, we’ve been looking for contractors that are familiar with cameras and how cameras integrate with robots and typically, that’s in automation field. We found contractors everywhere from Denver to San Diego to Tampa, Florida who all not only have an interest in the field but have a strong interest. They see it as a growth industry and have said that there’s request from other people, from cultivators themselves. We’ve had very good response honestly from vendors and industry professionals outside of the cannabis industry.

TG Branfalt: What other functions might robots be able to perform in the cannabis supply chain?

Jon Gowa: We’ve already seen some equipment whether you would call it an automation equipment or robotics, that help package cannabis, help package flower. One of the things I know that’s being looked at is packaging concentrate products. No pun intended but it’s really a sticky process and … yeah.

TG Branfalt: I love puns.

Jon Gowa: It’s tough to really … The process is called gramming and I think it’s pretty tough to do manually.

TG Branfalt: That’s something that people might be looking towards robots for or are they already being utilized?

Jon Gowa: They’re not being utilized but they are looking towards that, just one example, to help packaging, help packaging efficiency, consistency so that every time you look at the product, it’s consistent to what you expect.

TG Branfalt: When you approach a cultivator and you tell them, “Hey, I’ve got these trimming robots,” what’s their reaction?

Jon Gowa: Generally, their reaction is fairly positive. I think trimming is often seen as one of not the most desirable jobs in the industry. What we hear from cultivators is they love their great trimmers but all their great trimmers want to do is move up to that next level where they’re no longer trimming, so it’s difficult for them to find good trimmers and if they could instead operate robots that would really equate to this quality, they would love to do so.

TG Branfalt: How much training would somebody who’s trimming by hand now need to operate one of these robots?

Jon Gowa: Certainly, I think a large population of the trimmers right now are of the age that they’re quite familiar with technology and the robot’s operated through a touch panel control. It’s fairly intuitive. It’s a small combination of mechanical, just how you load the branches and then simply following kind of on-screen instructions. I think they would get sort of used to the errors that might happen with the robot and learn how to adjust those pretty quickly. It’s very similar to how humans work with robots in the automotive industry. It’s pretty collaborative.

TG Branfalt: You don’t need to have like an engineering degree or something to operate these?

Jon Gowa: No. Absolutely not. We really would count on those hand trimmers and other employees to assume these roles.

TG Branfalt: We got to take our last break. When we come back, we’re going to talk about something you and I both know a little bit about and that’s cannabis on the East Coast. Before we do that, we’ll take a break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt with Jon Gowa, CEO and founder of Bloom Automation. You had mentioned earlier you’re from Massachusetts. I lived in New York for years and years. I spent tons of time in Massachusetts and I was stoked and maybe a little surprised when they passed cannabis legalization last November. It was a huge domino that toppled in New England because of Boston and the power politics that are played, I’m certainly sure you know, in Massachusetts. Were you confident going into that vote? What were your feelings as a native going into the November election?

Jon Gowa: No. I was hopeful but I wouldn’t say I was completely confident. I knew in the earlier polls, it was somewhat split but at least we had passed medicinal and then decriminalization. I was hopeful we would follow suit and certainly pleased with the outcome there.

TG Branfalt: Do you have the same sort of feeling that I do that it was kind of the first domino? I mean that and Maine, that I mean it was a simultaneous thing but to me, New England or I’m sorry, Massachusetts is sort of the bigger of the two fish if we’re frying them. Do you kind of get that sense as well that … I mean now, we got Vermont who just, the legislature passed, strange legalization bill. Delaware is working on it. I hear Rhode Island but do you think that it took Massachusetts to kind of get that ball rolling?

Jon Gowa: Personally, I do think it did take Massachusetts to really get everything rolling. I think just as other states have looked to Colorado including Massachusetts, I think other New England states will continue to watch Massachusetts as the legalization plays out.

TG Branfalt: Well, and there’s been some setbacks. The legislature delayed implementation from January to July 2018. Several municipalities have enacted either moratoriums or total bans. They have approved the funds for the program which is a start. How confident are activists and canna-business owners in Massachusetts that the state will meet that July 2018 deadline? What are your concerns about the law if any or its implementation?

Jon Gowa: I certainly hope that the law is implemented. As you said, it was supposed to be in January. I certainly hope in July, I think the voters have voted. The time has come but the cities that haven’t, for the cities that haven’t or that have pushed back, I think they’re losing out and I’m sure eventually, they’ll turn, just like some cities here in Colorado have. Then, yeah, I’m not 100% confident on the actual meeting the timeline. It’s really, I mean … yeah.

TG Branfalt: Finally, what advice would you have for entrepreneurs, specifically those interested in entering the tech sector?

Jon Gowa: Great. I think there’s ideas. There’s thousands of ideas but really, I would say building your team, whether it’s just you and a partner or you and two partners, building a team where you really complement each other and then really looking at your opportunities, so if you have an idea and you have a prototype, then maybe you start looking for some investment but otherwise, these incubators are really … It’s a really good opportunity to get to know the entire industry, get to know venture capital. Myself, I’m not an MBA but this is kind of like a mini-MBA. I would certainly advise that to any entrepreneur whether you’re an engineer or not, or a business professional or not.

TG Branfalt: Finally, can you tell us where we can find more about your product?

Jon Gowa: Absolutely. On our website at bloomautomation.com and of course, at our Twitter, @bloomrobots. Both is a great opportunity to learn more.

TG Branfalt: Awesome, man. Well, thank you for taking the time out to be on the show. It’s really cool tech that you guys are rolling out and I really can’t wait to see how it exactly develops. That’s, I think, going to be a really fascinating thing to keep my eye on.

Jon Gowa: Yes. Thank you really much, Tim. I love the show and I’ll be anxious to hear more from you.

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

End


The Maryland Capitol Building in Annapolis. MD.

Some Maryland MMJ Application Reviewers Had Ties to Applicants

The Maryland Medical Cannabis Commission is investigating potential conflicts of interest by those who reviewed the state’s medical cannabis applications after an investigation by the Washington Post discovered several of the “independent experts” had ties to companies whose applications they reviewed.

The applications were reviewed by Towson University’s Regional Economics Studies Institute, who oversaw 20 experts scoring the applications. However, the state Department of Legislative audits criticized the commission for using the institute because they, after an audit, concluded that the deal between the university and the MMCC circumvented “competitive procurement” standards resulting “in a lack of assurance that these services were obtained at the most advantageous cost to the State.”

According to the Post review, Julia Germaine, co-founder of Massachusetts’ Temescal Wellness, was among those reviewing applications and on an affidavit indicated she has “no known relationships” with individuals applying for a cannabis license; however it was later discovered she reviewed the application for Temescal, submitted by Ted Rebholz, a director and consultant, and her husband Nial DeMena, the co-founder of her Massachusetts company. Two heads of a Washington D.C. dispensary were also present on the panel and their business partners were among those seeking to expand into the state market – one disclosed the relationship, the other did not. Germaine claims she didn’t know her husband was a part of the Temescal application, and her husband claims he didn’t know she was an evaluator.

Daraius Irani, director of the RESI said the institute “took every step to ensure a fair process,” adding that while “it is not a conflict of interest simply to know someone professionally” working in the industry, Germaine “would have not have been an evaluator at all” if she had disclosed her husband was the general manager and she was affiliated with a potential licensee.

Patrick Jameson, the executive director of the MMCC, said the body “takes its role concerning the integrity of [the program] and fair application process very seriously and has been closely monitoring any and all situations of non-compliance to ensure the public trust.”

“The Commissioners will evaluate all available background investigation information prior to their deliberative process before issuing any licenses,” he said.

End


The New Hampshire Capitol Building on a sunny day in Concord, New Hampshire.

New Hampshire Gov. Signs Cannabis Decriminalization Bill

New Hampshire Gov. Chris Sununu has signed legislation reducing penalties for possession of small amounts of cannabis, and with it effectively decriminalized low-level cannabis possession in New England. The measure makes possession of up to three-quarters of an ounce of flower and up to five grams of hashish by adults 18-and-older a violation rather than a misdemeanor.

New England includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Last November, voters in Maine and Massachusetts both approved adult-use measures, while possession of less than an ounce of cannabis is a simple violation in the remaining states. New Hampshire was the only holdout in the region.

New Hampshire’s law specifically prohibits police from making any arrests for a cannabis possession violation, and offenders under 18 caught possessing less than the threshold would be subject to a delinquency petition, WMUR-9 reports.

Adults found possessing above the threshold will be fined $100 for the first or second offense and $300 for subsequent offenses within a three-year period. A fourth offense will result in a misdemeanor charge. Money collected from fines will be deposited into the state fund for alcohol and substance abuse treatment.

Justin Strekal, NORML political director, said the measure allows the state to “join the chorus of states that recognize the baseline level of dignity for its citizens and tourists” who choose to use cannabis.

“Soon, throughout New England, individuals will be able to freely travel without the threat of jail time for possession of marijuana,” he said in a statement.

Sununu previously called the legislation “common sense marijuana reform.” The bill takes effect in 60 days.

End


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

Nevada Rec. Sales Reach $3M in Four Days

Cannabis sales in Nevada are already booming, as retail sales have exceeded $3 million during the first four days, according to a Las Vegas Sun report. That equates to nearly $500,000 in state tax revenue putting the state on track to achieve $30 million over the next six months of sales, the Nevada Dispensary Association estimates.

The tax rate for recreational cannabis sales in Nevada is 33 percent to 38 percent, depending on the municipality.

“We had a higher demand than everybody initially thought,” said dispensary association director Riana Durrett in the report. “It shows this market really exists.”

Nevada was one of four states to legalize adult-use cannabis during last November’s general election, and thanks to Early Start provisions by the Tax Department, the state is the first of the four to roll out the new regime.

California’s Bureau of Medical Marijuana Regulation Chief Lori Ajax, whose agency is responsible for devising regulations for the industry, said that she fully expects to meet the Jan. 1, 2018 deadline set forth by Proposition 64.

Lawmakers in Maine passed legislation in January to delay the rollout of the voter-approved program by three months, from January 2018 to April 2018. Despite the legislature-approved delay, other lawmakers have introduced legislation to allow early sales at currently licensed dispensaries. The personal possession and home-grow provisions included in the recreational law, however, were unaffected by the legislative action and took effect on Jan. 30.

Massachusetts lawmakers also passed legislation delaying the implementation of the voter-backed regime from January to July 2018, and have been crafting changes to the law ever since. As of June, at least 81 Massachusetts communities have considered or enacted bans on the industry, including moratoriums and zoning regulations to prevent cannabis business operations. However, portions of the law allowing adult cannabis possession and home-grows took effect Dec. 15.

End


Jeffrey Hank: Pushing for a Michigan Adult-Use Victory in 2018

Jeffrey Hank is the founder of MI Legalize, the Michigan advocacy group that is spearheading efforts for a 2018 bid for the statewide legalization of adult-use cannabis. Michigan is one of the last major states capable of enacting change via voter initiative that hasn’t yet overruled the prohibition of cannabis — this means that a successful legalization initiative there would be a huge victory in the ongoing battle to reform cannabis laws.

In this episode of the Ganjapreneur Podcast, Jeffrey joins podcast host TG Branfalt to talk about organizing petitioners and activists in their effort to cement their initiative’s place on the state’s 2018 ballot, the history of Michigan’s uniquely difficult citizen initiative process, the state of cannabis reform as it stands throughout the Midwest, how the ongoing efforts in Michigan may influence neighboring states and the federal climate in regards to cannabis legalization, and more.

Listen to the podcast interview below, or keep scrolling down to read a full transcript of this week’s episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m your host TG Branfalt, and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information to normalize cannabis through the stories of Ganjapreneurs, activists, and industry stakeholders.

Today I’m joined by a fellow Michigander, Jeffrey Hank. He’s the founder of MI Legalize. How are you doing this morning, Jeff?

Jeffrey Hank: Hey, doing great. Thanks for having me on.

TG Branfalt: Hey, man, it’s a pleasure. I had a chance to talk with you a few days ago for an article and now here we are on the podcast. Before we talk about MI Legalize and that whole movement, why don’t you tell me about your background. Who is Jeff Hank? How’d you end up on the forefront of the legalization movement in Michigan?

Jeffrey Hank: That’s a good question. I ask myself that a lot. How I got involved, in a nutshell … and I’ve always been a cannabis enthusiast. I’ve always believed that marijuana should be legal ever since I was a kid. I wrote a paper in eighth grade about it, actually, and back then it was really hard to get information about anything. I had to try to get my dad to go the local bookstore and pick up a copy of High Times, and that was back in the day where High Times was behind a sheet, like it was almost pornography.

TG Branfalt: Yeah.

Jeffrey Hank: You know? Now things have changed so dramatically, but I think what really got me into it was about eight or nine years ago when I started practicing law, and I just had a natural sort of drawing to marijuana law … And, you know, a lot of people I knew were getting in trouble with it, and just seeing the injustices in the court system. So, I got really active right when Michigan’s medical marijuana act first came into place doing both the business end of things, but also criminal defense law. I transitioned more towards the industry side of things now, thankfully, because we’re scaling back a lot of the criminal aspects of these things.

It was just a number of things that led me to think that something had to be done, and then I got involved politically. I ran the East Lansing decriminalization campaigns. These were small grassroots campaigns. Lansing was 2014, and … Well actually it was 2013. East Lansing was supposed to be 2014 but it got bumped to 2015. We actually had to litigate it to get in on a ballot in East Lansing. Each of those elections we won with 65% and 67% support of the people, and those authorized, at the local levels, the Lansing and East Lansing anyway, the use, possession, transfer, and transport of an ounce for adults twenty-one and over.

So, I got involved in that and then at about the same time I had a friend who was one of the Okemos 7, a medical marijuana compliant facility here in the Lansing area, and they were busted by the Feds and he got sent off to prison in West Virginia. I’ve had clients who I believe actually … I had a client I think died once, an elderly client who died of the stress of being prosecuted over petty marijuana violations.

So, you know, you see that stuff time and time and time again, and you know from your own personal experience how safe and useful and even fun or medically healing cannabis can be, and you know it shouldn’t be illegal. I felt, as a citizen basically, I had a duty to do something more about it. So a couple years ago I began to try to organize these other activists statewide. In Michigan we have a particularly active group of people who have decriminalized or legalized at least 21 cities at the local level.

So there were all these people out there doing these things in Saginaw and in Jackson, and Flint and Grand Rapids, but there was no state organization organizing everybody to do something. And looking at it and talking with people, it was a real daunting task. Nobody wanted to take on this major project which had never been done. There was sort of a conventional wisdom that you needed a million or 2 million dollars to even bother attempting to try to make the ballot, so if you didn’t show up with that money to some of these cannabis activists, basically they just discounted the idea that a statewide ballot initiative would ever be possible.

So, I kind of had been going through this over the years and being involved both as a lawyer and as a political activist, and finally things just all kind of came together in one strange way or another. I ended up as the Executive Director of MI Legalize, and the story kind of goes on from there.

TG Branfalt: So let me ask about your law school experience a little bit. You said that you had ended up working specifically on cannabis issues. Was there anything in your law school training that prepared you for that, or was that something that you really undertook on your own accord?

Jeffrey Hank: Yeah, it was really on my own accord. We rarely discussed marijuana in law school. When we did and I had a chance to opine on it, I would always say that marijuana laws were unconstitutional. So, I just had that disposition, and having a lot of friends into cannabis, looking to get in the industry end and also just getting in trouble, it was just sort of natural. People would come to me for legal assistance and then it became a career. So, nothing in law school prepared for whatsoever. I don’t know if that’s changing these days, but I’m kind of hoping it is, that in the next few years they’re not even talking about marijuana being a crime in law school.

But yeah, it was all … everything I got into was sort of on my own in conjunction with other people, and sort of just evolving with this cannabis culture. I just said a few minutes ago, I remember back in eighth grade where it was hard to get a copy of High Times locally. There was like two bookstores that had it, and you wouldn’t even want to go to a grow store because if you went to a grow store, you’re probably under the surveillance of the police. You know? But in that short period of ten, fifteen years, the culture’s changed dramatically, where even though in Michigan 20,000 people a year are still arrested for marijuana, there’s a lot of people who feel and act almost like cannabis is legal, particularly with the medical situation. Now of course, it’s not, but that’s how rapidly the consciousness is changing, where these things are sort of open now. So I’ve just kind of evolved along with that, with the cannabis culture, like so many other people.

TG Branfalt: So why don’t you give me a brief history of cannabis policy in Michigan. We have medical out here, but it’s kind of a gray market. It was … They’re putting legislation to fix that. So why don’t we just start with a brief history of cannabis policy in Michigan, and what the medical marijuana laws are and how those are changing because of legislative action.

Jeffrey Hank: Right. So if you go way back, you can go back to John Sinclair days where he was actually in prison for selling two joints to an undercover officer. The Michigan Supreme Court struck down the law and for a short period of time, there were no laws against marijuana in Michigan, and that was the genesis of the Hash Bash in a nutshell.

Flash forward to 2008 … You had Michigan’s Medical Marijuana Act come into place, which really changed everything in a good way, really. There’s still been a lot of problems with it, but it opened the door. And a lot of people don’t like that. There are people who supported marijuana as medicine and there are other people who said, “Look, this is the way legalization comes.” And you know, when I voted for it back in 2008, I thought that … that, hey, I’m happy to vote for this because I’m hoping that legalization does come.

So we had several years of a wild west, if you will, for lack of a better term, where the state didn’t really know how to handle it, local governments didn’t know how to handle it, and it was sort of wide open to anybody to just do what you wanted to do within the confines of the law, which were very vague and gray, as you said. That’s caused a lot of problems. For some people it’s been a blessing, for other people it’s been a curse. Law enforcement … if you happen to get in on the wrong end of the gray area of medical marijuana, you know, it can ruin your life.

So we’ve been through this for years and years. Last year, the state enacted this new Medical Marijuana Facilities Licensing Act along with a couple other supportive acts, which will license these five categories of cannabis commerce businesses, cultivation facilities, processors, safety compliance facilities, which are like testing labs, transporters, and provisioning centers, which are often called dispensaries colloquially.

So, that’s kind of where we’re at. You know? It started with the Medical Marijuana Act that did not have any sort of framework for commercial dispensaries, so … We’ve had dispensaries in Michigan for quite some time, but they operate in this legal gray zone, and now that’s being clarified.

TG Branfalt: How did you guys react to the legislative action?

Jeffrey Hank: So, for MI Legalize it was a strange, strange day because we had … On June 1st 2016 we turned in 354,000 signatures, which should have been enough to put us on the Presidential Election ballot where President Trump was elected this last year. We were kept off the ballot by the state, and we litigated that all the way to the United States Supreme Court and did not get any relief. However, the Michigan Supreme Court … The biggest day really was September 5th and 6th or so when the Michigan Supreme Court made its ruling to keep us off the Michigan ballot. That was sort of the last big chance for us to be on the ballot. The U.S. Supreme Court would have happened after the fact, probably, and it would be 2018. So, that very next day … Literally after eight or nine years, almost, of no action by the legislature, no concrete action to actually create a regulatory system for medical marijuana … The day after we were denied by the Michigan Supreme Court, the state Senate, run by conservative Republican legislators, pushed out this bill.

So, it was a strange day. On the one hand we celebrated it because it was a step forward for many people, but I describe it personally as akin to the people being robbed of their election the day before, and then the next day the king and his minions throw out some bread crumbs to the peasants. We were supposed to have a law which would have completely legalized marijuana, which would have created this regulatory basic skeleton structure for a system, which didn’t have secure transportation of marijuana or a lot of this other heavy bureaucracy.

So for us, it was like … It’s hard to describe, because on one hand you’re happy to see that things are moving forward. I mean, we went from a law which allowed people to grow 12 plants personally or 12 plants as a caregiver for a patient who … You could apply for a 1500 plant license, and as of now there’s no restriction on how many of those licenses you can have. So, yeah, you get excited and happy to see that maybe people are going to be growing 10,000 plants or something. That’s great, and it’s going to take people out of the legal gray zone, but it wasn’t the way we would have drafted the law. And statements were actually made that because we were not going to be on the ballot now, some of these Senators actually felt comfortable moving forward because we wouldn’t have had these conflicting laws.

So it’s a very strange scenario. I have the word to describe it … It’s hard. It’s really hard to say it. I’m trying to think of the right word. It’s bittersweet, perhaps, is the word, because you’re happy on the one hand, and on the other hand it’s kind of a slap in the face. But that was an initial reaction the morning after we had just been denied by the Supreme Court, which was a serious blow not only to MI Legalize and myself, but everybody else who worked very hard to make this happen.

TG Branfalt: So why don’t you briefly tell the listeners about, in a nutshell, the 2016 campaign that was thwarted in the courts and by legislative action, because I think that it’s important that people understand exactly what happened to a campaign that had the petition support. It had the signatures.

Jeffrey Hank: Right. So, it’s a long story, but to … You have to have the history to really understand it. So I’ll try to make this as quick as possible. Going back to the 1963 Michigan Constitution … Citizens in Michigan had a right to place constitutional amendments or statutory initiatives on the ballot, and there was no time period restriction on their ability to do so. If there was any, it was the period between gubernatorial elections, which is four years. That’s the way petitions were done in Michigan until approximately 1972 when there was a woman in Grand Rapids who came close to succeeding, putting an initiative on the ballot that would have restricted legislator pay and pensions. And as a result of that, the legislature actually changed the law at that time to allow for only 90 days to petition. So you went from either a four year …

TG Branfalt: Wow.

Jeffrey Hank: … if not infinite time to 90 days. It caused a big brouhaha at the time. It was done by legislators
to stop a petition that was going to take away their pay, basically. Around that same time period, Michigan’s famous Attorney General, Frank Kelley, who’s called ‘the people’s Attorney General’ because he served here so long and he had so many substantial civil rights issues come about during his tenure … Frank Kelley issued an Attorney General’s opinion declaring that law unconstitutional … saying that the legislature could not limit the time period for Michigan citizens to petition. So for 13 years the state didn’t enforce that law and people had this longer time period to petition.

So flash forward to 1986, and there’s two more petitions that are sort of controversial to the political establishment. One was to enact a death penalty in Michigan, which … We were the first state in the Union to ban the death penalty. We’ve never had the death penalty at a state level in Michigan. The other was to allow citizens to vote on utility rate increases, which the power companies didn’t like. So, Consumers Power Company actually sued and they went to the Michigan Supreme Court to enforce this new law, which said that a signature over 180 days had to be validated again to prove the person was a registered voter. So you could petition beyond 180 days, but you just had to go through a separate validation process. So for 13 years that law was not enforced, Consumers Power sued to get it enforced and kept these things off the ballot.

In that same year, 1986, Michigan’s Board of Canvassers came up with a rule, their own policy, on how you validate those signatures, and they had two ways to do it. You can either get everyone to sign again, sign an affidavit saying they’re registered to vote, or you would go to the local clerks, of which there are 1500 in Michigan, and have them validate the voters’ signatures. So for 30 years, nobody tried to do this. We looked at it and we said, “Look, we’re a grassroots campaign.” … And to make the ballot in Michigan, and there were 13 campaigns that tried to do so last year … Nobody made it. That’s how hard it is to do because it normally does cost a couple million dollars. It’s very hard to have a dedicated group of citizens work full time for six months all across the state.

So we looked at it and we said, “Well, this is interesting. The law gives us this option. No one’s tried it in 30 years because it was so hard to do.” But what we were able to do was we hired some consultants and some computer people, and we were able to use modern technology, basically, and a lot of elbow grease, and actually verify every single signature.

TG Branfalt: Wow.

Jeffrey Hank: So when you turn these signatures in to the state, they only do a sample and they check 500 to 4,000 of them to do a sample to see if they’re valid. We checked every single one of them in preparation to have these local clerks do it, and we went to the Bureau of Elections and we actually testified, and we testified in the Legislature about this … Once the state realized we were about to qualify, the Legislature again decided to change the law. This is 30 years later now where they began to decide to try to restrict it to just a firm 180 days, which means we would lose approximately five months worth of our signatures. So we continued to lobby the Board of Canvassers to change this rule. We went to them and we said, “Look it, you know it doesn’t make any sense for us to have everybody to sign an affidavit again. We might as well have them sign the petition again.” Except in Michigan, it’s a crime to sign a petition twice …

TG Branfalt: Ahh …

Jeffrey Hank: So we’re not going to tell people to do this and possibly go to jail. The Bureau of Elections agreed with us, and they said, in writing, under oath, we had more than 180 days to petition. So we then said it’s very laborious also to go around to 1500 local clerks and have them validate all these signatures, especially when Michigan law provides for a centralized database, which wasn’t created until 1998.

So basically, we kind of came along, we put these different laws together and the pieces of this technology, and we realized that no one had just tried to do this because they thought it was too hard or too difficult, or maybe just were unaware of it. That was more likely. Most people didn’t realize you could even do this. And when we showed we could do it with the technology, they shut us down. They not only did not … The Bureau of Elections staff actually recommended three different new rules, which would have made it easier for us to validate these signatures, because everyone acknowledged it was kind of absurd and almost impossible to do. And that’s how it was designed in the 1980’s. It was designed to make it impossible to do, so nobody did it.

Well, we figured out a way to do it, and the result was the Board of Canvassers … It was a four person appointed board, two Republicans, two Democrats … They split 2-2. The Democrats supported changing the rules, the Republicans didn’t, but when it came down to it, because it’s a 2-2 split, no action occurs. So they never adopted a new rule. At that same time, the Legislature passes a new law. Six days after we submit our signatures, Governor Snyder signs it, and it’s used as basically a justification not to count our prior signatures, not to create a new rule for us to do it.

So a lot of people get confused about it, and the media will sometimes report that we didn’t do it in enough time or we didn’t have enough signatures, or whatever. That’s not true. We did have enough signatures and we did do it in enough time. The law actually didn’t go into effect until six days after we turned our signatures in, so it’s not really accurate to say that new law prevented us. It basically, though, was used as a justification for the Board of Canvassers to not take any action to count our signatures. So we filed the lawsuit and the first judge of the Michigan Court of Claims, which are not required to give you a hearing, they didn’t even give us a hearing despite these hundreds of thousands of Michigan … We had over 100,000 extra signatures we submitted …

TG Branfalt: Wow.

Jeffrey Hank: … and we didn’t even get, with five lawyers on the case, we didn’t even get a minute in front of the judge. The judge sits on the case for two months, and then denies our case, says we make a good argument, but fails to address any legal issues we bring up. And of course, we appeal it all the way up to the U.S. Supreme Court and never get any relief.

So, you know, very frustrating when you put all this work in, spend a lot of time, money and energy. But the great thing about that, TG, is it brings us to where we are now, because having done all that, we’re prepared to go forward and we’ve established this network and this experience and all these activists statewide have been brought together. People know each other now from the UP to Detroit and from Grand Rapids up north, down south, east and west. We’re connecting people, and people … Now that we’re on this new petition, we even have … I say this all the time. I have little old ladies who will come up to me, sometimes in the grocery store or something, and they’ll say, “I saw you on TV last year. I remember what they did to you. I remember what the Governor did to you,” or whatever, and they’re saying, “I don’t even support marijuana necessarily, but that’s not fair play.” And they’ll want to sign the petition this time around.

And the other amazing thing about it is … You know, the state delayed us now for two years. I think we’re going to be on in ’18. I think we’re going to win in ’18, but they put this idea now in so many people’s heads that they don’t play fair and that they’re trying to suppress progress on marijuana law … That I think you’re going to see above a 60% yes vote if not 70% by the time we get to 2018, because people are tired of Michigan government, they’re tired of both parties and getting jerked around, and this is a perfect example of our democracy being sort of undercut.

I mean, we led a true citizens-led campaign. One of the fair criticisms people can make about us is that we were disorganized or that there wasn’t a central sort of process. I get that finger pointed at me a lot, which is okay, but I like to tell people, “You know, well, that’s because we weren’t a multi-million dollar campaign funded by some billionaires or by the Koch brothers or by organized labor or somebody.” We were a true citizens group, and there hasn’t been a true citizens group that’s filed a petition in Michigan in decades, because it’s so hard to do and it takes so much money. Now, we did raise some money and we had one substantial large donor that helped us get to that point, but it was all done by blood, sweat and tears. And because of that, I believe we have created the conditions amongst the Michigan public that they’re ready for this, and they’re even more ready for it because of what they saw happen.

And you know, this all ties into bigger picture issues of trusting the state and the Governor and Flint, and all these other things. So I could go on and on and on but … That’s where we got to where we’re at today and people are really excited now. We had no help from national groups and as a result of what we did last year, a lot of people had said Michigan was on schedule with the national groups for 2020. We bumped that up to 2018. We’re one of the last big initiative states. There’s only 24 states in the country which have the initiative process, and when it comes to marijuana, most of the big ones have already gone … Florida being the exception, but Florida requires a 60% vote of the people to change the law. They just squeaked medical by recently, so I imagine you’ll see Florida and Ohio coming up in 2020, if not before then.

But Michigan is sort of the target, if you will, for people who support cannabis reform, and probably will become the target for some opponents also now, because we’re the last big state save Florida and Ohio, which are not teed up right now. So, we showed the country we’re ready, we got a lot of great support from people, everybody from … Moral support … You know, we didn’t have the financial support, but everybody from Tommy Chong to Willie Nelson … Willie Nelson’s got a great video out called ‘I’m Not Dead Yet’. He’s drinking out of an MI Legalize coffee mug in the video, and he’s in Southern Living magazine doing interviews drinking out of it.

TG Branfalt: That’s great.

Jeffrey Hank: We had Tommy Chong show up at the Hash Bash, and DJ Short and … All these other cannabis personalities saw what happened here, and DJ Short who has given some of my favorite public talks on this … He even did a speech at Hash Bash this past year, and he talked about Michigan in particular. We try to create a model here, and we look at this sort of like the cannabis industry is at a crossroads. We try to prevent the Responsible Ohio type situation here in Michigan. There were similar people who wanted to create a very exclusive market. We call it sort of monopoly market type provisions. You know, having ten or twelve big growers in the state … We want the exact opposite here. We want everybody to be able to participate in this if you’re an adult.

We fought very hard for that, and so we kind of like at Michigan as a litmus test. We could see states going towards very restrictive models of control, even the state owning dispensaries and things like that … Places like Pennsylvania, that’s how they handle alcohol. And then you have states doing CBD or smokeless-only products, so all these reforms could go one way or another. They could go towards that very tight, regulated model, or they could go towards more what we like to call a people’s model. And that was our goal. So we hope that with Michigan … We try to be careful how we talk about this, but since I’m talking to you here at Ganjapreneur and your listeners are hopefully mostly pro-cannabis … We believe this is the best cannabis law to date in the United States for several reasons.

TG Branfalt: I want to talk to you a bit more about some of the details on the ballot, and then some of the pitfalls and what goes on with the whole process, but before we get into all that I want to take a short break. This is Ganjapreneur.com podcast with TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt here with Jeff Hank, founder of MI Legalize. Before the break, you were talking about the new push in Michigan, your new ballot initiative. Before we get into the details of that initiative, can you tell me more about the process? I see all the time on Facebook you guys are offering training courses and meetups and things like that, so what are these training courses like and what do you guys, you know, discuss when you get together?

Jeffrey Hank: Yeah, absolutely. We’ve got a great team of people working on this, and some of them are volunteers, a few of them are staff. What we learned is that everybody … so many people want marijuana to be legalized. The problem is getting people actively engaged to work to make that happen, or getting them to write the big checks necessary to pay someone else to do the work. Because it just can’t … I don’t want to say it can’t be done by volunteers, but it is an enormous task, which is really more suited to almost a corporate model of running a campaign. You have to have bodies in the street, working. So those people who are doing that have to be efficient and they have to be trained well. We lose a lot of signatures from people just because they don’t know how to petition. It’s not something that most people do. Everyone’s aware that you can petition, but most people haven’t actually done it, and it’s an interesting thing, but once you learn how to do it, it’s pretty straight forward and easy.

TG Branfalt: What does someone need to learn?

Jeffrey Hank: It’s just the basics. So in Michigan, we have 83 counties. Every single county has to have its own petition sheet, so if you live in Wayne County and I live in Ingham County, Detroit and Lansing, we don’t sign the same petition sheet. So a petitioner has to, in theory, have up to 83 different petition sheets for every Michigan county there is. You have to make sure it’s filled out properly and signed and dated properly and all that kind of stuff, so we just lose some potentially good signatures from errors on petitions that could be avoided. So one of the things we’re trying to do is to train these grassroots volunteers to accurately fill out petitions.

Then also, just to make sure that they’re aware of the law. It cracks me up because people always love to talk about the law and what we’re doing or whatever, but I find most people haven’t actually read it. So we just want to make sure that our petitioners who are out there on the street talking to people understand the nuances of the law, because you do get people who are very interested, very curious. They may even want to read it on the street, and they may have questions. So we just try to make sure everybody’s well informed, and you know, there’s a …

Since our petitioners are volunteers … There’s sort of a black stain on the industry of professional petitioning, where some of these professional petitioners who work for money, they really misrepresent the petitions on the street. They’re out there to try to get as many signatures as they can as fast as they can by any means necessary, and that’s sort of due to the timing and what you have to do. I’m not making an excuse for it, but they’re desperate to get those signatures, because if they don’t, they’re not going to make the ballot.

TG Branfalt: That can lead to legal challenges by district attorneys who say that they were misrepresenting what the petition does. That’s happened in other states.

Jeffrey Hank: Yeah, that’s absolutely right. So we’re trying to prevent that kind of stuff. This is about legal compliance, but it’s also about educating the citizens, because if we have a couple hundred people out there every day and they’re interacting with a couple people themselves every day, it starts adding up over time. So we want people, when they’ve talked to a petitioner, to feel like they’re getting told the truth, they can get any information they need, and that’s really important because we want those people not only to sign the petition, but to come out to vote. We want them to tell their friends and neighbors and all that. So we really look at this as a … It’s not just a smash and grab campaign, this is serious hearts and minds, each one teach one. Every person that can be educated on this issue or has a good interaction with us or somebody working on the campaign generally, hopefully is converted into an actionable voter later on and a proponent for the cause.

What we find is … You have a percentage of people and it’s hard to put a number on it, but let’s just say 30-40% of people, who are probably just going to vote ‘no’ on marijuana. Unless you can have a good conversation with them and educate them in a respectful way, you’re not likely to change their mind. So what we try to do is … We’re not trying to force anybody or argue somebody through some forceful persuasion, but we want to educate people, and we think if we do that politely and nicely and in the right way, one by one we’re going to start making that number lower and we’ll win. So that’s the purpose behind it.

You know, one of the things we got … A lot of people last time didn’t have that training, or they complained, like they didn’t know where to get petitions. So we just spend a lot of time right now making it publicly known if you want to petition, you can come to all these meetings. We have people up in the upper peninsula right now, all over the state. We’re trying to go to every area so anybody who wants to learn how to do this, anybody who’s never done it, has that opportunity and can get informed. That’s really the purpose of it.

TG Branfalt: So the ballot initiative … You’re trying to legalize adult-use cannabis, as has been done in Colorado, California, Massachusetts, Maine, Washington, Oregon. So since you guys have these other sort of laws to work with in other states, how do you determine what the best practices are for your petition?

Jeffrey Hank: Right. Well, we took a lot of what we did in 2016. That was sort of our starting template as MI Legalize. Now, what was different about this petition and the last one is we solely wrote the last one on our own, and that was done by an elected committee of Michigan activists and lawyers and what not. This time we worked with some other groups including Michigan NORML, Marijuana Policy Project, The Drug Policy Alliance, the ACLU of Michigan, and various trade and industry groups. So we kind of took a mishmash of …

Okay, what did MI Legalize have in its petition last time and what are the most … You know, we created our first petition based on popular consensus. We didn’t do things like, “Oh, this is just popular, let’s do it,” but we actually tried to say what is it that your average person would be willing to accept, and what would your cannabis industry people be willing to accept as a ground floor. We spent two years doing that, so we had a pretty good idea of what people in Michigan are willing to accept, and it’s fascinating because you can look at these other states … And you can talk to someone from some state where they’re only allowed to grow four plants, and maybe a lot of the people think that’s an acceptable amount for a personal home grow. But here in Michigan, people are so used to the Medical Marijuana Act that they think having 12 or 72 plants is the bare minimum, right? So we just have certain local conditions that have caused people to take certain policy positions.

So we took what we could from MI Legalize, which was still relevant and which was crafted before the state passed its own regulatory structure, so we had to adapt to that. Then we used the expertise of the national groups to say, okay, what worked in November 2016 in the states that won … What led to Arizona being the one state that failed, and how can we try to avoid all those mistakes in Michigan? One was first just not having two petitions, so we had to work really hard in a coalition to come up with one petition we could all support, which thankfully did happen. And the rest was just looking at, state by state, what’s best.

At MI Legalize we come from the activist quilt of the cannabis family, if you will. So for us, we’re about principle. So we argued very hard on these things of … You have to have at least 12 plants per adult to be able to grow. We have to have higher possession limits than these other states. We want a no possession limit. We wanted strong possession limits for keeping the fruit of your own harvest. We wanted good penalties being only civil infractions rather than crimes. We wanted to make sure you could grow hemp without a bunch of state interference. So we kind of looked at how these things played out in other states, and we know that we’re still almost a year and a half away from the elections, so how can we create something, hopefully, that had the things that were already popular in Michigan but, to the extent we could, foresee what the arguments of opponents and other people may be up to 2018. We know most of those from the other states and dealing with What About the Kids and edibles and driving.

So we tried to get a little more ahead of those issues than we did last time, and I think what we came up with was a law that prevented the monopoly market, Responsible Ohio type stuff. We have this micro-business proposal which would allow any adult over 21 to apply for a license to grow up to 150 plants, and you could sell directly to consumers. That was designed, in part, as a way for people who were caregivers and who may be moving into a market but not necessarily moving into the full larger medical cultivation market or something, to be able to basically double the production they currently do and to be able to serve adults as well.

We kept the Medical Marijuana Act untouched. It’s a big deal here locally. Nobody wants their rights under the Medical Marijuana Act, which are pretty broad, to be infringed by this new law. So the Medical Marijuana Act and your rights as a patient and caregiver are still protected. I’m probably leaving out a bunch of stuff, but that’s what we looked at as the best practices. We said we want to push the limits on civil liberties as far as we can go compared to other states, which we did, and we want to make sure that it’s as fair and open a market as we possible can make it.

TG Branfalt: Did you guys include so-called equity rules that would require licenses to go to underserved communities such as those in Detroit?

Jeffrey Hank: We did. It’s not a firm requirement, but it is in the law that the State Department of Licensing and Regulatory Affairs is supposed to look at exactly what you just said, and that has in mind particularly minority communities in Detroit and maybe Flint … anywhere, really … but to make sure that people who have been disproportionately affected by cannabis laws are not kept out of this market. So those rules … We didn’t specifically craft the details of them, but the provision is in there for LARA, the state agency, to implement those and to study and report on this issue over time. So if we get a year or two into this and it’s clear that minority applicants are not receiving licenses in proportion to the population or something like that, then the state can remedy that.

So yeah, that was really important, and the other big one was the expungement of past criminal records, which we fought really hard to put into the law and we studied it for months. There were so many legal concerns, and this is why we didn’t put it in in 2016. We all wanted it in there. That’s a big piece of it, and it’s very popular too, even with people who don’t support cannabis. At the end of the day, there are so many legal concerns over it, and after having been through what we went through last time, to be honest we’re a little nervous about legal challenges. So we thought, okay, if we spend another million or two dollars and work our asses off again for another six months on this and then we’re kept off the ballot again because of one provision in the law …

Expungement in Michigan is an odd thing because Michigan’s petition laws … We don’t have a single subject rule here, but we have this other thing called multi-object or multi-title challenges, and unlike other challenges to laws, if they were to find that provision unconstitutional or unlawful for whatever reason, it actually would potentially invalidate the entire initiative. In some situations when you have an unconstitutional or unlawful provision, that provision is severable. So basically, that provision won’t apply but everything else does, but because of this concern that it would actually tank the whole initiative, it was too big of a concern. So that was a real let-down for us, but we … The social justice issues were very much on our mind, and that’s one of the reasons we fought so hard to try to have an open market and have low barriers of entry so that it wouldn’t just be millionaires and what not getting into this market.

TG Branfalt: Now I know that you’re entrenched with this current campaign, but is expungement of low-level cannabis possession crimes or what have you, is that something that could be another ballot push in the future?

Jeffrey Hank: Yeah. In fact, we even talked about … We even thought about doing it this year, but we were concerned that it was taking on too much at once. So part of the MI Legalize goal, and this is something we’re discussing internally, is what’s next? We started out with a goal of legalize cannabis in Michigan as our sole purpose. We work with all these other groups, we support things, but that’s really our purpose … But we’re looking at this as now, not only may we end up morphing into an organization that supports candidates and local ballot proposals, but perhaps we do another ballot proposal in 2020, which would be the expungement of criminal records. That’s part of the reason why we’re trying to train all these grassroots people, because we want this to be an investment in the people of the state of Michigan, not just a one and done campaign. We want these people to be here for the long term, because the implementation period of this law … It’s going to be several years of battles, likely, at the local level.

So by 2020, maybe that will be our next primary focus … will be the expungement. There’s also a school of thought that the legislature has to have, and other states may address this issue for us once we legalize cannabis. So it’s definitely on the table for discussion, and depending on what happens, that may be the next big project.

TG Branfalt: I want to talk to you a bit further about cannabis policy in the Midwest, but before we do that we’ve got to take our last break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt, here with Jeffrey Hank, founder of MI Legalize. So, talking about cannabis policy in the Midwest, it seems that Michigan’s leading the way … Wisconsin, they have the CBD-only law … Indiana, same sort of limited medical cannabis regime … Ohio we had discussed, they had that Responsible Ohio ballot question that was defeated a few years ago. I mean, it was primarily over concerns that it was a monopoly-type law and activists didn’t like it.

So, looking at the Midwest as a whole, the odds are good that Michigan is next … does legalize. They’d be the first state in the Midwest to have adult-use cannabis. What would happen next? Ohio, again, came close. Wisconsin, Indiana … their laws are so far behind the rest of the country … Is there any chance there? What are your feelings about the Midwest?

Jeffrey Hank: Yeah. Well, it’s fascinating because when we started this a few years ago, we started … One of our talking points was, to the north of us in Canada it’s going to be legal, because Trudeau had announced it at that time, and to the south of us we thought that maybe Responsible Ohio would pass. It was astounding to see the voters reject it so hard, and as you mentioned, it wasn’t because of cannabis, it was because of the monopoly market type stuff. So the Midwest got a two year or three year delay because of Ohio and Michigan, unfortunately. We could have popped this whole thing off much earlier.

Now, I’ve been up over to Ontario and Toronto … I have family there and what not, and it’s a great cannabis culture there, too … And so we’re seeing some of that is influencing us here, in Michigan anyway, and will probably continue to do so. The Canadian operators are all over Michigan right now seeking to get into the industry here, and they’re kind of ahead of us a little bit, too. So I think you’re going to see a press, assuming Michigan goes, for these other states to move. There’s whispers that the Illinois legislature could do something about this. I think you will see Ohio go with the initiative process. Maybe they’ll get something together even for next year. I’m not aware of that, but I’ve heard rumors of it, and I know by 2020 there’s national groups planning to go there and all that.

So hopefully, we will set the stage here in the center of the country, for a model for the surrounding states to emulate … And hopefully, again, like you said a minute ago, the entire country’s going to have to decide these things on a state by state basis unless the Feds change the whole game. So we’re hoping that we will inspire other activists in other states to look at what we did here in Michigan as a model, and to really fight hard and believe that you can do it. And it takes a lot of work, but if you bring people together and you have a good plan, and you spend the time, it can be done. So I hope that we inspire people more than anything else to push for the things that they actually want to see, because one of the things I’ve found out …

I like to talk about little old ladies, but I talked to a lot of little old ladies, and they’re some of my favorite constituents because they’re usually pretty simple, factual type people and they’ll say, “I remember when marijuana wasn’t illegal, and I’ve been watching it for 60 years and this is ridiculous.” You know? They’re just so straightforward about this, and I think that when that kind of demographic is ready to vote for this, we’re going to win and we’re going to change things.

So as people are seeing … One of the things that we’ve noticed even recently in surveying the Michigan public, is they look out west or they look to Massachusetts or Maine or whatever, and they say, “Everything’s fine.” It was one thing when it was just Colorado, but now you have all these other states and we’re kind of scratching … You see politicians even scratching their heads and saying, “All right.” Just the reality of it being in your face and people knowing someone who lives in California or Nevada or wherever, and seeing all these reality TV shows and … I mean, it’s become mainstream and you’ve got Snoop Dogg and Martha Stewart making jokes on their cooking show. I just think your average person, and even little old grandmas and stuff, are seeing this and they realize it’s fairly inconsequential.

It’s not inconsequential in the fact that it’s helping people when we legalize, because the most dangerous thing about cannabis is being arrested with it, but … They’re realizing that it’s not this reefer madness thing, right? And more than anything we can even do, it’s just these natural things playing out that is changing the general consciousness.

So I’d like to think we’ll lead the way here in Michigan and, again, that other people will look to us and push back on these things like CBD-only or non-smokable forms only. Florida and Texas are the big states to look to, I think, coming up in the near future. Texas still arrests 70,000 people for marijuana. They don’t have the initiative process, however there’s legislators down there in Texas with that Libertarian streak, and I think if Michigan can go and we can get one or two other Midwest states to go, and you get one of those other big states, whether it be Florida or Texas or maybe even New York or something, at that point … I don’t have a crystal ball, but I’ve got to imagine the rest of the country will follow suit for the most part, or it’s going to eventually cause action at the federal level.

What I hear, right now anyway, is all those west coast states and Maine and Massachusetts, you know, all their congresspeople are clamoring to solve the banking problems and they’re clamoring to solve a lot of these other regulatory issues that are holding up the normalization of cannabis commerce. If that stuff gets solved in the next year, we don’t have to deal with any of it here in Michigan. It all hopefully will be resolved by the time we’re on the ballot, and I think if those things are resolved federally, everything will just fall into place. Maybe that’s too rosy of an assessment because nothing’s guaranteed, but it just seems like the trend is finally headed in the right direction. The cat’s out of the bag, if you will. So that’s really my goal here, is to make sure we win and hopefully provide a good model for people elsewhere to learn from our successes, but also our failures.

TG Branfalt: So what advice do you have for advocates in the few states with initiatives processes that might attempt to undertake this initiative push?

Jeffrey Hank: Plenty of advice, but to start … You know, start early. Start in plenty of time, do your research on what are laws in your individual states, and then start organizing. And you have to look at this … How we started … We tried to unify and organize the cannabis community to the extent we could, which … We could make all sorts of jokes about that. I kind of like to refer to it as herding stray cats, because cannabis people are passionate people. They have strong opinions and I’m one of those too, but we have to realize that when you’re crafting an initiative or a law, no one … Unless you’re the sole person writing it, no one’s going to get exactly what you want.

So try to start with the base. You’ve got to have the base, and if you can get a large enough portion of the base to agree on some policy, you know … Get a few experts to help craft the language and make sure you craft good language, and then make sure you get an election law lawyer to look it over to make sure it’s kosher with your state election laws. And then spend the time going around and trying to make an inclusive organization that brings people in. If you have a good plan and you have an open door, I think you have the basis for a recipe for success.

The hard part is doing all the work or raising all the money. Now, with most of these states already … a lot of the big states already legalizing and you’re seeing this next circle come up, I think you’re going to find more and more money pouring into these things, because industry people who want to support it are going to be making more money, particularly if they’re in an illegal state right now. They’re able to then see the benefit of investing in a political campaign to change laws to open the doors for business. So I think money will be available for people moreso in the future than it was for us last time, or maybe when there’s six or seven campaigns at once versus if there’s only one or two.

So in a nutshell, it’s just do your due diligence and try to do the best you can to overcome whatever personal dramas you have. That’s something that I know I’ve heard … Have led to some of their problems in Ohio. There’s so much infighting and drama within the cannabis community that they couldn’t put forward a unified effort. We’ve had things like that happen in Michigan, where we have people who ought to be on the same side generally attacking each other, kind of like the … Perfect is the enemy of the good, or the good’s the enemy of the perfect, however you want to say it. You’re not going to probably get that with a ballot initiative. So put together the best plan you can that you think the voters in your state would be willing to enact, and go for it. And don’t be afraid to fail, and don’t listen to anybody who tells you you can’t do it.

If … When I started this thing up, and it wasn’t just me … There were a lot of other people involved … I can’t tell you how many people we went to and they just didn’t want anything to do with it because they just thought it was such a daunting task. You just have to be stubborn and you just have to have tunnel vision, and you just have to realize what your mission is and you just have to go for it. And those people who … It’s like Field of Dreams. If you build it, they’ll come. If you build a good law with an inclusive organization and you’re not full of drama, I think people will be attracted to it and they’re going to be willing to do the work.

That said, it’s a lot of work, so take your time to do it. A lot of political experts tell me it takes two or three attempts at the ballot, sometimes in states, to get something passed. And that’s not just marijuana, that’s ballot initiatives generally. We’re probably at a time now where if you have a good marijuana plan and you put it before voters in most states, you’re going to have majority support. So if you can keep those parameters in mind, you should be successful. And if anybody is really serious about running a statewide campaign and wants to talk personally, feel free to shoot us an email at info@milegalize.com … I-N-F-O … And we’d be happy to have a conversation if you need help, particularly if you’re a grassroots group.

TG Branfalt: Well I want to thank you for taking the time to come on the show, and you’re really a fountain of knowledge, especially when it comes to the balloting process and … I really want to wish you guys the absolute best of luck here in Michigan, and hope that the next interview that we have, it’s no longer a theory … that we’ve actually gotten to an adult-use market in Michigan.

Jeffrey Hank: Right. Thank you. Thank you very much.

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

End


Kristi Knoblich Palmer: Navigating New Regulations in California

Kristi Knoblich Palmer is the COO of Kiva Confections, a pioneering force in California’s cannabis edibles marketplace, and is a founding member of the California Cannabis Manufacturers Association (CCMA).

In the following episode, Ganjapreneur.com podcast host TG Branfalt speaks with Kristi about the founding of Kiva Confections, training to become an expert chocolatier, and California’s medical (and soon-to-be recreational) cannabis industry’s scramble towards a regulatory structure. The two also discuss the growing trend of micro-dosing cannabis, the founding and current goals of the CCMA, and much more.

Listen to the podcast interview below, or continue scrolling down to read a full transcript of this week’s episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m your host TG Branfalt and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Kristi Knoblich Palmer. She is the chief operating officer of Kiva Confections and the founder of the California Cannabis Manufacturers Association.

How are you doing this morning, Kristi?

Kristi Knoblich Palmer: I’m great. How are you?

TG Branfalt: I’m well. I’m well. Sort of celebrating West Virginia’s success yesterday. They’re knocking on the door of medicinal. It just needs to be signed by the governor so you know, the 26th state. Looking good today, huh?

Kristi Knoblich Palmer: Looking good. We have a lot to celebrate this week. We really do.

TG Branfalt: Excellent. So I want to get right into it. Tell me a little bit about yourself, your background, and how you got started in the cannabis space.

Kristi Knoblich Palmer: Certainly. Yeah, so my partner, Scott, and I, we’re now partners in business and partners in life. We started off in 2010, starting Kiva as a business out of our home, in our home kitchen in the Bay Area here, California. Really we saw an opportunity for a better cannabis edible.

There wasn’t anything out there that was packaged professionally or labeled, nothing that we would want to bring home or, I always put things through the mother-in-law filter. There were no products out there that I would give to my mother-in-law.

Yeah, we got started with the testing labs. I’m developing formulas, and a brand, and a design for our company. We’ve grown it from there.

I don’t have a background in food science, or I’m not a baker, anything like that. Scott and I actually met in photography school in Santa Barbara. I guess we are just opportunists, I would say.

TG Branfalt: I had read that you were actually mentored by an Ohio chocolatier at a 100-year-old factory?

Kristi Knoblich Palmer: Yeah. Yeah. Yeah, so we started our company with the chocolate bars and we got feedback. People use their hands. Of course, you can’t see but they were indicating little pieces. They’d hold one hand in a cup and then they’d use the other one and indicate, “Oh, we want little pieces for your next product.”

We took that feedback and started looking at a chocolate-covered center. Scott loves chocolate-covered espresso beans so we thought we’d start there.

TG Branfalt: As do I.

Kristi Knoblich Palmer: Yeah, right? Who doesn’t? So that would allow us to, for the first time, really breakdown the dose. Get just a small amount of THC so that people could pop off the lid, eat just one, and go from there.

That product is particularly difficult to make so we went out and learned from who we dub “the panning guru” out of this really old chocolate manufacturing facility, which I think at that time we were in 2,500 square feet. They were in like 100,000 square feet.

So when we got to the facility we couldn’t believe our eyes but we spent a couple days out there. Actually, it wasn’t a couple days; it was one day. The apprentice for the guy who was teaching us, the apprentice, he laughed when we got there. He said, “There’s just no way you are going to learn to pan in a day.”

But we took studious notes and we brought the knowledge, what little knowledge we had adsorbed, and then made our period back to the Bay Area and started practicing, and eventually got it down to an art as well.

TG Branfalt: So did you tell them that you were going to introduce, that you were making a cannabis-infused chocolate?

Kristi Knoblich Palmer: We did, yes.

TG Branfalt: And what was the response?

Kristi Knoblich Palmer: Well, Kevin was really excited. Kevin was the panning guru, kind of a hippy sort of guy, and a little rough around the edges, great personality. He thought it was awesome and he was particularly excited when we invited him out to our facility to continue to train our team and to work with us on our equipment. It paid off for him in a few ways.

TG Branfalt: I want to kind of go back a little bit. I love that story. That’s why I kind of wanted to get to that early but when you started out in 2010, you know you said you don’t have a background in food science, you’re not a baker. How did you overcome some of the early challenges, not just with building the business but also with complying with regulations and that sort of thing out in California?

Kristi Knoblich Palmer: Complying with regulations was very simple because there weren’t any. That was a pretty low bar to cross.

You know, back in 2010, cottage and home-based businesses were the way to do it. We were fortunate. I grew up in the Bay Area so Scott … in a house that I grew up in. It was 2010; we were young and we didn’t have lot to lose.

We didn’t own homes, no kids. We weren’t married or anything so we didn’t have very, we couldn’t really go much further down. There was only up to go.

So with lots of roommates and family support, we put our family to work for us and paid them in chocolate and pizza.

We got going from there. Some of the hurdles, I would say a lot of the hurdles that exist today absolutely did not exist back then. That’s part of what motivates me and motivates us and I think the other members of our association as well, is because we all got to get started in an environment that was basically unregulated.

It encourages mom-and-pop, small businesses, home kitchen entrepreneurs who are looking for something different and have a lot of passion but maybe not a lot of expertise or money to become compliant.

TG Branfalt: How did you adapt? Like how did you adapt to the regulations?

Kristi Knoblich Palmer: Well, in California we really still don’t have regulations, which when I say that out loud it sounds crazy because we have medical laws that were signed by the governor. And then now we have recreational laws that were voted in.

Now we have a bill that it’s going to bridge the gap between the two but we still really don’t have anything that’s telling. We still don’t have that playbook.

We don’t have guidance on how many milligrams of THC should be in a product. We don’t have guidance on what kind of testing we should do and at what point in time. So there’s still a lot of gray area.

How have we been able to “become compliant”? You know, we’ve created our own standards along the way and basically it’s what you would do in the food world, right?

So Lay’s potato chips cannot brag about their food safety program because that’s just what consumers come to expect. Cannabis is not that way so we still can talk about and use in our sales pitch, essentially, that our products are safe for consumption, which is mind-boggling when you think about it.

You think about how many products just our company makes, and the numbers of the association, and throughout the state. So the businesses here are hungry for regulation and a playbook that we’ve been lacking for so long.

TG Branfalt: I want to talk to you a little bit about the edibles scene. In a Fast Company report, you had said that the edible market is 30 to 50 percent parents with full-time jobs and kids. Yet opponents say infused edibles, infused candies put children at risk.

Are you confronted often by parents about these sort of fears? And what do you tell them to alleviate those concerns?

Kristi Knoblich Palmer: You know what? You hit on a great question. As you know, in California, as I just explained, we do not have regulations for packaging and for marketing, right? So our company’s approach has been to really scale that back and create products that are very professional, and communicate with the intended consumer.

We don’t need friendly animals and things like that to convey a message to the consumer about responsibility. I use this as an argument for sensible regulation because the number of phone calls that we have received in our six years about children getting into cannabis: I can think of only one instance in six years.

So to me, the problem? I think it’s absolutely we need to protect children from edibles. I don’t think anyone can argue that we don’t need to do that because edibles are very potent and for all the sensible and logical reasons, we don’t want children getting into edibles.

But I actually don’t think that the problem is with our zero to five-year-olds. I think the problem exists more with teenagers. Childproof packaging and these kind of skull-and-crossbones on very onerous regulations don’t really speak to that crowd.

When parents come to us with their concerns, usually the majority of the feedback that we get are concerns around dosing, from parents who are using cannabis to treat children with autism or epilepsy. The stories and the feedback that we hear from parents often bring you to tears because their kids are developing into adolescents and young adults in a way that they haven’t been able to with traditional ways of treating the illnesses that they have.

TG Branfalt: And with those cases are you recommending more of a micro-dose or is it case-by-case sort of thing? And then kind of on the same thing is are you seeing trends towards micro-dosing?

Kristi Knoblich Palmer: Yes. Of course, I’m not a doctor so I can’t exactly make a recommendation. But what we do with our products and where edibles are going to be headed in the future is they will be uniform in content.

Once somebody figures out what works for them, and we always recommend people start very small with five milligrams or less, learn their dose, learn their body, and understand what feels comfortable and what’s working for them before they scale up and take anymore.

Yes, I think the trend towards micro-dosing is something that we saw back when prohibition was lifted. When you’re in a prohibition there is a natural desire for products that are very high in potency. They’re hard to get so you might as well get as much bang for your buck as you can and as much value as possible.

I don’t know about you but I don’t shop that way in my normal life. When I buy a bottle of wine I’m not looking at alcohol content and dollars per alcohol content. We buy brands, we buy Appalachians, we buy labels, whatever it is that speaks and works for you.

So yes, I think the trend towards micro-dosing and lower, more responsible cannabis consumption is alive and well out there in the industry and it’s just going to continue to pickup even more speed.

TG Branfalt: Micro-dosing, is that part of the drive behind that 30 to 50 percent market that you had said made up the edibles market?

Kristi Knoblich Palmer: Yeah, I think that segment of the market is looking for reliability. They’re parents. They’re employed. They need to go to bed at ten PM and wake up at six AM.

If you’re experimenting with edibles there’s a chance that you could not be able to fulfill the responsibilities that you have as a busy, responsible individual. We’ve tried to just, with our company and I think the industry is moving this way as well, just provide a reliable experience for people so that they can get done what they need to get done and they have a positive experience with cannabis.

TG Branfalt: I’m a huge proponent of micro-dosing. I just want to say that. I have said this in a couple of interviews now but I didn’t realize that that’s something I was doing, kind of on my own. It would be like, “Oh, I’m going to have this five-milligram gummy and it’s going to make me feel great, especially when I have to like go out in an anxiety-inducing situation.”

So I really commend the manufacturers who are recognizing that there is a population that really, really doesn’t want the 120-milligram bars and does want that 5-milligram, I really do commend you guys.

Kristi Knoblich Palmer: Thank you. Yeah, absolutely. We just are experimenting still here, really. So yeah, the feedback seems to be really, really positive around micro-dose products right now.

TG Branfalt: I want to talk to you a little bit about your role at the California Cannabis Manufacturers Association but before we get to that we’ve got to take a short break. This is the Ganjapreneur.com podcast, I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Kristi Knoblich Palmer, Chief Operating Officer of Kiva Confections and Founder of the California Cannabis Manufacturers Association.

Before the break, we were talking just a bit about the products that you make and the trend of micro-dosing in confections and edibles but I want to talk to you about your role at the California Cannabis Manufacturers Association. Why don’t you tell us what the CCMA does and why it’s important?

Kristi Knoblich Palmer: We formed this group so that we could specifically target the regulations, or the MRSA regulations, our medical system, that basically was going to force manufacturers to not be allowed to hold a distribution license. That was shocking and alarming that that was going to be allowed because that’s just not the way that the industry has worked in California up to this point.

That was really the genesis of the association, was to tackle that specific issue. There’s been some positive energy around that and things look like they are coming out in our favor.

Of course, it’s not over until it’s over so we’re going to continue to work on that issue but we will also pivot and work on other issues that are equally as important as regulations are implemented.

TG Branfalt: When you mention not being able to hold a distribution license you’re referring to vertical integration. Am I correct?

Kristi Knoblich Palmer: Correct.

TG Branfalt: Under Prop. 64 vertical integration is allowed, meaning that cultivators and manufacturers can distribute their products. That’s something that’s been supported by the governor as recently as this week but not law enforcement. Obviously you support the plan but why do you support this plan as opposed to the competing proposal that would require third parties to transport cannabis products?

Kristi Knoblich Palmer: Back in 2010 and really up until about the last 2 years, the only way for a manufacturer to get its products to market was to distribute it. You couldn’t call a cannabis distribution company and start a relationship. Basically there were no distributors to hire.

That was the model that was established by, really, most manufacturers that have been in existence longer than two or three years. So over the years, these manufacturers, myself included and the other members of the association, have developed their own distribution networks.

History has told us in the past that distribution is a very important element of the growth of any industry. Speed to market, and allowing for innovation, and a clear path to accessing your customer in forming those relationships really helps manufacturers sell their products.

We were having a really hard time understanding why we should not be allowed to continue to run and grow the businesses that we established and that have really been able to see the cannabis industry in California grow to the level that it is today.

TG Branfalt: What’s your response to the claims by members of law enforcement that allowing companies to distribute their own products opens the door to “criminal elements”?

Kristi Knoblich Palmer: You know, I try not get personally offended when I hear that.

Right? Set the emotions aside. I just think that there’s been little bit of fear-mongering going around at the capital. Special interest groups want to reach in and carve out a piece of the pie for themselves and protect a segment of the industry so that they can jump right in and preserve their margins for their other businesses.

Our reaction to that has been, “You know, if you have a great distribution company and you offer a really great service then people will want to hire you to do distribution.” I guess what we wanted to see was a level playing field.

We weren’t asking to keep those people out. We believe in healthy competition and if the other distribution company is better than mine then so be it. Dispensaries should be allowed to shop at those distributors as well.

We just feel that, as manufacturers, we also just deserve the right to do our own distribution and offer a competitive service to the dispensary customers.

TG Branfalt: I want to talk to you a bit more about what to expect as California migrates into a recreational system but before we do that we’ve got to take our last break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to Ganjapreneur.com podcast. I’m your host TG Branfalt here with Kristi Knoblich Palmer, Chief Operating Officer of Kiva Confections, Founder of California Cannabis Manufacturers Association.

Before the break we were talking a bit about vertical integration, which is just one of the things that is going to be determined in the coming months as California gears up for the rollout of the adult use regime. What are the CCMA members expecting as California legalizes, as far as regulations goes, staffing issues, expansion, and real estate?

These are all things that are obviously going to be impacted so what are you guys kind of expecting and preparing for as that happens?

Kristi Knoblich Palmer: I think right now our minds are on the testing labs. I think right now in California, since we’re still unregulated, we don’t have laws implemented just yet, there’s probably, a shot in the dark would be 25 percent of the testing that will need to be happening when we have our new laws is happening now.

On the day that we’re supposed to be mandating testing what happens to the volume at the labs when their volumes go up times-four? Having those strict testing regulations, we’re excited about.

We want to see pesticide-free cannabis. We want to see clean edibles on the shelves. That’s really, having trustworthy and reliable products on the shelves, is really what’s going to allow the industry in California to flourish.

In order to get our clean products to the shelves we need comprehensive testing labs. We need the ability, they need the ability to scale. So we either need more labs, we need maybe more equipment, whatever the labs need, whatever resources they need and expertise that they need to bring on to see and serve the demand that they’re about to encounter in 2018. That’s our next focus: how can we get the labs ready for 2018?

TG Branfalt: That seems to be an issue that’s coming up in Massachusetts, Maine, is that there’s this lack of testing facilities. Is there any way to bridge this gap or is it, I mean, is there any light at the end of the tunnel for manufacturers and producers in this regard?

Kristi Knoblich Palmer: Sure. I think sun’s setting in the new regulations, phasing in, in some fashion, testing regulations. We really can’t go from 0 to 60 overnight without encountering some serious choke points. It just could, it really could destroy and stifle the industry.

I think a phase-in of testing regulations would really help. Maybe incentivizing companies to test at the level that we really, at the goal basically. So some types of incentives that would help to do that or allowing, encouraging companies to bring testing onsite as well.

There are some, I think, techniques and things that can be done to try and tackle that. Maybe it’s even incentivizing labs, as well, to open up their services and begin to expand and bring on more people.

TG Branfalt: That’s another issue is staffing issues. Are you guys, are California manufacturers concerned that they’re not going to be able to find staffing and not be able to meet demand? Because demand’s definitely going to go up, you know, when this rolls out.

Is staffing a concern right now or … ?

Kristi Knoblich Palmer: I would say everything’s a concern right now.

Staffing is one of many but certainly, yes. When you start thinking, when you’ve heard from the guys in Colorado, businesses there talking about when they made their flip from medical to recreational that they had to be, they should have been prepared for five to seven times growth.

That’s what I’ve heard from other manufacturers there and some are only ready for double or triple. When you think about how do you scale your current operation to, say, times-four, that becomes a really difficult problem to try to wrap your mind around, right?

To try to scale to times-four when you don’t have volume already coming in the door times-four, means okay, you’re going to have to buy some stuff. You’re going to have to invest in some people and buy some equipment and increase the size of your facility.

How do you do that is with money. How do you get money is with a loan or taking on some investments. And you know, then we have our banking issues. So how are you going to get four-times the pay checks written, or pay checks involves the word “check.” How are you going to make payroll when everything is in cash? And you’re going to have four times the amount of volume in cash.

So there’s waterfall of issues coming down the line for us. I think ways that we can mitigate that, again, is phase-in of the regulations because what we know for sure is we have no idea what’s coming at us.

I think it’s going to take a lot of patience from everybody: from the operators, and from regulators and lawmakers alike.

TG Branfalt: Finally, I want to ask you, you’ve been so successful thus far and you’re very forward-thinking, and it’s very rare that you hear any business person say, “We want regulations.” That’s almost crazy, right?

Kristi Knoblich Palmer: Mm-hmm (affirmative).

TG Branfalt: So what advice do you have for entrepreneurs looking to get into the space? And what advice would you have them especially, if they were decided to come into California?

Kristi Knoblich Palmer: Sure. Advice for entrepreneurs: man, I could go on for hours with advice but if I had to just pick one, I would say, “Do your best to stay focused. Practice saying ‘no’ because in this industry there is so much opportunity that you can get caught up doing everything.” Right?

You can grow your own crops. You can do your own extraction. You can do your own manufacturing, distribution. You could do everything if you want it, right?

So staying in your lane, finding an expertise, and just doing what you’re most passionate about, and what you think. Listen to your gut. Listen to your heart and do what you think is best and I think you’ll be successful.

TG Branfalt: That’s really great advice, especially “doing what you love”. The cannabis industry obviously started from compassionate people who were there to help patients.

Now that it’s migrating into this legal regime of adult use I think that it’s really important, I’m not a manufacturer myself but I think that it’s really important for operators to remember where they came from and not get blinded by the dollars that are definitely about to start flowing in.

Kristi Knoblich Palmer: Yes. Yeah, absolutely. If you’re entering the cannabis space because of the money you’re in for a rude awakening. Because I think people think of the cannabis industry, and they think that there’s plants everywhere and there’s just money falling from the sky.

But those are two very common misconceptions and couldn’t be further from the truth because there’s a lot of experimentation and there’s no one telling you what to do. There’s a lot trial and error, and a lot of problem solving and Googling.

That couldn’t be further from the truth, at least in my experience but maybe we’re doing something wrong. I don’t know.

TG Branfalt: Finally, can you tell the listeners where they can find out more about the confections and more about the CCMA?

Kristi Knoblich Palmer: Absolutely. The CCMA has a website, the California Cannabis Manufacturers Association. Kiva Confections has a website as well where you can learn about the Kiva products.

The industry is growing so we always encourage people to participate and get to know each other, network, join the trade organizations. Tell people your perspective. Give your feedback because as the industry grows if you don’t speak up and stand up, and tell people how new regulations are going to affect you and your livelihood, and your business, they just won’t know.

Trade organizations are a really, really great way to do that and to meet other people in the industry and network. Highly encourage everybody to get involved in any capacity.

TG Branfalt: Well, I want to thank you very much, Kristi, for taking the opportunity to spend some time with us. I’m really happy that I got to speak to somebody who’s right on the cusp of this and working with micro-dosing and edibles, and also working in a trade organization.

This has been really a eye-opening sort of interview for me.

Kristi Knoblich Palmer: Great. Well, I’m so happy to be here. And like I said, really exciting time for the cannabis industry. We haven’t even hit the starting line here, in California. That’s the part that is just really exciting and thrilling.

I’m very happy to be here. Thank you for the opportunity.

TG Branfalt: You’re absolutely welcome.

You can find more episodes of the Ganjapreneur.com podcast in the podcast section at Ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast.

You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Jeremy Sebastiano. I’ve been your host, TG Branfalt.

End


Medical cannabis plants inside of a California home grow operation.

New Hampshire Gov. Likely to Sign Cannabis Decriminalization Bill

Cannabis decriminalization is headed to New Hampshire as a bill to do just that has passed the Assembly and is moving to the desk of Gov. Chris Sununu, who has publicly supported the plan and will likely sign the reform bill, the Concord Monitor reports.

The measure will spell the end of criminal possession charges for adults caught possessing up to three-quarters of an ounce, making it a violation carrying a $100 fine for the first three offenses. Additional offenses within a three-year period will be subject to misdemeanors and higher fines.

Democratic Rep. Renny Cushing, a long-time proponent of cannabis reforms in the state, said it “makes no sense” for New Hampshire to be jailing people for cannabis possession while other New England states, namely Maine and Massachusetts, are rolling out adult-use programs.

According to a report by the American Civil Liberties Union of New Hampshire, the state spent more than $6.5 million enforcing cannabis possession laws in 2010 and black people were 2.6 times more likely to get arrested for possession than whites.

Another bill adding chronic pain and post-traumatic stress disorder to the state’s medical cannabis qualifying conditions list is also in the hand of the Democratic governor but he has not indicated whether he would sign the legislation.

End


View from under the canopy of a licensed indoor cannabis grow operation.

Nevada’s July 1 ‘Early Start’ Launch May Face Delays

A recent complaint filed by Douglas County attorney Jim Hartman may delay Nevada’s Early Start adult use cannabis regulations — adopted on May 8 by the Nevada Tax Commission — by up to two months from the July 1 target date.

According to a Las Vegas Review-Journal report, Hartman filed an official complaint last Wednesday with the Nevada attorney general’s office. In the complaint, which he had threatened to file during the May 8 meeting, Hartman argued that the May 8 meeting’s agenda broke state law because it “did not reference ‘marijuana,’ ‘early start’ or ‘Question 2.'”

Commissioners at the meeting chose to adopt regulations for the Early Start market anyway, saying at the time that they did not believe their agenda violated the law.

However, if the tax commission’s agenda is found to have violated state law, commissioners would have to revisit the agenda item on June 26 — which could mean a two-month delay for Nevada‘s adult use cannabis regime.

The Nevada Tax Commission began accepting applications earlier this month from existing medical cannabis companies to be the first participants in the state’s adult-use market.

Eight U.S. states (Alaska, Washington, Oregon, California, Colorado, Nevada, Maine, and Massachusetts) and Washington D.C. have legalized recreational cannabis.

End


Close-up view of a medical cannabis plant's cola and sugar leaves.

CBD Seizure Drug Considered Effective Following FDA-Recognized Trials

A new study published in the New England Journal of Medicine confirms what many patients, parents, advocates, and physicians already know – CBD reduces seizures. According to a Forbes report outlining the study, researchers found that patients with Dravet syndrome receiving CBD treatment experienced half the median seizure rate of the baseline rates from 12.4 to 5.9. In the placebo group, 60 patients total, their rates remained almost unchanged from 14.9 to 14.1.

Forty-three percent of participants receiving the oral solution CBD treatments experienced 50 percent reduction in the frequency of convulsive seizures, while 27 percent of the patients in the placebo group experienced such a reduction. One in 20 patients in the CBD group were seizure-free over the 14-week trial but no patient in the placebo group was seizure-free.

Patients in the CBD group did experience side effects including fever, sleepiness, vomiting, and changes in liver enzymes and more in the group withdrew from the trial.

The trial was conducted by GW Pharmaceuticals who manufacturers Epidiolex – a seizure drug which has been fast-tracked by the FDA. However, the drug would only be available to patients when all other conventional treatments have failed. GW is publicly traded on Nasdaq under the GWPH symbol.

End


The Vermont Statehouse in Montpelier, Vermont.

Vermont Senate Passes Compromise Cannabis Bill, House Extends Session

Vermont’s legislature could take up cannabis legalization before this session ends after all, as the Senate passed a compromise bill on Friday which could be taken up by the House on Wednesday, the Associated Press reports. Last week, the chambers passed separate measures that were too far apart – the House version would allow adult possession and cultivation, while the Senate version would implement a taxed and regulated regime.

The legislature was set to adjourn on Saturday, leaving both bills in limbo, however Democratic House Speaker Mitzi Johnson said the chamber would reconvene on Wednesday. It’s not clear whether the House will take up the compromise legislation; which would legalize possession of small amounts and limited home grows by adults beginning in July 2018. In the meantime, a commission would develop a tax-and-regulate scheme and present it to the legislature next year.

Sen. Dick Sears, a pro-legalization Democrat, called the compromise “a way for Vermont to join two other New England states (Massachusetts and Maine) to have a legalized, regulated seed-to-sale system at some point in the hopefully near future.”

The measure passed the chamber 20-9. However, Gov. Phil Scott, a Republican, has not supported any plan legalizing cannabis and there is no guarantee he will sign the measure if it makes it to his desk.

End


The Colorado State Capitol Building in Denver, Colorado.

Colorado Lawmakers Back Off Plan to Legalize Cannabis Clubs

Colorado lawmakers have backed away from a plan to legalize social cannabis clubs statewide following disapproval voiced by Gov. John Hickenlooper, who said that the move could attract a crackdown from the Trump Administration, according to an Associated Press report.

The proposal originated in the Colorado Senate, where it was approved last month with bipartisan support, but House lawmakers ultimately turned down the measure.

Gov. Hickenlooper said last month that he would veto any cannabis club measure allowing indoor smoking that came across his desk, arguing that “given the uncertainty in Washington … this is not the year to be out there carving off new turf and expand markets and make dramatic statements about marijuana.”

There are currently an estimated 30 cannabis clubs active in Colorado, all of which exist as private clubs operating under a patchwork of local laws.

The social use measure would have been the first statewide acceptance of social cannabis clubs.

The legislature’s retreat, however, demonstrates the uncertainty felt by lawmakers in legalized states about the Trump Administration, who has so far refrained from making a firm statement one way or another about its stance on the cannabis legalization laws that have been passed in Colorado, Washington, Oregon, Alaska, California, Nevada, Massachusetts, Maine, and Washington D.C.

Colorado lawmakers passed a measure earlier this month to ban cooperative cannabis grows in the state, which had allowed people to assist others in the home-growing of cannabis.

End


Susana Martinez, the Governor of New Mexico, speaking at a Bureau of Reclamation event.

New Mexico Governor Vetoes MMJ Expansion Bill

New Mexico Republican Gov. Susana Martinez has vetoed her third cannabis-related bill this session, striking down a bill that would have expanded the state’s medical cannabis program. Last month Martinez vetoed two pieces of legislation that would have allowed for industrial hemp production in compliance with the 2014 Federal Farm Bill.

The measure would have allowed registered medical cannabis patients in New Mexico to receive organ transplants – an issue that has recently sparked controversy after reports emerged about a 32-year-old in Maine who was denied a kidney transplant due to his cannabis use. Additionally, the legislation would have added 14 qualifying conditions to the medical cannabis program, including post-traumatic stress disorder, opioid use disorder, and chronic pain. The law would have also permitted reciprocity in the program for non-residents.

Although Martinez offered no explanation when she vetoed the hemp bills, she did include a statement with the rejection of the medical cannabis reforms. In that executive message, Martinez said it is the responsibility of the Department of Health and the Medical Cannabis Advisory Board to add conditions to the qualifying conditions list and that adding conditions via legislative action “would eliminate an important responsibility of the Board.”

The governor opined that adding opioid use disorder was redundant because people who have chronic pain conditions are already allowed access to medical cannabis, adding that adding the addiction disorder would “likely cause a rapid increase in program enrollment which the program is currently unable to sustain.”

Martinez said that allowing reciprocity “may erode program integrity” because states have different rules and not all states require identification cards.

“Maintaining the integrity of our medical marijuana program is vital,” Martinez wrote in the message to lawmakers. “While House Bill 527 contains many positive changes to the program, it also contains several aspects that may dilute the program and erode its intent.”

End


Spark the Conversation: Aaron Justis, Buds and Roses

Aaron Justis is CEO of Buds and Roses, a seasoned medical cannabis dispensary in the Studio City neighborhood of Los Angeles, California.

In this podcast episode, Aaron hosts Spark the Conversation‘s Bianca Green for a conversation inside of the Buds and Roses dispensary location. This interview was recorded during the Spark the Conversation bus tour last fall, before California had officially voted to end the prohibition of cannabis.

The interview covers the scope of Aaron’s cannabis career, which began with the leap of faith of uprooting from Illinois to move to California and join a technically illegal industry, as well as his many long-term activism efforts. Though this conversation technically took place during the Spark the Conversation bus tour last fall (before California voters approved Prop. 65 to legalize adult-use cannabis), we hear from Aaron about his predictions for the L.A. cannabis market and he offers his input on what qualities are most important for an entrepreneur entering the cannabis space.

Tune in below, or scroll further down to read a full transcript of the interview.

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


Listen to the podcast:


Read the transcript:

Bianca Green: Welcome to the Spark the Conversation podcast, in partnership with Ganjapreneur.com. I’m your host, Bianca Green. Today, I get to sit down with my good friend, Aaron Justis, of Buds and Roses in Studio City, a dispensary that’s existed since I’ve been in the game, so over eight years. I’ve known Aaron for many years. He was always a participant in the Cannabis Cups so I got to know him and his family there.

Then I always saw Aaron in DC and Sacramento, so he was one of the very, only people, really, that I would always see at both places. You know, in advocacy and in the competitive side of the cups. I’ve always had a kin toward him because he participated in being a part of the change. He’s the CEO of Buds and Roses and has strains that they developed there. It’s one of the nicest dispensaries I’ve been in. It’s just a really upscaled, beautiful, really comfortable environment that a lot of clientele that’s in that area are very comfortable going to.

He really did a lot to change the stigma of how people get access to their medicine and I admire him for a lot of his work. I’m really excited to talk to him today about his entrepreneurialism and kind of see where he’s at. One of the things that I think that we’re looking at achieving with this podcast is getting information out there to people so they understand what’s going on. What some of the things people have been up against running businesses and how to be responsible through advocacy, as well as being an entrepreneur.

Hearing from him and some of our other guests that are going to be throughout this podcast I think are going to be really exciting because some of these people are the pioneers and it’s really good information so I’m glad to have everybody with us today.

Hi, Aaron. We’re here today with Aaron Justis of Buds and Roses. Good to have you. Thank you so much for being here.

Aaron Justis: Thank you for having me.

Bianca Green: Aaron and I have known each other for quite some time, right? I met you, I think the first time I met you was at a AC Unity Conference in DC when we went to lobby but one of the interesting things about you, Aaron, is that I always saw you at a time when it wasn’t really popular being at the cups as a vendor and then also as an advocate in DC and Sacramento.

There were very few people that I saw on a crossover and so I’ve always had a camaraderie with you based on that and just watching your business flourish. You going from your first location down the street and now being in this awesome location, I’m really proud of everything that you’ve done with Buds and Roses and the way that you’ve kind of branded yourself and put yourself out there as a leader in the community.

Aaron Justis: Wow, thank you.

Bianca Green: Yeah.

Aaron Justis: Thank you. That’s awesome.

Bianca Green: Yeah. I guess one of the things we should really start talking about is how did you get into the industry?

Aaron Justis: Let’s see. I can go really far back and, when I was probably 15 is when I first got in the industry, but I started really using cannabis when I was 17 for what I later found out to be medical purposes. I didn’t really know why I was using it at first but I knew I liked it. When I was about 19, I read Jack Herer’s book The Emperor Wears No Clothes and it just totally blew me away how cannabis, just the lies that we’re told to make cannabis illegal and then the effect that that has on so many people in so many communities and the damage that it does.

It put a fire in my belly and I went and attended my first NORML conference I think in 1998, actually met Jack Herer and spent a little time with him and, from there, just kind of got into it and did what I could legally in the cannabis business, which was started a hemp clothing company and just promoted cannabis and kind of like sparking the conversation back then by having shared such a set like marijuana medicine shop or save the planet but cross the E out so it’s like save the plant and kind of just did that and started going to High Times Cannabis Cups but they were only in Amsterdam then. Yeah, that’s kind of how I got in.

Bianca Green: You’ve been a huge winner at these cups. I mean, you showed me a cannabis cup medal that you guys won in what year? Were you filming your garage?

Aaron Justis: Yeah, in like a ’98, I had a booth selling my hemp clothing and we brought hemp sweaters and hemp gloves that year and it was so cold in Amsterdam, like everyone just bought them up and so I won a Cannabis Cup award for best new hemp product.

Bianca Green: That’s awesome.

Aaron Justis: Yeah, it was great. It was very motivating, for sure.

Bianca Green: Yeah, and then how did it evolve into becoming a club owner?

Aaron Justis: I always remained an activist. I did some lobbying with Illinois NORML for a while and then I just kind of stepped back a little bit. You couldn’t make a lot of money selling hemp clothes and going to these festivals but I met a lot of people and it was fun. But I have a family to focus on then and now and I did other retail businesses but I just wasn’t feeling it. You know, I wanted to do something more important. I wanted to do something that could change the world for the better.

I remember one day, about eight or nine years ago, watching Marijuana Inc. on CNBC and I remember I saw Richard Lee on there and I remember when he just said, the interviewer asked him, “So, do you feel like you’re illegal business?” He said, “Well, I paid over $500,000 in federal taxes last year so, you know, I feel like I’m legal. They’re taking my money and I pay state, you know, local taxes,” and just a light bulb went off and I was like, “Oh, my God. There’s a real cannabis industry in California and I have to go there and be a part of it.”

Bianca Green: Wow, so you like picked up your family from Chicago and moved out here? Tell me what that journey was like?

Aaron Justis: Yeah, so I remember I told my wife. I was like, “Hey, we’re moving to California and I’m getting in the cannabis industry.”

Bianca Green: Erica’s like, “What?”

Aaron Justis: Yeah, yeah. She said, “Okay.” Then, later that night, and she’s not very emotional. She doesn’t cry a lot, almost never, and I noticed she was crying and I said, “What’s going on?” She said, “Well, you said we’re going to move to California and I think you’re serious and I’m just like trying to process this,” and she said, “But you know what? You go out there and make it work and I will … We’ll, we’ll come out there afterwards.”

Jumped on a plane with my best friend Tyler Wadleigh who is still our head cultivator and we just flew out to California and we’re just like, “How are we going to get in this industry?” I started by going to Oaksterdam University. There was one in Beverly Hills at the time. I met Jeff Jones, Dale Sky Jones, and they gave me some good advice and then I started going to ASA, Americans’ for Safe Access events and I ran into Steve DeAngelo and Don Duncan and I just met all these great people.

Bianca Green: Who are great drug policy reform advocates. All of them.

Aaron Justis: Yeah, and they do it the right way, you know?

Bianca Green: Yeah.

Aaron Justis: I just said, “Hey, I have to get a dispensary here. What can we do?” I actually looked in Washington, DC where there were some opportunities and LA, but LA is where I wanted to be. It was where I wanted to live and grow a business and we ended up with Buds and Roses in about a year.

Bianca Green: The name. I love the name. How did the name come about?

Aaron Justis: I actually didn’t come up with the name. I took over Buds and Roses in 2010 and it was a very unknown dispensary. They didn’t have a lot of patients. I think the annual sales in 2009 were $40,000 for the year and there was only one employee, the lady who started it, and she just came up with the name and the thing is that I remember, when I first became the president and got on the board, I said, “You know, we can’t use this name because it’s not medical enough. We’re going to get raided. We need to be like Los Angeles Patient Center or Care Center.”

Bianca Green: Sure, yeah.

Aaron Justis: But the thing is people just kept coming in and they’re like, “I love this name. I love this name.”

Bianca Green: Yeah.

Aaron Justis: You know, things were good. We didn’t get raided the first year or two and we thought, “Okay, we have to start like promoting this.” I remember, even when we first started promoting it, we would put like Buds and Roses really little and then collective really big because we were trying to get people to focus on the word collective like, you know, because we are a state non-profit and we do operate as a collective. As we started growing the business and winning awards and things like that, we just kind of redesigned the logo and ran with it.

Bianca Green: Well, it’s worked for you. You know, one of the things that you guys did really well for your branding was you made … Erica made those great clothing lines, right? You would give those out at the cups and a lot of people wore those. I mean, we gave them to John Sally. Who else has worn them that’s gotten it out there?

Aaron Justis: Yeah, just a lot of good people. I’ve worn it and they loved just kind of the brand and it stands for something.

Bianca Green: Yeah, and you have a really big celebrity clientele out here. That is obviously really good for marketing and branding. The idea that you guys built the clothing line out as a separate entity, though, was a really smart move, especially to solidify your intellectual property, right?

Aaron Justis: Yeah.

Bianca Green: It gives you the opportunity to trademark in certain areas where you still can’t trademark strains and things like that. Why don’t you talk a little bit about that?

Aaron Justis: Yeah, like one of the only ways to kind of trademark your dispensary, or if you’re creating products for the industry, is you can’t trademark cannabis specific so you want to come up with different things that you can trademark, so it is the clothing, it’s smoking accessories. We’ve had ash trays and doob tubes and things like that. Lighters can even be trademarked. You can even turn your website, if it’s informational, into a trademark. You’re giving information on this site. You have to do a lot of workarounds to get the trademark going for when they do finally accept cannabis trademarks.

Bianca Green: That’s great. Good proactive ways to keep your intellectual property because now, even three years ago, when nobody was paying attention, there was a lot of opportunity but now people are coming in from all different angles and really just trying to suck up the IPs.

Aaron Justis: Yeah. I just saw a major lawsuit against one of like the world’s biggest corporations against somebody in the cannabis industry and they got almost half a million dollar judgment against this small cannabis company for using something with their logo. It’s these bigger corporations are also definitely starting to pay attention.

Bianca Green: And they’re creating laws. Like in Oregon, you’re not allowed to use Girl Scout Cookies. There’s been bans on using some of the other names, so it’s definitely growing up in how we look at it. I mean, I’ve always thought that if we sophisticated the way that we talk about cannabis, not only as a medicine but in the way that we brand it — you know, “AK47” — there’s just certain names that might intimidate a new consumer to kind of come on board and get with it.

Aaron Justis: Yeah, with the Girl Scout Cookies, I just have to say this. They actually sent me a cease and desist letter a few years ago.

Bianca Green: The Girl Scouts did?

Aaron Justis: Yeah, we had won in the US Cannabis Cup with Girl Scout Cookies and it wasn’t … We weren’t selling the seeds, we’re not the creator of it, we just grew it and won, and yeah, they sent me a letter and it just said like, “Stop using the name,” and I didn’t bring it up at the time. I’ve mentioned it since but the last thing I wanted was a fight with Girl Scouts of America.

Bianca Green: Girl Scout Cookies of America, oh, my God.

Aaron Justis: Just like that’s okay. It was actually the phenotype that we had is called Platinum Cookies so we actually had already changed it to that and we haven’t had any problems since.

Bianca Green: Do you do a lot of genetics here?

Aaron Justis: We have created some genetics in the past. It’s not something we’re working on so much now, but we have created strains like Joey’s Strain, which was created for Joey, who his mother started the Unconventional Foundation for Autism, Mieko Perez, and we have been donating medicine for Joey for a long time and then we just, we found a strain that we cultivated and bred that worked really well for him and that created Joey’s Strain.

Bianca Green: What’s that like? Like the pressure of literally creating a medicine for a child? That’s got to be an insurmountable amount of overtaking.

Aaron Justis: Yeah. You know, it wasn’t that we actually had bred a few different strains and then this one worked for him so we used to call it Alpha Dog and then it just worked so well for him we renamed it. Creating a strain for him would have been really difficult because everybody’s body is different and it wasn’t … It’s not CBD that works for him. It’s THC. Then it’s just I guess finding the terpenes and things like and the combination of cannabinoids in that strain just happens to work really well for him, so kind of lucked out, I guess.

Bianca Green: How does that even work? Like you become then a scientist, in a way.

Aaron Justis: Yeah, and you never know if it’s going to work for everybody like that or if they’re going to have different reactions, so there’s just certain strains that we were providing for him where … and this has happened recently, if we don’t have the Joey’s Strain where he could take something and then he’s up for days. Like literally almost a week and then Mieko is up for almost a week. You definitely want to get the right medicine for people.

Bianca Green: Consistency is important, so I’m sure, as a business owner, it stresses you out that like, God forbid, you get shut down. People rely on their medicine from you in particular.

Aaron Justis: Yeah.

Bianca Green: Like what’s that like?

Aaron Justis: This does happen. Even if we don’t get shut down, the other problem is our providers who get shut down. One of my biggest things right now is trying to keep consistent product on the shelf. You know, when somebody finds something that works for them, it’s like, we don’t want to run out of that. They might come every three weeks, every four weeks, and sometimes drivers still get arrested, manufacturing facilities, cultivators, get shut down, and there’s a big lapse in product. There’s already, even in a market where people aren’t getting shut down, they’re really not able to produce as much as they’d like or as much as the demand is out there. In this industry, we’re constantly running out of products and not having consistency like we’d like.

Bianca Green: What’s the LA market like?

Aaron Justis: Well, it’s big. Probably the biggest in the country, if not the world, and they’re fairly sophisticated and educated. There’s been medical cannabis providers here for 10 years plus, maybe 12 years, and they definitely have … There’s probably 1,000 dispensaries that are operating outside of the little regulation that we do have here. People have a wide experience of it but it also is really like amateur, or it’s not what it could be because the regulations don’t exist. You hear officials all over Southern California and in California say, “Oh, there’s a problem with all these dispensaries. They’re an eye sore. They’re not really providing medicine. They’re doing this and that,” and I just feel like you can’t judge a marketplace when it’s unregulated. Of course, if bars were not regulated, things would be out of control.

Los Angeles has yet to see what a truly regulated market looks like and that’s kind of how we tried to operate because my mentors were Steve DeAngelo of Harborside, Don Duncan of LAPCG and other dispensaries. He started I think the first one in the state almost 20 years ago. Or Robert Jacob from Peace and Medicine. Just these pioneers, so even though we’re not regulated where we have to label things properly or it doesn’t have to have the nutrition facts and all that, doesn’t have to be lab-tested, we just push for those and set our own regulations.

Bianca Green: Yeah, the state of marijuana. Betty Yee spoke the state controller and she spoke about how the government essentially is listening because we’re the only industry that’s begging for regulation.

Aaron Justis: Right, yeah.

Bianca Green: Yeah, which is really interesting. I’ve met a lot of really good people in this industry that came from the movement. Tell me about, for you as a business owner who’s been a business owner for a while, watching the movement go into a real industry and what that feels like. I know that your business is striving but, at the same time, you’re working with political issues. Bans, Prop 64 that’s coming. How’s that going to change, you know, the future for you? There must be just a lot of nuances to your business that wouldn’t exist if you had a shoe store.

Aaron Justis: Yeah. I think a lot of industries deal with their own issues. Some of the stuff that we deal with is somewhat normal, just for a struggling business owner, but then some of the things we deal with are way beyond normal. The fact that we’ve survived through bans. There was a complete ban on dispensaries in LA. At this time, I’m worried about my home being raided, my dog being shot in front of my kids and all these things, just for providing medical cannabis. We’ve had to deal with that. We’ve had to deal with several bank accounts being shut down. Truly unfair tax laws where we can’t write off any expenses and we get audited and we owe hundreds of thousands of dollars, even though we didn’t make any money those years.

It’s definitely been difficult and also, just in LA alone, LA hasn’t regulated so there’s tons of work at the local level, at the state level, and at the national level that I just … I feel like, if we can get through these really difficult times, we should be able to get through anything but it’d be nice to kind of get going normally.

Bianca Green: Yeah. You did a lot of work with GLACA for local ordinance issues, with local ordinance issues. Tell me a little bit about that experience.

Aaron Justis: Yeah. We’re the oldest trade association of its kind. We’d been around for almost 10 years in Los Angeles and we’ve always tried to work with the city and create regulations in LA and push that and be a positive force and self-regulate our dispensaries as well and set up our own rules and regulations for that. This year has just been … It’s been interesting. There’s a couple of different groups of operators here that are somewhat legal. There’s two trade associations and our trade association took the view that the city just held off on regulations because the state never regulated. It’s such a big city they didn’t want to take on that task.

Going forward, this year, GLACA felt like we could work with the city. They were going to regulate. We didn’t have to be so forceful like we had been in the past. Maybe the other trade association was little more worried about how the city would react. We kind of both took our own angles on it but, as we kind of merge today, the city council’s going forward with it but our city is very diverse so they want to make sure that there’s room for minorities which is a trend in the industry which I think is extremely important to not cut the people that have been most affected by the war on drugs out of the legal industry, so it’s very positive to see that.

We want to get licensed for the activities we’ve been doing for almost 10 years here and we want to open it up so that the people that have been providing our dispensaries have the right to continue to operate as well. It’s definitely feeling very positive lately but we have just a ton of work to do.

Bianca Green: What do you think some of the greatest challenges have been for you, building this business?

Aaron Justis: I mean, probably the biggest thing is just it being illegal still and, even though, like when I say we’re somewhat regulated in LA, it basically says that all dispensaries are illegal but about 100 of us have limited immunity. We’re still not fully accepted by the law so we have a constant struggle with that. Then it’s just all the things of trying to build a business in a market like this, where you can’t get loans, you can’t get finance, investors are weary of what’s happening here.

Plus, I mean, look, 90% of the dispensaries in LA are operating outside of those regulations and that’s just a big competitive advantage for them, so it’s been hard to survive, especially when you’re being transparent and you’re doing things the right way when so many people are not. Again, I think if we can survive through this, it’ll make the future easier.

Bianca Green: What do you think is going to happen to the black market, though? These people who aren’t regulated, do you think that they’re going to get regulated and, if prohibition ends, what do you think that’ll look like?

Aaron Justis: I think that, if they over-tax it, that the black market can definitely thrive and stay strong, so we need to keep the taxes low. We already pay high taxes to our city, to the state, with the federal interference, we pay a lot of tax so we want to keep that low. I think the best way to build the legitimate market is to offer services and things that the black market just can’t. I believe, over time, people will see the value in going to a legitimate place versus the black market.

Bianca Green: Yeah, because customer service is really important. I mean, I’ve given you feedback on your business many times because I think that the consumer experience is what’s really been changing the game for a lot of people. I remember the first time I went to a dispensary and listening to the bars close behind you and you’ve got to walk into, “Eeeeng!” There’s this massive, like fear a little bit and you really make a wonderful consumer experience.

Aaron Justis: Thank you, yeah.

Bianca Green: I know Erica was a part of really spearheading creating the atmosphere in Buds and Roses and it’s really beautiful and warm and friendly, especially as like a single woman. I feel very comfortable coming in. It’s a very good customer experience, you know? That’s really important to draw in a new clientele, I think, right?

Aaron Justis: Yeah.

Bianca Green: What do you see the future of Buds and Roses being if legalization happens on November 8th?

Aaron Justis: Yeah. I mean, Buds and Roses is already moving forward with these huge law changes in medical cannabis and I think that, with Prop 64, legalization definitely looks like it’s going to pass. I think that’ll just continue to move everything forward. I mean, our goal is to kind of max out the licensing that you can get in California, which is three stores, manufacturing license, and a grow, and that’ll be really our big steps in the next five years.

But truly beyond that, my heart lies in cannabis cafes. I really want those in like every neighborhood on the plant. Wherever you can get coffee and fast food and alcohol, you should be able to get cannabis. That’s where I was really inspired in Amsterdam when I walked into a cannabis café. I mean, I love doing the retail thing, having dispensaries, and if I could have those all over, I want to do that too, but the cannabis cafés I’m really excited about. Giving people a place to socialize.

Bianca Green: Yeah, I think that that’s like the next thing, right?

Aaron Justis: Yeah.

Bianca Green: I mean, we know at cups, even at advocacy, everybody smokes, so having an experience with your fellow man is pretty much the thing that brings us all together, right?

Aaron Justis: Yeah, I think so. Yeah.

Bianca Green: How do you feel about cannabis? Like, what is it about the plant that drives you?

Aaron Justis: I love it. I mean, it really … First of all, it just works amazingly well with the body to kind of regulate yourself. If your stomach hurts, if you have a headache, like there’s all these normal things it can do to balance you out, but then it truly like gives me motivation and energy to do the tasks that I need to accomplish. It also just, it gets people thinking deep and talking about deeper conversations where, you know, I like alcohol but it has the opposite effect, you know?

Alcohol is a completely different substance. It’s not going to necessarily most of the time lead to any really productive, deep conversations, and I think that, through that, cannabis really changes people and ultimately changes the world. It changes their thoughts, which influence their behavior which will influence the world. It’s a great thing.

Bianca Green: What’s it been like being able to supply the medicine to patients for as long as you have so far? What are the most profound things that have happened to you as a business owner being able to provide safe access to this plant?

Aaron Justis: Well, you know, the biggest thing is that when I, before I had the dispensary, people look at people in cannabis look down on them. You’re not being praised. You’re not being thanked, and I open Buds and Roses, patients come in and people are literally like, people have grabbed me and said like, “You saved my life. Thank you for everything you do. I was taking all these pills and doing all this stuff.

Then like the next day a mom comes in and she’s like, “Thank you so much. My kids, they’re on the spectrum. I’m not, at this point, providing them with cannabis but I have to deal with my children and it’s very stressful and the doctor was giving me pills for that and now I’m using cannabis. Thank you so much.” It’s just like every single day, there’s praise, there’s love. I mean, it just feels so good to have a business that can make so many people feel happy.

I mean, the stories we hear are just, every single day, the things are amazing, how much benefit cannabis has brought to people’s lives. It’s so rewarding. I couldn’t think of doing anything else.

Bianca Green: You would say that’s one of the biggest rewards of owning Buds and Roses.

Aaron Justis: Yeah.

Bianca Green: Going through all the shit that you go through to keep it alive, yeah.

Aaron Justis: Yeah.

Bianca Green: What’s the future look like in 2017 for Buds and Roses?

Aaron Justis: Well, I think that 2017 is a year for us and myself to be really involved in the rules that are made. Yes, we’ve passed the legislation but now we have to pass the regulation, so I want to be as involved as possible throughout the process so that our patients, so that the laws are written in a way that benefits our patients and everybody.

Bianca Green: Is there any advice you have for any entrepreneurs that are coming into the industry that might want to be a dispensary owner?

Aaron Justis: Yeah. I would say that the first advice is that money won’t just fall out of the sky. Everybody thinks, “Oh, I’m gonna sell cannabis and I’m gonna be super rich.” It’s a competitive place. It gets more and more competitive so you definitely … Do what you love. I just believe that, if you do anything just for the money, it’s not going to work out so just make sure that you really want to provide medicine. You want to have a retail operation. I mean, look. You’re open every day of the year. You’re open late at night. Just retail in general has its own negatives that people kind of stay away from in the real world. It’s different than if you’re manufacturing your product. You’re not dealing with the same hours.

Just make sure you love it and do it right. Do something positive that people can be proud of. That’s what made us, gave us our reputation, and get involved with policies and advocacy because if you’re outside of the loop, then you’re just reacting all the time and you can’t really be prepared.

Bianca Green: Well, thank you, Aaron, for having us here today.

Aaron Justis: Thank you.

Bianca Green: And having the Spark the Conversation bus come to the store. It means a lot to us to be able to continue to change the stigma and for you guys to be a part of that is really empowering. Tell our audience where we can find you.

Aaron Justis: Yeah. Well, you can find us, if you’re here in California, you can find us on Ventura Boulevard in Studio City. It’s actually a neighborhood of Los Angeles so 13047, or you can check us out online. Facebook, Buds and Roses. Instagram, Buds and Roses. Everywhere, Buds and Roses.

Bianca Green: Awesome. Buds and Roses clothing, is that still …

Aaron Justis: That’s right, yeah.

Bianca Green: Is that still active?

Aaron Justis: Yeah.

Bianca Green: Okay, good. Awesome. Well, Buds and Roses, Aaron Justis, thank you so much. Let’s spark the conversation because it’s a joint effort.

Aaron Justis: That’s right.

Bianca Green: Spark the Conversation is really excited to do this partnership with Ganjapreneur.com, creating these podcasts. It’s a resource for cannabis professionals, advocates, patients, business owners, anyone, really, who’s in favor of responsible growth. Visit Ganjapreneur.com for daily cannabis news, career openings, company profiles, and of course, more episodes of this podcast. We’re thankful to them and the partnership that we have with them and we appreciate the fact that they sparked the conversation and help ganjapreneurs grow.

End


David Barakett: Growing a Multi-State Dispensary Chain

David Barakett is the CEO of ShowGrow, a culture-focused dispensary chain with California locations in Los Angeles, Santa Ana, and Ramona. ShowGrow also runs a dispensary in Las Vegas, Nevada.

David recently joined our podcast host TG Branfalt for a chat about participating in the widening cannabis markets in California and Nevada. In this episode, David offers predictions for the new adult-use cannabis markets that will be opening after last November’s election, describes how he is able to make his dispensary brand stand out in the modern cannabis industry by understanding who cannabis consumers are and what they care about, and shares insight about his own management style, which he says can be summed up in one word: “positivity.”

Listen to the episode via the media player below, or continue scrolling to read a full transcript of the episode.

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


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m TG Branfalt and you are listening to the Ganjapreneur.com podcast. The Ganjapreneur.com podcast gives us an opportunity to speak directly with entrepreneurs and experts who are working on the front lines of the industry to normalize cannabis through responsible business, education, and activism. As your host, I will do my best to try to bring you actionable information to help you plan, grow, and manage your cannabis business.

Today I’m joined by David Barakett. He’s the ShowGrow CEO. He’s got some dispensaries in Nevada and California. How are we doing today, David?

David Barakett: I’m doing great, doing great. How about you?

TG Branfalt: It’s a very strange day. Jeff Sessions was confirmed yesterday, so I’m still trying to wrap my head around that, and we might get to that a little bit later. But before we do, I want to talk about you. Let’s start with your background. What did you do before getting involved in the cannabis industry?

David Barakett: Early on, I got into real estate, that was kind of my first career, and built a mini real estate empire. It wasn’t very big but it was a Century 21 franchise. It was a good learning experience. That gave me the foundation for bringing some of the business acumen to the cannabis industry, and that was kind of my first taste of business and then I quickly moved into this shortly after.

TG Branfalt: Tell me about the experience opening your first dispensary. What was that like, and during that process, what were you looking for in partners and employees?

David Barakett: Yeah, it was crazy. It was a pretty interesting time and we actually partnered with somebody to manage this facility, and it was a great project at the time, and I was really excited. I didn’t know anything about the industry, really. I mean, I knew cannabis but not in the depths that you would have to know to be really great at retailing. We took over this facility and right out of the gate, we started doing pretty well. We kind of just developed it as we went and one of my partners did have some experience and he showed up a couple of days in and he was like, “You guys don’t have enough products on the shelves. What’s going on?” I was just like, “Man, I don’t know anything about this.” But from there, we just kind of learned.

I learned a lot early on from my employees because really they were the ones that were in tune with the industry. They are the boots on the ground and even today, that’s really where, that’s where we get our swagger from. That’s where all the knowledge is derived from, really, is from the folks that are in the store. A lot of those things we learned early on.

TG Branfalt: What state was your first dispensary in?

David Barakett: California.

TG Branfalt: How did you kind of evolve that business model and expand into Nevada? What did that entail? What’s that story?

David Barakett: When the Nevada market was going online, I think there was a lot of interest, right? The operators of the world descended on Nevada to find a home. We did the same thing. I started coming out here. If anything, it was just a good excuse to come to Vegas once a month. We met with a lot of people, talked to a lot of people about what we’re doing in California. We always felt like being from California, that we were better set up to succeed in Nevada. We kind of went through the process of meeting a lot of different owners, a lot of different personalities, and we landed on a group that are just really, really great guys, and they gave us the reins to do our thing.

We originally slow-played the market out here, and we didn’t end up doing cultivation and manufacturing because there just wasn’t a market to support it at the time. We built, we brought our California dispensary model. It was met with a lot of happy faces. People were coming in. They were like, “Man, it’s great to see a California dispensary.” In Nevada, a lot of people that live here are from California. A lot of people that they consume cannabis in Nevada, they’ve been to California. They’ve seen the shops. They’ve seen the product. There’s a lot of California influence out here. We just did our thing, put OGs on the board, put other California products that are just quintessential products that people would want, right? It just was a smooth transition.

TG Branfalt: With both of those markets opening up for recreational now, what are you guys doing to prepare for that and what is your kind of anticipation? What are you anticipating happening in both those states?

David Barakett: I anticipate these two states blowing up. I don’t think there’s any doubt that California is the largest market in the country. It’s poised to absolutely explode. I mean, we’ve had about a million patients in that market. What’s coming in California with rec, although it’s been relatively easy for people to get a rec and go to the shops, it’s still not something that everybody’s comfortable with. People think that you’re going to be on a registry somewhere. When you go to apply for a job sometime, somebody’s going to be able to dig out that you’re a cannabis consumer or whatever. Gun owners feel the same way.

There’s a lot of people that never entered the marketplace and there’s a lot more cannabis consumers out there that just aren’t in it. Yeah, my expectation is that the market could very well 10x. There’s no reason why it wouldn’t. We know that the million people that are cardholders now, they are your core business and they will be the core business after. You’re going to have always the people that are cannabis enthusiasts that will be your core business, and then there’s just going to open a market to a whole lot of people that will be occasional smokers, once a week or even once a month. But when you add up the numbers on that, you wind up with a pretty big market and the medicinal numbers should pale in comparison.

In Nevada, strategically, there’s no reason why we wouldn’t want to be here. We’re so close and this market, unlike California, it just, it doesn’t have the population, but when rec comes, the 42 million visitors a year could purchase. They’re flying into Las Vegas with the purpose of lowering inhibitions, so there’s no reason why this market isn’t going to just explode, too. My expectation is that these two markets will easily be the two largest in the country.

TG Branfalt: With the expansion happening, I mean, it’s happening all over the U.S. We’ve got eastern states now that are going full rec, so there’s a lot of opportunities to enter the market, but what are some of the barriers that you think exists as an entry to the market in the current business climate?

David Barakett: I mean, there’s a number of barriers to entry. It just, it depends how equipped you are to deal with them. We’ve built a business that’s comprised of people with a lot of different talents. Although we’re great at cannabis, we’re also great at business, and transitioning into this regulated market and every regulated market is different. It’s just, it’s imperative that you have somebody in-house that’s doing compliance. We happen to have somebody that’s phenomenal. It’s imperative that you understand the market that you’re getting into. Something that happened in Nevada was that nobody understood the market they were getting into. When locations were opening, there was 8,000 patients. That wasn’t going to support a bustling market. I still see a lot of that.

There’s this notion that you sell a gram of weed and your bank account automatically has a million dollars in it, and that’s just like so far from the truth. A lot of guys are jumping into the industry thinking that all you’ve got to do is get the license and open the doors, but it’s just not the case. There’s certainly some great markets out there that will be opening up. Massachusetts will be one of them. Everybody predicts that Florida will also be one of them. We’ll see how things kind of play out. But nevertheless, you’re talking about smaller states than where we’re working. They don’t have the same kind of tourism. When every prospectus that get sent to me is basically using black market numbers, it’s really hard to really understand what the value of these business are.

It’s experience. It’s just, it’s having done it that gives you the ability to really understand what you’re doing because, yeah, when you ask what are the barriers to entry, there’s a lot. There’s a lot. This is a heavily regulated space. Nobody is trying to legalize cannabis and have room for madness on their hands.

TG Branfalt: This is actually kind of leading into this quote that I’m going to read back to you that you had said, but before we do that, we’ve got to take a quick break. This is the Ganjapreneur.com podcast.


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TG Branfalt: Hey, we’re back. This is the Ganjapreneur.com podcast. I’m TG Branfalt, your host. I’m here with David Barakett, the ShowGrow CEO. Before we took the break, we were talking about barriers to entry, the current market. You’ve said that legalization and regulation don’t create a market. They simply allow it to exist. Now, it’s my opinion that cannabis regulations are too onerous. They don’t actually allow for free markets. It’s often unbalanced and stuff. It says to regulate tobacco or cannabis like alcohol. There’s a bill to regulate it like tobacco in New Jersey that’s probably going to get killed.

For me, when I read that quote, that’s what I think, is that there’s too many regulations and it’s not regulated like alcohol is, whatsoever. Is that what people should take away from that quote or did you mean something entirely different?

David Barakett: Well, I could lie to you and tell you that I meant a whole lot of things, but what you’re saying I think is, I think there’s a lot of truth to it. To a degree, yes, I’m alluding to that, but what really I’m saying is just pretty simplistic. When a new territory goes online, and they are all the time, everybody goes bananas, and it’s like they just think that it’s guaranteed success and that’s not the case. There’s a lot of contributing factors and one of which is exactly what you just said. I mean, the fact that they can be over-regulated and overtaxed, those are reasons why that’s not really a great market.

Although we’re legalizing and we have a framework that’s going in place, there’s still a lot of crazy things that are going on out there. To a degree, I think there’s some really good regulators that are trying to figure it out so that they don’t tax us out of the markets. Forget about taxing outside of the market. The fact is is that creates, that doesn’t create the black market. It will let the black market continue to exist and thrive. Yeah, so simply putting an ordinance together isn’t a key component to a successful cannabis market.

What I meant by that, really, I mean, is that there’s more to evaluating markets viability than the mere fact that it’s been legalized in a town near you. There’s a lot of excitement over cannabis and it’s created this mentality that success is given, and that couldn’t be further from the truth. Every day I speak with investors looking to jump in. I try to get people to understand that this is a very serious, highly competitive industry, and it’s not to be just taken lightly.

That’s in essence what the quote means, but I do agree that we’re operating in an imperfect regulatory model that can be very difficult to navigate, and that’s due to the grassroots nature of this movement. Laws were typically enacted at the highest level and the framework is then passed down to smaller governments for them just to follow the rules in place, but due to the unwillingness to reverse prohibition, the onus has been put on local city councils and the city attorneys to enact complex marijuana law.

Like I said earlier, the fear of legalizing cannabis and winding up with reefer madness in your hometown is not something that a lot of them want, so they do regulate it heavily because they don’t want to be the city and they don’t want to be the people that cause something bad to happen in their town, so it’s understandable. We’ve also seen voter-backed initiatives that pass and leave everyone a little bit confused about how to operate or the city on how to regulate because they haven’t really been properly vetted to the degree that most laws would be.

TG Branfalt: It’s not something that regulators are used to dealing with until it’s implemented. I mean, in much of the same way that I’ve spoken to a lot of operators who say it’s really hard to find good people because you don’t have a whole lot of people with experience in the cannabis industry.

David Barakett: Yeah, that’s right. I mean, you don’t. You need to train people. A lot of times, the people with the experience, unless it’s somebody that’s really honed their craft, it’s not always the best choice. But for us, we like to train people. Cannabis knowledge is not a prerequisite. In fact, it’s sometimes, obviously, it’s different for every job. We have all kinds of different jobs in this industry and in our business, and of course if you’re getting a higher level job, then to get cultivation, you have to know about it and you have to be good at it.

But if you’re coming into a dispensary to get a job at ShowGrow, all you’ve got to do is have some personality and have some charisma, and that’s all it boils down to for us. I can teach you about cannabis but I can’t teach charisma. I can’t teach somebody how to smile and chat with people and make lifetime patients out of them. That’s something that a lot of people, they just inherently have.

TG Branfalt: Well, and you come from not the cannabis industry. You come from real estate. What other, with your employees and the people you work with, where else do you see them coming from?

David Barakett: Well, to be perfectly honest, I give a lot of people their first jobs (laughs). A lot of times, the food and beverage industry. It’s one of those things. Everybody kind of has their first jobs, and that’s why, looking at people’s resumes for positions like that is of very little importance to me, going through resumes to find out that you’ve had your first job at a fast food restaurant or on a golf course, wherever. It doesn’t matter really what it’s specific to because it’s not something that is going to have given you all the skills you need to be successful in cannabis.

On the retail side, it really just, it starts with personality. It’s all about personality. It’s all about, it’s how you connect with patients and how comfortable you make people. The cannabis knowledge comes. We build a culture in ShowGrow that is such that it’s a point of pride to know everything about cannabis. I don’t have to teach it in-depth because they want to learn it. They want to be good at their jobs. They want to be able to provide that best service because the girls and guys that work there are competitive with each other, and that’s always been a point of pride in our company and we’ve always really encouraged that.

TG Branfalt: What’s your management style like? You’re a CEO. How closely do you work as far as the day-to-day operations go?

David Barakett: I built the retail side to a large degree with a manager that managed all our facilities, and my partners, and I got out of it for sometime while I was really doing the branding, and actually just recently I got back into it. It’s been a lot of fun. The reason I got back into it was kind of because I missed it. It’s a grind but at the same time I have a lot of people now surrounding me. I have a lot of support. Although it is kind of all-consuming, it’s really like, it’s a really enjoyable experience to work with so many young people and to really see them enjoy what they do.

My management experience or my management style is basically positivity. In a nutshell, if I could use one word, it’s positivity. This is all about culture. Cannabis is all culture, and cannabis consumers are savvy. They’re cool, and they want that to be reflected in the stores they go to. What we’re building here is just this culture where everybody loves coming to work every day. I want you to love coming to work every day.

We have three major focuses and none of them have to do with making money. The first thing and the utmost importance is patients first. We are a customer service driven business. We are all about customer service. We want to give the best customer service. I want those value adds to separate us. That’s what I want people to say about us when they come into our facilities for the first time.

The second thing we do is employees. It’s all about the employees. We take care of the employees. We want them to love where they work. We also want the employees to take care of the employees. We want them to just build those relationships and enjoy themselves. When that happens, what I said earlier about not having to train them on cannabis, you don’t because when they love where they work, they learn it because they want to be there and they know that to be here, you have to, you’ve got to know your job. You’ve got to know your stuff. You’ve got to be good at it because your shift leads have you and your managers have them. They all know all their stuff. That’s the culture that I like to create so that everybody can kind of look around and see that everybody is working together. Everybody loves what they do and everybody thinks cannabis is great, and it should be. I mean, could you imagine working at a cannabis shop and hating what you do? That’s pretty sad. That’s really helped us separate ourselves from the pack.

Then the last thing we do is community. We do community outreach. We want to be a part of every community we’re in. We don’t do it to drive sales. We do it help familiarize people that would typically be familiar with cannabis. We want them to see what we’re all about and who we are, and we’re not bad guys. A lot of the bud tenders go and volunteer or they meet people that are from different charities that we’re working with. We’re changing minds and people see that and they’re like, “Wow, you guys are good people. Imagine that.” Those are our focuses. That’s what we focus on. That’s my management style. I try to really dig deep with all of our employees and give everybody the benefit and chance to succeed, and I have groomed a lot of young employees and I’ve given a lot of young people opportunity where they wouldn’t get it anywhere else, and I know they wouldn’t.

We have managers as young as 24 years old managing facilities that, these are extremely valuable assets that are being managed by young kids, but that’s what, they want it. They want it and they have what it takes to be successful in cannabis now. Does that mean we don’t give them the support system that they need on the back end to succeed? Yeah, of course we do. But on the front lines, boots on the ground, I want all these young kids to succeed and I want them to be a part of it, and I want them to buy in because we’re, this isn’t a company for me. It’s a company for everybody that works for us. They see the growth and they see the opportunity. The upward mobility in our business is massive, and they could see it.

In a lot of jobs in this day and age, you can’t see your opportunities. You can’t see where your job today that’s making you 12 bucks an hour can lead in a few short years if you just grind it out and work hard, keep your head down and in fact actually really like what you do instead of working on an assembly line or doing something but not this that seems to be not what kids today want to be doing anyway, I guess. But, yeah, so that’s it. We’re just trying to give people opportunities and be a part of the community and to take care of our patients.

TG Branfalt: I want to stay on this theme of culture and community, but before we do that, we’ve got to take our last break. I’m TG Branfalt. This is the Ganjapreneur.com podcast.


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TG Branfalt: Hey, welcome back to Ganjapreneur.com podcast. I’m your host, TG Branfalt. I’m here with David Barakett, ShowGrow CEO. Before the break, we were talking about culture, and inevitably, well-funded big business is going to enter the space which a lot of grassroots people who were the fore founder, the founders of everything that exists now, so there’s a lot of fear about well-funded big business getting involved, and many states such as New York and Minnesota, they’re already there operating the medical programs there. What’s your take on this as an operator and how are smaller operators preparing for this inevitability?

David Barakett: Yeah, that’s something that I’ve given a lot of thought to, and I do get asked that question. I’m a pretty firm believer that the cannabis industry is not going to go the way of big business overnight, one, and I don’t really see it going to this kind of generic cannabis mass-produced, widely available model where your kind of boutique product and your craft product, if you will, ceases to exist.

I mean, I don’t know a cannabis consumer that isn’t like super into what it is they’re consuming. If cannabis is just something that kind of falls flat, it’s not that exciting, and I think like in part, consuming cannabis isn’t just about getting high. Even if you’re talking about medicinal, recreational, whatever, whoever it is, if you are, especially if you’re a recreational consumer and a habitual consumer, it’s the ritual. So much of it is the ritual, and it’s your peace. I mean, shit, 420, I mean, it’s just like it is what it is. I just don’t see that type of consumer.

Cannabis consumers are a very, very savvy consumer. That is something that is lost on a lot of people that are not from this space that don’t understand this space. They think that they’re just going to mass produce a bunch of weed and they’re going to thrown on the shelves, and weed is weed, right? It couldn’t be further from the truth. It’s a surefire way to not get anybody to come back.

TG Branfalt: You’ve said a couple of times that cannabis consumers are this real savvy consumer. Why do you think that this is?

David Barakett: Well, I think that kind of falls in to what we were just talking about. It’s that it’s something that they care about. It’s a ritual. It’s an interest. It’s a hobby. Cannabis, it makes people more conscientious. I think that, I don’t think that we need any real in-depth studies to find out that the consumers of cannabis are by and large a more caring people, a more thoughtful people. I think that the stoner stigma that’s associated with cannabis is in part true, but the same is true for everybody that consumes cannabis. Not everybody that is a stoner, stigmatized consumer, is going to not be the same as everybody in a sense that you’re going to have your professionals that consume, and you’re going to have your elderly folks that consume.

The one common thread here is not that they’re all kind of, that they’re straight off half-baked. It’s that they’re kind of just a lot more thoughtful and giving. I think that a lot of that comes with cannabis. When people ask me about the rec market, “Well, medicinal has value, and we know that so we should legalize medicinal, but rec, there’s no good in that. Why should we legalize rec?” I think that that’s so short-sighted because a world where cannabis is available to everybody all the time is going to be a better place. I can guarantee that.

TG Branfalt: You’ve got people too that are self-medicating and they’ve been doing it for years. I’ve said on this podcast several times, I use low dose cannabis products for my anxiety, and had these been available to me when I was much younger, I sometimes wonder, maybe I would have done a little better in college. Maybe I would have done this a little differently or done that a little differently. I think that, in my opinion, medical is great. I mean, all the pro, when I hear Governor LePage out in Maine saying, “Oh, well, we’ve got to get rid of medical marijuana now that we’re going to have a recreational market,” that’s absurd. That’s an absurd thing to me. But at the same time, you do have some people who don’t meet the state criteria who are using it for anxiety, using low doses. To your point that there is more to recreational than people who just want to go get stoned.

David Barakett: Oh, yeah. I mean, yeah, definitely, definitely. It’s a well-documented fact that cannabis abuse in youth, in the undeveloped brain, can cause harm. That’s something that has been studied and documented and proven because it can slow brain development. But there is zero negative impact that has been proven for adult use. I think the social benefits of it are just massive, especially if you’re comparing it to what the risks are because the risks are nil. It could only better, right? I mean, you’re not causing harm.

Of course, people have to be responsible. There’s no doubt that there’s a responsibility component to it, but that’s something that comes with the territory, too. I think that also, and this isn’t true for everyone but I see cannabis consumers that are responsible, and I think that has something to do with being thoughtful and kind of, and being more caring and all that kind of stuff that comes with getting high actually.

TG Branfalt: We’re running a bit long here, but I do want to get your opinion as an owner, as an operator, on the Trump administration and specifically the opinions of Jeff Sessions as they relate to cannabis. Are you guys worried?

David Barakett: I just, I try not to focus on the things I can’t control. I do everything that is inside of my control. The fact of the matter is, is that this is a very big business. It’s not going away. I don’t think that really it’s something that they’re going to spend their bandwidth on doing. It would be an incredibly unpopular thing to do. Typically, when public support is on the side of cannabis, that’s where it’ll ultimately land. I know in this day and age, people are questioning whether majorities matter, but in this particular case, I don’t know if this is necessarily on the forefront and at the top of the list of things they want to get to.

TG Branfalt: For you, the sky is not falling.

David Barakett: No, man. The sky is never falling. It’s all good. It’s all good. I know a lot of people are freaking out. Cool, they freak out, but for us, I’m just going to keep my head down and just keep working and doing the right thing. I’d be nervous too if I thought I was not doing the right thing. But I can open up the doors to my business any time and show anybody what it is we do and how we do it. If you could take a look at what we do at ShowGrow, we are proud of what we do. The reason that we built a model like that and the reason we do that is because we are breaking down barriers, we are changing minds.

I’ve been doing that as long as I’ve been in this industry and I’ve seen the most vehemently opposed change their minds when they come to our facilities because how could you hate this? It’s not doing anything to harm you and all of these young kids that are working here, they’re not monsters. We have beautiful, well-built out, well-lit, secure facilities. We pay our taxes. We participate in the community. We give back a lot.

Those are the things I can control. I can’t control anything else, so I guess I just, I don’t want to waste time worrying about stuff that I can’t control. I want to worry about just building a great business, and we’ll see. This isn’t the first time there’s been adversity in this industry.

TG Branfalt: It was built on adversity.

David Barakett: Exactly.

TG Branfalt: My final question is, what advice do you have for entrepreneurs looking to enter the cannabis space?

David Barakett: I guess what I would say is that you’ve got to work hard. It’s just like there is nothing given in this industry. It is all hard work. It’s unrelenting perseverance because you are going to get kicked, not once, probably two or three times. It is unrelenting. You will get knocked down. In cannabis, you get knocked down even in the best of situations, and that’s not to say that, that’s not like an ultra-negative thing, don’t get into the industry. It’s just that, again, I go back to this thing. We are breaking down barriers. We are changing minds. There are still a lot of foolish people that don’t want to believe their eyes when they see a product that cures people and they still rally against us.

That, to me, is really, that’s the biggest component to it. Now, honestly, that’s kind of the fun part too, though. You’ve got to understand that we’re educating people on a plant that’s truly amazing, and that’s rewarding, that’s rewarding for everybody that’s involved. The other bit of advice I would give people is if you’re getting in for monetary gain, and that’s your only motivation to enter, I’d tell you that don’t bother because if you’re not a true believer in what this plant can do, you have very little chance of succeeding right now.

It’s inevitable that at some point this industry will become such that it’s like every other industry, and like you said earlier, there will be that kind of mass-produced corporate weed that’s commoditized and fluctuates with the markets, and then there will be an opportunity if money is your only goal. But there’s more than enough to go around in this industry. If you’re really, if you’re touching people’s lives with cannabis and you’re affecting real social change in the community, to me, it’s inevitable that that leads to a great deal of success. That’s success, that’s happiness, and that’s in your business life and that’s in your personal life. Cannabis is great (laughs).

TG Branfalt: Well, I really want to thank you for coming on our show today. It’s rare that we get an opportunity to really speak to somebody who is in a management position, CEO of a dispensary. I talk to a lot of policy people and people of that nature, so this is, for me, this is one of the first conversations that I’ve been able to have on this show to cover the sort of topics that we discussed, so thank you so much for appearing on our show. Would you like to just tell everyone how they can find out more about your dispensaries, where they’re located, before we go?

David Barakett: Yeah, absolutely. You can just go to ShowGrow.com. We’ve got a location in downtown L.A., off San Pedro and the 10, or the 10 and San Pedro, I should say. We’re in Santa Ana. We’re on Saint Gertrude Street. You’ll find us on Weed Maps for all our locations. Go to ShowGrow.com, you can check out the shops and pictures to kind of see what we’re all about. Then we’re down in Ramona. Ramona is a San Diego county, just a cool little spot out in the countryside. It’s really awesome. We’re going with the small town, and it’s got a small town vibe, and all of the bud tenders that work there, they know everybody in town, everyone knows them, and it’s a trip, but it’s really cool. We’ve become a part of that community to a degree and everybody is loving it. That’s a cool project. Then Vegas. We’re up near the Summerlin area off of the 215 and Tropicana.

We aim to be the top customer service brand, the top value-added brand. We don’t want people to come into our stores to simply get the rock bottom basement product and price and then mass quantities. We’re an experience. We’re a store that when people come to us, we want them to think like, “Oh, cool. This is my kind of vibe. This is my kind of spot.” You get excited about coming back to see the girls and everybody knows you by name. That’s what we’re about. That’s how we built our business and that’s how we’ve enjoyed our success. Yeah, we’re just going to keep rocking. We have a number of new locations coming too, so stay tuned. We’ve got seven coming in 2017.

TG Branfalt: That’s exciting news. We’ll be in touch when they start rolling the map, but thanks again for joining us on today’s episode.

David Barakett: All right. Thank you very much.

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

End


The Connecticut Capitol Building in Hartford, Connecticut.

Connecticut Lawmakers Debate Legalizing Recreational Cannabis During Committee Meeting

Connecticut legislators debated legalizing cannabis for adult use in front of the General Assembly’s public health committee yesterday but found only disagreement, the Connecticut Post reports. As usual, opponents stuck to the usual prohibitionist talking points and pointed to recent comments from White House Press Secretary Sean Spicer and Attorney General Jeff Sessions as justification to keep the status quo.

During her testimony, Republican state Rep. Melissa Ziobron, a sponsor of a recreational use measure, argued that “legal marijuana is safer than alcohol and tobacco.”

“Marijuana has never caused a fatal overdose in the 7,000 years of reported human use,” she said in the report.

Ziobron noted that the potential tax revenues – estimated between $30 million and $100 million annually – would help bridge the state’s budget gap and could boost tourism interest in the state.

“It’s not just about the revenue,” she said. “In Denver tourism is at all-time high, no pun intended. They found marijuana laws increased the decision to go on vacation in Colorado by more than 50 percent.”

She added that by not legalizing cannabis as Massachusetts and Maine roll out their voter-approved legal regimes Connecticut would lose tourism dollars.

“What’s going to happen when they start driving through Connecticut to Massachusetts and Rhode Island to enjoy something other states have legalized?” she asked.

The bills in the state legislature would regulate and tax legal cannabis sales while requiring product testing.

End


Spark the Conversation: Dale Sky Jones, The Oaksterdam Story

Dale Sky Jones is the executive chancellor of Oaksterdam University, an internationally recognized cannabis education institution based out of Oakland, California.

In this podcast episode, Dale is interviewed by renowned cannabis advocate Bianca Green for the first episode of her Spark the Conversation podcast, produced in partnership with Ganjapreneur. This interview was recorded last fall during the Spark the Conversation bus tour across California, during which Bianca and her team bused around the state talking to cannabis advocates and experts in preparation for the November elections. This means that the conversation took place before California, Nevada, Maine, and Massachusetts voted to legalize adult-use cannabis — and before Donald Trump’s victory in the U.S. presidential election.

The following interview contains some truly amazing stories from Dale. Tune in below to hear about how Dale quit her corporate career to dedicate her life to cannabis education and activism; her experience being targeted in a 2007 federal raid on Oaksterdam University; the moment she realized that motherhood, specifically the ingrained instinct to shelter and protect her children, goes hand-in-hand with advocating for safer and smarter cannabis policies; and much, much more.

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Read the transcript:

Bianca Green: Welcome to the Spark The Conversation podcast in partnership with Ganjapreneur.com. I’m your host, Bianca Green. I’m super stoked today to be talking to a drug war veteran and dear friend, Dale Sky Jones. She is the chancellor of Oaksterdam University, a mother, a wife, and an overall badass. She inspired me many, many years ago in a lot of advocacy realms and she’s been fighting the good fight for a long, long time.

She has seen Oaksterdam get raided. She has seen people have their children taken away for being cannabis patients, and today I’m really excited to sit down with her so she can share a bit of her journey and talk about where we’re at today. Dale was very instrumental in making sure that California legalization was a priority. She put together the reform California Coalition last year and then that morphed into some amendments that went into 64.

Now cannabis is legal. I did get a chance to sit down with her before legalization and I think by the time this podcast comes out, she’ll be out of the closet that she had found out she was pregnant the same day of recording the podcast, so I’m super super stoked to sit down with her. I admire her so much, and she drops knowledge every time she speaks, so I’m looking forward to this today.

Hi, we’re at Oaksterdam University with Dale Sky Jones today. Thank you so much for being here with me. You and I have been friends for quite some time, drug policy comrades to a degree. Coming to Oaksterdam over the years to visit you, why don’t you tell me and our listeners what it is exactly that Oaksterdam University’s mission is and what you guys do here.

Dale Sky Jones: Sure. Well, I’m just thrilled to have you Bianca, so thank you for bringing Spark The Conversation and just lots of fun. Oaksterdam University, I think a lot of folks think that they know what we are, but having not been through the doors, it’s hard for them to contemplate. Some people just picture it’s some dark smokey room where we’re doing joint rolling classes in the back.

The reality is, we were founded back in 2007 with a mission to provide quality training for the cannabis industry. This was back before it was an industry. In fact, we got a lot of guff’s that we even called it an industry. It was still very much a movement, but we believed that the only way to be taken seriously, the only way to actually become regulated was to start treating ourselves as an industry and self-regulating in the process. That started with education.

Over time, it began really focused just trying to learn how to grow their own medicine, how to be a qualified patient, and their rights and responsibilities under the law. Our founder first started teaching classes, honestly just to get people to show up to the City Council meetings. He thought, “Well, what do people want from me? They want to learn how to grow? What do I want from them? I want them to show up.”

He put out this idea of education almost as a quid pro quo, “I’ll teach you to grow and then I need you to help me go move this policy because it’s going to take a lot of hands to lift, so we’ll give you the horticulture class, but first, first you have to take the prerequisites which are politics, history and legal.”

What that did was convert otherwise law-abiding citizens who just wanted to become a student into freedom-fighters because once you know, you can’t unlearn what you just found out, so that was the trick was, “Get in here and let us tell you the truth and then by the way, we’ll teach you how to grow and once you know the truth, you can’t help but join the fight.”

The students that first came to us were just trying to be patients and then they wanted to get a job, so we started adding classes and it went beyond just the, “Here’s how to be a patient. Here’s how to cultivate for yourself.” We started adding cooking with cannabis and extraction classes, and then an advocacy and an economics class, and then a budtending class, which we quickly renamed “Patient consultant” because I swore I wouldn’t call it “Budtender” until we legalized, so hurry up so I can change the name of my class.

Then it slowly went from people trying to find a job to people wanting to start a company. We got this influx of entrepreneurs and folks that were looking to invest and understand. Then the federal raid happened, the smack down happened, and it went back to bam, people just learning how to be qualified patients and grow in the closet because everyone was scared back out of what had been going on here in California.

Over the last couple of years since Colorado, Washington have passed, since California has finally enacted the MCRSA and other states including Guam, go Guam, nobody ever mentions Guam, not much love for Guam, that it’s progressed to the point where now we’re training regulators, we’re training legislative analysts, we’re training bureaucrats on how to regulate the cannabis industry. I dare say that that’s what I’ve almost had the most fun with lately.

It’s very heartening to see bureaucrats, people that were very fearful. Now that it’s their job to do so, they are embracing it wholly. These folks are trying to do a good job. They’re trying to do it the right way the first time, and that is inspiring for me when I see our government officials really trying to get it right for Californians.

Bianca Green: That’s amazing because it was so opposite when you first started freedom-fighting for the plant. Tell me about some of the roadblocks that you hit when you first came out as an advocate and educator in the cannabis space.

Dale Sky Jones: Well, there’s a couple times that I can think of that were really informative for me. The first was, I got a call from a patient, and this was back when I was still working with doctors down in Orange County. This is how I got started in the cannabis industry was managing doctors who worked for LA General and they saw a lot of patients come through but they weren’t allowed to talk about cannabis with them. This group of doctors formed a side clinic where each of them would work one day a week at this clinic doing medical cannabis recommendations.

Bianca Green: What year was this?

Dale Sky Jones: This was back in 2007 in Orange County.

Bianca Green: Wow.

Dale Sky Jones: Yeah. Can we say right-wing conservative?

Bianca Green: Where they’re still not very friendly.

Dale Sky Jones: No.

Bianca Green: They wouldn’t, Irvine wouldn’t even, didn’t accept our bus tour.

Dale Sky Jones: Irvine is exactly where my office was.

Bianca Green: Yeah. Yeah. It’s still-

Dale Sky Jones: I’m very familiar with the conservative Orange County, but what was remarkable is there were task forces, these roaming task forces over Tri-County areas that were just looking for doctors to try to put them out of business. They were trying to get doctors to either do questionable recommendations or get paperwork that they could somehow turn in total setup.

I got a phone call from a patient who had actually gone through the process, and while he was in the office, he says, “Congratulations Dale.” It’s like, “For what?” He’s like, “You run the best office that we have in Southern California. You’re the only office that wouldn’t let them in.” I was like, “I’m sorry. What are you talking about?”

He’s like, “Well, my brother is on this task force and they’ve been trying to get an appointment with you for the last three months, and the only way they could get in was to send me because I’m a real patient, and you almost didn’t give me a recommendation, so clearly you guys are doing it right, you’re doing it well.”

In fact, one of the doctors that worked for me no more than you’ve said yes because you wanted people to try other stuff. Whether or not you agree with that, this was how we had to operate in conservative Orange County California. Just realizing that we had been under the microscope like that and I remembered some unusual calls of people trying to get an appointment but they couldn’t really tell me what was wrong with them, so I just simply don’t set appointments for people that didn’t seem to have their act together.

It turns out it was because they were used to just winging it and getting what they wanted, so just realizing that I came that close and the actions that we did protected five doctors from potentially being in trouble for something that was truly helping people, that was my first taste that even though you think what you’re doing is right, even though you’re doing it entirely by the letter and the spirit of the law, there is still people looking for you to take you down and make an example of you.

They will use any thread, any thread they can, they will yank on and unravel you and that’s why you’ve got to keep it tight. That’s part of what we teach at Oaksterdam is how to set yourself up for success, how to prepare for the worst and then we’re going to show you how to wing it because everyone is still very much winging it these days. You just have to find your parameters.

The next time that I truly personally had, it’s the only time I’ve ever been attacked in my mind for being an advocate or an activist on any level. I kept waiting to be attacked, I kept expecting to be attacked and I was very fearful the first few years. I didn’t know how to talk about it. I didn’t know how to introduce the concept of what I did for a living. I would just say, “Oh, I work in medicine. I work with patients,” but I wouldn’t find ways to explain what I did or why I did it because I was always afraid that somebody was going to attack me.

Again, remember, this was 2007, 2008. I just quit a corporate job where I was fully vested to go do what? Move to California to do what? They thought I was crazy. I couldn’t explain that to people, so I lied to everyone about what I was going and doing because it felt right to be doing it but I hadn’t quite figured out how to explain it. I just didn’t talk about it.

I said, “I work in medicine,” and if they asked me anything else, I’d start talking about billing and people would just shut down, turn off, and tune out, so it was a really easy way to never talk about it because people don’t actually care.

Bianca Green: Well, once you start telling the truth, people disconnect. They like to be entertained a little bit more than they want the facts.

Dale Sky Jones: Right. If I had just said, “Cannabis,” they would’ve been entirely entertained but I was not looking to be their entertainment for the day. I hadn’t figured out how to defend myself yet, but here’s what’s so remarkable, Bianca, I never had to. This is the part that I want to get across to your listeners is all of that fear was internal. It was my own head attacking myself with all of the same stigmas.

I didn’t need anybody else to do it. I was doing it to myself to the point that I wouldn’t even tell my grandma what I was doing and then all of a sudden, she died. I didn’t even get the chance to explain to her that I might be trying to save the world over here because I couldn’t figure out how to explain to her what I was doing. It was years later that I finally got to the point of being out and being unafraid and being vocal.

I showed up to a press conference, a press conference mind you, this was not a cannabis event. This was not a smoke out. This was a … the most dangerous thing in the room were the cameras. It was a peer press conference in a hotel in San Francisco. It involved the former president of Mexico, Vicente Fox. There were a couple other people on the stage. I think Dale Gieringer was there as well as herbicide Steve DeAngelo who, when he saw me arrive, asked me if I would participate in the press conference.

I had arrived with my two-year old and I wasn’t planning on participating. He was maybe two and a half at the time. He sat in the audience with Nate Bradley of the CCIA, actually grabbed him, and he just walked around the room while the press conference was going on. He didn’t actually say anything because the kid didn’t talk until he was three and a half, so not a peep even came out of him, but he was present. He was there.

At a certain point in the middle of the press conference, he came right up, crawled into my lap and sat there while Vicente Fox was talking. I suddenly had a two-year old in my lap so I went ahead and addressed that this was also about the children. The people on the stage agreed with me that this was, “This is why I’m doing it is for the children. It’s to keep children with their families.”

After the fact, a reporter from San Francisco, instead of writing about Vicente Fox, instead of writing about his message or the message, the importance of Mexican and American relations, instead she chose to attack me for having a child involved in a marijuana event, and called it “Smoke gets in your smoke,” and said, “You know, I can’t even hear anything that they said over a two-year old being present in the room,” that “There shouldn’t have been a child in that room, certainly not during a conversation about drugs.”

I’ve got to be honest with you Bianca, I was pregnant with my second child at that point, had never experienced such vitreal from another woman. She accused me of treating my child as thought it was a bracelet, something that you accessorize, that I brought my kid with me as an accessory because apparently she’s never had to raise a child largely by herself because I wasn’t getting a paycheck. We had just been raided very recently.

When we were raided, we lost everything including a paycheck and health insurance for the very kid we were talking about there, and my husband was working six days a week to try to support the family, so I couldn’t afford childcare. It wasn’t an option for me at that time because I didn’t have anything extra and she’s attacking me for being a mother with her child present. That was probably … It knocked me to my knees.

Bianca Green: I can imagine.

Dale Sky Jones: I didn’t come back out for probably nine months after that. I was still pregnant and I felt like I was a bad person for being pregnant and talking about this at the same time. I’ve come to realize that it’s going to take women like me to do that anyway, to make it okay for everybody else.

Bianca Green: You’ve been such an amazing advocate and such an amazing face and voice for this industry and more importantly the movement before it became one. You should be very proud of everything that you’ve done. People forget often that it’s a war and there are casualties of war. I’ve fought the front lines in DC with patients who’ve died fighting for the freedom of the plant. I think you, as a female, and a lot of the females that have been coming forward throughout the years, based on people like yourself and myself coming out of the closet has really opened the compassionate side of this movement, so Mazel Tov to you for bringing your child to that event because to identify a family as not a unit because you believe in something is completely inappropriate.

Now we’re looking at it as plant-based medicine. We’re changing the narrative about it and that’s not easy. It’s not easy for conservatives to accept that. It’s not easy for people who have been hit with propaganda all of these years to understand that, and you’ve done it so gracefully. You really have. There’s a lot of really great drug war veterans but you are one of them that’s definitely led California into the place that it’s been and Oaksterdam University is famous around the globe.

One of our social media people that’s on this tour today was talking about how in high school they all wanted to go to Oaksterdam University instead of another university because they wanted to come and get cannabis education. That, in and of itself, is a huge … She’s from Virginia. That’s a huge thing. You’re making a global impact and that, I know it sucks. These people can be mean, but good at you, good on you, however that expression goes. If you really, you set the tone for other women to come out who wanted to seek alternatives and fight for people who need it the most.

Dale Sky Jones: That’s the truth I think that what made it all okay was the women that came to me after the fact. I didn’t realize that I was becoming a spokeswoman for motherhood at the same time I was being a spokeswoman for cannabis policy reform. That was, I think, the shocker to me when I realized that it was not only hand-in-hand but that my power as an advocate came because I was a mother. Not only you can’t remove them from one another, but you shouldn’t.

I’ve also realized on another level, I’m introducing a concept that I never believed in myself as a young entrepreneur, as a young person. I’m 41 now, and I went straight into corporate at 18, actually 15, but I didn’t get the titles until 18. You start to realize that there are no babies in corporate, there’s no crying in corporate, there’s no crying in baseball. There’s a few things that you are and aren’t allowed to do, but you’re certainly not allowed to be a mom out loud when you’re in any of these scenarios.

I realized that the young women and young men that I hire today that watch me, I didn’t have a choice at the time. I was working from home like I was supposed to when my first child was born. I took a leave of absence for maternity and then I just came back to work one day a week and did everything from home or phone. When the raid happened, I had to be present. I had to show up which meant I had to strap the baby on and go to work because I didn’t have anywhere or anyone to leave him with.

We didn’t have family, so it was just me, my husband and my baby. Now I look back and realize that all of these young people that have worked for me since 2012, since the raid at the very least, since that happened-

Bianca Green: The Oaksterdam raid.

Dale Sky Jones: Right. We’ve been here since 2007. Right, the raid it was right down the street, the big … It was actually six locations were raided simultaneously. At that point of the raid, when you do what you have to do because there’s no options, I just introduced to a whole other group of people that the new concept of working mom is that you can actually bring your kid to work with you. I have a baby run in my office, and when people come for meetings with me, there’s often a nanny and a kid present. People get accustomed to that. The first time it’s a little bit weird, but I’ve actually found it gives better meetings. It brings out the best in people to have kids around.

Bianca Green: Well, we had that time where we interviewed Gavin Newsom. I interviewed Gavin Newsom and you were there with Jackson, right?

Dale Sky Jones: I think it was Jesse actually.

Bianca Green: Jesse?

Dale Sky Jones: Jesse was strapped on.

Bianca Green: Jesse was your youngest, strapped on. He was only like two months, if, and you were standing behind the camera manning it.

Dale Sky Jones: I know, and I’m trying to keep the baby from cooing into the microphone while we were interviewing Gavin Newsom.

Bianca Green: Yeah, because that’s how advocacy goes.

Dale Sky Jones: Bootstrap.

Bianca Green: It’s very bootstrap. Now we’re getting a lot more attention on it because it’s popular, but that was only two years ago.

Dale Sky Jones: It’s kind of hard to believe.

Bianca Green: It’s really hard to believe how far it’s come. I really like having the elevated conversation about the entrepreneurialism and I appreciate it but I think it’s important for people to understand where we came from, the challenges we still face and where we’re headed. Speak to that a little bit. Do you have any advice for inspiring entrepreneurs?

Dale Sky Jones: Well, I know here at Oaksterdam, what we always try to talk to people about, and it’s after four days of intensive training, so we’ve filled your five pound brain with ten pounds of information, just stuffing it in the ear at that point by the end, but there’s a couple of things that I really try to impart to the students because folks come to us for so many different reasons. Sometimes it’s very personal, they’re trying to help someone very close to them or themselves in some cases.

In others, it’s very entrepreneurial. They’re trying to figure out either, whatever industry they used to be a part of has collapsed or they’ve realized that the best way to get ahead in their current industry is to figure out how to also cater to the cannabis industry as an ancillary option. We train gladiators here at Oaksterdam, and when I say “gladiator” this is a trained fighter. Our gladiators are often first through the wall.

They sometimes get the most bloody. They sometimes make the most money, but in that process of training them how to fight, I ask them to do two things: say, “Please, please, as you move forward, you need to show up and that means show up to vote and once you show up to vote, you get called for jury duty and you need to show up to that, too.”

Bianca Green: Civic duties.

Dale Sky Jones: That’s actually, that is the big one. Then when you get jury duty, you sit and you pray to get that marijuana case.

Bianca Green: That must be really hard because a lot of advocates and a lot of people who I know that are getting into this industry are revolutionists to some degree and they are against the system to … I don’t know.

Dale Sky Jones: Well, some are and I dare say that some of the inspiration of the industry were the very instigators that you speak of, but a lot of the folks that are coming in now think of themselves as otherwise law-abiding citizens. They’re just practicing a little political discord by tip toeing into the cannabis industry. They don’t even realize how illegal it really is.

Unless you are part of the national discussion, unless you are part of moving the national issue forward, and when I say “national” I mean act of congress to legalize cannabis because right now, we are looking at a policy decision and a change in the face of the White House, a change in the face of some of these elected positions, a change in the Attorney General can entirely change the face of everything that we are looking at right now, entirely.

God forbid it’s President Trump with an AG Christie in there. Although I think Christie’s probably ruined it for himself by now, but at the end of the day, if you are not part of the federal discussion and there’s only two groups really genuinely working on the national conversation and that’s Americans For Safe Access For Patients and the National Cannabis Industry Association For Business, and if you’re not part of one of those two groups and tithing to at least one or both of those two groups, if you’re not part of that solution, you are part of the problem and you’re barely above the ostrich awaiting the fate of the dinosaur. The second thing that I ask people to do other than show up, which is really most of it-

Bianca Green: Because that’s the biggest thing, showing up.

Dale Sky Jones: Well, showing up, oh my God, and it’s the hardest part.

Bianca Green: Power numbers, it’s an important thing.

Dale Sky Jones: Very … It sounds simple but it’s not. That’s why I remind people, “Show up.” It’s just it’s important to do that, but the other is continue to advocate. In advocating, that means both advocating up and down. The way I explain it to them is you have to continue to advocate up to your elected officials, to the thought leaders, that we have responsibilities.

Don’t say the word “recreational” because that makes it sound fun for kids. We don’t want this to sound fun for kids, and we don’t want other parents thinking about their kids recreating when they’re walking into the voting booth either because that is not helping our cause, so let’s stop calling it recreational. Just things along those lines of being a thought leader-

Bianca Green: Responsible.

Dale Sky Jones: -and being responsible and advocating up for these things to the powers that be, so to speak, but what I leave every class with is this concept that you have to keep looking back and you have to make sure that you always advocate down as you rise yourself up in your company, in your business, and everything else, that you must advocate for the very people that got us here, that we got here on the backs of patients, and no matter what you do whether you’re the guy that gets bloody or you’re the guy that makes money, if you’re the guy that makes the most money, you had better find ways to give back whether that’s compassion programs for people that can’t afford it, or if your local boys and girls club, you have to find a way to make sure that you are leaving your community better than you found it.

Then I get a “Whoop” and cheer out of the audience and everyone says, “We’re with ya,” and out the door they go. You know what I found Bianca is every room I’ve walked into in the last few years, a third of the room is Oaksterdam alumni.

Bianca Green: That’s amazing.

Dale Sky Jones: It’s our alumni who are going out and changing the world. That’s who’s changing the laws in New York and Florida and Uruguay. This is our alumni that are coming in and learning how it’s done and they are going out and they are making it happen.

Bianca Green: Well, it’s a very impactful brand. You’re a very impactful advocate and the movement, and the newfound industry really appreciates all the hard work you’ve put into it. Tell me about some of the social responsibility you have at Oaksterdam. What is it in your own business model and then how do you encourage your students? You just sort of tapped on it, but let’s talk about it a little bit more, the social responsibility that you advocate for your students to go out and bring to the table.

Dale Sky Jones: Well, in addition to what I just mentioned and just truly encouraging people to think about how they can give back and do more, and a lot of people will. You just have to ask them. Also remembering to ask the people that you’re working with, “Hi, we’re new. We have a memo of understanding. We’re going to go do business together. I’m going to ask you what is your philosophy on this,” and trust me I do, and I find out and that’s how I decide whether or not I work with you.

Bianca Green: Yeah, me too.

Dale Sky Jones: If this is not your philosophy, you are not somebody I’m ever going to work with and you’re going to find that there’s a lot of other rather successful brands out there that will not work with you unless you have a strategy for that. The other thing that we do is try to impress upon our students that this revolution that we’re in right now, this social revolution, is the most important civil rights revolution of our time, and it’s the next iteration of what happened in the 50s.

This could be the end of the new Jim Crow. If we do this properly, we can finally disassemble the school to prison pipeline that’s currently in our country that is happening on the back of the drug war, but the reality is, if we’re not careful, we’re just simply going to usher in the next Jim Crow. That’s going to happen through our regulatory regimes.

If you look to what Florida recently did, last year they put out for five, an RFP for five businesses to apply to be cultivators. You had to have thirty years continuous in cultivation in the nursery industry in order to even apply. How many black people do you know owned a nursery thirty years ago in Florida?

Bianca Green: None.

Dale Sky Jones: How many women?

Bianca Green: None.

Dale Sky Jones: How many veterans?

Bianca Green: None.

Dale Sky Jones: So therein lies the problem. In Florida, fortunately, the Black Farmer’s Association, pardon me, sued and actually got, based on the fact that there were none, two extra permits issued, one for themselves. When you even look to Maryland, how many … I don’t think that there was a single solitary person of color, no one ethnic earned any of the permits. How is it that we’re now writing these new laws to still make impossible … These were the same people that are going to jail while there are people making money and now we have to make sure that we’re writing laws that don’t keep them out because they’ve been in jail.

These are experts, people. These are not the people we should be kicking out of the industry, but also, back to something that I said early on about small business and needing to protect small business, and I don’t mean small business like fifty and under employees. I mean micro businesses because this is where women, people of color, and veterans thrive is in small business.

Bianca Green: Absolutely.

Dale Sky Jones: Small business was 86% of our American economy last year. There’s no reason it should be any different in the cannabis industry.

Bianca Green: Well Dale, thank you so much for being with us today. It’s an honor. You and I have seen each other through a lot through this whole process. November 8th is right around the corner. It’s bitter sweet in a lot of ways, but I definitely feel like the advocacy that you and your organization that you put together, CCPR, really had insurmountable … I can’t even talk.

Dale Sky Jones: It’s true.

Bianca Green: Participation in that, and really did a lot to advocate for things in that initiative, so congratulations to you on all of the efforts that you’ve put forth and keeping Oaksterdam alive even after a raid. It’s pretty amazing. It’s pretty amazing. Can you tell me where people can find you?

Dale Sky Jones: Well, you can find me at Oaksterdam.com. We’re also at ReformCA.com, but I think Oaksterdam.com is probably the best place to go, O-A-K-S-T-E-R-D-A-M.

Bianca Green: Your semesters, how does that work if people want to get involved?

Dale Sky Jones: You can come take classes one of two ways. We do have a very comprehensive program in the semester form. There’s two different courses: the classic course which covers a little bit of everything and then we developed a specific horticulture course that really does a deep dive on both indoor and outdoor. If you’re unable to come for fourteen full weeks, we also have the express program, if you will.

You can come and take a seminar in four days and so you get most of the materials that you would in a semester condensed into four days. The only difference is with horticulture, if you want outdoor, you do have to come to the semester. We just focus on indoor in the seminar. We also have a seminar coming up here Las Vegas November 11th and then we’re taking a bite of the Big Apple at the beginning of December as well.

Bianca Green: Oh, that’s wonderful. Expanding.

Dale Sky Jones: Yes, so you don’t have to come to us. We come to you. We’ll be online next year so you can just come to Oaksterdam in your underwear. No, you can’t actually come through my doors in your underwear. You can sit on your couch online.

Bianca Green: That’s wonderful. Well, thank you so much. We want to keep in touch with you, and keep track of your progress with Oaksterdam and keep us informed on where you guys are at.

Dale Sky Jones: Absolutely, and make sure you get out and vote. Nothing is inevitable. Thank you.

Bianca Green: We know that. We talked about that a lot. Nothing is inevitable. It is-

Dale Sky Jones: I’ve worked way too damn hard for inevitable.

Bianca Green: Yeah. Yeah, we’re not leaving it up to people who aren’t being active, right?

Dale Sky Jones: Show up.

Bianca Green: Show up.

Dale Sky Jones: Show up.

Bianca Green: That’s how it works.

Dale Sky Jones: Thank you Bianca.

Bianca Green: Thank you Dale.

Spark The Conversation is really excited to do this partnership with Ganjapreneur.com creating these podcasts. It’s a resource for cannabis professionals, advocates, patients, business owners, anyone really who’s in favor of responsible growth, so visit Ganjapreneur.com for daily cannabis news, career openings, company profiles and of course more episodes of this podcast. We’re thankful to them and the partnership that we have with them. We appreciate the fact that they spark the conversation and help ganjapreneurs grow.

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Young cannabis clones growing under the grow lights in a WA cultivation site.

Italy Publishes MMJ Guide for Physicians and Pharmacists

Italy’s Health Ministry has published its guide to medical cannabis targeted at physicians who can prescribe it and pharmacists who can sell it, according to West, a newspaper in Brussels, Belgium. The guidelines outline administration, warnings, precise dosing, possible drug interactions and side effects.

Under Italy’s program, medical cannabis is approved for patients suffering from severe conditions including chronic pain; spasms associated with pain, such as those suffering from spinal cord lesions or multiple sclerosis; patients undergoing chemotherapy, radiotherapy, and HIV therapies; drug-resistant glaucoma; and Tourette’s syndrome. Additionally, medical cannabis use is permitted in cases that require appetite stimulation, such as cachexia and anorexia. The guidelines allow for medical cannabis use when all other conventional treatments fail.

Nearly two years ago it was reported by the BBC that the Italian army was growing medicinal cannabis in a pharmaceutical plant in Florence hoping to help meet the national demand. Colonel Antonio Medica, who is in charge of the Florence base where the grow is located, said the project could get medical cannabis costs down to 8 euros per gram. According to the guide, the cannabis grown at the base is between 5 and 8 percent THC and 7 to 12 percent CBD.

“My mission is to produce the best-quality cannabis on an industrial scale at a low price,” Medica said in an Independent report.

Italy legalized medical cannabis in 2013; however, the cost has remained prohibitively high at about 38 euros per gram.

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The Eiffel tower in Las Vegas.

Nevada Official Wants Tandem Recreational & MMJ Market

The official in charge of Nevada’s medical cannabis program told the state Senate Finance Committee that the same products should be sold in both the medical and recreational cannabis markets in the state, with only different taxes applied at the point-of-sale, the Las Vegas Review-Journal reports.

Joe Pollock, the deputy administrator of the Division of Public and Behavioral Health, said treating the products differently would create regulatory burdens on the industry.

“I think there’s a lot of advantages of having recreational and medical marijuana treated the same, right up until the point of sale,” Pollock said in the report.

The setup would be different than the current system in place in Colorado, where there are different checkout counters for medical and recreational sales.

Pollock’s comments are the latest sign that Nevada’s adult-use market could differ from the infrastructure in other states. Lawmakers are expected to take up a public-use bill this session that would allow social clubs to operate in the state. And while the state legislatures in Maine and Massachusetts have both passed legislation delaying the implementation of the voter-approved cannabis measures, Nevada officials have indicated that they are six months ahead of schedule, anticipating adult-use sales to begin as early as July 1.

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Harrah's Casino and Resort in Atlanta City.

Meet the Experts V: A B2B Spring Break

West Palm Beach, FL – The first business conference designed for east coast states that have recently adopted medical and recreational marijuana will be held on March 18th and 19th at Harrah’s Resort in Atlantic City. National and regional experts will advise on licensing, regulations, growing, medical recommendations, extracts, edibles, labs, delivery systems, taxes and banking.

Watch highlights from a Meet the Experts conference:

Event producers Rhory Gould and Robert Platshorn brought together a roster of outstanding cannabis professionals to speak, advise, meet and network for two full days. Key Note speakers include award-winning Denver Relief Consulting and Discovery Channel’s Master Grower, Mike Boutin. Attendance is limited to a maximum of 450. All ticket sales benefit The Silver Tour, a non-profit that teaches seniors the benefits of cannabis.

These conferences are common in Colorado and California, but east coast states are relatively new to the industry. According to producer Robert Platshorn, “States from Florida to Maine passed new cannabis laws in 2016. Most are just now writing their regulations or have just announced licensing opportunities. Confusion about who can do what or who can be licensed, is rife. Doctors need guidelines. Growers want information on legal growing. Labs, labeling and packaging are new to many aspiring entrepreneurs. Meet the Experts will focus on this information void.”

This is the fifth Meet the Experts conference. Prior conferences sold out and drew praise from attendees and industry leaders.

Crowd’s view during a presentation from the 2014 Meet the Experts.

“I have to say I’ve been to hundreds of conferences as a psychologist and that was the best, most rich in content, meaningful conference I’ve ever been to. Right up to all the details of the meals, the networking, and discounted accommodations,” said Kelly Sachs of ASA. “Really well done!”

Fun times at the Meet the Experts’ 2014 conference.

According to producer Rhory Gould, “Harrah’s Resort in Atlantic City is the perfect venue for a Business to Business Spring Break. Easy to reach from most cities. Harrah’s has made a hundred rooms available to ticket holders at a deep discount.” Information and tickets are available at  http://www.meetexperts.org/.

For photos and interviews contact Robert Platshorn at Meettheexperts@gmx.com, cell # 954-773-6967.

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Flags flying on top of an adobe-style building in Santa Fe, New Mexico.

New Mexico Hemp Bill Passes Second Committee, Moves to House for Vote

A bill that would remove hemp from New Mexico’s controlled substance list has passed through the state’s House Labor and Economic Development Committee, moving it to the House for a full vote, according to a report from the Tenth Amendment Center. If approved, the measure, HB.166 sponsored by Republican Rep. Ricky Little, would allow full-scale commercial hemp farming.

Under than plan, hemp cultivation would not require any special license, treating the crop like any other agricultural product so long as it’s THC content is not more than .3 percent, as defined under the 2014 federal Farm Bill. The bill passed the committee 10 to 1 after passing through the Agriculture and Water Resources Committee 7 to 1 last month.

According to the fiscal impact report accompanying the bill, no government agency reported a positive or negative financial impact in the state, although Little wrote that “there could be some reduction in prosecutions for cultivation, possession or trafficking in this substance.”

If the measure is approved, New Mexico would join California, Massachusetts, Maine, Oregon, Colorado, and Vermont in allowing industrial hemp production within the state.

Little has also introduced HB.154 this session, which would establish an industrial hemp research and development program in the state, which would require licensing. That bill unanimously passed the House Agriculture and Water Resources Committee on Jan. 31.

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A dispensary worker at Chalice Farms in Portland, OR stuffs pre-rolled joints in the back room.

Poll: RI Voters Favor Adult-Use Cannabis Market

According to a Public Policy Polling survey, Rhode Islanders are slightly more in favor of legalizing adult-use cannabis today than they were in 2015; finding 59 percent of voters support a regulated cannabis industry compared to 57 percent two years ago. About one in three, 36 percent, said they were opposed in the poll taken between January 27 and January 29, WPRI reports.

The survey comes as Democratic lawmakers Rep. Scott Slater and Sen. Joshua Miller, chairman of the Senate Health and Human Services Committee, introduced legislation to enact an adult-use market. Their proposal would allow adults 21 and older to possess 1 ounce of flower, grow one mature cannabis plant, providing for retails sales taxed 23 percent in addition to the 7 percent state sales tax.

“Our job is to represent the people of this state, and their position on this issue is pretty clear,” Slater said in a Rhode Island Public Radio interview.

The poll was commissioned by Regulate Rhode Island. A 2016 survey by Brown University found 55 percent of registered voters supported legalizing cannabis for adult use.

“The results of this poll confirm that our constituents want us to follow the same path as Massachusetts and Maine,” Miller said in the report.

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Marc Shepard: Preparing for Legalization in New England

Marc Shepard is an active member of NORML, MassCann, and the Patient Advocacy Alliance. He is also co-founder of the New England Cannabis Convention: an extensive and affordable cannabis industry business conference that is returning to Boston this April.

In the following interview, our podcast host TG Branfalt and Marc discuss what can be expected for Massachusetts and Maine (the first states in New England to legalize adult-use cannabis), what is likely to happen to the states’ medical markets as recreational laws come online, how lawmakers and entrepreneurs are preparing for the changes, and more!

Listen to the episode below, or keep scrolling for a full transcript of the interview.

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


Listen to the interview:


Read the transcript:

TG Branfalt: Hey, I’m TG Branfalt. You are listening to the Ganjapreneur.com podcast, where we will bring you essential cannabis business news and insights, by speaking with stakeholders, experts, and entrepreneurs, who are focused on normalizing and demystifying the cannabis industry. Since November’s election, the General Election in particular, attention has been paid to California, after all, it is the nation’s most popular state and has led to … The industry is the first state to pass medical cannabis laws, in 1996. New England is quickly making its own mark with two states passing their own adult use measures, a couple of months ago.

Today, I’m joined by Marc Shepard, a member of NORML and MassCann and the Patient Advocacy Alliance. He’s also the co-founder of the New England Cannabis Convention. We’re going to discuss the newly legal eastern states. How are you doing today Marc?

Marc Shepard: Terrific TG, and thank you so much for having me on today.

TG Branfalt: It’s my pleasure, my man. I’d like to kick off our discussion today with Massachusetts. Massachusetts has a medical program, which was pretty new by the time that voters approved the ballot initiative, so let’s start … What’s the status of the medical market, and how might the adult use market impact the current structure?

Marc Shepard: Sure. The brief history in Mass., possession was decriminalized less than one ounce, back in 2008. The medical programs were approved in 2012. The first dispensaries, unfortunately, didn’t open until 2015. You get a taste of the Massachusetts bureaucratic process there. I’m sure that will apply to the new rec market.

The medical program has been up for four years. There’s 35 licenses approved. There are only eight or nine dispensaries active and open. We still have a long way to go just to get enough medicine out to patients. With rec passing now, obviously, the immediate impact, if you’re a patient and you’re having trouble getting to a dispensary, you can now grow up to six plants yourself, possess 10 ounces at home, two ounces in public … You can also be gifted up to an ounce from another person. The first impact of the medical program is just that, patients now who don’t have easy access to a dispensary or a caregiver, have it a little bit easier to try to get medicine now.

TG Branfalt: There’s no indication that the medical market is going to be decimated by the rec initiative?

Marc Shepard: No. I can’t see that. This isn’t a perfect analogy, but I just kind of say, you can get brandy at a liquor store but that’s not medicine. Yeah, there’s cough medicine … Brandy has alcohol in it. It’s kind of the same thing with medical mariajuana. You can go to a rec store and buy cannabis, but honestly, that’s cannabis that’s grown and developed in order to produce a good high for people, whereas medical mariajuana is going to be produced specifically to treat ailments and specific symptoms people have. So the rec market isn’t going to produce the medicine people need for their ailments.

TG Branfalt: So you said that there were 35 licenses, given in Massachusetts, but there are less that 10 dispensaries operating. Do you have any indication when the rest might come online?

Marc Shepard: It’s picking up speed. I think there were more than 90 approved applicants, and they are all going through the process. It’s an arduous, obstacle course of getting through all of the state regulations and then finding a town, and getting all that done. Everybody makes their estimates as to how soon those 35 will open. All I can say, is it’s starting to happen faster and faster. Certainly before there’s recreational stores open, I would guess the number of medical dispensaries will at least double in the next year.

TG Branfalt: Let’s talk about the recreation in Massachusetts. According to Arcview Group and New Frontier Data, they estimate that the state market could be worth one billion by 2020. Much of that figure could be driven by Boston … It’s 200 miles away from New York City. How much of that estimated one billion dollar figure, would you think would be driven by tourism?

Marc Shepard: I’ve been reading a lot about that, and a couple of people have written about how Boston is going to become the capital of cannabis by 2020, for some of the reasons you mentioned. I’m a little bit skeptical of that. I think right now, these estimates are making some assumptions. One, that things are going to progress quickly in the Mass. market, which I don’t think is going to happen, unfortunately. I think it’s going to be much slower than what people think. Also, that’s four years from now. That gives, be it Rhode Island, New York, New Jersey, Pennsylvania … That gives them four years to pass their own recreational ballot. I think those estimates, they’re based on some pretty big assumptions. I think it will be a great market. I think it’ll be a terrific tourist market. I think Cape Cod is a great tourist destination, and obviously Boston can be too. I would just say, in general, my experience with industry forecasts, they’re always wildly positive. I’m not trying to be negative. I just think that’s a little bit high.

TG Branfalt: Now you said several times that you anticipate the roll out of the recreational program being slow. Is this due to the blowback that occurred during the election? During the run up to the election by the governor and the mayor of Boston? Do you think that they’re going to try to stand in the way, or do you think that it’s just going to be a slow process?

Marc Shepard: I think it’s both. I think when you have the mayor of Boston and the governor both openly, fully opposed to this, there’s just so many ways that the sitting government can drag their feet on a process. Also, just with the law itself, it’s pretty vague, and gives states a lot of control on zoning, and on licensing, and how thing are done. So just the normal process of saying, hey, we’ve got to set up a commission. We’re going to set up a brand new control commission and give them nine months to set up rules and regulations. Even out of the gate, you’re talking about a year before a license could even be issued. It’s just going to move slow. It’s going to happen. I think it’s just going to move slower than people think. I don’t think anybody anticipated three years, from the time the medical program was approved till the first dispensaries sold marijuana. If you apply that here, you’re talking 2019 before rec would be sold, which I’m not saying will happen, but that’s what happened with medical.

TG Branfalt: Are there a lot of municipalities seeking to bar a recreational market from existing in their townships?

Marc Shepard: There’s been a decent amount of talk, so far, especially when you’re saying nobody can even apply for a year. The fact that it’s coming up, shows that people are looking at that and are concerned with it. The easiest way for towns to do it, is to set up zoning laws that sort of make it impossible. In my hometown, in North Attleboro, the zoning law for medical dispensary … You have to be separated a certain amount from schools and by churches. When you draw a map of the town, there literally isn’t any space in the town that meets the zoning qualifications. There’s lots of things that people can do to slow things down.

TG Branfalt: What’s the next step in Massachusetts? I know that we’re very early, and that no licenses, even preliminary licenses, have been issued. Where are we now in the process, and what’s next?

Marc Shepard: Sure. Right now, in this first year, there’s 75 available licenses for retail. Each license holder can apply for four different licenses … A retail shop, a product manufacturer, cultivator, and testing facility license. So you theoretically have up to 75 licenses available. In this first year, the only applicants that will be considered for those 75 licenses, will be the 90 people who successfully submitted medical marijuana applications back in 2015, and received a provisional approval. The first 75 will come out of that group. Starting in 2018, the process will be open to everybody. As those licenses are being submitted and applied for, there’s going to be a three person cannabis control commission, that’s going to be named by the state, and they’re actually going to be writing the regulations as they’re getting applications submitted and going though the process.

TG Branfalt: Have any representatives or officials or lawmaker … Have they gone to Colorado, or one of the other legal states, to get an idea of what the regulations might look like?

Marc Shepard: Yeah, there was a group of state reps, and local reps, that did go out to Colorado. They came back with a mixed bag. A lot of their quotes about what they saw, and statistical quotes that they gave to the Boston Globe and the Herald, flew in the face of statistical information from Colorado. You have people coming and saying that there was high crime and social decay, and all these problems that the state itself, in Colorado, claims that’s not true. There was some effort put into that but it seemed there were people out there just looking to sort of validate what they had heard, or what they wanted to say. It’s tough out here. There aren’t many local legislators who think it’s going to be good for them politically, to be at the forefront of this, so everybody is going to kind of … Go along for the ride, but no one is going to lead, because nobody thinks it’s politically advantageous to do so.

TG Branfalt: It’s very interesting that, in a state that has … It wasn’t an overwhelming passage of the law, but that the officials really aren’t behind this at all. It shows the will of the people kind of shining through. Applause to the activists in Massachusetts. We’re going to step away from the show real quick and take a short break. When we come back, we’re going to talk about the other state that legalized adult use cannabis in the northeast, Maine. This is Ganjapreneuer.com podcast. We’ll be right back.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m TG Branfalt here with Marc Shepard, member of NORML, MassCann, Patient Advocacy Alliance, and co-founder of The New England Cannabis Convention. We’re here discussing the northeastern states that recently passed adult use cannabis legislation during the general election. We talked about Massachusetts. Let’s move on to Maine. Very similar to how we approached Massachusetts, how will … What’s a brief history of Maine’s medical market, and how do you think that program will jive with the new recreational market?

Marc Shepard: It’s interesting, Maine’s question, really got into the medical program, and tried to protect it a lot more than Mass. It’s a much older program. It started in 1999, passed with a huge majority. There are eight dispensaries open in Maine, which doesn’t sound like a lot, but there’s only a million people in Maine, so it’s the equivalent to maybe six times as many dispensaries, say in Massachusetts. There’s close to 50,000 registered patients and there’s a huge caregiver network in Maine, where people, individuals, can register as caregivers and grow plants, and provide medicine for up to five patients. It’s a huge program that also is an industry. You’ve got 3,000 caregivers making a living off of this. The referendum for rec in Maine, did a lot to protect that. The growing licenses, as they come out … I think it’s 40% of them, are set aside and can only be used by what they call small grows, which wouldn’t be practical for somebody coming from out of state. The laws specifically to have a huge portion of the rec market be awarded to local growers, and more than likely it’ll come from the existing caregivers, those 3,000 caregivers.

TG Branfalt: They were the only state initiative … The city of Denver also did this … to include Cannabis clubs in the legislation. Do you think that this is a good thing? Will it help drive the program, and to what extent?

Marc Shepard: I think it’s a great thing, to be honest with you. There’s a social aspect to cannabis use, just as there’s one for alcohol. It’s sort of legalizing it but making it something that you can only do when you’re hidden in your home, that doesn’t make any sense to me. I’m very excited by that piece of it. It’ll be interesting to see how it plays out in Maine.

TG Branfalt: There’s also been political attempts to thwart the voter initiative. The opponents forced a recount, which was verified as a pass. Governor LePage, has actually said that he wants to get rid of, to quote, “the medical marijuana program.” Similarly to what was done in Washington, which is now forcing patients to pay the 37% excise tax. Who, or what agency would have to implement such changes in Maine, and are activists concerned that LePage will have his way?

Marc Shepard: On the first part, on the recount bit, it was … When you’re trying to get something passed it’s always disappointing, but I think people have to admit, it only passed by 4,000 votes. Any valid question that … is that close … I think a recount is warranted. It was dropped pretty quickly when they saw that there wasn’t enough movement to do anything. I wasn’t really that upset about that.

As far as LePage, as the governor, his lack of information and lack and total refusal to educate himself on the issue, just …. It’s really reprehensible. For anybody again, to think somehow, that recreational marijuana is the same as medical marijuana, it shows that they haven’t made the least amount of effort to look into it. That being said, the medical marijuana program was a people’s referendum. The governor can’t outlaw it. He just doesn’t have anyway to do that. Gay marriage passed in Maine. If the governor is not for that, he can’t overturn it because he doesn’t like it. I think that’s a lot of saber rattling, and that’s just him getting the word out to his constituents, that he’s against it. I don’t see how he can do anything about it.

TG Branfalt: What’s next for Maine? I haven’t really seen any numbers about the projected revenue, such as I did in Massachusetts. Do you have any insights as to what the market might bring in, in Maine?

Marc Shepard: The same survey that you had quoted earlier about Mass. puts Maine at potentially 250 million by 2020. The interesting thing is that Maine is a huge tourist market, not just for New Englanders but also for New York. I think that piece of it, and the fact that there’s the social club aspect, maybe not dollar for dollar bigger than Mass., but I do think it will become a bigger tourist destination than Massachusetts will, just because it’s a great tourist place … The southern coast of Maine.

Right now, where the law stands is the governor, I think 10 days after the recount, to sign off on this, it’s really just a ceremonial thing. It goes into effect in 10 days after the recount ended, whether he signs it or not. It might even be tomorrow that those 10 days are up, and then possession, and growing, and use become legal 30 days after that. We’re looking at, say, the end of January. It’s going to be legal to possess and grow. The commission then has nine months to finalize their regulations. In Maine, it’s actually the Department of Agriculture. They’ll have until October 30, 2017 to finalize the regulations. Then the license application process will open for 90 days for existing dispensaries and care givers. Again, October 30th or so, 2017, is when those applications will start.

TG Branfalt: The legislation is a bit more clear than Massachusetts, in terms of time frame?

Marc Shepard: Yeah, I think so. Mass. Hasn’t even named the three people who are going to make the laws yet.

TG Branfalt: So let’s talk a bit about New England as a whole. Who’s next? Neither Vermont, New Hampshire, Connecticut, nor Rhode Island have voter referendums. Vermont’s tried a couple of times to legalize adult use. It’s failed. They’ve come the closest to a legislature actually legalizing cannabis for adult use. Do you think that Massachusetts and Maine might start a domino effect in New England?

Marc Shepard: I mean, obviously if they’re successful and well run, I think it certainly puts pressure on the other states. I would think, probably, Rhode Island has the biggest stake in that. They were the first state after the Connecticut casinos opened … The indian reservations … Rhode Island was the next state, as they saw they were losing revenue, they opened the first casinos after Connecticut. They’ve got probably the best and biggest, organized, advocacy groups, led by Regulate Rhode Island … Campaigning and lobbying the legislature. I think Rhode Island might be next.

It could happen in Vermont, from what I saw, the failure in the legislative bill was really just about the fact that it was written to benefit retailers. I think that sort of, Vermont attitude, of if we’re going to make anything legal, it’s going to be for people in Vermont to grow and possess this themselves, not to make it just legal to sell. I think it was a case of poorly written legislation that led to the state house to reject it. I think Vermont could pass as soon as the right bill is written.

New Hampshire’s still in it’s baby stages of medical, so I don’t think anything will happen there. I honestly don’t know that much about Connecticut, although they have a functioning medical program, but I haven’t heard much in the way of a thrust from the people for rec. Once these … Maine and Mass. … are up and running, and people are able to either critique them or see the success, I think it does change everything.

TG Branfalt: What might your advice be to potential investors in Maine and Massachusetts?

Marc Shepard: This may run contrary to what a lot of people think, but to me, if you want to get into the business, and you’re not already in it and experienced, look at the ancillary businesses that don’t touch the plant. It’s difficult to navigate, and expensive, and risky, to get into the license lottery. You’ve got to know what you’re doing. You’ve got to be connected. You have to have a lot of cash flow, and you have to be prepared to get shut out, even if you do everything right. If you’re able to capitalize on the ancillary business, be it … There’s millions. There’s lighting, there’s growing. There’s security. There’s transportation. There’s so many ancillary business connected to this industry. I would look at my own skill set and say, what skills are applicable to those ancillary businesses. I would try to establish myself there.

TG Branfalt: We’re going to talk a bit about you bringing some of these businesses together at the New England Cannabis Convention, but first we have to take one more short break. This is the ganjapreneur.com podcast. I’m TG Branfalt.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m TG Branfalt, here with Marc Shepard, co-founder of the New England Cannabis Convention. So I want to talk to you about the NECC. You guys were the first organization to hold these events in the northeast. Why don’t you tell me about it, and what’s the purpose?

Marc Shepard: We’ve actually been doing it for a little while. We came up with the idea in 2014, to sort of create a networking and resource hub for the local cannabis industry. We sort of said, look, medical is here. Rec is going to come, and sort of, our fear, myself and my co founder, Jeff Lawrence, was that with all the successful, existing business models in the other recreational states growing and competing there, when recreational use comes here, how easy is it going to be for them to take their proven models, and just plop them down in New England, and sort of take over the industry and send all the money back out west? Our idea was, how do we get all of the people who are interested in this industry, who are local, in the same room, to network and educate, and learn from each other, and build a framework for a New England-based cannabis economy?

We started with a series of small, local shows in 2015. We did shows in Providence, Rhode Island, Portland, Maine, a couple in Boston, Mass. with the idea of introducing ourselves and the idea, and then circling back to one major show. We did the first one at the Hines Convention Center in Boston this April, and brought in people from all over New England. Obviously, we welcome companies from the outside. We’re not trying to shut out other people, but we just want to give the people locally a chance to compete.

TG Branfalt: Did you have any issues with the Hines Convention Center, specifically as hosts for a cannabis con.?

Marc Shepard: I have to say, we’re very grateful to the Hines. No other convention center in Boston would even accept our show last year. They let us in. When we did sign, recreational use was illegal in Massachusetts. It’s still illegal federally. This is a state-owned facility. We had to sign an agreement saying that there’d be no actual cannabis product onsite. They asked us to sign that again, for our show next April. We signed the contract before the rec ballot passed. We’re sort of in negotiation now about what we can do, for people who have been to cannabis cups, in legal states … The vision of, a gigantic sort of farmer’s market with people sampling and partaking. That’s not going to happen anywhere in Massachusetts. We’ve got to build a model where maybe we host, sort of an event off site, and then for the convention itself, we’ll really just be doing an award show to highlight and celebrate the winners of the cup.

TG Branfalt: What was the turn out like? Was it more than you were expecting? Was it a little less?

Marc Shepard: The one in April, this year, was more. You never know when you haven’t done them. We did smaller shows in 2015 with between 55 and 70 vendors and maybe a couple thousand attendees. Then we did the show in April. We sold out the floor of the Hines. We had about 120 vendors. We had over 4,000 people come in, which certainly beat our projections of what would happen.

TG Branfalt: I was going over the website for the convention, and I saw a very interesting page about a canna-pitch slam. Do you want to elaborate as to what that is?

Marc Shepard: Sure. It’s a stolen idea, for anyone who is familiar with shark tank. It’s something that I had seen at a couple of other conventions, where you encourage young cannabis businesses, or not even born yet cannabis businesses, to submit their business proposal and their investor plan. What we’re going to do, is collect three or four veterans of the cannabis investment community to serve as judges. We’re going to take all the entries, read through them, pick our finalist, and then they’re going to do a live pitch to these people, shark tank style. It’s not going to be the same in that there’s not going to be a massive, onsite investment by these people, but it’s more just the idea of the entertainment of seeing the ideas come out, people competing, and getting hammered by questions in a very interactive type show at the convention.

TG Branfalt: How did you go about working around some of these issues with not being able to have cannabis onsite, and did this impact the expectations, I guess, of the attendees?

Marc Shepard: You certainly field plenty of questions from people asking, can I smoke inside? Can I buy cannabis inside? I understand those questions. I think it’s a little silly when people’s expectations is that they’re going to be able to smoke inside a state building. You can’t smoke a cigarette in there. How are you going to be able to smoke cannabis? Again, at the time, it was illegal.

The people who come to our show we’re really looking at two components. One, people who want to get into the business or are already in the business, and want to network … They don’t care if there’s plants in the show or not. Maybe some people want to demo a product they have and it’s easier to demo with actual cannabis. It’s not very hard to substitute a similar plant. The other half is people who are interested in the medical program, whether they want education for themselves or a loved one, or are trying to understand how to navigate the system, or get involved in that industry. Again, the absence of having an actual cannabis plant, doesn’t really impact that experience.

What we’re missing, and I’m a recreational user myself, I’d love to go to what I would call a pot festival, where there’s buying and selling and comparing. That would be great. I do understand that that’s illegal and it isn’t going to happen in Massachusetts, or anywhere in New England, for a couple of years on. I’m eagerly awaiting when we can do that, but it’s going to be awhile.

TG Branfalt: So, before we go, we’re getting short on time here, could you give me an idea of what was most exciting? What’s the most exciting kind of event or product was, at the last convention, and give our listeners an idea of how they can actually attend the next event?

Marc Shepard: Probably the most well attended and best feedback we got, was we had a programming stage of live demos. The demos went everywhere from cloning, growing, trimming, creating tinctures, making edibles … Every single aspect of home growing and using of cannabis, both for medical and recreational. I think there was a lot of great information there. People got very excited. They met instructors. They were able to get directions on what to do. We’re obviously going to greatly expand that now, for legal home growing and processing. I’m very excited to have a huge expansion of programming for that. The convention is April 22nd and 23rd, 2017. All the information for tickets are on our site, which is NECANN.com, which is N-E-C-A-N-N dot com.

We have very inexpensive tickets for people looking for medical information. They can just go in, pay a small fee to get in, and get access to all of the medical programming. Then there’s a more expensive ticket that gives you access to all of the demos, the business and career advice, and the main keynote speakers, and the full convention experience. It’s still, compared to the national shows that are charging $200, $300, $600 for admission, our ticket prices range between $20 and $70. It’s very affordable for anybody who’s looking to get into this industry.

TG Branfalt: Well Marc, I want to thank you so much for joining me today. It’s really refreshing to get … I’m from New York. I went to college in New York. I’m living in Michigan now, but to see the proliferation of the legal cannabis market, in the northeast, which I adore New England, it’s very refreshing and great that there’s somebody out there who’s already doing conventions and bringing would be cannabusiness owners together.

Marc Shepard: It’s fantastic. It’s a very exciting time in new England for this industry. Everybody I meet, it’s that enthusiasm. You get to be surrounded by smart, driven, motivated people, who are excited to be part of a brand new successful industry that will bring a great economic boom for this region. It’s fantastic to be involved in it.

TG Branfalt: All right. That was Marc Shepard, the co founder of NECANN. I’d like to thank you so much for coming on the Ganjapreneuer.com podcast, and wish you the bet of luck in April.

Marc Shepard: Thank you so much TG. It’s a real pleasure to be here, and I really appreciate the invite. Thank you so much.

TG Branfalt: Thank you, Marc. You can find more episodes of the Ganjapreneur.com podcast, in the podcast section of Ganjapreneur.com, and the Apple iTunes store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and insights and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. I’ve been your host, TG Branfalt.

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Bill to Allow MMJ for PTSD Moving Forward in Colorado

A bill allowing medical cannabis use as a post-traumatic stress disorder therapy is set to be introduced this session in Colorado, according to a report from the Associated Press. But if history is any indication it’s likely going to be tough sledding – the state’s Medical Board has rejected PTSD as a qualifying condition for medical cannabis at least four times.

If approved, PTSD patients would be moved into the state’s medical cannabis program, which would allow them to purchase cannabis outside of the heavily taxed adult-use program. So far, 19 states have approved PTSD as a qualifying condition for medical cannabis use.

Sen. Irene Aguilar, the bill sponsor who worked for 23 years as a primary care provider for Denver Health and Hospitals before her election, said the measure would “allow physicians to put marijuana in their toolbox if they so choose.”

“There is an institutional bias against marijuana in the medical profession,” she said in the report.

Since 2015, the state Health Department has earmarked about $3.3 million for medical cannabis studies aimed at developing PTSD treatments, which includes an observational study of 76 military veterans.

Colorado’s roll of 100,000 registered medical cannabis patients has remained stable since the 2012 passage of adult-use laws.    

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The city of Brisbane in Queensland, Australia.

Queensland, Australia Releases MMJ Guidelines

Australia’s Health Minister Cameron Dick has announced that the Queensland government has released the state’s first clinical guidelines for the medical cannabis program, according to a report from the Australian Associated Press. The guidelines will advise physicians on medical cannabis therapies, dosages, and treatment regimens, but require the products to be sourced internationally with the approval of the Therapeutic Goods Administration.

“Medical practitioners have not had information in a domestic setting to allow them to use or understand the use of medicinal cannabis…because the use of medicinal cannabis products in Queensland has been illegal,” he said in the report. “Medical practitioners to this point have had to rely on a range of medical literature sources including information from literature sources internationally.”

Although the Queensland regulations do not provide for cannabis cultivation in Australia, Dick is confident that Australia would eventually allow the cultivation of cannabis for medical purposes. He added that there was “no question” that Queenslanders supported the move.

The Health Minister also said that some doctors remained opposed to medical cannabis use, and for many that do it’s often considered a last resort. Dick is still determining what reporting requirements for doctors, if any, should be implemented under the new rules and whether the program’s results would be made public

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