A personal, homegrown cannabis plant, grown and pictured in the state of Oregon.

Trudeau’s Canada Legalization Plan Unveiled

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Prime Minister Justin Trudeau has unveiled his plan for fulfilling the campaign promise of adult-use cannabis legalization in Canada, the New York Times reports.

Under Trudeau’s legislation, which is expected to take effect approximately one year from now, cannabis cultivation and processing licenses will be issued by the federal government — similar to the country’s medical cannabis regime. Provinces, however, will determine how distribution of the plant will work within their borders. Both government-run stores and specially licensed dispensaries are predicted, but it will be left up to each province to decide.

The federal age requirement to purchase and consume cannabis will be set at 18, though local governments could raise that restriction on a province-by-province basis — as many have done with alcohol. Eligible adults will also be allowed up to four homegrown cannabis plants per household. However, growing and/or selling cannabis without a license would remain a serious criminal offense, according to Bill Blair, the lawmaker who was tasked with crafting the legislation by PM Trudeau last year.

“Criminal prohibition has failed to protect our kids and our communities,” Blair said.

According to a CBC report, the legalization plan is accompanied by another bill that strengthens measures preventing impaired driving. Lawmakers’ plan is to establish a reliable means of checking for cannabis impairment so that drivers and workers who are involved in accidents can be properly screened for intoxication.

Blair, a former Toronto police chief, also said that the legalization plan will not promote cannabis use in any way. Instead, “It [focuses] entirely on how to reduce the social and health harms associated [with] cannabis in its production, distribution and consumption,” he said during a news conference after the bills were introduced. “And that focus enables us to avoid many of the pitfalls that other jurisdictions have experienced, where the focus was primarily on maximizing revenue.”

The government may also consider restrictions that would limit the cannabis industry to only plain product packaging. Brendan Kennedy, President of the Canadian medical cannabis producer Tilray, said that his company will ask for the ability to develop brands through distinctive packaging. “Otherwise it will be a race to the bottom, as companies will compete only based on potency and price,” he told the Times.

Eight U.S. states and the District of Columbia have legalized cannabis for recreational use. Canada will be the second nation in the world to fully embrace adult-use legislation; Uruguay, the first nation to do so, is expected to begin sales of recreational cannabis this summer.

 

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The North Beach of Guam.

Guam Pulls Adult-Use Measure Amid Trump Administration Fears

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Due to federal uncertainty, Guam’s gubernatorial administration has pulled a bill that would have legalized adult cannabis possession and use in the U.S. territory from consideration, Pacific News Center reports. According to Eric Palacios, special assistant to Gov. Eddie Clavo, the move doesn’t necessarily mean the plan is dead but just temporarily on hold.

“We are suspending our efforts, and we are not terminating what we originally intended to do via the introduction of the bill,” Palacios said in the report. “And so, until we get a clearer picture of where things stand on the federal side, especially in light of the Attorney General’s pronouncement, we don’t feel it would be prudent moving forward.”

Palacios indicated that if the decision is made to permanently table the measure, lawmakers could consider introducing legislation to allow for home cultivation of medical cannabis – something Calvo would support.

According to the governor’s Communications Director Oyal Ngirairkl, the suspension “is meant to give lawmakers time to better understand the Trump administration’s still evolving stance on this and the result of actions other U.S. jurisdictions are taking.”

Under the legalization plan, sales taxes would have been used to help sustain Guam’s 2014 voter-approved medical cannabis regime, which has been stalled due to complications developing regulations.

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Two crystal-coated cannabis colas inside of a licensed cultivation center.

Treating Pediatric Epilepsy with Medical Cannabis: A Brief History

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There has been a relatively recent surge of interest in using medical cannabis to treat pediatric epilepsy, which has created a firestorm between U.S. lawmakers and parents and caregivers, who are demanding access for their children. But the promise of cannabis treatment for epilepsy is nothing new – in fact, using cannabis to treat pediatric epilepsy was first brought to light thousands of years ago. Reflecting on this history may help understand the situation we’ve ended up in today.

Medical cannabis in ancient times

Cannabis was first used for medicinal purposes in China around 2700 BCE. Following suit, people in the Middle East, India, and Egypt also began incorporating cannabis into medical remedies. However, an Arabic physician named al-Mayusi is first credited with advocating for the use of cannabis to treat epilepsy in the 11th century.

East to West

Sir William Brooke O’Shaughnessy, considered the founder of medicinal marijuana, brought cannabis to Europe in the 19th century following his studies in India. He published a case report of a 40-day-old infant who he successfully treated with a cannabis tincture.

Following O’Shaughnessy’s findings, Sir William Gowers and Sir John Russel Reynolds treated epilepsy patients with cannabis as an adjunctive treatment to bromide, an anticonvulsant used at the time.

A wild cannabis plant growing in an arid environment. Photo Credit: MarihuanayMedicina

Twentieth-century pharmaceuticals

By the 20th century, cannabis had made its way to North America, and, in the 1930s and 1940s, researchers began studying cannabis compounds and isolating them for pharmaceuticals. However, in 1970, the US Controlled Substance Act prohibited cannabis use and production in response to a troubled sociocultural climate. So while science was making breakthroughs in understanding the molecular structure of cannabis compounds, those who could potentially benefit from the drug were prohibited from taking it.

However, science persisted, and a few clinical trials were conducted to test the safety and efficacy of cannabis for epilepsy. Sidney Cohen published the first study on cannabis and epilepsy in 1976.

Where we stand today

In the 1990s, researchers discovered how cannabis receptors work in the brain, a tremendous advancement in our understanding of how cannabis can be used to treat epilepsy. Additional research also showed that cannabidiol (CBD) was effective in reducing seizures in animal models as well as in human clinical trials.

But now it’s 2017, nearly 30 thirty years later. As a fallout from the infamous Drug War, medical cannabis use remains prohibited in many U.S. stateseven in states where medical cannabis is legal, there are different rules and regulations that may limit access to the drug.

We are closer than ever to getting a clinically proven cannabis treatment approved by the FDA — which is its own potential controversy — but at least there are now several trials underway testing the effects of cannabis on pediatric epilepsy.

A doctor’s tools of the trade. Photo Credit: Andrew Malone

Fighting for their children

For some parents and caretakers, waiting a year or several years until drugs are FDA-approved is simply not good enough for their children who need help right now. Several anecdotal stories have emerged in the media in which parents and caretakers have traveled thousands of miles and risked legal consequences to obtain medical cannabis for their children.

A recent statement from the American Epilepsy Society (AES) offers the following for parents and caregivers: “The anecdotal reports of positive effects of the marijuana derivative CBD for some individuals with treatment-resistant epilepsy give reason for hope. However, we must remember that anecdotal reports alone are not sufficient to support treatment decisions…AES urges all people touched by epilepsy to consult with an epilepsy specialist and explore the many existing treatment options, so that they can make informed decisions with their specialist that weighs the risks and benefits of the different treatment options.”

Hopefully, in a year or two, we will realize a future of cannabis and pediatric epilepsy following the approval of new, cannabinoid-based therapies.

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The Vermont capitol building surrounded by snow on a sunny, winter day.

Vermont Cannabis Reforms Unlikely to Pass this Session

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Key lawmakers in Vermont’s Senate have indicated that they will not support a legalization plan being circulated in the House because it “reinforces a black market approach rather than… [a] more streamlined, regulated system,” Senate President Pro Tem Tim Ashe said in a Vermont Public Radio report.

The House plan, which was approved by the chamber’s Judiciary Committee but pulled by House leadership after it was clear it would not pass, would have legalized possession of up to 1 ounce of cannabis by adults 21-and-older, and allowed them to grow up to two mature and seven immature plants.

Democratic state Sen. Jeannette White, chairwoman of the Senate Committee on Government Operations and supporter of legalization, said she “can’t imagine” a scenario in which the Senate would pass the House proposal, adding that the measure “does nothing to decrease the black market.”

“It in fact encourages it, because now you’re going to be able to have a certain amount, or an increased amount, and it will be completely legal,” White said in the report. “There’s no place for you to get it, so it’s going to increase the underground market.”

According to the report, last year the Senate passed a measure that would have legalized a taxed and regulated recreational cannabis system in the state; however that bill failed in the House.

Ashe indicated that the Senate could choose to pass a similar tax-and-regulate bill before this session ends, which could become a priority when lawmakers return for the second half of the biennium in 2018.

“To be honest, I think people are tired of this conversation going on and on and on. And it’s something that we just need to do,” White said. “We’ve been talking about this forever and people out there are tired of us dragging out feet and not getting anything done.”

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The purples and greens of an indoor, professional cannabis grow operation.

Pennsylvania Releases Proposed MMJ Rules for Doctors

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Pennsylvania has issued the proposed rules for governing doctors under the state’s medical cannabis regime, which is expected to launch in 2018. The program covers 17 chronic conditions, allowing cannabis to be dispensed as pills, oils, a liquid that can be vaporized, and topicals, the Morning Call reports.

The rules require physicians to complete a four-hour training program on medical cannabis but they cannot advertise their ability to make recommendations. According to Becky Dansky, legislative counsel for the Marijuana Policy Project, those rules are designed to dissuade doctors from becoming “stereotypical pot docs” that will issue recommendations to almost anyone for a set price.

Doctors must also sign up to the state registry which Dansky said could limit participation in the program.

“Asking them to put their name on a list increases the odds of those doctors not participating,” she said in the report. “And when doctors don’t participate, patient access is hindered. A better option would have been to require registration of doctors who are submitting a significant number of recommendations per month.”

Other considerations include prohibiting doctors from prescribing cannabis to themselves or their family, or from holding any economic stake in medical cannabis cultivation or dispensary operations, and requiring doctors at dispensaries to notify the recommending physician if the patient has an adverse reaction. Recommending doctors must also be qualified to treat one of the 17 conditions allowed under the state regime.

The Department of Health is currently seeking comments on the proposals.

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A medicated chocolate product, pictured inside the Chalice Farms cannabis dispensary in Portland, Oregon.

Defining Your Cannabis Brand

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Recently I was vending at a popup sesh in Sacramento. One of the things I love about doing these is checking out the other vendors and all the innovative cannabis products coming out. During the evening someone gave me a bottle of something – a tincture or syrup. It sounded great while the guy told me about it, but by the next day I’d pretty much forgotten what he said.

So I pulled out the bottle. It was colorful and attractive, and on the back it told me how many calories, fat and grams of sugar were in it — but the rest of the writing was faded and in such a strange font it was hard to read. I finally figured out it was called Purple Panther Elixir. On the front, there was also some obscure print that said “Mike B” and “The Grim Reaper,”  neither of which seemed to be relevant to the product. Nowhere on the bottle could I find out what was in it or how much to take. It found a home on my kitchen shelf, and there it still sits.

One of the most common things I see among new businesses is confusion about their focus. Many entrepreneurs put a great deal of time into designing beautiful, bright labels, but neglect the lettering or else name it something so obscure that only a select niche of people will get the reference.

Now that cannabis is becoming mainstream, more and more people are curious about the benefits of this plant, but unlike the people who work in the industry, many are novices. Some things need to be spelled out:

  • What is it?
  • What is it for?
  • How much should I take?

Beautiful labels are nice, but your product isn’t a work of art that someone needs to ponder like a metaphor. Consumers want to know what they are getting and they want to know it pretty quickly.

Many brands are taking a more modern, streamlined approach to their packaging with a simple design and easily recognizable logo. It might be worthwhile to hire a graphic designer for this part. Sometimes we’re so close to our product that it’s hard to conceptualize a visual symbol, whereas an outsider can sometimes see more clearly what’s needed.

However you decide to approach your packaging, the number one rule should be pretty standard: it needs to be clear and concise so your customers know what they’re getting — and it needs to be compelling enough that they want it. Take some time to truly define your brand: identify your ideal customer, and don’t try to do too much. Keeping things simple is often the most effective way.

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A budding, young cannabis plant in someone's indoor grow operation.

Cannabis Prohibitionist Rep. Marino Named Trump Drug Czar

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Pennsylvania Rep. Tom Marino has been tabbed to serve as drug czar by the Trump Administration, according to a CBS News report. The appointment will see Marino resign from Congress and head up the Office of National Drug Policy Control advising President Donald Trump on drug policy issues.

According to a Washington Post report, Marino is viewed as a hardliner on drug issues, and once indicated that he’d like to see nonviolent drug offenders put in a “hospital-slash-prison.”  MassRoots reports that since 2011 Marino has voted three times against amendments to both prohibit the Department of Justice from interfering with state medical cannabis laws and allowing military veterans to obtain medical cannabis recommendations from Department of Veterans Affairs doctors. Marino also voted against a law to protect CBD programs from federal crackdowns and has at least twice opposed industrial hemp legislation.

“One treatment option I have advocated for years would be placing nondealer, nonviolent drug abusers in a secured hospital-type setting under the constant care of health professionals,” he wrote in May 2016 testimony to the House Ways and Means Committee. “Once the person agrees to plead guilty to possession, he or she will be placed in an intensive treatment program until experts determine that they should be released under intense supervision. If this is accomplished, then the charges are dropped against that person. The charges are only filed to have an incentive for that person to enter the hospital-slash-prison, if you want to call it.”

In an October interview with the Sun-Gazette, Marino indicated that he is “a states’ rights guy” but would only agree to consider legalizing cannabis if there were “a really in-depth medical scientific study.”

“If it does help people one way or another, then produce it in pill form … You can’t smoke it for this, but you take a pill,” he said. “But don’t make an excuse because you want to smoke marijuana. Look what’s happening to states and cities who are legalizing it. They are running into a lot of problems.”

As drug czar, Marino will have less influence than his “Just Say No” counterpart, Attorney General Jeff Sessions; however, the office over which he now presides is responsible for coordinating drug control strategy and federal government funding.

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The 2nd Annual 420 Games in Los Angeles: Review & Photos

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The growing number of cannabis users in California continues to bring about an abundance of new and diverse consumers who span across all walks of life. Such was certainly the case at the 2nd Annual 420 Games at the Santa Monica Pier. On April 2nd, 2017, participants gathered together for a fun-fueled day of sun, sand, exercise, and amazing meds.

Registration began at 7:30 a.m. as runners, walkers, bike enthusiasts, rollerbladers, and skateboarders entered the northern lot and prepared for the 4.2-mile route across the sun-filled beachscape. Before things began, guests were welcome to partake in a warm-up yoga session (hosted by FlavRx) to loosen up for the impending course. 9 a.m. marked the time for people to gather at the starting line. A few selfies and stretches later, along with some encouraging words by the 420 Games Lead Coordinator Jim McAlpine, and all were on the move.

From the pier, it was off to the Boardwalk of Venice Beach where participants could recuperate, rehydrate, and prepare for the journey back. Once back at the pier, event goers were treated to a wide mix of over a hundred vendors and exhibitors providing everything from infused topical creams, CBD infusions, and a plethora of samplings. To name just a few: Endohack Labs, Jambo Superfoods, Swerve Confections, Be Trū Organics, THC Design, Dro-tein Cannabis Powder, Lola Lola, Anakatrina’s Edibles, Sensi Chew, Neuro Armour, CannaKids, Buds And Roses Collective, MedMen, Venice Relief, Advanced Nutrients — and many more.

Ex-NFL players Nate Jackson, Eben Britton, Boo Williams, and Kyle Turley visited to share their insights on cannabis in sports activities, and the BMX Pros Trick Team kept the crowd entertained with high-flying feats. Craft beer samplings were also made available to drink ticket holders from Lagunitas Beer Tasting.

According to event organizer Jim McAlpine,

“We’re absolutely thrilled to be here again. The 2nd LA 420 Games has exceeded our expectations and increased exponentially from last year. The sheer number of positive people who’ve attended makes it all worthwhile. We’re all extremely thankful to the volunteers, guests, and contributors who came together to change the face of cannabis and make this event possible.”

The official event drew to a close at 2pm; however, what’s a great event without a great after party?

Quality Concentrates hosted the event, where party-goers were able to indulge in live music, free samplings, and more good vibes. Exhibitors at the after party included: Papa & Barkley, Hotnife vape cartridges, Grandma’s Goodies Delivery, hmbldt, Xtractology, Betty Khronic, Med-ePen, Whoopi & Maya, Honey Vape, The Cannabis Method Delivery, and Om Edibles.

As laws change and the general perception of cannabis progresses toward wider acceptance, we’ll see the stigma that has impeded the industry deteriorate more. Long gone are the days of the stereotypical stoner — today’s cannabis users (and products) are more sophisticated than ever.

A big thank you to all who made the 2nd Annual 420 Games at Santa Monica Pier such an amazing event. The 420 Games will be conducting additional events as they tour throughout the country. For more information on the 420 Games and any of their upcoming events, visit 420games.org.

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420 Stock: Simplifying the Cannabis Industry’s Ancillary Needs

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420stock.com is an online platform dedicated to providing all of the ancillary products needed to help a cannabis dispensary run smoothly.

420 Stock offers a wide array of product packaging options — including storage and packaging for cannabis flower, concentrates, tinctures, and pre-roll products — as well as a host of other cannabis-related items, such as lighters, grinders, digital scales, humidity packs, vaporizer cartridges, and more.

A mixed sampling of the goods and products available at 420stock.com.

Entrepreneur Casey Knott originally dabbled in the cannabis space by founding a Sacramento medical cannabis delivery service in 2014, but the apparent need for a simplified dispensary supplies distributor eventually steered Knott down a different path and he founded 420stock.com in October 2016.

“Hands down, the most rewarding part of my work at 420 Stock is meeting and networking with like-minded entrepreneurs in the industry,” said Knott. “We have received a significant response from dispensaries and business owners locally here in Northern California; we have plans to expand to other markets and are looking to take on investors in our first series of venture capital financing. ”

420Stock’s CEO and founder Casey Knott loads a box at the company’s Sacramento warehouse location.

Many have characterized the cannabis reform movement to the California Gold Rush of the 1800s — in turn, Knott dubs his company the “pick and shovel sellers” of the modern ‘Green Rush.’ 420 Stock directly manufactures many of the products they retail, which gives the company an advantage over many other dispensary supplies distributors.

“Our aim is to be the low-price leader, and get products in people’s hands cheaper than anyone else,” Knott said.

But, while costs are a key consideration for the team at 420stock.com, the quality — and variety — of products are not sacrificed to keep prices low. Furthermore, 420 Stock can ship from its Sacramento, California warehouse location to any state in the U.S. and offers free shipping on orders costing $250 or more.

Visit 420stock.com to browse through the company’s many dispensary supply solutions and find exactly what you’re looking for, or to inquire further you can call 1-844-420-7862 during normal business hours for more information.

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Looking out over the suburbs of Santa Fe, New Mexico.

Santa Fe, New Mexico Judge Allows Dispensary to Stay Open Through 4/20 Despite DOH Action

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A Santa Fe, New Mexico judge has overruled a New Mexico Department of Health sanction against a medical cannabis dispensary after the department ordered the shop to close because it displayed a cannabis plant at the state fair in violation of rules requiring cannabis to “be housed on secured grounds,” the Albuquerque Journal reports.

First Judicial District Court Judge David Thompson ruled that the Health Department’s decision to impose a five-day suspension on Ultra Health over the display of “Dorothy” was “excessive and without much support in law or regulation”; although he said the company’s decision to display the seedling was “at the very best misguided.”

“The seedling should be treated as medicine and not an item for show and tell,” Thompson wrote in his order.

Duke Rodriguez, CEO of Ultra Health, said the Health Department order would have forced his shop to close from April 17-21 which coincides with “four-twenty” and would have cost him $200,000 in lost revenues.

“We’re very happy that the judge ordered this stay,” Rodriguez said in the report. “Those are literally the five busiest days of the year.”

Department of Health spokesman Paul Rhien indicated that the stay is only temporary until a full hearing is scheduled, and called the suspension “appropriate action for discipline based on the rules governing the program.”

Ultra Health was also fined $100. The full hearing has not yet been scheduled.

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Inside of a cannabis cultivation site in Washington state.

Cannabis Industry Compliance Platform Wurk Raises Another $2M in Seed Funding

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Wurk, a Denver, Colorado-based workforce compliance platform for the cannabis industry, has raised $2 million as part of a seed fund round to hire executives and expand its operations in states with newly legal cannabis markets. The company has now raised a total of $3 million during the round, led by Poseidon Asset Management, with participation from Phyto Partners, Salveo Capital, and Arcview Investor Network.

The firm assists cannabis industry operators in navigating state and local regulations, providing human resources and payroll infrastructure, and tax solutions.

Keegan Patterson, Wurk CEO, said the funding gives the company the ability to scale their business in a way that helps them “keep up with the demands of this evolving and growing marketplace.”

“With eight new markets emerging in November, including the passing of Prop 64 in California and the new administration’s focus on compliance, we knew we would need to scale the business quicker to meet this demand,” Patterson said in a press release.

Emily Paxhia, managing partner at Poseidon Asset Management, said they have seen “positive responses from operators” who migrate to the Wurk platform.

“Closing this recent raise provides them with the capital to grow their business and market share through strategic hires, expanding on their already strong team,” she said in a statement. “Additionally, their plans to scale and to reach more companies will make for a stronger industry across the board.”

As part of the expansion, Wurk has hired Matt Kelly as Chief Financial Officer and Jay Meyers as Chief Revenue Officer.

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Detroit, Michigan Releases Map Detailing Dispensary Statuses

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The city of Detroit, Michigan has released an interactive map detailing the status of more than 280 medical cannabis dispensaries in the city, including previous enforcement, current application status, and whether the dispensary is approved to operate in the city.

According to the map, the city has shuttered 161 dispensaries in the year since ordinances regulating dispensaries passed by the City Council took effect; 59 are currently in the approval process and not operational, 61 are in the approval process and operating, two are in the enforcement process, while just three have been approved by the Medical Marijuana Control Commission.

David Bell, director of the Building, Safety, Engineering & Environmental Department said the map will be updated by 4 p.m. every Monday and allows patients to report any issues with a dispensary and stay up-to-date on the status of a medical cannabis business.

“We continue to receive a lot of community feedback about the number of dispensaries across the city and we are enforcing the ordinance, which we think is fair and equitable,” Bell said in a Detroit Free Press report.

The city’s zoning rules bar medical cannabis cultivation, processing, manufacturing, and sale 1,000 feet from schools, child care centers, outdoor recreation facilities, and arcades.

Officials expect about 50 dispensaries to be open city-wide by the time the licensing process is complete.

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A legal, commercial cannabis grow in Washington state,

Maryland House Fails to Pass Amended Bill Adding 5 Cultivation Licenses

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A plan to add five medical cannabis cultivation licenses in Maryland has been defeated in the House of Delegates after Republican lawmakers delayed the vote right up until midnight – which officially marked the end of the legislative session, the Washington Post reports. The measure was pushed by Legislative Black Caucus chairwoman Del. Cheryl Glenn as part of her efforts to create equity in the state’s medical cannabis licensing program.

The bill was initially passed last week, but was sent back to lawmakers for amendments. The revised bill required another vote by the full House, which it did not receive.

Glenn has called on legislative leaders to hold a special one-day session specifically to consider the measure. Alexandra Hughes, chief of staff for Democratic House Speaker Michael Busch, said the speaker was not trying to undermine the measure; rather he was trying to reach a compromise.

“It’s not important to me what the speaker’s reasons or justifications were,” Glenn said in the report. “What is important is to understand where this leaves the black community: It leaves us outside of the medical cannabis industry, and that is absolutely unacceptable.”

The legislation would have put an end to lawsuits against the Maryland Medical Cannabis Commission by minority-owned medical cannabis companies who claim the commission didn’t follow the letter of the law which requires regulators to “actively seek and achieve” racial and ethnic diversity in the industry.

A group representing the 15 companies approved for preliminary cultivation licenses applauded the legislation’s defeat.

Rick Abbruzzese, a spokesman for the Maryland Wholesale Medical Cannabis Trade Association, said the decision allows the companies “to move forward.” They argued that two of the approved companies are minority-owned and another is led by women.

“Our members never lost focus on the primary goal: getting medical cannabis to Maryland patients, hundreds of whom stepped up in Annapolis to make their voices heard,” he said in the report.

The legislation would have also dissolved the MMCC, which chairman Paul Davies said would have resulted “in a delay in the implementation of the program.”

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The Oregon Capitol Building and Capitol Mall in downtown Salem, Oregon.

Oregon Legislature Passes Bill to Protect Recreational Customers’ Privacy

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A measure aimed at protecting cannabis consumers from federal prosecution has passed the Oregon legislature and has been sent to Gov. Kate Brown for her signature, according to a report from the Associated Press. The measure would end the practice by recreational dispensaries of keeping customer information often used for marketing and customer service purposes.

According to the report, the data includes names, birthdates, and addresses of customers which is obtained from identification presented when the customer enters the establishment to prove they are of legal age to purchase cannabis products. The information is often collected without the customers’ knowledge or consent.

“Given the immediate privacy issues … this is a good bill protecting the privacy of Oregonians choosing to purchase marijuana,” Republican state Rep. Carl Wilson, one of the bill’s sponsors, said in the report.

In Alaska, Washington, and Colorado – which have adult-use statutes – the practice of keeping customer information is already banned. Once signed by the governor, the law requires that Oregon dispensaries destroy the customer data currently on file within 30 days.

The bill’s provisions do not apply to medical cannabis patients or dispensaries and customers could still choose to opt-in to promotional lists for coupons or birthday discounts.

Brown, a Democrat, is expected to sign the legislation.

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Matured cannabis plants inside of an indoor grow operation in Washington state.

Colorado Lawmakers Pass Bill to Outlaw Cooperative Cannabis Grows

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Colorado’s legislature has passed another bill as part of their efforts to reign in the state’s so-called gray market, the Associated Press reports. If signed by the governor, the measure would outlaw cannabis cultivation co-ops, which allow people to grow plants for others under the state’s adult-use laws. There are no state estimates about how many collective grows are happening in Colorado.

Under current state law – a constitutional amendment – people over 21 are allowed to grow their own cannabis or assist others, allowing a single farmer to cultivate crops for an unlimited number of people, which allows the growers to avoid taxes that can reach as high as 30 percent in some jurisdictions.

The bill also earmarks $6 million a year from the marijuana tax fund for law enforcement in order to help them investigate illegal grows.

Gov. John Hickenlooper’s Office indicated that he would sign another bill this week that limits the number of cannabis plants allowed to be grown by an individual from 99 to 12. That legislation would force medical cannabis cardholders allowed to grow more than 12 plants to grow in locations zoned for agricultural or commercial purposes, or buy from licensed dispensaries.

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

New Mexico Governor Vetoes MMJ Expansion Bill

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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.”

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The wide fan of a cannabis sativa plant's leaf.

Hemp Oil Regulations Are More Complicated Than You Might Think

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Legal cannabis sales in the U.S. last year reached $6.7 billion, a growth of 30 percent, according to an ArcView Group market research report outlined by the International Business Times. The growth is faster than the dot-com boom of 2000.

However, most of those jumping in are doing so without first seeking competent cannabis counsel, without understanding the cannabis laws, without understanding the FDA laws, without understanding their State’s Health and Food Safety Laws and blindly following the industry’s norm as if some actually knew what they were doing or talking about. You might not realize it immediately, but you may have jumped into a tar pit disguised as a beautiful blue swimming hole. With any good business must first come a great lawyer.

Did you know that you are responsible for verifying that the CBD or the hemp oil product being purchased comes from a licensed source? Yes, the supplier must be properly licensed through their state’s department of agriculture or cannabis department, but it doesn’t end there. Next, you must ascertain whether or not the state where this supplier is registered allows for the commercial sale and transport of the product being sold.

Don’t be fooled: many states do not permit this and you shouldn’t take a supplier’s word as gospel, not when the penalties can be criminal. It is not enough if you or someone you know have simply received hemp products, as ignorance to the law is not an exception. You are also responsible for knowing and obtaining a certified lab report as to the product’s content and THC percentage levels; you must also know if the state in question allows for any percentage of THC within the hemp product you are selling or receiving. There are differences between what the federal law permits and what the many varying state narcotics laws allow. For instance, the State of Texas has a zero tolerance for THC — no level is permissible, not even 0.001%. You don’t want to be confused on issues concerning controlled substances.

If you are purchasing CBD or hemp oil in food products, did you know that you should verify that the manufacturer is either properly registered with the FDA or exempt? That’s per 21 U.S.C. §350d, the Registration of Food Facilities (a) Registration.

Meanwhile, as per food and drug definitions under 21 U.S.C. § 321(f):

The term “food” means (1) articles used for food or drink for man or other animals, (2) chewing gum, and (3) articles used for components of any such article. (g)(1) The term “drug” means (A) articles recognized in the official United States Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (B) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (C) articles (other than food) intended to affect the structure or any function of the body of man or other animals; and (D) articles intended for use as a component of any article specified in clause (A), (B), or (C).

In the current market, CBD and certain hemp oils may qualify within 21 U.S.C. § 321(f) & (g) and unless you are in a properly situated chain of custody you might be selling “adulterated” goods.

§342, regarding “adulterated food,” applies to much more than tampered-with, poisonous or manipulated foods. Instances such as re-packaging, open containers, storage, food additives, food colors, and even non-nutritional additives apply. If the chain of custody from supply to packaging is not properly lined up with licenses, permits, and certificates, the product you just bought to re-sell may be deemed lawfully adulterated — and you, a cog in the impermissible wheel.

A collection of freshly harvested hemp seeds. Photo Credit: Esteban Lopez

Then, there are issues with the labeling of products. 21 U.S.C. § 321(k) discusses product labeling. This section discusses the laws for not only what must go on the label but what cannot be omitted, misrepresented, misleading or misbranded. Are you selling a product to be ingested by a person or animal and failing to list all of the warnings, precautions, or suggest calling 911 if adverse effects appear? Are you warning people not to ingest if taking with grapefruit or if they have certain medical conditions? Are you informing about dosages and listing product ingredients? Are you failing to inform people that this product contains — even trace amounts — of THC or is derived from a product containing THC?

The list goes on and on.

The FDA has further determined that products containing CBD cannot be sold or misrepresented as a dietary supplement and are excluded from the dietary supplement definition in the Federal Food, Drug, and Cosmetic Act. For more information, see the September 30, 2015 Q&A, “FDA and Marijuana: Questions and Answers.

The FDA has also ruled that claims of health benefits, medicine, medical effects cannot be labeled or advertised and in fact a disclaimer must be applied on all packaging, marketing, and advertisements.

Putting yourself out in the industry also means that you should look into the issues of insurance, product liability, legal compliance, banking, and merchant services. As was recently witnessed in Oregon and California, there might be issues with third-party vendors selling product that contains improper pesticides; the liability can be civilly shared within all cogs in the wheel.

In conclusion, it’s enlightening that so many ganjapreneurs are eager and entering the industry. However, with this opportunity comes real and legal responsibilities. Failure to retain proper and knowledgeable legal counsel might cost you more than what you bargained for. Stay safe by compliance and make sure you have first quality representation.

End


Inside of the Montana State Legislature in Helena, Montana.

Montana House Passes Amendments to Voter-Backed MMJ Law

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Montana’s House Taxation Committee added 20 amendments to a medical cannabis bill before it passed the chamber and moved to the Senate, including changes to the taxation structure, testing provisions, and residency requirements, the Bozeman Daily Chronicle reports. The amendments to SB.333, which affect the initiative approved by voters last November, passed the committee 14-6.

The committee changed language that would have imposed a 4 percent tax on gross receipts in 2018 and 2 percent in 2019 for medical cannabis providers with a plan that would see providers charged a $25 fee per cardholder or $100 per year. According to House Taxation Committee Chairman Jeff Essman, the state could adjust that fee depending on the need to cover regulation costs and maintain a reserve fund.

Democratic Rep. Mary Ann Dunwell said the change creates “inequity” in the industry compared to more traditional businesses.

“We don’t require CVS or any other pharmacy to pay a fee per customer so there’s inequity there,” she said in the report. “These are patients that we’re serving. They’re not head of cattle, for example, where a stockgrower is charged a per-capita fee for each head of cattle.”

Another change would allow smaller medical cannabis providers to forgo laboratory testing for up to three years, which Rep. Greg Hertz said would prevent “an undue burden on small providers in small communities.” Larger providers would be required to test their products as soon as the new regime is codified.

The residency changes require that providers be residents of Montana for three years; previous versions of the bill would have required residency requirements of either one or four years. The provision sunsets on July 1, 2020.

End


Spark the Conversation: Jerred Kiloh, The Higher Path

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Jerred Kiloh is president of the United Cannabis Business Association and owner of The Higher Path, an award-winning medical cannabis dispensary in Los Angeles. In this episode of the Spark the Conversation podcast, host Bianca Green interviews Jerred about creating one of the region’s best-known and most-loved dispensaries.

In the following interview, Jerred shares his own strategies for running a dispensary, which include an emphasis on employee fulfillment & retention, as well as community involvement and making sure that patients feel safe and comfortable during their visit. The two discuss best business practices for the cannabis industry — and according to Jerred, you have to choose the cannabis industry for more than just monetary reasons if you want to truly be successful.

You can listen to the podcast below, or scroll 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 am your host, Bianca Green. Thank you so much for tuning in and listening to some people drop knowledge here today. I’ve got Jerred from the Higher Path Collective in Studio City, California. Jerred is the UCBA trade Association president, as well as the owner of the Higher Path. The UCBA is a trade association that is a group of pre-ICO collectives in Los Angeles working together to bring awareness and increase the knowledge of the cannabis industry to policymakers and residents throughout California.

Jerred was recently introduced to me by a friend of mine that I know from high school, and came on board to be a sponsor on our bus tour in November, and it’s been really nice to get to know Jerred, because not only is he talking with us today about the trials and tribulations of being a business owner, and owning a dispensary in California, Southern California specifically, but the path that he, as the president of the Association, is looking to set forth for the future of cannabis industry professionals, and why he staffs his staff the way he does. It’s a very interesting conversation that we have, and thanks for tuning in.

Hi, this is Bianca. I’m here with Jerred at the Higher Path in Sherman Oaks today. Thank you so much for being here.

Jerred Kiloh: I really appreciate it. Thank you, Bianca, I appreciate the invitation.

Bianca Green: It’s crazy how many laws are coming into effect right now, and people coming out of the shadows and into the light is the most important thing. Even spending time up in the Emerald Triangle at the beginning of this tour, everyone’s like, I can tell that there is a feeling like we came to the line too late, and now we’re fighting because we don’t like this initiative, and I hear that. Even when they had the opportunity to fight all year against it and be very vocal about it, nobody has done that.

Jerred Kiloh: Yeah. Right now it’s like, yes, nothing’s going to be perfect ever. There’s too much special interests that go into every initiative that ever gets written, because you don’t write it in a vacuum. There’s people who are trying to get their own self interests as part of that, it’s like you can’t get away from it, and someone’s going to be harmed by a law. It’s not like, oh, a law happens and everyone’s happy. That’s not really a law. That’s a free-for-all.

Yeah, it’s sad, but this is great for getting people out of prison. If nothing else, like who cares about the rest of it then. We’ll work through the rest of it. I think the problem is is a lot of people who have been in this industry this long are really trying to protect what they’ve built, but when it comes down to patient access and what’s best for the community, sometimes we have to go, “Well, this is what every business goes through. We go through these ebbs and flows, we go through different regulations, and we have to adapt.”

As growers who have been here and done this for this long, we’re going to have to adapt. That’s what every business goes through. And it’s sad, because as a cultivator, I know that my job is going to be way more difficult. It’s definitely going to increase costs, and those costs are going to be passed on to the patient. That’s the worst part of this, but hopefully we find a middle ground and have common profit margins.

Bianca Green: Yeah, I was just going to say, do you think it’ll come down in the profit margins, just being more like a regular commodity like a profit margin on a shoe? Because right now they’re big margins.

Jerred Kiloh: Not here. With the amount of taxes we have, it’s like even though we see like 200 patients a day, we still are at a breakeven. With the amount of taxes, and I have 26 employees, and the reason why I have 26 employees is so that I can give you what you need in the way of social media, and attention. Someone’s there for your attention. A lot of other collectives don’t do that. They save money and that, but I think they’re missing out on, how are they going to do outreach? That’s expensive. I have an extra, probably, 12 employees that go above and beyond just the inner workings of the business. It really goes into, how do I expand recognition of this industry, and how do I put a good foot forward for the rest of the people that kinda see, this is an example of how to run a business.

Bianca Green: How did you get into this business table?

Jerred Kiloh: Really just where it squirts water on the roots, and it was like one of the first hydroponic style of growing. He just gave me the table, and gave me the light, and I cleared some space underneath my stairs in San Francisco, and through one light in and one little table, and then started building cabinets so I could do cloning, and do a little bit of vegging. I did it for a little while, and then I saw that it paid my rent, and I was like, “Oh, this is kind of nice.” Then I was like, “Wow, well, what else could I do?” As I slowly expanded, I found a collective that would take my product in San Francisco, and so we had a really good relationship, but I only was producing like one and a half pounds, or two pounds every three months.

That’s pretty much how I got started, and I think the main part was I always told myself, it’s like, I’m too educated to be a drug dealer. If I can’t do this legal, I will do something else, because I really need to forge really good policy, and I need to feel like I am providing for my family, my friends, and my employees. Not in a risky sort of way, but in a way that they feel empowered. That was a really big part of how I got started was, how do I empower this industry legally as much as I can? Yeah, it took that first illegal couple of pounds that I grew, which since I gave it to a dispensary, I guess it really wasn’t illegal, but it took those first couple. Then it expands from there. As I expanded, then I found other dispensaries. There was one dispensary in particular, the Green Cross, that now I’ve been working with and been a part of for over 14 years.

Bianca Green: And that’s up in the Bay Area?

Jerred Kiloh: Yeah.

Bianca Green: Yeah.

Jerred Kiloh: Did a lot with project management, did a lot with business structure, did a lot with acquisition of property, and legal, and Kevin, the president, almost died when it came to, he was immersed in the business. He lived in the dispensary. So much so that he was a part of every aspect of it. It was really just, every employee, everything that came in and out of that place, he just had his fingers in everything. He was so engrossed in it that it really showed, he showed me how much you really can jump into an industry, and give it all of your heart. I think for me, it’s like I do a lot of other industries other than marijuana, so I’m fairly diversified. I really do like to see people who are strict in what their goals and dreams are, and really shoot for those.

Bianca Green: How did you come down to Los Angeles?

Jerred Kiloh: I had some friends about nine years ago who were opening a dispensary, and so I helped fund the opening of the dispensary, supply them with product. Since I had really good connections up north because of the other collective I’ve been running, and all of a lot of my friends up there were growers. It was my way of giving my friends who were growers access to distribution. So for nine years I’d been in L.A. but the ebb and flow of L.A. has been like, okay, you start a collective, they change the laws, you have to close your collective, you lose all your patient base, and you have to start over. It got to be that roller coaster was so expensive that running a dispensary in LA became a net zero. That net zero became harder and harder as someone who wanted to provide for patients. Been here for nine years, but when prop D was coming around, I started coming back, because I finally started to see a real-

Bianca Green: Talk a little bit about prop D. Tell us what prop D was.

Jerred Kiloh: Prop D was the fifth amendment that was brought to Los Angeles in a way to regulate this industry. It was three years ago, and it was put on the voter ballot. It was the first proposition that I think that the state had voted on, have as a proposition as a municipality to regulate the industry. Prop D gave a limited immunity, which means you have immunity from prosecution locally. Wasn’t giving a license or a permit, but it was saying, “Well, license or permit doesn’t really do anything anyway.” They were trying to get underneath the federal radar of giving a permit to someone to grow a schedule one narcotic. That was the negotiation we all went through in Los Angeles, but that gave 134 dispensaries who had followed all the four previous laws that had been enacted, the right to continue to operate, kind of in a grandfather clause. Those 135 now have been operated since-

Bianca Green: Is there a timeline that they had to have been operating for them to get it?

Jerred Kiloh: Yeah. Since 2007 was really when it started, so if you had been in operations 2007, filled out all the paperwork, paid all of your taxes, and did all the things the city had asked you to do for those seven, or I guess it was six years at that point. If you were a good player for six years, then you were given the right to be prop D. That’s where the pre-ICO, which is an intern control ordinance, which says, “We are going to create a law, but until we create a law, we’re going to give this ordinance that gives you some room to operate as a dispensary until our law is enacted,” and Prop D was negotiated out.

Because there was prop E, F, and D that went on the ballot all in that same year, and prop D was the one the city Council had pushed forward, that’s the one that ended up winning over the course of … I think it got 63% of the vote, which is more than the mayor at the time.

Bianca Green: Whoa.

Jerred Kiloh: It really was at this high acceptance rate to have this limited number, because there had been so many illegal shops, or shops operating outside of any good business practices.

Bianca Green: When did that happen? I remember a bunch of shops opening, and there was, up in press release, about there were more Starbucks, I mean more dispensaries in Los Angeles than Starbucks. What do you think prompted that?

Jerred Kiloh: Well, because there was no enforcement. Because the laws were somewhat murky. Because it was hard to tell where they were, were they legal, were they not? How long had they been there? Honestly, it does come down to the police having an incentive when it comes to asset forfeiture, which is also part of it. It’s like, if you can quasi regulate what is quasi legal, then please have the opportunity to have asset forfeitures, and that really does help their budget. They wanted to enforce it in a systematic way that kept enough shops open, but was closing enough shops to continue to, I guess, help their bottom line.

That’s just how asset forfeitures work. In California, we really do need to take away that incentive of asset forfeitures. With close to 1200 shops that were open at that time, yeah, they had to be reined in. That’s where prop D came in. It was an outcry from the city Council and from neighborhoods that are like, “Well, they’re just popping up everywhere. Who’s regulating this?” It’s just the regulations were really murky, prop D was an effort to try to make it a little more clear.

Bianca Green: Yeah, there was a time where, even on the Venice Boardwalk you could go and just, there was a lot of dispensaries that were open, and doctors that had come up that didn’t seem like very legitimate businesses. I think it gave a bad rap to what the medical marijuana industry was trying to do for a while here in Los Angeles.

Jerred Kiloh: Oh, yeah. To hide behind the guise of medicine was what brought the illegitimate side of this industry, and why we’re so looked at as like, okay, these are just profiteering people. Yeah, it tainted the movement when it really was to get patients access. In a lot of ways, patients are the people who have insomnia who can’t sleep and use it. There’s plenty of people who drink two glasses of wine to go to bed, like who’s to say it’s not a patient to take a small hit of marijuana to go to sleep too? I think that’s where a lot of these pot doctors are saying, “Well, if it works for you, how am I supposed to tell you to do something different?”

I think that’s where everyone kind of was a patient, and that got expanded into, now, if everyone’s a patient, well then, I need it because I want to go watch TV. It’s more fun to watch TV high. It’s like, well, okay it degraded from there, but I think it really was a difficult time to see that many doctors move into the area, just pass out prescriptions without any physical, or any sort of psychological evaluation to see how they would be able to accept a psychoactive drug.

Bianca Green: I feel like the people, the consumers started to become more advocates, and started explaining their own personal experiences, which really helped. People started coming out that they replaced a lot of pharmaceuticals with cannabis, and even realizing that made a lot of the, quote unquote, recreational users look at their cannabis consumption as more of a wellness component to their lifestyle. What do you think the future is? Do you think medical will stay in place, and recreational, and they’ll be separate? Or do you think that it’ll fall under more of a wellness product?

Jerred Kiloh: I think it will be more of a wellness product. As we do more studies, and do double-blind tests, and go through what, I guess, is the established way of deciding FDA approval, and the way of establishing how this works for different diseases, we will be able to target diseases, but there’ll still be that aspect of, can I really calm down with this? Is this really a way for me to reduce stress, reduce anxiety? That is a wellness side of things. You look at CBD, CBD’s really do help the homeostasis inside your body. It is a wellness drug at this point. It will be a huge overlap, because wellness does help your health.

They’re so intertwined that to separate them will be difficult, but I think as we do separate them so that we can target certain diseases, get ratios that are very specific, and make people aware that these are the prescribed ways of taking this for this particular disease. I think that is going to be one aspect of the industry, and the rest of the industry will really be about what works well for your body, how do you feel after you’re done using it? How much better are you now in health and wellness by taking it? You can, as an individual, and hopefully in concert with your primary care physician, find a true way of using the cannabis for disease prevention, and also using it for the wellness side.

Bianca Green: Where do you see your business going under that theme? Because right now the collectives are for patients. Once and if, I should say if, legalization happens this year, how does that change the dispensing of it?

Jerred Kiloh: We really do emphasize the wellness of it. When I started this collective, I felt like there was an underserved market of females who felt a little bit sketchy going into some of the dispensaries, and also the openness that was needed for an older demographic to feel comfortable inside of this community. When I started this, my initial patient base was 20% female. Now we’re to 60%, because I catered to that demographic trying to lead a safe, educated place where other females were there who were caregivers.

It’s not just females, it’s the feminine side of anybody’s personality that wants to be that caregiver and give, and when you give, the reception that you get in return, like the reward that you get in return for helping someone is also part of the benefit of working at a collective that really does things on a medical base. Because people walk in and go, “I have not felt this good in 20 years. I’ve dealt with these addictions to opiates for this long, it’s the first time I’ve been able to kick this habit.” Or, “Wow, this is my last resort. I’ve gone through $300,000 in debt to get rid of my cancer, and now this is my last resort. What can you do for me?” Those are the rewards we have here, and I really don’t think that I want to change that model, because those rewards are far better than someone who come in here and go, “Wow, I got so high last night. That was great.” That’s exciting for a second.

Bianca Green: Then make everything that you do that challenges you to create a business here, and be able to dispense a product probably worth it.

Jerred Kiloh: Yeah. It gives the people who work here a purpose. That purpose is greater than just themselves. Sometimes when you’re just a bartender, it’s great. You get this interpersonal connection. Let me get rid of this …

Bianca Green: Yeah, no, I get that. Sometimes when I’m volunteering, even on this tour, it’s like, “Ugh.” Then you just think about the patients, and the people that it’s helping, and the more access that people have to the plant, I feel, the better.

Jerred Kiloh: Yeah. Right now, access to the plant is definitely here. It’s access to the education, and access to someone who can personalize that education to what your individual needs are, and that’s what we do different here. There is a reason why I have an extra three or four employees here every day than I really need to operate this shop. It’s so that I can give you an hour of my time as an individual so that I can ask, “What are your needs? What are your symptoms? Have you tried anything in this industry before? Here’s what we can try to get you on a foundation, and here’s what we’re trying to build towards.” That education changes the way not only they view this product, but the way that they view their own wellness, and how they need to take responsibility for how they’re going to be healthy.

Because here is a foundation for you to build on, I need your input, I need your temperament, what you’re feeling about it. I need all of that so I can build a better product for you individually. I think the reason why we were voted best in Los Angeles for 2016 was because of that very personal connection that we have. We know people’s names. Not just because we ask them, but it’s because we ask them what their name is, we ask them what their ailments are, and because we really want to help them, we take that in as a memory. It’s like we remember who you are and why you were here. That’s the true difference. That’s why I have the same six employees that I started with.

My original six employees are still here after 3 ½ years. In an industry that has the kind of turnover that this does, it feels really good for me to be an owner, and someone who’s managed these people to feel like they are giving back to the community in such a way that the reward system is so much greater than just money. When people go home and tell their roommates, and tell their friends what they did today, that changes how you view coming to work. People come to work happy, and they leave happy. That is a totally different way of seeing work. When the rewards are here at work, it changes the way people view what is considered work. They get paid to come here and help people, and that is something that’s really rewarding.

Bianca Green: That’s really a great foundation to have a business. Tell me, what advice would you give some of the Ganjapreneurs trying to get into the industry?

Jerred Kiloh: I think what it is is it’s a fairly saturated market right now. It’s going to take capital to get into this market now, because permitting is going to be expensive. The amount of inventory you need is expensive. Capital is going to be a big part of it. If you do know how to run a regular business that does give you some advantages, but it doesn’t tell you how to provide for patients. You need to go and get educated about the plant, educated about diseases, educated about that, because that is truly where you can continue to be an outlier in the industry, because the industry is growing towards pure education, pure medicine, pure stuff, that pure idea of, how do we help people? I still think there’s a lot of room for new entrepreneurs in this industry. There is a real space for that still.

Bianca Green: I think, too, that like Bob Marley says, the plant reveals you to yourself. I think when people are patients right now, it allows them the opportunity to have access and figure out how they can actually help the plant. I feel like a lot of people that have been embedded in this industry have a real relationship with the plant, and not just the business side of it. Which I see a lot of new entrepreneurs coming in that are a little bit more focused on the business, and the money aspect. A lot of people who have been pioneers really have a different relationship with it. Tell me what your relationship with the plant is.

Jerred Kiloh: Well, for me, I had insomnia, and so it was like I didn’t know how to fall asleep. I didn’t use it recreationally at first, because I didn’t really have access to it as a kid. Then once I was in high school, I had access to it, and I think we tried it a couple of times in that recreational sort of way, but then it made me tired all the time. Then you put those two pieces together that I could use it to get tired. It did become a tool for me. Since then, I have grown it for 17 years, and I have been an advocate for this for 17 years. I’ve definitely worked on the political side of it in San Francisco for a long time, sat on the medical marijuana task force there, and helped write regulations for San Francisco eight years ago. Really have been an advocate.

These are unpaid positions. These are hours and times that we go through because we want to make sure people have access. It’s not just access, it’s access to good medicine with good education. Because those have to go together. Because just access to it is not enough. Because then you don’t know how to use it, when to use it, and what’s the best one to use. That was really important for me to make sure that that access was there to that education side of it. Writing good policy and procedures for cultivators was important, because I knew a lot about the construction industry. It was like we need to make sure our electrical is right so that we don’t create fires, and we don’t create hazards for our neighbors, and so that we can be good business people inside of our own community. What can you spray on your plants to keep pests away without harming each other?

That was a really big part of how, when we were creating the regulations in San Francisco, that was our main focus. We knew marijuana was there. We knew that dispensaries were there, but what were we going to do to make sure that there was a clear line between a good business, and one that was really just trying to profiteer. That was really big for me. Being in the politics side for this long, I think that it really was the connection to the plant, and then the ability to educate people was where I felt like I had an advantage. Because I can articulate myself about the biology, and the physiological effects of the plant to someone so that they can look internally and say, “Why would I use this? What does that mean to me?” When you bring meaning to the plant, like how you have that personal relationship with it, and how you use it as a tool, that’s when you do become a lover of it, because you know how to use it right.

Some of the new entrepreneurs who are coming in, they need to find the people who have that connection to the plant. They need to partner up, because without the soul that comes along with this industry, really, all we are is a commodity, and it’s we’re not just a commodity, we’re a service and we’re a commodity. We need to combine those two together, and if we don’t combine the service and education with the business side of it, then I think we’re missing out on why we even did this from the very beginning.

Bianca Green: Is that what led you to UCBA? You’re the president of UCBA, correct?

Jerred Kiloh: Yeah.

Bianca Green: Tell me a little bit about how that manifested.

Jerred Kiloh: When I came to Los Angeles, I was like, I am fresh out of San Francisco. We have a great regulatory system. Our city is backing us, Gavin Newson, like really supported our industry in that time, and then subsequent governors also backed our industry because it was well-run and well-regulated. I come to Los Angeles, love the prop D thinking this is going to be the end of the proliferation of illegal shops, and it wasn’t. Since that proliferation just kept happening, and no one was really doing anything to change it, UCBA popped out out of the vacuum that was created by no one really trying to change the politics, the enforcement, the regulation side of it. Everyone was just trying to use prop D as a way to just open a business. Because oh, look, Los Angeles made it legal. Even though there’s only supposed to be 135, there was thousands.

UCBA came and said, “We need to be the business people. We need to write a regulation. We need to make sure the city understands what our industry needs and what we want, and we need to push them to write good legislation.” Because that’s what it took in San Francisco, and that’s what it takes in almost every municipality. It’s like it takes educating them, making it a priority to them. Because politicians have a lot of priorities, and unless you make this a priority, then they’re going to fall to whoever the squeaky wheel is. Yeah, we’ve had to be the squeaky wheel. UCBA stepped up and said, “We’re going to work hand-in-hand with the city Council.” City Council and us were working hand-in-hand for well over nine months, telling them what our industry needed, them telling us what they didn’t want from the industry, and how they were scared about having too many dispensaries, or what the proliferation might look like.

Our ordinance was written with the understanding of what the city wanted. Yes, what the city wanted has changed, because the industry has changed. The knowledge has  changed. Their priority to now look at this industry differently has changed. Our ordinance looks like somewhat archaic, because so much has changed in three or four months. We wrote this five months ago. Yeah. What our ordinance really did was give the power to the city Council to make all the adjustments it needed. Instead of having to go back to the voters, which prop D was making us do. That’s why we had to make an ordinance, because the only way to supersede an old proposition is with another voter proposition ordinance. We felt like, yeah, we were going to take the risk. We were going to push city Council to make marijuana a priority, because prop 64 was coming. MRSA was already here, and these are the things that we needed. We’re like, “This is going to be huge, and if we can do it for the city, we can really create a lot of tax revenue.”

We were born out of the vacuum that was needed to have professionals who were willing to put money into legal documents, to put it on the ballot, to get voters to sign. It really was that kind of creation, and in that now we have put the fire to the feet of city Council to do something. We’ve been supportive of them from the very beginning. Like, I’m not egotistical enough to believe that I need my name on an ordinance that gets tax dollars for Los Angeles. I just want to protect this industry, and until someone says, “Someone needs to be legal in Los Angeles for us to really have a fully functional marijuana industry.” Someone needs to be legal. We need to pressure them to make these commitments to permitting, to zoning, to — they have to make the regulations.

That’s what they’ve been tasked to do now. They’ve been forced, and I think we’re getting a little backlash from the city Council on our ordinance, because we’re forcing them to do something. No one wants to be forced to do anything. In this industry, we’ve had to force every municipality to listen to us, do things for our industry, and do what’s right for what is a huge industry in California. We’ve always had to push. Historically, that’s what we’ve had to do. This is no different. Even though now it looks like the writing’s on the wall for legality, you still need to push. Because even now they still haven’t created any sort of regulatory system from the city, and they have until November 9 to do it for the March ballot. Well, they’re just now talking about it last week.

Bianca Green: Wow. It’s today November 2.

Jerred Kiloh: Yeah. They only have six more days to put something on the ballot to either complement our ordinance, or to compete with it. Really, we don’t want to compete with the city. We want the city to have good regulations. I would love to pull our ordinance and say, “The city what you’ve created is way better than what we came up with, because you were taking all of your constituents into account.” We took a small subsection of dispensary owners and said, “This is what we need as dispensary owners, and this is what we think will empower you to regulate the rest of the industry.”

That’s what our ordinance stands for. The ordinance really stands for, you got to do something. Because no, you don’t want to have a trade association come in here and bring in like $20 million in tax revenue, you want the city to write an ordinance so that they can take credit, and allocate the taxes the best way for the city. They need to take that. It was pressuring them to do what was right, which is for the city Council to really write good regulation. That’s what we started with, and our whole goal was to pressure them. That’s what we’ve done. It cost us a lot. In the end, we’ll probably get little or no credit for it, but that doesn’t really matter. If the industry moves in a good place, that was our intention.

Bianca Green: Well, that’s a positive way to perceive and be a part of your industry and community. My last question would be, how does the higher path contribute back to the community? You’ve nailed it in so many different ways, just the time that you donate, and the energy that you donate, not only to helping patients have safe access, but your some would call competitors having the opportunity to have legal businesses. Your community being able to run like a business, I applaud you for that. Tell me what Higher Path’s goals are, other than the advocacy that obviously goes along with UCBA, and your personal advocacy, what are the other things that Higher Path is getting involved with with community outreach, and giving back from a social responsibility perspective?

Jerred Kiloh: Yeah, we’re the first and only collective that’s a part of the Chamber of Commerce here in Los Angeles. Connecting our industry to local business, and local businesses, and their advocacy groups is really important for me. Because we’re no different when it comes to another business. I wanted to take the stigma away of, we’re this outsider. I wanted to come in and let other businesses know that, guess what? I pay all my taxes. I have Workmen’s Comp. insurance. I have general liability. I even have marijuana insurance. That was a big part of the communication between the Chamber of Commerce. We’re also a member of the Sherman Oaks Homeowners Association, we’re a member of VIKO which is a valley industry group of business owners.

We help Women Grow, which is an advocacy group to make sure that women are empowered in this industry. Because they’re under-served, and we donate a lot to food drives, can drives. We’ve done socks. We do all of these advocacy groups. We had a veteran’s month where any veteran who came in here would get about a $200 pack of CBDs when it came to educating them about how it helps with their PTSD, how it could help with phantom pains from lost limbs, and anxiety. We, in conjunction with other distributors, vendors, we said, “Well, if you can donate some products, we’ll pay for some.” It was a concerted effort to find, how can we, as a community, come together and help this ailing subsection of our community in the way of veterans.

Bianca Green: That really can’t even afford this medicine.

Jerred Kiloh: No. We helped with Weed for Warriors, which is a really good advocacy group. We were one of the people who really helped them here. In that, we do a different theme of every month, so that we really focus on different parts of maybe the community, or the outreach. One of our months was for veterans. Another one was for homeless. We’ve done things on just music, and the appreciation of music. It’s like, it’s nice to really dive into the community, but it’s also nice to dive into the other ways, lifestyle ways, so that we’re not just perceived as playing video games and getting high, it really is nice to go and listen to a band while high. It does heighten your senses. It does give you that personal connection.

There is a lot of ways that you can help your community. Right now, I’m more known in this community as a business owner than other businesses know each other. They all know me, but they don’t know each other. Because I walk around and tell them what I’m doing. I’ve asked if we wanted to pitch in and have a security company patrol our back alley, and we could all pull our money together, that would be much cheaper. Because the watch store got broken into, which is right down the street, the drycleaners got broken into. There was this string of thefts and break-ins that were happening, and they all came in from our back alley. It was like, “Well, what can we do as a community to lower our cost, but also make us connected in the way that we support each other in security, and in business?”

I give everyone in this neighborhood, if they’re within a mile radius and they have, and they work anywhere in this mile radius, that they get a discount at the shop. I’m trying to give back to the people who definitely work here, because a lot of times, they might have to commute to this area. To keep those tax dollars right here, I have art at the front. We’ve sold over $30,000 in art from our front lobby. Those are all local artists. We have a comedy show the last Tuesday of every month. Those are local comedians who come here and get a chance to try out their … We have bands who come who are just local bands who get to play in our lobby. We really do try to give the community of arts, and people who are somewhat disenfranchised, yeah, we try to give them access, and we tried to give them a space to show their art, or music. It feels really good.

Bianca Green: That’s wonderful.

Jerred Kiloh: One time a woman, who walked by and sprayed paint on all the dispensaries on Ventura Boulevard. We had a 75-year-old veteran who saw that she poured paint on the front of our building, and so he went to Home Depot, bought brushes, bought paint thinner, and sat outside for about six hours. I was like, “Please, I don’t want you to do this.” He’s like, “This is the way that I get to give back to you with how much you’ve given to me.” He was like, “I want to do this for you.” He’s like, “This is the best way that I can say thank you.” Yeah, he was out there for six hours scrubbing paint, and I felt really guilty, but being I’m not a good receiver, so this is a time when I just said, “I need to receive in this place where he wants to give, so he gets the reward of giving back to us.”

Knowing how many veterans and people come and try to protect our space, it’s one of the reasons why, when people come here, they see it’s such a good feeling. Because most of the people who come here, they come here because they love the fact that we’ve given them the respect that they deserve to come here, not feel guilty about buying a product that is maybe recreational, maybe medicinal. We’re not judging you. You use it the way you want to, and they get a lot of education for it.

Bianca Green: That’s a really important thing. Tell everybody where this is. Tell us where we can find you, Jerred, and the Higher Path.

Jerred Kiloh: Sure. TheHigherPath.com is a good place to start. We’re in Sherman Oaks. We’re at 14080 Ventura Boulevard. I think being a good player in Los Angeles, and showing people that this is the way you can do business, I post my taxes on the front of my window in a laminated picture so that everyone can see what I give away in donations, what I pay in taxes. So that people know that, you know what? I am giving back to my community. Not just in taxes, not just in donations, but in the education and structure that we have for this business. I think a lot of this community, since I have one of the higher retention rates in my industry, once they come here, they don’t really want to go anywhere else. Because there is respect here.

That is a big part of this industry is like, we’ve respected each other in the land in the cultivation side of it that somewhat got lost in the dispensary model. Especially in Los Angeles when there is a proliferation of it. Respect got lost. It became a commodity, it became money, it became hurry, get in, get out, get your stuff, make your decision. Like, “Can I get something that’s good for my asthma?” Like, “I don’t know, just get an OG kush.” That’s the kind of response they got. When people come in here and they talk about what they can do for their asthma, we talk about vasodilators, we talk about anti-inflammatories. We talk about other ways to get it into your body to reduce inflammation. That is the respect that people deserve. When they hear this is medical, they should be able to walk in and actually, physically see that this is medical, and feel that kind of relationship. I think that’s what’s important.

Bianca Green: Awesome. TheHigherPath.com.

Jerred Kiloh: Yeah.

Bianca Green: Check out Jerred, and come check out The Higher Path. It is a very beautiful dispensary, and really lovely employees. You really upped the bar. I remember my first experience, there were bars, and lot of locks. This is a very open door policy, and it feels really good. I encourage everybody to stop by and check it out, and check out what you’re doing with UCBA. Is there a way that people can find out about that association?

Jerred Kiloh: Man, you can Google UCBA, it’s a pretty quick one. You can see-

Bianca Green: United Cannabis Business Association?

Jerred Kiloh: Mm-hmm (affirmative).

Bianca Green: There’s a lot of acronyms in drug policy.

Jerred Kiloh: Very true.

Bianca Green: Right? And trade associations I guess. Well, thank you so much for being here with me today. I really appreciate you having us here. It’s been nice going to the podcast and being able to do it in people’s own territory. I feel at home when I do these.

Jerred Kiloh: I really appreciate you taking this time out of your life too to really advocate for us on a national, and especially right now in California it’s really important that this word does get out, and that we do hear people, and what they want from this industry, and how they’ve had the connection. I think it’s important that we don’t just have industry leaders tell everyone what they’re supposed to hear. We hear the patients, we know what they feel and how the connection is, because that’s truly what matters.

Bianca Green: The conversation right now is everything, because it’s all firsts. Even though things have existed for quite some time, there’s definitely a lot of firsts going on, so I definitely see the value in the conversation, and I appreciate you having one with me today.

Jerred Kiloh: No, thank you. I appreciate it too.

Bianca Green: Awesome.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 is 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 spark the conversation, and help Ganjapreneurs grow.

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 is 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 spark the conversation, and help ganjapreneurs grow.

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The orange glow of an I-502 cultivation site in Washington state.

Study: Patients Drop ‘Benzo’ Pharmaceuticals with MMJ

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An observational study from Canabo Medical Inc. found that 40 percent of patients prescribed medical cannabis to treat pain and anxiety stopped using benzodiazepines, such as Xanax, within 90 days and the percentage increased 45 percent within a year of cannabis treatment.

The data was drawn from more than 1,500 patients in Canada where Canabo operates 15 medical cannabis clinics.

Dr. Neil Smith, executive chairman of Canabo, called the results “extremely promising.”

“When conducting this type of research, experts are typically encouraged by an efficacy rate in the neighborhood of 10 percent,” he said in a press release. “To see 45 percent effectiveness demonstrates that the medical cannabis industry is at a real watershed moment.”

The average age of the study’s participants was 48, and about 43 percent were either temporarily or permanently disabled. Nearly 60 percent of the patients were female and more than 61 percent were seeking pain treatment. About 27 percent were interested in treatment for a psychiatric condition and about 11 percent for a neurological condition.

“To say that we’re encouraged is an understatement but there’s a lot of work still to be done,” Smith said. “We hope to conduct formal trials both in-house and in collaboration with others pending further analysis of what we believe to be one of the most promising advancements in many years.”

The company is also collecting data as to what extent cannabis can be used as an effective complement to or substitute for opioid therapies. The benzodiazepine study is expected to be published in the Dalhousie Medical Journal.

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Registration for Patients and Caregivers Opens Today in Maryland

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Some patients and potential caregivers in Maryland can sign up for medical cannabis licenses today with a doctor’s approval that they meet one of the qualifying conditions under the law, NBC 4 Washington reports. Registration is open for those whose last names start with the letters A through L; registration for those whose last names start with the letters M through Z will begin on Apr. 17; and open registration begins on Apr. 24.

The patient and caregiver enrollment begins despite the fact that no final cultivation licenses have yet been issued in the state and patients won’t have immediate access to medical cannabis. Patients and caregivers must apply with the Maryland Medical Cannabis Commission.

“Medical cannabis is currently not available in the state of Maryland,” the MMCC website states. “The industry is still being constructed and we expect availability by the end of summer 2017 depending on industry progress. The Commission will make a public announcement once medical cannabis becomes available to the public.”

Last week, the Maryland House of Delegates passed legislation that would add five additional cultivation licenses after a study is conducted as to whether minorities had undergone discrimination in the licensing process – one of the key issues that has caused delays in the implementation of the state program.

Three minority-led companies that were denied preliminary cultivation licenses have sued the commission claiming that they failed to follow the letter of the law, which requires regulators to “actively seek and achieve” racial and ethnic diversity in the industry.

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AusCann and DayaCann Harvest Their First Crop in Chile

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Australia-based AusCann Holdings is harvesting its first crop in Chile as part of a 50-50 partnership with Fundacion Daya. The estimated 660-plus pound crop, planted by DayaCann, will be sent to a manufacturing facility for processing into medical cannabis formulations.

“We’re delighted with the harvest of our first crop with our partner Fundacion Daya and we’re confident we have selected the strongest and most appropriate strains for effective medicine formulations and further cultivation in the next harvest,” AusCann Managing Director Elaine Darby said in a statement.

Four strains from the harvest have been selected as “superior strains” that will be used for future crops. Formulations must complete successful clinical trials before being registered with the Chilean Institute of Public Health and made available for patients and export markets.

Last month Argentina, which neighbors Chile, passed legislation legalizing the use of medical cannabis for patients with a prescription and for research purposes. DayaCann is exploring whether they will next enter Argentina’s market following the successful harvest.

AusCann began trading on the Australian Securities Exchange last February and since then its stock has tripled. Following a $5 million prospectus offering the stock opened at 19 cents and reached as much as 95 cents. It opened .03 percent higher today than Friday’s market close at 80 cents.

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A cannabis-themed depiction of the national flag of Canada, pictured during the 2014 World Marijuana March in Vancouver, British Columbia.

What Might Canada’s Legal Cannabis Industry Look Like?

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Later this month Canadian officials are expected to unveil the regulations under which the nation’s legal adult-use cannabis industry will operate; but so far consumers, operators, and other stakeholders have scant details about what the regime will look like.

Federal regulations to grant local control

Liberal MP Bill Blair, the parliamentary secretary to the Minister of Justice, indicated on Mar. 1 that under the federal rules provinces would have control over distribution and sales, and adults 18-and-older would be able to legally purchase cannabis from licensed retailers. Provinces will likely be able to raise the age to purchase cannabis as well – much like the nation’s alcohol policies. In Alberta, Manitoba, and Québec the legal drinking age is 18, while it is 19 in the rest of the country.

Amy Margolis, a shareholder and cannabis law specialist at the U.S.-based Greenspoon Marder Law firm, has already met with some Canadian operators “who are working closely on legalization” in order to get an idea of what Canadian legalization might look like.

“We certainly are watching what is happening in Canada very closely… everybody is waiting – even here in the U.S. – with bated breath to see what the Canadian government is going to come up with,” she said, adding that last month’s announcement came just days after law enforcement carried out Operation Gator, raiding dispensaries in Vancouver, Toronto, and Hamilton.

Potential for ‘craft cannabis’ licenses

In an interview with Ganjapreneur, Margolis said the federal government would likely maintain control over cultivation – for which only 31 licenses have been issued under the nation’s almost 16-year-old medical cannabis regime – indicating that there are discussions happening about allowing “craft cannabis” licenses. Such licenses would allow smaller growers, some of which are already operating without a license, to grow and distribute “only in the jurisdictions where they are licensed.”

“If they don’t create something like that I think they’re going to have real issues with a gray market,” Margolis said. “But if they do manage to build that craft cannabis license then you will have the best of all worlds – larger licensees that provide broader product and these people who have been producing for a long time who are able to access the market.”

A cannabis worker holds up a handful of commercial-grade, trimmed cannabis nugs. Photo Credit: Sarah Climaco

The sweeping reforms should also help stem what has become a prominent issue in Canada’s medical cannabis market – pesticide contamination. Last July, it was discovered that the federal government was discouraging laboratories from testing cannabis products from non-licensed producers. Five months later, Mettrum Ltd. issued a voluntary recall after its products tested positive for banned pesticides myclobutanil and pyrethrin; however, both the company and Health Canada came under fire for not informing consumers en masse. Last month, Aurora Cannabis announced that they were implementing a testing program beyond Health Canada requirements. Three class-action lawsuits against Mettrum and Organigram, another licensed producer, over tainted products are pending.

Ramifications for the international industry

While it’s almost a given that federal legalization in Canada won’t compel their American counterparts to follow suit, Margolis suggests that the U.S. industry could be impacted if current operators and investors move their operations – and money – north of the border. “I think from a market perspective we’re going to see people seeking additional opportunity in Canada that could be fueling jobs here, could be fueling tax revenue here, could be moving us forward.”

“From a policy perspective, it doesn’t seem to me that the [U.S.] federal government cares very much about how progressive other countries are in terms of drug reform,” she said. “I cannot foresee Congress saying ‘Hey, Canada’s done this progressive thing and we should be catching up.’… We’re already far behind places like Israel that focus a ton of energy and attention on medical research.”

During a debate on the floor of Parliament, Canadian Prime Minister Justin Trudeau, whose Liberal government is leading the reforms, said the party’s focus on legalizing cannabis “is on protecting our kids and getting the money out of organized crime’s pockets.”

“We know that that happens when you legalize and control and bring in a proper regime,” he said.

Many reports indicate that cannabis will be legal for sale on July,1 – Canada Day – however Blair said he “had no authority to confirm that date.”

A formal announcement of the rules is expected on April 20.

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The West Virginia State Capitol Building in Charleston, West Virginia.

West Virginia MMJ Legislation Passes House, Heads to Governor

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West Virginia’s medical cannabis legislation has passed the House of Delegates and has been sent to Gov. Jim Justice who is expected to sign the bill, West Virginia Public Broadcasting reports. However, the bill does not allow smoking or edibles and the state will not begin to issue industry licenses until at least July 1, 2019.

The measure, which passed 74-24, allows access to the medical cannabis program for patients suffering from wasting syndrome, anorexia, cachexia, chronic pain for which standard medication does not relieve, severe nausea and muscle spasms, seizures, “refractory generalized anxiety disorder,” post-traumatic stress disorder, and those admitted to hospice care. According to the report, House leadership has indicated that under the regime patients are allowed to make their own edibles from purchased oils.

Patients would be required to be certified by the Bureau for Public Health and could obtain a 30-day supply from a licensed dispensary. Under the measure, the state would permit 10 cultivators and 30 dispensaries. Growers would be subject to a $50,000 initial fee and $5,000 renewal fee. Dispensaries would be required to pay a $10,000 fee per dispensary location and a renewal fee of $2,500. A 6 percent excise tax will be added onto sales.

West Virginia will become the 29th state with access to medical cannabis if the governor signs the bill.

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