The main street of Alaska's capital city, Juneau.

Alaska Officials Vote Against Public-Use at Cannabis Retail Stores

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The Alaska Marijuana Control Board has voted 3-2 not to allow cannabis consumption at retail stores, according to a report from the Associated Press. The measure would have made Alaska the first state in the nation to approve consumption at legal cannabis shops.

Board member Mark Springer said he rejected the measure partly over concerns about how President Donald Trump’s administration will handle the legal cannabis industry.

“We don’t want to be waving a red flag in front of federal law enforcement, at least not now,” Springer said in the report.

Cary Carrigan, Alaska Marijuana Industry Association executive director, thinks that allowing cannabis-use at retail stores will happen eventually because one of the driving forces behind the voter-backed measure was allowing tourists to consume cannabis, especially cruise ships. Last year, Alaska had more than 2 million tourists – just over half arrived on cruise ships.

“What are they going to do?” Carrigan asked. “There’s going to be 500 people standing on the docks, smoking a joint.”

Most of Alaska’s tourists visit during the summer months, and tourism – a $1.9 billion industry in Alaska from 2014-2015 – could increase this year as retail stores begin opening across the state, but presently there is no place for them to legally consume the drug.

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Cannabis investments have turned the industry into one of the most explosive and fastest-growing markets in the world.

Salveo Capital Invests in Ancillary Companies Headset & Front Range Biosciences

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Chicago-based Salveo Capital has made its first round of cannabis-related investments, according to a recent Crain’s report. Two ancillary companies — Headset and Front Range Biosciences — are set to receive large infusions of cash from Salveo Capital, an investment firm founded in 2015 by lawyer Alex Thiersch.

According to March media reports, Salveo’s initial goal was to raise $25 million to use for cannabis-specific investments, but Salveo managing partner Jeff Howard declined to comment on the total amount Salveo has raised. And though the firm’s first two investments went to companies ancillary to the legalized cannabis industry, Howard indicated in the report that Salveo will consider future investments in “touch-the-plant” companies.

Headset is a Seattle-based cannabis analytics firm that currently has two offerings: market research data that tracks the performance of popular brands and products in the industry; and software that connects the different point of sale systems used by retailers and dispensaries, keeps track of their inventory, and monitors in-house sales trends.

Between Salveo’s investment and further injections by Hypur Ventures and Poseidon Asset Management, Headset has reportedly raised $2.5 million in investments. According to Headset’s CEO and co-founder Cy Scott, the new funds from Salveo will go towards developing the company’s third product offering.

Front Range Biosciences is a Lafayette, Colorado-based cannabis biotechnology company that develops technology for producing healthier cannabis strains; their goal is to prevent diseased cannabis crops, which should ultimately reduce legal growers’ reliance on potentially dangerous pesticides. The company plans to use Salveo’s investment to purchase new equipment and hire more staff, though Front Range’s co-founder and CEO Jon Vaught has said that the company is in talks to receive more funds from additional investors.

In total, Salveo has announced plans to fund as many as 15 startups in the cannabis sector, whose focuses are likely to include cannabis finance, agriculture, software, and more.

End


The state flag of Florida on a windy, blue-skied day.

Florida State Sen. Introduces MMJ Overhaul

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Florida state Sen. Jeff Brandes has introduced legislation that would totally reform the state’s medical marijuana program, according to a Sunshine State News report. The “Florida Medical Marijuana Act” would increase the number of medical marijuana treatment centers allowed in the state and create four new types of licenses for those businesses.

“The laws on the books today promote a state-sanctioned cartel system that limits competition, inhibits access, and results in higher prices for patients,” Brandes, a Republican, said in the report. “Florida should focus on what is best for patients.”

During last November’s election, voters passed an initiative that provided for a more comprehensive medical cannabis system, expanding patient access and available products. Lawmakers and the Florida Department of Health have up to nine months to develop new industry regulations and six months to amend the current laws.

Under Brandes’ plan, dispensaries would have cultivation, transportation, processing, and retail licenses, and would be able to hold a combination of those licenses. Current law permits one retail license per 25,000 residents for each county.

Ben Pollara, campaign manager for United for Care, said the proposal “does an excellent job of establishing a comprehensive tightly regulated” medical cannabis program in the state.

“The two most essential pieces of implementation are maintaining the primacy of the doctor-patient relationship, and expanding the marketplace to serve patient access. SB 614 does both in a well-regulated, well thought out manner,” he said.

Additionally, the measure would allow the University of Florida to conduct research on the use of cannabis as a treatment for animals with seizure disorders “or other life-limiting illnesses,” barring state funds from being used for that purpose.

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Snow-covered downtown Holyoke, Massachusetts.

Holyoke, Mass. Mayor is Welcoming Cannabis Industry

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If the mayor of Holyoke, Massachusetts has his way, the city will reinvent itself as a cannabis cultivation hot spot in New England, according to a Telegraph report. Mayor Alex Morse, 27, is encouraging growers to move into the vacant textile mills which take up 1.5 million square feet of space in the town of 40,000, of which nearly a third live below the poverty line.

“One cultivator using 40,000 square feet would create 50 jobs,” he said in the report. “We could be talking about hundreds of jobs for residents of our community.”

In addition to job creation, Morse believes that a thriving cannabis industry would be an economic and tourism boon for the town.

“People already come up in the fall to enjoy the foliage. Adding legal cannabis will do a lot to encourage tourism,” he said.

However, City Council President Kevin Jordan stands opposed to the plan, saying they “don’t want to be known as the marijuana Mecca of Massachusetts.”

Last month, state lawmakers passed legislation delaying the opening of retail dispensaries from January to July 2018, and officials are still developing the rules for the recreational industry. But Morse indicated that negotiations are already underway with at least one producer.

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A sea of green inside the grow facility of a licensed Washington state cultivator.

State Cannabis Regulators Often Moving On as Consultants, Lobbyists

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Former state cannabis regulators are bringing their expertise to the private sector, forming consulting firms and lobby groups, according to a report from The Hill. Some are advising states and municipalities on how to implement new laws, and others are pushing their former colleagues for industry reforms.

Andrew Freedman, who served as the director of marijuana coordination in Colorado, and Lewis Koski, former head of the state Marijuana Enforcement Division, formed a consulting firm to advise governments on how to set up a regulatory system.

“We’re the only ones to have stood this up before,” Freedman, said in the report. “There’s a real opportunity to come in and show lessons learned quickly.”

Earlier this month, Laura Harris, who preceded Koski, took a job as the director of the Colorado Chamber of Commerce. Former overseer of the Minnesota Office of Medical Cannabis, Manny Munson-Regala, created his own firm, Root Cause Consulting. John O’Brien resigned from his post at New Jersey’s medical cannabis program for a job as chief compliance officer for a New York cannabis company.

Under Minnesota law, regulators are required to take a year off before returning to the industry. Munson-Regala said the requirement is not unlike other sectors, such as insurance.

“Embedded in that one-year cooling off period was an understanding that regulators are in a good position to help folks who are being regulated, in part because they understand what it takes to be compliant,” he said.

Aaron Scherb, legislative affairs director for Common Cause, said he supports cooling off periods and would like to see them implemented in more states with legal cannabis programs.

“These individuals are the most familiar with the rules and regulations of a particular industry, and their experience means they’re able to exploit loopholes,” he said. “At least some minimal amount of time is appropriate so we can avoid this revolving door problem.”

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The U.S. Supreme Court in Washington D.C.

Trump’s Supreme Court Nominee Has No Prohibitionist Red Flags

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Judge Neil Gorsuch, President Donald Trump’s Supreme Court Nominee, has ruled on just three cannabis-related cases in recent years while serving on the 10th Circuit Court of Appeals in Denver, Colorado, which makes it difficult to determine how he might rule on such cases on the federal bench, according to a Vice report. He is, though, known as a states’ rights advocate which could be good news for the cannabis industry.

In December 2015, Gorsuch ruled against a Colorado dispensary in a case against the Internal Revenue Service; but in his opinion he seemed sympathetic to the business owners, saying that the government has sent “mixed messages…about the distribution of marijuana.” In that case, the dispensary owners sought to use Fifth Amendment protection against self-incrimination, which would have allowed them to keep their business a secret and reduce their tax bill.

“So it is that today prosecutors will almost always overlook federal marijuana distribution crimes in Colorado but the tax man never will,” Gorsuch wrote in that decision. “…the government simultaneously urged the court to take seriously its claim that the petitioners are violating federal criminal law and to discount the possibility that it would enforce federal criminal law.”

In a 2013 case against a police officer who used a taser on suspect who fled trying to avoid being arrested for an illegal grow, Gorsuch wrote the majority opinion. The suspect died due to a heart condition and his parents sued. In his opinion, Gorsuch opined that the although “illegal processing and manufacturing marijuana may not be inherently violent crimes” the use of force was reasonable because the suspect was a felon under state law at that time.

In a 2010 case, the court ruled against a couple accused of selling cannabis illegally who used the Religious Freedom Restoration Act as their defense. In that case, the 10th Circuit ruled that the act didn’t apply to the couple because “their marijuana dealings were motivated by commercial or secular motives rather than sincere religious conviction.”

Alex Kreit, director of Thomas Jefferson School of Law’s Center for Law & Social Justice, said that there was nothing to indicate Gorsuch would be strongly opposed to cannabis legalization.

“There isn’t anything in his record that suggests he is a hardline anti-marijuana, pro-mandatory minimum zealot in the mold of Jeff Sessions — at least not that I’ve seen,” Kreit said in the report. “And there are at least some cases that suggest he’s willing to rule in favor of individual rights and against the government in some criminal justice cases.”

End


Marc Shepard: Preparing for Legalization in New England

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

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

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

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


Listen to the interview:


Read the transcript:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Our business service directory is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to ganjapreneur.com/businesses to create your profile, and start connecting with cannabis entrepreneurs today.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Medical cannabis and veterans advocate Jeff Staker believes the time for reform in Indiana is almost upon us.

Marine Veteran MMJ Advocate Says Vets ‘Will Keep Dying’ if Indiana Doesn’t Reform

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Jeff Staker has lived a life of purpose: 11 years as a Marine Corp sniper, a drill instructor, father of four and grandfather of five, and the 51-year-old now serves as a firefighter for the U.S. government in Indiana. He’s also a leading figure in the fight for medical cannabis access in his home state as the head of Hoosier Veterans for Medical Cannabis. And while Staker is sort of an unlikely advocate – self-described as a “conservative liberal” – he’s motivated by letters of support from veterans and bad public health legislation, namely the federal Comprehensive Addiction and Recovery Act. Staker has quickly caught the attention of both lawmakers and activists in the state.

“When I get up in front of a politician, I’m not afraid you know, I’m right up in their face,” he said in an interview with Ganjapreneur. “But they need it. I’m not there to beg or ask them for anything – I’m there to tell them.”

Currently, there are 13 bills related to cannabis stuck in legislative purgatory in Indiana. They include an industrial hemp bill, a proposal allowing patients to seek and possess medical cannabis from other states, a measure to set up a system allowing low-THC cannabis use for people with epilepsy, another would provide an affirmative defense to possess CBD if the person or child has been diagnosed with certain medical conditions, and eight more related to broader medical cannabis legalization under varying schemes for varying conditions. None of those bills have been moved past a first reading or out of the committee they were referred to. Staker thought that bills dealing with medical treatments would go to a health committee; instead, most are moved to the Corrections and Criminal Law Senate Committee who on Jan. 13 held a hearing on SB.15, which would allow hemp oil therapies for children suffering from intractable epilepsy.

“There’s a reason why these certain bills go to certain committees,” he said. “They’re trying to get them to die out real fast.”

For Staker, who hasn’t consumed any cannabis in 35 years, medical cannabis access is not a political issue – it’s a moral one. In his conversations with high-powered lawmakers, Staker said he is often met with the same excuse – “we’re so conservative.”

“Well, I say ‘If we’re so conservative doesn’t that mean that we have compassion for our fellow man?’” he opined.

After the election, during which Republican Eric Holcomb was elected governor, Staker sent all 150 of the state legislators a 350-page packet that included medical cannabis research in an effort to get lawmakers “to do their homework.” According to Staker, the support for comprehensive medical cannabis is overwhelming in the ‘conservative state’ – which is not afforded a ballot initiative process. Last month, the Indiana American Legion passed a resolution of support for medical cannabis access in the state, which was signed by both the Department Commander Chairman James B. May, and the Chairman of the Rehabilitation Commission Rodney Strong.

“Three out of four Hoosiers are supportive of medical cannabis; over 80 percent of our veterans are supportive of medical cannabis,” he said. “Our representation within the statehouse needs to show that.”

To his election, Holcomb brought with him a plan to fight the opioid abuse, and former Goodwill president Jim McClelland as executive director for Substance Abuse, Prevention and Enforcement. Staker said he supports the executive’s plan but has argued to McClelland that medical cannabis use has shown promise as a way to help people not only manage chronic pain conditions better than prescription opioids, but as a method for weening people off of those drugs.

“If [the governor] doesn’t do it right and he tries to restrict the opiates out there that have already been prescribed he’s going to have problems,” Staker said. “You’re going to have people trying to feed their addiction, whether it’s rob a pharmacy or go out on the streets to get heroin.”

Staker wants a program that lets patients and doctors decide what works, one that allows children to have access to drugs that contain both CBD and THC, one that allows veterans to talk to their Veterans Administration doctors about using the drug, and provides for cannabis therapies to treat post-traumatic stress disorder. “There’s veterans out there self-medicating with alcohol…marijuana is a safer alternative. And I’ve talked to vets who are using cannabis illegally and saying just that.”

In December, Hoosier Veterans for Medical Cannabis released a 15-second ad spot which claims “every 30 minutes” a veteran dies from a drug overdose, but in states with medical cannabis the numbers have dropped 40 percent.

“Death ground is where you put an army at a position where their back is up against the wall,” Staker says, alluding to Sun Tzu’s Art of War. “That’s how I view this movement here in Indiana…If we don’t do it right veterans are going to keep dying.”

Some national veterans groups have given Staker the “thumbs up,” but “they are not the backbone” of the fight in Indiana, he said, clarifying media reports that misrepresent the role national veterans groups are playing in the ongoing legalization debate in Indiana.

“Obviously in a lot of states [cannabis] is still illegal so they don’t want a bad rep in that sense,” he said.

He indicated that the inaction by the legislature might force him to use “the last bullet in his magazine” – a lawsuit against the state asserting that prohibiting an initiative process violates the Tenth Amendment of the U.S. Constitution. He was born and raised in Indiana and doesn’t want to leave his home state in order to enjoy his upcoming retirement.

“Push comes to shove I might leave, but I might just join those veterans that already do it,” he said. “…People at work joke with me about what I want for retirement, I say ‘All I really need is a legal doob and a bag of Doritos.’”

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View of San Diego from the Coronado Pier.

San Diego is First California City to Approve Adult-Use Scheme

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San Diego, California’s city council unanimously voted to allow adult-use cannabis sales at the cities current 15 medical dispensaries once the voter-backed program is fully implemented, the San Diego Tribune reports. Officials also indicated they would consider regulations later this year that would permit commercial cannabis cultivation, testing, and distribution.

A “sunset clause” is included in the measure, which requires the council to vote whether or not to allow cultivation within nine months.

The plan was met with resistance by the San Diego Police Department and members of the city staff who pushed for a ban on adult-use sales and related activities due to crime concerns. However, Councilwoman Barbara Bay said that the sector could be a boon to city tax coffers and the local economy, while allowing testing services would ensure that the products are safe.

“I believe it is our responsibility to implement the will of the voters,” she said in the report. “It’s also our duty to wisely and responsibly regulate every part of the supply chain in order to ensure that our consumers have a safe and vetted product.”

Three days after the passage of Proposition 64, the council passed a bill that adds a 5 percent local tax on the adult-use operations including farms, factories, and dispensaries. That tax will be pushed to 8 percent in July 2019.

According to the report, the Ocean Beach Planning Board estimated that San Diego’s revenues from the legal cannabis market could be as much as $30 million per year.

Additional rules regulating dispensary signage, and requiring businesses to keep the area around their shop clean of litter and remove graffiti within 24 hours are also included in the city council’s legislation.

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The sun sets on a Hawaii beach.

Adult-Use Bills Introduced in Hawaii

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Big changes could be made in Hawaii this session as two adult-use bills have been introduced in both legislative houses, according to a Honolulu Civil Beat report. However, they will likely face opposition from Democratic Gov. David Ige who wants to hold off on any cannabis-related legislation until the state’s medical marijuana program is off the ground.

On Jan. 21, a legalization measure (SB.548) was introduced in the Senate sponsored by 10 lawmakers. The proposal would set up a taxed and regulated system under which adults 21 and older would be able to purchase cannabis. That bill has been referred to the Public Health and Judicial committees.

Under a plan introduced in the House, counties would be allowed to decide whether or not to legalize cannabis for adult use and set up their own infrastructure. That proposal was moved to the Judicial and Finance committees on Jan. 23.

Under current Hawaiian law, enacted 17 years ago, patients enrolled in the state’s medical cannabis program can grow their own plants, but there is not yet a way to legally buy cannabis from a dispensary. Last year, eight companies were licensed by the state to cultivate and sell medical cannabis, and some dispensaries are expected to open this year, but delays have plagued the program’s rollout thus far.

Advocates are also expecting a decriminalization bill this session after SB.666 died in the Senate Judiciary Committee in 2015. In 2013, the Senate unanimously passed legislation to decriminalize possession of 20 grams or less, but that bill did not make it to a floor vote in the House.

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Bill to Allow MMJ for PTSD Moving Forward in Colorado

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

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

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

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

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

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

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The Maine State House in Augusta, Maine.

Maine Gov. Moves Adult-Use Oversight to Alcohol & Lottery Agency via Executive Order

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Maine Gov. Paul LePage has signed an executive order giving the state Bureau of Alcoholic Beverages & Lottery Operations the responsibility of governing the adult-use cannabis industry, circumventing the legislature who rejected the proposal last week in a bill that delayed the implementation of the program three months, the Bangor Daily News reports. Under the measure passed by voters last November, the state Department of Agriculture was tasked with the industry oversight responsibility.

The order also forbids the executive branch from spending any more money on setting up the adult-use regime until the Legislature greenlights appropriations. The governor urged lawmakers to include $1.6 million in appropriations in last week’s legislative move, but that too was excluded from the package.

The executive order comes as the Republican LePage battles with Democratic House Speaker Sara Gideon over the issue – upset that his amendments were not included in the bill passed by lawmakers last week. However, before the order, Gideon introduced a bill that would have moved the oversight to Alcohol & Lottery Bureau, and appropriated the $1.6 million requested by the governor.

According to LePage, the funds are necessary to set up regulations, hire consultants, and possibly hire new state government employees.

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NuggMD Announces Plans to Expand MMJ Telehealth Service Outside California

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LOS ANGELES, CA — NuggMD provides California medical marijuana patients with the evaluation and documentation services that they need in order to access nearly every corner of the medical cannabis industry from the comfort of their own home.

Through NuggMD’s online 420 evaluation services, over 30,000 state residents have been registered as medical marijuana patients with the help of multiple California-board licensed doctors. Soon, people living outside of the state of California will be able to use NuggMD’s telehealth services, giving them a quick and easy opportunity to become a registered medical marijuana patient without having to visit a doctor in person.

NuggMD’s telehealth service is very simple. When a person goes to NuggMD.com and applies as a first-time patient or registers for a renewal, they can fill out a short medical questionnaire and, optionally, upload any existing documentation they have about their condition. Once they’ve sent these in, they’re connected to a face-to-face video chat with a doctor who can speak to them in more detail about their medical conditions, the symptoms they are experiencing, and how medical marijuana can be used to treat or soothe their ailments. Doctors are available for patients from 8 am to 10 pm, leaving room for evaluation flexibility.

The entire process takes from 10 to 15 minutes. When a patient is approved, that same day they are mailed an official 8.5 x 11 inch doctor’s letter of recommendation, complete with the doctor’s signature and officially recognized raised seal. The packaging used to send these documents is discreet, paying mind to the patient’s confidentiality. To speed things up, patients are able to print the digital PDF version of their recommendation, which will be sent to them immediately via e-mail. Note that this process will likely differ by state, in accordance with local medical cannabis rules and regulations.

Through NuggMD, patients also have the option to apply for a medical marijuana card, which grants the holder all of the same conveniences of a state-issued card, without the connection to a public database. It allows a patient access to dispensaries and protection from law enforcement, except it isn’t tied to an online registry that can be searched by just anyone. Keep in mind, you’ll still have to renew your medical card and doctor’s recommendation every year, as required by California law.

NuggMD works to provide a safe and reliable nationwide service for patients to access medical cannabis without the hefty taxes or fees that normally accompany it. All of these services are available online 24/7 and available for only $39 (may also vary by state). If a patient is not approved for medical marijuana, they will not be charged.

Since recreational marijuana was legalized in Nevada and Alaska, medical patients have sent in hundreds of requests to NuggMD in hopes of being able to use the telehealth services to get the documents they need in order to obtain tax-free medical cannabis. NuggMD’s expansion outside of the state of California will start with these two states, with more states to follow soon.

Not only does NuggMD provide documentation services, its sister service Getnugg.com also helps patients easily connect with nearby dispensaries for delivery services, providing a complete cannabis solution for patients who are unable to navigate the complexities of the fledgling cannabis industry themselves. When a patient completes their online evaluation through NuggMD, they are given a $20 credit to order online, so they can even test out the services for free.

Lastly, be sure to check out the company’s cannabis subscription service Nugg Club, now available monthly or bi-monthly.

Following its expansion to Nevada and Alaska, NuggMD expects to enter each new state as the opportunities arise, making sure patients everywhere are guaranteed safe and stress-free access to alternative medicinal options.

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The LED-powered grow room of a licensed adult use cannabis cultivator in Washington state.

Cannabis Legalization Bill Package Expected This Week in Maryland

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Democratic lawmakers in Maryland are planning to introduce legislation this week to legalize cannabis for adults 21 and older, the Washington Post reports. Together, the two bills would set up a regulated market and allow adults to grow cannabis in their homes.

The bills are sponsored in the Senate by Sen. Richard Madaleno, and Delegates Curt Anderson and Mary Washington in the House. Madaleno said the reforms would “effectively end the failed policy of cannabis prohibition in Maryland and replace it with a much more sensible system.”

“It establishes a thoughtful regulatory scheme and tax structure based on best practices and lessons learned from other states,” he said in the report.

Under the tax bill, a $30 per ounce excise tax would be levied and paid by cultivators, and retail sales would be taxed 9 percent. Revenues derived from the program would be allocated to substance abuse treatment and prevention programs, workforce development programs, and community school programs.

Lawmakers also have a “Plan B” if the bicameral plan doesn’t gain traction or is voted down. Another bill sponsored by Del. David Moon would put the issue, as a constitutional amendment, to voters in 2018.

“You can smell the inevitability of this in the air,” Moon, a democrat, said.

To date, no state legislature has passed an adult-use legalization measure.

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Lawmakers in the Nevada legislature will determine policy on commercial cannabis clubs.

Nevada Legislature Will Debate Public-Use Measure This Session

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Nevada State Sen. Tick Segerblom plans to introduce legislation allowing cannabis social clubs to operate under the state’s nascent adult-use scheme, according to a report from the Las Vegas Review-Journal. In addition to the clubs, the measure would allow city and county governments to issue permits for cannabis consumption at bars, concerts, hookah lounges, or even streets and sidewalks.

Segerblom, a Democrat from Las Vegas, said he knows that some officials are hesitant to allow public cannabis use, but granting local control was putting the power in the hands of municipal officials.

“It’s up to them. If they want, they can take 10 years,” he said in the report. “I’m not forcing them to do anything, I’m just giving them the right.”

Clark County Commissioner Mary Beth Scow indicated she has “very serious reservations” about allowing public use when the state hasn’t even developed a regime to govern the adult-use market approved by voters last November.

“Where these other areas are collecting data and seeing how things go, it would be wise for us to watch what happens in other states,” Scow said.

Voters in Denver, Colorado approved a social use measure during the General Election. Officials subsequently ruled that establishments that hold liquor licenses cannot apply for an on-site consumption permit.

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Boulder, Colorado D.A. Joins Policy Group Making Cannabis Recommendations to Feds

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Boulder, Colorado’s District Attorney Stan Garnett will join a policy group comprised of prosecutors throughout the nation who will advise the Donald Trump administration on cannabis public policy, according to a Daily Camera report. The group, created by the National District Attorney’s Association, consists of 14 district attorneys, of which Garnett is the only active prosecutor from Colorado.

Garnett said, for the most part, the NDAA is still largely conservative and since he is “particularly (liberal) on marijuana” he felt it was important that he was included.

“I think one of the things that happens is that many of the people in states where there is no legalization have a complete misunderstanding of states like Colorado,” he said in the report. “If nothing else, I’m able to say, ‘Wait a minute, this is a huge business in Colorado, it is largely supported by the editorial boards, polls show it was being very popular, and by and large we have not seen an impact on crime rates.’”

He added that it was “bad policy” for people from states without legalization to tell states with legal cannabis regimes how to handle their policies and “it fails to respect the importance of local control and state rights.”

Garnett said that while he was certain Jeff Sessions, if confirmed, would be the recipient of the recommendations of the workgroup, he “[didn’t] know what to expect” from the administration on the issue.

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The capitol building of Minnesota in St. Paul.

Minnesota MMJ Program Needs Extra State Cash

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Minnesota’s Office of Medical Cannabis has requested more than $500,000 in additional funding over the next two years to cover the costs of its patient database and licensed manufacturer inspections, according to an Associated Press report. The state already covers $1.4 million of the program’s operating costs and hiked the annual registration fee for operators from $94,000 to $146,000 last year trying to rein in costs.

In his budget proposal, Gov. Mark Dayton says the funding is necessary to prevent “[increasing] the cost of medical cannabis to program participants.”

Officials say that the funds will be used to cover higher-than-expected costs for maintenance of the patient registry, and more than 120 state inspections on manufacturers each year. In 2015, the first year of medical cannabis sales, the manufacturers combined to lose more than $5 million.

State Rep. Pat Garofalo, a Republican who plays a key role overseeing the program, plans to introduce legislation that would allow the manufacturers to write off business expenses on their Minnesota tax returns – currently not allowed due to cannabis’ federal drug schedule status.

Andrew Bachman, chief executive of LeafLine Labs, said he wasn’t sure if tax relief would help the company to immediately break-even but expected he would again lose money this year. Kyle Kingsley, CEO of Vireo Health which owns and operates Minnesota Medical Solutions, suggested changes at the federal level would provide a financial boost.

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A licensed ccannabis grow operation in Washington state.

Today Marks the First Day Mainers Can Legally Possess and Grow Cannabis

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Parts of Maine’s cannabis legalization initiative take effect today as adults over 21 can legally possess, and transfer without remuneration, up to 2.5 ounces of flower, have six mature plants growing in their home and six seedlings, for a total of 12 plants.

The implementation of the program’s sales provisions, however, have already been delayed three months by lawmakers, as both houses of the state’s legislature passed a bill last week that delays the rollout for 90 days. The law also provides for driver license suspension for those found using the drug while driving.

The voter-enacted law also allows for the creation of cannabis social clubs, but those too are delayed while the state develops rules and regulations under which the program will operate. Under the adult-use regime, getting caught using cannabis in public carries a $100 fine.

According to a Portland Press Herald report, about two dozen municipalities have discussed either moratoriums or bans on cannabis businesses within their city limits. The Maine Municipal Association has advised cities and towns to adopt 180-day moratoriums until the state completes the rule-making process and local officials have an opportunity to develop their own rules.

The ballot question narrowly passed in the state, despite vocal opposition from Republican Gov. Paul LePage, with a margin of 4,402 votes – or less than 1 percent.

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The dome on top of the Ohio state capitol building.

Ohio Officials Slow to Develop MMJ Rules

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It’s been almost five months since Ohio legalized medical cannabis, but it could be more than a year and a half until the program is up and running, according to a report from the Toledo Blade. While the state Department of Commerce has submitted proposed rules for cannabis growers, the earliest deadline for final approval of those rules is May 6. Another set of rules governing the testing laboratories and processors are expected from the department in the coming months, but a finalized version is not required until Sept. 8.

Aaron Marshall, spokesman for Ohioans for Medical Marijuana, said that advocates have no choice but “to let the process play out.”

“It’s sort of the drudgery of state government,” he said in the report. “As much as we’d like to push the pace, there doesn’t seem to be a desire among state regulators to do so. So we wait, and wait, and wait.”

The Ohio Board of Pharmacy and State Medical Board have already proposed their own rules for certifying physicians and operation of dispensaries – which will be led by pharmacists. The Pharmacy Board proposal would see up to 40 provisional licenses issued in the state, allowing for more if necessitated by demand. The Medical Board rules dictate which physicians may or may not issue recommendations and receive certifications.

The Joint Committee on Agency Rule Review is expected to take up the proposals later this year.

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Irish GPs Support MMJ Use but Not Decriminalization

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The majority of Irish general practitioners support the legalization of cannabis for medicinal use, but do not support the decriminalization policies of the Irish government, according to an Irish College of General Practitioners survey outlined by the Irish Examiner. The survey, published in the Harm Reduction Journal, found that general practitioners with advanced addiction training and male GPs were more likely to support liberal cannabis policies.

More than three out of five GPs agreed that cannabis therapies have a role in pain management, palliative care, and multiple sclerosis treatment. However, 77.3 percent indicated that cannabis use has a “significant effect” on the mental health of patients and puts users at an increased risk of schizophrenia.

About 40 percent of male GPs surveyed supported cannabis legalization, compared to 14 percent of their female counterparts.

Dr. Des Crowley, assistant program director for the ICGP’s Substance Misuse Program, said he hopes the survey “will be considered” as policymakers determine future cannabis legislation.

“General practitioners see at first hand the impact of drug misuse, and like their international colleagues, believe that heavy use of cannabis in younger people can heighten the risk of dependence and mental health problems, including depression and schizophrenia,” Crowley said in the report.

The study echoes the beliefs of proponents and opponents worldwide, suggesting that “ongoing research into the health and other effects of drug policy changes on cannabis use is required.”

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An indoor cannabis grow in California.

California’s Cannabis Czar ‘Confident’ State Will Adopt Regs by January Deadline

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California’s legal cannabis industry has a projected value of $7 billion and tax revenues for local and state governments could reach as much as $1 billion a year, according to an Associated Press report. And under the state’s voter-approved legalization initiative, the state must have rules and regulations to police the industry in place by January 1, 2018.

To that end, Lori Ajax, the chief of California’s Bureau of Medical Marijuana Regulation, indicated that her “small but mighty” staff of 11 full-time workers is working to meet that deadline.

“We’re confident that we can get this accomplished,” she said in the report; however some officials and stakeholders aren’t as confident.

Democratic state Sen. Mike McGuire, said that the state is “building the airplane while it’s being flown,” questioning whether the state can transform the informal market into a formal one, and how they will create a coherent system from the loosely-regulated medical cannabis industry that has operated in the state for 20 years.

“It’s going to take us 10 years to dig out of the mess we are in,” he said.

Gov. Jerry Brown has proposed spending more than $50 million to fund the implementation of the new law. The funds would be used for hiring about a dozen regulators and establishing programs to collect taxes and issues licenses. According to the report, the governor has called for one regulatory framework for both the adult-use and medical markets.

Arron Herzberg, an attorney and CalCann Holdings partner, is skeptical that the state will have enough time to set up a regulatory scheme by January, calling the governor’s funding proposal a jumping off point.

“You are always going to have a black market,” he said, noting that in order for the new economy to work, “you have to reduce the black market to tolerable levels.”

Lawmakers are holding a meeting today to determine whether the state can meet the deadline.

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Indoor cannabis plants under the lights of a licensed Washington grow facility.

Medical Cannabis and Cancer: Do You Know the Whole Story?

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With more and more states choosing to legalize medical marijuana, there has been increased interest in using cannabis to treat certain medical conditions, such as different types of cancer. And, although cannabis has shown promise in helping patients with cancer, claims that cannabis can actually cure cancer may leave patients feeling unsure of what to believe. Sometimes it’s hard to separate fact from fiction when it comes to the role that cannabis plays in treating certain medical conditions.

A recently updated publication from the National Cancer Institute (NCI) offers an overview of evidence-based information about the effects of cannabis on different types of cancer and outlines the discoveries that science has made, as well as what remains unknown.

Administration of tetrahydrocannabinol (THC) has been shown to reduce the incidence of liver and colon cancer in animal models. Researchers have also found that cannabis may protect normal cells from death and may even kill cancer cells. So, yes, it is possible that cannabis aids in the fight against the cellular processes that promote cancer growth. But these data have not been replicated in humans, meaning that it is largely speculative for now.

The NCI review also addresses potential downsides of cannabis use: some studies have shown that cannabis might actually cause cancer.

But how could cannabis both help fight cancer and cause cancer? The answer is a little complicated. First, it is possible that cannabis works differently in a person with cancer than in a healthy person who consumes cannabis. Second, it might depend on the route of administration (smoking versus oil consumption). Third, we don’t have enough evidence to determine the link between cannabis and cancer because most studies have been performed in animal models (not humans); therefore, the link between cannabis use and cancer remains inconclusive.

So, what do we really know about cannabis and cancer?

Extensive evidence has shown that cannabis can help alleviate some symptoms associated with cancer and some side effects from cancer treatment:

Addressing nausea and vomiting:

  • Dronabinol and nabilone are treatments that can be used to reduce chemotherapy-induced nausea and vomiting.
  • Several studies have verified their effects on these chemotherapy side effects.

Easing pain:

  • Sativex is a cannabis extract that is approved in other countries to treat pain in cancer patients.
  • Both studies in animal models and humans have demonstrated its analgesic effects.

Stimulating appetite:

  • Cannabis consumption has been shown to increase weight gain in cancer patients.
  • Clinical studies and experiments in animal models have demonstrated the effect of cannabis on increasing appetite.

Note that, while commercially available cannabis agents, such as dronabinol and nabilone, are approved for the treatment of cancer-related side effects, the FDA has not approved cannabis as a treatment for cancer or any other medical condition. But with more controlled clinical trials underway, that could change in the next coming years.

Visit The National Institute of Health’s clinical trial database to learn more about different studies on cannabis and cancer that are currently recruiting participants.

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medical marijuana prescription

What Medical Conditions Qualify for a Medical Marijuana Prescription?

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Medical marijuana can be a contentious subject for some, but the benefits of the plant can no longer be denied. In fact, thirty-two states and four US territories have legalized medical cannabis use and distribution. Most states do not allow cannabis to be smoked in public or do they allow possession of the plant in correctional facilities; but more and more patients in America have access to medical marijuana. 

Three things you need

Anyone seeking a medical marijuana prescription for any of the qualifying conditions will need three things, regardless of what state they reside in.

  1. Proof of residence: Patients will need to provide proof they are a resident of a medical marijuana state.
  2. A qualifying condition: Conditions that qualify for the use of medical marijuana vary greatly from state to state.
  3. Documentation from a doctor: Finally, patients will be required to receive a prescription from at least one medical professional.

Once you have all three of these things, you will be able to pick up a prescription at a state-run marijuana dispensary, or in some cases have rights to cultivate your own plants. Now that you know what you need, the question remains: What conditions qualify for a prescription of medical marijuana?

Qualifying conditions

The biggest question for most people now is which medical conditions will actually qualify for a medical marijuana prescription. The qualifying conditions for a medical marijuana prescription depend greatly on the state in which you reside.

The most common conditions, meaning those that are considered qualifying in the majority of medical marijuana states, include:

  • Agitation related to Alzheimer’s Disease
  • Amyotrophic lateral sclerosis (ALS)
  • Arnold Chiari malformation
  • Autism
  • Cancer
  • Causalgia
  • Cachexia
  • Certain migraines
  • Chronic Inflammatory Demyelinating Polyneuropathy
  • Decompensated cirrhosis
  • Epilepsy, seizures, or persistent muscle spasms
  • Fibromyalgia
  • Dystonia
  • Glaucoma
  • Hepatitis C
  • HIV/AIDS
  • Huntington’s Disease
  • Hydrocephalus
  • Inclusion body myositis (IBM)
  • Inflammatory Bowel Disease (IBD)
  • Interstitial Cystitis
  • Lupus
  • Muscular dystrophy (MS)
  • Myoclonus
  • Myasthenia Gravis
  • Nail Patella Syndrome
  • Neurofibromatosis
  • Ulcerative colitis
  • Obstructive Sleep Apnea
  • Parkinson’s Disease
  • Peripheral neuropathy
  • PTSD, and symptoms thereof
  • Reflex Sympathetic Dystrophy (RSD)
  • Residual limb pain
  • Rheumatoid arthritis
  • Severe pain
  • Severe nausea
  • Sickle Cell Anemia
  • Sub therapy of opioid addiction
  • Spinal cord damage causing intractable spasticity
  • Spinocerebellar ataxia (SCA)
  • Sjogren’s syndrome
  • Terminal illness
  • Traumatic brain injury (TBI)
  • Tourette’s Syndrome

This is a long list of conditions that qualify patients for a medical cannabis prescription in the states that have legalized, however not all of these conditions apply to all states. And some states have left space for physicians to make the decision, like in California where there is a caveat in the medical cannabis bill that allows a doctor to prescribe cannabis when it seems a patient could benefit from the prescription. In New York, medical cannabis may be prescribed in place of opioids. 

There are tools available online to help you determine your eligibility for a medical marijuana prescription, depending on the state where you currently reside.

The best way to determine if you qualify for medical marijuana use is to visit your state’s individual website. As we mentioned before, the qualifying conditions do vary sometimes drastically from state to state, so it’s important to verify your state’s specific qualifications.

medical cannabis

Other things to know

What else do you need to know before approaching your doctor about a medical marijuana prescription? If you do have a qualifying condition, there are still a few questions left to ask, including:

  • What type of medical marijuana is available? Does your state permit the use of cannabis oil, edibles, smokeable cannabis or concentrates? Some states only allow low-THC oil for medical marijuana treatments, so it’s important to know what is available in your state.
  • Where can medical marijuana be purchased? Medical marijuana will mostly be available in state-licensed dispensaries, which will be located around the state. Just like the qualifying conditions, the dispensary locations will vary from state to state, so it’s important to check with your state’s medical marijuana office.
  • Does your current doctor support the use of medical marijuana? The topic of marijuana is a hot-button issue for a lot of people, and there are more than a few medical professionals who do not support the use of the substance, legalized or not. If your doctor doesn’t support the use of medical marijuana, it may be time to switch to a provider that does offer the support that you need.
  • Does your state offer recreational marijuana as well? If so, a prescription for medical marijuana might exempt you from some of the taxes placed on the sales of marijuana for recreational use. Colorado is a prime example of this. While medical marijuana sales do fall under the 2.9% state sales tax, it is exempt from the state’s 10% marijuana sales tax.

More and more information will become available as activists continue get medical cannabis, legalization, and decriminalization bills on the ballot. The information we’ve gathered here is a good place to start, but if you’ve got any questions we haven’t addressed, the best thing you can do is contact the department in your state that handles the regulation and sale of marijuana to get state specific answers.

Last Updated May 27, 2020

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A juvenile cannabis plant pictured inside of a licensed Washington cultivation facility.

Nevada Tax Department Gets Loan to Keep Adult-Use Program on Track

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Nevada’s Legislative Interim Finance Committee has approved a $900,000 loan to the Department of Taxation to start the implementation of the adult-use cannabis market, the Las Vegas Review-Journal reports. The loan will cover the costs associated with writing regulations and setting up the structure to administer the system of cannabis cultivation, testing, processing, and sales.

Deonne Contine, tax department director, said that if they didn’t begin the process now they wouldn’t be ready by the Jan. 1, 2018 date mandated under the voter-approved initiative. The loan will be repaid to the IFC’s contingency fund with tax revenues from retail sales.

IFC members also approved a $122,400 transfer to the state’s medical cannabis program to cover costs related to a breach of its website portal last month. Joe Pollock, deputy administrator of the medical cannabis program, said that the majority of those funds will be used to cover the state’s insurance deductible for providing credit monitoring services and notifying registrants.

Two Republican lawmakers, state Sen. Ben Kieckhefer and Assemblyman John Hambrick, voted against the loan due to President Donald Trump’s attorney general nominee, Alabama Republican Sen. Jeff Sessions.

“It wouldn’t be too hard if the federal government tried to shut this all down,” Kieckhefer said.

So far, Sessions has not committed to allowing states to continue operating cannabis programs without interference from the federal government.

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