Tad Hussey: Aerated Compost Teas

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Tad Hussey, founder of KIS Organics, recently joined our podcast host Shango Los for the third part of his three-part interview series on probiotic growing techniques. This week, Tad discusses how he uses aerated compost teas to supplement his organic grows. In the interview he discusses how to set up a compost brewer, how to extract nutrients from the compost into the water to use for growing, and what ingredients his personal recipe for a compost tea contains. If you haven’t heard them already, check out Tad’s previous two interviews on building your own soil and taking from nature to craft your own probiotic soil nutrients. Listen to this week’s episode below, or scroll down for the full transcript!

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Shango: Hi, there and welcome to the Ganjapreneur.com Podcast. I’m your host, Shango Los. The Ganjapreneur.com Podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers and cannabis medicine researchers all focused on making the most of cannabis normalization. As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark and give you actionable information to improve your business strategy and improve your health and the health of cannabis patients everywhere.

Today is part three of our three-part series with Tad Hussey of Keep It Simple Organics. Keep It Simple is an edible nursery, production greenhouse, outdoor preschool organic hydro shop and feed store in Washington State. Tad is an educator and a sought-after speaker on probiotic growing. During the first two parts of this series, we talked about wild crafting probiotics for nutrient teas and building soil. Today, we’re going to talk about compost teas. Welcome back to the show, Tad.

Tad: Thanks for having me, Shango.

Shango: I know I sound strange this week. I had contracted a respiratory infection flying down to LA for the Cannabis Entrepreneur Summit last weekend and I’m running a fever, man, so if I pass out, you can just finish the show as a lecture.

Tad: All right. I appreciate you doing this.

Shango: Right on. This show brings us full circle because you may recall that this three-part series started when you and I were talking and I realized that I didn’t understand the difference between nutrient teas and compost teas because I thought they were the same thing. We decided to break up probiotic growing into three shows so that everyone could get up to speed on how to grow using less store bought nutrients. Let’s start from where you and I started. Would you share the difference between nutrient teas and compost teas which is what we’re talking about today?

Tad: Yeah. Just to make the definition a little bit easier, specifically, I want to focus today on aerated compost teas where we’re purposely adding oxygen to select for beneficial aerobic microorganisms, ones that want high oxygen conditions to survive. When we talk about nutrient teas, we’re specifically talking about extracting nutrients out of a plant matter or out of compost, what’s leeching off the bottom of the compost pile, for example, would be considered a nutrient application whereas when we’re making aerated compost teas, we are specifically adding beneficial microorganisms with the purpose of increasing our microbial activity and overall nutrient cycling.

Shango: Is there a particular microbe that we’re going for or is this an entire spectrum of microbes that we’re allowing that to evolve?

Tad: That’s a great question. When we make aerated compost tea, it’s a shotgun approach. What we’re really looking to do here is put out as many beneficial microorganisms as we can and really let the plant be in control because the plant is constantly photosynthesizing, bringing in energy and it’s putting anywhere from 30 to 70% of that energy back out through its root system specifically to feed the microbes in the soil. By having more of these beneficial microbes in the soil, we’re going to increase that nutrient cycling process and help our plant be healthier.

Shango: I want to drill on that because I actually never even considered that. What you said, that the plant is actually putting out nutrients out its root system to feed the microbes, is that what you said?

Tad: Yeah. They’re called root exudates. They’re putting out things like sugars, carbons, basic carbohydrates right out into the root system as a way of feeding the microbes. If the plant needs more nitrogen, for example, it will select exudates that will cycle nutrients, select bacteria, for example, that will help produce nitrogen in the form that the plant wants. When we’re putting out Miracle-Gro or other chemical nutrients, we’re actually killing off and damaging this process. That’s why it’s so important when we’re fertilizing teas, organic fertilizer and really promote the health of the microbial communities in their rhizosphere.

Shango: That’s really interesting. I can imagine that if you’re not feeding your microbe community properly, you actually could be starting to starve the plant because the plant’s going to continue to try to feed the microbe community and your plant will just be thriving less. If you’re feeding the microbe community and the plant has to do less, it can focus more on thriving itself. Is that a good explanation?

Tad: Yeah. It’s a really important distinction to realize that when we are putting out organic fertilizers, whether they’re bottled nutrients or any sort of product like alfalfa meal, for example, we’re not actually feeding the plant. We’re feeding all these microbes in the soil that are then cycling the nutrients, making the plants available whereas when we put out mineral salt or fertilizer in an ionic form, we’re directly feeding the plants, so really, really important that we have these microbes in place in order to make the nutrients available.

Shango: Right on. Let’s dive right into the recipe because I’m sure that will tease out a lot more after that but why don’t you go ahead and explain for folks how to make their aerated compost teas at home and then we’ll take it apart afterwards?

Tad: Sure. You can do this as simply or as scientifically as you want. If you’re looking for the simplest recipe, Tim Wilson has a real simple stir method you can read about on his website at microbeorganics.com. If you want to actually get into it, there’s a bunch of other recommendations from him that are really good in terms of the amount of oxygen, for example, that you need to put into your brewer in order to maintain dissolved oxygen levels at adequate points for the proper aerobic microorganisms.

Assuming that you have a brewer already that will do these sorts of things, maintain your oxygen levels above six parts per million for the entire brew cycle, then you can start looking at recipes for maximizing the quality of your compost tea. Again, Tim recommends about 2.3% by volume of compost which works out to about a cup and a half to two cups of compost in a five-gallon brewer, for example. Then, to that, you can add some unsulfured blackstrap molasses which is really easy to find. Most local feed stores will have it. If you need to, you can also go to Whole Foods or grocery store to pick that up, adding about one in a quarter to one in three-quarters tablespoons per gallon of water of the molasses and then, you can also add in some fish hydrolysate, for example, or alfalfa meal. There’s a bunch of different things you can put into your teas.

Shango: Tad, what is a compost brewer? I thought that compost was just made in a five-gallon bucket with a bubbler in it.

Tad: That’s essentially what a compost tea brewer is. What we’re doing there is we’re trying to raise dissolved oxygen levels in the water and maintain them through the entire brewing cycle and then those bubbles or diffuser are necessary in order to strip the microorganisms off of the compost or soil particulate out into the water where they’ll start reproducing. The three things you really need is a brewer. Then, you need a good quality source of beneficial microorganisms which in this case, we’d use a finished compost. Then, lastly, you need to add a food source for those microbes which would be any of the things we discussed like unsulfured molasses, fish hydrolysates. Our company makes a product called Microbe Catalyst. There’s a ton of different things out there that you can use to feed those microbes.

Shango: We’ll talk in a little while about scalability for people who are using this at a commercial level but right now, since we’re talking about the basics, if somebody is at home and they don’t want to purchase a brewer, could they go ultra-simple and just throw the compost, the water and the nutrient food for the microbes and an aquarium bubbler in a five-gallon and just brew it that way or do we really need something store bought that will control the levels for you?

Tad: If you’re buying something store bought, what you should be paying for is that they’ve done this level of testing for you. They should be able to tell you various temperatures, elevation, food stocks and compost, how long you would need to brew or any other variables there. That’s what you should ask for, is some direct microscopy or lab test to support whatever company is selling a brewer because there’s a lot of people out there that haven’t done any of that testing and just throw an aquarium pump in a bucket and call it a compost tea brewer.

Now, the one thing to consider with all that is you need .05 to .08 CFM per gallon of water as a general rule. Again, this is from Tim Wilson. He’s done some of the best research here in North America on compost teas. That’s really important. Those average aquarium bubblers that you pick up, say, down at the pet store are not going to be pushing enough oxygen, in general, to make up five gallons. You’re much better off, if you do have one of those bubblers, for example, and want to use it and make your own tea, make a half gallon of tea and then add that to four and a half gallons of water after you’re finished making sure that the water is dechlorinated. Then, apply that to your plants rather than trying to brew five gallons with a really small bubbler.

Shango: Right on. I would think that the way to look at it is since we want to use compost teas to get us off of bottled and synthetic nutrients that can be purchased, we should look at it as, okay, you’re going to shoulder this expense to buy this brewer but you’re going to be saving all those money on store bought nutrients. Even though you got to go out of pocket a little bit, you’re going out of pocket for something that’s going to save you a ton of money.

Tad: Potentially, yes. Though keep in mind, you don’t have to buy a commercial brewer. Those are just the guidelines I’d like to set when people do consider buying a brewer to make sure they’re not getting ripped off.

Shango: Right on. I guess there’s a range. You could just do it in a five-gallon bucket and you could also buy one at the store but your mileage may vary.

Tad: Sure, exactly. I’ve been doing this for a long time. We have some people that will do the stir method in a bucket and apply it to their plants and are totally happy. We have other commercial applicators that literally have a microscope that they take around on site to check the tea right before they apply it to make sure that it’s at the highest levels of microbial activity and biomass. Really, you can do it any way you want. The big thing there is that you want to select for aerobic microorganisms in this case so that we really keep those oxygen levels high if we’re adding a food source. If you do the stir method where you’re literally just putting compost into a bucket, stirring it over the course of a period of time and then watering it in, it’s not as much of an issue.

Shango: Cool. We’re going to take a short break and be right back. You are listening to the Ganjapreneur.com Podcast.

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Welcome back. You are listening to the Ganjapreneur.com Podcast. I am your host, Shango Los. Our guest this is Tad Hussey of Keep It Simple Organics. Tad, right before the break, we were talking about store bought brewers versus just using a five-gallon bucket. I was caught off-guard because I thought that most everybody at home was just using a five-gallon bucket because that’s actually what I’ve seen most often. What’s a typical price point for an at-home brewer? I don’t mean like a big commercial one but just something that a patient or a medical marijuana patient would be using?

Tad: Sure. For a commercial brewer, for example, from our company, you’re looking at $300 for our five-gallon brewer and then, the 50-gallon brewer that we carry is actually made by Tim Wilson. That one runs $600 with free shipping. Really there, what you need to consider is the cost per brew after that point and think about how you’re going to get the material for that. Ideally, you’re making your own earthworm castings and compost and then putting that into the brewer with some molasses.

Companies like mine also sell packs that range in cost anywhere from a few dollars to $10 on that per brew once you have the brewer in place. In terms of free brewers, there’s a design by Oregon State available on the web and then also, I think on ICMAG in the organic soil forum, there’s a whole thread on a five-gallon airlift brewer that is a solid design too if you’re mechanically inclined and want to make your own brewer.

Shango: I like that idea. That gives people a good option. If you want commercial and easy, you can throw down some duckets and if you got some DIY spirit and you like hanging out at Home Depot, pull up some plans and make your own. That sounds good. Can the tea be over brewed? I’ve seen some people brew forever. I remember when you spoke at CannaCon in Seattle over the winter, that you were suggesting that forever brew isn’t really the best way to go. Can you break that out a little bit?

Tad: Sure. That’s a great question, Shango. When I talk about perpetual brewing, what I’m talking about is making a compost tea and then letting it go for a few days to a week or however long just pulling out tea as you want and maybe adding more compost or more water over time. This sounds like a wonderful idea but what we find that really, 24 to 36 hours under most conditions is the optimal amount of time to brew because we’re trying to maximize our microbial diversity. When you think about it, it makes a lot of sense. It’d be like for example, if you went to the zoo and opened up all the gates and let all the animals out, after let’s say a week, you’d probably only just have some lions and some rats left. Everything else would be gone.

What we find is when you brew for three days, four days or on and on, what you end up with is the fungal hyphae pretty much goes away. Usually, you’ll see one morphology bacteria. That’s just a shape of bacteria. You’ll see one species that’s really thriving and everything else disappears. Then, you’ll see one species of flagellate that will survive and everything else disappears. Then, it just becomes a rollercoaster. The flagellates eat all the bacteria. Once that food source goes away, you have a ton of flagellates that die off and then the bacteria blooms again. This just goes back and forth.

Now, that tea could still have some plant benefit but it really isn’t the purpose of why we make compost tea. For that same reason, that’s why you can’t throw it out in the fridge. It doesn’t have a shelf life after it’s done. Once you brew it, you really need to apply it within a few hours. I like to keep the motor running right up until I put the tea out into my garden. If you think about it, that makes a lot of sense too because we just created all these microorganisms, literally an unsustainable amount of life and diversity, that we’re then taking away its oxygen. Things are going to start dying right away. Throwing it in the fridge, you’re creating the same problem. You’re taking away the oxygen and you may be slowing down that process a little bit but you’re not going to have the same quality of tea two, three days down the road.

Shango: That makes a lot of sense. You want to hit the bell curve right. You don’t really want to get to the point where it’s survival of the fittest. You want to brew it up so that you got all these microorganisms and then go ahead and apply it before they start fighting it out amongst themselves. I get that. There’s a lot of myths about compost tea. I hear from different growers, some of the things they tell me directly compete. They can’t both be right but I don’t know which one is. What are some of the myths that you have heard running rampant that you can add some clarity to?

Tad: Sure. There’s a few things I want to touch on. Number one, one question I get a lot, and I wouldn’t necessarily throw this into the myth category but I think it’s important, people read Jeff Lowenfels’ book, Teaming with Microbes, which is a great book about all of these sorts of things. They see that the plants that they’re growing, in this case, we’re talking specifically about cannabis, fall into an area where their earlier succession plants, they’re typically considered annuals and they prefer soil that is high in bacteria over soil that’s high enough in fungal activity. People would call me up and say they want to make a bacterial tea because their plant likes bacterial soil but that misses the purpose with compost tea.

Again, this is a shotgun approach. No matter what you’re growing, whether you’re growing trees or you’re growing vegetables, you still want to put out a balanced tea that has all these microorganisms because again, the main point of compost tea is really nutrient cycling. We’re really putting the plant in charge. We’re not trying to select for bacteria necessarily. We just want to select for all sets of microorganisms. That’s just the first thing I wanted to bring up really quickly.

In terms of other myths, some of the things we hear is a lot of people think that having a big head of foam on the top of their compost tea brew shows that there’s a lot of microbial activity. What we find when we actually looked at it under the microscope is that this isn’t necessarily the case, that these brews really, the foaming has more to do with saponin content or possibly an enzyme being released by earthworms that may have been in the compost that you put into the brewer.

Another one I like to bring up too is that there’s some claims around different brewer designs when people talk about using, say, a brewer like a vortex brewer that spins the water in a certain direction to supposedly raise the potency or quality of the water or the tea. This is something where we, again, when we looked at under microscope, we don’t see any scientific evidence to back this up. Vortex designs work great but may not be worth the added cost or expense in terms of what people are charging to commercially produce these types of brewers.

Shango: Good. Is that the complete list of myths before we move on?

Tad: I’m sure there’s others that are … There is one more that I just thought of. I want to give credit to Tim Wilson for a lot of this. He really challenged me. When I first started really examining and using the microscope, he was the one that started saying, “Hey, these are things that’s everyone been saying at the industry but are they actually true?”

For example, we’ve been using humic acid in our compost teas because a well-known professional figure in the industry had been saying they’re a great fungal food. When we actually started testing this out with a bunch of different samples from different companies in different concentrations, we found it actually inhibited microbial activity in most instances. That’s another one. I don’t like to put humic acid into my teas. I think it has other benefits but not necessarily in a compost tea. These are all things that we’re learning.

Recently, we were speculating on whether or not neem cake was something that would kill microbes. This was something I was able to test out with my microscope and then, post the results on YouTube and actually show that neem cake, which we used, I think I talked about it before as something you can use to treat fungus gnats, or as a nitrogen source in your soil. I found it actually was a wonderful bacterial food and it’s something that increases microbial activity rather than inhibits it.

Shango: That makes a lot of sense. We’re going to take another short break. When we come back though for the last section, we’re going to talk about the quality of compost needed to make good teas and then, we’ve got a lot of commercial growers who are listening so we’re going to talk about scalable compost teas so that you can help get your company off the bottle as well. You are listening to the Ganjapreneur.com Podcast.

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Welcome back. You are listening to the Ganjapreneur.com Podcast. I’m your host, Shango Los. Our guest this week is Tad Hussey or Keep It Simple Organics. Tad, before the break, we were talking about the foam that sometimes can come on the top of a compost tea. You said that in some cases, it’s because earthworms are coming in with the castings and a couple other things. It made me wonder about the quality of compost that needs to be used. Is it as simple as if you use lame unfinished compost that the brew isn’t going to work or does even mediocre compost work? How careful do we need to be about the compost we choose?

Tad: That’s a great question. The first thing I would want to say is that not all compost is created equal. Like you mentioned there, some compost is unfinished. If it’s been something that’s been made and then sat in a bag on a shelf for who knows how long or out baking in the sun on a pallet out in front of a hydro shop, it’s really hard to know what microbes are going to be active prior to your brewing. There’s a huge difference in quality. Really important that you start with a high quality compost because if you’re going to take the time and labor to make this tea, you want to make it to the best ability that you can. If you want to use your own compost, that’s a great option.

Just keep in mind that if you’re not doing any testing with the microscope, you really don’t know what you’re making and you’ll just want to judge it based … Earthworm castings or worm composting is really the best option for people who don’t plan on using a microscope or don’t plan on buying compost that’s been lab tested in general. It tends to be of higher quality than most normally made or commercial compost.

The last thing I would add about compost is just that if you are making it, keep in mind that the food stocks that you’re putting in are going to affect the quality of your compost. Horse manure is actually a great amendment. Food and vegetable scraps and cardboard tend to not be quite as of high quality as if you were to take a finished compost and put earthworm castings into it or take horse manure and properly compost it. These are going to give you more microbial activity.

Shango: Then, let’s contrast that to the compost tea kits. I know your company makes one and we’ve given that out as door prizes at the Vashon Island Marijuana Entrepreneurs Alliance meetings. Then, I’ve seen other of them on the market. How does a kit, how is it different than making your compost at home? Is it going to be as effective?

Tad: It should be. In theory, what you’re paying for is that whoever is making these kits has done some of those testing for you and knows that the microbes that they’re giving you are going to be active and reproduce well when put into a brewer. For example, with our company, we don’t make up the kits until we actually sell and ship them just so we can maintain the highest quality and the freshest ingredients because you have to maintain moisture content to keep these microbes alive. One thing I forgot to mention is the reason we’re using compost is because compost is exponentially higher in microbes and microbial activity than our average garden soil. That’s why we’re constantly talking about compost here in this case regarding making our compost teas.

Shango: While we’re talking about the benefits, let’s dwell on that a little bit more. We were talking about in the first section, we were talking about how if you are providing an active microbial environment in the substrate for the plant, that that’s less work that the plant has to do by providing sugars and other nutrients through the roots to the microbe systems. For brewing this fresh tea and we’re pouring it in and we’re adding all of this beneficial life for the plant, how will we see that expressed in our plant? There is a certain amount of effort and money that it takes to make compost teas. What’s the reward look like in the cannabis plant itself?

Tad: There’s a ton of different benefits related to compost tea but the biggest one and the thing I like to stress the most is nutrient cycling, essentially what you talked about there. By increasing the efficiency of nutrient cycling in the soil, we’re just helping the plant be less stressed and grow faster and healthier. Because of this, we’re also seeing less issues with diseases. Now, I don’t like to claim disease suppression related to compost teas though I know some people do but the concept is they’re first wearing compost tea out onto the soil or, say, onto the leaf surface of the plant. Those beneficial aerobic microorganisms are going to occupy the infection sites on the leaf or around the root and help prevent pathogens from getting a hold. Potentially, you could be reducing your disease problems.

I’ve heard people tell me that they use compost tea to treat anything from fusarium to powdered mildew to pythium and a variety of other things. I don’t think it’s a silver bullet in that regard. Just keep that in mind but it may help. It should help extend your root systems. It’ll help break down some of the toxins in the soil. You should see an increase in terms of the odors and flavors of whatever crop you’re growing. It should reduce potentially the amount of fertilizers and other things that you may be using in your growing process.

Shango: Should we see an increase in the quality and number and size of flowers as well simply because the plant is thriving and expressing itself so much better?

Tad: You could. I don’t like to say 100% of the time on something like this because keep in mind that every brew that you make is going to be slightly different and every soil that you apply it to is going to be with different environmental conditions. You may see amazing results or it may be something much more subtle but the great thing about it is you can’t over apply compost tea if it’s made correctly. It’s 100% safe. It’s non-toxic. It’s natural. It’s a great option as a way to help plants without a lot of risk or downside other than maybe the cost or your labor involved.

Shango: I like the idea that you can’t over apply it. I’ve heard from plenty of growers where they have forgotten where they were in their fertilizer regimen or they got high and they did it twice and then their employee did it. These can cause problems as you burn you plant in various ways but the idea that there is not too much, it sounds like a nice, natural probiotic built in safety valve to help protect your garden.

Tad: You’re going to get a little bit of nutrients but really, the main point again is this nutrient cycling. The worst case is, dude, you’re probably overwatering your plants potentially.

Shango: Let’s wrap up by talking about commercial applications because we’ve got lots of patients who are listening who are hopefully getting more excited about using compost teas but we’ve got a lot of folks who are commercial growers. Most of the states are trying to move people away from synthetic nutrients and fertilizers of all flavors. There’s more and more people moving towards probiotics which is great and this show certainly supports. Do you have any tips or tricks for folks who are working large scale, things they might want to consider when moving towards and considering compost teas?

Tad: Yeah, I do. The first thing I would say is most people think they need to brew more tea than they actually do. Five gallons will cover up to a quarter acre per application. A 50-gallon brewer like the one that Tim Wilson makes will cover up to two and a half acres per application. It’s large enough for most commercial applications. We can put, take that 50 gallons of finished tea and then put it into, say, a larger reservoir that may hold 200 gallons of total water and add 150 gallons of dechlorinated water, then that is a way of getting an even application.

I don’t like to put the tea out through a fertigation or irrigation system because of the risk of biofilm buildup inside the tubing. I try to avoid putting bacteria and other things into these systems because they would require a lot of flushing and could be a potential issue. It’s something that you do need to figure out how you’re going to apply. It might be as simple as putting a sump pump into a reservoir and literally walking around with your thumb over the end of a hose. It doesn’t have to be high tech. In addition to that, it’s a great option for larger farmers and growers because it becomes really affordable and it’s a lot more affordable to put out a compost tea than it is to, say, be shoveling all this compost all around your property especially if you have acreage or are on a larger scale.

Shango: It sounds like it would save a lot of back breaking work just taking the most important parts of it, putting into a fluid and delivering it with a hose versus a wheelbarrow.

Tad: Yes.

Shango: Tad, that’s all the time we have for today. Thanks so much for being on the show and especially, thank you so much for taking part in all three shows. This three-part series has been really educational both for me and for the audience based on the fantastic support of e-mails we’ve been getting about having you on the show. Thanks for being here and sharing your experience.

Tad: Shango, I really appreciate it. I’d love to just sign off with a couple links for people that are, if they’re interested in learning more.

Shango: Yeah, please do.

Tad: I’m putting up information on our website at kisorganics.com. I have a hobby site called gardeningwithmicrobes.com where I have a few different articles on compost tea. You could go to logicalgardener.org, that’s a forum that Tim Wilson and I share that has a bunch of great information on compost tea and natural gardening. Then, lastly, Tim Wilson’s site, Microbe Organics, has a lot of great info as well. There’s a ton of good information out there for people who want to learn more. Jeff Lowenfels’ book, Teaming with Microbes, is a wonderful resource as well. I hope more and more people will turn towards this style of gardening and growing. I’m excited to see what the future holds.

Shango: Fantastic. That’s all great information. Again, Tad, thanks for sticking with me through this respiratory infection that I’ve got today. I’m glad that you were a podcast guest pro at this point so you can help carry the show today.

Tad: I hope you start feeling better.

Shango: Right on. Thanks a lot. You can find out more about Tad Hussey and Keep It Simpler Organics on their website at kisorganics.com. You can also view Tad’s entire presentation at CannaCon Seattle this winter in the video section of the Ganjapreneur.com website. If you miss the first two parts of this three-part series, you can go ahead and also find those in the podcast section of the Ganjapreneur.com website. The first episode was on nutrient teas and the second was on building your own soil.

You can find more episodes with other guests of the Ganjapreneur.com Podcast in the podcast section at Ganjapreneur.com and also in the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news, product reviews and cannabis jobs updated daily along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. Do you have a company that wants to reach our national audience of cannabis enthusiasts? E-mail grow@ganjapreneur.com to find out how. Today’s show was produced by Michael Rowe. I’m your host, Shango Los.

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The city of Vancouver, B.C. has filed injunctions in the B.C. Supreme Court to close down 17 of the city’s 55 unlicensed marijuana dispensaries.

Vancouver became the first city in Canada to regulate and license medical marijuana retailers in June, 2015. However, only six percent of dispensaries that applied for a license were successful, and dozens of shops have continued operating despite repeated warnings from city officials.

City officials say that the 17 dispensaries were targeted because of “their proximity to other shops, their response to enforcement action and community feedback,” CBC News reports.

According to chief licensing inspector Andrea Toma, the city will eventually seek injunctions against the remaining 38 dispensaries.

This development follows shortly on the heels of the already infamous ‘Operation Claudia,’ in which dozens of medical dispensaries in Toronto were raided by local law enforcement earlier this week.

Medical cannabis is legal in Canada, but producers must be properly licensed and can only dispense medicine through the federal mail — a system that many consider to be unsympathetic toward patients who may have particular concerns or needs that cannot be met with the current online shopping methods. The Canadian federal government has promised to legalize cannabis for recreational purposes sometime in 2017.

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Nebraska Researchers Obtain Pilot Hemp Crop Permit

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Researchers at the University of Nebraska-Lincoln have obtained a permit to begin doing tests on growing industrial hemp as a field crop.

According to UNL Professor Ismail Dweikat, researchers plan to have a crop planted by the end of the year — though the university’s hemp seed importation requests are currently awaiting approval by the U.S. Drug Enforcement Agency (DEA).

Once permission has been granted, it’ll take another three weeks for the seeds to arrive, said Héctor L. Santiago, assistant dean of the Agronomy Department’s Agricultural Research Division. The university plans to save seeds from this year’s harvest to use for further research crops next year.

Dweikat said if the seeds have not arrived by June 15, the state’s first hemp crop will have to be started in a greenhouse.

According to the Lincoln Journal Star, researchers will investigate several factors of concern to farmers curious about growing hemp, including best practices for plant spacing, nitrogen rates and harvesting techniques, and whether or not a hemp crop endeavor could actually turn a profit in Nebraska.

The federal government lifted the ban on hemp farming in 2014, but only for states that already have some form of hemp legalization law on the books. The Nebraska legislature moved last year to allow only universities to research industrial hemp.

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A collection of clones on display in a California cannabis dispensary.

Minnesota Officials Investigate $500,000 Worth of Missing MMJ Oil

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Authorities are investigating a Minnesota-based medical marijuana producer over the alleged illegal transport of $500,000 worth of medical cannabis oil, according to a Star Tribune report.

A former employee at Minnesota Medical Solutions has accused the licensed cannabis producer of transporting the oil illegally from its production facility in Minnesota to its parent company’s New York location, which was reportedly short on its production deadline at the time. The search warrant was filed May 26 in Hennepin County.

“We are confident the claims relied upon by regulatory authorities to begin the investigation will be found to be false,” the producers’ parent company Vireo Health said in a statement.

The former employee said they had been privy to a conversation among several MinnMed administrative officials, in which a significant inventory of cannabis oil was said could maybe “rescue New York.” According to the employee, the company’s chief medical officer (CMO) offered to drive the oil via armored car to New York and “make the inventory disappear.”

Health officials audited MinnMed’s Otsego location in May and found a missing inventory page from Dec. 16, which tracked product transfers out of the facility. Investigators also noted that there had been several product transfers in December with no recorded destination. Furthermore, many of said transfers were conducted after-hours, something that health officials eventually learned was “out of the ordinary.” In total, these transfers involved more than 5,580 grams of cannabis oil.

Vireo has released a two-page statement that says their New York location was not low on inventory and that the missing oil had been destroyed. The company said the discrepancies are a result of using tracking software designed for cannabis flower to account for oil products. According to the statement, this has led to dozens of transfers without listing a destination, “not just the small number of entries cherry-picked by the disgruntled former employee.”

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Legislative Oversight to Leave Washington Patients Without Access to Clones

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Unless the Washington legislature makes changes to the Cannabis Patient Protection Act (SB 5052) within the next month, medical cannabis patients will no longer be able to legally acquire cannabis clones, despite other rules granting patients the right to homegrown medicine.

Washington voters passed Initiative 502 in November 2012, which legalized adult use recreational cannabis. Then, the legislature approved the Cannabis Patient Protection Act (SB 5052) in 2015, which folds the state’s long-standing nonprofit medical cannabis system into the for-profit I-502 scheme. The bill is a broad overhaul of the entire medical cannabis system in Washington, and will be completely implemented by July 1, 2016.

Some changes include lowering plant count for patients, the addition of a registry, the addition of excise taxes, a decrease in possession limits, the creation of LCB-regulated collective gardens, and the law has resulted in the closing of innumerable medical cannabis dispensaries across the state.

Despite all the changes the legislature has forgotten an important part of having a functional medical cannabis system: the bill does not provide a mechanism for medical cannabis patients to acquire plant clones within the tightly regulated I-502 system.

According to Mikhail Carpenter, spokesman for the Washington Liquor and Cannabis Board (LCB), SB 5052 allows patients who are part of a LCB-regulated collective garden to buy clones from licensed I-502 producers. The law is silent, however, on where the vast majority of medical cannabis patients will access clones after the transition.

At the moment, patients can purchase clones at an ever-decreasing number of medical cannabis shops and at local medical cannabis farmers markets, such as the Patient Cannabis Exchange located in Tacoma, WA. Chuck Green, who runs the Patient Cannabis Exchange and owns Clones Northwest, said he will sell more than 200 clones in a week.

“Patients aren’t going to have a choice but to go to the black market,” Green said. “It’s the only place they’ll be able to get new starts. People are really starting to get nervous with July 1st right around the corner, and still no one knows how this is going to work.”

The LCB said they are working with their legal team to find a fix, but at the moment there remains no solution.

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Oregon Launching Early Access Edibles and Concentrates Market Tomorrow, June 2

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Oregon‘s early access recreational marijuana market will take an important step forward tomorrow, when access to low dose concentrated and edible cannabis products comes online for adults 21 and older.

Oregon voters legalized recreational pot in 2014 and, in a widely-respected attempt to replace the black market with a regulated industry, state lawmakers decided in the fall of 2015 to allow licensed medical marijuana dispensaries to serve as temporary retailers for the state’s recreational market. Since then, recreational consumers have been able to purchase flower, seeds, and clones from dispensaries, but edibles and concentrates have remained off-limits.

As per the new rules, dispensaries will be allowed to sell:

  • One unit of a single-serving, low-dose cannabinoid edible to an individual per day. A unit of a low-dose cannabinoid edible can contain more than one edible as long as the total THC in the unit does not exceed 15 milligrams.
  • One prefilled receptacle of a cannabinoid extract that does not contain more than 1,000 milligrams of THC to an individual per day.
  • Nonpsychoactive medical cannabinoid products intended to be applied to a person’s skin or hair.

The rules also require that all edible products in Oregon dispensaries be clearly labeled for THC content, and the Oregon Health Authority suggests that consumers start with “less than the 15 mg per unit limit and wait at least 90 minutes and up to four hours before eating or drinking more.”

Officials from the Oregon Liquor Control Commission (OLCC) are in the process of licensing recreational marijuana producers, testing labs, and research institutes. Many dispensaries are expected to pursue a license to continue serving the recreational market, and the state should begin awarding retailer licenses sometime this fall.

Somewhere between 1,200 and 2,000 license applications are expected during 2016, and the OLCC expects to award some 850 licenses before the year’s conclusion.

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Illinois Expands Medical Cannabis Program

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In a long-coming turn of events, Illinois lawmakers last week approved an extension and expansion to the state’s medical marijuana pilot program, according to a Chicago Tribune report. Changes made include extending the state’s pilot MMJ program to 2020 and adding post-traumatic stress disorder (PTSD) and terminal illness to the program’s list of qualifying conditions.

Gov. Bruce Rauner and the state’s GOP leaders agreed to the changes, belying a significant Republican deference to marijuana’s medicinal qualities.

The bill’s sponsor, Rep. Lou Lang (D-Skokie), thanked the governor and Republican lawmakers for their compromise and “improving a program designed to ease the pain and suffering of seriously ill individuals, including children.”

Other changes to the law mean that doctors will no longer have to “recommend” cannabis. Rather, they will only need to certify they have a standing doctor-patient relationship with an interested individual, and that the patient is diagnosed with one of the program’s many qualifying conditions. Additionally, patient and caregiver cards will now last three years instead of one, and the criminal background check process has been streamlined for medical marijuana card renewals.

“This is a great step in the right direction,” said Tim McGraw, director of the Medical Cannabis Alliance of Illinois and CEO of Revolution Enterprises, one of Illinois’ licensed medical cannabis producers. “The fact that Republicans and Democrats can agree on something is awesome. They deserve a lot of credit for seeing the light.”

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Michigan’s Office of the Auditor General to Audit State Medical Cannabis Program

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Michigan’s Office of the Auditor General will evaluate the Michigan Medical Marihuana Program (MMMP) to determine “the effectiveness of MMMP’s administration of the Michigan Medical Marihuana Act” and “assess MMMP’s compliance with legislative reporting requirements,” according to an announcement on the department’s website.

The OAG conducts both financial and performance audits of government departments and services.

Performance audits are conducted to find potential ways to improve state government operations, while financial audits are conducted “generally based upon state and federal mandates.”

It appears the MMMP audit will be of the performance variety as they investigate the “effectiveness” of the program, which Michigan voters established via a 2008 ballot initiative.

On its website, the OAG defines ‘effectiveness’ as “producing the outcome desired by the citizens of Michigan and mandated by the Legislature, and efficiency is a measure of useful services delivered compared with the resources applied.”

The site lists about 50 in-progress projects, including the MMMP audit for the office of Licensing and Regulatory Affairs (LARA). The OAG is also conducting a performance audit of the LARA-administered Bureau of Services to Blind Persons, and a financial audit of the Liquor Purchase Revolving Fund.

In their announcement, the OAG noted that the MMMP had 182,091 active patients with 34,269 active caregivers, received 81,090 initial applications and 22,879 renewal applications during fiscal year 2015. The program had spent $4.2 million over that same period.

The OAG estimates they will release their findings in “mid 2016.”

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Two Canadian Life Insurers Stop Treating Cannabis Users as ‘Smokers’

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Sun Life and BMO Insurance have reversed their long-standing policies on treating cannabis smokers the same as “tobacco smokers,” instead they will allow some marijuana users to be treated as non-smokers for life insurance policies.

Sun Life’s policy applies to cannabis consumers who do not use tobacco; BMO’s policy applies to non-tobacco smokers who consume up to two “marijuana cigarettes” per week, according to the National Post report.

“In our industry, we keep up to date with medical studies and companies update their underwriting guidelines accordingly,” Sun Life said in a statement announcing the change. “As a result, people who use marijuana are now assessed … at non-smoker rates, unless they also use tobacco.”

Until the change people who disclosed they only smoked cannabis were charged the same rates as tobacco smokers, which could be triple the rates of non-smokers.

Jonathan Zaid, founder of Canadians for Fair Access to Medical Marijuana, says the moves change the “huge discrepancy” in the way some medical cannabis patients were being treated while trying to get life insurance.

“It’s great that they’re recognizing that the old policy wasn’t based on science,” he said. “There’s no evidence that there is any long-term risk of cancer or anything equivalent to tobacco.”

Research shows that while marijuana smoke contains many of the same carcinogens as tobacco, there is little evidence of an increased risk for lung cancer in even habitual cannabis smokers.

Lorne Marr, broker of LSM Insurance, says his competitors are “trying to get an edge on other companies” as the number of Canadians who admit to using marijuana grows. Typically, a 20-year term, $500,000 policy with LSM costs smokers $148 per-month but just $53 a month for non-smokers. Marr expects other companies to follow suit.

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The flag of California flying in the wind.

Poll: 60% of California Voters Support Legalization

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Recent polling data from the Public Policy Institute of California (PPIC) indicates that at least 60 percent of California voters are in favor of legalizing recreational cannabis.

The Adult Use of Marijuana Act is expected to appear on California’s ballot this November, giving voters the chance to legalize cannabis possession and use for adults aged 21 and older.

The Act would create a Bureau of Marijuana Control within the Department of Consumer Affairs, which would set possession rules and establish a regulatory framework for the commercial production and distribution of recreational marijuana products. Estimates indicate that California — one of the world’s largest unique economies — could earn as much as $1 billion in annual taxes from a legal cannabis market.

The initiative enjoys support from California Lt. Gov. Gavin Newsome and financial backing from Silicon Valley billionaire investor Sean Parker, who has already donated $1 million to the campaign effort.

Legalization is heavily opposed by law enforcement and prison guard groups around the state.

PPIC data also showed majority support among likely California voters for an increased excise tax on tobacco consumer products, as well as raising the tax rate on earnings higher than $250,000 to increase education and health care funds.

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Dispensaries in Massachusetts Accused of Forcing Low-Income Patients onto Waitlists

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At least three of Massachusetts’ six medical cannabis dispensaries have placed low-income patients on waiting lists for discounted products resulting in months-long delays, according to a review of the program by the Boston Globe.  

The report is prompting action from the state Department of Public Health, who will now scrutinize dispensary hardship programs as part of their regular inspections. Under Massachusetts’ medical marijuana law dispensaries must provide discounts for anyone with a verified financial hardship without placing caps on the number.

The dispensaries in question claimed their financial hardship programs were full.

Scott Zoback, a spokesman for the Health Department said that any dispensary found violating the law “may be required to submit a plan of correction” but did not indicate whether violators would be fined.

New England Treatment Access (NETA), who operate dispensaries in Brookline and Northampton, have pledged to make changes to their program after being asked about their use of waiting lists by the Globe.

“We are immediately removing all patients from the waiting list, placing them in the hardship program, and restructuring our current hardship program in collaboration with the state,” the company said in a statement.

NETA said they had more than 100 patients enrolled in the hardship program at both of their locations, but did not say how many people were on waiting lists.

In Good Health, a Brockton dispensary, indicated they had no waiting list and offered low-income patients 10 to 20 percent discounts.

John Hillier, executive director of Central Ave Compassionate Care, declined to say whether his Ayer location used waitlists.

“Our focus is on building a financially stable operation that is able to serve all the registered patients dependent upon us, including those who do not qualify for the program,” he said in the report.

Alternative Therapies Group, in Salem, used a waitlist until May 2 – when state regulators determined the lists were not allowed. Executive Director Christopher Edwards said he had used the waitlist until regulators adopted a “slightly different legal interpretation.”              

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Ohio Medical Marijuana Campaign Suspends 2016 Legalization Effort

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The Ohioans for Medical Marijuana campaign has suspended a petition drive to put a medical cannabis constitutional amendment on this November’s ballot, according to a Cleveland.com report.

The decision follows the successful passing of a piece of medical marijuana legislation through the state House and Senate. The bill now awaits Gov. John Kasich’s signature. The governor hasn’t indicated yet whether or not he will sign, but a super majority of Ohio voters support medical cannabis and he is expected to either sign the proposal or ignore it, allowing the bill to automatically become law after 10 days.

Though the campaign originally announced the proposal would only bolster their efforts for a voter initiative this fall, the Ohioans for Medical Marijuana campaign has rescinded that notion.

The lawmakers’ bill doesn’t include everything the MPP-backed campaign wished for: patients will not be allowed to smoke or grow their own cannabis. Instead, dispensaries around the state will offer tinctures, concentrates and edible products.

“We make this decision with a heavy heart as we will surely disappoint our many volunteers, supporters and patient-advocates who invested considerable time and effort in our movement,” said campaign manager Brandon Lynaugh in a statement announcing the petition drive’s end.

“The legislature’s action on medical marijuana was a step forward, and thanks to the intense advocacy efforts of patients and their families, activists and our team the bill was vastly improved before passage,” Lynaugh said.

House Speaker Cliff Rosenberger was pleased with the news and said that it indicated a healthy, communicative relationship between the Ohio legislature and state voters.

“Thanks to the open and transparent process that began in the Ohio House in which voices from all sides of the debate were invited to testify, we were able to join together around a proposal that is both reflective of public opinion and protective of the state’s constitution,” Rosenberger said.

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Toronto Dispensaries Shuttered Following ‘Operation Claudia’

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Toronto police executed Operation Claudia yesterday, raiding more than 40 dispensaries in Ontario’s capitol city. The raids were followed today by protests in front of Toronto Police headquarters by activists who carried signs with slogans such as, “Patients deserve dignified access,” and “Stop busting the sick.”   

During a press conference by police regarding the raid, Mark Sraga, director of investigative services, said that the crackdown was due to the number of new dispensaries opening in the city in recent months and to ensure that no municipal bylaws were being broken.

In sum, Municipal Licensing and Standards officers handed down 79 charges. Forty-eight of those were for violations of the city’s zoning bylaw for using a property for a non-permitted use. Thirty-one charges were handed out for violating the city’s licensing bylaw for operating businesses in which foodstuffs were available for human consumption without the appropriate permits. Both charges carry fines of up to $25,000 for an individual and $50,000 for a corporation.   

Toronto Police Chief Mark Saunders said his department executed 43 search warrants at “unlawful storefronts selling marijuana.” Police levied a total of 186 controlled substance charges as a result of their findings.

“The project has been going on for a number of weeks as a response to community concerns and complaints about public safety regarding the drastic increase of these storefronts,” Saunders said during the press conference. “Since March the number of storefronts have more than doubled.”

On May 18, Toronto Police issued letters to 43 locations, informing them that they were “engaging in unlawful activity” and that they would be criminally charged if they did not cease operations, Saunders said.

Steve Watts, acting inspector for the drug squad, said police arrested 90 people, confiscating more than 269 kilos of dried marijuana, more than 30 kilos of “cannabis resin,” more than 24 kilos of hash, more than 27 kilos of THC pills and a “massive amount” of edibles – including 71 kilos of chocolate, 142 kilos of cookies, 129 kilos of candy, 64 kilos of sodas and liquids, and 126 kilos of “other oils and spreads.” Law enforcement officers also seized about $160,000 in cash and 23 grams of cocaine.

“We are cognizant of the nature of the legislation in this matter and … that’s why we took a measure approach and we took a joint approach with the city,” Watts said during the presser. “…One of the issues here is the quality control… there is no proper measuring, there is no qualitative analysis. They are all differing from store to store, so that’s where we run into the health and safety implications.”     

Brandy Zorburg, Queens of Cannabis owner, said her landlord had received a cease and desist letter last week and she closed her shop to protect her patients. Her dispensary was not included in the sweep.

“If they arrest me, that’s all right, we’ll just go to court about it and if that’s where they want to take it, fine,” Zorburg said in an interview with the Toronto Sun.

Individuals arrested in the raids are due to appear in court on June 19.

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Travel Guide Rick Steves Matching Donations to Maine Legalization Campaign

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World-famous travel mogul Rick Steves announced this week that he will be matching donations up to $50,000 made to this year’s effort to legalize cannabis in Maine.

“As a NORML Board Member, I am proud to announce that NORML is endorsing this initiative. And to demonstrate my commitment, I am going to match every donation up to $50,000, dollar-for-dollar,” Steves wrote in a blog post on the NORML website.

Steves will visit Maine throughout October and spread support for the Campaign to Regulate Marijuana Like Alcohol in Maine and educate about the benefits of legalization.

The initiative legalizes the possession of a limited amount of marijuana by adults at least 21 years old. Public consumption would remain illegal.

Adults would also be allowed to grow a limited number of cannabis plants at home, and possess the harvests of those plants. A regulatory system would be established to license retailers and professional cultivation, manufacturing, and testing facilities.

The initiative would also establish a ten percent excise tax on adult-use marijuana sales, which would help cover the costs of implementing and enforcing the regulations — medical cannabis sales will not be taxed. Localities would retain the right to ban marijuana businesses.

“Responsible adults should be able to use marijuana, just as they can use alcohol. … This isn’t about being ‘soft’ or ‘hard’ on drugs. This is about being smart – and controlling and regulating marijuana the right way,” Steves wrote.

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Ohio MMJ Bill Heads to Gov. John Kasich’s Desk

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A bill to legalize medical marijuana in Ohio has been sent to Gov. John Kasich’s desk for final approval before becoming law. It is not known whether or not Gov. Kasich plans to sign the bill, and a spokesperson for Kasich said that the governor will need to review the bill in its final form before making a decision, according to a Columbus Dispatch report.

The measure cleared the Senate by just three votes, and the House approved the Senate-made changes shortly afterwards.

“There is no reason why we should make Ohioans suffer any longer,” said Sen. Kenny Yuko (D-Richmond Heights), who worked closely with Sen. David Burke (R-Marysville) to squeeze the bill past opposition in the Senate.

The bill is far more restrictive than what most medical marijuana activists would prefer. As it stands, the proposal does not allow patients to smoke or grow their own medicine. Ultimately, the legislature’s bill is part of an effort to establish medical cannabis at the legislative level before activists take control of the issue during the fall elections.

That plan, however, may boil down to wishful thinking: Aaron Marshall, spokesperson for the Ohioans for Medical Marijuana campaign, said of state lawmakers that, “Their support for medical marijuana speaks volumes for eliminating any remaining biases against allowing doctors to recommend this life-enhancing treatment to patients in need.”

The Ohioans for Medical Marijuana campaign plans to continue its push for a November vote that would amend the state constitution and legalize a less restrictive program.

“This bill is not perfect, but it’s what Ohio patients need,” said Sen. Yuko.

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Republican U.S. Congressman Admits Recent Medical Cannabis Use

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Rep. Dana Rohrabacher (R-CA) became the first sitting U.S. Congressman in recent history to openly admit the use of cannabis, which is still considered by the federal government to be a dangerous, highly-addictive substance with no accepted medical value.

While addressing a group of activists representing the National Organization for the Reform of Marijuana Laws (NORML) on Tuesday, Rep. Rohrabacher said that he regularly experiences arthritis pain, having spent most of his life an avid surfer. “I haven’t been able to go surfing for a year-and-a-half and I’ve been in severe pain,” he said.

The Republican congressman explained that he recently attended a trade show in San Bernardino, at which he was shown a cannabis-infused topical. “It’s a candle and you light the candle, and the wax is in there and it melts down, and then you rub it on whatever you’ve got problems with,” said Rohrabacher. In the congressman’s case, it was his shoulder that suffered severe arthritis pain. “And you know what? I tried it about two weeks ago, and it’s the first time… in a year-and-a-half that I’ve had a decent night’s sleep, because the arthritis pain was gone.”

“Now don’t tell anybody I broke the law,” Rohrabacher continued after a brief explosion of applause. “They’ll bust down my door and, you know, and take whatever’s inside and use it for evidence against me. The bottom line is that… there’s definitely cannabis in there, and it makes sure that I can sleep now.”

Rep. Rohrabacher is one of Congress’ most outspoken advocates for the reform of U.S. marijuana laws. However, this was the first time that he openly discussed his own medical marijuana use.

The congressman’s full remarks can be heard in Russ Belville’s report for Cannabis Radio.

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NY Assembly Passes Bills to Improve MMJ Patient Access

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New York’s Democrat-led Assembly passed two bills yesterday to improve patient access to medical marijuana under the state’s Compassionate Care Act. A.9510 would authorize nurse practitioners and physician assistants to certify patients for the program, while A.10123 would require the Department of Health to list registered practitioners’ information on their website.

A.9510 is sponsored by Assemblyman Richard Gottfried (D), who championed the Compassionate Care Act for years before it became law. The bill would not only permit PAs and NPs to certify patients but it would provide them the same training as physicians to become registered with the program.

“New York law allows NPs and PAs to prescribe the strongest and most dangerous controlled substances, but not medical marijuana,” Gottfried said in a press release. “Patients in need should not be denied access to critical medication just because they are treated by a PA or NP.”

The measure passed the Assembly 100-30 and has been sent to the Senate Health Committee.

A.10123, sponsored by Crystal Peoples-Stokes (D), aims to overcome the “major obstacle” for patients of finding registered practitioners. New York has certified 600 physicians under the program, but there is no publicly available list of those doctors.

“As a result, severely ill patients are forced to cold-call doctor after doctor in hopes of finding one, or try to find information through social media or other potentially unreliable sources,” the justification of legislation says.

The bill allows practitioners who do not want to be listed to opt-out. The list would be made available 60 days after it became law.

“I believe that current law – both the Compassionate Care Act and the Freedom of Information Law – requires that this list be public, as was the legislative intent. But apparently it needs to be spelled out.” Gottfried, a co-sponsor on the bill, said.

The bill has been sent to the Senate Health Committee.

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Casey Hubbs: Extraction Lab Living

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Casey Hubbs is the extraction team leader and lab manager at Orgrow, a licensed cannabis producer and processor based out of Moxee, WA. Casey’s story is one that illustrates exactly how the cannabis industry is made up of ordinary people who have made the extraordinary decision to jump head-first into an uncertain career. She recently joined our podcast host Shango Los for a discussion about how she got her job after majoring in herbal science, how she became the go-to source for advice about medical cannabis in her community, and what her average day in the lab consists of.  Listen to the podcast below, or scroll down for the full transcript!

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


Listen to the podcast:


Read the transcript:

Shango Los: Hi there, and welcome to the Ganjapreneur.com podcast. I am your host, Shango Los. The Ganjapreneur.com podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers, and cannabis medicine researchers, all focused on making the most of cannabis normalization.

As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark, and give you actionable information to improve your business strategy and improve your health and the health of cannabis patients everywhere.

Today my guest is Casey Hubbs. Casey is the cannabis extraction team leader and lab manager at Orgrow, a producer and processor in Moxee, Washington. Casey graduated from Bastyr University in 2008 with a degree in herbal science. She’s a long time master formulator of cannabis topicals, tinctures, and edibles and now brings those wide range of expertise to cannabis product development and manufacturing.

Often on this show, we focus on CEOs and internationally known cannabis researches, but when you get right to it though, it is the industry’s middle management that is the backbone of making sure quality cannabis products actually reach the store shelves. Today we are profiling Casey for everybody who’s curious about what it’s like, daily life in a production cannabis lab. Welcome to the show, Casey.

Casey Hubbs: Thank you, Shango. Thanks for having me.

Shango Los: Casey, we got to start at the top. You went and put in all that effort and got your degree in herbal science at Bastyr and then you go into a new industry that’s in chaos. Why did you choose to take a career chance and delve into the cannabis industry?

Casey Hubbs: Right.

Yeah, well when I was a senior at Bastyr, I ended up getting pregnant with my daughter, which was completely unexpected, and I did not want to continue school. I wanted to take time off for her, so I didn’t further my education and I didn’t want to dive right into a career because I wanted to be a momma. I had a childcare background, and so I decided that I would just take that a little further and start a business on a little island that I worked on and I did that for six years. I was actually really successful at it, but then once Isla started school I wanted to get back into the herbal medicine. I had started working with some people on cannabis. My best friend’s mom actually came down with a really aggressive form for rheumatoid arthritis, and she was a little worried about taking opiates and narcotics for her pain and wanted to start using cannabis, which ended up being really great for her because she also was doing chemo infusions to help knock out her immune system.

We started playing around with it and I kind of fell in love with it and then decided that because I was successful with her, it kind of opened up a door to these new people that I was meeting that were more involved in cannabis. One thing lead to another, and I decided to take a leap of faith. I had lot of student loans to pay off and put a couple resumes in and one thing lead to another and here I am today, working for a large tier-three grow.

Shango Los: You know, it is pretty powerful how when the people in the community find out that you know how to both process cannabis into a product that’s highly usable, but also you know how to recommend its usage for the patient, how suddenly you become the community expert and everybody wants to come to you.

Casey Hubbs: Yeah, definitely. I definitely had a leg up considering I knew how to work with plants and I knew how to extract plants and I knew about their constituents and their solubility. I didn’t know about activation for edibles and things like that in the very beginning, so I definitely had a large learning curve as far as cannabis. It was really, really exciting for me to see how it unfolded.

Shango Los: So. Go ahead, yeah. Sorry.

Casey Hubbs: No, that’s okay.

Shango Los: Right on. So there you are, you get your first job in cannabis. Of course, now you’re showered with a big salary and a title, right?

Casey Hubbs: Yeah, no. Actually I took a major pay cut to come put all my cards into cannabis, hoping that on the other side it was going to be successful and fruitful for me, and that I would have a career.

Shango Los: The other part that I know was the challenging part is that you were living on an island and then suddenly this job that you got was way on the other side of the state. What was that like for you? I mean, that must have been a hard decision to decide to move your family for a gamble in cannabis.

Casey Hubbs: Yeah, actually it was huge. I give a lot of credit to my husband for being supportive. The job that I ended up taking was in Moxee, and I grew up in Naches, Washington. So, one of the reasons that I could take this job here was that I had family support to help with my daughter. When we came over here we left our home, which I sometimes regret a lot as far as my daughter’s happiness and this sweet little community to back into the sticks. It’s been hard, but it’s been worth it, I think.

Shango Los: Right on, so cool. So we see the kind of struggle you went through to decide you wanted to try cannabis because you were excited about it and you had the skills for it.. So what were your initial responsibilities upon hire?

Casey Hubbs: I was hired at Orgrow to run their CO2 extractor, and to help them formulate. We were running an edible program at the time. We still are somewhat. We’re not offering as many edibles at this time, but we’re still continuing that program. To find out how to manipulate the oil, get it into pens, come up with a sell-able product, help them formulate tinctures and capsules, and other products as well.

Shango Los: You know, it really is a pioneering position because a lot of the corporate memory and business intelligence that is now readily available for states that are normalizing now, people like you in the early days of Washington were all in your own labs trying to figure out how to do this. Yeah, sometimes you guys were trading information via the internet or over drinks or something. But really, it was a whole bunch of mad scientists in 502 production labs trying to make the damn viscosity of the oil run for the cartridges, right?

Casey Hubbs: Right, right. Yeah. I have to tell you, I had a lot of really frustrating days. I thought I was going to come in here and it was all going to fall into place and I was going to be making tinctures all day, which I could do. Really it was beating my head up against the wall over and over and over. I had lots of frustrations, a lot of anger, a lot of second guessing why I had moved out here, and a lot of tears really, but I’m stubborn so I persevered. We definitely had some consultants come in and give us some direction, which was really helpful. Today we’ve kind of arrived at a place where I think we can be competitive and we do understand the oil. Finally, after about two years, we’re here.

Shango Los: Right on. So a lot of people, they think about the glamour of working in cannabis. Like, “Aw yeah. I’m gonna formulate, I’m gonna manufacture this stuff.” It’s gonna somehow look like it does in Disney, where you’ve got birds flying in the oil to you, a butterfly bringing you the edible.” It’s not like that. It’s kind of grimy, isn’t it? When you’re doing production things are getting tipped over, things are not being purged right, you have to start over again. I can imagine that that would be really frustrating trying to invent the wheel for the first time.

Casey Hubbs: Yeah, absolutely. We definitely went through a lot of product in the beginning. A lot of R&D. I think myself, as well as the company I was working for, was getting kind of frustrated with it. You’ve gotta worry about the color, you’ve gotta worry about the waxes, you’ve gotta worry about temperatures and parameters. It all feels like you’re losing your mind a little bit and then all of a sudden things start making sense and you have these moments of: “Oh my gosh. Right! Okay, that makes sense.” And you move on to the next step. It really is building it up piece by piece by piece.

Some people want to offer help, and other people don’t and they feel very proprietary about their information. They’ll give you bits and pieces and then the rest of it you put together like a puzzle.

Shango Los: Right on. I want to ask you one more question before go to the break. After the break we’re going to talk about some of your successes. But I want to put you on the spot right and ask you, will you describe one of your utter failures?

Casey Hubbs: Oh. I have a lot of them, I think. Yeah, I have one. We were developing, we were looking at topicals. We were playing with a chapstick. We had several samples set up for people, especially the owners to give to the board, which is what we did with all of our products. I was working with another gal that was in the kitchen with me. We made all these chapsticks and went and handed them out. The next day one of the owners, our general manager, CEO/base principal came back in and his lips were all red. He was like, “This didn’t work for me. My lips felt a little burned.” I think that was probably one of the biggest embarrassments. I spill a lot, so that happens in the lab, too. Anybody that’s working with this oil, especially winterized oil, knows that the minute you have one drop anywhere you have a complete disaster. That’s going to be there until somebody rubs enough dirt on it to be able to see it. It’s a very messy, dirty process.

Shango Los: That’s awesome. Thank you so much for sharing that story. We’re going to take a short break and be right back. You’re listening to the Ganjapreneur.com podcast.

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Welcome back, you are listening to the ganjapreneur.com podcast. I am your host, Shango Los. Our guest this week is Casey Hubbs, extraction team lead and lab manager at OrGrow.

So you were such a good sport, Casey, before the break telling us about an abject failure of yours. Let’s turn it around and talk about some of your successes. You were describing in the first half about how startup environment and things were chaotic. Because Washington was one of the first states to normalize, you and other people like you in the state were trying to figure out how to do all this stuff for the first time. Do you remember the first moment when you had the realization that things were actually coming together?

Casey Hubbs: Yeah, I do. I do. It was only pretty recently, actually. About six or seven months ago we launched our Nova Cartridges, which is our vape oil, our CO2 extracted oil. We got picked up by a few stores across the state that wanted to carry our product exclusively. That was kind of my first hint at, oh wow we’re doing something right here. Then from that moment on I think my confidence became stronger and a little of the pressure was off so that I could really focus on some more of our techniques. A couple of months after that … I was really fighting with CO2 a lot. It just wasn’t doing what I needed it to do.

The market really wanted those concentrated, so shatters and waxes. I was having a really time with CO2 doing that. So I wanted to explore other options of extractions. Something that I was extremely with was ethanol. That’s what I learned at Bastyr was ethanol extracts. I was worried about hydrocarbons. It wasn’t something that I felt good about. I know there’s a huge culture and they make amazing extracts and with the parts per million (ppm) being monitored the way that they are and the analytics. It’s not that I don’t think it’s safe, it’s just that I didn’t want to make that product.

So we started playing with ethanol. I just did a ton of research and I had a lot of people who were willing to talk with me about a few of their processes. I put my own spin on it and all of a sudden our stuff was selling. People wanted it so much that I was running a two liter rotovap and I couldn’t keep up. So we ended up getting some more equipment through Genius Extractions based in California. We purchased their twenty liter rotovap. He came in, he meaning Richard, one of the brothers that’s involved in the company, came in and looked at our product and went, “Oh my gosh, that’s ethanol?” In that moment, I think I really married it. He said, “Wow, I’ve been across the country,” and he said, “I think you are probably top 5%.” In that moment I thought we’ve arrived, we’re good, I can let some of the pressure go. I think that’s what I feel most proud of right now.

Shango Los: You know, that’s a really good point, too. That kind of encouragement when you are doing your best, you know that the sale of the product that you’re developing has got a lot of people’s paycheck riding on it, you’ve gotta get encouragement from somewhere. Sometimes that encouragement comes from upper management. Sometimes it might come from a consumer who reaches out to you and says this is a damn good job. In this case it comes from a vendor who can give you a really educated opinion. That’s really great that that happened for you.

So I know that you have developed a whole line of products for OrGrow. What’s another one that you feel really proud of?

Casey Hubbs: I really like our capsules. I haven’t gotten to get so much into formulating, which is what I’m really excited about. We do edibles and stuff like I said before. We’re working on our concentrate department. That’s kind of where our main focus has been. We’re starting to look into other products as well, but our capsules, we take really great care to preserve our terpenes during our decarboxylation process. I really think that that has a huge effect on the delivery of our products. So the capsules, we have only done a small test market with them but the feedback has been very great for us.

Shango Los: That’s a good point. A lot of people don’t realize how important it is to preserve those terpenes. Some of the processing styles are really ruthless on the whole plant extract and suddenly your terpenes are gone, and terpenes are an essential part of true cannabis medicine. Even if you’re not taking it technically as medicine, if you’re taking it recreationally, recreationally is still relief medicine. It’s the terpenes, the aromatherapy of the cannabis plant that kind of sculpts what your high is like. So if you want the medicine to have any kind of personality, you’ve gotta preserve all that stuff.

Casey Hubbs: Yeah, absolutely. I believe in the entourage effect 100%. That’s one of the hard things about using ethanol, because ethanol is really known for depleting those terpenes in the products. We’re pretty careful about how we handle it and so far our feedback has been really, really good.

Shango Los: Right on. So for those who are listening who are coveting your job, give a little description of how your job has evolved from when you first started to now. I know that you’ve gotten some more responsibilities, but how did that progress go?

Casey Hubbs: So when I got hired on at OrGrow I was supposed to help them formulate products, understand the analytics behind the testing, and to run the CO2 extractor. That was it. But there was only about three of us full-time employees at the time, so it was all hands on deck. However, over the course of the last couple years or year and a half, we have lost a lot of people and we have implemented a lot more into what’s required of us. Now I prep all of the lab samples, the samples go out. For analytics we prioritize as far as extraction goes. The kitchen, help with the kitchen, proper homogenization. Everything from biotrack to seeing things get delivered out the door, so quality control. Communication between packaging and sales. Consulting for problems in the garden. Consulting with labs. Dealing with all of the vendors that we use for products. The list really goes on, and on, and on.

Shango Los: That really is the magic of middle management, right? You pretty much listed every aspect of a producer/processor expect for getting the investment capital and sales. So everything that’s happened in the building, you are a part of. I think there’s two important lessons about that. Number one: that working in a startup you’ve gotta be willing to wear a lot of hats and not be a prima donna about the part that you do. Also, for those who feel like they are an expert in one category, that if they really want to be successful at a startup it’s good to have things that you’re a master at, but also have some knowledge in all the other categories so that you can throw in some help in a jam.

Casey Hubbs: Absolutely, and be humble enough to go shovel snow if that’s what’s required of you.

Shango Los: Right on. That’s right, I forget you’re over there in eastern Washington. You actually have snow.

Casey Hubbs: We have snow. We had a lot of snow this winter, actually.

Shango Los: Right on. So again for the folks who are imagining themselves in your job, and this request may seem a little mundane to you, but I’m actually curious about it, walk us through a typical one of your days. It can’t always be like massive, awesome brilliance. Walk us through what a day of yours looks like.

Casey Hubbs: Right. Well, most of the time I’m running around like a chicken with my head cut off just shouting orders and trying to process. I get here and the first things I like to do is prioritize. So what I’ll do is I have boards that have Monday through Friday on them because our product, as it goes out, has to sit in quarantine for 24 hours. If you don’t have all your ducks in a line and your packaging and quality control isn’t finished, you can’t quarantine on time to get your sales out the door for delivery. Basically, that’s probably one of my number one priorities in the morning.

So I’ll come in, prioritize, see what needs to go out, make sure someone’s on packaging so that that can be finished. From there, I’ll check in to see where I am at in processing. So that’s the rotovap or short path or what’s being frozen or winterized and figure out what needs to happen with that. Then, also pick out what we’re going to run next and whether we have enough of one strain hitting the sativa, the hybrid, the indica coming down the pipe to make sure that we can fill all of the shelves with whatever people want, right. Then after that basically it’s just making sure that everything is labeled and converted in bio-track so that we’re following the LCB guidelines. Then pretty much wrap it up at the end of the day with clean up, which is pretty typical.

Shango Los: It’s interesting, because what you are describing are the non-sexy parts of the job. If we were to take out the word ‘cannabis’ and put in any other food product, it just sounds like you’ve got a job.

Casey Hubbs: Right. Yeah, it’s very, very similar to agriculture. I mean, that’s what it is. I think that all the time that this seems really glamorous and exciting, and cannabis is. There’s a lot of really cool things happening with cannabis and in the industry, but at the same time and at the end of the day, you’re right. When you remove the name cannabis it is just another profession.

Shango Los: Awesome. So we’re gonna to take another short break. When we get back we’re gonna talk about the gear in your lab. You are listening to the Ganjapreneur.com podcast.

The Ganjapreneur.com podcast is listened to by tens of thousands of cannabis entrepreneurs and enthusiasts every single week. These folks are most likely your target customers and we’d like to introduce you to one another. Our down to earth and information-rich commercial breaks can deliver your message to the cannabis business community and others who just find relief in getting high. If you want to reach out and connect with our audience in the most personal way that we can offer, go ahead and drop us an email at grow@ganjapreneur.com and we can talk about you becoming a commercial sponsor of the podcast. Thanks for listening and being part of the Ganjapreneur family. Now back to the show.

Welcome back. You are listening to the Ganjapreneur.com podcast. I am your host, Shango Los. Our guest this week is Casey Hubbs, extraction team lead and lab manager at OrGrow. Before the break we were talking about the things that can go right and wrong in the lab. We were talking about some of the products that you’re most proud of. I now that we have got gear heads who are listening to the show that are all like, “But what’s in her lab, man?” So let’s put that on the pedestal for a moment. Why don’t you break down the gear in your lab and any thoughts you might have about them.

Casey Hubbs: Sure. Right now as far as vacuum ovens, I’m running the TVO-5 with Cascade Botannical. I also have one of the smaller version of the Across International. Both of the equipment are super strong and both definitely have some weaknesses that I would probably wish to combine the two and make the perfect machine. But overall I’m actually pretty satisfied with Cascade. I really love that they’re a local company and their tech support is phenomenal.

As far as extraction equipment, right now we have a big 8×8 walk-in freezer that we’re doing a lot of our processing in. We recently purchased an extractor from Genius Extractions, we’re running the 20 liter. So far I’m really excited about. It has made our production go up by so much, and the quality of the product is still holding true to our smaller rotovap, which is a Buchi. I have run my Buchi for, oh my gosh, a little over a year and never had a hiccup with it. It has been a phenomenal machine.

So the CO2 extractor that we’re using is an Apeks. It’s been a work horse. We have had a lot of problems with it. As Apeks grew we kind of lost them on customer service a little bit. I don’t have anything bad to say about it, it actually put out a great product that I actually love for my pens. Great terpene preservation, but like I said we bought one of the first models so they did a lot of research and development in between the time period that we had purchased that and now and our machine is pretty much obsolete.

That’s about it for equipment. I do have a short path that I use. We’re using Hulabo and I’ve actually had some problems with, so we’re looking into the Heidolph system. Overall they’re all great, they’re all great piece of equipment. Nothing’s perfect, of course. There’s a lot of learning. The learning curve is huge, but I’m pretty happy with all of them.

Shango Los: You know, one of the things that you mentioned that I think is important to point out is how quickly the revs of these products are coming. Because the market is so new and a lot of these products have been developed specifically for cannabis, some haven’t. But the ones that haven’t, they are now being reapplied to this new industry. So they put out a new product, they get all this new feedback, and suddenly they’re like, “Oh my gosh. We’ve gotta upgrade this.” So now there’s a new version of it, but you just bought the old one eight months ago or whatever. I think that’s a really important thing both for, entrepreneurs who are going to set up a lab to remember, and for companies that are designing these, that everyone should be prepared for rapid development of these new technologies. It is a petri dish of creativity and feedback right now.

Casey Hubbs: Yeah, it is. Absolutely. I would say that one of the best ways to keep yourself informed if you are looking at purchasing equipment is to go to the shows. I have gotten so much information from going to shows where the equipment is set up. Even analytical labs, they have a lot to say about the product that they’re seeing. Everything is private, but they still can talk about the different equipment. That was really helpful for me.

Shango Los: Right on. So let’s wrap up with talking about the actual lab management. It is one thing to be an extraction technician and it’s something else to be responsible for that the lab is actually functioning. It’s a higher level of organization that’s gotta take place. What are some of your experiences with actually managing the lab that are worth remark?

Casey Hubbs: Right. That’s actually been a really hard transition for me. I came in kind of in control of the lab because really the investors that I worked for, the company, was non-marijuana people. So I had marijuana knowledge, but needed to sell them on it. Basically tell them, okay this is what I see, this is what we should do and they were super, super supportive of that. But I also made a lot of friends in those first beginning stages, along with coworkers who were helping me. So I think going from being friends to being professionals was a pretty hard transition. Also, the biggest thing is making sure that you’re tracking. You have to track everything. It’s easy to go in there and make products and R&D on different things that you’re developing, but then tracking that and making sure that you’re being conscientious of how the company is spending money on you and the people that are working under you is pretty stressful. It’s definitely a different game.

Shango Los: Right on. Cool, well thanks for explaining that. That’s all the time we’ve got. Time for us to wrap up. Casey, thanks so much for being on the show. It’s really nice to hear a day in the life of somebody who’s really actually doing it and putting the cannabis on the shelves, so thanks for sharing your story.

Casey Hubbs: Thank you so much for having me, Shango.

Shango Los: Casey Hubbs is the cannabis extraction team leader and lab manager at OrGrow, a producer and processor in Moxee, Washington. You can follow Casey’s Instagram for lab photos at @herbal_majesty.

You can find more episodes of the Ganjapreneur podcast in the podcast section at Ganjapreneur.com and in the Apple iTunes store. On the Ganjapreneur.com website you will find the latest cannabis news, product reviews, and cannabis jobs updated daily, along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play.

For info on me and where I will be speaking, you can go to shangolos.com. Do you have a company that wants to reach our national audience of cannabis enthusiasts? Email grow@ganjapreneur.com to find out how. Today’s show was produced by Michael Rowe. I am your host, Shango Los.

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Stoned Sheep Cause Chaos in Quiet Welsh Village

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In a truly unique story out of South Wales, a flock of “stoned sheep” is reported to have wandered through and caused havoc throughout Rhydypandy, a small countryside village in the Swansea valley.

The sheep are believed to have eaten remnants from an illegal cannabis grow op that had been dumped just outside of town, local sources report.

According to county councilor Ioan Richard, sheep have been “roaming the village,” causing havoc and upsetting citizens. “They are getting in people’s gardens and one even entered a bungalow and left a mess in the bedroom,” said Richard.

Richard, who has been publicly grappling with illegal dumping in his area, also said that if the mess wasn’t cleaned up quickly, “we could have an outbreak out of psychotic sheep rampaging through the village.”

A Swansea County spokesperson said that the county acted swiftly in cleaning up the illegally-dumped refuse, but wasn’t sure whether or not any sheep had actually consumed some of the cannabis.

“The fly-tipped [illegally-dumped] waste has now been removed, but we’d urge anyone with information about who may be responsible to contact either ourselves or South Wales Police. Fly-tipping has a negative impact on local communities, so we’re doing all we can to both prevent it and clean up as quickly as possible at known hot spots. We also investigate all cases of fly-tipping and will take enforcement action if there’s sufficient evidence.”

It seems worth noting that public officials in this scenario appear most concerned with the dumping violation rather than the illegal cannabis grow — a sign of shifting public opinion.

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House Speaker Paul Ryan Believes CBD Law Will Pass Congress

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House Speaker Paul Ryan believes there may be enough Congressional support to pass a law that would legalize CBD oil for the treatment of childhood seizure disorders, according to a Channel3000 report.

Ryan first endorsed legislation to legalize CBD oils in 2015 when he signed on as co-sponsor for Rep. Scott Perry’s (R-PA) bill, which seeks to remove hemp and CBD-rich cannabis products (with less than 0.3 percent THC) from the definition of marijuana under the Controlled Substances Act. The bill has stalled in recent months, but Ryan said he thinks they will ultimately get the support needed to send on the proposal.

“It’s going to take a while to get through the legislative process just like any other bill in Congress,” Ryan said. “This oil does not have THC in it, so therefore it really shouldn’t be lumped into the category of anything close to legalization of marijuana and that’s the confusion that typically surrounds the issue.”

“Once you get people through the confusion that surrounds this issue, I think people agree this is a good thing and there’s no reason to oppose this,” Ryan said.

While it’s heartening to see enthusiasm for cannabis reform on the federal level — particularly among members of the GOP — it is worth noting that CBD-specific legislation is not the most ideal of legalization laws. In fact, treatments with CBD-only products have proven to be significantly less effective than whole-plant therapy, though elected officials either don’t care or remain unconvinced of this fact.

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U.S. House Seeks Tightening of Washington D.C. Cannabis Restrictions

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The GOP-controlled House of Representatives is seeking stronger restraints on Washington D.C.’s ability to reform marijuana laws, Tom Angell reports for Marijuana.com.

Current law says the District is not allowed to spend annual appropriations funding on “any law, rule, or regulation to legalize or otherwise reduce penalties associated with the possession, use, or distribution of any schedule I substance.” This means that the District could technically spend money on marijuana reform if it was sourced from outside of a federal appropriation bill.

New language proposed in the House Appropriations Committee, however, changes the restrictions from blocking only appropriated money to any funds that are “available for obligation or expenditure by any officer or employee of the District of Columbia government” — this means that zero government-sourced funds, even contingency reserve funds, could be spent on establishing local cannabis regulations.

Washington D.C. voters passed a referendum to legalize and regulate recreational cannabis in 2014 with a 70 percent super majority of the popular vote. City Council member David Grosso wrote in response to the Republican effort to squash the District’s autonomy, “I wish they would get a life and let D.C. elected officials … do our jobs.

Unsurprisingly, presidential preference lands on the side of D.C. autonomy, according to a statement issued yesterday. “The Administration strongly supports home rule for the District and the President has long called for authority allowing the District to spend its own local taxes and other non-Federal funds without congressional approval.”

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Nasdaq Denies MassRoots Application; Company Plans Appeal

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The Nasdaq has denied the application of MassRoots, the social media platform designed for cannabis enthusiasts, to have its shares listed and traded on the stock exchange, according to a Denver Post report.

MassRoots CEO Isaac Dietrich said he has asked for a written denial instead of voluntarily withdrawing the application and plans to appeal to the Nasdaq Listing and Hearing Review Council and, if necessary, to the Securities and Exchange Commission.

Currently MassRoots is traded “over the counter,” (OTC: MSRT) subjecting them to less stringent regulations than the “big league” exchanges. Yesterday, the same day the rejection was announced, those shares dropped more than 18 percent, closing at 74 cents. Their all-time high was $2.59 on April 21, 2015.

Dietrich said Nasdaq officials seemed hesitant about allowing MassRoots onto their exchange during a meeting last month.

“I don’t think they want to be trailblazers on this,” he said.

The market requires specific financial liquidity criteria which also includes language that allows them to block a listing “if necessary to protect investors and the public interest.” Dietrich says there is some hypocrisy at work if his application is being denied because his business is marijuana-centric. British bio-pharma firm GW Pharmaceuticals is currently listed on the American exchange and its cannabis-derived epilepsy and multiple sclerosis drugs are being considered for Food and Drug Administration approval.

“Right now, on the OTC, a significant portion of investors are unable to trade our stocks … and the institutional investors tend to stay away from the OTC,” Dietrich said in the Denver Post report. “It would’ve been a tremendous victory for the entire industry.”        

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Oregon Medical Growers Hope to Go Unnoticed in Rural Residential Land

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Many medical cannabis growers in Jackson County, Oregon appear to be opting out of a growing license that’s now required to continue cultivating cannabis on rural residential land. Individuals caught growing with a license could face fines of up to $10,000.

According to a Mail Tribune report, however, county officials said they won’t be actively hunting down illegal growers. Rather, they will only investigate cases based on reports of a suspected illegal grow, or complaints from a neighbor.

Only seven people have filed applications with the county for a license to continue growing on rural residential land — Jackson County allows cannabis grows on farm-use and forest land.

“Some people may have moved onto lawful property. Maybe some decided not to grow,” said Jackson County Development Services Director Kelly Madding. “I also think there are people who understand we do enforcement on a complaint basis and they’re waiting to see if we come knocking on their door.”

Growers who have complaints filed against them will be given the opportunity to apply for a permit. Fines and other penalties will kick in if the grower refuses to seek a permit, said Madding.

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Panama President Signs Law Legalizing Medical Marijuana

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Ganjapreneur has received a tip that the President of Panama, Juan Carlos Varela, signed a law on May 19 that could legalize and regulate medical marijuana throughout the country.

We are still working on a complete translation of the document, but the law (written in Spanish) regulates “the activities and use of controlled substances for medical and/or scientific purposes.” Such substances must be prescribed by medical professionals and dispensed by pharmacists with the appropriate authorization.

The national change will apply universally throughout Panama and all of its territories, even extending to airlines, shipping lines and boats flying the Panamanian flag.

Under the new law, the Department of Pharmacies and Drugs will be in charge of implementing the changes, which will include establishing licenses and permits for the importation, exportation and distribution of the controlled substances.

In the past, Panama officials have been loudly outspoken against the relaxation of drug laws — recent international trends, however, demonstrate that global enthusiasm for continued drug prohibition appears to be dwindling. At the United Nations General Assembly Special Session on Drugs this year in New York, Canada, Mexico and Germany all announced major reforms to their marijuana laws.

We will release more information as it becomes available, but we are excited to see another domino fall in the international fight against marijuana prohibition.

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