Portland Dispensary Workers Sign First Marijuana Union Contract in Oregon

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Workers at a marijuana dispensary in Portland, Oregon have approved the first union contract for marijuana workers in the state.

Employees at Stoney Brothers voted unanimously to join United Food and Commercial Workers Local 555, which gives employees increased benefits and pay and, according to the union’s website, “sets a new standard for cannabis workers in Oregon.”

The three-year contract between the Stoney Brothers and the union sets base starting salaries at $15/hour for cashiers, $20/hour for trimmers, and $32/hour for master cultivators. The contract also provides for “regular raises, affordable health insurance through a multi-employer fund, pension contributions, paid vacations and sick leave, as well as seniority and grievance protections.”

Although the contract covers just three workers currently, Stoney Brothers President Trevor Reed says the company plans to open a second location in Astoria in the next several months.

Reed owns a similar marijuana business in New Mexico called “Natural RX,” the workers of which are also represented by UFCW.

Source:

http://nwlaborpress.org/2015/07/ufcw-secures-its-first-union-contract-for-cannabis-workers-in-oregon/

http://ufcw555.com/workers-at-stoney-brothers-approve-first-ever-oregon-contract-for-marijuana-workers/

Photo Credit: Stuart Seeger

 

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The Ideal Cannabis Business Plan

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Whether you are starting up a company for the first time or you are a serial entrepreneur, someone in your company will inevitably pop the question: “Should we write a business plan?” At this point, many might grumble and opt for the group to pick straws to determine who is going to write it. Simply put, a business plan is no easy undertaking. It requires a considerable amount of time spent researching your industry, scouting the competition, identifying your market, setting realistic milestones, establishing key value proposition, structuring company management, forming financial projections… the list could go on forever.

For better or worse, a business plan is absolutely essential. Not only does it improve your company’s internal operations by setting tangible goals for your team, it also validates your company from the perspective of investors, real estate companies, and the other business relationships key to your company’s success.

Do you think any of these parties enter into long-term business relationships with just anyone? Not a chance. They want to know that you are not just acting on gut feelings and are going to simply wing it. Much like qualifying someone for a romantic relationship, they seek a company that takes itself seriously and has its ducks in a row. The easiest way for them to assess this professionalism is by asking for a business plan.

Even as cannabis inches closer each year to the end of prohibition, the “reefer madness” stigma and stoner stereotype still remain for many people — and some of these people could be key to the success of your cannabusiness. This is why demonstrating your professionalism and overcoming stereotypes that work against you is more important than ever in this industry. And it all starts with a business plan.

Executive Summary

The legalization of recreational marijuana in numerous states has created a market and a great investment opportunity. Once federal law is liberalized to allow wider use of cannabis, which is the direction current developments have been leading to, this is going to be a sunrise industry with huge growth potentials. This section will describe the overview of your company, and what you’re trying to accomplish. For those investors who aren’t familiar with the cannabis industry, it might be important to include polls showing the growing demand for legalization of cannabis.

Objectives

This business plan reflects a desire to mine the wider legalization of recreational marijuana for the launch and growth of a cannabis-based business. The goal is to participate in and profit from activities in the various sectors of the industry—biotechnology, cultivation and retail and consulting services.

The plan will be carried out in two phases. Phase I focuses on the particular states that have legalized marijuana for medical purposes.  Under Phase II, the venture will be spread nationwide as legally applicable.

In the description, explain your mission (day-to-day objective) and vision (long term objective) for the company. Also, describe how these objectives will be accomplished, such as “leveraging X platform,” “supported by X”, etc. This section could also include a potential list of strategic partners and affiliates that would help you achieve these objectives.

The Team

From an investor’s standpoint, seeing positive resumes of the proposed partners makes their investment decision easier to make. They want to know that the partners have good work ethic and are prepared to dedicate the long hours necessary in the early growth phase of a company. Partners should also have a healthy diversity of backgrounds to ensure that each partner brings specialized skills and experience to the table.

This section will also be used to showcase why your team is the team has the capacity to win in your respective business venture. Clearly articulate how your backgrounds will allow your company to thrive.

Market Size and Development

Including research about the general marijuana market size against your company’s proposed market sector gives readers an idea of your company’s potential growth. This research draws some lines in the sand for which market segments your company plans to invest most of its energy. These market segments would include marijuana retailers, growers, infused products, testing labs, ancillary goods, and ancillary services.

Additionally, it gives you an opportunity to clearly define the kinds of customers you will serve (including age, gender, median income, location, etc…) Unless you have a comprehensive team and plan already created, it is wise not to try to capture the entire market in the beginning phases of your company, as you will be spread too thin and lack any direction.

Here is a sample of recent macro trends and insights into the marijuana industry as a whole:

Investment firm Viridian Capital & Research recently published its outlook for the cannabis industry in 2015, including a look at some 75 companies that participate in the various sectors of the industry. Viridian noted that marijuana-related firms raised $80.4 million in capital during 2014, with the three largest segments being consulting services ($20.1 million), ancillary cultivation and retail ($18.9 million) and biotechnology ($12.3 million).

Viridian also maintains an equal-weighted total return cannabis index that posted a gain in 2014 of 38.4%, primarily on the basis of a 939% return in the first quarter of last year. That is when sales of marijuana first became legal in Colorado. Sales began in Washington in June. Consulting services posted the highest return, 170%, followed by biotech (nearly 85%), infused products (57%) and cultivation and retail (33%).

The same investment firm noted that the estimated $10-billion sale of marijuana in 2015 is far too low. In effect, the industry could yield more.

Competition

No matter how unique your company is, there will also be another business competing in your chosen market vertical. It really does not matter who does it first; what matters is who does it the best. If you cannot identify any competitors, then your search has simply not been thorough enough.

Depending on the type of cannabis company you are trying to build, this will drive the type of competitive analysis that you build. The competition section is a great place to showcase the research that you’ve done on other companies operating in the industry and also allows you to convey why your company is different and worth investing in. For example, if you are building a technology related cannabis company, you will want to show all the features of your competitors and how your company’s features are different and better. This will also tie into your financial section where you will need to clearly convey that the additional features that you want to build will correlate to how much money you are seeking to raise.

A savvy investor will know right away if you’ve done your due-diligence on your company with regards to how well you researched your competition and why your company can do it better. In sum, don’t pretend that your competitors don’t exist. Acknowledge them. You may even be able to build a strategic relationship with them someday that could provide enormous value to both parties.

Brand Differentiation and Value Proposition

In terms of Value Proposition and Brand Differentiation (which may directly tie to your competition), below is a list of things to consider:

– Longer lasting
– Rarer
– Easier to use
– Safer to use
– More efficient
– Designed by someone cool or endorsed by a celebrity
– Greener/more ethical
– Approved by a respected organization

Company qualities (aka value propositions) like these are important to define as best you can early in your process. They will eventually inform how to brand your company to the public. Through the customer discovery process, you are sure to discover other needs and desires of your potential customers that you could not have anticipated. This is fine. As long as you treat your initial value propositions as hypotheses to be tested in the field, you will be able to respond to your customers’ true needs with agility.

Nevertheless, creating value propositions like these in the beginning will help guide your company and prove to anyone that you have some sense of direction early in your growth.

In terms of how your company interacts uniquely with its customers, explain how your cannabis products/services will endeavor to build relationships with customers and respond to complaints quickly and calmly. Delivery will be faster and hassle-free at all times. Offer online ordering where competitors don’t. Consider leveraging a digital “platform” much like Uber or Airbnb to connect consumers with your company and with each other.

Marketing Plan

A strategy that will be followed, even in combination with other tactics, is to reemphasize and even improve on what makes a business successful. A solid marketing plan will clearly show how you plan to approach the marketplace and acquire customers. You may also want to consider what the competitors are doing and how their strategies are lacking or how they can be improved.

Building a sustainable and repeatable path to the customers is one of the hardest aspects of a company so please make sure to pay special attention to this section as it can make (or break) your overall business plan.

Financial Plan

The financial plan is one of the most important parts of your overall business plan.  If you are seeking outside investment, either from an angel investor, bank, or institutional venture capital firm, you will need to clearly show where their money is going.  For example, if you are trying to raise $100,000 – where will that money go? Will it be marketing? Headcount? Research and Development?

This section may also tie in other aspects of your business plan.  For example, in your marketing plan, you may have Google Adwords as a strategy and found that your CAC (customer acquisition cost) is around $2.50 per new customer.  The more research and well-thought financial analysis you have, the more reputable and reliable you will come across.  Make sure to thoroughly research every dollar that will be spent.

Conclusion

At the end of the day, a well-written business plan not only gives your internal team more direction, but it also acts as your company’s resume for when third parties decide whether or not to do business with you. In other words, it can make or break you.

If you have doubts about your writing abilities, rest assured there are plenty of professionals out there who can help. There are even some good freelance business writers who bid their services online. Before using anyone to help, it’s always wise to have them sign an NDA to keep your business idea confidential. Keep in mind though, that there are many qualified professionals out there who will not, under any circumstance, sign NDA’s since doing so would open them up to unnecessary legal liability. As long as you feel comfortable with who you’re working with, there shouldn’t be any problems.  Hopefully we have provided you with the necessary tools to create a brilliant business plan that will thrive in the growing cannabis industry.

Photo Credit: waferboard

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Australian Political Parties Pushing for Medical Cannabis Program

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An Australian Senate committee comprising members from each of the country’s major political parties is working on a bill that would legalize medical marijuana there.

The Sydney Morning Herald reported that the coalition will “strongly recommend” that Parliament pass the bill, which would create a ‘medical marijuana regulator’ who would have the power to oversee all aspects of the medical marijuana sector, including production and distribution.

Although some have warned of regulatory complications concerning both Australian and international law, more than two-thirds of Australians currently support legalizing medical marijuana and just 9% of the country opposes it, according to a survey by Palliative Care Australia.

The Australian Health Department has come out strongly against the bill, insisting that it would create a regulatory gap and inconsistencies or conflicts with current laws, including the Therapeutic Goods Act.

Senator Di Natale has argued that the medical marijuana bill would not overlap with the Therapeutic Goods Administration, which approves and markets only pharmaceutical drugs: “I can understand why someone like Medicines Australia might be opposed,” the senator said last month. “It doesn’t conform to the model of a traditional pharmaceutical and some people would argue it is a competitor.”

Prime Minister Tony Abbott has in the past expressed support for a medical cannabis program, stating last year that “I have no problem with the medical use of cannabis just as I have no problem with the medical use of opiates.”

Source:

http://www.rt.com/news/310768-australia-marijuana-medical-legalise/#Australia%20may%20legalize%20medical%20marijuana%20in%20August

Photo Credit: Rexness

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Bill Approved to Allow Washington D.C. Marijuana Sales

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The Senate Appropriations Committee approved a Financial Services bill last week that would lift a ban on pot shops in Washington, D.C. and allow the capital to begin establishing a commercial marijuana market there.

The move would make the District the first eastern region in the United States to regulate marijuana like alcohol.

Although marijuana is currently legal to possess, cultivate, and transfer in the District, an amendment tacked on to a federal spending bill by Rep. Andy Harris (R-MD) put retail cannabis sales on hold.

D.C. Councilmember David Grosso had previously stated that a regulated legal market for marijuana sales could be put together by mid- to late-2016 if majority leaders in the House and Senate prevented D.C. budget restrictions.

The Obama administration’s 2016 budget plan contains specific language to allow D.C. to move forward with legislation regulating marijuana sales, and Rep. Harris released a statement announcing he would not introduce another amendment to block the program.

The amendment currently in effect is set to expire at the end of September 2015, at which point Washington D.C. can finally work on getting its retail cannabis market off the ground.

Source:

http://www.hightimes.com/read/bill-passed-would-allow-retail-pot-sales-washington-dc

Photo Credit: Greg Knapp

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Tyler Markwart

Tyler Markwart: The Case For GMO Cannabis

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In this podcast, Shango Los meets with Tyler Markwart, founder of Allele Seeds Research and Production Manager / Breeder at Monkey Grass Farms, a licensed Washington cannabis producer, to discuss the hot topic of genetically modified cannabis.

Tyler is a proponent of GMO cannabis and argues that there are many potential benefits that could come from making genetic modifications to strains. In addition to the possible applications, Tyler discusses some of the various methods that can be used and addresses the concerns that have been raised by consumers about GMO products.

Listen or read the transcript below!

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


Listen via SoundCloud:


Read the Transcript:

Shango Los: Hi there and welcome again to the Ganjapreneur.com podcast. I am your host, Shango Los. The Ganjpreneur.com podcast gives us an opportunity to speak directly with entrepreneurs, growers, product developers and herbalists, 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 our 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 Tyler Markwart and we will be talking about genetically engineered cannabis strains. Tyler Markwart is founder of Allele Seeds Research, an American cannabis biotech company. He’s grown and bred cannabis in warehouses, homes, and outdoors for both the commercial and early medical markets for over 20 years. Tyler studied organic agriculture and philosophy at Washington State University and produced award-winning research while working in WSU’s molecular plant science laboratory. His techniques are often referred to in books for growers, the New York Times and other publications. He’s also a syndicated journalist and photographer with High Times Magazine, the Northwest Leaf, Ladybud and Culture Magazine. He’s here today because he’s an outspoken proponent of the genetic engineering of cannabis. Welcome, Tyler.

Tyler Markwart: Hi, Shango and thank you very much for having me on the show today.

Shango Los: Glad you can make it. I had doubts that I want to be really clear about what we mean about genetic engineering and GMO for today’s show. There’s a wide ranging abuse of the term when reading the internet. When we say genetic engineering during the show today we are not referring to simple selective breeding and hybridization that humans have been doing for over 10,000 years. We’re talking about specifically inserting a foreign gene into a cannabis plant to get specific results. Is that a pretty good working definition, Ty?

Tyler Markwart: Yeah, that’s pretty good. It depends on who you talk to in the world of genetics or outside of the world of genetics. You’ll get a different answer on what a GMO is and what genetic engineering is. At the base of what we’re looking at today, we’re going to talk about inserting foreign genes: that’s transgenics. Moving one gene from one species, whether it’s a plant or an animal, into another specifically transgenics. When we have other things like mutations from radiation or chemical mutations, those are not transgenic but they are also genetically modified organisms.

Shango Los: I only know of one example of this. I’m sure you know a lot, but I’m into aquariums. They took a gene from a jellyfish and put it in a Zebra Danio to make them fluorescent and glow in the dark or rather glow under a blacklight. That’s the only one I know of. Can you give me another example of bringing of a different plant or an animal and putting it into a different species for transgenics?

Tyler Markwart: Yeah. There’s a lot that’s being done in the laboratory. There isn’t a lot that’s being released out into the market per se for commercial use and whatnot so far. The idea is you could remove the cold resistant genes from a salmon and put it into a plant, allowing that plant to exhibit better growth conditions under freezing temperatures or near freezing temperatures. One of the biggest things that we’re looking at is basically the ability to enhance growing capabilities, making them more efficient.

Shango Los: What is the goal of all of this? I know people are upset about the idea of genetic engineering about their food and then we bring this to cannabis, which totally brings out a lot of the cannabis enthusiasts, but you are constantly hailing this as something that can be very good for cannabis. What’s the goal of all of this? What are you hoping to gain by having success through this?

Tyler Markwart: The main goal is research and knowledge and wisdom and all the information we can pull from understanding the plant pathways better. Genetics covers a wide variety of different things from plant pathology all the way down to how single individual cells work and their functions operate.

We can actually take a look and we can better our own knowledge of humans by understanding plant pathways because we share similar pathways in each other. When it comes to cannabis what we can do is we can actually target certain things such as developing medicines for people.

If there’s a certain profile of cannabinoids and terpenes that we know works really good for multiple sclerosis or for ALS or anything like that, we can then target certain genetics and we can tag them and say, “Okay, these certain genes, which basically is like a computer code, we can take those genes and we can test for through them every single time and say these plants have those sets of genes and they have a better a chance of having the outcome that we’re looking for in the end.”

There’s also something that goes hand in hand with that: just because you have the set of genes that produces that doesn’t particularly mean you’re going to produce that desired results and that desired results can change in the way a gene is enhanced or expresses itself. If you express yourself really loudly, people are going to hear you. If the plant genome expresses itself really loudly, you may see purple color in the flowers. You may smell grapes or smell bananas. It also touches on a bunch of other things too with genetic engineering. It hits really two main people when we want to talk about it: the growers and it also hits the end consumer at the same time. The growers looking to be profitable, that’s mainly their goal so that they can have another season to plant another round of crop and live and pay their bills like everybody else.

Some growers, obviously, have more intentions for the medical benefits than others so that’s obviously great, but in the long run everybody needs to be able pay their light bill if they want to grow indoors. The consumer, in the long run, is looking for a good quality product at a low cost that they can continue to get at a regular consistency.

When you combine all this together what we’re really looking for is sustainability and that’s what these genetic engineering is allowing us to do is actually to become more sustainable by using less nutrients, making plants more efficient, understanding how plants operate so once we get a better understanding of that genetic pathway, we can learn about how applying other natural chemicals like Insect Frass to the plant will help it reduce its infestation against powdery mildew and other things.

Shango Los: It sounds like a lot of different people could benefit from genetic engineering just depending on what’s the particular research we’re wanting to focus in on.

Tyler Markwart: Yeah. It really comes down to what’s the end result, what are you looking for in the end, because it’s the same thing in what we do with breeding practices. If you have two plants, let’s say Purple Kush and you have Super Silver Haze. If your end result is to have a hybrid of those two plants where they exhibit the high from the Super Silver Haze but the growth characteristics from the Purple Kush, you’re designing a plant at the end. You’re genetically engineering the outcome.

With selective breeding it’s taking much longer. When go into the laboratory and you use processes like double haploid engineering where you’re basically taking one half to genome and copying it, reduce six to nine generations of selective breeding into one generation of breeding. You can get products to the market faster, which in the case of people like MS patients, ALS patients who are degrading every single day in their disease, this helps them address that much quickly.

Shango Los: That’s where the rub is, right? The push back that people have to genetic engineering is because it does happen so much quicker. Traditional hybridization is done generation over generation so it evolves out more slowly and so you can do additional testing and you can see how the plant is reacting and the whole is just a slowed-down process. Whereas when you’re inserting something in the genome and only takes one generation, it happens fast. What can you tell us about testing for genetic engineered cannabis? What would that look like? The safeguards are what people are really concerned about and causing the push back.

Tyler Markwart: Yeah. I guess it really comes down to what are you concerned about in your cannabis as far as genetic engineering goes and a lot of it comes to mass hysteria. A lot of people who are against genetic engineering or against GMOs don’t really have a good handle on the technology. The reason being is it’s a really, really, really difficult subject to understand. I’ve been studying it for just a short period of time of maybe five to eight years and during that time period, I still don’t have an awesome grasp on what exactly is happening compared to people who’ve been studying it for 60 years.

As we go along and we start getting a better understanding, we start understanding … I mean, prior to me going to the Washington State University, I was strictly organic. I grew up on a conventional farm where my grandparents pesticides, they used roundup ready corn and they did all that. I, as a teenager, went through this strictly organic camp and was like, “No GMOs, blah, blah, blah, none of that. That’s all horrible,” and I progressed into going to the lab at WSU where I got a real education on what was happening and I was able to get a better understanding of the technology.

It really is difficult to have a discussion with people when they just continue to say, “Hey, GMOs are bad,” and it’s like we have to sit there and discuss what actually a GMO is and then we break out. It’s very difficult to get pass that when it’s a very difficult subject to understand.

Shango Los: That probably I can imagine maybe you’re a pariah for a lot of folks. We’re going to come back and Tyler’s going to tell us about moving away from only organic growing and towards genetic engineering hasn’t made him a pariah. We’ll be right back.

Welcome back to the Ganjapreneur.com podcast. I am your host, Shango Los, and with us today is Tyler Markwart of Allele Seeds Research. We’re talking about genetic modifying cannabis. Before the break we were talking about your move from being strictly an organic cannabis farmer starting to get involved with research genetically engineered cannabis. Does this technology to do this already exist? If you would, explain specifically how one goes about inserting a foreign gene into the genome of a cannabis plant.

Tyler Markwart: Yeah. There’s not really that much genetic engineering happening right now with cannabis just because the fact that cannabis is still Schedule 1 substance in the United States. The research capabilities are pretty slim as far as being able to modify the plant when we can barely even just research it in general. There’s hurdles to overcome that. When we talk about genetically modifying plants in general, there’s a multitude of different ways doing it. New technologies are coming out all the time. One of the original technologies was using golden gun and what that was is basically taking small balls of gold and laying DNA on them and basically shooting them into the plant so that they would pierce through the cells and place the DNA into the individual cells.

This is a Hail Mary kind of technique where you’re basically just injecting it and you’re hoping it gets into the region that you want it to. Definitely not very direct.

There are new technologies out that are far more direct and we’re looking at one of the new technologies at, I think we discussed earlier today, was called the CRISPR technology where it can come in and edit DNA. That’s super new. Other ways are chemical induction through natural sources of modifying the genome through radiation.

When we talk about genetically engineering cannabis, we’ve been doing it out of the laboratory in the underground for a long time with what’s been called feminized seeds. Basically, the way to make feminized seeds would be two ways. You can do it naturally by stressing the plant out by either letting it grow past its normal flowering period where it’ll produce male flowers because the plant has the ability to this last chance pollinated self to survive in nature or you can use pill silver which is a chemical used made from silver that you apply on. That basically changes the genome to male flowers so you’re genetically modifying it that way. Also another way you can manipulate with light or mastication of the soil, there’s a multitude of ways doing it naturally.

It’s hard to talk about GMOs when you could do it naturally. People got offended by that. To touch on something earlier we talked about the organic and GMO thing, you have organic breeding and that’s how the organic standards come out. Then you have GM technologies, but at the same time you can grow GM technology plants using organic methods. There isn’t any law that says you can’t apply that bat guano to a cannabis plant that’s been genetically modified.

We can use those techniques together and that’s one of the things that I’ve been really promoting the most is finding the best of each. What technology can we take from biotech and GMO, what can we take from organic and how can we combine those to be the most successful in the fact that the producer can make an income and the consumer can get a product at an available cost that isn’t exorbitant?

Shango Los: That’s subtle difference between the growing method and how you create the strain, that right there provides such a kink to the debate. Almost nothing I read online even suggests that there’s a difference. Everybody’s talking about this big bucket of GMOs and referring to it as a one big thing, whereas what you’re suggesting is like, “Okay, let’s isolate the strain because we want to treat a particular disease or because we want it to use less water because we’re in Southern California or something.” Once you’d isolated the strain, you’re actually going to grow it in soil and without pesticides for the health of the plant itself.

Tyler Markwart: Yeah. It goes beyond even that. When we talk about pesticides and fungicides and stuff, when we talked about Washington State since we have recreational marijuana here, recreational marijuana there’s what’s called the PICOL list and that is the list of pesticides that’s been approved for cannabis production in Washington State. There’s over 200 chemicals that have been approved and this is basically based off of the organic agriculture.

A lot of these “chemicals” are organic. For instance, AzaMax is an organic chemical. In large doses AzaMax causes cancer in humans. There are detrimental effects to organic. If we think about the term organic, arsenic is organic. It’s an organic chemical. We have to be very careful in the terminology and how we use them and how we discuss that. And again, this is where the hysteria thing comes out. A lot of people are so fixated on Monsanto and so fixated on Roundup Ready that they literally group every single other technology with that. Every single other biotechnology or every other genetic modified organism instantaneously becomes evil because it has some association to Monsanto, Cargill, Syngenta, whatever company you want to get out there, or Roundup. We have to get a better understanding of what they do, then we can get a better grasp on how we can debate them.

Shango Los: You know, I’m one of those people who talks against genetically modified food and I’ve signed the petitions and I spread the message. It wasn’t until you and I met and I started thinking about genetic engineering from a more academic direction that I had to start re-thinking some of that, but in the end, I still don’t want to eat genetically modified food because of the unknown. It’s like, “Okay, if I eat this particular thing and it’s been genetically engineered, I don’t know how it’s going to interact with my body and it could do something bad.” You probably know the potential bad things that could happen more than anybody because you’re researching it. If we were talking worst case scenarios, if we were to start genetically modifying cannabis, what are things that could go wrong even if they’re unlikely and theoretical? What is the monster that people are afraid of that you’re saying isn’t going to happen?

Tyler Markwart: When you think about it, nature generally takes care of everything in its own sense and way. If people are concerned about outcrossings and outbreedings and stuff like that, if it’s a beneficial advantage for the plant to have that genetic coding, and that’s again when we think about what this is, it’s just a code. Your genes is like a computer code. It’s 010. Instead of zeros and ones, it’s C, G, T and A. It’s a coding and if we transport that code from one plant to another or we do something, it may be really beneficial and the plant may benefit from that.

We have to get a really good understanding of the technology in what we’re doing and how we’re doing it before anything else really advances. I really cannot press how much the importance of how these things are approved. When you look at the approval of a genetically modified organism, it goes through the same process an organically proved produce product would come through. The technology, for instance, BT, which is bacillus thuringiensis, is a soil-borne bacteria that the genetic code has been inserted into corn. That certain pest when they bite into the corn basically can’t reproduce and they die. The reason it was approved for agricultural use was because BT is used in organic agriculture.

What the USDA and the EPA went and did is they said, “If this chemical is approved for organic agriculture, then it must be safe for use in this technology also.” They did trial runs and they did a bunch of research on it and they found that that is the conclusion and that’s basically how they’ve continued to go through approving these technologies is saying, “If this technology already exists, then it should get a fast track approval.”

Shango Los: At the top of your answer though you said that nature has a way to suss out what’s needs and what’s safe, but when we’re doing a direct insertion into the genetic line, doesn’t that get rid of the natural barriers? Because the whole thing, the reason that nature takes care of itself is because it’s got generation after generation of slow hybridization, whereas what we’re talking about here is a quick fix. Nature doesn’t really have its chance to play its role as quality assurance.

Tyler Markwart: Unfortunately, nature also doesn’t keep a steady path in how things happen. Things abruptly happen through nature whether it’s a volcano coming through and destroying everything, a hurricane, a comet from outer space, dropping new types of material on earth. Things happen, things change and so we have to prepare for those changes. GM technologies allow us an extra tool in the shed to be prepared for those. If we were to make changes in a plant and to see that it has a beneficial outcome and, like I said before, if nature was to take care of it, we would see detrimental effects happen immediately and we’re not basically seeing that. The whole thing with the Monsanto and the Roundup Ready thing is people are saying, “It’s causing all these issues.” Before that, what do we have? We had a whole boatload of horrible other issues from conventional agriculture. As we use these technologies we’re going further and further forward to being able to make different changes in agriculture for the benefit.

Shango Los: Right on. We need to take another short break. We’ll be right back with Tyler Markwart.

Welcome back to the Ganjapreneur.com podcast. I’m your host, Shango Los. We’ve been speaking with Tyler Markwart of Allele Seed Research about genetically engineered cannabis. Tyler, we talked a lot about the different applications that genetically engineered cannabis could have and what it looks like right now big strides forward that are happening. As cannabis becomes legalized across the country and we move towards normalization, lots of folks are going to want to capitalize on this technology and develop their own strains of cannabis. What do you see coming over the horizon as far as intellectual property and how genetic engineering could be leveraged in this way?

Tyler Markwart: It’s really going to be interesting as far as figuring out proprietary plans for companies and stuff like that where people are going to be trying to employ a lot of intellectual property techniques because you can’t patent a plant. That’s why a lot of these companies don’t have corn as that’s their plant, nobody else can have it.

As cannabis evolves into a legal commodity, we’re going to see people putting a lot of money into research to get information out of this. We’ve already seen the cannabis genome start to be sequenced and that was done in 2011 by folks in Canada, I believe. What they did was they sequenced Purple Kush and compared that to Finola which is a hemp strain and they saw a lot of similarities between the two plants. What they noticed was the difference between the two was the expression levels of the genes.

For instance, if you have a genetic code for THC or CBD, whatever it is, the level at which that code expresses itself is what makes the plant Fino type and what makes these variations in the plant vary. As we move along, we’re going to be able to tag by adding certain sections of coding that’ll be specific. For instance, if you created a genetics biotech company called Shango Los Biotech, you literally could create a strain, a Shango strain and you could insert a specific genetic code that only you know and only you have the code for into the plant somewhere in its genetic code. There’s a lot of genetics sections that don’t really play major roles in the plant. You could insert in there. You would then be able to sell your seed and say, “This is Shango Strain,” and if somebody tried to rip you off you could then say, “No, this is not Shango Strain. I tested it. It did not test positive for my genetics or my flag.” You could also sue them if they planted your seeds and use them for breeding without your consent and by saying, “Hey, I put years of effort into developing this specific strain and you’re basically just ripping it off and selling it.” That’s what we’re seeing with the agricultural market today and I expect to see the same thing with cannabis in the next few years with proprietary strains and technologies.

Shango Los: I can see how pharmaceutical companies would be very cozy with that business model. Say for example they develop a cannabis strain that works really well with Alzheimer’s and so they tag it and then for X amount of years that particular genetic trait that they plugged in, no one else can do that and they’d be the only folks being able to sell that strain for Alzheimer’s patients. I guess, while I understand intellectual property, I’d like to at least think that there would be multiple different ways to engineer the plant so that more than one person would have a monopoly on a cure like that.

Tyler Markwart: There is. There absolutely is. The beautiful thing about it too is all people are wired completely different. What works for you may not work for me and that goes with cannabis and pharmaceuticals and all other types of medicines. Personally, myself, I don’t care for sativas. I’m already pretty high strung and run around. I don’t need the help from them to get there. I prefer an indica.

With this, it may work on a bunch of people, it may work on some people and it also comes down to we see that not one chemical seems to have that benefit of just applying … only CBD is the one that does it or only THC is the one that cures my headaches or stops my headaches. It’s really that entourage effect that Dr. Russo is talking about. The hurdle for the pharmaceutical model and the pharmaceutical company is that entourage effect. How did they control that and get it consistent when as a human you don’t want consistency, you want variation in your endocannabinoid system.

Shango Los: Before we wrap up here, what advantages might traditional hybridization have over genetic engineering? If we set aside the concern that folks, including me, have regarding the genetically engineered cannabis being out on the market under tested and something could happen wrong somehow in my body from using it, is there something that you can call out that genetic engineering just won’t be able to capture that selective breeding can claim as an advantage?

Tyler Markwart: Cost. It’s very, very, very expensive to do genetic engineering and it is not very expensive to open breed. If I take five different males of the same strain and put them in one field and breed them with a thousand different females from different strains, you’re going to get a huge variety of different mutations, a huge variety of different types of genetic profiles. Again, with the genetic engineering, it really allows you to dial in your outcome a little bit easier and better. If you want a purple plant that smells like oranges, it grows one foot tall, it flowers in 45 days, these can all be accomplished with genetic engineering, it just depends on how big your checkbook is.

Shango Los: That’s your big sell right at the end, Tyler. That sounds like a good plan. Thanks for joining us, Tyler. Tyler Markwart is founder of Allele Seeds Research. Tyler says if you want to reach him you can shoot him an email. His email is tylerjmarkwart@gmail.com. That’s T-Y-L-E-R-J-M-A-R-K-W-A-R-T@gmail.com. Thanks a lot, Tyler.

Tyler Markwart: Thank you for having me on the show today, Shango.

Shango Los: You can find the Ganjapreneur.com podcast right here on the Cannabis Radio Network website. You can also subscribe to the podcast in the Apple iTunes store or you can listen and read interview transcriptions on our home website at Ganjapreneur.com. Keep up to date on the latest cannabis news and events at Ganjapreneur.com. Thanks to Brasco for producing our show. I am your host, Shango Los.

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Gallup Poll Shows 44% of Americans Have Tried Pot

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In a newly-released Gallup poll, 44% of Americans admitted to having consumed marijuana at least once. This is the highest ratio since Gallup started posing this question in 1969, when only 4% of Americans admitted to having tried the drug.

The new survey was conducted July 8-12, just after Oregon joined Colorado, Alaska, Washington and the District of Columbia in legalizing recreational marijuana.

The data shows some stark differences between age groups. 18% Americans under the age of 30 said they currently smoke weed, while those between the ages of 30 and 64 were the most likely to say they had tried cannabis at least once.

There was an inverse correlation between the rate at which a person attends religious services and the likelihood that they admitted to using or having tried marijuana. People with no religious affiliation tended more readily to admit to having used cannabis (18%), while only 6% of Catholics and 5% of Protestants admitted to having tried it.

The poll also showed that men were more likely to having tried marijuana and to use it currently. There were only slight differences across racial and ethnic groups, though, and the likelihood that someone had tried marijuana at least once changed little across education and income levels.

However, people in higher income levels (more than $75,000) were half as likely to say they currently use marijuana than those making less than $30,000 a year.

Source:

http://www.gallup.com/poll/184298/four-americans-say-tried-marijuana.aspx

Photo Credit: Rafael Castillo

 

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Cannabis World Congress & Business Exposition Coming to Los Angeles

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Registration is now opened for the Cannabis World Congress & Business Exposition (CWCBExpo) taking place September 16-18, 2015 at the Los Angeles Convention Center in Los Angeles, CA.  CWCBExpo in LA is sponsored by the International Cannabis Association (ICA) and will be the leading event on the West Coast providing the latest information, resources and tools for producers, processors, dispensary owners, healthcare professionals, investors, lawyers as well as cannabis entrepreneurs.

Following a successful June educational and trade show forum in New York that had more than 2,000 attendees, CWCBExpo in LA will offer a comprehensive conference program with the best minds in the medical, legal, financial and product development fields.   The educational program will provide unmatched insight on what is needed to succeed in this rapidly changing and growing industry including in-depth workshops on September 16th that cover:

  • -Cannabis Careers and a Job Fair
  • -Certification in Opening a Cannabis Business
  • -Investor BootCamp & CannaPitch
  • -Pre-Certification for Doctors & Nurse Practitioners

In addition, conference sessions on September 17-18, will focus on tracks that will provide the full spectrum of business success including sessions for entrepreneurs, growing and sustaining a cannabis business, insight into what’s ahead and what’s next for the industry, and direct access to thought leaders and innovators.

Following his rousing address at CWCBExpo in New York, Ethan Nadelmann of the Drug Policy Alliance will present at the LA event and bring his dynamic expertise and knowledge on legalization of cannabis and drug policy reform to the West Coast.

“ICA is excited to take the Cannabis World Congress to Los Angeles and produce the premier educational and networking event for California’s $980 million market,” said Dan Humiston, President of ICA.  “CWCBExpo in LA will provide unmatched insight and networking opportunities to those looking to expand their business or enter this hyper growth and dynamic industry.”

In addition to two days of full educational programming and specialty add-on workshops, CWCBExpo in LA will also feature an exhibit floor (September 17-18) with suppliers in the industry showcasing cutting-edge products and services to marijuana producers, entrepreneurs looking to enter the market, medical professionals and dispensary owners, investors, and providers of professional services.

GfarmaLabs is the Platinum Sponsor and Commercial Grower Services/Dutch Master Nutrients is a Gold Sponsor of CWCBExpo in LA..  Featured exhibitors participating in CWCBExpo in LA include: Amercanex, AmeriVacs, Apeks Supercritical, BlackOutX, Bulbulyan Consulting, C4Ever Systems, CannaVest, Cultivation Suppliers, Forever Flowering Greehouses, Gbox Technology, GreenBroz, Inc., HMi, Indoor Grow Science, Jane, Kiva Confections, Lumensource, Medicine Man, Multi-Pak Corporation, Nexus Greenhouse Systems, Viridian Capital Advisors, and WeatherPort Shelter Systems, to name a few.  The CWCBExpo is also partnering with leading industry associations and media partners including 1000Watts, Association of Commercial Cannabis Laboratories, B2B Wholesaler, Cannabis Business Times, Cannabis Enterprise, Cannabis Financial Network, Cannabis Now, Cronic Magazine, Drug Policy Alliance, Freedom Leaf, Hail Mary Jane, Marijuana Business Association and the MJ News Network, Marijuana Policy Project, Marijuana Venture, THCBiz and Women Grow.

Discounted conference rates for advance registration, and more information for the Cannabis World Congress & Business Expo in Los Angeles can be found at http://www.cwcbexpo.com/los-angeles-show/registration.asp.    For more information on sponsoring or exhibiting contact Christine Ianuzzi, Show Director at cianuzzi@leexpos.com or call 201-881-1602.

About Cannabis World Congress & Business Expositions (CWCBExpo)

The Cannabis World Congress & Business Expositions (CWCBExpo) are produced by Leading Edge Expositions in partnership with the International Cannabis Association (ICA).   The events are the leading professional forums for dispensary owners, growers, suppliers, investors, medical professionals, government regulators, legal counsel, and entrepreneurs looking to achieve business success and identify new areas of growth in this dynamic industry.  In 2015, CWCBExpo took place June 17-19, at the Javits Convention Center in New York, and the CWCBExpo Fall will be held September 16-18, at the Los Angeles Convention Center in Los Angeles, CA.  For more information on ICA visit www.internationalcannabisassociation.com.   To learn more about the CWCBExpos go to www.cwcbexpo.com.

Editor’s Note:  Qualified members of the media are invited to register as press for the

CWCBExpo LA.  To request a press badge go to:

http://www.cwcbexpo.com/los-angeles-show/press-registration-form.asp

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Senate Committee Approves Marijuana Business Banking Services Bill

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The Senate Appropriations Committee has approved a measure that would protect banks that choose to provide services to marijuana businesses.

The measure, proposed by Sen. Jeff Merkley (D-Oregon) as an amendment to the Financial Services and General Government Appropriations bill, would bar the Treasury Department from using federal money to penalize banks for providing services to marijuana businesses operating legally according to state laws. The Senate committee approved the measure 16-14 on Thursday.

The amendment could remedy the current situation, in which marijuana businesses unable to access financial services provided by banks are forced to operate using only cash, which, according to law-enforcement and other government officials, is a public safety risk.

Sen. Merkley introduced the measure, the Marijuana Business Access to Banking Act, earlier this month with co-sponsors Sens. Cory Gardner (R-CO), Michael Bennet (D-CO), Rand Paul (R-KY), Elizabeth Warren (D-MA), Ron Wyden (D-OR), and Patty Murray (D-WA).

Sources:

http://www.huffingtonpost.com/bill-piper/marijuana-reform-bill_b_7858604.html

http://www.thedailychronic.net/2015/45418/senate-committee-approves-measure-to-ensure-marijuana-businesses-have-access-to-banking-services/

Photo Credit: Alex

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How Generations of Pot Smokers Have Been Using Improper Cannabis Vernacular

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If there’s one thing you can say about most people who smoke marijuana, it’s that they generally really like marijuana. Maybe that’s a “duh” statement, but I mean that they really like marijuana: we know the different species, we know the different strains, we know whether or not this bud will make you hungry or happy or paranoid, and whether or not this other bud will put you to sleep. Much like a connoisseur of beers or wines might judge and rank the drinks they have, cannabis connoisseurs — out of love and respect for this amazing plant — will do the same for their bowls, doobies, and edibles.

It appears, however, that for generations marijuana enthusiasts and researchers have been using an improper nomenclature to discuss the varieties among the several cannabis subspecies.

What went wrong?

The original division of the cannabis plant species grouped the plant’s many different strains into three basic categories: cannabis sativa, cannabis indica, and cannabis ruderalis. Ask any self-respecting stoner to describe the differences in these subspecies, and they’ll probably tell you that sativas will give a heady type of high, whereas indicas give an intense body high. On the other hand, the ruderalis subspecies has been commonly regarded as ditch weed, or a weaker form of cannabis that grows in the wild and is generally not worth domestication due to its undesirable cannabinoid profile.

However, according to cannabis researcher John McPartland, an affiliate of GW Pharmaceuticals and long-time voice in the cannabis research community, this nomenclature is wrong. Specifically: when the original cannabis taxonomy was created by Richard Evans Schultes in the 1970s, he misidentified a cannabis afghanica plant as cannabis sativa, which set off an unfortunate chain of misconceptions that has deceived the marijuana community for generations.

McPartland unveiled his discovery during a presentation at a 2014 meeting of the International Cannabis Research Society.

What’s changed?

Only the labeling of the three major cannabis subspecies has been adjusted, but to avoid inevitable confusion here’s a brief rundown on what’s changed.

C. sativa was misidentified and should have been named c. indica because this subspecies actually originated in India. Meanwhile, c. indica in fact originates from the Afghanistan region, and for that reason McPartland has called for it to be renamed c. afghanica. The wild-growing cannabis currently known as c. ruderalis is to be called c. sativa under the new classification. For an easier time understanding these distinctions, check out this chart from McPartland’s original presentation.

It remains to be seen whether or not the marijuana community will take to this new nomenclature: after all, the sativa vs. indica understanding of cannabis has thoroughly permeated both the medical and recreational industries. However, with researchers, doctors, and other members of the scientific community beginning to take a closer look at the plant, we should probably prepare for the more accurate, scientifically sound vernacular to eventually stick.

Sources:

http://theleafonline.com/c/science/2015/01/indica-sativa-ruderalis-get-wrong/

http://www.beyondthc.com/mcpartlands-corrected-vernacular-nomenclature/

http://cannabisafghanica.com/

Photo Credit: Carlos Gracia

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Willie Nelson’s Marijuana Strain to Debut in Colorado Retail Stores

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Music legend Willie Nelson is planning to enter Colorado’s recreational marijuana industry this fall.

In an interview with Texas TV station KSAT at Nelson’s ranch outside Austin, the singer-songwriter said that he plans to make a strain called “Willie’s Reserve” available for purchase in Colorado pot shops by September.

“This product is some of the best they have to offer up there,” Nelson said.

Citing lawmakers’ penchant for prioritizing money over just about everything else, Nelson predicted that marijuana would be legal in all 50 states in less than ten years: “The bottom line is money, and once those old guys see how much money is being made in Colorado and Washington  — all the places that it is legal —  they’ll say, ‘Hey, wait a minute. We may want to think about it.’”

Nelson asserted that raising awareness about cannabis was more important to him than making money: “It’ll generate talk, which is more important than money.”

Source:

http://www.ksat.com/content/pns/ksat/news/2015/07/20/willie-nelson-set-to-market-marijuna-in-colorado.html

Photo Credit: Bert Cash

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Plans for Colorado Marijuana TV Ads Tabled Indefinitely

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Despite the marijuana industry’s growth in states across the country, the recreational cannabis business climate is still being hamstrung by the federal government’s ambiguous position on the issue.

One of Denver’s major TV stations, ABC affiliate KMGH-Channel 7, had been weighing the idea of running the nation’s first commercials for recreational marijuana. Citing muddy federal regulations regarding such ads, however, the station has decided to put the idea on hold indefinitely, The Cannabist reports.

The station had been considering 15-second spots for two companies: the Green Solution, a chain of recreational dispensaries, and Neos, a hash-oil vape pen retailer. Neither of the ads would have displayed or specifically referenced marijuana, and would have aired late, as a lead-in to “Jimmy Kimmel Live.”

The ABC affiliate had initially decided to treat the ads like it would those for hard alcohol. Brad Remington, vice-president and general manager of the station, stated that “after careful deliberations, we have elected to accept ads from what is now a legal business in Colorado and apply some of the same restrictions and standards that we do for similar adult products, like hard liquor.” Remington placed the cannabis ads in the history of changing social values being reflected on TV: “In the old days, Mary Tyler Moore and Dick Van Dyke slept in separate beds; now we have Viagra ads. Things evolve.”

But after some more ‘careful deliberations’ by parent company E.W. Scripps’s lawyers, the station was forced to pull an about-face. A message from the firm stated that it is “proud to be a company of free speech and open expression, but [it has] concerns about the lack of clarity around federal regulations that govern broadcast involving such ads.”

A stark contrast with the confidence Remington had earlier displayed, stating, “I don’t mind being first. We’re being really smart about it.”

The move reflects the concern among many in the industry that cannabis ads aired on federally-licensed airwaves could be met by a vigorous legal response: TV stations or their owners could be prosecuted for aiding or abetting an illegal activity.

KUSA-Channel 9 head Mark Cornetta had already ruled out such plans, but noted that the situation would be different “if the federal government decides to legalize marijuana.” Perhaps the day will come when the Mad Men of the cannabis era will have their heyday.

Sources:

http://www.thecannabist.co/2015/07/16/marijuana-advertisement-denver-abc-kmgh-pot-ad/38085/

http://www.thecannabist.co/2015/07/17/denverchannel-kmgh-7-pot-tv-ads/38216/

http://www.thecannabist.co/2015/07/20/kmgh-channel-7-denver-marijuana-ads/38272/

Photo Credit: Jeffrey Beall

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Sacramento County Declares Excess MJ Cultivation ‘Water Waste’

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In light of California’s unrelenting drought, Sacramento County voted Tuesday to declare water use designated for marijuana cultivation a form of water waste.

The County Supervisors voted unanimously for Supervisor Roberta MacGlashan’s move to revise the water code to limit indoor cultivation. The board had revised the water code last year to prohibit any outdoor cultivation.

“According to the California Department of Fish and Wildlife, a single marijuana plant uses an average of six gallons of water per day during the growing cycle,” said MacGlashan.

The new rule will take effect in 30 days. Indoor cultivation of more than the legal limit of 9 marijuana plants will be considered a water waste violation, punishable by a fine of up to $500 per day. Ted Wolter, chief of staff for MacGlashan, stated that “it just seemed like a rational and logical extension that if it’s illegal to grow it, it should be illegal to use the water to grow it.”

In a grow-op bust last week, the Sacramento County Sheriff’s Department took about 1,000 plants. The operation was using more than 6,000 gallons of water per day, the equivalent of 30 households.

Source:

http://www.kcra.com/news/county-declares-marijuana-cultivation-form-of-water-waste/34168056

Photo Credit: Franco Folini

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Italy Moves Toward Marijuana Legalization

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Italy took its first major step toward legalizing marijuana last week, putting it at the forefront of a European movement to address drug-policy failures across the continent.

The Intergrupo Parlamentare Cannabis Legale, a committee comprising lawmakers from multiple political parties, have come to an agreement on a text that would legalize marijuana consumption, growth, production and sale.

Members of several parties, including the Five Star Movement, the Greens, and even Prime Minister Matteo Renzi’s Democratic Party backed the proposal, which would allow Italians to grow marijuana either at home or as part of a cannabis club, in which marijuana could be grown and shared among up to 50 members, but not sold to the public.

The committee’s manifesto reads: “We think that in Europe and in Italy it makes sense to work to follow the example of countries that first switched to a system of full legal regulation of the production, sale and consumption of cannabis, adapting its features to our social and legal context.”

The text now moves to Parliament.

Source:

http://www.politico.eu/article/italy-legalizing-pot-us/

Photo Credit: Alessandro Capotondi

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ResponsbileOhio Given 10 Days to Close Ballot Measure Signatures Gap

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The pro-marijuana-legalization group ResponsibleOhio fell nearly 30,000 signatures short of the number it needs to qualify its legalization proposal for the November ballot. The group will have 10 days to collect the remaining signatures.

The group is required to collect 305,591 signatures, and although it reported last month that it had submitted 695,273 signatures, county boards of election verified only about 42 percent of them. The group plans to challenge the count.

“Every single voter who signed this petition has the right to be counted,” said ResponsibleOhio Executive Director Ian James. “We will be taking these shortfalls to the Ohio Supreme Court to ensure that those thousands of voices are heard.”

ResponsibleOhio’s proposal would create a legal marijuana industry. 10 commercial farms have already been promised to campaign investors, and up to 1,100 retail stores could open across the state.

The proposal has been criticized by both lawmakers and marijuana advocates as being monopolistic in nature, and a constitutional amendment to prohibit granting “a monopoly, oligopoly or cartel” will be on the November ballot. If approved, it would override ResposibleOhio’s proposal.

Source:

http://www.cleveland.com/open/index.ssf/2015/07/responsibleohio_falls_short_on.html

Photo Credit: Garry Knight

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Jerry Whiting

Jerry Whiting: The CBD Cannabis Market

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LeBlanc CNEShango Los discusses high CBD strains with Jerry Whiting of LeBlanc CNE. Jerry works in cooperation with ProjectCBD.org to develop and distribute specialty CBD strains to patients. We discuss the CBD market, specific CBD strains and how to think about CBD:THC ratios.

“Patients looking for CBD often want medibles, candy, or foods they can eat, or tinctures, or topical preparations. They don’t go home, fill the bong, grab the lighter and listen to Jefferson Starship.”

In the interview, Shango and Jerry talk about the unique nature of the CBD market, they discuss what the separation of Washington State’s medical and recreational markets has meant for patients seeking CBD medicines, and how the genes of individual strains determine their effectiveness at treating different conditions.

Listen to the podcast or read the full transcript below!

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


Listen to the Podcast

Read the Transcript

Shango: 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 Jerry Whiting. Jerry was the founder of LeBlanc CNE, growers and brokers of medical cannabis and vintage heirloom cannabis strains. He also works closely with project CBD.org. Jerry has a background in acupuncture, massage, and natural healing. LeBlanc has an extensive collection of CBD-rich strains including a seed bank as well as live plants. LeBlanc has an extensive collection of CBD-rich strains including a seed bank as well as live plants. LeBlanc also sponsors a hemp breeding project, does research into the relationship between cannabis chemistry and genetics, and processes Moroccan style hash, whole plant tinctures and other cannabis preparations. Welcome, Jerry.

Jerry: Hi, Shango, how are you?

Shango: Doing great today, glad you could make it with us. Jerry, you and I talk about this all the time, but for our listeners who are still unfamiliar with CBD would you give a brief synopsis of how CBD works with terpenes to heal humans?

Jerry: Many people have focused on THC because for contemporary Americans getting high has been the goal. Indigenous cannabis has a number of compounds besides THC which is the most famous of the cannabinoids. Cannabidiol (CBD) is also quite useful for those looking for the healing properties of cannabis. When you hear about medical marijuana being used for kids with seizures it’s often CBD-rich preparations that are at the heart of that. It’s not just the cannabinoids, but the terpenes, those aromatic things that give it the smell and taste peculiar to a given strain are also part of the equation.

Shango: As more and more people learn about the health benefits of CBD alone and CBD when taken with THC as you’re describing, finding CBD plant materials is getting harder and harder to find. I know that you study the CBD market. Can you explain and describe some of the complex market dynamics that are at play right now between the medical scene that has been producing CBD historically and now the new state sponsored businesses that are starting to get into medical applications as well.

Jerry: I sometimes use corn as a counter example; popcorn, sweet corn, field corn. We all agree it’s the same plant, very different species used in very different contexts, the same with cannabis. Americans have grown marijuana to get high. Now that there’s a demand for medical patients looking for strains that are rich in CBD the market isn’t geared up to supply that part of the supply chain. Cannabis is beginning to look like any other product in the marketplace, so here you have Sanjay Gupta featuring Charlotte Figi in the use of cannabis for seizures, the VA about to give the green light for PTSD, and state after state legalizing medical marijuana.

Quite simply we’re finding just like in tennis growers are caught cross court. They have geared up and specialized in field corn and now everybody wants popcorn. You will see market forces just like any other commodity normalize the demand and the supply with prices to match. What do we see now? We see little CBD-rich cannabis in the market and that which is available is much more expensive compared to recreational pot and what I find most fascinating of all, not only is CBD-rich cannabis more expensive than THC stoner pot, but price for medical marijuana in the market is steady. There are no ups and downs, no peaks and troughs.

Shango: I know you do a lot of traveling and even though it’s probably impossible to get a snapshot of the whole cannabis market throughout the entire country, but just for our listeners what percentage of cannabis that’s produced in the country do you think is high CBD to begin with?

Jerry: I ask the question at the retail end whether it’s a dispensary geared towards medical marijuana or some of the retail stores that are popping up. I was just in Colorado last week and visited a couple. Granted the two that I visited in Denver were downtown near the stadiums and I’m sure were geared towards tourists. I saw a couple outside with their roller bags waiting for someone to make a purchase. There it’s a package store. You run in and you grab a six-pack, a bottle of wine.

It really is a recreant-oriented market, but what I’m finding is that there are dispensaries and I’m sure it will happen in the legal market as well. Those that are let’s say contrarian and gravitate towards specialized [inaudible 00:05:21] go out of their way to meet patients more than halfway. Not just have one or two things on the shelf, but to have a selection backed by a staff that knows what they’re selling and how it can best be used for individual consumers.

Shango: Up until recently where the states have started to give licenses to produce cannabis the CBD was all produced in either the medical markets or in the underground. What have you been seeing as the state starts licensing these folks and start either folding in medical producers or, as they’re doing in Washington, prohibiting the medical industry as it is right now? What are you seeing happening to the heritage CBD growers who have been growing for patients and are now being squeezed out by other folks?

Jerry: I’m not sure that medical marijuana is being squeezed out though living here in Washington state some of us feel besieged upon by Olympia. Here’s my standard message, this podcast is oriented towards people who are entrepreneurial in spirit. If many of the legal stores are grabbing the low hanging fruit and selling stoner pot, Blue Dream girl scout cookies, the usual suspects. The one person in town who decides to specialize and to do a medically-oriented retail experience has in store seminars or an email list or publishes PDFs or does talks to senior citizen homes and works with the AARP, whatever it takes, I believe that the smart money realizes that legalization won’t necessarily grow the THC recreational slice of the pie.

You’re going to find a whole new market of people who are using cannabis either again after all these years or for the very first time because there are a lot of people, baby boomers, baby boomers, baby boomers, who are getting on in age. Their bodies are telling them so and they have a pile of prescription bottles in their house they would love to get rid of, even getting rid of half of them, who looks at this as a lifestyle enhancement, not a recreational thing. Or it looks at the plant … I use the term whole plant as a double entendre way in that who says oh, yes, I could sell the highest THC for the lowest price and do coupons, et cetera, et cetera, or I could look at myself as an apothecary, a pharmacy, a compounded chemist, however you look at it.

I’m going to sell the best of breed of all the medical products available in I-502 retail in Washington or Amendment 64 out there in Colorado, but I think you’re going to see … Especially, here’s my prediction. The states that have legalized medical marijuana and have yet to legalize the full plant usage are priming the pump for CBD-rich strains when that market does go legal. The early adopters are going to be people with arthritis, fibromyalgia, Crohn’s, whatever, and they’re not looking to get high. In fact, they want cannabis medicine that will allow them to operate at full or near full functionality while relieving their symptoms.

Shango: Now that patients are starting to get the relief they’re going to be demanding it militantly, so that’s probably something that’s going to happen really swiftly. Jerry, we’re going to take a break here for a moment, but when we come back let’s talk about the different forms of CBD that it can take and how different kinds of CBD are working for different kinds of ailments, be right back.

Shango: Welcome back to the ganjapreneur.com podcast. I am your host, Shango Los and with me today is Jerry Whiting of LeBlanc CNE. Jerry, before the break we were talking about CBD plants and why they are so popular with patients and what the market for CBD is like right now because everybody is learning about the healing effects. Let’s talk a little bit about the different ways of delivery of CBD. For a lot of folks cannabis just means rolling up a joint and smoking it.

Jerry: I think it caught people in the existing cannabis markets by surprise when people began seeking out CBD-rich marijuana. I use the word marijuana deliberately because a lot of us thought and I’m guilty of this that patients were going to roll joints and sit on the back porch listening to The Dead. No, they’re patients, not recreants. There are a couple of reasons. If you’re an older AARP I want to try something for my arthritis medical marijuana patient, you’ve probably never smoked before.

There’s an image associated with stoners who lay around all day and don’t do anything productive, rolling big fat doobies or hitting a bong, and most importantly from a medical point of view patients want to take a consistent dose to relieve their symptoms, not too much, not too little. We call it titration or self-titration. It’s hard to set your dose of CBD or THC for that matter when you’re smoking, how many tokes, how big a toke, how long do you hold it, did I have a cold that day, et cetera, et cetera. Patients looking for CBD often want medibles, candy, or foods they can eat, or tinctures, or topical preparations. They don’t go home, fill the bong, grab the lighter and listen to Jefferson Starship.

Shango: I know a lot of patients, consistent dosing is important, but also they’re not in a position to be smoking anything anyway.

Jerry: Exactly, and you know as a whole, they say there’s a stigma and quite honestly there are times when patients have a compromised immune system or a breathing disorder that they present a constellation of symptoms which may discourage them from smoking. That said some practitioners now are using a mixed modality or a mixed delivery route system. Let’s say someone has a skin disorder. While you may try and get enough cannabinoids and terpenes, et cetera, et cetera onboard, by having them taking a tincture or a capsule, but being a skin disorder it makes perfect sense to rub something on it, a salve, an ointment, but some preparation that is applied to the skin.

In a similar manner those with irritable bowel syndrome or Crohn’s disease often take an oral preparation and also use a suppository. Cannabis by itself is a wonderful herb, but it also combines very well with other herbs using either a western methodology, a Chinese methodology, and an Ayurvedic methodology, but I see products in the market that I use myself occasionally that have cannabis and other botanicals in one product.

Shango: People are trying to get more of a buffet of cannabinoids by taking a little tincture, maybe a little salve. Maybe also to help with the anxiety they might actually roll a joint, too, thus taking advantage of all the different ways that cannabis can be used instead of just the traditional roll a joint and let’s get high.

Jerry: It’s the same as you catch the cold or the flu. If you’re like most people you’ve got four or five things in the medicine cabinet and depending upon whether it’s one of those drippy, runny nose things where you’ve got intestinal diarrhea stuff going on with your flu. You reach for one or more things that all came out of the same section in the drugstore or the food coop or wherever you buy that stuff. Let’s not think that there’s one answer or one tool. I think what’s interesting is that people are either revisiting recipes and preparations that have been done historically as well as bring science to bear to come up with new things all the time.

Yeah, I think you’re going to see an explosion of things and let’s hope that people in the biz, hint, hint, are going to establish brands and reputations and marketing messages and provide consistent products in the channel, so that if I get relief from a headache in March, when I go back in July the same thing is on the shelf. That’s where you differ in some sense from the recreational market. I can throw something out in the spring, when it runs out I have two more things on the market. You don’t really care when you go back to the store because hey, you’re still going to get stoned.

In the medical world when you find something that works you want more of the same and as a producer, as a marketing company, once you convert a lead into a sale and establish a reputation with your consumer you don’t want churn, you don’t want them going away. You don’t want them tempted by your competitors. I think one thing we’re going to see with normalization of marijuana, the step after legalization, if you know how to make medicine you better know how to scale it up because if you’ve been working in the medical world, and I speak from personal experience, you’re making small batches. When you have access to a whole state all of a sudden it’s not a kitchen do it yourself thing, you’re doing it on the scale of a microbrewery compared to a home brewer.

Shango: That’s well said. I really like your idea of the one size does not fit all because I listen to people on the news and they’re constantly talking about CBD as if it’s one thing and it is absolutely not one thing.

Jerry: No.

Shango: CBD is in all cannabis generally within high CBD, but within that category there are other kinds, so Jerry, why don’t you take a second and explain for folks the different applications for CBD as it’s in regular high THC cannabis versus CBD-rich which generally speaking comes in either two to one, meaning two parts CBD to one part cannabis or something more like a 15 or 18 to one because they all have different applications.

Jerry: Dr. Ethan Russo known to some of the listeners of this podcast is a medical doctor, a researcher, a brilliant mind in the world of cannabis who has investigated the difference between selective extractions, let’s say pinpointing THC alone or CBD only versus a whole plant approach, what he calls the entourage effect. That using a whole plant extract is 2.5 to three times more effective than just focusing on CBD or THC, why? Because there are 85 to 100 cannabinoids like CBD, THC, CBGs and there are up to 200 terpenes, these volatile aromatic things that give it its taste and its smell. They work together.

The analogy I use is whole wheat versus white flour. One factor in choosing the medicine that’s right for you is figuring out if you want a selective extraction or a whole plant extraction, but because the genetics dictates the chemistry, the genotype dictates the chemotype. If you’re looking for CBD you’re looking for a certain strain because of that particular strain or genotype … If the allele isn’t turned on to make CBD, I don’t care how much you fertilize it, how bright the lights, you’re not going to get it.

The first point that you need to focus on is what strain am I using. The second thing is many people hear about CBD and say that’s all I want, I don’t want to get high. CBD and THC work in tandem. Many of the components in cannabis work in harmony with each other. You raise the level of one and it has a dampening effect on something else, so it’s hard to focus on one element and one element alone and make a sophisticated and effective choice. Lastly, if you’re looking at CBD-rich preparations there are three schools of thought. The first school is I want all CBD, no THC. I want the biggest imbalance I can.

Acute conditions for people who have 200, 300 seizures a day, yes, this can be a good approach to find the greatest imbalance and the ratio of CBD to THC that you can get. You never want zero THC, why? Because 20 milligrams of CBD alone might give you ‘x’ amount of relief, but 20 milligrams of CBD with 3 or 4 milligrams of THC will give you much greater relief from your symptoms. Some people look for the imbalance. Another school of thought is one to one, a one part CBD to one part THC. Ball to the middle of the snake, it really is the safest bet for most people. There are breeders like the CBD crew whose whole catalogue is one to one.

Lastly, there’s a more nuanced approach and that is they’re different people, different symptoms, different body types. Even among the same population of folks with the same disorder they progress, they change. I have a one to two, a one to one, a two to one, a four to one, an eight to one, a 16 to one, what I call the musical note or the spectrum. Let’s start with one to one, a just up or down to figure out what ratio works for you and then the amount you can scale that up and down as well. Whether it’s all CBD, one to one, or this musical scale approach, we’re all individual and I hope the practitioners avoid being Anheuser-Busch and Coors and focus on being micros and bringing different things to market that we can sample and match to our own particular needs and our needs through time.

Shango: Great, well it’s time to take another short break. When we come back we’ll be talking about some of Jerry’s favorite CBD strains in order to prepare specific medicine. We’ll be right back.

Shango: Welcome back to the Ganjapreneur.com podcast. I am your host, Shango Los and with us today is Jerry Whiting, founder of LeBlanc CNE. We’ve been talking about CBD strains and how they can be used for different types of ailments and in what ratios to THC. Jerry, a lot of people have got their favorite CBD strains and just like THC strains, CBD strains come and go pretty quickly depending on how swiftly they’re picked up by patients and enthusiasts. What are some of your favorite present and legacy strains and what kind of strains do you see coming down the pipe?

Jerry: The venerable Harlequin came to us by way of Harborside out there in the Bay and it’s still one of my favorite strains and it’s been crossed with other things like Sour Tsunami and Cannatonic. Harlequin is still one of my favorite strains, easy to grow, great terpenes, five to two CBD to THC ratio. It’s hard to clone and it’s clone only, but if you can find it keep it alive. The other two are Sour Tsunami #3 and Cannatonic. These are the big three; Harlequin, Cannatonic, Sour Tsunami #3. They are all CBD positive, that is more CBD than THC. They have significant amounts of both, so they lend themselves well to medical use and they’ve been cross bred with other things.

Favorite strains historically. I live in Seattle. I, of course, have to root for the Puget Sound’s UW Purple Kush, a skunk works project out of the University of Washington in the mid-80s. It has been grown in Seattle ever since. Very low cannabinoid levels. As I recall 5 CBD, 3.5 THC. The terpenes are to die for. I keep the dry flower around to use at the very end as a brewer would use finishing hops. I use it just to strip the terpenes, lovely plant. Blue Dynamite is an odd one, it has a funny color, 2.5 to one CBD to THC. I underestimated until I smoked it. I now have great respect for it.

Here’s the deal, you don’t know what you have until it has been tested by a lab doing chromatography, gas or high-performance liquid chromatography to tell you what’s in it because that’s the only way you can really be sure. If it’s recreational it didn’t work, that’s okay. If it’s medical and doesn’t work you’re still in pain. I have found that with cannabis restrictions, strains don’t travel very far, so what you find locally may be different from what I see here in Washington State. Ask around, look for the lab work, and when you find it don’t forget to share it.

Shango: Jerry, what do you think about these states that are passing CBD only laws where they’re like, okay, you can’t grow or have cannabis that’s got THC or is THC-heavy if it’s just CBD with sub three percent THC that you can use this.

Jerry: Right, it’s an artificial line in the sand that’s been drawn by state legislatures who are, God bless them, doing their best to bring medicine to especially kids with epilepsy, and as a father of two kids with epilepsy I’m in the audience yelling and screaming as loud as I can in support of these efforts, but that’s the first step in the conversation. I look at high CBD, diagnoses like epilepsy as a foot in the door. We’ve gotten America’s attention, most Americans want the war on drugs to end, and more and more people who would have surprised even themselves five years ago are on the right side.

What we need to do is to continue to educate politicians and policy makers that it is a whole plant. There’s a number of things in there and as we move forward I think we will see laws and policies that are less restrictive, but it goes back to what Russo calls the entourage effect, what I call the cannabis cocktail. You need the whole plant. It’s like saying red wine is legal, but white wine and champagne are still against the law. Are you kidding me? Really, it’s the same thing.

Shango: During the half hour we’ve been chatting we’ve hit just barely the surface of CBD. If anything we’ve probably lit up people’s curiosity to know more. They’d like to hear us go for another hour. How about giving folks a place that they can go to get really accurate CBD information because we know the Internet is awash with bad information. As an expert on CBD where can you send people where they can get reliable information?

Jerry: The most reliable source is Project CBD. Project CBD is like the watering hole in the desert and it’s the inspiration and the well spring for so many of us. Martin Lee, an old, old friend of mine for years and years runs Project CBD and his website is a wealth of information and a wealth of links and resources to other places. The second place is O’Shaugnessy’s. Fred Gardner’s been doing cannabis as medicine in the Bay Area before any of us and Fred has a site that’s more science-oriented, a wealth of information.

I have a website, LeBlancCNE, L-e-B-l-a-n-cCNE.com. I try to give people how to’s. I teach a class called the hacking cannabis do it yourself kitchen chemistry. My idea is that healthcare is a right not a privilege and that patients can take control of not just the plant, but the preparations and their own dosage. I have instructions on how to decarboxylate pot, how to make infused butter or infused coconut oil or tinctures and it’s just a starting point because none of us have the whole picture, so if you started Project CBD and O’Shaughnessy’s and Hemp Truth as a foundation you won’t go far. One last thing I would recommend is Smoke Signals, Martin A. Lee, A Social History of Marijuana in America. I’ve read it a couple of times, you can’t go wrong.

Shango: Jerry, thanks for chatting with us. It was really helpful to take our conversation that you and I have offline all the time and to be able to open it up for other folks to be able to find out more about CBD. You can find the ganjapreneur.com podcast right here on Cannabis Radio. You can subscribe to the podcast in the Apple iTunes Store or you can listen and read the interview transcripts on our home website at Ganjapreneur.com. Thanks, Debrasco, for producing the show. I’m your host, Shango Los.

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White House Releases Report Acknowledging Racism Endemic to Marijuana Prohibition

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As a part of President Obama’s effort to draw attention to and address problems with the criminal justice system, particularly racial inequalities, the White House released a report acknowledging that marijuana prohibition has contributed to racial inequality.

The report, which discusses obstacles to success for disadvantaged youth, notes that “A black individual is nearly four times as likely as a white individual to be arrested for marijuana possession, even though black and white individuals reported using marijuana at similar rates.” The statistics were drawn from an American Civil Liberties Union (ACLU) study.

Entitled “Economic Costs of Youth Disadvantage and High-Return Opportunities for Change,” the report was published Executive Office of the President.

Also detailed in the document is how a criminal record — even for a minor offense — can permanently alter someone’s economic future:

“Not only are over a million young boys and men of color missing from their communities, but when they return, the legacy of a criminal record follows them. Formerly-incarcerated and other justice-involved individuals face ongoing barriers to employment after release, including a lack of safe, drug-free housing; lack of job placement assistance; loss of aid eligibility; lack of other networks and forms of support; and legal barriers to holding certain jobs. Additionally, ex-offenders face additional scrutiny from employers. Only about 60 percent of employers in one survey said they might consider hiring an ex-offender.”

In addition to commuting the sentences of 46 prisoners incarcerated for nonviolent drug offenses on Monday and speaking at the Philadelphia NAACP on Tuesday, President Obama performed an interview with VICE News at the Federal Correctional Institution, El Reno in Oklahoma on Thursday. This makes him the first sitting president to visit a federal prison.

Source:

http://www.marijuana.com/blog/news/2015/07/white-house-admits-marijuana-prohibition-is-racist/

Photo Credit: Brad Clinesmith

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Colorado Pot Taxes for Schools Jump Significantly in 2015

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The Colorado Department of Revenue has released marijuana tax numbers for May 2015, and the state’s education sector is celebrating.

The excise tax on pot brought in more money for school construction in the first five months of 2015 than it did for all of last year. So far this year, the tax has raised $13.6 million, beating out last year’s total of $13.3 million.

Senator Pat Steadman (D.-Denver) called the news “very encouraging”: “Voters wanted the school capital construction program to benefit, and despite some bumps in the road at the beginning, it looks like what was intended is coming to fruition.”

The increase in revenue is due in part to a greater number of marijuana stores, as well as the benefit of a one-time tax-exempt transfer conferred on stores.

Despite the long-term increase, the data shows that monthly pot sales have plateaued since March 2015, hovering between $42.4 and $42.7 million.

In light of the good news, some, such as Steadman, are trying to project what end-of-the-year tax totals with look like. “It sounds like they’re on track for more than $30 million for this calendar year… and that’s a good thing, because I’m promoting the passage of Proposition BB this year, and voters have twice seen on the ballot the $40 million figure for school construction, and Proposition BB would help make that happen.”

Prop BB will give voters the choice to allow the state to keep marijuana tax revenues from the previous fiscal year for school construction, law enforcement, youth services, and substance abuse and prevention programs. If voters say no to the proposition, the money will be refunded to businesses and citizens.

Source:

http://www.thecannabist.co/2015/07/13/may-colorado-pot-school-tax-marijuana/37839/

Photo Credit: reynermedia

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Wyoming MMJ Initiative One Step Closer to Ballot Box

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A proposed initiative that would give Wyoming voters the opportunity to legalize medical marijuana is a step closer to getting on the ballot.

The Wyoming Secretary of State cleared the initiative’s application, putting the initiative closer than ever to becoming a reality. The Wyoming chapter of NORML, or the National Organization for the Reform of Marijuana Laws, has been working for two years to get this initiative into voters’ hands.

In order for Wyoming NORML to get the initiative on the November 2016 ballot, they need to submit 25,673 signatures to the Secretary of State’s Office before the state legislature convenes on February 8th.

According to a University of Wyoming study conducted last year, 72 percent of state residents support the legalization of marijuana for medical use, though only 35 percent support legalizing the drug for recreational purposes.

Source:

http://trib.com/news/state-and-regional/govt-and-politics/med-marijuana-proposal-closer-to-becoming-ballot-initiative-in-wyoming/article_6e28ccf3-82c6-5fe6-9f01-ff83b45f06ec.html

Photo Credit: Larry Jacobsen

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Obama Commutes Sentences of 46 Nonviolent Drug Offenders

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President Obama took another step on Monday toward mitigating the effects of the Drug War by announcing he will commute the sentences of 46 nonviolent drug offenders.

Given that 6,600 prisoners that have applied to have their sentences commuted since the President’s clemency program began, however, the move is more symbolic than groundbreaking. Even President Obama’s lawyer, White House counsel Neil Eggleston, confirms that “clemency alone will not fix decades of overly punitive sentencing policies.”

The president announced the commutations the day before giving a speech to the N.A.A.C.P. in Philadelphia, in which he will discuss his proposals to remodel the criminal justice system.

In a video posted to his Facebook page, Obama noted that most of the prisoners had received sentences of at least 20 years, and some had even been given life sentences. “These men and women were not hardened criminals,” he said. “So their punishments didn’t fit the crime.”

The step brought the total number of sentences the President has commuted to 89, more than the last four presidents combined.

In personal letters addressed to each inmate, Obama stated that he had chosen these prisoners from among thousands of others because “you have demonstrated the potential to turn your life around.”

“I believe in your ability to prove the doubters wrong, and change your life for the better. So good luck, and godspeed.”

Source:

http://www.nytimes.com/2015/07/14/us/obama-commutes-sentences-for-46-drug-offenders.html?emc=edit_na_20150713&nlid=58430919&ref=cta

http://www.foxnews.com/politics/2015/07/13/obama-commutes-sentences-46-convicts/

Photo Credit: William Warby

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Proposed U.S. Senate Bill Would Grant Marijuana Businesses Bank Access

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A bill that would grant banking access to legal marijuana businesses has been introduced in the U.S. Senate, paving the way for companies in marijuana-legal states to work with financial institutions.

The Marijuana Businesses Access to Banking Act of 2015, proposed by Colorado senators Michael Bennet (D) and Cory Gardner (R) would prevent criminal prosecution, asset forfeiture and liability for banks that choose to work with legitimate marijuana businesses that operate in states where the drug is legal. The bi-partisan bill carries six co-sponsors including senators Rand Paul (R-KY) and Elizabeth Warren (D-MA). Neither Paul nor Warren represent states where the drug is currently legal for recreational use.

The bill (S.1726) would prohibit federal banking regulators from penalizing or discouraging banks from providing services to legitimate state-sanctioned and regulated marijuana businesses, terminating or limiting the federal deposit insurance of banks that choose to work with legitimate marijuana businesses, recommending or providing incentives to stop banks from doing business with marijuana businesses; or taking punitive actions on loans to owners of marijuana businesses, according to the bill text.

The bill does give banks the right to refuse financial services to marijuana businesses if they choose.

“Ever since Colorado voters approved the legalization of recreational marijuana, conflicting federal and state marijuana laws have required banks to refuse basic financial services to marijuana-related businesses in Colorado. In turn, this has forced the industry to adopt an all-cash business model that fosters violent crime and puts all Coloradans at risk,” Gardner said in a statement. “This commonsense legislation solves a major public safety problem in my state by giving legitimate businesses acting in compliance with state laws access to the banking system.”

Last February the Justice and Treasury Departments released guidelines for banks that choose to do business with cannabusinesses but those guidelines did not properly protect banks from the penalties for dealing with the cannabis industry, which is still federally illegal. The guidelines also failed to provide a framework by which marijuana businesses can accept credit cards or write checks.

Dr. Mitch Earleywine, chair of the National Organization for the Reform of Marijuana Laws, said in an email that allowing businesses access to financial institutions “will undoubtedly encourage other states to pass comparable [legalization] laws” by providing a framework in which the industry can operate legally and safely.

“Legitimate businesses simply want to function properly so they can pay their taxes, employees, and suppliers by having bank accounts. It’s absurd to expect any business to have to pay cash because banks are too frightened to give them an account,” he said. “Forcing these entrepreneurs to have so much cash on hand leaves them dangerously open to robbery, and paying taxes with a giant cash deposit is awkward and embarrassing.”

Earleywine noted that Colorado schools are receiving millions of dollars thanks to the state’s taxed and regulated marijuana market, and law enforcement officers can “devote their time to serious crimes instead of petty cannabis busts.”

In 2010 the Denver Police Department released an analysis of the rate at which pot shops were robbed, finding the 16.8 percent robbery rate was on par with that of pharmacies in the state. However, unlike pharmacies, dispensaries tend to keep a large amount of cash on hand due to their inability to access banking services.

“Since the legalization of both medical and recreational marijuana in Colorado, businesses across the state have lacked access to basic banking services,” Bennet said in a statement. “This has raised significant public safety concerns for both employees and customers of these businesses. It’s also created compliance and oversight challenges. This bill helps address those issues by allowing our banking system to serve these legal businesses like any others.”

The bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs which is chaired by Sen. Richard Shelby (R-AL). Shelby is firmly against marijuana legalization and in 1999 voted to increase the penalties for those convicted of drug-related crimes.

Photo Credit: Ron Cogswell

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New Mexico Appeals Court Rules Injured Employee’s MMJ Treatment Must Be Reimbursed

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A New Mexico court of appeals has again upheld a workers compensation decision stating that an injured employee must be reimbursed for medical marijuana treatment by her employer.

In the third such ruling since May 2014, the court upheld a decision by a lower court to force American General Media to reimburse Sandra Lewis for the cost of her medical cannabis. Lewis sustained a back injury in December 1998 and suffers from chronic pain. She has been prescribed various medications since her injury, including oxycodone, Soma, Percocet, and was accepted into New Mexico’s medical marijuana program in 2010.

As other companies had done in the past, American General Media and its workers compensation administrator, Gallagher Bassett Services, tried to argue that paying for an employee’s marijuana would put them in violation of federal law.

In his written opinion for the case, Judge James Wechsler argued that “federal public policy was ambiguous in contrast with New Mexico’s clear public policy expressed in the [state] Compassionate Use Act.”

Weschler’s ruling is drawn from a 2013 U.S. Dept. of Justice memo stating that the federal government “would generally defer to state and local authorities” on issues of medical marijuana.

Source:

http://www.santafenewmexican.com/news/local_news/appeals-court-again-favors-medical-pot-patient-in-workers-comp/article_f4c453ad-4d91-5fdd-b7e7-4f5cead3336d.html

Photo Credit: Dank Depot

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Oregon Hemp Farming to Continue After Senate Blocks Moratorium Bill

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The Oregon Senate put a stop to a bill Monday that would have suspended hemp growing operations in the state for two years.

The bill had passed the House by a vote of 53-6, and had strong support among marijuana producers, which worry that nearby hemp operations could result in cross-pollination. Hemp, which typically contains less than 0.3% THC, could bring down THC levels in marijuana plants, thereby making the resultant product less valuable.

Hemp advocates claimed that the bill would have spelled death for the industry. The bill would have required the revocation of all 13 hemp licenses currently in circulation, due to the state’s failure (in violation of Oregon Dept. of Agriculture rules) to get GPS-data on the location and size of proposed hemp farms. It would also have banned hemp farms within 1,000 feet of schools, which would have knocked out one hemp farm in the southern town of Murphy. The farm’s trade group, the Oregon Sungrown Growers Guild, lobbied for the legislation.

Cliff Thomason, who represents a group of investors in the Murphy farm, said the bill’s defeat “is a victory for hemp farmers.” He also noted that his investor’s group has vowed to grow male plants inside in order to keep pollen from getting onto nearby marijuana plants.

State Agriculture Director Katy Coba said that there remain “a lot of questions” about the state’s hemp program, and then new legislation is likely to come up in the 2016 session.

Sources:

http://www.oregonlive.com/mapes/index.ssf/2015/07/hemp_in_oregon_in_surprise_mov.html

http://mjbizdaily.com/hemp-cultivation-to-continue-in-oregon/

Photo Credit: Miran Rijavec

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Maryland Company Seeks Medical Cannabis Grow License Ahead of MMJ Program Schedule

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Although Maryland has yet to put the final touches on its medical marijuana program, one local business has already bought some arable land to grow for the future program.

In the hopes of getting one of 15 licenses that will be awarded under the program, Vast Organic Farms bought 26 acres in Oldtown, on which it intends to combine indoor and outdoor growing operations, depending on the program’s final rules. A company spokesperson stated that VOF chose the site for its “size, security and privacy.”

Although applications for the licences won’t even be accepted until September, VOF isn’t the only company eager to get onboard with the state’s medical program. Several other companies have already contacted the Allegany County Commission with questions about the program.

Sources:

http://www.abc2news.com/news/state/medical-marijuana-grower-buys-land-in-maryland

http://mjbizdaily.com/hopeful-maryland-mmj-cultivator-purchases-26-acres-for-growing/

Photo Credit: Rupa panda

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Washington Marijuana Business Owners Defying Local Bans

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In 2012, when Washington state voters legalized recreational cannabis, it was witnessed around the world as a landmark voter initiative. What followed was a long 19 months of rule making and lottery drawings to establish a regulated cannabis market. In July, 2014 the first legal marijuana sales began, but not every locality was open to the new law.

Between 2012-2014, one quarter of Washington towns and cities had adopted moratoriums on recreational marijuana businesses, according to the Huffington Post. The Washington Attorney General later issued an opinion stating the bans were permissible under state law, and more cities and counties have issued bans. The courts themselves have been inconsistent settling the legality of such bans. Despite these setbacks, some brave Washington business owners have decided to open their doors anyway.

The first of these ganjapreneurs to defy a local ban was Golden Dispensaries in Goldendale. The new shop opened shortly after receiving its license to operate from the Liquor and Cannabis Board on October 4, 2014. A defiant Richard Ellis alerted the city before he opened his doors. “Since we’ve opened we haven’t had any trouble except for a local church, and some of the city council.” The mayor has asked local police to leave the shop alone, Ellis says. After threatening a lawsuit, Golden Dispensaries was eventually issued a business license. They are still open today.

In Parkland — which falls under a moratorium in unincorporated Pierce County — the unique concept of an art gallery and a cannabis retail shop called The Gallery opened on March 1, 2015. Three days later the county quickly issued a notice for the shop to close. Owner Ted Weatherby refused, telling the Tacoma News Tribune he believes the notion is a “waste of taxpayer money and effort,” and that he hopes the county comes to their senses. The Gallery also remains open to this day.

The town of Clarkston issued its marijuana business ban in 2014. On Halloween that year, an attorney for Canna4Life — dressed as a Jedi — filed a lawsuit against the city and four city council members asking a judge to overturn the ban. The judge — potentially dressed as a Sith Lord — upheld the ban. Finding no relief from the courts, business owner Kelly Jackson opened the doors of Canna4Life on May 29, 2015. He was shut down a week later. Following the closure, a judge ruled in favor of the city, granting a temporary restraining order on the business. The city contends it is well within its rights to keep the shop closed. Their next hearing is on August 4th.

Dave’s Place opened on June 9th, 2015 in defiance of a ban in Sunnyside. Dave Rand’s shop was shut down the next day, due to the lack of a certificate of occupancy. The city manager Don Day told KIMA News, “There were some stipulations that needed to be met and those were never met so he doesn’t have any kind of a business license.” Dave has filed a lawsuit against the city to reopen his doors. He is currently upgrading the property in the hopes the city will grant him a business license when it is up to code.

On June 19, 2015 a cannabis retail shop opened in Yakima, ignoring a ban on recreational marijuana businesses within city limits. That same day a judge issued a show cause order, which prevented the city from closing the store. Jaime Campos told the Yakima Herald he is expressing his entrepreneurial spirit by opening his shop, Happy Time, where he previously ran a daycare with his wife. He wasn’t given long to express this spirit, however: on Monday, June 22, after “weighing their legal options,” the city took action and shut the shop down. Joe Caruso, the city Code Administration Manager, told the Yakima Herald that the order was not an injunction and that no legal barriers prevented the city from shutting down the shop. On June 26th, a judge sided with the city, and ordered the shop remain closed.

The latest recreational marijuana store to open despite a city ban is in Pasco, WA. The Lucky Leaf, owned by David Morgan, opened at the end of July. He was granted a license by the WA Liquor and Cannabis Board on July 9th, but first applied for a license in late 2013. Morgan tells the Tri-City Herald he is finally opening after the state passed a law which allows cities to share more in marijuana tax revenue. He cites this as the city’s reason for banning the shops in July 2014. He tells the Herald, “We’re hoping that they’ll change their zoning and grant us a license so we can help the city get their share of tax revenue.” It is reported the city plans to take action against the shop. However, to date the Lucky Leaf is still open with no news from the city about what action they will take.

Recent legislation aimed at reconciling issues with Washington’s marijuana marketplace could offer relief to these business owners. As part of the legislation, language was removed from the state’s marijuana laws to require that the question of marijuana bans be put to local voters, not local governments. For now, however, many recreational cannabis businesses are still unable to open across the state.

Photo Credit: Rachel Samanyi

Editor’s Note: This article was updated by the author on 8/6/2015.

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