D.C.’s New Mayor and Attorney General Will Continue Fight for Legal Marijuana

1/06/2015

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The congressional challenging of Washington D.C.’s voter-approved Initiative 71, which legalizes recreational marijuana for adults aged 21 and older in the District, has gotten a lot of attention in recent weeks. Sparking the controversy is the political rider sneakily attached to this year’s cromnibus spending bill by Maryland Rep. Andy Harris, which bans the enactment of laws that affect the legality of Schedule 1 substances in the nation’s capital.

However, two recently elected city officials — Mayor Muriel Bowser and Attorney General Karl A. Racine — have separately announced their intentions to continue fighting for the District’s autonomy on the issue of legal marijuana.

Before taking office, Bowser explained that “My job is to uphold the will of the voters, and the voters overwhelmingly support legalizing marijuana in the District.” She was sworn in on Jan. 2, and now says D.C. is prepared to “explore every option” to see that the voter-approved marijuana market is enforced in the nation’s capital, even if that means a lawsuit against Congress over the issue.

This statement, issued in an appearance alongside D.C.’s Police Chief Cathy Lanier on Sunday’s Meet the Press, was reinforced by a previous statement of Bowser’s to the Washington Post: “I continue to think that public safety is best served by having clear and enforceable laws.” Essentially, the D.C. police force needs to have a very clear understanding of what is legal and what isn’t regarding marijuana in the District, and — if this is truly a democratic society — the District’s voters should be the principal authority on such issues.

Meanwhile, Attorney General Racine has also announced that he will pursue the validation of Initiative 71 on behalf of D.C. voters. His belief, which coincides with many top D.C. and Democratic officials, is that Initiative 71 was officially enacted on Nov. 4 when voters expressed overwhelming support for legalization, and that Rep. Harris’ cromnibus rider should only target the future enactment of such laws.

Racine holds the unique position of being the District’s first elected attorney general. Formerly, the position was mayor-appointed and required confirmation by the city council. Racine’s successful campaign placed a heavy emphasis the intention to steer the District’s juvenile detention system “in a way that focuses more on rehabilitation and restoration as opposed to mere incarceration,” a stance that naturally sympathizes with the District’s desire to remove criminal penalties for petty marijuana possession.

Sources:

http://www.washingtonpost.com/local/dc-politics/karl-racine-first-elected-dc-attorney-general-prepares-to-get-to-work/2014/12/30/df51f13e-8a47-11e4-9e8d-0c687bc18da4_story.html

http://www.washingtonpost.com/local/dc-politics/protests-planned-as-congress-upends-dc-pot-legalization/2014/12/10/d39436a8-8084-11e4-81fd-8c4814dfa9d7_story.html

http://www.realclearpolitics.com/video/2015/01/04/meet_the_press_interview_with_muriel_bowser__the_three_women_running_dc.html

http://mmjbusinessdaily.com/dc-mayor-city-will-fight-for-rec-marijuana-law/

Photo Credit: tanjila ahmed

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The Evolution of Cannabusiness: Education Is Key

1/06/2015

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For years, marijuana growers, dispensaries and other businesses have spent much of their energy dodging legal inconsistencies in the system. Finally, some of these constraints are lifting. You might be tempted to breathe a sigh of relief, but in fact, there’s still a lot of work ahead to change cannabis’ image in the mainstream.

Support for medical marijuana is strong, even among some conservatives, but its recreational use still exists in a murky gray area. Unless you live in one of the country’s pot-friendly hubs, chances are, you’re going to come up against a lot of misunderstanding about using cannabis for anything other than a serious medical condition. One of the biggest hurdles facing ganjapreneurs today is moving cannabis out of the pothead/lazy stoner image into a more realistic representation of today’s cannabis consumers.

In a recent Ganjapreneur interview, investor Douglas Leighton mentioned that one thing setting ganjapreneurs apart from people in more well-established industries is “the passion for the industry as an entirety, and the desire to propel the movement forward… the people in this space want to educate that section of the population on why this plant can help so many people.” Education — through blogs, industry white papers, and responsible marketing — may be where new business owners decide to focus their efforts.

But how exactly is this to happen? Cannabis has not taken a mainstream route in its journey to legitimacy and it needs innovative visionaries to help educate the public as it emerges into the viable spheres of business, medicine and lifestyles.

One example of an entrepreneur attempting to bridge the gap between medical and recreational marijuana is Miz D’s Project. Miz D developed the “cannatherapy concept,” and it has been growing into a grassroots movement based on self-healing and an individualized program. Cannatherapy treats marijuana as a complete experience, only to be mindfully approached. With cannatherapy, the individual experience is stressed, and Miz D encourages new consumers to try it on their own as a tool for introspection rather than in a social, partying atmosphere. As well as her boutique in Vancouver, Miz D offers a series of podcasts geared to educate cannabis beginners.

Other innovative businesses like Danielli Martel’s cannabis-themed Primal Wellness spa in Englewood, Colorado and Denver-based artist Heidi Keyes who offers “cannabis friendly” art classes help the public see cannabis in a new light.

Social and political stigmas can be erased. It takes vision, education, and the commitment to challenge popular misconceptions.

Photo Credit: M a n u e l

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Hawaii Takes Another Step Toward MMJ Dispensaries

1/05/2015

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A legislative task force in Hawaii recommended last week that the state medical marijuana program should be expanded to include a system for dispensaries. Currently, Hawaii is one of the few states that has legalized medical marijuana but does not have a regulated system for dispensing the product.

The task force included a list of specific recommendations for getting the dispensary system up and running. Democratic Rep. Della Au Belatti of Oahu, who headed the task force, explained, “The recommendations are really just a starting point, some… will be taken up and some of them won’t.”

The program recommendations call for at least one dispensary in each county, and that general dispensary licensing should be addressed at a ratio of 500 patients per 1 dispensary. The task force also suggested that the application for a dispensary license should be $20,000 — with $18,000 being refunded to applicants who are not chosen — and that the annual license renewal for a dispensary should be $30,000. The licenses for producers would cost less, but get more expensive based on how many plants the licensee plans to be growing. The recommendations also include restrictions on marijuana dispensary and cultivation sites’ proximity to schools.

Additionally, Hawaii’s unique island status creates an interesting scenario for the discussion of medical marijuana, as it’s the only place where the transportation of medicine — via boat or plane — is an important consideration for the program as it moves toward a regulated, dispensary market. The task force suggested that the Department of Health set up security requirements for the transportation of medicine between the state’s many islands.

The first wave of licenses would be released January 1, 2017.

MMJ was legalized in Hawaii in 2000 as a treatment for the following conditions: cancer, glaucoma, HIV/AIDS, cachexia or wasting syndrome, severe pain, severe nausea, and seizures.

Sources:

http://westhawaiitoday.com/community-bulletin/task-force-recommends-hawaii-medical-marijuana-dispensaries

Photo Credit: Floyd Manzano

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Washington State Received $16 Million In Marijuana Taxes for 2014

1/03/2015

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2014 was a big year for marijuana. The Washington state recreational marijuana market garnered $16 million in excise tax revenue for the state between opening day in July and the year’s end, according to figures released by the Washington State Liquor Control Board.

There are a current total of 99 licensed retailers that together distributed $64 million worth of retail pot in 2014. New Vansterdam, a Vancouver retailer, produced the most revenue with $2,748,875 worth of cannabis products sold. Two Seattle stores, Herbal Nation and Cannabis City, were 2nd and 3rd place with roughly $2.6 million and $2.5 million respectively.

Experts predict that 2015 will be even more successful as the amount of cannabis sold (and therefore the amount of taxes collected) is expected to reflect the continual growth of retailers, growers, and processors who are affecting the market.

Sources:

http://thejointblog.com/washington-state-garners-16-million-taxes-legal-cannabis-2014/

Photo Credit: Nicolas Raymond

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Colorado Requests Access to Legal Marijuana for State Colleges, Universities

1/02/2015

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Colorado has requested that federal health and education officials allow the state’s colleges and universities to access marijuana from sources other than the federal government, the Denver Post reports.

“Current research is riddled with bias or insufficiencies and often conflict with one another,” writes deputy attorney general David Blake in the request sent to federal officials last month. “It is critical that we be allowed to fill the void of scientific research, and this may only be done with your assistance and cooperation.”

Because cannabis remains federally illegal, institutions who rely on federal funding are not allowed to perform marijuana research without going through a lengthy process to acquire the substance from the only marijuana producer that operates in good graces with federal law: the University of Mississippi’s National Center for Natural Products Research. Not doing so could result in the loss of federal funding.

The Colorado attorney general’s letter, however, argues that cannabis products provided by the federal government simply cannot compare to those currently available on store shelves in Colorado.

Sources:

http://www.denverpost.com/marijuana/ci_27242925/colorado-seeks-federal-permission-state-colleges-grow-marijuana

Photo Credit: Dank Depot

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Former Senator Mike Gravel to Helm Cannabis Sativa Subsidiary

1/02/2015

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Former Democratic Senator Mike Gravel will serve as the new CEO of KUSH, a subsidiary of Cannabis Sativa, Inc. (OTCQB:CBDS). Headed by former New Mexico Governor and 2012 Libertarian Party presidential nominee Gary Johnson, Cannabis Sativa announced that KUSH will act as a separate business entity that will focus on the development and sale of recreational and medicinal marijuana products, including a lozenge called the “Kubby.” KUSH Executive V.P. and COO Michael Pickens announced that Gravel’s primary role as CEO would be to “direct the company to get products in states that will legally allow it.”

Gravel served as an Alaska Senator from 1969 to 1981, and has long been critical of the War on Drugs. “It’s so controversial because there’s a lot of stupid people locked into stupid policies,” he stated in 2007 during his bid for the democratic presidential nomination. “There are a lot of people on drugs all the time — what’s the big deal about it?” Indeed, Gravel noted that one reason he took the job at KUSH is that he “[feels] very deeply about the failure that is marijuana prohibition… Nixon is the one that put marijuana into a Schedule I. People forget that story, I lived through that. I thought it was horrible.”

The former Senator maintains that he will remain active in politics, stating that “it hasn’t changed my whole political posturing. I’ve been very active in the last month or so over the torture debate.” Gravel had called on Sen. Mark Udall (D-CO.) to put the Senate Intelligence Committee’s torture report into the public record in November, before the Committee released its executive summary of the report. Such a move would have echoed Gravel’s monumental 1971 entrance of 4,000 pages of the Pentagon Papers — the report detailing the Johnson Administration’s misleading of Congress and the public during the Vietnam War — into the congressional record, ensuring their publicity.

Cannabis Sativa’s chairman of the board Steve Kubby referred to Gravel as a “true American hero” in a statement, and went on to say that “Senator Gravel stood up to Nixon, stood up to the Pentagon, and now he is standing up to those in power who would keep the healthful benefits of cannabis from those who need them.”

Gavel’s straightforwardness has carried over to his work in the private sector. KUSH COO Michael Pickens noted that he has been “very active and outspoken” in his role at the Cannabis Sativa board of directors. “I specifically requested to work with him for his track record of taking action and holding people accountable in government, and now he gets to use those skills to advance another worthy project,” he added.

Sources:

http://www.huffingtonpost.com/2014/12/30/mike-gravel-marijuana_n_6396646.html

https://firstlook.org/theintercept/2014/11/10/mike-gravel-senator-put-pentagon-papers-public-record-urges-udall-torture-report/

http://www.politico.com/story/2014/12/mike-gravel-kush-marijuana-113878.html

http://www.cnbc.com/id/102300821#.

Photo Credit: Gage Skidmore

End

Founder of Marijuana Investment Group Interviewed by Ganjapreneur

12/31/2014

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As public support for the legalization of marijuana has grown, so has the speculation that the cannabis industry could be poised for a major boom if the US federal government changes its policy toward the drug. Like any other emerging market, the cannabis industry has piqued the interest of many venture capital and investment firms around the globe. Recently, Ganjapreneur, a website dedicated to the growing industry, published an interview with Douglas Leighton, founding partner of Dutchess Capital, an investment group which has recently focused its investments on cannabis start-ups.

In the interview, Leighton discusses how Dutchess Capital came to view the cannabis industry as an opportunity and what led to their eventual decision to invest in several start-ups. “It took us about 10 months of due diligence before we were comfortable to make the first investment,” he states. “We joined ArcView, the angel network for the cannabis industry, in the summer of 2013 and met Isaac Dietrich of MassRoots and subsequently made the first investment.” MassRoots is a popular, pseudo-anonymous social network for cannabis users. Leighton elaborates, “They are largest social networking site for the cannabis community and have grown over 2,000% year over year. They are anonymously collecting a tremendous amount of data from their user base such as a user’s strain preference, time of day they consume, consumption method among other key data collection points. They will be able to monetize this data via sponsored posts of either localized merchants and/or national brands.”

Leighton also discusses his predictions for the future of the industry as more and more states begin to legalize cannabis. “The largest market will be pharmaceutical marijuana. This will be a genetically modified version of what is used today for medicinal purposes. The power of this plant is not fully understood; once big pharma understands it, they will get involved.”

Beyond a thriving medical market, Leighton believes that every niche associated with cannabis or hemp will likely see major growth over the next several years. However, this doesn’t mean that every business will prove to be successful. Leighton explains, “investing in this industry is like playing chess without being able to see the board. Eventually ignorance will abate, the banking issue will be fixed and the drug will be rescheduled.”

The full interview can be found on Ganjapreneur’s website, or via their Android app which was launched on the Google Play market earlier this year. Ganjapreneur has announced that their app will also be available in the Apple App Store in the near future. The site launched over the summer, and has since published a large volume of business-related articles and interviews pertaining to cannabis.

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Illinois MMJ Program Expanded to Include Patients Under 18

12/31/2014

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The Illinois medical marijuana program is expanding to include patients under 18 years old who suffer from certain health conditions, including epileptic seizures, the Associated Press reports. The changes are part of emergency rules posted by state health officials last week.

According to the Illinois Department of Health, children will require two separate doctor signatures that certify the patient will benefit from cannabis treatment before being allowed access to medical marijuana — adults only require one doctor’s signature to partake in the program. The annual fee for children, however, will be slightly lower.

The new rules have also added two spots to a medical advisory board: one spot is to be held by the parent or caregiver of a patient younger than 18, the other spot is for a medical professional whose focus is in pediatrics. These changes are to help ensure minors have their needs carefully considered in the wider context of the program.

These emergency rules only remain in effect for 150 days, permanent rules will be drafted later.

Sources:

http://www.thedailychronic.net/2014/39600/illinois-medical-marijuana-program-expanding-to-include-children/

Photo Credit: Matt Turner

End

Five Methods of Dealing With Bad PR

12/31/2014

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Legal marijuana is a fast-growing and controversial sector of new business. Dispensaries have thousands of customers who buy their products without reservation or shame. It is an emerging and bustling market that has been widely spotlighted by the mainstream American media. Traditionally, the media’s number one goal is to publish stories that sell, and for a long time that meant publicly bashing marijuana culture and the shaming of marijuana users, whether they are medicinal or recreational users.

Therefore, it’s good to remember that although the majority of Americans now favor legalization, public opinion can still quickly be turned against a particular cannabis company or entrepreneur. Our industry is new, and Americans will require time to get used to dispensaries cropping up in their neighborhoods and towns. These are some tips to remember if you ever find yourself on the uncomfortable end of public scrutiny.

Don’t pick fights with the media.

Thicken your skin. Media outlets are in business to sell papers and airtime, so they normally they don’t have a real issue with you as long as you don’t start a fight. Let them publish their dirty old rag. Keep a healthy attitude about criticism, and you will live a long and happy life. This includes fighting with other dispensary owners or suppliers, and always avoid slights with the local authorities.

It is okay not to respond.

You pick up the paper and see a filthy article about how your business is spreading death and chaos around the community, and your blood boils. You want to go out and do press interviews and make releases to get your side of the story across. Sometimes, all this does is fan the flames. Sometimes, you can keep your mouth shut and that article in the newspaper or website will go away eventually.

Listen to negative comments to gain knowledge about customer issues.

True journalism should have some basis in fact — there may be marketing opportunities in there. Sometimes the press reveals public attitudes and thought processes that could be marketing opportunities. For example, some articles may provide hints about where the majority of your customers live. Other articles could help you learn about and address negative perceptions regarding your business. Not all criticism is bad: ignore the useless rants, but read through and record the helpful data.

Bad press is an opportunity.

Some bad press can increase business. Press, good or bad, will inform people where your business is and whether or not it is successful. The best dispensaries have dependable markets and sell what their customers want — sometimes the press can bring you more customers depending on your market. Monitor your sales very carefully after a press release, you may find a nice surprise.

Be good to your customers and grow your business, and people will forget bad press.

This tip can be summed up with one word: performance. Provide good products for your customers, and your business will grow — it’s simple. Negative press only lasts a while, and your business can outgrow every PR challenge if you keep level headed and proceed without irrational responses.

Photo Credit: Petras Gagilas

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Massachusetts Dispensary Licensing Snafu Rooted In Early Mistakes, Report Finds

12/30/2014

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Massachusetts voters overwhelmingly approved medical marijuana in 2012, and it was originally believed dispensaries would open in the summer of 2014. Now, after many months of delay and dozens of lawsuits against the state health department, the Boston Globe has released a report that identifies how things went wrong during the medical marijuana program’s launch.

According to the report, the whole implementation process was, “hobbled by too little time, too many conflicts of interest, and questionable work from highly paid contractors.”

“Massachusetts underestimated the time commitment it would take, and now it’s taking more time because they have had to backtrack,” explains Todd Brown, vice chairman of the Department of Pharmacy and Health Systems Sciences at Northeastern University. Brown served on a committee that was appointed by the state health department to recommend recipients for provisional dispensary licenses.

In June, that committee had to backpedal on nearly half the applications they had initially selected, citing issues that ranged from the companies’ financial structures to the way their background checks had been mishandled during the screening process.

The state originally contracted two different companies to get things underway. ICF International was hired to review and provide consulting on 100 marijuana business applications. Creative Services Inc. was hired to background check the more than 600 people who were involved with said businesses. Neither company, however, was tasked with actually verifying claims made by hopeful marijuana businesses in their applications.

Problems arose when locals felt their enthusiasm for the industry — or lack thereof — had been misrepresented in certain applications. Additionally, one couple who had their Colorado dispensary license revoked due to violations were not initially detected during the Massachusetts background checking process.

With public scrutiny growing, the two companies originally contracted to do the job had their contracts extended to address the growing concerns. The state of Massachusetts has now spent more than $1 million on its flawed system, and more money is yet owed.

Meanwhile, Massachusetts is one of many states gearing up for a 2016 push for the legalization of recreational marijuana.

Sources:

http://www.bostonglobe.com/metro/massachusetts/2014/12/27/state-effort-license-medical-marijuana-dispensaries-went-off-rails-from-start/9UfRwaG7TpxtvTspkSFDkI/story.html

Photo Credit: Navaneeth KN

 

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Examining Legal Marijuana’s DUI Landscape

12/29/2014

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Marijuana culture is changing rapidly in the United States. As more states decriminalize and even legalize marijuana use for medicinal and recreational reasons, the herb is quickly finding a new place in the American consciousness.

This progression has spurred new developments in other industries and areas of the law. Most notably, these changes have caused lawmakers and civilians alike to rethink our current DUI laws and penalties for drivers under the influence of THC.

Current Cannabis and Alcohol DUI Laws

Currently, every state has the right to make its own laws regarding what constitutes driving under the influence. Throughout the country, it is illegal for an individual to operate a motor vehicle if his or her blood alcohol content is .08% or higher. This is known as a “per se” law. That means that it is banned outright with no regard to how alcohol might affect different individuals. Although one driver might show no signs of intoxication or impaired behavior with a blood alcohol content of .08%, another might show such signs with a blood alcohol content of .04%. Legally, the former is intoxicated and the latter is not.

Currently, eleven states have a zero tolerance policy for drivers under the influence of THC. This means it is illegal for an individual with even a trace of THC in his or her blood to operate a motor vehicle.

Proposed Laws

With the recent mainstreaming of cannabis use among Americans, some states have attempted to amend their DUI laws to reflect this change. Some examples of such laws are:

– In California, AB 2500 proposed to make it illegal for an individual to drive with any THC in his or her blood. This included medical marijuana patients. This bill did not pass.

– HB 1325, a Colorado bill that recently passed in the state senate, making it illegal for an individual with more than five nanograms of THC in his or her blood to operate a motor vehicle.

– A recent ballot petition in Missouri to scale back DUI charges for drivers who test positive for THC.

Why It’s Not So Simple

Numerous studies, including the recent “Understanding the Limitations of Drug Test Information, Reporting, and Testing Practices in Fatal Crashes” published by the National Highway Traffic Safety Administration, have shown that per se laws do not work for catching drivers impaired by THC as easily as they work for catching drivers impaired by alcohol. This is for a few different reasons.

For law enforcement, proving that a driver is under the influence of THC is much more difficult than it is to prove that a driver is under the influence of alcohol. This is because unlike alcohol, which can be detected through a Breathalyzer, an individual’s THC level can only be detected through a blood test.

With a per se THC limit for drivers, completely sober drivers can face DUI charges because traces of THC can stay in the body for up to a month after an individual uses marijuana.

Studies have also proven that driving under the influence of THC is safer than driving under the influence of alcohol. With this in mind, we can not simply prosecute drivers under the influence of THC in the same way we prosecute individuals who drive drunk. Alcohol and cannabis are two completely different substances with unique effects that, although both can inhibit an individual’s driving ability, can not be generalized this way.

Photo Credit: Michael Gil

End

Florida Lawmakers Consider 2015 MMJ Legalization

12/29/2014

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The 2014 Florida campaign for medical marijuana was a hard-fought battle. And though the fight was narrowly lost, the message was delivered: the majority of Florida voters want medical marijuana, and it’s only a matter of time before the push for legalization comes back stronger than ever.

As a result, some Florida lawmakers may consider working through the legalization process via the state legislature. The advantage to this approach is it would give lawmakers more control over the industry and its regulations from the very beginning.

Jeff Sharkey, a lobbyist who works with the Medical Marijuana Business Association of Florida, explained, “Fifty-eight percent of positive voters clearly sends a signal to them that there’s strong interest. I think they feel that in a presidential election year a lot more younger folks would come out, probably push that over the 60 percent, but I think they’re also, at the same time, interested in seeing what the Florida Legislature might do.”

Whether or not lawmakers take action on MMJ this year, advocates are regrouping and will soon begin collecting signatures for another voter initiative for 2016.

Sources:

http://www.mynews13.com/content/news/cfnews13/news/article.html/content/news/articles/bn9/2014/12/23/medical_marijuana_su.html

http://mmjbusinessdaily.com/florida-mmj-initiative-may-be-taken-up-by-lawmakers-in-2015/

Photo Credit: David Trawin

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Cannabis Concentrates Are the Same as MMJ, CA Court Rules

12/28/2014

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Medical marijuana patients in California have had their right to possess cannabis concentrates reaffirmed.

The state’s 3rd District Court of Appeals in Sacramento — following an opposite ruling by El Dorado Superior Court Judge James R. Wagoner — voted unanimously that all forms of cannabis concentrates are indeed legal under California’s Compassionate Use Act (CUA), the 1996 voter initiative that legalized medical marijuana.

The hearing was a reevaluation of the prosecution of 22-year-old Sean Patrick Mulcrevy, who was charged in 2013 with unlawful possession of cannabis concentrates, a misdemeanor. And, when charged with a misdemeanor, Mulcrevy was also found to be in violation of his parole, which worsened the circumstances.

Mulcrevy was a registered MMJ patient and had legally bought the concentrates from a medical marijuana dispensary. Nonetheless, Judge Wagoner extended Mulcrevy’s probation by two years and was prepared to issue harsher penalties, had his decision not been overruled and brought in line with the CUA.

Sources:

http://www.sacbee.com/news/local/health-and-medicine/article4708713.html

Photo Credit: Andres Rodriguez

End

Douglas Leighton: Investing in Cannabis Industry Start-Ups

12/26/2014

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Dutchess CapitalGanjapreneur is excited to present our latest interview with cannabis investor Douglas Leighton. Leighton is a co-founder and principal partner at Dutchess Capital, an investment group which manages world-class investment funds for start-up, pre-IPO, and publicly-traded companies. Dutchess has been advocating for and investing in the legal cannabis industry since 2012.

In this interview, Leighton describes how Dutchess came to see the cannabis industry as an opportunity, and what some of his predictions are for the next several years. He also discusses some of the group’s current investments, including the popular cannabis social network MassRoots, the edibles producer Dixie Brands, and several others.

Read the full interview below:

Ganjapreneur: When did Dutchess Capital first begin to look at the cannabis industry as an investment opportunity?

Douglas Leighton: We began looking when The Commonwealth of Massachusetts was about to pass the medical marijuana bill via voter approval on question 3. It took us about 10 months of due diligence before we were comfortable to make the first investment. We joined ArcView, the angel network for the cannabis industry, in the summer of 2013 and met Isaac Dietrich of MassRoots and subsequently made the first investment.

In a fully-legalized system, which market would you say is the most significant: recreational cannabis, medical marijuana, or industrial hemp?

The largest market will be pharmaceutical marijuana. This will be a genetically modified version of what is used today for medicinal purposes. The power of this plant is not fully understood; once big pharma understands it, they will get involved. I think the second will be recreational, due to the sheer population size and the fact that people will likely come to realize it is better for you than alcohol with far less side effects. Recent studies have shown there are also less side effects on society from cannabis than there are from drinking alcohol, including violence, addiction, drunk driving, etc.

What do you think some of the most promising niche sectors are related to cannabis?

First I’d say consulting. I think the “top-down” approach has the most potential. I will equate it to the concept of selling picks and shovels to miners during the gold rush. In the case of cannabis, it is the consultants providing guidance to all of the marijuana startups in cultivation and retail and then selling the related products to growers on a B to B platform. There will also be a need to create better efficacies in the current markets as the product becomes commoditized. An example of this is one of our portfolio companies, American Cannabis Consulting (AMMJ:OTC). They are at the forefront of this industry with about 12 major clients in the US and Canada. They provide solutions for businesses operating in the industry through consulting and advisory services, as well as supplies business with equipment and products.

I also like the technology sector. One of our first investments in the industry is the semi-anonymous social network MassRoots. They are largest social networking site for the cannabis community and have grown over 2,000% year over year. They are anonymously collecting a tremendous amount of data from their user base such as a user’s strain preference, time of day they consume, consumption method among other key data collection points. They will be able to monetize this data via sponsored posts of either localized merchants and/or national brands.

Dutchess also likes companies in various sectors with that are building a brand of consumer products and goods. Tripp Keber has done a remarkable job with his branding efforts of Dixie Elixirs. I also think a brand such as Foria, the world’s first THC infused personal lubricant for women, has done a stellar job with its branding, and it shows; they were recently featured in British GQ.

Is there a particular niche that Dutchess Capital has focused on, or are you casting a wide net on the industry?

The industry is so new that we are casting a wide net. In saying that, we like businesses that have long-term contracts or high barriers to entry. We put particular focus on the people behind the products and services; are they hard working, passionate and driven to succeed?

What is the most important thing for an aspiring ganjapreneur to do if they are looking for an investor to help fund their business?

Know your business inside and out. Know every number and statistic off the top of your head. You need to live and breathe your work. Be able to explain it in 2-3 sentences what it is you do, or what you are looking to do. Have your proforma and deck ready at all times. Be able to show how you are going to scale your business with investment. Have a reasonable valuation and realistic expectations of growth. You are not going to sell your business to a fortune 500 company; please don’t tell me that.

Can you discuss any of the cannabis industry projects that Dutchess Capital has invested in to date?

Sure. We have invested in Dixie Brands, the industry leader in edibles and consumables; Mile High Entertainment, a license play with celebrities; Kandy Pens, a vaporizer company; Foria, a marijuana-infused personal lubricant company; American Cannabis Company, a consulting and B to B supplier; MassRoots, a social media company, as well as several grows around the country to name a few.

Have you noticed any common traits among the entrepreneurs you see in this industry, which set them apart from the people in more well-established industries?

I would say the passion for the industry as an entirety, and the desire to propel the movement forward. They also want to educate people who are ignorant to the cannabis plant. People have been lied to for years about the cannabis plant, and the people in this space want to educate that section of the population on why this plant can help so many people.

What do you think the next five years has in store for the industry?

Growth. There will be many bumps in the road, and more growth. Investing in this industry is like playing chess without being able to see the board. Eventually ignorance will abate, the banking issue will be fixed and the drug will be rescheduled.

How about the next fifteen years?

Industrial hemp will be everywhere; pharmaceutical grade cannabis will be prescribed by a doctor and covered under insurance. It will be legal in all 50 states and people will talk about the multi- generational wealth that had been created from the people brave enough to invest at the dawn of this industry.

Thank you for taking the time to answer our questions, Douglas! Ganjapreneurs from every niche and sector in the industry would be wise to heed your suggestions while seeking investors.

If you have comments or questions of your own, feel free to post them below. Or, get in touch with Dutchess Capital directly via their website. Dutchess has also published a guide for cannabis industry entrepreneurs, which you can download by clicking here.

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Mayor’s Plan for Seattle Dispensary Permits May Be Scrapped

12/24/2014

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Seattle Mayor Ed Murray’s office has been working to find a way to properly regulate the city’s medical marijuana dispensaries, but may need to scrap a plan for dispensary permits that was discussed last month during a public symposium. Seattle dispensary owners have waited close to a year for proper regulations so they start adhering to them, but for now the difference between Washington’s unregulated MMJ program and the recreational marijuana market created when voters passed Initiative 502 is stark — and looks to be staying that way a while longer.

In October, the city of Seattle sent 330 letters to dispensary owners, warning that if they didn’t get properly licensed soon, it could warrant a forced shut down. The irony then was that the licenses didn’t even exist yet — now, officials aren’t sure if such licenses will ever exist.

According to Seattle Weekly, one major issue with the mayor’s licensing plan was whether or not the city even has the legal ability to implement a local medical marijuana program that supersedes the statewide program.

Meanwhile, some recreational marijuana store owners have argued that the mayor’s proposed plan would give medical dispensary owners a significant advantage, not having to face the many I-502 restrictions that recreational stores must deal with regarding their location’s proximity to schools, parks, and other places where children gather.

State Sen. Jeanne Kohl-Welles has expressed her own concerns regarding Seattle’s intentions, noting that medical legalization came at the state level and that regulations for the medical market should therefore be addressed by the state legislature. Kohl-Welles has already announced a bill for this session that would integrate the state’s recreational and medical marijuana programs under one system — legislators failed to take action on a similar bill she proposed last year, however, and if it happens again it could mean another year of unregulated madness for Seattle’s expansive MMJ industry.

Whether or not the city succeeds in issuing licenses, Seattle officials will likely issue guidelines of some other kind to offer dispensary owners and other MMJ industry professionals temporary regulations as protection from from city prosecutors until there is some kind of statewide system reform. Even if state lawmakers reach an agreement, however, implementation of the new rules could possibly take another whole year.

Sources:

http://www.seattleweekly.com/home/955925-129/mayors-office-is-changing-medical-marijuana

Photo Credit: Andrew E. Larsen

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Ohio Legalization Proposal Would Enforce a Marijuana Monopoly

12/23/2014

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A quiet campaign to legalize medical and recreational marijuana in Ohio could result in a cannabis industry dominated by government-backed, marijuana kingpins.

The campaign is pushing for a constitutional amendment that would grant marijuana growing rights to around ten individuals, who would essentially become the new Ohio weed barons. The campaign has already received commitments from certain unidentified property owners to aid the amendment’s passage, Cleveland.com reports.

The campaign’s strategy is very similar to a successful 2009 political campaign run by gambling interests that legalized the creation of four casinos across the state (the only four locations allowed to offer gambling services, still).

A campaign earlier this year by the Ohio Rights Group failed to put the legalization of medical marijuana on the state’s ballot — the Ohio Cannabis Rights Act, as it was called, died during the signature-gathering process. John Pardee, president of the Ohio Rights Group, said the group now plans to pursue another MMJ amendment, but that he is, “against creating a marijuana monopoly.”

Sources:

http://www.cleveland.com/open/index.ssf/2014/12/campaign_to_legalize_marijuana.html

Photo Credit: Erik Drost

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D.C. Council to Submit Initiative 71 for Congressional Review

12/23/2014

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Washington, D.C. Council President Phil Mendelson has stated that he will submit Initiative 71, D.C.’s voter-approved initiative to legalize marijuana possession, home cultivation, and sharing, to Congress early next month.

The initiative, as well as Mendelson’s decision to transmit it to Congress, have been the subject of recent controversy following the passage Rep. Andy Harris’s (R-Md.) rider aimed at reversing the initiative. Once Mendelson transmits it, however, Congress will have 30 legislative days to reject the measure; otherwise, it will go into effect automatically.

“The duty to transmit is not discretionary in my view,” Mendelson said. He responded to insinuation that the decision to transmit the measure to Congress was provocative in an interview with Roll Call:

“I’m not trying to defy anybody. I’m responsible for transmitting the initiative. I have a very clear requirement in the Home Rule Act to transmit the legislation. Congress has the ability to step in when that legislation is transmitted, so I don’t see anything that’s provocative here and I certainly don’t intend any provocation.”

Harris and his co-author, Rep. Joe Pitts (R-Pa.) intend to reverse the initiative using their spending bill rider, which states that “none of the funds contained in this Act may be used to enact any law, rule, or regulation to legalize or otherwise reduce penalties associated with the possession, use, or distribution of any schedule I substance.” But the legal case for the rider taking precedence over the will of D.C. voters is feeble: the rider refers specifically to enacting laws, not carrying them out (the language was changed to avoid confusion about drug laws currently in effect). According to D.C.’s congressional delegate Eleanor Holmes Norton, Initiative 71 “was enacted when it was approved overwhelmingly by voters in November.”

Harris took advantage of the cover provided by the spending bill to avoid dealing not only with Democrats who support more legislative freedom for D.C. voters, but also with federalist Republicans wary of forcing marijuana prohibition on districts that vote green. The spending bill contains another rider, introduced by Rep. Dana Rohrabacher (R-Calif.), which prevents the Justice Department from using any money to stop D.C. and the states from “implementing… laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

Harris and Pitts argue that Congress has the authority to control legislative policy in the District of Columbia, and that legalization will lead to increased drug use among teens and “legal chaos” there. But D.C. Council Member David Grosso, author of a bill that would authorize licensing and regulation of marijuana growers and retailers, instead sees Harris’s rider as yet another example of the District “being used as a political pawn by the Congress”: “To undermine the vote of the people—taxpayers—does not foster or promote the ‘limited government’ stance House Republicans claim they stand for; it’s uninformed paternalistic meddling.”

Sources:

http://reason.com/blog/2014/12/17/andy-harris-explains-why-he-blocked-mari

http://www.forbes.com/sites/jacobsullum/2014/12/11/rider-aimed-at-stopping-marijuana-legalization-in-washington-d-c-is-a-prohibitionist-victory-that-signals-defeat/

Photo Credit: www.GlynLowe.com

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The Cannabis Commodity Xchange, Bringing MJ Closer to the Mainstream

12/22/2014

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Commodities in commerce are any goods that are interchangeable with other goods of the same type. Commodities vary in quality from producer to producer. They usually are goods that are used to make other products. The first commodity exchange was the Chicago Board of Trade (CBOT) — since then, many other commodity exchanges have formed around the country, accompanied by various attempts of government to regulate their sale and trade. In 2012, when marijuana was legalized in Colorado and Washington, a new type of commodity exchange germinated in the soon-to-be fertile ground of legal cannabis.

First planting roots in Colorado, The Cannabis Commodity Xchange (CCX) is now rooting a clone in Washington State. CCX is an online trading site for marijuana based goods. The online trading site allows users to register for free and see trades. However, without registering as a legitimate state licensed business, users can only spectate . Once a user applies and is approved, they can begin using the color coded app to securely buy, sell, trade and collect data. The app allows users to list and browse product requests, interact and negotiate with potential buyers, then easily buy or sell their products. This is all accomplished on a simple, single-screen app.

The Cannabis Commodity Xchange was founded by a diverse group of ganjaprenuers with backgrounds in business, law and web development. Maz Momeni, co-founder of CCX, says,

“We really saw the need for businesses to be able to trade easier. With all the changing regulations, spotty inventory and other hiccups in the legal cannabis market, we founded CCX to give users more of a professional business to business experience. By bringing together our diverse team we can really approach the cannabis market from all angles. We have a MBA working on the business and trading side.”

“I used to be an attorney which prepared me for the networking skills and understanding needed for starting a new business in such a regulation-heavy industry.” Momeni said. “Topping it off, our web developer has really created a nice and easy to use app.” Momeni holds that their knowledge of cannabis and how cannabis works is what really makes them stand out from the competition.

Momeni and team are looking to the future in the cannabis market. They plan on expanding to states that are coming on board to marijuana legality. For now, they are focusing on Colorado and Washington. They hope to be able to one day trade cannabis products on a national market. Unfortunately, Maz points out, “The recreational market is not quite ready for that step due to no uniformity in regulations.” By changing marijuana from a Schedule 1 narcotic, the federal government can lead the way to regulating marijuana as a commodity.

Photo Credit: Peter Hellberg

End

Teen Marijuana Use Decreasing With Legalized Markets

12/21/2014

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The number one argument against marijuana legalization — that legalizing such a substance will ultimately result in more children being exposed and getting addicted to it — has been completely contradicted by the 2014 Monitoring the Future government survey. The survey results were published earlier this month by the National Institute on Drug Abuse (NIDA).

Despite the massive shift in public opinion regarding marijuana (evidenced by the nation’s multiple voter-enacted recreational markets and the sheer number of other states that have legalized medical marijuana in some form), the use of cannabis and other drugs among U.S. teenagers has actually been decreasing.

Even in Colorado, where retail marijuana stores opened one year ago, the numbers reflect what advocates have been spouting for decades: marijuana prohibition doesn’t work. Instead, legalization and a program for the regulated distribution and sale of the drug is what’s needed to address the problem in a realistic manner.

NIDA’s survey coincides with similar findings from the 2013 National Survey on Drug Use, a poll from the Substance Abuse and Mental Health Services Administration, which also noted decreasing trends of drug use among minors.

Both surveys reinforce the argument that education is the best weapon against drug abuse. The most important part of educating kids about a drug is maintaining an honest representation of the substance — something that was incredibly uncommon with marijuana until recently. With scientific evidence from experts beginning to replace the ideological rhetoric and propaganda from politicians, public discussions about marijuana are becoming more and more one-sided, as they should be.

The real message inferred is that decades of hardball drug prohibition have failed to address drug use, among adolescents or otherwise, in addition to bringing about the imprisonment of thousands of non-violent drug offenders and the destruction of countless American families. However, after a year of watching and participating in highly publicized and regulated markets, we’re already seeing progress.

Sources:

http://www.drugabuse.gov/trends-statistics/monitoring-future/monitoring-future-study-trends-in-prevalence-various-drugs

http://www.huffingtonpost.com/marsha-rosenbaum/marijuana-legalization-education-parenting_b_6255728.html

http://www.leafly.com/news/headlines/teen-marijuana-use-has-decreased-since-legalization-government-su

Photo Credit: Matthew Yaktine

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Founder of World’s First Marijuana Day Spa Interviewed by Ganjapreneur

12/19/2014

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Since the inception of Colorado’s recreational cannabis industry, the market has grown significantly. Apart from growers, processors, and retailers, the industry has created opportunities for all types of niche businesses. One such business is Primal Wellness, the world’s first day spa offering cannabis-infused products and related services, located in Englewood, Colorado. The spa offers a variety of massages, manicures, pedicures, yoga classes, and other services to tourists and local residents who want to experience the physical (non-psychoactive) benefits of cannabis products.

Recently, Ganjapreneur interviewed Danielli Martel, founder of Primal Wellness, as part of a series of entrepreneur and investor profiles featuring pioneers in different sectors of the rapidly growing marijuana industry. In the interview, Martel discusses her career before she founded Primal Wellness, what she thinks the future of the cosmetics industry looks like given the likelihood of new cannabis- and hemp-based products, as well as some of the obstacles that she faced while growing the business.

Coming from a background of sales, marketing, and real estate, Martel has grown Primal Wellness into a successful operation in just a few years. “We currently have contracts with almost 20 therapists and yoga instructors,” Martel says. “Additionally, in keeping with the idea of mentoring, my partner and I have recruited three up and coming young women who are passionate about health, wellness, and business, and have given them an ownership opportunity. While they will be responsible for the daily operations of the Spa and Studio, we will be supporting them through our roles as CEO and CFO and as mentors.”

Martel estimates that a large percentage of Primal Wellness’s customer base is derived from tourism. “We’ve had people visit from Boston, San Diego, San Antonio, Kansas City, Vegas, and even a few other countries. While the initial boost has been tourists, we are starting to see more activity from the local community. The yoga studio membership is quickly growing and as the members learn about the benefit of infused treatments, we are starting to see crossover. Additionally, we have partnered with several medical care providers, both MMJ on non-MMJ related, who are starting to refer patients for care.”

Primal Wellness’s road to success, however, was not without its twists and turns. While creating the business, Martel says the most difficult obstacle she faced was finding a suitable location. “It was challenging to find something centrally located, friendly toward the business model, in a community that would allow it, and with parking. We got lucky and found a location that is only 15 minutes from the center of Denver, located near shopping and dining, right off the RTD line, we have ample parking, and we are just enough off the beaten path to provide privacy and serenity.”

The full interview is available on Ganjapreneur’s website. In addition to interviews with prominent “ganjapreneurs,” the website also offers an open-source marijuana slang dictionary, a B2B service provider directory for marijuana businesses, a marijuana job feed which aggregates listings from around the web, as well as a Freelancer’s Network to help cannabis-friendly professionals find work. The site has released an app on the Google Play marketplace, and has announced that it will be available via the Apple App Store in the near future.

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Colorado Lawsuit: Nebraska and Oklahoma Sue Over Legalization

12/19/2014

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Nebraska and Oklahoma have filed a lawsuit against neighboring Colorado for that state’s legalization of marijuana, the Denver Post reports.

The lawsuit alleges that, “the State of Colorado has created a dangerous gap in the federal drug control system.” The Plaintiff States argue that Colorado’s legalization undermines their own marijuana laws, drains their treasuries, and increases stress on their criminal justice programs.

Colorado Attorney General John Suthers said the lawsuit is, “without merit,” and that, “it appears the plaintiffs’ primary grievance stems from non-enforcement of federal laws regarding marijuana, as opposed to choices made by the voters of Colorado.”

Oklahoma Attorney General Scott Pruitt said in a statement that Oklahoma is “fundamentally” impacted by Colorado’s new marijuana policies because the enforcement of their own marijuana laws has become more costly.

Colorado voters passed Amendment 64 in 2012 to legalize and regulate a recreational marijuana market. Recreational stores have earned more than $300 million in sales since the market opened in January, 2014. Additionally, Colorado’s medical marijuana program has been developing for more than a decade, and is today the most expansive program in the country.

Sources:

http://www.denverpost.com/marijuana/ci_27163543/nebraska-and-oklahoma-sue-colorado-over-marijuana-legalization

Photo Credit: Chris Yarzab

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Public Hearing In Manhattan Discusses Proposed Bill to Legalize Marijuana

12/19/2014

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New York Sen. Liz Krueger (D-Manhattan) is pushing forward with a bill that would regulate and tax marijuana for recreational purposes in the state, holding a public hearing yesterday in Manhattan to gain input from experts, advocates and opponents on the Marijuana Regulation and Taxation Act (MRTA). However, Brad Usher, Krueger’s chief of staff, says he would be “pleasantly surprised” to see any action on the bill this coming session.

“We introduced this to start the discussion in New York,” Usher told Ganjapreneur. “There is still a lot of convincing to do. While this issue has started to see some movement on the national level and there is starting to be some bipartisan support for drug law reform I would not say that is so true in New York at this point.”

Usher said that many Democrats in the state would prefer to keep the status quo in regard to marijuana policy and that the Republican-controlled Senate is unlikely to introduce the legislation for a vote.

Kruger introduced the legislation (S.6005) last December and after moving in and out of the Senate Rules Committee, the bill has yet to move out of the Senate Health Committee. A same-as bill in the Assembly (A.8341) sponsored by Crystal Peoples-Stokes (D-Buffalo) is currently in the Assembly Codes Committee.

Assemblyman Joseph Lentol (D-Brooklyn), chairman of the Codes Committee, said that in the past he would have said there was no chance that the MRTA would move out of the committee but “times they are a changing,” he said, quoting Bob Dylan.

“It’s possible we could look at it with a fresh pair of eyes through the experience of other states,” Lentol said. “It’s difficult to believe that in the same country we could have separate [marijuana] laws but that’s what we’re dealing with.”

Lentol didn’t rule out moving the bill out of his committee this session but noted that even if it were to pass the Assembly the likelihood of it passing the Senate and being signed by Gov. Andrew Cuomo (D) is low.

“I think there is a possibility of [bringing it to a floor vote],” he said. “But it’s unlikely if the other house won’t act on it and the governor is not interested.”

Calls and emails from Sen. Kemp Hannon (R-Garden City), chairman of the Senate Health Committee, were not returned.

If enacted the MRTA would regulate marijuana similar to alcohol in the state. It would establish a minimum age of 18 for possession and consumption of the drug but a minimum age of 21 to purchase it legally. Those caught possessing pot under the age of 18 would be given a mere violation. The act would allow possession of up to two ounces and up to six plants to be grown at a person’s home. It also provides language that would allow municipalities to opt out if they do not want marijuana dispensaries in their communities, according to the bill text.

The bill’s fiscal implications estimate annual revenues of $5 million to $22 million with an annual spending increase of $500,000 to $1.5 million by way of excise taxes on the product and fees for licenses. Those figures, based on Colorado’s marijuana revenues, could be “substantially larger” because New York’s population is greater than Colorado’s.

“Prohibition of marijuana is a policy that just hasn’t worked, no matter how you look at it, and it’s time to have an honest conversation about what we should do next,” Krueger said in a press release. “The illegal marijuana economy is alive and well, and our unjust laws are branding nonviolent New Yorkers, especially young adults, as criminals, creating a vicious cycle that ruins lives and needlessly wastes taxpayer dollars.”

According to a 2008 report from the New York Civil Liberties Union, more than 97 percent of marijuana arrests in the state are for simple possession. An American Civil Liberties Union report shows that more than 100,000 people were arrested for possession in New York in 2010 alone. Both of those studies were cited at the hearing.

“My 26 years in law enforcement, including 14 in narcotics, taught me that prohibition is the true cause of much of the personal and communal damage that has historically been attributed to drug use,” Jack Cole, a retired Detective Lieutenant with the New Jersey State Police and co-founder of Law Enforcement Against Prohibition said in his comments at the hearing. “In a regulated and controlled environment, marijuana will be safer for adult use and less accessible to our young people, we can curtail the crime associated with the illicit market, and law enforcement can focus its resources on more serious crimes.”

Usher said that no Republican lawmakers attended the hearing and the majority of the comments heard came from proponents.

“Until this starts to get real movement, the opposition…is not really participating in the discussion that much.” Usher said. “They don’t see this as an immediate likelihood in New York.”

Photo Credit: Geraint Rowland

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Indiana Sen. to Propose Bill Legalizing Medical Marijuana

12/18/2014

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Indiana State Sen. Karen Tallian, a Democrat from Portage, is getting ready to propose a limited legalization bill that would make medical marijuana available for citizens suffering from particular debilitative conditions.

The push for medical legalization comes following many attempts in recent years by Sen. Tallian to pass legislation reforming her state’s marijuana policies. Bills to decriminalize the drug, however, did not receive much love from other Indiana lawmakers. “I’m trying something a little different,” Tallian said. “I’m hoping to get a little more sympathy to getting a hearing.” Indiana is often considered one of the nation’s most conservative states on the issue of marijuana.

“In spite of our rugged individualism, I don’t anticipate us being too early on that [legalization] process,” said Andy Downs, the Director at the Mike Downs Center for Indiana Politics. “We are one of two states that doesn’t allow Sunday alcohol sales. There are certain things that we accept as the way we operate and don’t accept changes just because others have.”

Tallian, however, is far from discouraged. “I have a lot of people on the other side of the aisle who are interested in this issue. I think people are just a little afraid to put their names out there,” she said. “I’m working on it.”

Sources:

http://www.indystar.com/story/news/politics/2014/12/17/indiana-senator-plans-medical-marijuana-proposal-karen-tallian/20523759/

Photo Credit: nathanmac87

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Danielli Martel: The World’s First Cannabis Day Spa

12/18/2014

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dayspaSince the inception of Colorado’s recreational cannabis industry, the market has grown and thrived. Apart from growers, processors, and retailers, the industry has created opportunities for all types of niche businesses. One such business is Primal Wellness, the world’s first day spa offering cannabis-infused products and related services, located in Englewood, Colorado. The spa offers a variety of massages, manicures, pedicures, yoga classes, and other services to tourists and local residents who want to experience the physical (non-psychoactive) benefits of cannabis products.

We recently interviewed Danielli Martel, the founder of Primal Wellness, about her experience growing the business in Colorado, what she believes the future holds for cannabis and hemp-infused cosmetic products and lotions, and some of her plans for new ventures in the industry.

Read the full interview below:

Ganjapreneur: When was Primal Wellness founded, and when did you know that you wanted to make a career in the cannabis industry?

Danielli Martel: Primal Wellness Company opened on October 1, 2014. In 2009 I became a medical cannabis user in a state in which it is still illegal. After a few years of skirting the law we knew, as a family, that it wasn’t worth risking our children or business there and made the decision to move to Colorado. The goal wasn’t specifically to have a career in cannabis but more to create an experience for others that would allow an opportunity to educate about the benefits of cannabis. We arrived in the Denver area in February of 2014 with the intent of opening a “bud and breakfast” in Evergreen. Unfortunately, due to banking regulations we weren’t able to pull it off. The conception of the spa was a marriage of a previous spa idea in my “entrepreneurship” folder, personally using cannabis on my skin and seeing amazing results, and research about how cannabinoids increase the benefits of massage and other spa treatments.

What was your career before starting the company?

My background is in Sales and Marketing. I started in real estate at the age of 19, went into mobile phone sales during the ought’s, and then found a career in insurance. My personal career goal is to mentor others and help them reach their goals. I currently own and operate two traditional brick and mortar businesses, two online businesses, and am working on bringing some new concepts to life. Not bad for a stoner, right?

Not bad indeed! Can you give any hints about your upcoming projects, or are they still under wraps?

Thank you! Seriously, we really need to shed this “stoners don’t get anything done” nonsense. I’m doing more now than I ever did before I was a consumer. Primal Wellness Company is working on formulations for a custom product line that would include industrial hemp and we are also beginning on our expansion by opening a second location in Eagle-Vail in January of 2015. For myself, I have an awesome restaurant concept that I would like to take to Brazil, my second country. If there are any restauranteurs out there interested in a partnership, hit me up!

What were some of the greatest obstacles you faced while growing the business?

The greatest obstacle to getting the business off the ground was location, location, location. It was challenging to find something centrally located, friendly toward the business model, in a community that would allow it, and with parking. We got lucky and found a location that is only 15 minutes from the center of Denver, located near shopping and dining, right off the RTD line, we have ample parking, and we are just enough off the beaten path to provide privacy and serenity.

How many people does Primal Wellness currently employ?

We currently have contracts with almost 20 therapists and yoga instructors. Additionally, in keeping with the idea of mentoring, my partner and I have recruited three up and coming young women who are passionate about health, wellness, and business, and have given them an ownership opportunity. While they will be responsible for the daily operations of the Spa and Studio, we will be supporting them through our roles as CEO and CFO and as mentors.

What percentage of your clientele would you say are coming as tourists, or for the “novelty” of a cannabis spa treatment?

90%, so far, have been tourists. We’ve had people visit from Boston, San Diego, San Antonio, Kansas City, Vegas, and even a few other countries. While the initial boost has been tourists, we are starting to see more activity from the local community. The yoga studio membership is quickly growing and as the members learn about the benefit of infused treatments, we are starting to see crossover. Additionally, we have partnered with several medical care providers, both MMJ on non-MMJ related, who are starting to refer patients for care. Our building is fully wheelchair accessible, most of our therapists come from medical backgrounds, and our yoga instructors are trained in wheelchair friendly yoga. We also offer treatments featuring teas, gold and minerals, papaya, cucumber, mud, chocolate and so much more. Our focus is wellness and healing through luxurious indulgence.

What is the most popular service that you offer?

The Companion Services are, by far, the most popular. Our companion rooms are designed so that we can accommodate any two services in the same space. For example, we can do a couples massage or we can do a facial on one guest while the other has a massage, which is growing in popularity.

How do you source your cannabis-infused lotions, oils, and other topicals? Is there a large selection on the market right now?

There are many options within the market now. In Colorado one can purchase salves, oils, and lotions from most dispensaries and there are many brands making great names for themselves. There are also recipes online for making your own cannabis infused massage oils and facial treatments. What we have found within our spa is our guests want something they can take home with them, wherever they live. To accommodate that need we have partnered with Kannaway. Kannaway produces infused products from industrial hemp which means it is legal to use and ship in all 50 states. During spa treatments within the spa, we incorporate whole plant extraction for even deeper treatment.

Do you think that mainstream cosmetic brands will embrace hemp and cannabis as ingredients, or do you think infused topicals will remain a niche product?

I believe mainstream cosmetic brands will embrace hemp and cannabis as ingredients within the next decade. One day it will be an ingredient as commonly listed as jojoba and aloe are.

What benefits do you personally see from cannabis-infused topicals?

I personally use cannabis-infused topicals to manage carpal tunnel and I use it in my nightly “fix my face” routine. I go to sleep looking like the Hulk as my face is so green! The affect that it has had on my skin has been incredible. My break-outs are greatly reduced and I am regularly complimented on my skin.

What is the best thing about your job?

It doesn’t feel like work.

What is your biggest frustration with the cannabis industry in Colorado?

The beauty and challenge of cannabis is that it runs the gamete from being a fun, recreational plant to a lifesaving and very serious plant…all in the same grow. People are extremely passionate about the plant and especially passionate about their specific messages surrounding the plant. So, for me, I find the biggest challenge among consumers and people within the industry to be acceptance and understanding of each others messages. The business part of the industry is typical of any business model I’ve been a part of. There are no clear answers, you have to figure stuff out yourself, the governing authorities aren’t clear on how to interpret the guidelines and as a result the legality of many issues are “in the gray” (a very common phrase here in Colorado), and if you ask three attorneys or government representatives the same question, you will get three different answers. So, like with most things in life, do what feels right, use common sense, and constantly educated yourself as things change daily. It is scary and challenging opening up a cannabis related business, but, I believe if your intentions are pure and your goal is to educate people, bring them a great product or service, and you are passionate about the plant, the power of the plant will be with you and you will succeed.

What advice can you offer to aspiring ganjapreneurs?

Meditate every day. Have a business plan but be malleable within it. Don’t take “no” from people who aren’t in a position to tell you “yes.”

Thank you for sharing your insight and experience, Danielli!

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