Search Results for "connecticut"

Maine Adopts Massachusetts’ Cannabis Warning Labels

Cannabis regulators in Maine have adopted the warning symbols for cannabis products from Massachusetts, the State House News Service reports. The adoption could be a preview of how New England states unify some cannabis regulations in lieu of federal legalization. Maine’s rules require all products to have cannabis warning labels that read “contains THC” and “Not Safe for Kids.”

Erik Gundersen, director of the Maine Office of Marijuana Policy, said using the “same universal symbol will ensure that customers can clearly recognize products that contain THC whether in Massachusetts or Maine.”

Three of the six New England states – Maine, Massachusetts, and Vermont – have legalized cannabis for adult use, although Vermont has not yet legalized sales or a regulated industry. Legalization legislation has been introduced in New Hampshire, Connecticut, and Rhode Island but has not yet been voted on by lawmakers.

Maine officials said regulators “identified the CCC’s symbol as a potential opportunity for collaboration and were pleased with how warmly the suggestion of utilizing the same symbol was received by their counterparts in Massachusetts.”

Earlier this month, governors from New York, Connecticut, New Jersey, and Pennsylvania met to discuss regional cannabis legalization policy. In a statement on the summit, Connecticut Gov. Ned Lamont (D) said that eastern states “not only share borders” but “economic interests” and that “when states work together collaboratively, carefully and thoughtfully [they] can create better policies.”

According to the State House News report, Maine officials expect to begin accepting cannabusiness licenses by the end of the year.

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College Students Sue Schools for Denying Medical Cannabis Use

At least three college students have launched legal challenges against colleges that have taken action against them – including expulsion – for using medical cannabis, according to an Al Jazeera report. The lawsuits come from students studying nursing and other medical specialties who, under school policies, must submit to drug tests.

Sheida Assar, who uses medical cannabis to treat chronic pain from polycystic ovary syndrome, was expelled from Phoenix Arizona’s GateWay Community College after failing a drug test for cannabis. She told Al Jazeera that school officials told her she would not have any problems if she showed them her state-issued medical cannabis card.

“They yanked me out of class in the middle of the school day. They escorted me to the administration like I was a … criminal. It’s discrimination, and it also violates my rights under the Arizona medical marijuana law.” – Assar, to Al Jazeera

Assar is seeking $2,000 she spent on tuition and other educational expenses and additional money for damages. GateWay spokeswoman, Christine Lambrakis, said the college has a ban on cannabis use but that the school is reviewing its policies; for now, the school has no plans to change the rules despite the 2018 Arizona Supreme Court Ruling.

Connecticut nursing student Kathryn Magner sued Sacred Heart University after officials barred her from attending required clinical medical rounds after she tested positive for cannabis. Magner has a medical cannabis card from her home state of Massachusetts for undisclosed conditions. She has since settled the suit under undisclosed terms; however, before the settlement, she stopped using cannabis, passed a drug test, and obtained approval from the Office of Student Accessibility to use cannabis, but the nursing school officials would not let her back into the program. Connecticut law prohibits public and private colleges from discriminating against students enrolled in medical cannabis programs.

In a statement, Sacred Heart said it treats medical cannabis like other disability-related requests and “seeks to provide reasonable accommodation under the law.”

Michael Thad Allen, a lawyer for Magner, said issued like these “will become more common if employers and schools don’t abide by the law.”

Kaitlin McKeon was expelled from Nova Southeastern University’s nursing program last year after failing a drug test for cannabis; officials at the Florida school said she violated the institution’s drug policy even though she holds a medical cannabis card issued in the state.

Michael Minardi, her attorney, called it “sad” that the college took action against his client “because she chose a medication that’s legal in Florida but not one that they recognize.”

The rulings could set legal precedents which could ultimately prevent schools from taking punitive actions against medical cannabis cardholders.

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legalized weed

Here Are All The States That Have Legalized Weed (2021)

Jump to a state: Alaska | Arizona | California | Colorado | Connecticut | Illinois | Maine | Massachusetts | Michigan | Montana | Nevada | New MexicoNew Jersey | New York | Oregon | South Dakota | Vermont | Virginia | Washington | Washington D.C.


2012 marked a turning point in U.S. history: for the first time, a state (actually two states, Colorado and Washington) voted to ignore federal drug laws and legalized weed for consumption by persons aged 21 or older, similar to alcohol. In the years since then, a host of other states have followed suit in what has become an inspiring exodus from Drug War-era policies and sentiments. 

While legalization is spreading, however, the actual regulatory framework can vary dramatically from state to state. Every state with adult-use sales, for example, has mandatory third-party lab testing requirements before products can reach store shelves — but not every state actually allows for commercial cannabis sales.

The following is a brief run-down on each legalized state and how they have approached adult-use cannabis regulations.

California state cannabis legality
Photo credit: Maarten van den Huevel

California

California, the USA’s most populous state and largest economy, is a relative newcomer to adult-use cannabis despite being the first state to legalize medical cannabis back in 1996.

A successful 2016 voter initiative catapulted California into the post-prohibition landscape. Unfortunately, however, things have not gone entirely smoothly, so far. High tax rates have prevented licensed businesses from competing realistically with the unregulated market. A large quantity of unlicensed storefronts, coupled with an underfunded cannabis enforcement agency, has further complicated the issue.

  • Possession/carry limit: 1 ounce of flower, 8 grams of concentrate
  • Purchase limit: 1 ounce of flower, 8 grams of concentrate
  • Home grow rules: 6 plants per household, only 3 flowering at a time.

Click here to learn more about the state of cannabis in California.

Illinois state cannabis legality
Photo credit: Antonio Gabola

Illinois

Illinois was the first state to establish an adult-use cannabis marketplace without the voter ballot initiative process. On June 25, 2019, Gov. J.B. Pritzker signed legislation approved by lawmakers earlier in the year that legalized weed to possess and consume for adults 21+. The law also established a process to expunge the criminal records for nearly 800,000 cannabis possession convictions in the state.

Gov. Pritzker’s 2018 election campaign included a platform calling for legalization. Shortly after winning the governorship, he said he hoped Illinois would be the first Midwest state to begin legal, regulated cannabis sales. 

  • Possession/purchase limits: 
    • For residents: 30 grams of flower, 500 mg of THC-infused edibles, 5 grams of concentrates
    • For nonresidents: 15 grams of flower, 250 mg of THC-infused edibles, 2.5 grams of concentrates
  • Home grow rules: homegrown cannabis is not allowed under Illinois’ adult-use cannabis law.

Follow this link to learn more about cannabis business, rules and regulations in Illinois!

Michigan state cannabis legality
Photo credit: Andrew Seaman

Michigan

Michigan became the first Midwest state to legalize adult-use cannabis in November 2018, but the roll-out of the Great Lake State’s cannabis infrastructure was ultimately a long and complicated regulatory process.

Michigan’s adult-use market ultimately opened for business in December of 2019 although the industry launched with some 80% of the state’s municipalities having passed bans on the recreational cannabis industry. Despite its slow trod toward regulated sales, however, Michigan still boasts some of the most lenient possession and purchase limits in the country.

  • Possession/carry limit: 2.5 ounces of flower (10 ounces at home) and 15 grams of concentrate. 
  • Purchase limit: 2.5 ounces of flower.
  • Home grow rules: 12 plants per household. 

To check out more information about cannabis in Michigan, click here!

legalized weed
Photo credit: John Westrock

Washington

Washington state became the second state to legalize cannabis in 2014, about six months after Colorado, as a result of the same 2012 election as Colorado. Washington’s market, however, drew heavy criticism from the cannabis community and has been accused of being a cash-grab for lawmakers with an overly regulated and restrictive system.

Some activists have even labeled Washington’s market as “Prohibition 2.0,” though most recently officials there established a new law expunging some 69,000 minor cannabis convictions throughout the state. 

  • Possession/carry limit: 1 ounce
  • Purchase limit: 1 ounce
  • Home grow rules: Washington does not allow adults to cultivate homegrown cannabis.

Want more information? Click here to see all of our Washington cannabis news updates and more.

legalized weed
Photo credit: Anthony DELANOIX

Massachusetts

Massachusetts and Maine were the first east coast states to legalize, both via successful voter initiatives during the 2016 general election. In Massachusetts, the language of legalized weed took effect almost immediately — less than a month after the successful vote, on December 16, 2016. 

Dispensaries opened for adult-use purposes about two years later, on November 20, 2018, putting pressure on other New England states to consider enacting their own adult-use regulations and keep some of that cannabis tax revenue in-state. 

  • Possession/carry limit: 1 ounce of flower and 5 grams of concentrate in public; 10 ounces of flower at home.
  • Purchase limits: 1 ounce of flower, 5 grams of concentrate
  • Home grow rules: Adults can grow up to 6 cannabis plants at a time, 12 max per household.

Click here to see even more about the state of cannabis in Massachusetts.

Colorado state cannabis legality
Photo credit: Quinn Nietfeld

Colorado

Colorado is considered by many to be ground zero for cannabis freedom — it was the first state to enact its legalization language and has demonstrated from the start a successful model for building a state-legal cannabis market.

In fact, since Colorado’s historic Legalization Day on January 1, 2014, legislators from around the country and even the world have visited the state to see an example of a regulated cannabis industry in action.

  • Possession/carry limit: 1 ounce of THC (including flower, concentrates, edibles, etc.)
  • Purchase limits: 1 ounce of flower, 8 grams of concentrate, 800 mg of edibles
  • Home grow rules: 6 plants per person, 12 per household; only half can be flowering at any given time.

To check out Colorado cannabis news updates and more, click here!

Oregon state cannabis legality
Photo credit: Atanas Malamov

Oregon

Oregon voted to legalize cannabis alongside Alaska in the 2014 general election. Oregon became the third state to officially end cannabis prohibition, however, beating out Alaska by several months.

Oregon’s adult-use cannabis business licensing was originally very inclusive, which led to hundreds of successful applications and, eventually, a grossly oversaturated marketplace. As a result, Oregon currently boasts on average the lowest regulated cannabis prices in the world. In fact, there is such a glut of cannabis products in Oregon that lawmakers recently passed legislation that would let cannabis growers export their excess products out-of-state to nearby state-legal markets — that is, if the plan receives federal approval.

  • Possession/carry limit: 1 ounce of flower, 1 ounce of concentrates, 16 ounces of edibles, 72 ounces of liquid edibles.
  • Purchase limit: 1 ounce of flower, 5 grams of concentrate
  • Home grow rules: 2 plants per person, 4 plants per household.

Follow this link to make sure you’re keeping up to date on Oregon’s cannabis industry.

legalized weed
Photo credit: Ken Yam

Nevada

Nevada voted to legalize adult-use cannabis during the 2016 general election. Home to Las Vegas, the tourism capital of the USA, this victory was seen as especially significant for the industry. 

Nevada lawmakers were anxious to get started, as well, and quickly enacted an Early Start program that had adult-use stores open within just six months of the state’s legalization vote. Interestingly enough, Nevada’s vote to legalize came just one year after the state’s medical cannabis dispensaries opened for business, making it one of the fastest transitions yet from medical to recreational.

  • Possession/carry limit: 1 ounce, 3.5 grams of concentrate
  • Purchase limit: 1 ounce, 3.5 grams of concentrate
  • Home grow rules: Home grows are generally not allowed, and are only an option if you live 25 or more miles from the nearest licensed dispensary.

Click here to see all of our Nevada cannabis business and policy updates!

Maine state cannabis legality
Photo credit: Frank McKenna

Maine

Maine also voted to legalize during the 2016 general election. Maine’s vote was significantly closer than nearby Massachusetts—so much so that the legalization victory declaration was delayed several days for vote counting.

Cannabis possession is currently legal and available for purchase in Maine after lawmakers eventually overturned former Republican Gov. Paul LePage’s repeated vetoes of lawmakers’ bills to implement cannabis legalization, Adult-use stores finally opened in October 2020.

  • Possession/carry limit: 2.5 ounces (70 grams)
  • Purchase limit: Adults 21+ can purchase up to 2.5 ounces of cannabis flower per transaction.
  • Home grow: Up to 12 plants per adult, but only 3 can be flowering at a time.

Stay informed about the Maine cannabis marketplace — click here for more info!

Alaska state cannabis legality
Photo credit: Paxson Woelber


Alaska

Alaska is the largest U.S. state and was among the first states to move away from federal cannabis policies. Alaska voters chose legalization via a ballot initiative during the 2014 general election alongside Oregon, making them the third and fourth states to legalize.

Most recently, Alaska made headlines as the first state to establish regulations for the social use of cannabis — i.e. cannabis social clubs, or cannabis cafes. Some cities like Denver and San Francisco had already taken this step, but Alaska was the first to pass such regulations for the entire state.

  • Possession/carry limit: 1 ounce of flower
  • Purchase limit: 1 ounce
  • Home grow rules: 6 plants per person, 12 plants per household; only half can be flowering at any time.

Click here to see more information about legal cannabis in Alaska.

Vermont state cannabis legality
Photo credit: Will Swann

Vermont

It is currently legal for adults to grow, possess, and consume cannabis in Vermont; you cannot, however, buy or sell any part of the plant (unless you are a medical patient/caregiver, but that’s a different article). This is thanks to Vermont’s unique position as the first (and currently only) state to end cannabis prohibition without establishing a taxed-and-regulated system for its distribution. But in late 2020, Vermont lawmakers approved language that will let individual municipalities determine whether or not they will allow recreational cannabis businesses. Regulated sales are expected in certain districts starting in October 2022.

Vermont also made history as the first state to defy federal drug laws thanks to efforts by lawmakers, not just voters. In Vermont, where the political system does not utilize a citizen ballot initiative process, the notion of legalized weed was so popular among voters that lawmakers were convinced to take action.

  • Possession/carry limit: 1 ounce of flower.
  • Home grow rules: 6 plants per household (2 flowering, 4 immature).

To keep up to date on the cannabis happenings in Vermont, click here!

Washington DC cannabis legality
Photo credit: Caleb Wright

Washington D.C.

While not technically a state, The District of Columbia gets a special mention for being an early-mover in the push to reform cruel cannabis laws — never mind that Congress initially blocked the District’s attempts to commercialize the plant, trampling on the rights of citizens living there. Thankfully, it looks like Washington D.C. may get to finally move forward on a regulated cannabis market in 2020.

  • Possession/carry limit: 2 ounces of flower
  • Home grow rules: 6 plants per household (3 flowering, 3 immature).

Big changes are coming to Washington DC — click here to stay up to date on the District’s latest cannabis news and happenings.

Photo Credit: Sarah Howell

Arizona

After losing the ballot initiative by strikingly close margins in 2016, Arizona voters passed Prop 207 in the 2020 election which legalized adult-use cannabis in the Southwestern state. Adult-use sales will begin in March 2021 pending licensing. Reports state that licenses will first be granted to medical dispensaries that are already in operation, creating a system much like that in Oregon where patients and adult-use patrons can shop side-by-side.

  • Possession/carry limit: 28 grams of flower or  5 grams of concentrates
  • Home grow rules: 6 plants per person, 12 plants per household with two or more adults

Stay informed on Arizona cannabis business and news as the adult-use industry develops, click here.

New Mexico

New Mexico lawmakers formally approved the state’s cannabis legalization bill in April 2021, with the legislation formally receiving the governor’s signature on April 12. The law took effect on June 29, 2021 and retail licenses are expected by January 2022.

  • Possession rules: adults 21+ can possess up to two ounces of cannabis and 16 grams of concentrate.
  • Home growing of up to six plants is allowed.

For more New Mexico cannabis industry news and information, follow this link and be sure to subscribe to our daily newsletter!

Montana

Montana opted to legalize adult-use cannabis during the 2020 General Election with 58% of voter support. The initiative took effect on January 1, 2021. In May 2021, Gov. Greg Gianforte (R) signed a bill to implement regulated cannabis sales in the state. The legislation gives current medical cannabis operators exclusive access to adult-use licenses for the first 18 months of sales, which are expected to launch on January 1, 2022.

Notably, Montana’s legalization victory (alongside South Dakota) marked the first time that a state voted to both legalize cannabis and elect a Republican presidential candidate during the same election, demonstrating that cannabis reforms are truly a bipartisan issue.

  • Possession rules: adults 21+ can possess up to one ounce of cannabis.
  • Home growing is allowed up to four plants (two mature, two immature).
  • Montana will include a 20% cannabis sales tax when regulated sales launch.

Click here to see more Montana-related cannabis news & interviews!

New Jersey

In the 2020 election voters in New Jersey approved Public Question 1 which legalized possession, sale, and use of cannabis by adults aged 21 or older. Specifically, the Public Question required state legislators to draft a bill regulating cannabis retail and cultivation licensing for the adult-use market, something they had already done during the previous year (though that bill was not passed). The governor eventually signed the state’s legalization bill in February 2021, but not until months of deliberation had passed regarding punishments for minors caught in possession of cannabis.

New Jersey, to the dismay of advocates, does not allow adults to grow the plant for themselves.

  • Possession/carry limit: 28 grams of flower or up to 5 grams of concentrates
  • Home grow remains illegal

Stay informed on New Jersey cannabis legalization and regulation, click here.


New York

Cannabis is finally legal in New York after Gov. Andrew Cuomo (D) signed the state’s legalization bill in late March 2021. The bill’s signing came almost immediately after the Democratic majority approved the bill in a party-line vote. The law includes expungement opportunities for previous cannabis convictions as well as a 9% state and 4% local tax on recreational sales—40% of cannabis tax revenue is earmarked for reinvesting in underserved communities, 40% for public education, and 20% for drug treatment, prevention, and education causes.

  • Possession rules: up to three ounces, or up to five pounds stored at home.
  • You can consume cannabis anywhere you can legally consume tobacco.
  • Home growing rules: not immediately allowed but the state is meant to establish rules letting adults grow up to six plants at home with a max of 12 per household.

Click here to find more New York-related cannabis news, interviews, press releases, and more!


Virginia

Virginia became the first Southern U.S. state to legalize cannabis after lawmakers there approved the regulatory changes in February, 2021. The original bill was set to take effect in 2023 but, following heavy criticism, Gov. Ralph Northam (D) suggested moving the launch date for some of the reforms up to July 1, 2021—and the Legislature agreed.

  • Possession rules: adults 21+ can possess up to one ounce.
  • Cannabis consumption (and sharing) is allowed, but only in a private setting.
  • Home grow will be fully legal starting July 1, 2023, but for now, home grows up to six plants have been de-felonized.
  • Adult-use cannabis sales are incoming but not expected until at least the summer of 2023.

For more Virginia cannabis info, click here to find our latest news updates, interviews, and more.

South Dakota

Voters in South Dakota made history when they voted in favor of both medical and adult-use cannabis use in the 2020 election. But, while the medical cannabis reforms have advanced since then, a South Dakota judge struck down the voter-backed recreational cannabis initiative in February 2021 after it was challenged by law enforcement officers and Republican Gov. Kristi Noem.

Click here to read the news about South Dakota cannabis business and policy.


Connecticut

The Connecticut Legislature passed a bill to legalize adult-use cannabis on June 17, 2021 and the governor signed the bill into law just days later. In a twist of irony, Connecticut’s legalization bill was approved on the 50th anniversary of President Richard Nixon’s original declaration of the drug war.

The law took effect on July 1, 2021.

  • Possession rules: adults aged 21+ can carry up to one and a half ounces of cannabis on their person.
  • Adults are also allowed to possess up to five ounces of cannabis if safely secured at home or in a vehicle’s trunk or glove box.
  • Regulated cannabis sales are expected by May, 2022.

To read about and keep up with Connecticut’s other cannabis-related updates, click here!

Last updated July 28, 2021.

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D.C. Opens Medical Program to Cardholders from Eight States

Washington, D.C. has opened its medical cannabis program to cardholders from other states in what Mayor Muriel Bowser called “patient-centric” emergency rulemaking.

The new reciprocity program is not dependent on whether other states accept patient cards from the District. Under the plan, D.C. dispensaries will accept cards from Alaska, Arizona, Arkansas, California, Nevada, New Mexico, New York, and Vermont; Louisiana, Minnesota, Oklahoma, and West Virginia are still under review.

“It ensures medical marijuana patients from other states can obtain their needed medicine. It will also promote public safety by allowing visitors to obtain their medicine at one of the District’s six – soon to be seven – authorized dispensaries rather than forcing them to go without or patronizing the illegal market.” – Bowser, in a press release

The program already accepts medical cannabis cards from Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island and Washington.

It’s the latest move by Bowser to expand the District‘s cannabis footprint. In May, she proposed the Cannabis Sales Act which would allow regulations for a taxed-and-regulated cannabis industry. Voters approved legalization in 2015 but federal law largely dictates policy in D.C. and officials have not implemented any recreational sales programs.

Under Bowser’s plan, D.C. residents must comprise 60 percent of an adult-use cannabis business and 60 percent of the employees need to be from the District. The measure would impose a 17 percent tax on recreational cannabis products which Bowser said would be used to fund public housing. That proposal is currently being reviewed by the D.C. Council.

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Travis Howard: The Business of Normalizing Cannabis

Travis Howard is the founder and Chief Strategy Officer for Shift, a Colorado-based cannabis producer and product manufacturer.

Travis recently joined our podcast host TG Branfalt for a conversation about his experience as an attorney in the early days of Colorado’s cannabis market, his transition to entrepreneurship, and the journey of founding several cannabis companies. In this interview, Travis offers a candid look at the current state of cannabis, talks about the difference between the industry’s earliest entrepreneurs and the major corporate investments that are becoming more common, what he expects from the cannabis movement in the coming years, and more!

Tune in via the media player below, or scroll down to read a full transcript of this week’s Ganjapreneur.com podcast episode.


Listen to the podcast:


Read the transcript:

Commercial: This episode of the Ganjapreneur Podcast is made possible by 420-friendly service providers in the Ganjapreneur business directory. If you need professional help with your business, from accounting to legal services to consulting, marketing, payment processing, or insurance, visit ganjapreneur.com/businesses to find service providers who specialize in helping cannabis entrepreneurs like you. Visit the Ganjapreneur business directory today at ganjapreneur.com/businesses.

TG Branfalt: Hey there. I’m your host, TG Branfalt, and thank you for listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Travis Howard. He’s the founder of Shift, who also is an attorney, helped the first wave of cannabis companies in Colorado.

He founded Kind Reviews, now PotGuide, and Green Dream Cannabis in Boulder in 2009 and 2010, respectively. In addition to his consulting business, he took part in various ancillary startups, including patient education, staffing, physician services, and wholesale exchanges. A ton of hats in this space. How are you doing this afternoon, Travis?

Travis Howard: I’m doing well, Tim. Thanks for having me. Appreciate you.

TG Branfalt: Really, really delighted to have you on. You’ve a huge breadth of experience. But before we get into the details about what you’re doing now, tell me about yourself. How’d you end up in the cannabis space?

Travis Howard: Well, I like to say we learned our macro-economics and I’ve been a demand side cannabis guy for most of my life. In 2009, dispensaries started opening up and I was interested in getting in there. I’ve had neck and shoulder issues from various car accidents and football, and the rest of it, talked to a doctor, qualified as a patient, and started meeting some of these folks and wanted to help spread the word. Also, there were some that weren’t very reputable or good. That all led into Kind Reviews that I founded with my brother. One thing led to another. I saw what was happening and I wanted to participate and found some ways in and some folks to work with on all the various items that you had listed previously.

TG Branfalt: When you went to law school, was that your focus? Did you say, “Hey, I want to focus on cannabis, or the cannabis industry,” as it ended up?

Travis Howard: No, not at all. The cannabis industry, to me, it’s just another outcry of all entrepreneurial pursuits. I went to law school specifically to become a better entrepreneur and to become a business attorney that could help other people entrepreneur. I love cannabis, and I love the industry. I think there’s a lot of stuff that we still have to do, from getting people out of jail, to full normalization. But underneath that, I really am passionate about entrepreneurialism, and how if we create more entrepreneurs, we’re unplugging people from the corporate system. They’re no longer batteries, they’re their own machines. They’re making good decisions for their employees, for their communities, because they need those people to support their business.

I just think the more entrepreneurs we have, the better community stewards we have, the better communities we have for our kids to grow up in. I think it’s a more healthy economy, if people diversify their portfolios. I don’t think we should be running the size of our economy off of just Fortune 500s, and we’ve seen that move up in the scale. That was my drive in the middle 2000s. The early 2000s when I went into law school was, I wanted to empower myself and others through entrepreneurialism. That just bled into cannabis because when I was practicing law, I got out of law school, and I went and helped my wife and her parents’ company. I was working with special needs speech therapy, and they were going through some transitions. I went down there and did some director of operations internationally, and ended up co-CEOing on the business there.

When I came out of that and moved back to Colorado, I hung my shingle to do the business law and the people that were calling remember all the businesses were crashing, there weren’t a lot of people starting new stuff. This is 2008, 2009 and early 2009 to mid 2009, I started getting a lot of calls into my law office for people that wanted to come from the underground and black market into the, at that time, technically gray market, although it really was white under the Colorado constitution.

But they were looking for leases, partnership deals, operating agreements, and everything that you would want in a normal business. But most of the big business law firms weren’t touching that platform. The early activists attorneys that laid the groundwork for us … At that time, there was the Rob Cory’s in the war and Edsons, and many more that … My apologies to them for stating their names, but they … All those guys that were out there fighting for so many people, they were predominantly criminal lawyers, constitutional lawyers, lawyers that we needed in the space, but there weren’t a ton of business attorneys that were willing to step up.

Vicente Sederberg at this point is one of the more famous law firms. Christian Sederberg went to law school with me. He was a year before me, and he had been focused on business. There was just a couple of us at the time, and I started meeting all these folks that were frankly getting rooked. The irony here, Tim, is that at that time period, you had a lot of business people that were willing to take risks. The ones that I saw, were predominantly from the real estate, either brokers, developers, owners, that … You remember that the economy was tanking, so auto was down at the time, and real estate and development was down at the time, generally in the economy.

You had a lot of people, that had previously been in the real estate world, that were now looking to join forces or move their real estate property or some of the cash that they had saved that they were going to put into a development into cannabis. Well, these folks coming into the cannabis were still called black market or illicit. The people that the business community had been looking down their nose at.

But what I actually saw in 2009 and early 2010, was a whole lot of real estate sharks preying on good natured mom and pop people that wanted to come in, and that is where I actually stepped in for some of my clients. I don’t want to overstate what I did. I was just one small cog in the wheel. But for my clients, we worked on a lot of bringing them up to equal representation and an acumen for these new partnerships that they were forming.

TG Branfalt: You’re saying you hung your shingle, which is one of my favorite turns of phrases. How did people find out about Jimmy? Was it word of mouth? Was this something that you actively advertised and gave out your card to a cannabis business owners?

Travis Howard: I did. It was interesting because, at the same time I was doing that, my little brother had called me and said, “Listen.” He’s like, “I bought these domain names, I had Colorado marijuana reviews, and I have Kind Reviews.” He goes, “I was out in California visiting a friend, and somebody mentioned this website where you could check out if the weed was good.” I was like, “Wait, what?” I’d come out of tech earlier, and during law school I’d started a company called Dealers Link with a couple of my friends that was a software exchange in the auto industry.

Tim called me, and he said, “I know you on tech, can you help me do something here?” I looked it up, and I was like, “That would be awesome.” I’d already got my patient card, let’s go and review these things, start this as a business. As I was going in and meeting dispensary owners, and asking them, buying samples and telling them that I was going to review this stuff online, sometimes I did it blind, sometimes I let them know so that they could give me any background information. I always gave an honest review.

But that’s when they’re like, “Well, who are you? Why are you doing this?” “Well, I’m a business attorney here in the area, but I’m passionate about cannabis and this is something that I’m doing in my spare time.” Well, three, four times being in there, all of a sudden those individuals were calling me back, being like, “Hey, I know you mentioned you were an attorney, would you be willing to work with me? I can’t get anyone else to take the business.” Then word of mouth spread. This was a close knit community. This is back when dispensaries were open under zoning laws. You had a business license, or a sales tax license, and that was it.

The state of Colorado hadn’t written their regulations yet, and growers were growing in their basement with patient cards, and that was what we call the backpacker days, where they were packing in. They’d show up with their backpack with five pounds a weed, and go down Broadway, where we were calling Broadsterdam or The Green Mile at the time. “Hey, do you want to buy any of my wares?” It was traditional guerrilla marketing at the time. The word spread through those individuals that I was open for business and willing to do work.

Truthfully at that time, I probably could’ve served a lot more clients, but it was hard with conflict of interest because everybody knew each other, everybody was working together. We just needed more attorneys to come in, and luckily a lot of brave souls did come in, because back then the Bar Association had issued no information on whether they wanted you doing this, not doing this, whether you could be a patient, use cannabis of course. All that stuff, at this point, has been settled with the Supreme Court and the Essex rules and all that stuff.

But, I remember a time talking to my wife and rereading that oath of office I took when I became an attorney, and I was reading it and I was like, “I don’t know if I’m supposed to be doing this, but this oath tells me that where there is the need, it is our duty and responsibility.” I looked at my wife, Beth, and I said, “I can’t imagine, aside from a criminal death row case or life imprisonment which could result out of some of this trafficking, where an attorney would be needed more.”

There’s a conflict between state law and federal law. They don’t know what’s going on. I was like, “I think we have to do this.” I just followed my heart and my gut on that, and that oath that I took. Then luckily, the Bar Association eventually saw it the same way, and said, “Yeah, we do need attorneys in this industry. This is something that’s going to be important.”

TG Branfalt: Can you describe to me the learning curve in those early days when regulations are being released? Right? You were just having to learn on the fly. Can you just tell me how you managed that?

Travis Howard: Oh my goodness. I had three desks in my office with every piece of paper that came out of the Marijuana Enforcement Division, and that 2010 run up to that … In August 2010, is when everybody met down at the dog track, as we all called it. It was an old … the racing track where they had put their first offices and everyone got in line to submit their first applications. But the rules were coming out. You were reading the Senate bill, you were reading the House bill, HB1284. I’ll never forget those, that letter and number combination.

I lived and breathed it. But on top of that, you had all these local districts. I think what most of the attorneys did was focus on Denver and some on Boulder, because Boulder had its regulations, its first version, before the State had regulations, which caused a whole another slew of stuff in Boulder that we later had to clean up as a community. But it was difficult. We were highlighting stuff every day, you were checking the website to see if any new clarifications … I remember I had Dan Hartman at the time, Mr. Seckman, there were numerous people, the MED, that I had their cell phone in my cell phone on speed dial, and I was calling and asking questions.

Back then, they picked it up directly and answered questions for the attorneys because they knew if they gave the attorney the information, that it was better than taking … that I could talk to my 40 clients versus having all 40 call them directly. It was just a lot of working together. I know that over the years, some of the industries felt like the MEDs worked against them, some, for them, the rest of it.

But in those early days when none of us really knew exactly what was going on, I will say on the defense of the Department of Revenue, they were very open and willing to talk to us and walk through that stuff, because it was a series of landmines. A lot of people lost their businesses because of some false step that they thought that the rule said this and didn’t mean that, and this person was eligible but not. It was interesting at the time. That’s for sure. No dull moments.

TG Branfalt: Tell me about what you’re doing now about … with Shift.

Travis Howard: Shift, at this point, is a tried-and-true cannabis brand. I’ve run the gamut from doing consulting to business operation contracting. We’ve done staffing and such. But I think the industry … About a year ago, I set out to help normalize the plant. I felt like that happened, to some degree, with a lot of people. Other states coming down, I wanted to normalize the business and the respect for the industry, which is why I quit practicing and went ahead and grabbed the license so that the peer group couldn’t say, “Well, you’re just doing it as an attorney to make money. You don’t really believe in this.” They couldn’t say that. They had to look me dead in the eye and be like, “Wow. You really do believe that this is okay because now you’re an owner and you’re doing it.”

We went through all those processes about a year ago. I was like, “Look, there’s a ton of activists out there that are doing a great job. There are a lot of people that … from Steve DeAngelos and the rest of them, to the mom and pops that are in Colorado and the states around us.” Now there is this massive wave of, the last year or two years of the Canadian public companies, Wall Street, big money funds, all the rest of this stuff. Now that we’ve got both of those book ends, what do I believe in the most? What was I passionate about at the beginning, that I think that the industry still wants? That’s on the consumer side.

That’s when I really decided to push Shift with the tagline Genuine Cannabis into a CPG, a consumer good branded products that … I’ve got the same heart and the passion that any mom and pop that has been here. I mean I’ve been smoking weed since the early ’90s, I’ve been through the black market, the gray market, and now the white market. I’ve had my bank account shut down personally. You can’t get a 401(k), I can’t be do 529s because all the broker dealers can’t take me because my social security is on the black list, and all these other things.

On the flip side, being a business attorney and having worked at some bigger companies and seen the business side, I know that there’s the combination that really is going to prove valuable for customers in the long term, and that is all the heart and the love of a brand that you can trust for products that you trusted before this stuff was even in white market. For supply side, a stable business that runs like a machine, but with a heart. You can go and get a little bit of great cannabis from a bunch of different people, but can they supply your business all day, every day and take care of you, of what you need to grow your business?

On the flip side, we’ve got a bunch of these big businesses that are just throwing money and machines over the top of it, that don’t have the heart, the passion and the soul that consumers want. For me, that is genuine cannabis, that is Shift. That’s what I’m setting out to bring to the world, and we’re doing that right now in about 40 to 50 dispensaries in Colorado and we’ve got three dispensaries open in New Mexico. It’s not longterm.

We’re probably not a dispensary brand, even though we have those licenses down there. We’re really looking to be a brand that other retailers can count on, and probably if they own a dispensary, they’re passionate about the products and the use, and they want to know that they’re going to get something from people that care as much as them. That’s the promise I’m making to retailers and the customers both.

TG Branfalt: You mentioned that you’re also in New Mexico, and now that you’ve experienced these different markets, and in various formats, California, Colorado and New Mexico, Maryland, and handful more via application and regulation work, can you tell me about some of the key differences that the average consumer or the average citizen might not understand about how … the differences between the states?

Travis Howard: Yeah. I think the main difference is the constituent that the program is supposed to support and take care of. When you look at New Mexico, and certainly no offense to their Department of Health, they’ve busted their button, tried very hard to produce good results. It’s difficult as a business down there because it’s clear the program is set up for patients. Everything was set up for the medical side, for the medical patient, for their needs. That’s where the program stemmed from, and that’s the foundational work.

When you flash forward to some of the other states that we’ve worked in, especially East Coast and Midwest states, it is clear who the programs are built for regardless of anything they’re touting about the patients. This is the Department of Revenue. That is the constituent, that is who they are working for. It’s about generating tax revenue, it is about generating profits in the corporations, it’s about ensuring that the people that come in to start those businesses, that get awarded the licenses, have the deep capital pockets that acumen in the connections potentially to Wall Street. It really is for the business community.

Now, that’s not to take away and say. In some of those states, that program also dovetails and works really well for the patients or for the recreational consumers. But in some programs, you’d get online and Google unhappy medical patients, and you’ll find the states that the programs aren’t really working for the patients but are working really well for certain businesses. I think probably one of the shining examples of that is Florida, where you have a handful of people that have those early licenses.

Most of those licenses have flipped for 40, 50, $100 million to public companies, and there’s patients all over the state that don’t have, and for the longest time didn’t have, access to enough product because a lot of those licenses hadn’t even opened up and started producing, or opening up dispensaries across the board, when clearly there were a lot of other businesses that were willing and ready to open if they could get licenses, but no more were issued. It’s easy to throw stones in the industry. Everybody’s got somebody that they’re mad at, a scape goat, and I try not to do that. It’s nothing little less than I teach my kids, like, “Try to look at the other side, try to put yourself in their shoes.”

But I haven’t been a patient myself for many years. Thankfully, I’ve worked through some of my issues, but … I don’t know. It’s tough. But I think that’s the major discrepancy between states, is this about the patients or is this about the business community, a.k.a, the Department of Revenue, who’s collecting revenue. But at the same time, Tim, we all have to be honest even as activists and people who care about this. This country normalizes things through profits.

I knew it back in 2010, that it wasn’t going to be Shangri-La, it wasn’t going to be this perfect Kumbaya moment, that if we wanted to actually get what we really wanted, which was the world treating this as a plant, like anything else, and putting it out there, that we were going to have to step into the language that the world, that this western society normalizes things through, and that’s profitability. If the thing couldn’t produce profits, if it couldn’t produce results for Wall Street, that we weren’t going to get actual normalization.

It was sad, but I felt like it was true then, and I feel like it’s true now. That doesn’t mean that I love it, it doesn’t mean that I wanted it to go this way, but I was never confused about how I thought it was actually going to work out. If we were going to have 50 states with legal cannabis, I didn’t think it was going to be, well, grow it at home and just let it be. I just never thought that that was how it was going to make it to all 50 states, unfortunately.

TG Branfalt: It’s an honest and astute observation, man. Just today, the AP, the Associated Press, released this of investigation, noting that when recreational comes to medical states, that the medical programs just plummet the patient health plan — I mean, isn’t that to be expected, and what are the … what’s going to happen? What’s the negative … What negative things are going to happen as that progresses?

Travis Howard: I’m certainly not clairvoyant, but I think there’s a couple things that I’ve witnessed and what I feel like is going to continue to transpire. Certainly, we know that of the original patient populations, you’ve got really what I call the OTC market, which is people that … they are treating themselves, but they’re treating themselves for items that are probably less, on a grading scale, than what the program really thought of when they made the patient program.

Then you’ve got the patients that were clearly identified with the inception of the program, and then you’ve got more recreational users that have been able to talk to their doctors and the doctors are like, “You know what? I feel like this is a fairly benign substance. If this guy’s telling me that it helps him, I’m fine with it.” You’ve got these three groups. When recreational does show up in an area, of course that first group is probably going to be like, “Well, I don’t want to go through the rigmarole of going to the doctor if I don’t have to.” The OTC market might stay as a patient, they might not, because the recreational team is able to move forward.

But what I think, I’ve seen a lot, is that when the recreational comes in, the State obviously … It doesn’t look good to have a high tax and penalty on medical patients. You bring in children with afflictions, you bring in adults with cancer, these sorts of things, and you set them on the stand and then you put them on the news and the State is trying to tax them. That just doesn’t look right, right? It’s a bad look for politicians, they’re not going to push it. They’re going to push where they’re making their money on licenses, tax, excise, the rest of it over to the recreational world.

Well, these are communities that run on taxes, so they’re going to be incentivized to either make those licenses easier to get, the regulations easier to work with, the investors and access to capital is going to be easier, so on and so forth. If you’re a business investor and you’re coming in off the sidelines, and this wasn’t your passion project, but you wanted to see where things are going, you’re looking out there and you’re going, “Well, recreational is moving forward. I believe that’s going to look like alcohol on some level in the future. I know profits come out of there. What if the medical ends up going to the pharmaceutical companies longterm?”

Well, if you’re an investor with $1 million or $100 million, which pool are you going to put that investment in? I don’t want to fight Big Pharma, but I could be myself a new big alcohol. The capital comes into the recreational side. The advertising, the branding, the product development, and that’s not to say there’s not some really great companies out there developing on the medical side. But if you look overall on where that cash is coming in and where the people, the new workforce, is coming out of alcohol, tobacco, wine, food, and all these other things that are going on CPG side, that are coming in to do the marketing and the product development, they’re going to be in the recreational space as well, because this is where they get to build a brand.

You see all of those things. I do envision that long term, you’re going to see more investment and product offering, which is only going to encourage more OTC patients to not go get their medical license because they can get the same products or better products. Looking at Colorado as an example, well, the medical still was forcing you to be vertically integrated and doing the 70-30 rule and all of this stuff. Whereas when you’re on recreational, people that were good at retailing got to do all their retail stuff, people that were good at growing, you had the lab start to process, and you saw this division of people specializing.

Well, you go into a lot of dispensaries that had a medical side and a recreational side, and there were more products offered on the recreational side because they could buy from any of the vendors that they wanted. I see that pattern occurring across the country and I don’t think that that pattern is going to necessarily stop. I don’t know. I have a lot of hope for the people that started out in the medical world, that were willing to put their freedom on the line and come out and be that first wave of people that put their fingerprints and submitted their powers of attorney to the State of Colorado, and all that other stuff, to get those first licenses that were medical that might be stuck as mom and pops. I hope they don’t just get washed out with pharmaceuticals.

At the same time, if there is Big Pharma and they are making advancements and they can make better Alzheimer’s drugs and better cancer treatments with cannabis, why would I not want them to do that? I mean, my grandmother passed away from complications of Alzheimer’s, my father was diagnosed with Alzheimer’s. He passed away last summer. My other grandmother had Parkinson’s. I mean, these are things … My stepfather is living with cancer right now. I mean, that’s like everyone in my family. Right? If Merck or Bristol-Myers Squibb or one of these companies that we’d like to vilify as a society, is able to put 500 million into research and grow THC out of yeast and put it into a thing that helps these guys, I mean, passionate or not, who am I to stand in the way of that?

I’m not so self-righteous to say that those people shouldn’t benefit too. But I am also cognizant of the fact that a lot of people took those first steps and are going to just get mauled over when that wave comes, and they’re going to lose everything because they tied it all up. Those are the ones, frankly, they’re going to be stuck with all the 280E taxation once the Feds fix that, and then all the big companies are rolling into. It’s one of those ones where you ducked the first wave and then three waves hit you. The truth is that there’s going to be a lot of early entrepreneurs and movers that are just going to get buried and pinned to the bottom of that thing and never make it out, and that sucks. There’s no doubt, but it’s the truth of where we’re at.

TG Branfalt: Do you think that 280E, it is what has prevented maybe some of these multibillion dollar corporations, alcohol companies, things like that, from getting into some of these more mature-

Travis Howard: No.

TG Branfalt: … markets?

Travis Howard: No, I don’t think that 280E really weighs on them at all, for the amount of money that they would spend and put into that, verse the capital outlay, especially the valuations on the stocks at this point. I really don’t think that that is the issue. I think there’s probably a handful of issues. Some of them are worried about brand tainting, and what does their community, how much of their sales are in the Bible Belt, and if something comes out and they’re public and they need to be disclosing this stuff. I think there’s some banking and credit card and FinCEN type stuff that probably keeps them out.

But when you’re looking at Colorado, why aren’t the pub codes here? Well, it’s because Hickenlooper said, “No.” I mean, flat out. I mean, I understand why in 2010, when the regulators were talking to everybody, why they didn’t want outside and public money in that stuff because we are one of those first movers. But by the time two, three, four states had gone after us and they had allowed out-of-state investment and public company investment and such like that, and Colorado just stood the ground and said, “Nope, we can’t do it. It’s the federal government.” It was just a cop out, and I think it was a way for some people in power to try to keep the industry in Colorado under wraps and under their thumb.

But I think Mr. Polis is quite aware. Where things are going this November, I think you’ll see a giant wave. All right? It’s been a disservice to a lot of folks out there that, that we’re able to put in their first 50 or $100,000 and get a dispensary open, and there was only a certain amount of independently wealthy people in Colorado that had an appetite for cannabis, and those people invested in certain companies. You saw LivWell go through the roof, and you saw Native Roots go through the roof, and you saw other companies that were able to put in and have that kind of cash and capital.

But if you didn’t have access to that person, and once the appetite for Colorado got invested into other places, you watch these other states, the Johnny-come-latelys, be able to go to a fund that’s based out of San Francisco or New York or Delaware or Connecticut, and bring in $50 million. The folks in Colorado that had bootstrapped up to three, four dispensaries, they just didn’t have the ability to do that. I am very glad and hopeful that some of that capital will come in and reward some of those good, hardworking people that did make it through the fight.

On the flip side, I’m sure there’s plenty of people that would take issue with what I just said, that are longtime activists and being like, “Nope, they’re going to come in here and they’re going to steamroll everything.” Well, that’s the other side of the coin. Again, it’s back to what I said, “What’s the reality?” There are going to be some good people that are going to get screwed in this, and there are going to be some good people that are going to get their final saving graces and be able to compete and keep the heart of this industry, from 2009, 2010 in Colorado, alive. But, as with anything, you swallow some good, you get a little bad. I’m not the arbiter of that, but that’s what I see happening.

TG Branfalt: I mean, you’re a very well-spoken, very super intelligent guy. Tell me about moving from being a cannabis lawyer to becoming a CEO, and what some of those challenges were, and how having that legal experience and that legal mind give you a leg up.

Travis Howard: That’s a good question. I appreciate the compliments. I’m just a guy out here learning on the street with everybody else. I don’t think there’s anything special about me except that-

TG Branfalt: You have a law degree.

Travis Howard: … I care. Well, I went to law school. I was very lucky. My dad paid for my undergraduate degree. I didn’t have loans like a ton of other people did. I was able to take my loans and put them towards law school. Had I had full four years of student loans for undergrad, I’m not sure I would have been able to stomach taking more of that. I was blessed to be where I was at and for the things that came my way. CU accepted me, and I love learning. I’m good at school, probably better at school than I am at business, to be frankly.

At the end of the day, the difference for me, coming out of the law, is it was all about me. A long time ago, someone wise told me there are two types of people on earth. There are people who are the gift, and there are people who build and share the gift. Those are the two gift givers in the world. I think to be perfectly honest, I’m more situated on I’m the gift, and not to be conceited, that’s not what that means. What that means is, I like to be with people.

When I’m talking to somebody, standing up for them, inspiring them, asking them questions, getting them motivated, helping them get feelings into words and actions stuff, I feel like my cup is full. They are shining and bright, and filling my cup up. There’s just a lot of spark and fun and energy. That is very easy to do when you’re an attorney working with somebody, and it’s a one-on-one relationship, and it’s just a really brilliant time and moment. Most attorneys aren’t good attorneys if they don’t get off on that, and that they’re not somebody that really appreciates and understands that.

On the flip side, becoming a CEO, I needed to figure out how to both give that to each employee and partner that I worked with, which now was spreading me thin, and at the same time, give that to the entity itself, which was trying to build something of its own to give as a gift. For me to be able to manage my own personality and the things that made me feel good and make me want to wake up and do more and be a positive contributor and then to also keep my eyes on the prize of … But my company is making a promise to give the … one time it was consulting services, operational contracts and now an actual good, balancing that and hiring and finding people.

Ultimately replacing myself as the CEO of Shift, was a wonderful gentleman, Edwin Fowler, and moving myself to the chief strategy officer where I could go back to tribal building and product building and make sure that my brand promises were being met, because managing both of those things was very, very intense. In fact, I’ve thought about, once you have a JD, you can go back and teach, and it qualifies you from some things. Whenever this cannabis thing is said and done for me, at whatever stage that happens, I want to go back and teach future entrepreneurs about those lessons of what you have inside yourself and how to scale through that culture and the .. I have made so many mistakes, Tim.

I have had people that I love dearly work with me and for me, that I couldn’t make good on ideas that we shared together because there simply wasn’t enough of me. It was painful for them, and it was painful for me. Those are things that sometimes you have to cut ties and move forward, and do all of these things. It’s very hard to keep … You can’t have sacred cows, and you start with a roomful of sacred cows, and how do you navigate that? I’ll tell you what, there is no shortage of the need for mentors to walk that through, and I’ve had a good amount, for my time, help me and I’m learning every single day. I’m 41 years old, and I feel like I know nothing. That’s how I feel every morning I wake up.

TG Branfalt: It’s a very Einsteinian thing to say.

Travis Howard: I don’t know. But what I know is the truth. I mean, at the end of the day, my wife is such a wonderful person. She’s deadly honest with me. A very strong Jewish woman who just speaks her mind and runs my house and my family, and I am a cog in her world. Trust me on that. She is one of the brightest people in my life, but just a great mirror. I can tell you, for as many lessons that she still tries to teach me, I am certain that I don’t know much yet.

TG Branfalt: You talked about the contributions and the promise of your company. Tell me about the Safe Roots Foundation. What do you do there?

Travis Howard: Safe Roots is a couple of great guys. Ethan Zohn and Kirk Friedrich, these two guys, the cannabis community will hear plenty more about Ethan and some things that he’s doing. He was one of the gentleman’s that first … one of the first survivors and then ended up getting diagnosed with cancer and making it through. Just an absolute inspired life and person. These two gentlemen had played professional soccer, ended up playing together various places, but in Africa they saw what HIV was doing. They told me something ridiculous. While they were in … I don’t want to butcher the country, I can’t remember which country it was.

I want to say Ethiopia, but that might not be right. But I believe it was an eastern country. They said something like 30% of the adults that were living there, while they lived there, had funerals. Every weekend was just the whole town was … and they realized that it was taboo to talk to the kids about sex and condoms and this stuff. They’re just like, who do they trust? Of course, soccer, football over there was such a big thing. They put together this grassroots foundation that was helping coaches and teachers who … Some of the most influential people in my life were teaching me soccer and football and hockey as a kid in Colorado and Wyoming.

These guys did that and really made a huge impact, and they ended up working with the Bill and Melinda Gates Foundation and a lot of stuff. Well, they saw cannabis as a way to get into something that we don’t do a very good job of in the United States, which is being honest with our youth about drug addiction and harm reduction. As a parent for myself, I’ve got three kids, they all know the word cannabis. They know marijuana, they know the difference between medical cannabis, they know the difference between recreational cannabis.

They know what it smells like, they know what it looks like, they know what to do if they find it somewhere or if a friend brings it to them, just like they know with bleach, paint, power tools, knives, guns, anything else dangerous that is a tool and useful for one thing but not for children without supervision or whatever the circumstances are. With all of that stuff said, they said, “Geez, cannabis is a topic that is hot that people are talking about. There is a change in how we’re looking. We want to put some of our paradigm from this grassroots foundation and what we’ve learned, and we want to build Safe Roots which can start talking to teachers and coaches, and this sort of thing, for children.”

The reality is … and of course, that’s a 21+ market. The truth of the matter is, is I used cannabis before I was 21. I don’t want my children to drink or use cannabis or do anything. In fact, I hope they go their whole life as sober individuals. I don’t think that that’s reality. I’ve got three of them. Maybe one of them will choose to live a sober life. But I can tell you one thing, if they’re 17 or they’re 30 and they’re out in a situation and somebody is peer pressuring them to slug the fifth of whiskey, to try this line of cocaine, or to smoke the joint, I want them to know the lesser of those things. I want them to be educated on harm reduction, and what to do and how to do it.

When I talked to these two guys, they were just preaching to the choir, and I was like, “Guys, I am in love with what you’re talking about.” We’ve got a couple of things going on at Shift. We’ve looked at, one, going into New Mexico, where we’ve got the dispensaries. New Mexico, in general, has a depressed economy. It’s one of the poorest economies in the country. It’s got a lot of alcohol and hard drug, methamphetamines, glues, paints, that stuff going on. You’ve got some cultural clashes and issues going on in the State as well. Also Safe Roots … Kirk lives in Albuquerque. It looked like just one of those, “Oh man, no brainer. Let’s put these things together.”

That’s something that we’re working on together and trying to get more cannabis companies and other sponsors to get that up off the ground and going, in addition in Colorado. One of the things that Shift is going to support financially as well is, there’s a Communities That Care program that is about youth prevention and harm reduction. There is a Communities That Care chapter out in Ridgeway, Colorado, which is out by Telluride in the Durango area, where we have one of the companies that I own, is called Dalwhinnie. We’re building a luxury cannabis company on this beautiful ranch, and I can explain part of my normalization push there.

But that brand where we have cultivation, where people are working. There’s a thousand people live in Ridgeway, and we’re the second largest employer in the county. Once we have our greenhouse open, we’ll probably be the largest, even above the school district. We feel like it’s really important to be involved out there, so we’re looking at that. Kirk is coming up next week to talk to that group and see if this is one that Safe Roots can support and make grants for.

Ultimately, Safe Roots wants to be collecting nonprofit funds and distributing them back out into, some instances, its own sports education programs, and in other instances, other community programs that have similar missions that the money can work with, because … especially, some of the stuff that’s coming out over the next few months from Ethan, which will be a national PR push. We believe that Safe Roots will be able to attract donors at a level that a lot of these local community groups won’t be able to. That is certainly something that Shift believes in and wants to be behind.

TG Branfalt: You’re in Colorado, it’s a mature market. You have children. Do you think that the Department of Health there … I should ask, what is the Department of Health doing in terms of harm … Is it harm reduction or they’re doing more propaganda? What are they doing in this regard?

Travis Howard: Yeah. I mean, some in both. Again, it’s intentions versus executions, and I don’t want to belittle any of the efforts at all. I do think some people have made a mockery of the Good to Know program, and there are some interesting propaganda points that I see on some of the public buses, and I’m like, “I’m in the industry, I’ve known cannabis a long time. I don’t even know what that sign means.” There is some stuff there that I scratch my head and wonder why we’re spending our money on it.

But at the same time, there is also a lot of the good programs. I think the Good To Know started with some of those unfortunate and terrible tragic accidents that came off of eating high dose edibles for people that didn’t understand. I know that whole wave that went through in 2014 and 2015 that was very sad for some very specific individuals. I think that was a good part of the program. But there are pieces of that program that is semi propaganda but is also very functional and useful across the board.

But what I see is a lot more of the local side. Sitting on the Boulder Marijuana Advisory Panel for the last few years, rewriting regulations, there were only three constituents from the industry on that inaugural panel, and they had somebody from Boulder Valley School district, they had two parents and community members, they had Boulder County Health on there. We had to balance the advertising. You can go in most of the states, and you can do giveaways of stickers, not in Boulder County. You can’t in the City of Boulder. I can’t give stickers away at a dispensary, I can’t do a buy one and get one for free. You can’t give schwag out for free. You have to sell it at cost.

They don’t want a proliferation of cannabis advertising going out to the youth, and they feel like stickers are a youthful movement. Of course, one of the things this is, is you’ve got this giant university sitting here, and three out of the four years at university in the undergraduate, you’re probably too young to be a participant in the recreational program. There’s been a lot of push in that regard, which has been probably good for the community, but it’s been tough for businesses because the competitors get to do that.

It’s also frustrating when you walk into a bar. I mean, I frequent Avery brewery. It’s by my house, it’s here in Boulder, and I walk in there, and they’ve got two month old onesies with Avery logos all over it. I’m like, “You can dress your kid up in beer outfits all day long and take your kid to Coors Field, but I can’t hand out stickers.” Yeah, it’s asinine. But at the same time, it’s really hard pressed when you look those people … This gentleman, Heath Harman, one of the best guys I know. We both have diabolically different views of what we want out of the cannabis industry.

However, sitting at that table, we’ve become good friends, and we respect each other. The truth is, in a community, back to my point about entrepreneurialism, you can’t just do it’s all for me. You have to be thinking about your community. When you see a guy like Heath that’s talking about real statistics, that really cares about the youth in his community, and he’s making bonafide statements, I can’t hold him accountable for the alcohol industry. I can’t hold him and blame him for some other laws that are hypocritical. I have to take him at face value, and say, “You’re right. You are making something. You’re making a statement that is logical to me, that makes sense, that we should consider these things.”

I recommend for, as many people as they can, to become a part of these political committees where you’re forced to work with, not just politicians but stakeholders in the community, that see things differently than you. One of the most unique parts about the Boulder Marijuana Advisory Panel is that when the city council gave it authority, they didn’t say that we had to come back unanimous. But we determined, in our very first meeting, that we were not going to put forward any recommendations to that council that weren’t unanimous.

To this day, that advisory panel has never taken a vote. If it’s not unanimous, we haven’t moved forward. We figured out how to come to a consensus and then make our recommendations. That process in itself would be great for our society. Forget cannabis, forget anything else. In today’s spectator sport, I mean, when did politics stop being something that you do yourself and becomes a spectator sport, like you’re rooting for your local football team?

TG Branfalt: I could sit here and talk to you for another hour, but we are running a bit long. Before we go, I want to get your advice for other entrepreneurs interested in joining the cannabis space.

Travis Howard: Well, I’ll tell you right now, the biggest piece of advice that I would give is the piece that I would go back 10 years and give myself, which is, with anything … They always says, “Well, when opportunity knocks.” That is horse shit. You are going to have so many opportunities knocking all day long. It is about weighing those opportunities and staying focused. Cannabis is just a microcosm of that, and a lens that has magnified that to a degree that you could quite easily build a business plan that makes you doing everything, being everything for everyone.

It would be so easy in cannabis to get caught in that trap, and what I would say today when, especially in Colorado and the new states that are allowing you to specialize, is take your 10th draft of your business plan and cut that in half. One simple specific thing and just go at it wholeheartedly. Even if you’ve got opportunities thrown at you every day, all day, for the next five years, stay laser focused. That’s my best advice right now in the cannabis industry for a newcomer.

TG Branfalt: Really great conversation. Could you tell us where we could find out more about you and Shift?

Travis Howard: Yeah. You can go to shiftcannabis.com, or Shift.Cannabis at Instagram. I got a lot of pages up there for all of our so called Shift mates. We’ve got phone numbers on there for the sales team. There’s 40 or 50 dispensaries around the metro area and the mountain area where you could find our products. But feel free to send us an Email, info@shiftcannabis. It comes to my desk. I respond to every single one or I put it in touch with the right people. We’re not shy, we’re here to talk, we’re here to help. We want to be a part of the solution in the future.

TG Branfalt: Travis Howard’s the founder of Shift, a serial entrepreneur, a really great guest. Thank you so much for coming on the show, Travis.

Travis Howard: Well, it’s my pleasure. I’m honored. Thank you for having me on here, and for giving us all a platform to share. Appreciate you.

TG Branfalt: Thank you. You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com, and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim at Media House. I’ve been your host, TG Branfalt.

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Utah Awards 8 Medical Cannabis Cultivation Licenses

Eight companies have been awarded medical cannabis cultivation licenses in Utah, two short of the maximum allowed under the law as officials look to avoid an oversupply, the Associated Press reports. The announcement comes three days later than officials had originally predicted.

The winners include Standard Wellness Utah and Wholesome Ag., who have grown cannabis in Ohio and Connecticut, and Oakbridge Greenhouses, who currently grows hemp for the state.

Christine Stenquist, director and founder of advocacy group Together for Responsible Use and Cannabis Education, or TRUCE, told the AP that she is concerned that eight cultivators won’t be able to meet high patient demand in Utah. The Department of Agriculture and Food estimates patient counts around 100,000, while Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, said the group anticipates patient counts of 180,000.

“We’ve waited years for these big steps to happen. But we’re not giving the patients the care they need with restricted grows and dispensaries.” — Stenquist, to the AP

The license winners still need to pass background checks before their contracts are finalized. Tom Paskett, the executive director of the Utah Cannabis Association, told the AP that he was optimistic about the state’s choices because many of them have strong reputations in the industry.

“Companies will have to work together to have clean facilities and a strong public presentation,” Pasket said in the report. “This program needs to be perfect for Utah, and I think we have a good group of people to accomplish that.”

In all, 81 companies applied to grow medical cannabis in the state. Voters approved the law last year but it was changed by lawmakers to ban edibles and home growing and limit the number of qualifying conditions for the program.

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Pennsylvania’s UScienses Now Offering Medical Cannabis MBA

The University of Sciences in Philadelphia, Pennsylvania is now offering a Master of Business Administration for medical cannabis education, the Philadelphia Enquirer reports. The program, offered by the USciences Substance Use Disorders Institute, is the first MBA program of its kind in the nation.

Andrew Peterson, executive director of the USciences Substance Use Disorders Institute, told the Enquirer that the program is “concentrated on the pharmaceutical and health care industries, where medical cannabis fits very nicely.”

The institution is partnering with Denver, Colorado-based Franklin Biosciences to help develop the program. Franklin operates Beyond/Hello medical cannabis dispensaries in Pennsylvania.

“We’ve already gotten interest from existing students. I don’t think we’ll get hundreds enrolling at the start, but we’ll get a good class. We usually enroll about 15 to 20 people in these classes. I think we’ll hit that target.” – Peterson, to the Enquirer

USciences will offer four classes online including Introduction to the Medical Cannabis Industry; Finance and Regulation of the Cannabis Industry; Cannabis Marketing and Sales; and a course wherein a team of students will create a project, write a business plan, or develop a product.

Each two-credit course costs about $2,000 and registration has already started.

USciences is the latest traditional higher education institution in the U.S. to offer a cannabis-centric degree program or course. Last month, the University of Maryland School of Pharmacy announced it will offer a master’s degree program in medical cannabis, while the University of Connecticut said it would bring a cannabis horticulture class online after the on-campus version overenrolled.

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Texas Gov. Signs Hemp Legalization Bill

Texas Gov. Greg Abbott has signed the hemp legalization legislation that also allows CBD production and sales. The measure was unanimously approved by both legislative chambers, passing the House in April and the Senate in May.

Agriculture Commissioner Sid Miller told the Dallas Morning News that he was “excited” about the reforms, which he called “another tool for farmers that are looking to diversify their farming.”

“Texas will be a leader in hemp production, and we will be submitting our plan and writing rules to follow the 2018 Farm Bill and the law recently enacted in Texas.” – Miller, via the Morning News

The bill’s passage comes nearly two months after the Texas Department of State Health Services removed hemp from its dangerous drugs list.

The reforms require farmers to pay a fee for cultivation licenses and for THC content lab tests. The state can inspect registered farms to ensure they are complying with the law. While the law takes effect immediately, it’s unlikely that the state plan will receive USDA approval for this growing season.

The Department of Agriculture is responsible for overseeing the farms and issuing licenses to grow the crops while all products make for human consumption in the state will be regulated by Texas Health and Human Services.

Texas joins several other states, including Iowa, Connecticut, Hawaii, and Florida, in legalizing hemp production following the passage of the 2018 Farm Bill, which removed hemp from the federal Controlled Substances Act. That law requires state plans to get USDA approval; however, the agency has not yet approved any state-submitted plans.

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Utah to License 10 Medical Cannabis Growers

Utah will license 10 cultivators to grow medical cannabis crops for the state’s medical cannabis patients, according to a KUTV report. Under the state law passed last year outdoor cultivators can grow up to 4 acres, while indoor grows are limited to 100,000 square feet.

Both the cultivation limits and the number of licenses will lead to over or undersupply, depending on who you ask.

Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, told KUTV that there would be an oversupply if all 10 cultivators were growing their max limits. Ure said the state’s 100,000 patient estimate is more than double what the department is planning.

Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, believes the state’s patient counts will reach 180,000, which means that Utah’s cultivators would not be able to meet the demand. He pointed to Connecticut and New Jersey – which have similar grower caps – and said “the lesson there is…the amount of market demand is underestimated.”

Utah dispensaries are slated to open next year – many advocates are worried, however, about the state law limit of just seven retailers for the entire state.

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Medical Cannabis-for-Pets Bill Introduced In California

A bill introduced in California would allow veterinarians to recommend cannabis products for pets, VIN News Service reports. The measure first needs to pass a review by the state’s Veterinary Medical Board but, if approved, would be the first of its kind in the U.S.

Last year, state regulators recognized cannabis in veterinary medicine, becoming the first state to provide legal protections for vets who talk to pet owners about cannabis use for their animals. This bill takes those protections a step further.

If the Veterinary Medical Board doesn’t support the measure it will likely see no further action; however, even a neutral stance would enable it to move forward, the report says. The board would also be responsible for developing guidelines for vets to follow by January 1. The board has released draft guidelines which could mirror the adopted guidelines if the bill is passed. That document does warn practitioners that “no federal or state agency oversees standardization of cannabis product concentrations for use on animals” and “research to-date is lacking conclusions regarding dose, toxicity & efficacy.”

Last year, CannPal Animal Therapeutics began a cannabis-for-dogs study in Australia for its leading drug candidate CPAT-01. In the U.S., a Cornell University College of Veterinary Medicine study last year found a hemp oil product “efficacious” for dogs with arthritic and geriatric pain. In 2017, Creso Pharma received approval from the European Union to sell CBD products for pets.

A bill similar to the California proposal was introduced in New York last year but gained no traction in the legislature. A measure in Connecticut would provide similar protections for veterinarians as the current California law, while a Tennessee bill would protect vets from professional discipline for recommending industrial hemp-derived products.

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Illinois-Based Cannabis Company Raises $90M

Grassroots Cannabis has completed its first capital raise of $90 million to expand its operations, the company announced on Tuesday. The company announced in December it was seeking $40 million in capital and ultimately increased the round to accommodate the subscriptions.

Grassroots indicated they plan to expand cultivation facilities in Illinois, Maryland, and Pennsylvania, build out its recently obtained dispensary licenses, and work with Vermont-based partners PhytoScience Management Group to expand its cultivation and testing lab facility and hemp-derived CBD business.

Brian Schinderle, the company’s executive vice president of finance, indicated Grassroots’ footprint is now in 11 states.

“We would like to thank the strong support we saw from both existing and new investors and look forward to continuing to earn their allegiance by both executing on our existing plans and looking to prudently continue to expand our platform.” – Schinderle, in a press release

The company has so far raised $165 million in equity and equity-linked securities to date. The recent round was led by Beacon Securities, Ltd., and Stoic Advisory, Inc.

Grassroots also operates in Michigan, Oklahoma, Ohio, North Dakota Arkansas, and Connecticut.

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New Hampshire Statehouse

New Hampshire House Passes Adult-Use Legalization

Lawmakers in the New Hampshire House of Representatives voted 209-147 in favor of legislation that would legalize and regulate adult cannabis use, the Associated Press reports.

Under HB 481, adults who are 21 or older would be allowed to possess up to 28 grams of cannabis flower and grow up to six plants at home. The bill would also establish a regulatory commission to create rules for and manage a commercial cannabis industry that is expected to generate $33 million in annual taxes.

“I know change is hard. It’s a little scary,” the bill’s sponsor, state Rep. Renny Cushing (D), said ahead of the vote. “But I think now is the time that New Hampshire makes the transition from prohibition to real legalization, taxation and regulation.”

New Hampshire Democrats, who added legalization to their platform last year, recently gained control of both the House and Senate. Republican Gov. Chris Sununu, however, has already promised to veto the legislation and it’s not clear if Democrats would get the two-thirds majority required to overrule the governor.

State Rep. Cushing, however, said he believes the bill will eventually become law. “I’m confident that the force of history is with us,” he said.

“The House vote highlights just how little support remains for maintaining marijuana prohibition in the Granite State. Most New Hampshire residents agree it is time to legalize and regulate cannabis. There is no reason to continue punishing adults for consuming a substance that is less harmful than alcohol, and it is counterproductive to force them into a potentially dangerous illegal market to access it.” — Matt Simon, New England Political Director for the Marijuana Policy Project, in a press release

New Hampshire is bordered by Massachusetts, Maine, Vermont, and Canada — each of which has already ended cannabis prohibition. The nearby states of New York, New Jersey, and Connecticut are also considering adult-use legalization this year.

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Morgan Fox: A Federal Cannabis Policy Update

Morgan Fox is the Media Relations Director for the National Cannabis Industry Association (NCIA), the largest cannabis trade organization in the U.S. Ganjapreneur is a Sponsoring Member of the NCIA and we encourage all businesses operating in the cannabis industry to join and support organizations that lobby for sensible cannabis policy.

Morgan recently joined our podcast host TG Branfalt for a wide-ranging interview covering recent cannabis reform progress in legislatures at both the state and U.S. federal level. In this interview, we hear about the work that the NCIA is doing to benefit cannabis entrepreneurs, what the NCIA’s top priorities are for 2019, what business owners and advocates can do to help support progress on these issues, and more!

Listen via the media player below, or scroll further down to read a full transcript of this podcast episode.


Listen to the interview:


Read the transcript:

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TG Branfalt: Hey there, I’m your host TG Branfalt and you are listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Morgan Fox, who is the media relations director for the National Cannabis Industry Association. How are you doing this afternoon, Morgan?

Morgan Fox: I’m doing well, thanks for having me.

TG Branfalt: Super stoked. I’ve actually been trying to get you guys on line for a while, but you’re doing a lot of stuff, so I know you’re busy today. So let’s get right down to it man. What’s your background and how’d you get involved in the cannabis space?

Morgan Fox: Well I actually started as an intern at Marijuana Policy Project back in 2008 shortly after I got out of college and I’ve been doing it ever since. I just fell in love with the urgency and the complexity of this issue and as a cannabis consumer myself, I was sick of seeing people be criminalized for using something that’s safer than alcohol. So I just dove in headfirst and I’ve been doing it ever since.

TG Branfalt: What’d you get a degree in?

Morgan Fox: Political science.

TG Branfalt: Oh, cool, man. Then you end up doing media relations. So what does the NCIA do? Give me sort of the broad overview of what you guys do over there.

Morgan Fox: The National Cannabis Industry Association is the country’s largest cannabis industry trade organization. We concentrate primarily on federal lobbying for fair treatment of cannabis businesses and the end of cannabis prohibition so that states can determine their own policies and open up their own legal markets. We also develop resources for people working in the industry and put on events in order for people to showcase their innovations and help network with other business professionals.

TG Branfalt: And what were some of the NCIA goals that you guys had in 2018, and what did you accomplish?

Morgan Fox: Beyond just moving the needle quite a bit on a number of these issues, we were able to help get the medical marijuana protections included in the base bill of the appropriations legislation this year, which was the first time that it happened and I think really goes to show that protecting state medical cannabis programs from federal interference is a non-issue in Congress now.

Beyond that, we were able to help push banking protections and 280E and increased veterans acts as an increased research a little bit farther along despite opposition from some key committees in Congress and from some old school obstructionists that we unfortunately still have to deal with some of.

Obviously the initiatives that have passed in the midterms, that was a huge deal. NCIA helped out to varying degrees in all of those campaigns and we’re very happy that they were successful. Even North Dakota, which lost really helped really move the needle there as well and we’re hopeful that state can make another go at it in 2020.

When it comes to Congressional issues, the midterms were huge for us as well and for cannabis policy reform generally. 46 out of the 56 congressional candidates that NCIA PAC donated to won their elections, which is gonna help us pave the way for serious progress in 2019 and the flip in the control of the House with the Democrats means that certain key committees, particularly House rules that blocked all of the cannabis reform amendments and legislation from being heard by the full House is now under Democratic control so we think we’re gonna have a much easier time of getting hearings in the coming Congress. In fact, one small perk of it is now that Democrats are in control of the Washington, DC appropriations committee, DC might finally be able to regulate it’s legal cannabis market.

TG Branfalt: Throughout your time working with NCIA, what has the evolution been? Have you seen a softening? Have you seen a softening from Congress in general or have you flipped the minds of anybody that you’re aware of?

Morgan Fox: Well I’ve only been with NCIA for a year but in the 10 years that I’ve been in the movement it’s obviously been a total sea change. When I started in this issue, I think there were maybe 11 medical cannabis states and no legal states. So we’ve definitely come a long way in the last decade, but just in the last year, I think that we’ve definitely made a lot of progress and the midterm elections were an excellent example of that with cannabis becoming an issue that is not only no longer dangerous for politicians, but actually gonna help people on both sides of the aisle. No matter what party you’re in, supporting legalized cannabis will guarantee to bump your polling a couple of points and that I think is a really big evolution that not only has that been happening, but that politicians are finally starting to realize it, so they’re less afraid of tackling the issue.

TG Branfalt: So let’s talk about your goals and objectives for 2019. What’s the NCIA trying to do for this coming year and this coming legislative session?

Morgan Fox: Well at the very least we’d like to get a hearing on some sort of a comprehensive legalization bill. Whether that takes the form of federal decriminalization or an outright regulation bill, just something that will allow states to determine their own policies without federal interference. It is going to be the major overarching goal. It’s questionable about whether we’ll actually be able to get a vote, but at the very least, we’re confident that we’ll be able to get a hearing, which will be the first time that’s happened in quite a few years. We’re also very confident that we’ll be able to make some progress if not finally pass something along the lines of the Safe Banking Act to allow banks to do business with the cannabis industry and at least push the 280E issue more to the front, and we’re also hoping that we can develop a much larger Cannabis Caucus in the coming years and I think that we’re already getting interest from a lot of people on the hill about this issue, so we’re very hopeful that things are gonna look good for the next Congress.

TG Branfalt: So you mentioned the banking issue and trying to push something through Congress. Are there any potential fixes save for federal changes to address this banking issue, which is a giant problem for every legal cannabis industry operator?

Morgan Fox: Not really. Right now it’s actually legal for banks to do business with the cannabis industry as long as they do a huge list of criteria with regular reporting of every transaction as well as a whole other list of restrictions that make it very difficult for banks to be able to justify it from a business perspective, but also scare away a lot of people in the cannabis industry because they don’t want to have to do regular federal reporting because if there’s a change in the winds in the Department of Justice, they’ll be front and center as a criminal organization doing all this business and all of their information will be right out there for the DOJ just to snap up and go after them. Now that’s very, very unlikely to happen but I can see why cannabis businesses would be nervous about that. But it is possible, but what we really need is a substantive change in the law that provides safe harbor to banks working with businesses that are in compliance with state law.

TG Branfalt: So you mentioned that you don’t anticipate a crack down, federal policy has so far not interfered much with existing programs. Jeff Sessions, he’s out. I know everyone was really nervous while he was head of the DOJ. Congress included hemp legalization in the federal farm bill and I know that that’s not legalized cannabis, but how much of an impact could the hemp legalization have on cannabis policy throughout the US going forward?

Morgan Fox: Hemp was only made illegal because of the reefer madness directed at cannabis and the fact that now the prohibition against hemp has been greatly lessened and stripped out of law and was supported so overwhelmingly by both parties, I think is a sign that reefer madness is starting to dissipate. It’s also really good because it’s sort of a stepping stone for a lot of politicians that might be a little bit nervous about the issue. I think it’s obviously a good sign. It’s also going to be great for innovation in terms of production when the individual states start applying for hemp licenses from the federal government and are able to start setting up farms and setting up production quotas and all these other structures that are necessary under the new farm bill. It’s good practice for the states and good practice for the federal government in developing regulative cannabis systems.

TG Branfalt: And a lot of the sort of headlines after McConnell signs this piece of legislation with his hemp made pen, sort of screened CBD will be legal, there’s a lot of questions. There’s a lot of people claim to have answers, no firm answers. I have sort of my own understanding. What is your understanding about what this federal legalization of hemp will do for CBD?

Morgan Fox: Well the bottom line is that CBD remains a Schedule 1 substance under the controlled substances act and is currently banned by the FDA. The farm bill specifically says that nothing in the bill interferes with the FDA’s ability to regulate CBD. The only carve out that the farm bill provides is that CBD is exempted from the controlled substances act in states with approved programs and that is it.

I’m sorry, I should elaborate on that. So even though it is exempted from the controlled substances act in those states with approved programs, it’s still subject to FDA regulation and the federal government could become involved if there are any sort of sales going on of CBD products. But that’s sort of the problem with any sort of legal cannabis or medical CBD state. It’s still federally illegal and at the whim of the federal government whether or not they want to start processing or investigating those things. Will they? That remains to be seen. But they can, so anybody that’s involved in the industry should definitely consult a lawyer and be very careful about knowing exactly what risks they’re taking.

TG Branfalt: These first couple of years of the Trump Administration, when he was elected, the industry was sort of screaming. It was sort of on edge. Is it surprising to you guys at all that there hasn’t been any sort of major interference in the Trump era?

Morgan Fox: Not really. On the campaign trail, Trump said that he was definitely supportive of medical cannabis and that he thought adult use should be left up to the states. He reiterated that once in office and it’s really not an issue that’s at the forefront of his mind. Very recently he’s said that he would support the States Act, so these are all good signs. I just think that anybody that’s worried about a Trump direct crack down probably shouldn’t worry about that because he’s voiced support, and it’s not a major issue for him.

TG Branfalt: So I want to switch gears a little bit and talk to you about the recent successes the states that are going online, which of the new markets excites you most? Massachusetts just started sales, Maine is inching closer. They’ve had some process problems. Michigan just legalized. So which one’s exciting you guys most?

Morgan Fox: Maine has obviously had a huge problem with implementation and getting the regulations passed and they seem to be inching closer to opening sales, but it’s already been two years. But hopefully they’ll be able to get something going soon. Massachusetts shows signs of being a wonderfully regulated system and is still working on fleshing it out. Michigan obviously hasn’t started regulating yet, but I think that in terms of outlook, Michigan is probably the most exciting for a couple of reason.

One, it’s the first state in the mid west to legalize cannabis for adult use, which is going to be a game changer, and especially in terms of public opinion in somewhat more socially conservative states. It allows for an unlimited number of micro business licenses which will allow hobby farmers and small mom and pop stores and other small businesses to be able to create a niche in the market without having to deal with any of the onerous regulatory licensing fees or having to compete with major businesses for a limited number of licenses. Also it’s just simple population. Michigan is the second most populous legal state behind California, and that’s just huge.

TG Branfalt: And sort of looking ahead to 2019, I know that you guys are more focused on federal policy. There’s been a lot of talk that Rhode Island is on the verge of passing a legislature approved legalization measure. In New Jersey, the legislature recently voted on legalizing cannabis in not a binding vote, but it was pretty overwhelming, and I live in New York and I can tell you that if New Jersey falls, New York is not far behind and lawmakers here along with Governor Cuomo are looking at their own legalization measures.

Have you guys sort of been internally discussing which is gonna be the next domino to fall?

Morgan Fox: A lot of states in the northeast seem to be on the verge. You mentioned New Jersey which has been having serious discussions about the issue. Connecticut and Delaware are also doing so and have been actually considering legislation for the last couple of years now and seem to be right on the cusp. I’ve been hearing a lot of things from Governor Cuomo in New York and a lot of New York legislators who are also very supportive and want to see this get done quickly. I think that New York might take a little bit while longer, but I think really the one to watch is Illinois.

Following the midterm elections and the election of J.B. Pritzker to governor, he is very supportive of legalization and has actually said he wants Illinois to beat Michigan to opening retail stores and has already put together a task force featuring members of the industry including the head of Cresco Labs, Chris Lindsey from the Marijuana Policy Project is on that task force. Things are definitely moving in the right direction. There’s a lot of supportive state legislators in that state as well and I think that with that kind of momentum and that kind of top down motivation to get this done, it might actually beat some of the states in the northeast.

But it’s anybody’s guess as to whether the states like New Jersey, Delaware, or Connecticut are going to go first, or maybe it’ll be something like Vermont actually deciding to regulate their market. Or New Hampshire deciding to take the advice of it’s educational task force and actually move forward with legalization as well. It’s really difficult to tell who’s going to be first, but the fact that all of these states are considering doing so at relatively the same time is indicative of how far this movement has come and how quickly this is becoming the new reality.

TG Branfalt: So we haven’t hit a critical mass by any means yet, and I just want to touch back on this banking issue because it is so important, how much more important is this banking issue becoming as states are going online?

Morgan Fox: It’s obviously an issue that affects every business that directly touches the plant, and as more and more of those businesses come online, it becomes a much bigger problem. It’s not just a problem for those businesses, it’s a problem for everybody involved in their finances and that includes the federal government and the IRS. So we’re already seeing increased interest from banking associations to address this issue. We’re seeing increased interest in Congress to address this issue and because it’s not directly related to cannabis policy in terms of what people are doing with the actual plans and with cannabis products, it’s just basically an economic issue, I think it’s a lot more palatable to a lot of members of Congress.

TG Branfalt: So save for full federal legalization, would you say that the banking issue is probably the sort of the potential game changer on a federal level at this point in the legalization process?

Morgan Fox: It’s definitely up there. It’s one of the two most important non-comprehensive issues that we deal with and would certainly allow banks to profit. It would allow businesses to profit and be able to use financial services much more cheaply than they do when they can do them at all. Just in terms of optics, it would normalize this industry in a way that I think that it hasn’t been up to this point at a federal level.

TG Branfalt: So you mentioned that’s one of your top two issues. What’s your second top issue?

Morgan Fox: Well we’re also working on 280E, which as you know prevents businesses from being able to deduct business expenses when they’re filing federal taxes and that can be incredibly expensive to the point where it makes many businesses nonviable.

TG Branfalt: How hard is that for people to comprehend when they’re entering the space? How many sort of new operators do you try to advise solely on this issue or talk to solely about this issue?

Morgan Fox: There’s so many cannabis focused accountant groups now that the services are there to make sure that people are very aware and one of the things that we do at NCIA is make sure that members are connected with people that provide such services and at least know of their existence so that if they choose, they can decide to, or go after their advice and take advantage of the expertise of people who have been working with cannabis businesses for years now.

I think that it’s pretty common knowledge that this is a problem and that the cannabis industry has been taxed unfairly, but we definitely would like to make sure that people know about the problems that this creates for businesses. Generally when people are becoming NCIA members, they are already involved in the industry, so they already probably know, but we just like to make sure that they know that there are resources out there to make sure that they are in compliance with those and then don’t get some huge bill from the IRS a couple years down the road and potentially have to go to prison over it.

TG Branfalt: You work very closely with a variety of operators in the space. What sort of trends have you seen in terms of during the last year, what business types do you see popping up in the space more so than others?

Morgan Fox: We’re seeing a lot of, just in terms of the actual cannabis market, we’re seeing a lot more people getting involved in extraction and making concentrates, edibles, and the professionalism that’s involved in that has just been exploding as well as the innovation, but the ancillary industries that are deciding to focus on cannabis are really what have been blowing up. I think that only about 40% of our membership actually touch the plant, are involved in the cultivation, extraction, processing and retail. The rest of them are all ancillary businesses that have for one reason or another decided to focus on the cannabis industry and that’s, as I mentioned, accountants, software programmers, security, transportation, everything from general contractors, real estate, even plumbers. People that produce lighting equipment, people that produce nutrients. All of these businesses are taking advantage of the rising tide of the cannabis industry.

TG Branfalt: So you mentioned such trades as plumbers. Are you seeing people who have been plumbing or doing a trade for a long time come into this space or are you seeing sort of younger folks who are just sort of learning or just learned that trade or just getting involved in that trade enter the space?

Morgan Fox: Just anecdotally, earlier this year I was talking to a guy who had a small plumbing business that he was in danger of going under three or four years ago and when the state that he lived in decided to legalize cannabis, he saw his business overnight just basically recover and then double and then triple in revenue to the point where he’s actually hiring people and creating jobs now. We’re hearing those sort of stories all over the place in a number of different ancillary industries.

TG Branfalt: So for someone like a plumber, this is fascinating to me, is it because more straight laced plumbers don’t want to go into these places or are they learning and working on treatment systems? I’m very curious as to what role.

Morgan Fox: We’re seeing traditional straight laced professionals and tradesmen come into this industry and realize what a boom it is. Sometimes it’s a majority of their clientele, sometimes it’s only a portion of their business, but the people that are willing to actively pursue working with cannabis businesses are seeing a real benefit.

TG Branfalt: That’s really, really fascinating stuff to me. I want to talk to you, again, you work with so many different businesses that sort of span the industry, what consumer trends are your members talking about that they’ve noticed in say the last year or so and do they expect those trends to continue into 2019 or what might shift?

Morgan Fox: From what I’ve been able to tell, it seems as if, and this has been happening for the last couple of years, but concentrates are increasingly becoming more popular. Flower is still king, but it’s market share is starting to lessen and I think that might be largely because of both the convenience and discretion and lack of smoke involved with a lot of vaporizable and edible products.

TG Branfalt: And is this something you think you’re gonna continue to see going forward or might it shift to where edibles gets more of a market share?

Morgan Fox: I think it’s really difficult to say, and it also depends a whole lot on consumer education. I think for many years people probably were very interested in edibles because, especially for new consumers, they weren’t comfortable with or weren’t familiar with smoking or they still had some sort of a hangup about it and they were maybe a little bit scared of vaporizers, but eating a brownie or a cookie seemed familiar to them. But then you have the opposite problem where people didn’t have enough education about dosing and things like that, so then they might have had a bad experience, it really does come down to people becoming more familiar with this product as well as by producers making sure that they are following the very strict guidelines laid out in terms of dosage and labeling.

TG Branfalt: So I just want to take another step back to this idea of traditional sort of trades people getting involved and I wonder about staffing. Are your members having any trouble finding qualified employees to work in this space?

Morgan Fox: I have heard that from some areas, but along with all these ancillary industries growing up, we’re also seeing tremendous growth in cannabis industry staffing companies like THC Staffing and Vangst. These are companies that are making sure that people know that just because you don’t necessarily have any experience with cannabis or in the cannabis industry that it is a growth industry and that you can take applicable skills from other areas and apply them in this industry and that’s becoming more and more popular.

TG Branfalt: So just to sort of sum up here, we’ve talked about a lot of different things. We’ve talked about banking, we’ve talked about 280E, are these the most pressing issues for the cannabis industry as a whole heading into 2019?

Morgan Fox: Well I think the most pressing issue is ending cannabis prohibition because that will make it much easier for states to open up new markets, but most importantly it will stop people from getting arrested for using this product. But aside from that I think that banking and 280E are probably the most important issues for the industry at this point.

TG Branfalt: And briefly, you mentioned the criminal justice aspects of it. The federal government, as you probably know, is working on a criminal justice reform bill that while it’s not going to release cannabis prisoners per se, on a federal level, it will make some changes, it will reduce some sentences, let some people out because the federal jails are overcrowded. Is this, to you guys, sort of a step in the right direction towards maybe a federal wipe of cannabis crimes? Is this possible?

Morgan Fox: Well because most cannabis arrests occur at the state level, I don’t think that it’s possible for the federal government to vacate or expunge those state criminal records. However I think that there could be a possibility for doing so at the federal level, which are mostly distribution charges and things like that. But it is a sign that people are actually starting to think about the issues of expungement and trying to undo some of the harms caused by prohibition.

Back when Colorado first was trying to legalize cannabis, the idea of retroactive amnesty or expungement was wildly unpopular, so people didn’t even consider putting it into the law and now as people have gotten more comfortable with legalization, the idea of not only undoing the harms of prohibition, but making sure that people who have been caught up in prohibition and it’s notoriously unfair enforcement still have the ability to work in the cannabis industry and expungement is a really big part of that.

So I think that the federal bill coming close to getting passed will be a big sign that states should start doing the same and we’re already seeing that in legal states such as California and Massachusetts where there is active efforts to expunge past criminal marijuana conviction. So it’s definitely good. Speaking of criminal justice bill, it’s very interesting that you said that it would affect cannabis because it actually might. Senator Cory Gardner is trying to insert language into that bill that would in effect allow states to determine their own cannabis policies and if he’s successful, then that will be a game changer.

TG Branfalt: I didn’t know that he was trying to do that, and Gardner, for people who might not know, was blocking judicial nominees basically asking for the Administration to promise that they wouldn’t enforce federal law. So he’s been sort of an ally. Just to sort of wrap up here, what advice would you have for individuals interested in entering the cannabis space?

Morgan Fox: Education, education, education. Look to the established national groups such as NCIA and learn what’s going on in your state. Do as much networking as possible and make sure that you know the difficulties associated with navigating this really complex regulatory environment. Another is to make sure that you have capital lined up because unfortunately there are still very high barriers of entry and it can be very difficult to get into the industry without access to them. That’s not to say that it’s impossible, but that’s one of the biggest challenges facing cannabis business, or prospective cannabis entrepreneurs right now. But really, yeah, it’s just making sure that you know the ins and outs and there are a number of services that are available to help out with those problems.

TG Branfalt: Well, Morgan, I really appreciate you coming on the show. This has been a great wide ranging conversation. I really appreciate the work that you guys do over there at the NCIA and I hope that we get to touch base again in 2019.

Morgan Fox: Absolutely. Thank you very much for having me.

TG Branfalt: You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com and the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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New England

Cannabis Legalization Accelerating In The Northeast

Following cannabis’ successful legalization in Massachusetts, Vermont, and Maine and decriminalization in New Hampshire, the last few states in New England are beginning to realize that legalization may be inevitable simply due to geography, according to recent developments in Rhode Island, Connecticut, New York, and New Jersey.

New York

Lawmakers in New York have been working towards cannabis legislation for the last year since Gov. Andrew Cuomo (D) commissioned a study by the state’s Department of Health. The report determined that the benefits of legalized cannabis outweighed the risks.

Since then, a working group in the legislature has been tasked with drafting a bill following dozens of “listening sessions” held across the state for public input. Gov. Cuomo is expected to present on the issue today in New York.

New Jersey

Neighboring New Jersey has also felt the pressure to legalize, due at least in part to New York’s movement on the issue. Legislators in NJ were originally tasked with passing major cannabis reforms by Gov. Phil Murphy (D) by the end of 2018.

Issues between versions of the bill drafted by lawmakers and Gov. Murphy — largely contention over the exact tax rate and regulatory structure — are the only things holding legalization back. While lawmakers are no longer optimistic about meeting the end-of-year deadline, there seems to be consensus on legalizing in 2019.

Connecticut

Connecticut is also on the road to possible legalization or decriminalization in 2019. Both proponents and opponents to cannabis reforms agree that incoming Gov.-elect Ned Lamont (D), who favors cannabis legalization, will force a consensus on the issue.

Said state Rep. Vincent Candelora (R), “I would think it would pass. Many of those opposed to legalization have left the Legislature.”

Candelora said he assigns the likelihood of legalization to Connecticut’s financial woes. “Revenue is driving this debate,” he said. “If Connecticut did not have this budget crisis, I’m not sure we’d be having this conversation.”

Rhode Island

Rhode Island is also being pushed toward legalization due to pressure from surrounding states. The state currently has a medical cannabis program that some lawmakers think could easily be converted to adult-use as well.

Rhode Island Gov. Gina Raimondo (D) has also said that costs associated with enforcement will increase if surrounding states legalize, making yet another reason to pass significant cannabis reforms.

Due to midterm election results, social justice issues, and simple peer pressure, by this time next year it’s entirely possible that all of New England will have legalized or at least completely decriminalized cannabis.

2019 may well be a banner year for cannabis with federal legalization also a distinct possibility.

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Cannabis Wins Big In 2018 Midterms

During yesterday’s midterm elections, voters delivered a resounding message across the country in support of reforming cannabis laws.

Michigan voters approved adult-use legalization while voters in Utah and Missouri resoundingly embraced medical cannabis reforms. The plant’s only defeat this election season was in North Dakota, where voters rejected a bill that would have established the least restricted cannabis market in the country.

There were also some indirect victories for cannabis last night, including the defeat of incumbent Texas Rep. Pete Sessions and several gubernatorial victories by pro-cannabis candidates.

Michigan

Michigan voters approved Proposition 1 in a comfortable 56-44 percent margin, making Michigan the tenth state to legalize adult-use cannabis. Under the initiative, adults 21 and older can possess up to 2.5 ounces of cannabis and cultivate up to 12 plants in their own home. Retail sales may not launch until sometime in 2020, but cannabis will become legal just 10 days after the election results are officially certified.

See our in-depth coverage to learn more about Michigan’s legalization victory.

Missouri

Missouri voters saw three opportunities to legalize medical cannabis on their ballot yesterday, but only one of them soared far ahead for an easy 66-34 percent victory.

Missouri’s Amendment 2 was approved ahead of another constitutional amendment and a statutory amendment. Amendment 2 was seen as the safest and most progressive option, containing one of the lowest tax rates of any medical cannabis proposal (just four percent) as well as the stipulation that funds generated by the program will go to health services for military veterans and to funding the new program’s regulatory agency(s).

Amendment 2 was endorsed by NORML and the Marijuana Policy Project.

Missouri is the 31st U.S. state to legalize medical cannabis.

Utah

Utah voters approved Proposition 2, which aims to establish a comprehensive medical cannabis program, in a narrow 53-47 percent victory.

While victory is sweet, medical cannabis was more or less guaranteed already for the state of Utah after advocates reached a compromise last month with the bill’s opponents, mainly lawmakers and the Mormon Church. Proposition 2’s passage, however, means cannabis patients are significantly less likely to suffer without access if lawmakers were to renege on their agreement (which is a concern that has bothered some advocates).

“The passage of Proposition 2 illustrates just how broad support has grown for medical marijuana in the U.S.,” Matthew Scheich, deputy director of the Marijuana Policy Project, said in a written statement. “Even in socially conservative states like Utah, most voters recognize marijuana has significant medical value, and they believe it should be available to patients who could benefit from it.

The details of Utah’s Proposition 2 may be subject to change, but as it stands the initiative would allow patients with a physician’s approval to purchase up to two ounces of cannabis or up to ten grams of CBD or THC oil every two weeks. Patients who live at least 100 miles from the closest dispensary would also be allowed to grow up to six cannabis plants at home.

Notably, cannabis patients in Utah will not be allowed to smoke their medicine, relying instead on edibles, vaping, and other consumption methods.

Utah is the 32nd U.S. state to legalize medical cannabis.

North Dakota

North Dakota experienced the only cannabis defeat of the midterms. It was the first true legalization attempt in a resoundingly conservative state.

Voters rejected the state’s legalization initiative with a 59-41 percent majority. The proposal — which would have removed all penalties for cannabis from state law and allow anyone 21 or older to cultivate and sell the plant with no limitations, tax-free — was considered by some to be the most progressive legalization attempt ever undertaken in the U.S.

Legalize ND, the advocacy group behind North Dakota’s legalization push, posted the following message to their social media outlets this morning:

“Last night was not the result we wanted. We were outgunned in money, and the majority of voters said no. But we cannot give up. Our advocacy does not end. In the new legislative session, WE MUST fight tooth and nail for decriminalization of marijuana possession, and gear up for 2020. Start contacting your newly elected legislators now.” — Written statement from Legalize ND

Other elections

While only four states voted on statewide cannabis initiatives, there were many other cannabis-adjacent elections that are worth noting.

Incumbent Texas Rep. Pete Sessions (R) lost to Democratic challenger Colin Allred, a former NFL player. During his time in the House, Sessions personally blocked dozens of cannabis proposals from consideration. In fact, Sessions has been such a staunch opponent to anything cannabis that Marijuana Policy Project founder Rob Kampia worked with other advocates to launch a PAC earlier this year dedicated to unseating him in the midterms.

Five Ohio cities Dayton, Fremont, Norwood, Oregon, and Windham approved cannabis decriminalization laws, raising the total number of cities in Ohio with decriminalization on the books to 11.

Voters in 16 Wisconsin counties signaled support for reforming cannabis laws in the form of advisory questions. These questions appeared on the ballot but will not reflect any changes in state or county law — they were merely meant to gauge interest in the issue.

Last but not least, pro-cannabis candidates won gubernatorial races in California, Colorado, Connecticut, Illinois, Maine, Michigan, Minnesota, Pennsylvania, New Mexico, and Wisconsin. NORML Deputy Director Paul Armentano weighed in with a written statement following the election:

“In four states — Connecticut, Michigan, Minnesota, Illinois — voters elected Governors who openly campaigned on a platform that included legalizing adult marijuana use. In two other states — California and Colorado — voters elected Governors who have a long history of spearheading legalization reform efforts. And in Maine and in New Mexico, two of the nation’s most rabid marijuana prohibitionists, Paul LePage and Susana Martinez, have been replaced by Governors who are open to enacting common-sense cannabis reforms.”

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Cash Money

Pennsylvania Gov.’s Office Requests Congressional Cannabis Banking Protections

On Friday, the administration of Pennsylvania Gov. Tom Wolf (D) wrote a letter to top leaders in Congress calling for protections for banks that deal with the legal cannabis industry, the Philadelphia Enquirer reports.

Millions of dollars in cash flow across Pennsylvania — and other legal states — on a monthly basis, all nearly impossible to complete insure and extremely vulnerable to theft and other risks.

The letter, sent by Pennsylvania Secretary of Banking and Securities Robin L. Wiessmann, was signed by state banking officials from Alaska, Connecticut, Hawaii, Louisiana, Michigan, Montana, Nevada, New York, Oklahoma, and Washington state.

“We urge Congress to consider legislation that creates a safe harbor for financial institutions to serve a state-compliant business, or entrusts sovereign states with the full oversight and jurisdiction of marijuana-related activity. … The well-documented conflict between federal and state law creates barriers for banks desiring to serve businesses involved in state-licensed marijuana activities. This has resulted in regulatory and legal risk … and created a ‘cash and carry’ industry. … This raises concerns with respect to public safety, increases difficulty tracking the flow of funds, and contributes to a loss of economic activity, workforce development and community development opportunities.” — Letter from Robin L. Wiessmann, PA Secretary of Banking and Securities

Previously, the Obama-era Cole Memo had provided some protections for financial institutions dealing with the cannabis industry; however, Attorney General Jeff Sessions rescinded the memo earlier this year.

“The cash-only business creates horrific safety and operation concerns for both marijuana-related businesses and their employees, vendors, landlords and taxing bodies.” — Steve Schain, Philadelphia cannabis banking attorney, via the Philadelphia Enquirer

Nearly 70 percent of all cannabis businesses in the U.S. that have direct contact with plants do not have a bank account. Even 50 percent of cannabis businesses that don’t deal directly with the federally illegal cannabis plant are also unbanked. Insurers generally only cover up to $20,000 in “cash loss,” an amount that is easily exceeded by even small cannabis businesses; many businesses will have $200,000 to $500,000 in cash on hand.

The Wolf Administration now awaits a reply from the addressees of the letter: U.S. Reps. Paul Ryan (R-WI) and Nancy Pelosi (D-CA) and U.S. Sens. Mitch McConnell (R-KY) and Chuck Schumer (D-NY).

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We Need to Stop Calling K2 ‘Synthetic Marijuana’ as Body Count Rises

Following last week’s mass-casualty event in New Haven, Connecticut, it’s clear that the cannabis community needs to do its part to change the language surrounding K2, also known as Spice. Many journalists continue to refer to Spice as “synthetic marijuana” but, in reality, it’s made of only individual synthetic cannabinoids and is often combined with the opioid fentanyl or chemicals found in rat poison.

Much like how cannabis activists have spent the last decade doubling down on changing the public’s lexicon to phase out the prejudiced term “marijuana” for “cannabis,” we now need to encourage a similar change in how we talk about synthetic cannabinoids like K2.

K2, Spice, Black Mamba, Krypton, Kronic and many other brand names have become common names for synthetic cannabinoids. The chemicals are often sprayed onto smokable blends of herbs and other non-psychoactive plant matter. On the street, they’re also often sprayed with opioids like fentanyl or anti-coagulants found in rat poison, among other unpredictable chemicals. Because they look like the well-known and relatively safe cannabis pre-rolls, people often don’t consider what they may be consuming.

Synthetic cannabinoids are a byproduct of cannabis prohibition. Originally, these chemicals were produced to research the effects of THC because federal law made it too difficult to acquire actual cannabis and cannabinoids. Synthetic cannabinoids tagged with radioactive isotopes were responsible for the first discovery of cannabinoid receptors in the 1990s. They’re used recreationally for the same reason — since the compounds are not listed explicitly in the Controlled Substances Act, they’re much easier to legally acquire and distribute. The problem is that they’re often far more powerful and concentrated than cannabis and can affect the human body in unpredictable ways.

It’s their synthetic, lab-produced and refined nature that make synthetic cannabinoids like AKB-48 (named after a Japanese girl band) or XLR-11 (named after the first American liquid rocket fuel) dangerous. We need to stop referencing marijuana and cannabis when we talk about these chemicals as, in reality, they have little to do with whole cannabis plant compounds and much more to do with other lab-produced synthetic compounds like opioids.

Vocabulary changes like this will do much to keep cannabis users and advocates safe from the negativity following the trail of bodies created by synthetic cannabinoids.

 

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Study: Cannabis Decriminalization Laws Work Without Increasing Youth Access

A recent study by Washington University found a significant drop in adult and youth cannabis arrests and no increase in cannabis use among youths in five states that adopted cannabis decriminalization laws between 2008 and 2014.

A team of researchers from around the country compared federal arrests data and state youth risk surveys of Massachusetts, Connecticut, Rhode Island, Vermont and Maryland with other states that did not adopt major cannabis policy changes during the sample period. The decrease in youth arrests was significant with a 75% decrease accompanied by a similar decrease in adult arrest rates.

“Our results provide additional evidence that decriminalization can be accomplished without an increase in youth drug use. These findings are consistent with the interpretation that decriminalization policies likely succeed with respect to their intended effects and that their short-term unintended consequences are minimal.” — WU researchers, in their report

The researchers stressed the need for more investigation into the effect decriminalization has on arrests rates in the long term and suggest their research should be replicated. They also point out decriminalization may not decrease the rate of cannabis enforcement through civil penalties.

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A close-up shot of a cannabis plant grown under Washington's I-502 market regulations.

Pennsylvania Governor Signs MMJ Amendment Allowing Research

Gov. Tom Wolfe of Pennsylvania, a Democrat, on Friday signed a bill amending the Pennsylvania medical cannabis law so that the state can proceed with its MMJ research program, reports The Philadelphia Inquirer. The bill was written to avoid a pending lawsuit that alleges the state improperly delegated authority to medical schools regarding the selection of cannabis growers.

The original law allowed medical schools to choose their own cannabis growers for research supplies. The previous language of the law would have allowed medical schools to circumvent the state’s official grower selection process, to which all cannabis growers and dispensaries have had to conform to date.

Opponents had issues remaining, even after the amendment. The new wording of the law still does not specify exactly what is meant by “research” or require disclosure regarding payments made from medical cannabis grow partners to medical schools. Opponents of the law say the situation favors corruption.

The Connecticut Department of Health has said they will have the last word on which partners are qualified to partner with medical schools.

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Blumenauer Urges Small Business Administration to Rescind Anti-Cannabis Loan Guidance

Last month, the federal Small Business Administration released a new policy indicating that direct cannabis businesses, indirect cannabis business, and hemp businesses would be locked out of the federal agency’s lending services, according to Green Market Reports Debra Borchardt. Last week, Oregon Rep. Earl Blumenauer wrote to SBA Administrator Linda McMahon urging her to repeal the guidance, saying the rule “would be impossible to implement and wreak havoc across multiple sectors of the economy.”

“For example, would just one order from a cannabis business for soil preclude a locally-owned garden center from receiving federal government loan support in the future?” – Blumenauer in a letter to McMahon

Blumenauer says he has long-supported the SBA loan program but the guidance effectively prevents “businesses that derived any of their revenue from sales to ‘direct marijuana businesses’ and hemp-related businesses” from receiving SBA loans.

In Oregon, Blumenauer contends, the cannabis industry is worth $800 million and the companies and employees that contribute to that economy “pay taxes that support schools and local law enforcement, and contribute to their state and local economies.”

The guidance also prevents individuals that have received SBA-backed loans from leasing space “to any business engaged in any activity illegal under federal, state or local law (such as a marijuana dispensary).”

Of note: McMahon’s son, Shane McMahon, invested $500,000 for a stake in EnviroGrow, which builds cannabis-growing modules. That relationship led to a 2017 lawsuit, in which McMahon claims the company’s manufacturing plant was “virtually nonexistent.” Linda has never publicly commented on her son’s investment and did not address the cannabis issue while running for Senate in Connecticut.

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Cannabis fan leaves spread out underneath an indoor grow operation's LED grow lights.

Report: U.S. Legal Cannabis Sales Could Top $75B by 2030

According to research firm Cowen & Co., legal cannabis sales in the U.S. are expected to reach $75 billion by 2030, which would put it on track to surpass the current sales for non-alcoholic carbonated drinks, Bloomberg reports. The firm previously predicted that the cannabis market would reach $50 billion by 2016 – if legalized federally – but analyst Vivien Azer said that “new forecasts suggest that the market is already that size.”

She added that while legal cannabis is not a direct competitor to the soda industry, it is likely going to impact the bottom line of the alcohol industry.

“We have consistently argued that cannabis and alcohol are substitute social lubricants.” – Azer to Bloomberg

A 2017 study from the University of Connecticut, Georgia State University, and Universidad del Pacifico in Lima, found that states with medical cannabis legalization had a 13.8 percent decline on beer sales and a 16.2 percent decline on wine sales. That study, using retail scanner data, did not account for alcohol purchased at bars or otherwise outside of the retail industry.

Soft drink consumption is already at its lowest levels in 31 years, according to trade publication Beverage-Digest figures outlined by Bloomberg. Data from Euromonitor International shows that the North American soft drink market fell from 78.3 billion in 2016 to $76.4 billion last year.

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The U.S. flag flying in front of domed top of the Capitol Building in Washington D.C.

19 Attorney Generals Send Letter to Congress Asking for Cannabis Banking Protection Legislation

Attorney generals from 17 states, Washington, D.C., and Guam have sent a letter to members of Congress urging them to “advance legislation that would allow states that have legalized medical or recreational use of marijuana to bring that commerce into the banking system” following Attorney General Jeff Sessions’ move to rescind the Cole Memo protections.

“Despite the contradictions between federal and state law, the marijuana industry continues to grow rapidly. Industry analysts report that sales grew by 30 [percent] to $6.7 billion in 2016 and expect those totals to exceed $20 billion by 2021. Yet those revenues often exist outside of the regular baking space. Businesses are forced to operate on a cash basis. The grey market makes it most difficult to track revenues for taxation purposes, contributed to a public safety threat as cash intensive businesses are often targets for criminal activity, and prevents proper tracking of large swaths of finances across the nation.” – Attorney Generals’ banking letter to Congress

Data from the federal Financial Crimes Enforcement Network (FinCEN) show that, as of September 2017, more than 300 banks and nearly 100 credit unions were offering services to the federally-prohibited cannabis sector. Earlier this month, Reuters reported that Sessions did not inform the agency about the policy change; however, FinCEN spokesman Stephen Hudack has indicated that the agency’s 2014 guidance – which allows banks to deal with state-approved canna-businessesremains in place.

Signatories on the letter include attorney generals from Alaska, Hawaii, North Dakota, California, Colorado, Connecticut, Illinois, Iowa, Maine, Maryland, Massachusetts, New Mexico, New York, Oregon, Pennsylvania, Vermont, Washington, Guam, and Washington D.C.

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New York GOP Gubernatorial Candidate Supports Adult-Use Cannabis Program

During a press conference in Buffalo, New York, Republican gubernatorial hopeful Joel Giambra pitched cannabis legalization tax revenues as a way to address the state’s infrastructure problems, WGRZ2 reports. However, the former Erie County Executive stopped short of offering a plan or an exact tax dollar amount a taxed-and-regulated cannabis industry could offer state coffers.

“I think that legalizing marijuana and using the revenues to create an infrastructure fund to deal with these problems is a much more appropriate way to solve our problems than raising new taxes. … Adult use of marijuana is going to be happening all around us. For New York state not to get serious about ending criminal activity and the black market underground economy makes no sense.” – Giambra, on potential legalization

Republican political strategist Carl Calabrese called Giambra’s plan “a bit surprising” and said that voters might not rank legalization among their top 5 issues.

“I can never remember seeing legalization of drugs or marijuana in particular in the top five. And that’s what really drives voters. They may have plus or minus on certain issues, but if it’s not their core issue, their primary issue that drives them to vote for Candidate A or Candidate B, it doesn’t matter if you make that your key issue. It’s gotta be their key issue, the voter’s key issue.” – Calabrese to WGRZ2

Other potential GOP candidates for governor of the Democratic stronghold include Assembly Minority Leader Brian Kolb and state Sen. John DeFrancisco; however, Giambra’s proposal could appeal to pro-cannabis Democrats who are fed up with Gov. Andrew Cuomo’s prohibitionist stance on the issue.

Could New York’s borders push the issue? Last week, members of the state Assembly held a hearing to debate the merits of cannabis legalization. Once Vermont and Canada’s legalization take effect, the state will be surrounded by legalization, save for Connecticut to the east (whose General Assembly is considering reforms), Pennsylvania to the south (a likely long-term holdout), and New Jersey (whose incoming Governor Phil Murphy supports cannabis legalization and a bill has already been introduced in the state to create a taxed and regulated market).

Cuomo does support broad decriminalization, but still believes in the gateway theory.

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A camera looks out into a store's aisle from behind a shelf full of 40 oz. bottles of malt liquor.

Study: Alcohol Sales Decreased 15% in Counties with Legal Cannabis

A new study suggests that monthly alcohol sales in U.S. counties where cannabis is legal for recreational use cumulatively dropped 15 percent. The researchers, from the University of Connecticut, Georgia State University, and Universidad del Pacifico in Lima, measured alcohol sales in states with legal cannabis access and compared them to alcohol sales in states without such programs.

“When disaggregating by beer and wine we find that legalization of medical marijuana had a negative effect on corresponding sales by as much as 13.8 and 16.2 percent, respectively.” – Helping Settle the Marijuana and Alcohol Debate: Evidence from Scanner Data.

The study considers a number of factors; controlling for “county economic conditions such as unemployment rate and median household income…total population, percentage of male and Hispanic population, and the share of population by age groups.”

While using scanner data doesn’t paint the whole picture – it doesn’t account for alcohol purchased at bars or otherwise outside of the retail industry and does “not strictly reflect the drinking behavior of the population” – the authors conclude that the study “does not suffer from underreporting issues of self-reported drinking behavior, commonly presented with surveys” and retail scanner data “offers a wider coverage as it contains sales for all products across U.S. counties.”

The authors note that the trend does not seem to be short-lived either, as reductions continued two years after the passage of adult-use laws.

At least one major alcohol distributor has taken notice. In October, Constellation Brands, which distributes Corona beer and Svedka vodka in the U.S., purchased a 9.9 percent stake in Canadian medical cannabis producer Canopy Growth Corp. for $191 million.

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